Fannie Mae Loses $2.3B In Quarter As Defaults Rise

WASHINGTON — Mortgage finance company Fannie Mae says it swung to a second-quarter loss that was more than triple what Wall Street expected as the housing market continued to slump.

The Washington-based company, the largest U.S. buyer and backer of home loans, says it lost $2.3 billion, or $2.54 a share, for the quarter that ended June 30.

The loss compares with profit of $1.95 billion, or $1.86 a share, in the period last year.

Analysts surveyed by Thomson Financial had expected a loss of just 68 cents a share.