Strong fourth-quarter results have prompted a raft of adjustments in analysts' earnings projections for Fannie Mae and Freddie Mac.

"High-quality earnings, strong asset growth, improving credit quality, stable net interest margins. This momentum plus the more vibrant mortgage markets that began to surface in late 1997 will set the tone for the 1998 earnings and outlook for the companies," said Robert G. Hottensen, Jr., an analyst at Goldman Sachs & Co.

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