Mortgage financier Freddie Mac swung to a second-quarter loss larger than Wall Street’s expectations.

The McLean, Va.-based company says it lost $821 million, or $1.63 per share, for the quarter ended June 30, compared with a profit of $729 million, or 96 cents per share, in the year-ago period.

The company says it set aside $2.5 billion for credit losses as delinquency rate and foreclosures increased. That’s more than double it had set aside in the first quarter.

Revenue fell to $1.69 billion from $2.34 billion.

Thomson Financial says analysts it surveyed expected a loss of 53 cents a share on $2.18 billion in revenue.

Freddie and sister company Fannie Mae hold or guarantee nearly half of outstanding mortgage debt in the U.S.