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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
 





FANNIE MAE
(In conservatorship)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(UNAUDITED)


 
For the Three Months Ended March 31, 2014
 
Business Segments
 
Other Activity/Reconciling Items
 
 
 
 
Single-Family
 
Multifamily
 
Capital Markets
 
Consolidated Trusts(1)
 
Eliminations/ Adjustments(2)

 
Total Results
 
 
(Dollars in millions)
Net interest (loss) income
$
(48
)
 
 
$
(22
)
 
 
$
1,830

 
 
$
2,698

 
 
$
280

(3) 
 
$
4,738

 
Benefit for credit losses
745

 
 
29

 
 

 
 

 
 

 
 
774

 
Net interest income after benefit for credit losses
697

 
 
7

 
 
1,830

 
 
2,698

 
 
280

 
 
5,512

 
Guaranty fee income (expense)(4)
2,870

 
 
311

 
 
(246
)
 
 
(1,427
)
(5) 
 
(1,463
)
(5) 
 
45

(5) 
Investment gains (losses), net

 
 
3

 
 
1,285

 
 
(58
)
 
 
(1,135
)
(6) 
 
95

 
Fair value (losses) gains, net
(5
)
 
 

 
 
(1,337
)
 
 
48

 
 
104

(7) 
 
(1,190
)
 
Debt extinguishment (losses) gains, net

 
 

 
 
(7
)
 
 
7

 
 

 
 

 
Gains from partnership investments(8)

 
 
45

 
 

 
 

 
 

 
 
45

 
Fee and other income (expense)
144

 
 
24

 
 
4,133

 
 
(76
)
 
 
85

 
 
4,310

 
Administrative expenses
(450
)
 
 
(73
)
 
 
(149
)
 
 

 
 

 
 
(672
)
 
Foreclosed property income
257

 
 
5

 
 

 
 

 
 

 
 
262

 
TCCA fees(4)
(322
)
 
 

 
 

 
 

 
 

 
 
(322
)
 
Other expenses
(155
)
 
 
(1
)
 
 
(8
)
 
 

 
 
(12
)
 
 
(176
)
 
Income before federal income taxes
3,036

 
 
321

 
 
5,501

 
 
1,192

 
 
(2,141
)
 
 
7,909

 
(Provision) benefit for federal income taxes
(927
)
 
 
9

 
 
(1,666
)
 
 

 
 

 
 
(2,584
)
 
Net income attributable to Fannie Mae
$
2,109

 
 
$
330

 
 
$
3,835

 
 
$
1,192

 
 
$
(2,141
)
 
 
$
5,325

 
__________
(1) 
Represents activity related to the assets and liabilities of consolidated trusts in our condensed consolidated balance sheets.
(2) 
Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our consolidated results.
(3) 
Represents the amortization expense of cost basis adjustments on securities in the Capital Markets group’s retained mortgage portfolio that on a GAAP basis are eliminated.
(4) 
Includes the impact of a 10 basis point guaranty fee increase implemented pursuant to 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.”
(5) 
Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee income related to unconsolidated Fannie Mae MBS trusts and other credit enhancement arrangements is included in fee and other income in our condensed consolidated statements of operations and comprehensive income.
(6) 
Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale securities that are issued by consolidated trusts and in the Capital Markets group’s retained mortgage portfolio. The adjustment also includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio securitization transactions that do not qualify for sale accounting under GAAP.
(7) 
Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are in the Capital Markets group’s retained mortgage portfolio.
(8) 
Gains from partnership investments are included in other expenses in our condensed consolidated statements of operations and comprehensive income.

100