extended a safety net to Freddie Mac and Fannie Mae,

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.

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 Mac executives told listeners on a conference call that the market's woes are not over. They predicted continued drops in home housing value, as the housing crisis has reached only the mid-point. Ultimately, it was predicted on the call, home prices could fall by as much as 20% from their peak. Freddie Mac also reaffirmed its decision to raise at lease $5.5 billion of new capital and possible more. Last month it registered with the Securities and Exchange Commission to raise as much as $10 billion of new capital.