2009-12-08 05:03:29 - “Zen International”: The US mortgage giant lost yet another $18.9bn in the third quarter and wants more money.

“Zen International” analysts are said to have expressed no surprise as news emerged that Fannie Mae, the giant US mortgage finance company, would seek to drawdown an additional $15bn of a $200bn lifeline thrown to it by the Federal government after it reported further losses in the third quarter totaling $18.9bn.

The losses, as before, are attributable to the stubbornly persistent decline in the US real estate market. Foreclosures and delinquencies continue to mount as more Americans lose their jobs. A record 2.6 million defaults, scheduled foreclosure auctions or bank repossessions occurred in the first nine months of this year, 22.1 percent more than a year earlier, as unemployment rates climbed and temporary programs aimed at delaying foreclosure expired.

“Zen International” analysts

are thought to be skeptical of recent data showing a pick-up in pending home sales and cite a “last dash” by first-time buyers to secure access to the government’s $8000 tax credit for purchasing a home. They maintain that US consumers and potential homebuyers are in no position to begin taking on large debts especially in the economic environment that prevails in the United States.

“Zen International” believes that any continued mild buoyancy in the property market will come from further government incentives and cited the fact that the US Senate yesterday voted to extend the $8,000 first-time homebuyer tax credit until April 30, 2010. The Senate also agreed to expand the program to include people with higher incomes and some who already own homes.

“Zen International” has advised its US clients to avoid the US property market for investment purposes for the immediate future.