Fannie Mae posted $3 billion in total "comprehensive" income in the first quarter, and then turned around and paid the U.S. Treasury $2.8 billion in dividends, according to figures released Wednesday morning.

The GSE said that because of its strong profit performance it will not need to draw any money from taxpayers this spring.

Overall, the GSE earned $2.7 billion, compared to a $6.5 billion loss in the same period last year. In 4Q it lost $2.4 billion.

"We expected our financial results for 2012 to be significantly better than 2011," said Susan McFarland, executive vice president and chief operating officer.

Fannie said the improvement in its performance is tied to "lower credit-related expenses, resulting from a less significant decline in home prices, a decline in the company's inventory of single-family real estate owned properties coupled with improved REO sales prices, and lower single-family serious delinquency rates."

In tandem with the improved outlook Fannie lowered its loss reserves to $74.6 billion in 1Q from $76.9 billion at yearend.

Fannie has been a ward of the government since September 2008.

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