Mortgage Giant Fannie Mae Wants Another $7.8 Billion

Mortgage giant Fannie Mae wants another $7.8 billion to cover its losses in the July-September quarter, the Associated Press reported. Low mortgage rates reduced profits and declining home prices caused more defaults on loans it had guaranteed. Fannie has received more than $112 billion so far from the Treasury Department. That's the most expensive bailout of a single company. Last week, Freddie Mac requested $6 billion in extra aid. The Obama administration unveiled a plan earlier this year to slowly dissolve the two mortgage giants. The goal is to shrink the government's role in the mortgage system. It would also probably make home loans more expensive.