Fannie Mae Reports Big Loss in First Quarter

Housing price declines plague mortgage loan corporation.


Life just isn't getting any easier for mortgage loan corporation Fannie Mae. The housing bubble exploded in its face, and now the government-sponsored enterprise is reporting losses of $2.2 billion in the first quarter. To bolster its balance sheet, the company said it is planning to cut its dividend and raise $6 billion in new capital. As for the housing market, the company said it expects "severe weakness" throughout the rest of this year.