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Washington bailed out the two firms in 2008 at
the height of the financial crisis and has since seized all
their quarterly profits while demanding the firms reduce their
capital buffers.
"Future profitability is far from assured," Federal Housing
Finance Agency Office of Inspector General said in a report,
pointing out that the firms could again chalk up losses on their
derivatives portfolios, similar to those they reported in the
fourth quarter.
"(This) increases the likelihood of additional Treasury
investment," the report stated.
Fannie Mae's chief executive issued the same warning in February
when the firm announced it would make its smallest payment to
taxpayers in more than four years.
The possibility of another taxpayer draw raises pressure on the
U.S. Congress to overhaul housing finance laws, although a real
push on legislation is not expected anytime soon.
Taxpayers pumped $116.1 billion into Fannie Mae following the
U.S. housing market collapse, while Freddie Mac was propped up
with $71.3 billion. Both firms have already paid in dividends
more than they received in aid.
The government-run companies do not lend money directly, but
underpin the U.S. housing market by guaranteeing most new
mortgages in the country.
Fannie Mae and Freddie Mac purchase loans from lenders and
package them into securities that are then sold to investors.
(Reporting by Jason Lange; Editing by Diane Craft)
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