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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 11/02/2018
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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
 
September 30, 2018
 
December 31, 2017
 
 
 
(Dollars in millions)
Nonrecurring fair value measurements:
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale, at lower of cost or fair value
Single Vendor
 
 
$
623

 
 
 
$
1,880

 
 
Consensus
 
 
1,623

 
 
 
1,113

 
 
Various
 
 
1

 
 
 

 
Total mortgage loans held for sale, at lower of cost or fair value
 
 
 
2,247

 
 
 
2,993

 
Single-family mortgage loans held for investment, at amortized cost
Internal Model
 
 
770

 
 
 
1,623

 
Multifamily mortgage loans held for investment, at amortized cost
Asset Manager Estimate
 
 
143

 
 
 
163

 
 
Various
 
 
22

 
 
 
32

 
Total multifamily mortgage loans held for investment, at amortized cost
 
 
 
165

 
 
 
195

 
Acquired property, net:(1)
 
 
 
 
 
 
 
 
 
Single-family
Accepted Offers
 
 
175

 
 
 
218

 
 
Appraisals
 
 
431

 
 
 
438

 
 
Walk Forwards
 
 
149

 
 
 
222

 
 
Internal Model
 
 
270

 
 
 
319

 
 
Various
 
 
38

 
 
 
113

 
Total single-family
 
 
 
1,063

 
 
 
1,310

 
Multifamily
Various
 
 
50

 
 
 
19

 
Other assets
Various
 
 

 
 
 
2

 
Total nonrecurring assets at fair value
 
 
 
$
4,295

 
 
 
$
6,142

 

__________
(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 September 30, 2018, these methodologies comprised approximately 78% of our valuations, while accepted offers comprised approximately 17% of our valuations. Based on the number of properties measured as of December 31, 2017, these methodologies comprised approximately 77% of our valuations, while accepted offers comprised approximately 18% of our valuations.
We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. See “Note 15, Fair Value” in our 2017 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. We made no material changes to the valuation control processes or the valuation techniques for the nine months ended September 30, 2018.

Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
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