Two weeks after an economic stimulus package expanded the role of GSEs by temporarily raising their conforming loan limits, Freddie Mac and Fannie Mae are once again confronted with significant financial concerns.

Freddie Mac reported a fourth quarter net loss of $2.5 billion on Thursday, its second consecutive major quarterly drop. In November, the GSE announced a $4.6 billion third-quarter loss, leading both Fitch Ratings and Credit Suisse to downgrade its preferred stock.

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