Fannie Mae reported first-quarter net income of $654.2 million, 15.5% more than a year earlier.

Per-share income was 59 cents.

In announcing the results, Lawrence M. Small, president and chief operating officer, offered these highlights:

*Net interest income climbed $45.3 million, driven by a 14% rate of growth in Fannie's mortgage portfolio.

*An $8.1 million rise in fees from loan guaranties.

*An increase of $8 million in miscellaneous income.

Mr. Small said provision for loan losses also rose in the quarter because of expectations that foreclosures, related expenses, and chargeoffs would climb. But he added that chargeoff and foreclosure expenses remained low, at 5.8 basis points. He said the company had quadrupled its allowance for loan losses.

The company's net interest margin climbed to 120 basis points in the quarter, from 115 the year before. In the fourth quarter of 1995, the margin was 119 basis points.

Chairman James A. Johnson, commenting on the progress of a capital restructuring announced by the Federal National Mortgage Association late last year, said:

"In the first quarter, we issued $375 million in preferred stock, repurchased 26 million shares of common stock, fully funded our commitment to contribute $350 million in Fannie Mae stock to our charitable foundation, and added $400 million to our capital base."

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MILWAUKEE - MGIC Investment Corp. reported earnings for the quarter ended March 31 of $58.5 million, a 29% increase from the first quarter of 1995.

Earnings at the mortgage insurer were 98 cents per share, up from 76 cents.

William H. Lacy, president and chief executive officer of MGIC, said its earnings growth in the quarter was fueled by a 25% increase in revenues, while losses and expenses rose just 19%.

"The default rate rose modestly, primarily due to an increase in the risk profile of loans insured in late 1994 and early 1995," Mr. Lacy said. "The underwriting changes we implemented in the first half of 1995 in response to the increased risk profile have resulted in an improved risk profile of loans insured since then."

He added that the underwriting changes had probably caused a modest decline in MGIC's market share in the first quarter.

- Juliana Ratner

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