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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

FANNIE MAE
(In conservatorship)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(UNAUDITED)
 
instruments. As a result, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities.
 
                                 
    As of  
    March 31, 2011     December 31, 2010  
    Carrying
    Estimated
    Carrying
    Estimated
 
    Value     Fair Value     Value     Fair Value  
    (Dollars in millions)  
 
Financial assets:
                               
Cash and cash equivalents(1)
  $ 56,561     $ 56,561     $ 80,975     $ 80,975  
Federal funds sold and securities purchased under agreements to resell or similar arrangements
    26,250       26,250       11,751       11,751  
Trading securities
    57,035       57,035       56,856       56,856  
Available-for-sale securities
    89,613       89,613       94,392       94,392  
Mortgage loans held for sale
    1,414       1,458       915       915  
Mortgage loans held for investment, net of allowance for loan losses:
                               
Of Fannie Mae
    348,644       313,172       358,698       319,367  
Of consolidated trusts
    2,599,999       2,618,736       2,564,107       2,610,145  
                                 
Mortgage loans held for investment
    2,948,643       2,931,908       2,922,805       2,929,512  
Advances to lenders
    3,091       2,940       7,215       6,990  
Derivative assets at fair value
    279       279       1,137       1,137  
Guaranty assets and buy-ups
    459       899       458       814  
                                 
Total financial assets
  $ 3,183,345     $ 3,166,943     $ 3,176,504     $ 3,183,342  
                                 
Financial liabilities:
                               
Federal funds purchased and securities sold under agreements to repurchase
  $ 25     $ 25     $ 52     $ 51  
Short-term debt:
                               
Of Fannie Mae
    147,092       147,133       151,884       151,974  
Of consolidated trusts
    5,156       5,156       5,359       5,359  
Long-term debt:
                               
Of Fannie Mae
    614,095       633,150       628,160       649,684  
Of consolidated trusts
    2,442,433       2,530,474       2,411,597       2,514,929  
Derivative liabilities at fair value
    941       941       1,715       1,715  
Guaranty obligations
    760       3,427       769       3,854  
                                 
Total financial liabilities
  $ 3,210,502     $ 3,320,306     $ 3,199,536     $ 3,327,566  
                                 
 
 
(1) Includes restricted cash of $36.7 billion and $63.7 billion as of March 31, 2011 and December 31, 2010, respectively.
 
The following are valuation techniques for items not subject to the fair value hierarchy either because they are not measured at fair value other than for the purpose of the above table or because they are only measured at fair value at inception.
 
Financial Instruments for which fair value approximates carrying value—We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash and cash equivalents, federal funds and securities sold/purchased under agreements to repurchase/resell (exclusive of dollar roll repurchase transactions) and the majority of advances to lenders.
 
Advances to Lenders—The carrying value for the majority of our advances to lenders approximates the fair value due to the short-term nature of the specific instruments. Other instruments include loans for which the


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