""Fannie Mae"":http://www.fanniemae.com/portal/index.html revealed that it produced $2.7 billion in net income for the first quarter this year, enough to prevent another draw from the ""Treasury"":http://www.treasury.gov/Pages/default.aspx, a first for the mortgage giant since it entered federal conservatorship in 2008.[IMAGE]
The favorable results offer a significant difference to a net loss of $6.5 billion from the same quarter last year, along with a net loss of $2.4 billion by the fourth quarter.
Fannie Mae chalked up the net income to reduced credit-related expenses, which it tied to fewer single-family serious delinquency rates and stabilizing home prices.[COLUMN_BREAK]
The company paid a dividend of $2.8 billion to Treasury for the first quarter. Total loss preserves, which reflect estimated probable loss in guaranty books of business, fell to $74.6 billion by the end of March.
""Today's results exemplify the tremendous progress we have made since 2009,"" Michael Williams, the outgoing president and CEO, said in a statement. ""Our credit-related expenses have decreased substantially due in part to stabilizing home prices, lower delinquency rates, and selling foreclosed properties at market competitive prices.""
Net worth for the company hovered at $268 million by the end of March, which it said reflects $3.1 billion in total comprehensive income. Treasury's preference for senior preferred stock stayed at $117.1 billion.
Despite net income for the first quarter, Fannie Mae sustains a debt for more than $180 billion in taxpayer funds it has received with Freddie Mac since 2008.
A strategic plan proposed by the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ earlier this year said that it was unlikely either GSE could repay losses incurred by taxpayers under any scenario.
""Freddie Mac"":http://www.freddiemac.com/ recently reported that it saw $577 million in net income over the first quarter, offset by $19 million in draws it anticipated from Treasury.