When Fannie Mae was forced into conservatorship by the US government, essentially making them a government entity, they were given a $100 billion credit line in exchange for an 80% equity stake in the company. Now, after an awful earnings report, it seems they’re going to have to tap that money a lot sooner than expected (via MSN Money):

Fannie Mae on Monday posted a $29 billion loss in the third quarter as it took a massive tax-related charge, and said it may have to tap the government’s $100 billion lifeline as early as next year.

The mortgage finance company, seized by federal regulators more than two months ago, posted a loss of $13 per share for the July-September quarter, mainly due to a $21.4 billion non-cash charge to reduce the value of tax assets. That compares to a loss of $1.4 billion, or $1.56 a share, in the year-ago period. Analysts surveyed by Thomson Reuters had expected a loss of $1.60 per share.

The number is just all-around ugly. On top of the $21.4 billion charge-off, the company also suffered from soaring credit expenses totaling $9.2 billion. These expenses are mainly due to falling home prices and surging defaults as mortgage credit conditions continue to deteriorate.

Delinquent loans rose to 1.7 percent of all single-family loans — double the level last fall.

Fannie Mae owned more than 67,500 foreclosed properties at the end of September, up 25 percent from the end of June.

Fannie Mae has bled $33.5 billion in red ink so far this year. The company’s future prospects are not looking good either, at least not for the tax payer.