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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 08/03/2017
Entire Document
 
 
MD&A | Mortgage Credit Book of Business


Table 13: Composition of Mortgage Credit Book of Business
 
As of
 
June 30, 2017
 
December 31, 2016
 
Single-Family 
 
Multifamily 
 
Total 
 
Single-Family 
 
Multifamily 
 
Total 
 
(Dollars in millions)
Mortgage loans and Fannie Mae MBS(1)
$
2,865,372

 
$
244,701

 
$
3,110,073

 
$
2,838,086

 
$
229,896

 
$
3,067,982

Unconsolidated Fannie Mae MBS, held by third parties(2)
7,014

 
1,096

 
8,110

 
7,795

 
1,159

 
8,954

Other credit guarantees(3)
2,004

 
12,628

 
14,632

 
2,193

 
13,142

 
15,335

Guaranty book of business
$
2,874,390

 
$
258,425

 
$
3,132,815

 
$
2,848,074

 
$
244,197

 
$
3,092,271

Other agency mortgage-related securities(4)
2,286

 

 
2,286

 
2,500

 

 
2,500

Other mortgage-related securities(5)
4,009

 
1,059

 
5,068

 
4,980

 
2,752

 
7,732

Mortgage credit book of business  
$
2,880,685

 
$
259,484

 
$
3,140,169

 
$
2,855,554

 
$
246,949

 
$
3,102,503

Guaranty Book of Business Detail:
 
 
 
 
 
 
 
 
 
 
 
Conventional Guaranty Book of Business(6)
$
2,831,398

 
$
257,129

 
$
3,088,527

 
$
2,802,572

 
$
242,834

 
$
3,045,406

Government Guaranty Book of Business(7)
$
42,992

 
$
1,296

 
$
44,288

 
$
45,502

 
$
1,363

 
$
46,865

__________
(1) 
Consists of mortgage loans and Fannie Mae MBS recognized in our condensed consolidated balance sheets. The principal balance of resecuritized Fannie Mae MBS is included only once in the reported amount.
(2) 
The principal balance of resecuritized Fannie Mae MBS is included only once in the reported amount.
(3) 
Consists of single-family and multifamily credit enhancements that we have provided and that are not otherwise reflected in the table.
(4) 
Consists of mortgage-related securities issued by Freddie Mac and Ginnie Mae.
(5) 
Primarily includes mortgage revenue bonds, Alt-A and subprime private-label securities, and CMBS.
(6) 
Consists of mortgage loans and mortgage-related securities that are not guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies.
(7) 
Consists of mortgage loans and mortgage-related securities guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies.
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Federal Housing Finance Regulatory Reform Act of 2008 (together, the “GSE Act”), requires us to set aside each year an amount equal to 4.2 basis points for each dollar of the unpaid principal balance of our total new business purchases and to pay this amount to specified U.S. Department of Housing and Urban Development (“HUD”) and Treasury funds. New business purchases consist of single-family and multifamily whole mortgage loans purchased during the period and single-family and multifamily mortgage loans underlying Fannie Mae MBS issued during the period pursuant to lender swaps. In February 2017, we paid $268 million to the funds based on our new business purchases in 2016. Our new business purchases were $270.9 billion in the first half of 2017. Accordingly, we recognized an expense of $114 million related to this obligation for the first half of 2017. We expect to pay this amount, plus additional amounts to be accrued based on our new business purchases in the second half of 2017, to the funds on or before March 1, 2018. See “Business—Legislation and Regulation—GSE Act and Other Regulation of Our Business—Affordable Housing Allocations” in our 2016 Form 10-K for more information regarding this obligation.

Fannie Mae Second Quarter 2017 Form 10-Q
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