Fannie Mae Reports Big Loss in First Quarter

Housing price declines plague mortgage loan corporation.

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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.