NEW YORK (Reuters) - Fannie Mae, the largest U.S. home funding source, on Friday posted its fourth straight quarterly loss as home loan defaults increased and said it would slash its dividend more than 85 percent and take other steps to shore up its capital position. Just three weeks after U.S. authorities took sweeping measures to support Fannie Mae and smaller rival Freddie Mac, the Washington-based company reported a greater-than-expected loss of $2.3 billion, excluding preferred dividend payments, or $2.54 per share in the second quarter. That compared with a profit of $1.95 billion, before preferred dividend payments, or $1.86 a share, a year earlier. Analysts polled by Reuters Estimates expected Fannie Mae to report a loss of 97 cents per share. The loss, exacerbated by $5.3 billion in credit expenses stemming from the worst housing market since the Great Depression, follows a loss of $2.51 billion, or $2.57 per share, in the first quarter of 2008. Fannie Mae and Freddie Mac own or guarantee more than $5 trillion in mortgages, or nearly half of all U.S. home loans.
Sphere: Related Content
-
Categories
-
Archives