Correction: Corrects the loss per share figure for the year-ago quarter.Government-sponsored home mortgage finance company Fannie Mae (FNM: News ), Friday reported a loss for the fourth quarter that narrowed from last year on lower credit related expenses, impairments and fair value losses. Further, the company said it has applied for additional $15.3 billion aid from the federal government and is dependent on the continued support of Treasury for operation of its business. The Washington-based company reported a net loss attributable to common shareholders of $16.33 billion or $2.87 per share for the fourth quarter, compared to a loss of $25.25 billion $4.47 per share in the prior year quarter. Net loss for the fourth quarter included $1.15 billion of dividends on senior preferred stock held by the U.S. Department of Treasury.The company said that the fourth quarter net loss was driven primarily by credit expenses, which declined sequentially but remained at an elevated level, and recognition of a $5.0 billion loss on the company's low income housing tax credit investments.The fourth quarter loss left Fannie Mae with a net worth deficit of $15.3 billion as of December 31, 2009, considering unrealized gains on available-for-sale securities during the fourth quarter.
Fannie Mae said the director of Federal Housing Finance Agency or FHFA submitted a request to Treasury on February 25, for an additional $15.3 billion on the company's behalf to eliminate its net worth deficit. FHFA has requested that Treasury provide the funds on or prior to March 31, 2010.On December 31, 2009, Fannie Mae had received $15.0 billion from Treasury under the senior preferred stock purchase agreement. As a result of this draw, the aggregate liquidation preference of the senior preferred stock increased to $60.9 billion as of December 31, 2009 from $45.9 billion. It is expected to increase to $76.2 billion upon the receipt of funds from Treasury to eliminate the company's fourth-quarter 2009 net worth deficit. On December 24, 2009, the Treasury amended the senior preferred stock purchase agreement. Under the terms of amended agreement, the cap on Treasury's funding commitment to Fannie Mae will increase as necessary to accommodate any net worth deficits for calendar quarters in 2010 through 2012. For any net worth deficits after December 31, 2012, Treasury's remaining funding commitment will be $124.8 billion, less any positive net worth as of December 31, 2012.
Fannie Mae said the director of Federal Housing Finance Agency or FHFA submitted a request to Treasury on February 25, for an additional $15.3 billion on the company's behalf to eliminate its net worth deficit. FHFA has requested that Treasury provide the funds on or prior to March 31, 2010.On December 31, 2009, Fannie Mae had received $15.0 billion from Treasury under the senior preferred stock purchase agreement. As a result of this draw, the aggregate liquidation preference of the senior preferred stock increased to $60.9 billion as of December 31, 2009 from $45.9 billion. It is expected to increase to $76.2 billion upon the receipt of funds from Treasury to eliminate the company's fourth-quarter 2009 net worth deficit. On December 24, 2009, the Treasury amended the senior preferred stock purchase agreement. Under the terms of amended agreement, the cap on Treasury's funding commitment to Fannie Mae will increase as necessary to accommodate any net worth deficits for calendar quarters in 2010 through 2012. For any net worth deficits after December 31, 2012, Treasury's remaining funding commitment will be $124.8 billion, less any positive net worth as of December 31, 2012.
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