Freddie Mac Takes a Dent from Mortgage Credit Woes

Just announced, Freddie Mac's net loss for the 3rd quarter more than doubled to $2.03 billion, this based on higher credit-loss provisions and the marking to market of securities. Why? The housing-market weakness and the deterioration of mortgage credit is to blame. The Freddie Mac said the fair market value of its net assets dropped by $8.1 billion in the quarter.

And now, Freddie Mac hired an adviser to study its capital-raising options. They say they are considering cutting its dividend by half. Accordingly, shares fell 6% in premarket trading.