Freddie Mac has reported a loss of $2 billion for the third quarter and said it is “seriously considering” a 50% cut in its fourth-quarter dividend. Freddie also said it is considering ways to raise additional capital. Losses at Fannie and Freddie constrain their ability to perform their role of funneling money into the mortgage market when other investors are leery of home loans, said Jim Vogel, an analyst at FTN Financial Capital Markets, Memphis, Tenn. Though Fannie and Freddie remain huge sources of funding for mortgages, their woes could prolong the shortage of capital that is forcing lenders to ration credit and hurting demand for housing. Freddie said it has hired Goldman Sachs and Lehman Brothers to help it “consider very near-term capital-raising alternatives.” Last week, Fannie Mae raised $500 million with a sale of preferred stock.

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