BUSINESS

Mortgage giant Fannie Mae posts $8.7B profit in 3Q; nears repaying full US bailout

11/07/2013 08:01 EST | Updated 01/23/2014 10:53 EST
WASHINGTON - Mortgage giant Fannie Mae earned $8.7 billion in the July through September period, its seventh straight profitable quarter. The government-controlled company will have nearly repaid in full its taxpayer bailout of five years ago, after paying its third-quarter dividend.

Fannie said Thursday its earnings were boosted by the rise in home prices during the quarter, which enabled it to reduce its reserves set aside for losses on mortgages.

The earnings for the latest period compared with net income of $1.8 billion in the third quarter of 2012.

Washington-based Fannie said it will pay a dividend of $8.6 billion to the U.S. Treasury next month, bringing its payments to about $114 billion. Fannie received about $116 billion from taxpayers when the government rescued it and smaller sibling Freddie Mac during the financial crisis.