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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 | Business Segments


Multifamily Loss Reserves
The table below summarizes the changes in our multifamily loss reserves.
Multifamily Loss Reserves
 
 
 
 
 
 
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(Dollars in millions)
Changes in loss reserves:
 
 
 
 
 
 
 
Beginning balance
$
(218
)
 
$
(189
)
 
$
(245
)
 
$
(196
)
Benefit (provision) for credit losses
(16
)
 
(45
)
 
6

 
(37
)
Charge-offs
1

 
3

 
6

 
3

Recoveries
(3
)
 
(2
)
 
(3
)
 
(3
)
Ending balance
$
(236
)
 
$
(233
)
 
$
(236
)
 
$
(233
)
 
 
 
 
 
 
 
 
 
 
 
As of
 
September 30, 2018
 
December 31, 2017
Loss reserves as a percentage of multifamily guaranty book of business
 
0.08
%
 
0.09
%
Troubled Debt Restructurings and Nonaccrual Loans
The table below displays the composition of multifamily loans classified as TDRs that are on accrual status and multifamily loans on nonaccrual status. The table includes our recorded investment in HFI and HFS multifamily mortgage loans. For information on the impact of TDRs and other individually impaired loans on our allowance for loan losses, see “Note 3, Mortgage Loans.”
Multifamily Troubled Debt Restructurings on Accrual Status and Nonaccrual Loans
 
 
 
 
As of
 
September 30, 2018
 
December 31, 2017
 
 
(Dollars in millions)
TDRs on accrual status
$
63

 
$
87

 
Nonaccrual loans
554

 
424

 
Total TDRs on accrual status and nonaccrual loans
$
617

 
$
511

 
 
For the Nine Months
 
 
Ended September 30,
 
 
2018
 
2017
 
 
(Dollars in millions)
 
Interest related to on-balance sheet TDRs on accrual status and nonaccrual loans:
 
 
 
 
Interest income forgone(1)
$
20

 
$
12

 
Interest income recognized(2)
2

 
6

 
__________
(1) 
Represents the amount of interest income we did not recognize, but would have recognized during the period for nonaccrual loans and TDRs on accrual status as of the end of each period had the loans performed according to their original contractual terms.
(2) 
Represents interest income recognized during the period, including the amortization of any deferred cost basis adjustments, for loans classified as either nonaccrual loans or TDRs on accrual status as of the end of each period. Includes primarily amounts accrued while the loans were performing and cash payments received on nonaccrual loans.

Fannie Mae Third Quarter 2018 Form 10-Q
42