One of the nation’s largest mortgage lenders, Freddie Mac, is posting a massive loss for Quarter 2. Indeed, according to The Street, the loss of $821 million is worse than expected — and analysts were expecting large losses to begin with. The Street reports on the spin Freddie Chairman and CEO Richard Syron put on the news:

"We are confident the actions we are taking are strengthening Freddie
Mac’s financial and competitive position as well as its ability to
serve the American homebuyer and will generate value well into the
future," Syron said.

Yeah. Freddie Mac is strengthening thanks to some bailout help from the federal government. However, investors may be dismayed to learn that dividend is dropping from 25 cents a share to 5 cents a share.

As the mortgage market continues to weaken (along with the economy), even after the Fed decision yesterday, more eyes will be on Freddie Mac and Fannie Mae.