Fannie Mae stock, which was delisted from the NYSE in June and now trades as penny stock in the over-the-counter market, reported a net loss of $1.2 billion in the second quarter of 2010. This compares to a net loss of $11.5 billion in the first quarter of the year, according to Fannie Mae’s second-quarter report released Thursday, August 5.

“During the quarter, loans from Fannie Mae’s 2009-2010 book of business continued to perform solidly while credit-related expenses on the overall book of business decreased by more than $7 billion,” the federal housing lender said in news release.

Fannie Mae reported that single-family loans in the quarter saw their lowest early serious delinquency rates over the last decade.

Including $1.9 billion of dividends paid on its senior preferred stock held by Treasury, the company’s net loss attributable to common stockholders was $3.1 billion, or negative $0.55 per diluted share, compared with a loss of $13.1 billion, or negative $2.29, per diluted share, in the first quarter of 2010.

The net worth deficit of $1.4 billion as of June 30, 2010 takes into account the company’s net loss, dividends paid on senior preferred stock held by Treasury, and a reduction in unrealized losses on available-for-sale securities during the second quarter.

The Federal National Mortgage Association, or Fannie Mae, has been under conservatorship, with the Federal Housing Finance Agency (FHFA) acting as conservator, since September 6, 2008.