Print Page  |  Close Window

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)


collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property.
 
 
 
Fair Value Measurements (Level 3)
as of
 
Valuation Techniques
 
March 31, 2015
 
December 31, 2014
 
 
 
 
(Dollars in millions)
 
Nonrecurring fair value measurements:
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale, at lower of cost or fair value
Consensus
 
 
$
202

 
 
 
$
110

 
Single-family mortgage loans held for investment, at amortized cost:
 
 
 
 
 
 
 
 
 
Of Fannie Mae
Internal Model
 
 
13,540

 
 
 
16,654

 
 
Consensus
 
 
271

 
 
 

 
Of consolidated trusts
Other
 
 
20

 
 
 
60

 
Total single-family mortgage loans held for investment, at amortized cost
 
 
 
13,831

 
 
 
16,714

 
Multifamily mortgage loans held for investment, at amortized cost
Broker Price Opinions
 
 
83

 
 
 
45

 
 
Asset Manager Estimate
 
 
557

 
 
 
580

 
 
Other
 
 
11

 
 
 

 
Total multifamily mortgage loans held for investment, at amortized cost
 
 
 
651

 
 
 
625

 
Acquired property, net:
 
 
 
 
 
 
 
 
 
Single-family
Accepted Offers
 
 
873

 
 
 
864

 
 
Appraisals
 
 
1,194

 
 
 
1,509

 
 
Walk Forwards
 
 
800

 
 
 
1,173

 
 
Internal Model
 
 
967

 
 
 
1,045

 
 
Other
 
 
172

 
 
 
191

 
Total single-family
 
 
 
4,006

 
 
 
4,782

 
Multifamily
Accepted Offers
 
 
13

 
 
 

 
 
Broker Price Opinions
 
 
35

 
 
 
127

 
 
Other
 
 

 
 
 
13

 
Total multifamily
 
 
 
48

 
 
 
140

 
Other assets
Other
 
 
27

 
 
 
45

 
Total nonrecurring assets at fair value
 
 
 
$
18,765

 
 
 
$
22,416

 
We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations.
Trading Securities and Available-for-Sale Securities
These securities are recorded in our condensed consolidated balance sheets at fair value on a recurring basis. Fair value is measured using quoted market prices in active markets for identical assets, when available.
We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy. We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy.

121