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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 | Allowance for Loan Losses


The following table displays the allowance for loan losses and recorded investment in our HFI loans by impairment or allowance methodology and portfolio segment, excluding loans for which we have elected the fair value option.
 
As of
 
September 30, 2018
 
December 31, 2017
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Allowance for loan losses by segment:
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
(14,735
)
 
$
(44
)
 
$
(14,779
)
 
$
(17,247
)
 
$
(42
)
 
$
(17,289
)
Collectively reserved loans
(701
)
 
(183
)
 
(884
)
 
(1,602
)
 
(193
)
 
(1,795
)
Total allowance for loan losses
$
(15,436
)
 
$
(227
)
 
$
(15,663
)
 
$
(18,849
)
 
$
(235
)
 
$
(19,084
)
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans by segment:
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
122,847

 
$
544

 
$
123,391

 
$
135,191

 
$
590

 
$
135,781

Collectively reserved loans
2,828,815

 
285,410

 
3,114,225

 
2,787,783

 
266,411

 
3,054,194

Total recorded investment in loans
$
2,951,662

 
$
285,954

 
$
3,237,616

 
$
2,922,974

 
$
267,001

 
$
3,189,975

__________
(1) 
Includes acquired credit-impaired loans.
5.  Investments in Securities
Trading Securities
Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value gains (losses), net” in our condensed consolidated statements of operations and comprehensive income. The following table displays our investments in trading securities.
 
As of
 
September 30, 2018
 
December 31, 2017
 
(Dollars in millions)
 
Mortgage-related securities:
 
 
 
 
 
 
 
Fannie Mae(1)
 
$
1,469

 
 
 
$
3,876

 
Other agency
 
3,642

 
 
 
1,118

 
Alt-A and subprime private-label securities(1)
 
1,367

 
 
 
453

 
Commercial mortgage-backed securities (“CMBS”)
 

 
 
 
9

 
Mortgage revenue bonds
 
1

 
 
 
1

 
Total mortgage-related securities
 
6,479

 
 
 
5,457

 
Non-mortgage-related securities:
 
 
 
 
 
 
 
U.S. Treasury securities
 
37,328

 
 
 
29,222

 
Other securities
 
94

 
 
 

 
Total non-mortgage-related securities
 
37,422

 
 
 
29,222

 
Total trading securities
 
$
43,901

 
 
 
$
34,679

 
__________
(1) 
The increase in Alt-A and subprime private-label 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 Fannie Mae mortgage-related securities prior to the dissolution.

Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
71