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Higher fair value losses hit Fannie Mae's comprehensive income in Q1

Fannie Maeposted first-quarter net income attributable to the company of $1.14 billion,compared with $1.89 billion in the year-ago quarter, according to a Form 10-Qfiled May 5.

Net income attributable to common shareholders was $217million, or 4 cents per share, compared with $92 million, or 2 cents per share.

Total comprehensive income attributable to the companydropped to $936 million from $1.80 billion. The year-over-year decline wasattributed to higher fair value losses and lower net revenues, partially offsetby an increase in credit-related income.

Net fair value losses were higher in the first quarter at$2.81 billion, compared with $1.92 billion in the year-ago period, due todeclines in longer-term swap rates.

Net interest income for the quarter fell to $4.77 billionfrom $5.07 billion.

Fee and other income dropped to $203 million from $308million. Net revenues also declined to $4.97 billion from $5.38 billion.

Fannie Mae reported total credit-related income for thequarter of $850 million due to a $1.2 billion benefit for credit losses asactual and projected mortgage interest rates fell. Total credit-related incomein the year-ago quarter was $60 million.

Fannie Mae's estimated market share of new single-familymortgage-related securities issuances in the first quarter was 37%, comparedwith 36% in the linked quarter and 40% in the first quarter of 2015.

With the expected June dividend payment, Fannie Mae willhave paid a total of $148.5 billion in dividends to the Treasury Department.The aggregate amount of draws the company received from Treasury, as of May 5,under the senior preferred stock purchase agreement is $116.1 billion. Dividendpayments do not offset prior Treasury draws.