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SEC Filings

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

 
Table 43:  Multifamily Serious Delinquency Rates
 
                                                 
    As of  
    June 30, 2011     December 31, 2010     June 30, 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 %     0.43 %     89 %     0.67 %     89 %     0.70 %
Non-credit enhanced
    10       0.80       11       1.01       11       1.62  
                                                 
Total multifamily loans
    100 %     0.46 %     100 %     0.71 %     100 %     0.80 %
                                                 
 
The multifamily serious delinquency rate decreased as of June 30, 2011 compared with both December 31, 2010 and June 30, 2010 as national multifamily market fundamentals continued to improve. Table 44 provides a comparison of our multifamily serious delinquency rates for loans acquired through DUS lenders and loans acquired through non-DUS lenders.
 
Table 44:  Multifamily Concentration Analysis
 
                                                                 
    As of   Percentage of
    June 30, 2011   December 31, 2010   June 30, 2010   Multifamily Credit Losses
    Percentage
  Serious
  Percentage
  Serious
  Percentage
  Serious
  For the Six Months Ended
    of Book
  Delinquency
  of Book
  Delinquency
  of Book
  Delinquency
  June 30,
    Outstanding   Rate   Outstanding   Rate   Outstanding   Rate   2011   2010
 
DUS small balance loans(1)
    8 %     0.50 %     8 %     0.55 %     8 %     0.42 %     6 %     8 %
DUS non small balance loans(2)
    71       0.31       70       0.56       68       0.62       76       81  
Non-DUS small balance loans(1)
    9       1.36       10       1.47       11       1.40       12       8  
Non-DUS non small balance loans(2)
    12       0.65       12       0.97       13       1.52       6       3  
 
 
(1) Loans with original unpaid principal balances less than or equal to $3 million as well as loans in high cost markets with original unpaid principal balances less than or equal to $5 million.
 
(2) Loans with original unpaid principal balances greater than $3 million as well as loans in high cost markets 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, Florida 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 24% of multifamily serious delinquencies but only 6% of the multifamily guaranty book of business as of June 30, 2011.
 
REO Management
 
Foreclosure and REO activity affect the level of credit losses. Table 45 compares our held for sale multifamily REO balances for the periods indicated.


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