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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 08/05/2011
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Table of Contents

Single-Family Business Results
 
Table 16 summarizes the financial results of our Single-Family business for the periods indicated. The primary sources of revenue for our Single-Family business are guaranty fee income and fee and other income. Expenses primarily include credit-related expenses, net interest expense and administrative expenses.
 
Table 16:  Single-Family Business Results
 
                                                 
    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2011     2010     Variance     2011     2010     Variance  
    (Dollars in millions)  
 
Statement of operations data:
                                               
Net interest expense
  $ (680 )   $ (1,385 )   $ 705     $ (1,578 )   $ (3,330 )   $ 1,752  
Guaranty fee income(1)
    1,880       1,795       85       3,751       3,563       188  
Credit-related expenses(2)
    (5,933 )     (4,871 )     (1,062 )     (17,039 )     (16,797 )     (242 )
Other expenses(3)
    (372 )     (608 )     236       (958 )     (1,121 )     163  
                                                 
Loss before federal income taxes
    (5,105 )     (5,069 )     (36 )     (15,824 )     (17,685 )     1,861  
Benefit for federal income taxes
    109       1       108       107       52       55  
                                                 
Net loss attributable to Fannie Mae
  $ (4,996 )   $ (5,068 )   $ 72     $ (15,717 )   $ (17,633 )   $ 1,916  
                                                 
Other key performance data:
                                               
Single-family effective guaranty fee rate (in basis points)(4)
    26.1       25.0               26.1       24.7          
Single-family average charged guaranty fee on new acquisitions (in basis points)(5)
    31.6       27.3               28.0       27.1          
Average single-family guaranty book of business(6)
  $ 2,886,509     $ 2,871,208             $ 2,879,369     $ 2,884,767          
Single-family Fannie Mae MBS issues(7)
  $ 102,654     $ 111,457             $ 269,327     $ 235,814          
 
 
(1) Guaranty fee income is included in fee and other income in our condensed consolidated statements of operations and comprehensive loss.
 
(2) Consists of the provision for loan losses, provision for guaranty losses and foreclosed property expense (income).
 
(3) Consists of investment gains and losses, fair value losses, fee and other income, administrative expenses and other expenses.
 
(4) Calculated based on annualized Single-Family segment guaranty fee income divided by the average single-family guaranty book of business, expressed in basis points.
 
(5) Calculated based on the average contractual fee rate for our single-family guaranty arrangements entered into during the period plus the recognition of any upfront cash payments ratably over an estimated average life, expressed in basis points.
 
(6) Consists of single-family mortgage loans held in our mortgage portfolio, single-family mortgage loans held by consolidated trusts, single-family Fannie Mae MBS issued from unconsolidated trusts held by either third parties or within our retained portfolio, and other credit enhancements that we provide on single-family mortgage assets. Excludes non-Fannie Mae mortgage-related securities held in our investment portfolio for which we do not provide a guaranty.
 
(7) Reflects unpaid principal balance of Fannie Mae MBS issued and guaranteed by the Single-Family segment during the period. Includes Housing Finance Agency (HFA) new issue bond program issuances of $3.1 billion for the first half of 2010. There were no HFA new issue bond program issuances in 2011 or the second quarter of 2010.


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