Fannie Mae Posts More Than $2 Billion First Quarter Loss

Washington, D.C.– Fannie Mae–the largest U.S. home purchaser–announced a $2.19 billion first-quarter loss Tuesday, The Wall Street Journal reports.A year ago, its profit was $961 million. The company plans to reduce its dividend and obtain $6 billion in capital.In 2008, Fannie Mae forecasts home prices will drop 7 to 9 percent nationally and the overall market will be in a state of “severe weakness.”