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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
 





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


modified loan was 161 months and 159 months, respectively, and the average interest rate reduction was 0.77 and 1.23 percentage points, respectively.
The following table displays the number of loans and recorded investment in loans restructured in a TDR for the three months ended March 31, 2015 and 2014.
 
For the Three Months Ended March 31,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
21,407

 
 
 
$
2,945

 
 
 
28,842

 
 
 
$
4,110

 
Government
 
74

 
 
 
8

 
 
 
62

 
 
 
8

 
 Alt-A
 
2,789

 
 
 
438

 
 
 
4,396

 
 
 
740

 
Other
 
590

 
 
 
108

 
 
 
1,038

 
 
 
219

 
Total single-family
 
24,860

 
 
 
3,499

 
 
 
34,338

 
 
 
5,077

 
Multifamily
 
3

 
 
 
5

 
 
 
6

 
 
 
34

 
Total troubled debt restructurings
 
24,863

 
 
 
$
3,504

 
 
 
34,344

 
 
 
$
5,111

 
The following table displays the number of loans and our recorded investment in these loans at the time of payment default for the three months ended March 31, 2015 and 2014 for loans that were restructured in a TDR in the twelve months prior to the payment default. For purposes of this disclosure, we define loans that had a payment default as: single-family and multifamily loans with completed TDRs that liquidated during the period, either through foreclosure, deed-in-lieu of foreclosure or a short sale; single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period.
 
For the Three Months Ended March 31,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
6,723

 
 
 
$
1,003

 
 
 
8,598

 
 
 
$
1,310

 
Government
 
20

 
 
 
3

 
 
 
18

 
 
 
2

 
Alt-A
 
1,153

 
 
 
203

 
 
 
1,444

 
 
 
260

 
Other
 
304

 
 
 
66

 
 
 
504

 
 
 
115

 
Total single-family
 
8,200

 
 
 
1,275

 
 
 
10,564

 
 
 
1,687

 
Multifamily
 
2

 
 
 
4

 
 
 
4

 
 
 
14

 
Total TDRs that subsequently defaulted
 
8,202

 
 
 
$
1,279

 
 
 
10,568

 
 
 
$
1,701

 
4. Allowance for Loan Losses
Our allowance for loan losses is a valuation allowance that reflects an estimate of incurred credit losses related to our recorded investment in both single-family and multifamily HFI loans. This population includes both HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. When calculating our allowance for loan losses, we consider only our net recorded investment in the loan at the balance sheet date, which includes the loan’s unpaid principal balance and any applicable cost basis adjustments. We record charge-offs as a reduction to the allowance for loan losses when losses are confirmed through the receipt of assets in full satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale.

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