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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)
 
the loan was on accrual status. The allowance for loan losses is calculated based on our estimate of incurred losses as of the balance sheet date. Determining the adequacy of our allowance for loan losses is complex and requires judgment about the effect of matters that are inherently uncertain.
 
Allowance for Loan Losses
 
The following table displays changes in both single-family and multifamily allowance for loan losses for the three and six months ended June 30, 2011 and total allowance for loan losses for the three and six months ended June 30, 2011 and 2010.
 
                                                         
    For the Three Months Ended June 30,        
    2011     2010        
    Of
    Of
          Of
    Of
             
    Fannie
    Consolidated
          Fannie
    Consolidated
             
    Mae     Trusts     Total     Mae     Trusts     Total        
    (Dollars in millions)  
 
Single-family allowance for loan losses:
                                                       
Beginning balance
  $ 52,671     $ 13,413     $ 66,084                                  
Provision for loan losses
    2,954       2,723       5,677                                  
Charge-offs(1)
    (5,341 )     (758 )     (6,099 )                                
Recoveries
    1,819       550       2,369                                  
Transfers(2)
    2,750       (2,750 )                                      
Net reclassifications(3)
    96       (100 )     (4 )                                
                                                         
Ending balance
  $ 54,949     $ 13,078     $ 68,027                                  
                                                         
Multifamily allowance for loan losses:
                                                       
Beginning balance
  $ 1,037     $ 436     $ 1,473                                  
Provision for loan losses
    86       39       125                                  
Charge-offs(1)
    (119 )           (119 )                                
Transfers(2)
    12       (12 )                                      
Net reclassifications(3)
    1       (1 )                                      
                                                         
Ending balance
  $ 1,017     $ 462     $ 1,479                                  
                                                         
Total allowance for loan losses:
                                                       
Beginning balance
  $ 53,708     $ 13,849     $ 67,557     $ 25,675     $ 34,894     $ 60,569          
Total provision for loan losses
    3,040       2,762       5,802       2,593       1,702       4,295          
Charge-offs(1)
    (5,460 )     (758 )     (6,218 )     (4,446 )     (1,947 )     (6,393 )        
Recoveries
    1,819       550       2,369       65       291       356          
Transfers(2)
    2,762       (2,762 )           22,620       (22,620 )              
Net reclassifications(3)
    97       (101 )     (4 )     (3,663 )     5,418       1,755          
                                                         
Ending balance(4)(5)
  $ 55,966     $ 13,540     $ 69,506     $ 42,844     $ 17,738     $ 60,582          
                                                         
 


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