Fannie Mae Profit Falls From Record Inflated by Tax Credits

Fannie Mae reported net income of $14.2 billion last year, a sharp decline from the record $84 billion in 2013 that was inflated by accounting for tax credits.

The U.S.-owned mortgage finance company will pay the Treasury Department $1.9 billion next month after posting a profit of $1.3 billion for the period ended Dec. 31, a 12th straight positive quarter, according to a regulatory filing Friday. The fourth-quarter gain compared with $6.5 billion in the same period a year earlier.