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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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that back mortgage-related securities owned by third parties are not included in the Capital Markets group’s mortgage portfolio.
The amount of mortgage assets that we may own is restricted by our senior preferred stock purchase agreement with Treasury. By December 31 of each year, we are required to reduce our mortgage assets to 85% of the maximum allowable amount that we were permitted to own as of December 31 of the immediately preceding calendar year, until the amount of our mortgage assets reaches $250 billion in 2018. Under the agreement, the maximum allowable amount of mortgage assets we are permitted to own as of December 31, 2015 is $399.2 billion.
In 2014, FHFA requested that we submit a revised portfolio plan outlining how we will reduce the portfolio each year to 90% of the annual limit under our senior preferred stock purchase agreement with Treasury. FHFA’s request noted that we may seek FHFA permission to increase this cap to 95% of the annual limit under our senior preferred stock purchase agreement with Treasury upon written request and with a documented basis for exception, such as changed market conditions. Accordingly, under our revised portfolio plan, we plan to reduce our mortgage portfolio to no more than $359.3 billion as of December 31, 2015, in compliance with both our senior preferred stock purchase agreement with Treasury and FHFA’s request.
As we continue to reduce the size of our retained mortgage portfolio, our revenues generated by our retained mortgage portfolio will continue to decrease. As of March 31, 2015, we owned $411.7 billion in mortgage assets, compared with $413.3 billion as of December 31, 2014. For additional information on the terms of the senior preferred stock purchase agreement with Treasury, see “Business—Conservatorship and Treasury Agreements—Treasury Agreements” in our 2014 Form 10-K.
Table 14 displays our Capital Markets group’s mortgage portfolio activity based on unpaid principal balance.
Table 14: Capital Markets Group’s Mortgage Portfolio Activity
  
For the Three Months
  
Ended March 31,
 
2015
 
2014
 
(Dollars in millions)
Mortgage loans:
 
 
 
Beginning balance
$
285,610

 
$
314,664

Purchases
48,788

 
30,900

Securitizations(1)
(42,757
)
 
(26,543
)
Liquidations and sales(2)
(10,239
)
 
(13,032
)
Mortgage loans, ending balance
281,402

 
305,989

 
 
 
 
Mortgage securities:
 
 
 
Beginning balance
127,703

 
176,037

Purchases(3)
8,690

 
3,530

Securitizations(1)
42,757

 
26,543

Sales
(43,668
)
 
(37,242
)
Liquidations(2)
(5,200
)
 
(7,145
)
Mortgage securities, ending balance
130,282

 
161,723

Total Capital Markets group’s mortgage portfolio
$
411,684

 
$
467,712

__________
(1) 
Includes portfolio securitization transactions that do not qualify for sale treatment under GAAP.
(2) 
Includes scheduled repayments, prepayments, foreclosures, and lender repurchases.
(3) 
Includes purchases of Fannie Mae MBS issued by consolidated trusts.

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