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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/07/2015
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reasonably different estimates and assumptions could have a material impact on our reported results of operations or financial condition. These critical accounting policies and estimates are as follows:
•    Fair Value Measurement;
•    Total Loss Reserves; and
•    Deferred Tax Assets.
See “MD&A—Critical Accounting Policies and Estimates” in our 2014 Form 10-K for a discussion of these critical accounting policies and estimates.
CONSOLIDATED RESULTS OF OPERATIONS
This section provides a discussion of our condensed consolidated results of operations for the periods indicated and should be read together with our condensed consolidated financial statements, including the accompanying notes.
Table 3 displays a summary of our condensed consolidated results of operations for the periods indicated.
Table 3: Summary of Condensed Consolidated Results of Operations
 
For the Three Months
 
Ended March 31,
 
2015
 
2014
 
Variance
 
(Dollars in millions)
Net interest income
$
5,067

 
$
4,738

 
$
329

Fee and other income
308

 
4,355

 
(4,047
)
Net revenues
5,375

 
9,093

 
(3,718
)
Investment gains, net
342

 
95

 
247

Fair value losses, net
(1,919
)
 
(1,190
)
 
(729
)
Administrative expenses
(723
)
 
(672
)
 
(51
)
Credit-related income
 
 
 
 
 
Benefit for credit losses
533

 
774

 
(241
)
Foreclosed property (expense) income
(473
)
 
262

 
(735
)
Total credit-related income
60

 
1,036

 
(976
)
Other non-interest expenses(1)
(377
)
 
(453
)
 
76

Income before federal income taxes
2,758

 
7,909

 
(5,151
)
Provision for federal income taxes
(870
)
 
(2,584
)
 
1,714

Net income attributable to Fannie Mae
$
1,888

 
$
5,325

 
$
(3,437
)
Total comprehensive income attributable to Fannie Mae
$
1,796

 
$
5,697

 
$
(3,901
)
__________
(1) 
Consists of TCCA fees, debt extinguishment gains, net, and other expenses, net.
Net Interest Income
We currently have two primary sources of net interest income: (1) the guaranty fees we receive for managing the credit risk on loans underlying Fannie Mae MBS held by third parties, which we refer to as mortgage loans of consolidated trusts; and (2) the difference between interest income earned on the assets in our retained mortgage portfolio and the interest expense associated with the debt that funds those assets.
Table 4 displays an analysis of our net interest income, average balances, and related yields earned on assets and incurred on liabilities for the periods indicated. For most components of the average balances, we use a daily weighted average of amortized cost. When daily average balance information is not available, such as for mortgage loans, we use monthly averages. Table 5 displays the change in our net interest income between periods and the extent to which that variance is attributable to: (1) changes in the volume of our interest-earning assets and interest-bearing liabilities or (2) changes in the interest rates of these assets and liabilities.

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