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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 11/02/2018
Entire Document
 
 
MD&A | Retained Mortgage Portfolio


The table below displays the components of our retained mortgage portfolio, measured by unpaid principal balance.
Retained Mortgage Portfolio
 
As of
 
September 30, 2018
 
December 31, 2017
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
Mortgage loans(1)
 
$
118,118

 
 
 
$
146,316

 
Reverse mortgages
 
22,943

 
 
 
26,458

 
Mortgage-related securities:
 
 
 
 
 
 
 
Agency securities(2)
 
34,688

 
 
 
31,719

 
Fannie Mae-wrapped reverse mortgage securities
 
6,171

 
 
 
6,689

 
Ginnie Mae reverse mortgage securities
 
1,882

 
 
 
527

 
Other Fannie Mae-wrapped securities(3)
 
664

 
 
 
3,414

 
Private-label and other securities(3)
 
3,107

 
 
 
2,588

 
Total single-family mortgage-related securities(4)
 
46,512

 
 
 
44,937

 
Total single-family mortgage loans and mortgage-related securities
 
187,573

 
 
 
217,711

 
Multifamily:
 
 
 
 
 
 
 
Mortgage loans(5)
 
3,430

 
 
 
4,591

 
Mortgage-related securities:
 
 
 
 
 
 
 
Agency securities(2)
 
7,709

 
 
 
7,860

 
Commercial mortgage-backed securities (“CMBS”)
 

 
 
 
24

 
Mortgage revenue bonds
 
402

 
 
 
597

 
Total multifamily mortgage-related securities(6)
 
8,111

 
 
 
8,481

 
Total multifamily mortgage loans and mortgage-related securities
 
11,541

 
 
 
13,072

 
Total retained mortgage portfolio
 
$
199,114

 
 
 
$
230,783

 
__________
(1) 
Includes single-family loans classified as troubled debt restructurings (“TDRs”) that were on accrual status of $68.4 billion and $86.3 billion as of September 30, 2018 and December 31, 2017, respectively, and single-family loans on nonaccrual status of $26.5 billion and $33.1 billion as of September 30, 2018 and December 31, 2017, respectively.
(2) 
Includes Fannie Mae, Freddie Mac and Ginnie Mae mortgage-related securities, excluding Fannie Mae-wrapped securities and Ginnie Mae reverse mortgage securities.
(3) 
The increase in private-label and other securities from December 31, 2017 to September 30, 2018 was due to the dissolution in the first quarter of 2018 of a Fannie Mae-wrapped private-label securities trust. The Fannie Mae-wrapped private-label securities had been classified as other Fannie Mae-wrapped securities prior to the dissolution.
(4) 
The fair value of these single-family mortgage-related securities was $47.5 billion and $46.7 billion as of September 30, 2018 and December 31, 2017, respectively.
(5) 
Includes multifamily loans classified as TDRs that were on accrual status of $64 million and $84 million as of September 30, 2018 and December 31, 2017, respectively, and multifamily loans on nonaccrual status of $163 million and $122 million as of September 30, 2018 and December 31, 2017, respectively.
(6) 
The fair value of these multifamily mortgage-related securities was $8.3 billion and $9.0 billion as of September 30, 2018 and December 31, 2017, respectively.
The amount of mortgage assets that we may own is restricted by our senior preferred stock purchase agreement with Treasury, as described in “Business—Conservatorship and Treasury Agreements—Treasury Agreements” in our 2017 Form 10-K. Our retained mortgage portfolio is below the final $250 billion cap under the senior preferred stock purchase agreement that becomes effective on December 31, 2018. We expect the size of our retained mortgage portfolio will continue to decrease in 2018.
In support of our loss mitigation strategy, we purchased $13.6 billion of loans from our single-family MBS trusts in the first nine months of 2018, the substantial majority of which were delinquent. See “MD&ARetained Mortgage Portfolio—Purchases of Loans from Our MBS Trusts” in our 2017 Form 10-K for more information relating to our purchases of loans from MBS trusts.

Fannie Mae Third Quarter 2018 Form 10-Q
18