Mortgage guarantor Fannie Mae (FNMA.OB) reported sharply higher pre-tax income of $8.1 billion for the first quarter, versus $2.7 billion a year ago, helped by strong credit results and higher revenue. Including Fannie Mae's release of the valuation allowance on its deferred tax assets, quarterly net income jumped to $58.7 billion, from $2.72 billion in the 2012 first quarter.
Net revenues totaled $6.87 billion in the recent period, up from the prior year's $5.57 billion.
In addition, the company said it expects to recognize pre-tax income in future periods relating to a separate resolution deal with Bank of America on compensatory fees. Fannie Mae's pre-tax income for the quarter was impacted by its resolution agreement with Bank of America related to repurchase requests.
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