WASHINGTON – Secondary mortgage market giant Fannie Mae priced $7 billion in new preferred shares yesterday, part of an effort to shore up its flagging finances due to the ongoing mortgage crisis. The capital measure follows a $6 billion offering last month by Freddie Mac, which also has reported troubled finances.
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Fannie Mae’s offering, its largest ever, was priced with an 8.25% dividend.
Fannie reported a $1.4 billion loss for the third quarter and could lose as much as $4 billion for the year, according to analysts.
Freddie Mac reported a $2 billion loss for the third quarter and predicted additional losses for the fourth quarter.
