Fannie Follows Freddie Down

Beleagured giant government-backed home lender Fannie Mae (FNM) reported a dismal second quarter earnings report -- far more dismal than expected.  Its -$2.54 per share marks a 334 percent negative surprise from the Zacks consensus estimate of -76 cents.

Obviously, issues of its solvency in remarks by the Fed Chairman as well as the Treasury Secretary have helped analysts downwardly revise their estimates over the past quarter.  But even though the June session Zacks consensus had come down 150 percent since this time last quarter, it still could not come close to the actual ugly truth.

This is the second-straight brutal earnings report for Fannie Mae.  Last quarter, the company posted a -414 percent surprise.  Earlier this week, Fannie's peer Freddie Mac (FRE) posted earnings of -$1.63 per share -- a negative surprise of 281 percent.

Read the full analyst report on FNM

Read the full analyst report on FRE