WASHINGTON – Fannie Mae is reporting net income of $3.7 billion from April through June as the housing market continued to recover.

Though the government-controlled mortgage giant reported its 10th straight profitable quarter Thursday, the second-quarter profit was down 63 per cent from $10.1 billion a year earlier.

Washington-based Fannie also said it will pay a dividend of $3.7 billion to the U.S. Treasury next month. With its previous payments totalling $126.7 billion, Fannie has more than fully repaid the $116 billion it received from taxpayers.

The government rescued Fannie and smaller sibling Freddie Mac at the height of the financial crisis.