WASHINGTON — The continuing woes of the housing industry againtook their toll on mortgage buyer Freddie Mac as it today reportedthat during the second quarter revenues fell 28% and the enterpriselost $821 million.

The loss represents an increase from its $528 million lossduring the first quarter and prompted the firm to cut its dividendfrom 25 cents per share to “five cents a share or less.” During thesecond quarter of 2007, the Freddie Mac reported $729 million inincome.

Increased delinquency rates, more foreclosures and declininghome prices caused the write-down of $2.5 billion in credit-lossprovisions.

Although the firm had $37.1 billion in core capital, $8.4billion more than required by law, the firm has said it plans toraise $5.5 billion in new capital.

Freddie and Fannie Mae, which are government-sponsoredenterprises, own or guarantee $5.2 trillion worth of homemortgages, about half of all outstanding mortgage loans. Thehousing bill signed by President Bush last week contains provisionsallowing the Treasury Department to buy capital in the enterprisesif they are in need of additional capital and can't get it fromother sources.