Fannie Mae said late Tuesday that it will cut its dividend by 30% and raise $7 billion by selling convertible preferable stock in one or more sequences.

The quarterly stock dividend will become 35 cents a share, starting with the first quarter of the year 2008.

During last trading, Fannie shares fell 3.9% to $33.91.

The company also supplied information about its results in 2008.

More declines in home prices, conditions in the housing and credit markets, will affect negatively the financial situation of the company, and consequently, the operations' results in 2008, said Fannie.

Mae warned also about the presumptive material affection in 2008 upon future performance.

Fannie mae