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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
 

Our forecast that total originations in the U.S. single-family mortgage market in 2015 will increase from 2014 levels by approximately 14%, from an estimated $1.2 trillion in 2013 to $1.4 trillion in 2014;
Our forecast that the amount of originations in the U.S. single-family mortgage market that are refinancings will increase from an estimated $507 billion in 2014 to $609 billion in 2015;
Our expectation that the rate of home price appreciation in 2015 will be similar to the rate in 2014;
Our expectation of significant regional variation in the timing and rate of home price growth;
Our expectation that our credit losses will resume their downward trend in future quarters;
Our expectation that our approach to adopting the Advisory Bulletin’s charge-off provisions and our charge-offs resulting from implementing our change in accounting policy for nonaccrual loans will decrease the amount of future charge-offs on these same loans from what they otherwise would have been;
Our expectation that, although our loss reserves have declined substantially from their peak and are expected to decline further, our loss reserves will remain elevated relative to the levels experienced prior to the 2008 housing crisis for an extended period because (1) we expect future defaults on loans that we acquired prior to 2009 and the resulting charge-offs will occur over a period of years and (2) a significant portion of our reserves represents concessions granted to borrowers upon modification of their loans and our reserves will continue to reflect these concessions until the loans are fully repaid or default;
The expectations that, since all of the guaranty fee changes FHFA directed us to implement in April 2015 are small, the adjustments will not cause any material changes to our loan volume in any of the relevant loan categories and that the small changes will be revenue neutral;
Our expectation that we will allocate $52 million that we accrued in the first quarter of 2015, plus additional amounts to be accrued based on our new business purchases in subsequent quarters of 2015, in February 2016 to HUD’s Housing Trust Fund and Treasury’s Capital Magnet Fund;
Our expectation that guaranty fees collected and expenses incurred under the TCCA will continue to increase in the future;
Our expectation that, as we continue to reduce the size of our retained mortgage portfolio, our revenues generated by our retained mortgage portfolio will decrease;
Our belief that our liquidity contingency plan may be difficult or impossible to execute for a company of our size and in our circumstances;
Our intention to repay our short-term and long-term debt obligations as they become due primarily through proceeds from the issuance of additional debt securities;
Our expectation that we may also use proceeds from our mortgage assets to pay our debt obligations;
Our expectation that we will not eliminate our deficit of core capital over statutory minimum capital;
Our expectation that the serious delinquency rates for single-family loans acquired in more recent years will be higher after the loans have aged, but will not approach the March 31, 2015 serious delinquency rates of loans acquired in 2005 through 2008;
Our expectation that the ultimate performance of all our loans will be affected by borrower behavior, public policy and macroeconomic trends, including unemployment, the economy and home prices;
Our expectation that loans we acquire under Refi Plus and HARP will perform better than the loans they replace because they should either reduce the borrowers’ monthly payments or provide more stable terms than the borrowers’ old loans (for example, by refinancing into a mortgage with a fixed interest rate instead of an adjustable rate);
Our expectation that the volume of refinancings under HARP will continue to decline, due to a decrease in the population of borrowers with loans that have high LTV ratios who are willing to refinance and would benefit from refinancing;
Our belief that the slow pace of single-family 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);
Our expectation that the number of our single-family loans in our book of business that are seriously delinquent will remain above pre-2008 levels for years;

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