It does not. If Fannie and Freddie generate a loss then they get DTA (deferred tax assets) which can be used in the future to offset taxes on gains. However since they are already generating gains it does not apply.
"Meanwhile, Fannie and Freddie could also be looking at writedowns of over $15BN in aggregate. According to KBW, that level of earnings hit may be sufficient to trigger the need for another capital infusion from the Treasury Department.
The implications might also reach mortgage giants Fannie Mae and Freddie Mac, which could see write downs of $10 billion and $5.4 billion respectively, according to a Nov. 27 KBW research note. Those hits would be large enough to potentially require both of them to seek a new infusion of money from the Treasury Department, the note said. Peter Garuccio, a spokesman for the Federal Housing Finance Agency, which oversees the government-backed lenders, declined to comment.
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