Fannie and Freddie Narrow Earnings Losses, Request More Aid

Home-mortgage buyers Fannie Mae and Freddie Mac both trimmed their losses in the fourth quarter of 2010. But they aren't out of the woods yet: Both also have increased their requests for new federal aid from the previous quarter.

On Thursday, Fannie Mae posted a $2.1 billion loss for the quarter, or 37 cents per share, down from a loss of $16.3 billion, or $2.87 per share, from the year-ago period. It is now asking for $2.6 billion in new federal aid, a slight increase from the $2.5 billion it requested in the third quarter.

Meanwhile, Freddie Mac reported a quarterly loss of $1.7 billion, or 53 cents per share, down from a loss of $7.8 billion, or $2.39 per share, a year ago. It is seeking $500 million in new federal aid, compared with the $100 million it asked for in the third quarter.