(Adds background on Fannie Mae)
WASHINGTON May 8 Government-controlled mortgage
finance firm Fannie Mae said on Thursday it would send
the U.S. Treasury a dividend of $5.7 billion after posting a
ninth straight quarterly profit.
Once it has made the latest payment in June, it will have
returned $126.8 billion to taxpayers in return for the $116.1
billion in aid it received after being placed under the
government's wing at the height of the financial crisis.
The company, the nation's largest source of mortgage funds,
earned a net income of $5.3 billion during the first three
months of the year, down from $8.1 billion in the year-ago
Fannie Mae cited revenue from litigation related to
mortgage-backed securities and a steady income from fees they
charge lenders to guarantee loans for the performance.
Fannie Mae and rival Freddie Mac, which own or
guarantee 60 percent of all U.S. home loans, were placed in
conservatorship in September 2008 as soured loans threatened
Under their bailout terms, they must turn their profits over
to the Treasury as dividends on the controlling stake the
government took when it seized them. They cannot repurchase the
(Reporting By Margaret Chadbourn; Editing by W Simon and Chizu