Washington  - Freddie Mac Wednesday reported 821 million dollars in second-quarter losses amid record foreclosures and a US housing slump that has threatened the home mortgage giant with collapse.

The results come after a 151-million-dollar net loss in the first quarter of 2008 as housing prices continue to fall across the United States. The lender reported profits of 729 million dollars in the second quarter of 2007.

Freddie Mac, the second-largest US mortgage financer, also slashed its share dividend for the upcoming third quarter from 25 cents to 5 cents per share.

The McLean, Virginia-based company's stock price has plummeted nearly 80 per cent in the past few months amid concerns it does not have enough capital to remain solvent.

Freddie Mac, together with its government-chartered partner Fannie Mae, owns or guarantees about half of the 12 trillion dollars in home mortgages across the country.

With both lenders in crisis, Congress last month approved a government contingency plan that would allow the Treasury to guarantee Fannie and Freddie's mortgages and even buy up stock in the event of their imminent collapse.

Freddie Mac chief executive Richard Syron said the company was still capable of providing much-needed credit access to home buyers and defended Freddie's capital position as its stock fell another 17 per cent in morning trading on Wall Street.

"While we expect continued housing and economic weakness will affect our overall performance this year, we continue to maintain a surplus over all regulatory capital requirements," Syron said. (dpa)