By MARCY GORDON, Associated Press
WASHINGTON (AP) — Mortgage giant Fannie Mae earned a record $58.7 billion from January through March, benefiting from a one-time accounting move that allowed the company to lower its tax liability.
Fannie reported that $50.6 billion of its first-quarter net income came in part from losses on delinquent mortgages incurred during the housing crisis that Fannie applied to its 2013 taxes. That helped reduce what the company owed in taxes, and boosted its profit.
The company also reported earning $8.1 billion in the first quarter before taxes, mostly because of a better housing market.
The first-quarter gain compares with net income of $2.7 billion in the first quarter of 2012. Fannie has now had five straight profitable quarters.
Fannie will pay a dividend of $59.4 billion to the U.S. Treasury next month.
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