US mortgage bank Fannie Mae reported on Friday a second quarter loss of 2.3 billion dollars, higher than previously predicted.

The loss amounted to 2.54 dollars a share, and marked the fourth straight quarter of losses for the US bank. The company recorded a 1.86 dollar gain in the same period a year ago.

Fannie Mae reduced its dividend for the quarter to 5 cents a share from a previously planned 35 cents, for an expected savings of 1.9 billion dollars.

According to Fannie Mae chief executive Daniel H Mudd, the company's second quarter results were due to continued "challenging conditions in the housing and mortage markets."