Fannie Mae Loss Widens to $29 Billion

U.S. mortgage finance firm Fannie Mae has reported a significant increase in third-quarter losses in the wake of the slowing housing sector. Losses hit $28.99 billion in the three months to 30 September from a loss of $1.4 billion a year earlier, largely due to a tax-related charge of $21.4 billion. Fannie Mae and Freddie Mac were bailed out by the US government in a record U.S. corporate rescue deal in September. Both firms buy mortgages from approved lenders then sell them to investors. Neither Freddie Mac nor Mannie Mae lend directly to borrowers.