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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
 


Table 1: Credit Statistics, Single-Family Guaranty Book of Business(1)
  
2015
 
2014
 
  
Q1
 
Full
Year
 
Q4
 
Q3
 
Q2
 
Q1
 
  
(Dollars in millions)
 
As of the end of each period: 
 
 
 
 
 
 
 
 
 
 
 
 
Serious delinquency rate(2)
1.78

%
1.89

%
1.89

%
1.96

%
2.05

%
2.19

%
Seriously delinquent loan count
308,546

 
329,590

 
329,590

 
340,897

 
357,267

 
383,810

 
Foreclosed property inventory:
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties(3)
79,319

 
87,063

 
87,063

 
92,386

 
96,796

 
102,398

 
Carrying value
$
8,915

 
$
9,745

 
$
9,745

 
$
10,209

 
$
10,347

 
$
10,492

 
Total loss reserves(4)
32,532

 
37,762

 
37,762

 
39,330

 
41,657

 
44,760

 
During the period: 
 
 
 
 
 
 
 
 
 
 
 
 
Credit-related (expense) income(5)
$
(7
)
 
$
3,625

 
$
94

 
$
748

 
$
1,781

 
$
1,002

 
Credit losses(6)
5,373

 
5,978

 
1,616

 
1,738

 
1,497

 
1,127

 
REO net sales prices to unpaid principal balance(7)
70

%
69

%
69

%
69

%
69

%
68

%
Short sales net sales price to unpaid principal balance(8)
73

%
72

%
72

%
72

%
72

%
71

%
Loan workout activity (number of loans): 
 
 
 
 
 
 
 
 
 
 
 
 
Home retention loan workouts(9)
28,568

 
130,132

 
27,610

 
30,584

 
33,639

 
38,299

 
Short sales and deeds-in-lieu of foreclosure
5,657

 
34,480

 
6,845

 
7,992

 
9,516

 
10,127

 
Total loan workouts
34,225

 
164,612

 
34,455

 
38,576

 
43,155

 
48,426

 
Loan workouts as a percentage of delinquent loans in our guaranty book of business(10)
21.71

%
23.20

%
20.45

%
22.46

%
24.69

%
25.70

%
__________
(1) 
Our single-family guaranty book of business consists of (a) single-family mortgage loans of Fannie Mae, (b) single-family mortgage loans underlying Fannie Mae MBS, and (c) other credit enhancements that we provide on single-family mortgage assets, such as long-term standby commitments. It excludes non-Fannie Mae mortgage-related securities held in our retained mortgage portfolio for which we do not provide a guaranty.
(2) 
Calculated based on the number of single-family conventional loans that are 90 days or more past due or in the foreclosure process, divided by the number of loans in our single-family conventional guaranty book of business.
(3) 
Includes acquisitions through deeds-in-lieu of foreclosure. Also includes held for use properties, which are reported in our condensed consolidated balance sheets as a component of “Other assets.”
(4) 
Consists of (a) the combined loss reserves, (b) allowance for accrued interest receivable, and (c) allowance for preforeclosure property taxes and insurance receivable. Effective January 1, 2015, we charged off accrued interest receivable associated with loans on nonaccrual status and eliminated the related allowance in connection with our change in accounting policy related to the treatment of interest previously accrued, but not collected, at the date that loans are placed on nonaccrual status. See “Note 1, Summary of Significant Accounting Policies” for more information on this policy change.
(5) 
Consists of (a) the benefit for credit losses and (b) foreclosed property (expense) income.
(6) 
Consists of (a) charge-offs, net of recoveries and (b) foreclosed property expense (income), adjusted to exclude the impact of fair value losses resulting from credit-impaired loans acquired from MBS trusts. As discussed in “Outlook” and in “Consolidated Results of Operations—Credit Loss Performance Metrics,” our credit losses in the first quarter of 2015 included charge-offs of (1) $1.8 billion in loans held for investment and $724 million in preforeclosure property taxes and insurance receivable that we recognized on January 1, 2015 upon our adoption of FHFA’s Advisory Bulletin AB 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” (the “Advisory Bulletin”) and (2) $1.1 billion in accrued interest receivable that we recognized on January 1, 2015 upon our adoption of a change in accounting policy related to loans placed on nonaccrual.
(7) 
Calculated as the amount of sale proceeds received on disposition of REO properties during the respective period, excluding those subject to repurchase requests made to our sellers or servicers, divided by the aggregate unpaid principal balance of the related loans at the time of foreclosure. Net sales price represents the contract sales price less selling costs for the property and other charges paid by the seller at closing.
(8) 
Calculated as the amount of sale proceeds received on properties sold in short sale transactions during the respective periods divided by the aggregate unpaid principal balance of the related loans. Net sales price represents the contract sales price less the selling costs for

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