Federal National Mortgage Association reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. The company reported pre-tax income of $8.1 billion for the first quarter of 2013, compared with pre-tax income of $2.7 billion in the first quarter of 2012 and pre-tax income of $7.6 billion in the fourth quarter of 2012. The improvement in the company’s results in the first quarter of 2013 compared with the first quarter of 2012 was due primarily to strong credit results driven by an increase in home prices, including higher average sales prices on Fannie Mae-owned properties, a decline in the number of delinquent loans, and the company’s resolution agreement with bank of America. The company reported comprehensive income of $59.3 billion in the first quarter of 2013, compared with comprehensive income of $3.1 billion for the first quarter of 2012. Net revenues were $6,872 million against $5,572 million a year ago period. Net income attributable to company was $58,685 million against $2,719 million year ago. Net interest income was $6.3 billion, compared with $5.2 billion for the first quarter of 2012. The increase in net interest income compared with the fourth quarter of 2012 was driven by the recognition of $518 million of unamortized cost basis adjustments related to loans repurchased by bank of America under the January 6, 2013 resolution agreement. Income before federal income taxes was $8,114 million against $2,718 million a year ago period. Loss per basic and diluted share was $0.12 against $0.02 a year ago. Cash flows used in financing activities was $100,120 million against $157,530 million a year ago.

Federal National Mortgage Association (Fannie Mae) and KPMG LLP have agreed to pay USD 153 million to settle a shareholder lawsuit filed by Ohio pension funds and others accusing the companies, regarding the firms issuing 'false and misleading' financial reports. According to the lawsuit, Fannie Mae and its then-auditor, KPMG, issued materially false and misleading financial reports publically that artificially inflated the price of Fannie Mae's securities. The settlement aims to end the litigation, which had begun in 2004, and requires approval from the judge overseeing the case.

A settlement was reached in "In re Fannie Mae Securities Litigation," a class action securities fraud lawsuit pending in the U.S. District Court for the District of Columbia. Leanne G. Spencer, the former Controller of Fannie Mae, was not a party to the settlement because the court dismissed all claims against her in November 2012.