WASHINGTON — The sagging housing market resulted in a $2.3 billion loss for mortgage buyer Fannie Mae in the second quarter, the company reported today.
The loss, an increase from the $2.2 billion loss in the first quarter and a decline from the $1.9 billion profit in the third quarter of 2007, prompted the company to reduce its quarterly dividend from 35 cents to 5 cents.
Fannie reported $5.3 billion in credit-related expenses and $883 million in net investment losses.
One of the few bright spots was $4 billion in revenue, an increase in 2.3% from the first quarter and an increase in 46% from the same period last year.
Fannie and Freddie Mac, which are government-sponsored enterprises, own or guarantee $5.2 trillion worth of home mortgages, about half of all outstanding loans. The housing bill signed by President Bush last week contains provisions allowing the Treasury Department to buy capital in the companies if they are in need of additional capital and can't get it from other sources. Earlier this week, Freddie reported a $821 million loss during the second quarter.
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