Fannie Mae income up

Fannie Mae reported net income of $2.9 billion for the second quarter, higher than last quarter.

The agency said the increase was primarily due to lower fair-value losses in the second quarter, driven by smaller decreases in long-term interest rates and higher credit-related income due to more prepayments, increasing home prices and fewer foreclosed properties.

Fannie Mae said it expects to pay $2.9 billion in dividends to the U.S. Treasury in September.