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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/07/2015
Entire Document
 


Table 2: Single-Family Acquisitions Statistics
 
2015
 
2014
 
 
Q1
 
Q4
 
Q3
 
Q2
 
Q1
 
 
(Dollars in millions)
 
Single-family average charged guaranty fee on new acquisitions (in basis points)(1)(2)
61.2

 
62.5

 
63.5

 
62.6

 
63.0

 
Single-family Fannie Mae MBS issuances
$
110,994

 
$
109,045

 
$
105,563

 
$
84,096

 
$
76,972

 
Select risk characteristics of single-family conventional acquisitions:(3)
 
 
 
 
 
 
 
 
 
 
Weighted average FICO® credit score at origination
748

 
745

 
744

 
744

 
741

 
FICO credit score at origination less than 660
5

%
6

%
7

%
7

%
8

%
Weighted average original LTV ratio(4)
74

%
76

%
77

%
77

%
77

%
Original LTV ratio over 80%(4)(5)
26

%
30

%
32

%
32

%
31

%
Original LTV ratio over 95%(4)(6)
2

%
2

%
3

%
4

%
7

%
Loan purpose:

 

 

 


 

 
Purchase
37

%
50

%
57

%
54

%
45

%
Refinance
63

%
50

%
43

%
46

%
55

%
__________
(1) 
Includes the impact of a 10 basis point guaranty fee increase implemented pursuant to the Temporary Payroll Tax Cut Continuation Act of 2011 (the “TCCA”), the incremental revenue from which must be remitted to Treasury. The resulting revenue is included in guaranty fee income and the expense is recognized as “TCCA fees.”
(2) 
Calculated based on the average contractual fee rate for our single-family guaranty arrangements entered into during the period plus the recognition of any upfront cash payments ratably over an estimated average life, expressed in basis points.
(3) 
Calculated based on unpaid principal balance of single-family loans for each category at time of acquisition.
(4) 
The original LTV ratio generally is based on the original unpaid principal balance of the loan divided by the appraised property value reported to us at the time of acquisition of the loan. Excludes loans for which this information is not readily available.
(5) 
We purchase loans with original LTV ratios above 80% as part of our mission to serve the primary mortgage market and provide liquidity to the housing finance system. Except as permitted under HARP, our charter generally requires primary mortgage insurance or other credit enhancement for loans that we acquire that have an LTV ratio over 80%.
(6) 
Approximately 58% of the greater than 95% LTV ratio loans we acquired in the first quarter of 2015 were acquired pursuant to HARP. See “Risk ManagementCredit Risk ManagementSingle-Family Mortgage Credit Risk Management” for information on HARP loans.
The decrease in our average charged guaranty fee on newly-acquired single-family loans in the first quarter of 2015 as compared with the first quarter of 2014 was driven primarily by a decrease in loan level price adjustments charged on our acquisitions in the first quarter of 2015, as these acquisitions included a lower proportion of loans with higher LTV ratios and a lower proportion of loans with lower FICO credit scores than our acquisitions in the first quarter of 2014. Loan level price adjustments refer to one-time cash fees that we charge at the time we acquire a loan based on the credit characteristics of the loan. See “Legislative and Regulatory Developments—Changes to Our Single-Family Guaranty Fee Pricing” for information on changes to our guaranty fee pricing.
The decrease in our acquisitions of loans with higher LTV ratios in the first quarter of 2015 as compared with the first quarter of 2014 was primarily due to an increase in the percentage of our acquisitions consisting of refinance loans, given the decrease in mortgage rates, and a corresponding decrease in the percentage of our acquisitions consisting of home purchase loans. Home purchase loans typically have higher LTV ratios than non-HARP refinance loans. In addition, an increase in refinance volume as a result of decreased mortgage rates resulted in an increase in borrowers with higher FICO credit scores in the first quarter of 2015 compared with the first quarter of 2014. The single-family loans we acquired in the first quarter of 2015 continued to have a strong credit profile, with a weighted average original LTV ratio of 74% and a weighted average FICO credit score of 748. For more information on the credit risk profile of our single-family conventional loan acquisitions in the first quarter of 2015, see “Risk Management—Credit Risk Management—Single-Family Mortgage Credit Risk Management,” including “Table 26: Risk Characteristics of Single-Family Conventional Business Volume and Guaranty Book of Business” in that section.

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