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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
 
 
Notes to Condensed Consolidated Financial Statements | Mortgage Loans


 
For the Six Months Ended June 30,
 
2017
 
2016
 
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
 
$
96,395

 
 
 
$
1,941

 
 
 
$
165

 
 
 
$
107,984

 
 
 
$
2,036

 
 
 
$
175

 
Government
 
298

 
 
 
5

 
 
 

 
 
 
320

 
 
 
6

 
 
 

 
Alt-A
 
24,896

 
 
 
489

 
 
 
29

 
 
 
28,287

 
 
 
509

 
 
 
30

 
Other
 
9,805

 
 
 
169

 
 
 
10

 
 
 
11,827

 
 
 
185

 
 
 
11

 
Total single-family
 
131,394

 
 
 
2,604

 
 
 
204

 
 
 
148,418

 
 
 
2,736

 
 
 
216

 
Multifamily
 
280

 
 
 
6

 
 
 

 
 
 
589

 
 
 
18

 
 
 

 
Total individually impaired loans with related allowance recorded
 
131,674

 
 
 
2,610

 
 
 
204

 
 
 
149,007

 
 
 
2,754

 
 
 
216

 
With no related allowance recorded:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Primary
 
15,050

 
 
 
562

 
 
 
47

 
 
 
15,323

 
 
 
595

 
 
 
50

 
Government
 
61

 
 
 
2

 
 
 

 
 
 
58

 
 
 
2

 
 
 

 
Alt-A
 
3,056

 
 
 
140

 
 
 
5

 
 
 
3,362

 
 
 
143

 
 
 
8

 
Other
 
1,041

 
 
 
44

 
 
 
2

 
 
 
1,131

 
 
 
52

 
 
 
3

 
Total single-family
 
19,208

 
 
 
748

 
 
 
54

 
 
 
19,874

 
 
 
792

 
 
 
61

 
Multifamily
 
278

 
 
 
10

 
 
 

 
 
 
335

 
 
 
6

 
 
 

 
Total individually impaired loans with no related allowance recorded
 
19,486

 
 
 
758

 
 
 
54

 
 
 
20,209

 
 
 
798

 
 
 
61

 
Total individually impaired loans
 
$
151,160

 
 
 
$
3,368

 
 
 
$
258

 
 
 
$
169,216

 
 
 
$
3,552

 
 
 
$
277

 
__________
(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 $144.3 billion and $155.0 billion as of June 30, 2017 and December 31, 2016, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $198 million and $248 million as of June 30, 2017 and December 31, 2016, respectively.
(3) 
Total single-family interest income recognized of $1.7 billion for the three months ended June 30, 2017 consists of $1.5 billion of contractual interest and $229 million of effective yield adjustments. Total single-family interest income recognized of $1.8 billion for the three months ended June 30, 2016 consists of $1.5 billion of contractual interest and $331 million of effective yield adjustments. Total single-family interest income recognized of $3.4 billion for the six months ended June 30, 2017 consists of $2.9 billion of contractual interest and $497 million of effective yield adjustments. Total single-family interest income recognized of $3.5 billion for the six months ended June 30, 2016 consists of $2.9 billion of contractual interest and $641 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.
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 June 30, 2017 and 2016, the average term extension of a single-family modified loan was 155 months and 159 months, respectively, and the average interest rate reduction was 0.67 and 0.72 percentage points, respectively. During the six months ended June 30, 2017 and 2016, the average term extension of a single-family modified loan was 154 months and 159 months, respectively, and the average interest rate reduction was 0.80 and 0.73 percentage points, respectively.

Fannie Mae (In conservatorship) Second Quarter 2017 Form 10-Q
76