Freddie Mac continues to lose profit in the second quarter of the year. With a net loss of $4.7 billion, Freddie Mac asks the U.S. Treasury for a $1.8 billion infusion.

The mortgage-finance company, which is on its 11^th quarter loss, has now increased the government’s rescue tab to $63.1 billion. Though the credit losses are at $5 billion, it is slightly lower than the previous months – thanks to slower delinquent mortgages and improving home prices. Low interest rates, though, plus backlog accounting of delinquent loans led to $3.8 billion loss and $900 million charge.

Compared to last year’s statistics, Freddie Mac saw a 36% increase in non-performing loans. With a total of $118 billion, the number is up by 2% for the quarter. Its affiliate company, Frannie Mac, may have seen a 22% appreciation from last year’s non-performing loans with $217 billion, the figure is still 3% down for the second quarter.

The larger Frannie Mae may be faring better than its cousin but it also was affected by interminable loans granted even during the crash of the housing industry. As more and more loans turn delinquent, both Frannie Mae and Freddie Mac found it necessary to set aside money for future losses.

Though the worst seems to be over, because the number of delinquent loans is falling and home prices are stabilizing, analysts are still wary to point as to when losses are going to stop.

With Freddie Mac reserving 32 cents for every one dollar in non-performing assets, and Frannie Mae 27 cents, analysts like FBR Capital Markets’ Paul Miller says they are “massively under-reserved”. Not to mention the fact that more declines in home prices are looming in the horizon – this only means more delinquent borrowers are just around the corner.

The two companies own 191,000 homes – an increase from last year’s 97,000. This presents another problem for the company, as these homes need to be sold without further pressure on home values.

Freddie Mac and Frannie Mae have been getting assistance from the U.S. government since they have been acquired through conservatorship. This means that the government will extend unlimited financial assistance in the next three years. This does not come without a price.

Every injection by the government mean 10% dividend will be shared. This means the companies will be indebted for at least 18 years.

Though the Obama administration says a detailed plan to salvage both mortgage-finance companies will be detailed early next year, analysts agree that a resolution will take years to take effect.