Fannie Mae reported a $5.1 billion loss in the third quarter on Tuesday, up from a $2.9 billion loss in the second quarter of 2011, and a $3.5 billion loss in the third quarter of 2010.

The mortgage giant cited $4.9 billion in credit-related expenses, the majority dating back to pre-2009 business and $4.5 billion in losses due to declining interest rates. Fannie had $5.5 billion in net revenue.

The loss translated to $1.32 per share, up from a loss of 61 cents per share in 2010.

Our results in the third quarter were significantly affected by continued weakness in the housing market and the economy overall. Despite these challenges, we are making solid progress. We are growing a strong new book of business that now accounts for nearly half of our overall single-family guaranty book of business, said Michael Williams, president and CEO of Fannie Mae, in a statement.

The company must pay the U.S. Treasury $2.5 billion in dividents for the quarter, making its net worth deficit $7.8 billion. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and the smaller Freddie Mac, will request $7.8 billion from the Treasury to eliminate the deficit. Fannie has received a total of $112.6 billion from the Treasury.

Last week, Freddie Mac reported a $4.4 billion loss and requested $6 billion from the Treasury. The government has committed to support both firms, which own or guarantee about half of all U.S. mortgages, through 2012.

Fannie and Freddie have come under recent fire for $12.79 million in bonuses for 10 executives, with Congress seeking testimony from the FHFA and other officials. 

Shares of Fannie Mae were trading around 23 cents at the close of Tuesday's market.