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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 08/03/2017
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Notes to Condensed Consolidated Financial Statements | Fair Value


The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. The significant unobservable inputs related to these techniques primarily relate to collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property.
 
 
 
Fair Value Measurements
as of
 
Valuation Techniques
 
 
June 30, 2017
 
 
December 31, 2016
 
 
 
 
(Dollars in millions)
 
Nonrecurring fair value measurements:
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale, at lower of cost or fair value
Consensus
 
 
$
2,316

 
 
 
$
1,025

 
 
Single Vendor
 
 
74

 
 
 
54

 
 
Various
 
 
2

 
 
 
9

 
Total mortgage loans held for sale, at lower of cost or fair value
 
 
 
2,392

 
 
 
1,088

 
Single-family mortgage loans held for investment, at amortized cost
Internal Model
 
 
1,806

 
 
 
2,816

 
Multifamily mortgage loans held for investment, at amortized cost
Broker Price Opinions
 
 
19

 
 
 
25

 
 
Asset Manager Estimate
 
 
96

 
 
 
170

 
 
Various
 
 

 
 
 
3

 
Total multifamily mortgage loans held for investment, at amortized cost
 
 
 
115

 
 
 
198

 
Acquired property, net:(1)
 
 
 
 
 
 
 
 
 
Single-family
Accepted Offers
 
 
255

 
 
 
340

 
 
Appraisals
 
 
509

 
 
 
571

 
 
Walk Forwards
 
 
200

 
 
 
306

 
 
Internal Model
 
 
294

 
 
 
476

 
 
Various
 
 
44

 
 
 
99

 
Total single-family
 
 
 
1,302

 
 
 
1,792

 
Multifamily
Broker Price Opinions
 
 
27

 
 
 

 
Other assets
Various
 
 
2

 
 
 
12

 
Total nonrecurring assets at fair value
 
 
 
$
5,644

 
 
 
$
5,906

 
__________
(1) 
The most commonly used techniques in our valuation of acquired property are proprietary home price model and third-party valuations (both current and walk forward). Based on the number of properties measured as of June 30, 2017, these methodologies comprised approximately 74% of our valuations, while accepted offers comprised approximately 20% of our valuations. Based on the number of properties measured as of December 31, 2016, these methodologies comprised approximately 75% of our valuations, while accepted offers comprised approximately 19% of our valuations.
We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. See “Note 17, Fair Value” in our 2016 Form 10-K for information on the valuation control processes and the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations. There were no significant changes made to the valuation control processes and the valuation techniques for the six months ended June 30, 2017.

Fannie Mae (In conservatorship) Second Quarter 2017 Form 10-Q
109