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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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Problem Loan Statistics
Table 27 displays the delinquency status of loans in our single-family conventional guaranty book of business (based on number of loans) and changes in the balance of seriously delinquent loans in our single-family conventional guaranty book of business.
Table 27: Delinquency Status and Activity of Single-Family Conventional Loans
 
As of
 
March 31,
2015
 
December 31, 2014
 
March 31,
2014
Delinquency status:
 
 
 
 
 
30 to 59 days delinquent
1.26
%
 
1.47
%
 
1.40
%
60 to 89 days delinquent
0.36

 
0.43

 
0.40

Seriously delinquent (“SDQ”)
1.78

 
1.89

 
2.19

Percentage of SDQ loans that have been delinquent for more than 180 days
72
%
 
70
%
 
74
%
Percentage of SDQ loans that have been delinquent for more than two years
34

 
34

 
37

 
For the Three Months Ended March 31,
 
2015
 
 
2014
Single-family SDQ loans (number of loans):
 
 
 
 
Beginning balance
329,590

 
 
418,837

Additions
67,358

 
 
79,318

Removals:
 
 
 
 
Modifications and other loan workouts
(25,883
)
 
 
(35,078
)
Liquidations
(30,075
)
 
 
(42,073
)
Cured or less than 90 days delinquent
(32,444
)
 
 
(37,194
)
Total removals
(88,402
)
 
 
(114,345
)
Ending balance
308,546

 
 
383,810

Our single-family serious delinquency rate has decreased each quarter since the first quarter of 2010. The decrease in our serious delinquency rate is primarily the result of home retention solutions, foreclosure alternatives and completed foreclosures, improved loan payment performance, as well as our acquisition of loans with stronger credit profiles since the beginning of 2009. Loans we acquired since 2009 comprised 82% of our single-family guaranty book of business and had a serious delinquency rate of 0.36% as of March 31, 2015.
Although our single-family serious delinquency rate has decreased, the pace of declines in our single-family serious delinquency rate has slowed in recent months and we expect this trend to continue. Our single-family serious delinquency rate and the period of time that loans remain seriously delinquent continue to be negatively impacted by the length of time required to complete a foreclosure in some states. High levels of foreclosures, changes in state foreclosure laws, new federal and state servicing requirements imposed by regulatory actions and legal settlements, and the need for servicers to adapt to these changes have lengthened the time it takes to foreclose on a mortgage loan in a number of states, particularly in New York, Florida and New Jersey. Longer foreclosure timelines result in these loans remaining in our book of business for a longer time, which has caused our serious delinquency rate to decrease more slowly in the last few years than it would have if the pace of foreclosures had been faster. We believe the slow pace of foreclosures in certain areas of the country will continue to negatively affect our single-family serious delinquency rates, foreclosure timelines and credit-related income (expense). Other factors such as the pace of loan modifications, the timing and volume of any NPL sales we make, changes in home prices, unemployment levels and other macroeconomic conditions also influence serious delinquency rates. We expect the number of our single-family loans in our book of business that are seriously delinquent to remain above pre-2008 levels for years.
Certain higher-risk loan categories, such as Alt-A loans and loans with higher mark-to-market LTV ratios, and our 2005 through 2008 loan vintages continue to exhibit higher than average delinquency rates and/or account for a higher share of our credit losses. Our 2005 to 2008 loan vintages represented approximately 48% of the loans added to our seriously delinquent

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