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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

FANNIE MAE
(In conservatorship)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(UNAUDITED)
 
Cash and Cash Equivalents and Statements of Cash Flows
 
During 2010, we identified certain servicer and consolidation related transactions that were not appropriately reflected in our condensed consolidated statements of cash flows for the six months ended June 30, 2010. As a result, our condensed consolidated statement of cash flows for the six months ended June 30, 2010 includes a $2.5 billion adjustment to decrease net cash used in operating activities, a $4.6 billion adjustment to decrease net cash provided by investing activities, primarily related to “Proceeds from sales of available-for-sale securities,” “Purchases of loans held for investment,” and “Proceeds from repayments of loans held for investment of consolidated trusts” and a $2.1 billion adjustment to decrease net cash used in financing activities, primarily related to “Proceeds from issuance of long-term debt of consolidated trusts.” We evaluated the effects of these misstatements, both quantitatively and qualitatively, on our previously reported condensed consolidated statements of cash flows for the six months ended June 30, 2010 and concluded that this prior period was not materially misstated.
 
Collateral
 
Cash Collateral
 
The following table displays cash collateral accepted and pledged as of June 30, 2011 and December 31, 2010.
 
                 
    As of  
    June 30, 2011     December 31, 2010  
    (Dollars in millions)  
 
Cash collateral accepted(1)
  $ 2,671     $ 3,101  
                 
Cash collateral pledged
  $ 5,599     $ 5,884  
Cash collateral pledged related to derivatives activities
    2,907       3,453  
                 
Total cash collateral pledged
  $ 8,506     $ 9,337  
                 
 
 
(1) Includes restricted cash of $2.5 billion as of both June 30, 2011 and December 31, 2010.
 
Non-Cash Collateral
 
The following table displays non-cash collateral pledged and accepted as of June 30, 2011 and December 31, 2010.
 
                 
    As of
    June 30, 2011   December 31, 2010
    (Dollars in millions)
 
Non-cash collateral pledged where the secured party has the right to sell or repledge:
               
Held-for-investment loans of consolidated trusts
  $ 460     $ 2,522  
                 
Non-cash collateral accepted with the right to sell or repledge(1)
  $ 17,011     $ 7,500  
Non-cash collateral accepted without the right to sell or repledge
    8,587       6,744  
 
 
(1) None of this collateral was sold or repledged as of June 30, 2011 and December 31, 2010.
 
Additionally, we provide early funding to lenders on a collateralized basis and account for the advances as secured lending arrangements in “Other assets” in our condensed consolidated balance sheets. These amounts totaled $3.8 billion as of June 30, 2011 and $7.2 billion at December 31, 2010.
 
Our liability to third-party holders of Fannie Mae MBS that arises as the result of a consolidation of a securitization trust is collateralized by the underlying loans and/or mortgage-related securities.


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