Despite asking the federal government to close a $4.57 billion gap in its budget in February, Fannie Mae today announced a $2.7 billion profit in the first three months of 2012. In addition, Reuters reported, Fannie would not require more taxpayer aid to stay afloat.
This is the first time since the third quarter of 2008 that Fannie has not requested taxpayer money. The first-quarter profit this year is a marked improvement from Fannie’s $6.5 billion loss in the first quarter of 2011, as well as its $2.4 billion loss in the fourth quarter of 2011. The better performance is attributed to lower credit-related expenses as the prices of homes have not fallen dramatically so far this year.
Fannie expects its financial results for this year to be “significantly better than 2011,” company President and CEO Michael Williams said. [Reuters via HuffPo]