Fannie Mae reports record $17.2 billion in profits

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By Ruth Mantell

WASHINGTON (MarketWatch) -- Federally-backed mortgage buyer Fannie Mae reported record profits Tuesday morning, recording its first annual net income since 2006, led by better credit results and revenue. For 2012, Fannie Mae FNMA +16.35% reported net income of $17.2 billion, compared with a loss of $16.9 billion in the prior year. Meanwhile, net revenues rose to $23 billion in 2012 from $20.4 billion in 2011. Looking forward, company officials said they expect "strong" annual net income in the next few years on improving credit quality and higher guaranty fees. Fannie said it was not releasing its valuation allowance, which was $58.9 billion at the end of last year, on deferred tax assets.