Fannie Mae Posts $10.1 Billion Profit Boosted By Housing Recovery

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FANNIE MAE
FILE - In a Monday, Aug. 8, 2011 file photo, the Fannie Mae headquarters is seen in Washington. Mortgage giant Fannie Mae has posted its second quarterly gain in net income since it was taken over by the government during the 2008 financial crisis. Fannie isn?t requesting any additional federal aid for the April-June quarter. Fannie Mae said Wednesday, Aug. 8, 2012 its net income attributable to common shareholders was $2.2 billion, or 37 cents per share, in the second quarter. That compares wit | AP

WASHINGTON — Mortgage giant Fannie Mae earned $10.1 billion in the second quarter, aided by the recovery in the housing market. The government-controlled company has turned a profit in each of the past six quarters.

Fannie said Thursday it will pay a dividend of $10.2 billion to the U.S. Treasury next month and requested no additional federal aid.

The company said the rise in home prices during the quarter enabled it to reduce its reserves set aside for losses on mortgages, helping boost its net income.

The earnings for April through June period compared with net income of $5.1 billion in the second quarter of 2012.

The government rescued Fannie and smaller sibling Freddie Mac during the financial crisis after both incurred massive losses on risky mortgages. The companies received loans totaling about $187 billion.

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