Print Page  |  Close Window

SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/06/2011
Entire Document
 
Table of Contents

                                                 
    As of December 31, 2010  
    Single-Family     Multifamily     Total  
    Conventional(2)     Government(3)     Conventional(2)     Government(3)     Conventional(2)     Government(3)  
    (Dollars in millions)  
 
Mortgage assets:
                                               
Mortgage loans(4)
  $ 2,766,870     $ 52,577     $ 170,074     $ 476     $ 2,936,944     $ 53,053  
Fannie Mae MBS(5)(7)
    5,961       1,586             2       5,961       1,588  
Agency mortgage-related securities(5)(6)
    17,291       1,506             24       17,291       1,530  
Mortgage revenue bonds(5)
    2,197       1,190       7,449       1,689       9,646       2,879  
Other mortgage-related securities(5)
    43,634       1,657       25,052       15       68,686       1,672  
                                                 
Total mortgage assets
    2,835,953       58,516       202,575       2,206       3,038,528       60,722  
Unconsolidated Fannie Mae MBS(5)(7)
    2,230       17,238       37       1,818       2,267       19,056  
Other credit guarantees(8)
    15,529       3,096       16,601       393       32,130       3,489  
                                                 
Mortgage credit book of business
  $ 2,853,712     $ 78,850     $ 219,213     $ 4,417     $ 3,072,925     $ 83,267  
                                                 
Guaranty book of business
  $ 2,790,590     $ 74,497     $ 186,712     $ 2,689     $ 2,977,302     $ 77,186  
                                                 
 
 
(1) Based on unpaid principal balance.
 
(2) Refers to mortgage loans and mortgage-related securities that are not guaranteed or insured by the U.S. government or any of its agencies.
 
(3) Refers to mortgage loans and mortgage-related securities guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies.
 
(4) Includes unscheduled borrower principal payments.
 
(5) Excludes unscheduled borrower principal payments.
 
(6) Consists of mortgage-related securities issued by Freddie Mac and Ginnie Mae.
 
(7) The principal balance of resecuritized Fannie Mae MBS is included only once in the reported amount.
 
(8) Includes single-family and multifamily credit enhancements that we have provided and that are not otherwise reflected in the table.
 
Single-Family Mortgage Credit Risk Management
 
Our strategy in managing single-family mortgage credit risk consists of four primary components: (1) our acquisition and servicing policies and underwriting and servicing standards, including the use of credit enhancements; (2) portfolio diversification and monitoring; (3) management of problem loans; and (4) REO management. These strategies, which we discuss in detail below, may increase our expenses and may not be effective in reducing our credit-related expenses or credit losses. We provide information on our credit-related expenses and credit losses in “Consolidated Results of Operations—Credit-Related Expenses.”
 
The credit risk profile of our single-family mortgage credit book of business is influenced by, among other things, the credit profile of the borrower, features of the loan, loan product type, the type of property securing the loan and the housing market and general economy. We focus more on loans that we believe pose a higher risk of default, which typically have been loans associated with higher mark-to-market LTV ratios, loans to borrowers with lower FICO credit scores and certain higher risk loan product categories, such as Alt-A loans. These and other factors affect both the amount of expected credit loss on a given loan and the sensitivity of that loss to changes in the economic environment.
 
The credit statistics reported below, unless otherwise noted, pertain generally to the portion of our single-family guaranty book of business for which we have access to detailed loan-level information, which

57