Florida

Fannie Posts Large Q2 Loss; Says Rough Road Ahead 

Mortgage finance giant Fannie Mae [stock FNM][/stock] posted a larger-than-expected second quarter loss on Friday morning, as credit costs tied to an increasing number of defaulted mortgages helped eat away at the GSE’s bottom line, and the company reserved aggressively for expected default activity 18 to 24 months out from now. As a result, the company said it would cut its common stock dividend from $.35 per share to $.05 per share, a move that it said would preserve $1.9 billion in capital.