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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)


 
As of December 31, 2014
 
Carrying
Value
 
Quoted Price in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Netting Adjustment
 
Estimated
Fair Value
 
(Dollars in millions)
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents and restricted cash
$
54,565

 
$
37,965

 
$
16,600

 
$

 
$

 
$
54,565

Federal funds sold and securities purchased under agreements to resell or similar arrangements
30,950

 

 
30,950

 

 

 
30,950

Trading securities
31,504

 
19,466

 
9,008

 
3,030

 

 
31,504

Available-for-sale securities
30,654

 

 
15,574

 
15,080

 

 
30,654

Mortgage loans held for sale
331

 

 
169

 
169

 

 
338

Mortgage loans held for investment, net of allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Of Fannie Mae
239,243

 

 
29,896

 
217,064

 

 
246,960

Of consolidated trusts
2,779,920

 

 
2,657,863

 
183,263

 

 
2,841,126

Mortgage loans held for investment
3,019,163

 

 
2,687,759

 
400,327

 

 
3,088,086

Advances to lenders
5,559

 

 
5,079

 
470

 

 
5,549

Derivative assets at fair value
1,485

 

 
6,489

 
182

 
(5,186
)
 
1,485

Guaranty assets and buy-ups
210

 

 

 
616

 

 
616

Total financial assets
$
3,174,421

 
$
57,431

 
$
2,771,628

 
$
419,874

 
$
(5,186
)
 
$
3,243,747

 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
Federal funds purchased and securities sold under agreements to repurchase
$
50


$


$
50

 
$

 
$

 
$
50

Short-term debt:
 
 
 
 
 
 
 
 
 
 
 
    Of Fannie Mae
105,012

 

 
105,022

 

 

 
105,022

    Of consolidated trusts
1,560

 

 

 
1,560

 

 
1,560

Long-term debt:
 
 
 
 
 
 
 
 
 
 
 
    Of Fannie Mae
355,431

 

 
367,703

 
982

 

 
368,685

    Of consolidated trusts
2,760,152

 

 
2,815,843

 
19,334

 

 
2,835,177

Derivative liabilities at fair value
614

 

 
10,671

 
137

 
(10,194
)
 
614

Guaranty obligations
382

 

 

 
1,579

 

 
1,579

Total financial liabilities
$
3,223,201

 
$

 
$
3,299,289

 
$
23,592

 
$
(10,194
)
 
$
3,312,687

Financial Instruments for which fair value approximates carrying value—We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash and cash equivalents, the majority of advances to lenders, and federal funds and securities sold/purchased under agreements to repurchase/resell.
Federal funds and securities sold/purchased under agreements to repurchase/resell—The carrying value for the majority of these specific instruments approximates the fair value due to the short-term nature and the negligible inherent credit risk, as they involve the exchange of collateral that is easily traded. Were we to calculate the fair value of these instruments we would use observable inputs resulting in Level 2 classification.

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