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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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FANNIE MAE
(In conservatorship)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(UNAUDITED)


 
For the Three Months Ended March 31,
 
2015
 
2014
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
(Dollars in millions)
Individually impaired loans:
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Single-family:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Primary
 
$
117,721

 
 
 
$
1,034

 
 
 
$
104

 
 
 
$
123,465

 
 
 
$
1,094

 
 
 
$
140

 
Government
 
282

 
 
 
3

 
 
 

 
 
 
238

 
 
 
3

 
 
 

 
Alt-A
 
31,491

 
 
 
251

 
 
 
17

 
 
 
34,337

 
 
 
270

 
 
 
28

 
Other
 
13,416

 
 
 
94

 
 
 
7

 
 
 
14,910

 
 
 
103

 
 
 
11

 
Total single-family
 
162,910

 
 
 
1,382

 
 
 
128

 
 
 
172,950

 
 
 
1,470

 
 
 
179

 
Multifamily
 
1,229

 
 
 
3

 
 
 

 
 
 
2,086

 
 
 
23

 
 
 

 
Total individually impaired loans with related allowance recorded
 
164,139

 
 
 
1,385

 
 
 
128

 
 
 
175,036

 
 
 
1,493

 
 
 
179

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With no related allowance recorded:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Primary
 
16,249

 
 
 
247

 
 
 
41

 
 
 
12,646

 
 
 
185

 
 
 
48

 
Government
 
59

 
 
 
1

 
 
 

 
 
 
93

 
 
 
1

 
 
 

 
Alt-A
 
3,736

 
 
 
44

 
 
 
7

 
 
 
2,520

 
 
 
41

 
 
 
10

 
Other
 
1,301

 
 
 
18

 
 
 
2

 
 
 
891

 
 
 
11

 
 
 
2

 
Total single-family
 
21,345

 
 
 
310

 
 
 
50

 
 
 
16,150

 
 
 
238

 
 
 
60

 
Multifamily
 
541

 
 
 
1

 
 
 

 
 
 
1,826

 
 
 
20

 
 
 

 
Total individually impaired loans with no related allowance recorded
 
21,886

 
 
 
311

 
 
 
50

 
 
 
17,976

 
 
 
258

 
 
 
60

 
Total individually impaired loans(2)
 
$
186,025

 
 
 
$
1,696

 
 
 
$
178

 
 
 
$
193,012

 
 
 
$
1,751

 
 
 
$
239

 
__________
(1) 
The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.
(2) 
Includes single-family loans restructured in a TDR with a recorded investment of $181.9 billion and $185.2 billion as of March 31, 2015 and December 31, 2014, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $705 million and $716 million as of March 31, 2015 and December 31, 2014, respectively.
(3) 
Total single-family interest income recognized of $1.7 billion for the three months ended March 31, 2015 consists of $1.4 billion of contractual interest and $276 million of effective yield adjustments. Total single-family interest income recognized of $1.7 billion for the three months ended March 31, 2014 consists of $1.4 billion of contractual interest and $275 million of effective yield adjustments.
Troubled Debt Restructurings
A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. In addition to formal loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify loans to certain borrowers who have received bankruptcy relief as TDRs.
The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. During the three months ended March 31, 2015 and 2014, the average term extension of a single-family

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