Print Page  |  Close Window

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)


The following table displays our maximum exposure, guaranty obligation recognized in our condensed consolidated balance sheets and the maximum potential recovery from third parties through available credit enhancements and recourse related to our financial guarantees as of March 31, 2015 and December 31, 2014.
 
As of
 
March 31, 2015
 
 
December 31, 2014
 
Maximum Exposure(1)
 
Guaranty Obligation
 
Maximum Recovery(2)
 
Maximum Exposure(1)
 
Guaranty Obligation
 
Maximum Recovery(2)
 
(Dollars in millions)
Unconsolidated Fannie Mae MBS
$
16,703

 
 
$
209

 
 
$
9,576

 
 
$
17,184

 
 
$
214

 
 
$
9,775

Other guaranty arrangements(3)
18,254

 
 
158

 
 
4,431

 
 
18,781

 
 
168

 
 
4,447

    Total
$
34,957

 
 
$
367

 
 
$
14,007

 
 
$
35,965

 
 
$
382

 
 
$
14,222

__________
(1) 
Primarily consists of the unpaid principal balance of the underlying mortgage loans.
(2) 
Recoverability of such credit enhancements and recourse is subject to, among other factors, our mortgage insurers’ and financial guarantors’ ability to meet their obligations to us. For information on our mortgage insurers, see “Note 13, Concentrations of Credit Risk.”
(3) 
Primarily consists of credit enhancements, long-term standby commitments, and our commitment under the TCLF program.
The fair value of our guaranty obligations associated with the Fannie Mae MBS included in “Investments in securities” in our condensed consolidated balance sheets was $769 million and $797 million as of March 31, 2015 and December 31, 2014, respectively. These Fannie Mae MBS consist primarily of private-label wraps where our guaranty arrangement is with an unconsolidated MBS trust.
7.  Acquired Property, Net
Acquired property, net consists of held-for-sale foreclosed property received in satisfaction of a loan, net of a valuation allowance for declines in the fair value of the properties after initial acquisition. We classify properties as held for sale when we intend to sell the property and are actively marketing it for sale. The following table displays the activity in acquired property, and the related valuation allowance, for the three months ended March 31, 2015 and 2014.
 
For the Three Months Ended March 31,
 
2015
 
2014
 
(Dollars in millions)
Beginning balance — Acquired property
$
11,442

 
$
12,307

Additions
2,935

 
3,772

Disposals
(4,029
)
 
(3,335
)
Ending balance — Acquired property
10,348

 
12,744

Beginning balance — Valuation allowance
(824
)
 
(686
)
Increase in valuation allowance
(6
)
 
(98
)
Ending balance — Valuation allowance
(830
)
 
(784
)
Ending balance — Acquired property, net
$
9,518

 
$
11,960


93