Fannie Mae markets preferred stock issue - sources

NEW YORK, May 12 (Reuters) - Fannie Mae (FNM.N), the biggest provider of financing for U.S. residential mortgages, is marketing an issue of preferred stock on Monday, according to investors familiar with the offering.

The preferred issue, expected to be at least $1.5 billion, is seen paying about a 8.25 percent dividend yield, according to pricing documents obtained by Reuters. It would supplement the $4.5 billion in convertible preferred stock and common stock issued on Thursday.

The government-sponsored enterprise last week said it would raise $6 billion in fresh capital as it builds a cushion against further losses and increases its ability to stablize the housing market with its purchases and guarantees. Fannie Mae on Tuesday said it lost $2.5 billion in the first quarter, after the payment of preferred stock dividends, and boosted its forecast for credit losses in 2008.

A Fannie Mae spokesman declined to comment on a preferred share offering.

(Reporting by Al Yoon and Jennifer Ablan, Editing by Chizu Nomiyama)