Freddie Mac seeks $6 billion more in assistance

Freddie Mac, the government-controlled mortgage giant, is requesting $6 billion in additional aid to cover steep losses during the third quarter. It’s the largest quarterly request since April 2010.

Since 2008 when the government took control over Freddie Mac and Fannie Mae’s financial decisions, taxpayers have spent about $169 billion to rescue the government-sponsored enterprises, the Associated Press reports.

So why is Freddie requesting more bailout money? One reason is that more homeowners are paying less interest as they refinance their mortgages into lower rates, but while refinancing saves home owners money, it’s hurting Freddie’s pocketbook.

More homeowners are also continuing to default on their mortgages in large numbers, and troubled or bankrupt mortgage insurers are not paying Freddie as much money when home owners default, the Associated Press notes.

Freddie Mac and Fannie Mae own or guarantee about half of all U.S. mortgages. The government has estimated that it may cost another $51 billion to cover Fannie and Freddie’s losses through 2014, the Associated Press reports.