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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 | Investments in Securities


Maturity Information
The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time.
 
As of September 30, 2018
 
Total Amortized Cost
 
Total
Fair
Value
 
One Year or Less
 
After One Year Through Five Years
 
After Five Years Through Ten Years
 
After Ten Years
 
 
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
(Dollars in millions)
Fannie Mae
 
$
1,808

 
 
$
1,828

 
 
$

 
 
$

 
 
$
13

 
 
$
13

 
 
$
77

 
 
$
81

 
 
$
1,718

 
 
$
1,734

Other agency
 
256

 
 
272

 
 
2

 
 
1

 
 
9

 
 
10

 
 
42

 
 
45

 
 
203

 
 
216

Alt-A and subprime private-label securities
 
337

 
 
617

 
 

 
 

 
 

 
 

 
 

 
 

 
 
337

 
 
617

Mortgage revenue bonds
 
454

 
 
464

 
 
3

 
 
4

 
 
33

 
 
33

 
 
61

 
 
62

 
 
357

 
 
365

Other mortgage-related securities
 
339

 
 
356

 
 

 
 

 
 

 
 

 
 
7

 
 
6

 
 
332

 
 
350

Total
 
$
3,194

 
 
$
3,537

 
 
$
5

 
 
$
5

 
 
$
55

 
 
$
56

 
 
$
187

 
 
$
194

 
 
$
2,947

 
 
$
3,282


6 Financial Guarantees
We recognize a guaranty obligation for our obligation to stand ready to perform on our guarantees to unconsolidated trusts and other guaranty arrangements. These off-balance sheet guarantees expose us to credit losses primarily relating to the unpaid principal balance of our unconsolidated Fannie Mae MBS and other financial guarantees. The remaining contractual terms of our guarantees range from 1 day to 34 years; however, the actual term of each guaranty may be significantly less than the contractual term based on the prepayment characteristics of the related mortgage loans. The following table displays our maximum exposure, guaranty obligation recognized in our condensed consolidated balance sheets, and the maximum potential recovery from third parties through available credit enhancements and recourse related to our financial guarantees.
 
As of
 
September 30, 2018
 
December 31, 2017
 
Maximum Exposure
 
Guaranty Obligation
 
Maximum Recovery(1)
 
Maximum Exposure
 
Guaranty Obligation
 
Maximum Recovery(1)
 
(Dollars in millions)
Unconsolidated Fannie Mae MBS
$
7,485

 
$
31

 
$
6,930

 
$
10,876

 
$
127

 
$
7,340

Other guaranty arrangements(2)
14,024

 
131

 
2,399

 
14,265

 
131

 
2,404

Total
$
21,509

 
$
162

 
$
9,329

 
$
25,141

 
$
258

 
$
9,744

__________
(1) 
Recoverability of such credit enhancements and recourse is subject to, among other factors, our mortgage insurers’ and financial guarantors’ ability to meet their obligations to us. For information on our mortgage insurers and financial guarantors, see “Note 13, Concentrations of Credit Risk” in our 2017 Form 10-K and “Note 11, Concentrations of Credit Risk” in this report.
(2) 
Primarily consists of credit enhancements and long-term standby commitments.

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