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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 | Segment Reporting


__________
(1) 
Net interest income primarily consists of guaranty fees received as compensation for assuming and managing the credit risk on loans underlying Fannie Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the respective business segment’s mortgage assets in our retained mortgage portfolio and the interest expense associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis point increase in guaranty fees pursuant to the TCCA, the incremental revenue from which is remitted to Treasury and not retained by us.
(2) 
Single-Family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services, and income resulting from settlement agreements resolving certain claims relating to private-label securities we purchased or that we have guaranteed. Multifamily fee and other income consists of fees associated with multifamily business activities, including yield maintenance income.
(3) 
Investment gains and losses primarily consists of gains and losses on the sale of mortgage assets for the respective business segment.
(4) 
Single-Family fair value gains and losses primarily consist of fair value gains and losses on risk management and mortgage commitment derivatives, trading securities and other financial instruments associated with our single-family total book of business. Multifamily fair value gains and losses primarily consist of fair value gains and losses on MBS commitment derivatives, trading securities and other financial instruments associated with our multifamily total book of business.
(5) 
Credit-related income or expense is based on the guaranty book of business of the respective business segment and consists of the applicable segment’s benefit or provision for credit losses and foreclosed property expense on loans underlying the segment’s guaranty book of business.
(6) 
Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA.
10.  Equity
The following table displays the activity in other comprehensive income (loss), net of tax, by major categories.
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(Dollars in millions)

Net income
$
4,011

 
$
3,023

 
$
12,729

 
$
8,996

Other comprehensive income (loss), net of tax effect:
 
 
 
 
 
 
 
Changes in net unrealized gains (losses) on AFS securities (net of tax of $8 and $25, respectively, for the three months ended and net of tax of $22 and $36, respectively, for the nine months ended)
(31
)
 
47

 
(84
)
 
67

Reclassification adjustment for gains on AFS securities and OTTI recognized in net income (net of tax of $1 and $12, respectively for the three months ended and net of tax of $71 and $63, respectively, for the nine months ended)
(2
)
 
(20
)
 
(265
)
 
(113
)
Other
(3
)
 
(2
)
 
(8
)
 
(6
)
Total other comprehensive income (loss)
(36
)
 
25

 
(357
)
 
(52
)
Total comprehensive income
$
3,975

 
$
3,048

 
$
12,372

 
$
8,944


The following table displays our accumulated other comprehensive income, net of tax, by major categories.
 
As of
 
September 30,
 
December 31,
 
2018
 
2017
 
(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded OTTI
 
$
34

 
 
 
$
87

 
Net unrealized gains on AFS securities for which we have recorded OTTI
 
237

 
 
 
423

 
Other
 
42

 
 
 
43

 
Accumulated other comprehensive income
 
$
313

 
 
 
$
553

 


Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
80