WASHINGTON, DC-One week after a housing bill was signed into law that extended a safety net to Freddie Mac and Fannie Mae, the market was reminded that these agencies are still struggling with larger housing trends that no government bailout can remedy in the short term. Freddie Mac has turned in Q2 earnings that were much worse than Wall Street analysts had expected, with the agency registering an $821 million loss, or $1.63 per share. Analysts had expected a 41-cent per share loss. These numbers are a sharp contrast to the GSE’s performance this time last year, when it earned $729 million, or 96-cents per share.

Total revenue was $1.69 billion, a drop from Q2 2007′s $2.34 billion in total revenue. Almost all of the losses were due to the agency’s single-family guarantee business. However; multifamily, by contrast, performed well for the quarter.

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