Fannie Mae and Freddie Mac, already reeling in red ink, are warning they could face additional losses from the weakening condition of mortgage-insurance companies.Fannie and Freddie together have required capital injections from the Treasury of $112 billion since the government took them over through conservatorship last year. Their need for government support would have been greater without collecting on claims from mortgage-insurance companies.
But Fannie and Freddie have warned that their claims against the insurers may not be paid in full Fannie set aside $1 billion in loss reserves to cover the possibility that mortgage-insurance companies won't be able to pay full claims, the company said in a Securities and Exchange Commission filing.
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