Freddie Mac, the nation’s second-largest buyer and guarantor of mortgages, shocked Wall Street by announcing a $2 billion loss for the quarter. As upsetting as that was, Freddie Macwent on to say losses will deepen through 2009, and the company is considering cutting its dividend in half. Fannie Mae is the largest U.S. buyer and guarantor of home loans. Fannie Mae’s profits were down 36 percent in August, with investors asking if losses were greater than the company is reporting.

Neither report is seen as good for the housing market or the overall economy.