Freddie Mac, Fannie Mae cut losses on Dodd comments

NEW YORK (Reuters) - Shares of Freddie Mac (FRE.N: Quote, Profile, Research) briefly turned positive on Friday and those of Fannie Mae (FNM.N: Quote, Profile, Research) sharply pared their losses after Sen. Christopher Dodd, chairman of the Senate Banking Committee, said the two government-sponsored mortgage giants were fundamentally sound.

Freddie Mac shares were last down 9.4 percent at $7.25 on the New York Stock Exchange, where the stock earlier plunged as low as $3.89.

Fannie Mae was down 24.8 percent at $9.97 on the NYSE, where the stock earlier slid as low as $6.87.

(Reporting by Ellis Mnyandu; Editing by Tom Hals)