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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
 
 
Notes to Condensed Consolidated Financial Statements | Mortgage Loans


 
For the Nine Months Ended September 30,
 
2018
 
2017
 
Average Recorded Investment
 
Total Interest Income Recognized
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized
 
Interest Income Recognized on a Cash Basis
 
(Dollars in millions)
Individually impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
Single-family:
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
Primary
 
$
86,842

 
 
 
$
2,697

 
 
 
$
302

 
 
 
$
94,594

 
 
 
$
2,853

 
 
 
$
240

 
Government
 
277

 
 
 
15

 
 
 

 
 
 
295

 
 
 
7

 
 
 

 
Alt-A
 
19,081

 
 
 
610

 
 
 
45

 
 
 
24,233

 
 
 
717

 
 
 
42

 
Other
 
7,140

 
 
 
201

 
 
 
15

 
 
 
9,480

 
 
 
247

 
 
 
14

 
Total single-family
 
113,340

 
 
 
3,523

 
 
 
362

 
 
 
128,602

 
 
 
3,824

 
 
 
296

 
Multifamily
 
244

 
 
 
2

 
 
 

 
 
 
271

 
 
 
7

 
 
 

 
Total individually impaired loans with related allowance recorded
 
113,584

 
 
 
3,525

 
 
 
362

 
 
 
128,873

 
 
 
3,831

 
 
 
296

 
With no related allowance recorded:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
15,039

 
 
 
740

 
 
 
88

 
 
 
15,173

 
 
 
835

 
 
 
71

 
Government
 
58

 
 
 
3

 
 
 

 
 
 
61

 
 
 
2

 
 
 

 
Alt-A
 
2,710

 
 
 
173

 
 
 
13

 
 
 
3,041

 
 
 
205

 
 
 
10

 
Other
 
848

 
 
 
44

 
 
 
4

 
 
 
1,023

 
 
 
65

 
 
 
3

 
Total single-family
 
18,655

 
 
 
960

 
 
 
105

 
 
 
19,298

 
 
 
1,107

 
 
 
84

 
Multifamily
 
333

 
 
 
11

 
 
 

 
 
 
294

 
 
 
16

 
 
 

 
Total individually impaired loans with no related allowance recorded
 
18,988

 
 
 
971

 
 
 
105

 
 
 
19,592

 
 
 
1,123

 
 
 
84

 
Total individually impaired loans
 
$
132,572

 
 
 
$
4,496

 
 
 
$
467

 
 
 
$
148,465

 
 
 
$
4,954

 
 
 
$
380

 
__________
(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 classified as TDRs with a recorded investment of $122.4 billion and $134.7 billion as of September 30, 2018 and December 31, 2017, respectively. Includes multifamily loans classified as TDRs with a recorded investment of $210 million and $185 million as of September 30, 2018 and December 31, 2017, respectively.
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. In addition to formal loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify loans to certain borrowers who have received bankruptcy relief as TDRs.
The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. During the three and nine months ended September 30, 2018, the average term extension of a single-family modified loan was 98 months and 104 months, respectively, and the average interest rate reduction was 0.14 and 0.23 percentage points, respectively. During the three and nine months ended September 30, 2017, the average term extension of a single-family modified loan was 156 months and 155 months, respectively, and the average interest rate reduction was 0.35 and 0.66 percentage points, respectively.

Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
66