News Summary: Fannie Mae earned $2.7B in Q1

The Associated Press
May 9, 2012

FANNIE TURNS PROFIT: U.S. mortgage giant Fannie Mae reported a net income gain of $2.7 billion in the January-March quarter, it's first since it was taken over by the government during the 2008 financial crisis.

TAXPAYERS BENEFIT: The company will pay a dividend of $2.8 billion to the Treasury Department. Fannie has received about $116 billion so far from the Treasury Department, the most expensive bailout of a single company.

SLOWER PRICE DECLINES: The company was able to report the gain mostly because it had lower expenses for its losses. A key reason for that is home price declines have slowed.

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