Total revenue was $1.69 billion, a drop from Q2 2007's $2.34billion in total revenue. Almost all of the losses were due to theagency's single-family guarantee business. However; multifamily, bycontrast, performed well for the quarter.
Part of its response will be a dividend cut of 20 cents in Q3,to five cents per share, saving it $500 million a year. Freddie Macexecutives told listeners on a conference call that the market'swoes are not over. They predicted continued drops in home housingvalue, as the housing crisis has reached only the mid-point.Ultimately, it was predicted on the call, home prices could fall byas much as 20% from their peak. Freddie Mac also reaffirmed itsdecision to raise at lease $5.5 billion of new capital and possiblemore. Last month it registered with the Securities and ExchangeCommission to raise as much as $10billion of new capital.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
