Fannie Mae will pay the Treasury Department $1.8 billion after reporting net income of $1.9 billion for the first quarter.
The company, which was seized along with
"This was another quarter of strong financial performance," Timothy Mayopoulos, Fannie Mae's chief executive officer, said in a statement. "While we experienced some interest rate volatility again this quarter, we expect to remain profitable on an annual basis for the foreseeable future."
Under terms of their conservatorships, Fannie Mae and Freddie Mac are required to turn over all profits above a minimum net worth threshold. The payments count as a return on the U.S. investment and not as repayment of the aid, leaving them no existing path out of U.S. control.