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
 


BUSINESS SEGMENT RESULTS
Results of our three business segments are intended to reflect each segment as if it were a stand-alone business. Under our segment reporting structure, the sum of the results for our three business segments does not equal our condensed consolidated results of operations as we separate the activity related to our consolidated trusts from the results generated by our three segments. In addition, because we apply accounting methods that differ from our condensed consolidated results for segment reporting purposes, we include an eliminations/adjustments category to reconcile our business segment results and the activity related to our consolidated trusts to our condensed consolidated results of operations. We describe the management reporting and allocation process used to generate our segment results in “Note 13, Segment Reporting” in our 2014 Form 10-K.
In this section, we summarize our segment results for the first quarter of 2015 and 2014 in the tables below and provide a comparative discussion of these results. This section should be read together with our comparative discussion of our condensed consolidated results of operations in “Consolidated Results of Operations.” See “Note 11, Segment Reporting” for a reconciliation of our segment results to our condensed consolidated results.
Single-Family Business Results
Table 11 displays the financial results of our Single-Family business for the periods indicated. For a discussion of Single-Family credit risk management, including information on serious delinquency rates and loan workouts, see “Risk Management—Credit Risk Management—Single-Family Mortgage Credit Risk Management.” The primary source of revenue for our Single-Family business is guaranty fee income. Other items that impact income or loss primarily include credit-related (expense) income, TCCA fees and administrative expenses.
Table 11: Single-Family Business Results
 
For the Three Months Ended March 31,
 
2015
 
 
2014
 
 
Variance
 
(Dollars in millions)
Guaranty fee income(1)
$
3,040

 
 
$
2,870

 
 
$
170

Credit-related (expense) income(2)
(7
)
 
 
1,002

 
 
(1,009
)
TCCA fees(1)
(382
)
 
 
(322
)
 
 
(60
)
Other expenses(3)
(539
)
 
 
(514
)
 
 
(25
)
Income before federal income taxes
2,112

 
 
3,036

 
 
(924
)
Provision for federal income taxes
(581
)
 
 
(927
)
 
 
346

Net income attributable to Fannie Mae
$
1,531

 
 
$
2,109

 
 
$
(578
)
Other key performance data:
 
 
 
 
 
 
 
Securitization Activity/New Business
 
 
 
 
 
 
 
Single-family Fannie Mae MBS issuances
$
110,994

 
 
$
76,972

 
 
 
Credit Guaranty Activity
 
 
 
 
 
 
 
Average single-family guaranty book of business(4)
$
2,845,125

 
 
$
2,884,653

 
 
 
Single-family effective guaranty fee rate (in basis points)(1)(5)
42.7

 
 
39.8

 
 
 
Single-family average charged guaranty fee on new acquisitions (in basis points)(1)(6)
61.2

 
 
63.0

 
 
 
Single-family serious delinquency rate, at end of period(7)
1.78

%
 
2.19

%
 
 
Market
 
 
 
 
 
 
 
Single-family mortgage debt outstanding, at end of period (total U.S. market)(8)
$
9,862,066

 
 
$
9,851,200

 
 
 
30-year mortgage rate, at end of period(9)
3.69

%
 
4.40

%
 
 
__________
(1) 
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.”
(2) 
Consists of the benefit for credit losses and foreclosed property (expense) income.

25