Asking for Billions: First Freddie, Now Fannie

Jan. 26, 2009 — -- WASHINGTON (AP) -- Mortgage finance company Fannie Mae says it's likely to need up to $16 billion from the government as conditions in the U.S. housing market continue to deteriorate.

Fannie Mae's need for $11 billion to $16 billion in taxpayer aid comes after sibling company Freddie Mac disclosed last week that it's likely to need as much as $35 billion in federal support on top of the $13.8 billion it received last year.

Fannie, which has yet to receive any government aid, is still preparing its fourth-quarter financial statements and says the actual amount needed "may differ materially from this estimate."

Fannie and Freddie were seized by federal regulators last fall. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company.