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SEC Filings

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

Problem Loan Statistics
 
Table 42 provides a comparison of our multifamily serious delinquency rates for loans with and without credit enhancement in our multifamily guaranty book of business. We classify multifamily loans as seriously delinquent when payment is 60 days or more past due. We include the unpaid principal balance of multifamily loans that we own or that back Fannie Mae MBS and any housing bonds for which we provide credit enhancement in the calculation of the multifamily serious delinquency rate.
 
Table 42:  Multifamily Serious Delinquency Rates
 
                                                 
    As of  
    March 31, 2011     December 31, 2010     March 31, 2010  
    Percentage of
    Serious
    Percentage of
    Serious
    Percentage of
    Serious
 
    Book
    Delinquency
    Book
    Delinquency
    Book
    Delinquency
 
    Outstanding     Rate     Outstanding     Rate     Outstanding     Rate  
 
Multifamily loans:
                                               
Credit enhanced
    90 %     0.59 %     89 %     0.67 %     89 %     0.69 %
Non-credit enhanced
    10       1.05       11       1.01       11       1.56  
                                                 
Total multifamily
loans
    100 %     0.64 %     100 %     0.71 %     100 %     0.79 %
                                                 
 
The multifamily serious delinquency rate decreased as of March 31, 2011 compared with both December 31, 2010 and March 31, 2010 as national multifamily market fundamentals continue to improve. Table 43 provides a comparison of our multifamily serious delinquency rates for loans acquired through DUS lenders and loans acquired through non-DUS lenders.
 
Table 43:  Multifamily Concentration Analysis
 
                                                                 
    As of     Percentage of
 
    March 31, 2011     December 31, 2010     March 31, 2010     Multifamily Credit Losses
 
    Percentage
    Serious
    Percentage
    Serious
    Percentage
    Serious
    For the Three Months Ended
 
    of Book
    Delinquency
    of Book
    Delinquency
    of Book
    Delinquency
    March 31,  
    Outstanding     Rate     Outstanding     Rate     Outstanding     Rate     2011     2010  
 
DUS small balance loans(1)
    8 %     0.68 %     8 %     0.55 %     8 %     0.47 %     8 %     12 %
DUS non small balance
loans(2)
    70       0.48       70       0.56       68       0.56       70       72  
Non-DUS small balance loans(1)
    10       1.41       10       1.47       11       1.41       15       11  
Non-DUS non small balance loans(2)
    12       0.88       12       0.97       13       1.62       7       5  
 
 
(1) Loans with original unpaid principal balances less than or equal to $3 million except in high cost markets where they are loans with original unpaid principal balances less than or equal to $5 million.
 
(2) Loans with original unpaid principal balances greater than $3 million except in high cost markets where they are loans with original unpaid principal balances greater than $5 million.
 
The DUS loans in our guaranty book of business have lower delinquency rates when compared with the non-DUS loans in our guaranty book primarily due to the DUS model, which has several features that align our interest with those of the borrowers and lenders. Smaller balance non-DUS loans continue to represent a disproportionate share of delinquencies but they are generally covered by loss sharing arrangements, which limit the credit losses incurred by us.
 
In addition, Arizona, Florida, Georgia, and Ohio, have a disproportionate share of seriously delinquent loans compared with their share of the multifamily guaranty book of business as a result of slow economic recovery in certain areas of these states. These states accounted for 39% of multifamily serious delinquencies but only 10% of the multifamily guaranty book of business.


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