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Fannie Mae to Pay Treasury $59.4 Billion After Record Profit

Fannie Mae, the mortgage-financier seized by U.S. regulators in 2008, will pay the Treasury Department $59.4 billion after reporting a record quarterly profit driven by rising home prices and declining delinquencies.

The government-sponsored enterprise, which is operating under U.S. conservatorship, had net income of $8.1 billion for the three-month period that ended March 31, according to a statement released today. The Washington-based company’s net worth, which is used to determine what it owes the U.S., was boosted by a reversal of writedowns on tax credits, which may be valuable now that it’s returned to profitability.