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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

FANNIE MAE
(In conservatorship)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(UNAUDITED)
 
                                                 
    For the Six 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
  $ 47,377     $ 12,603     $ 59,980                          
Provision for loan losses
    10,197       6,092       16,289                          
Charge-offs(1)
    (10,964 )     (1,206 )     (12,170 )                        
Recoveries
    2,349       1,502       3,851                          
Transfers(2)
    5,912       (5,912 )                              
Net reclassifications(3)
    78       (1 )     77                          
                                                 
Ending balance
  $ 54,949     $ 13,078     $ 68,027                          
                                                 
Multifamily allowance for loan losses:
                                               
Beginning balance
  $ 1,153     $ 423     $ 1,576                          
Provision for loan losses
    2       98       100                          
Charge-offs(1)
    (201 )           (201 )                        
Transfers(2)
    57       (57 )                              
Net reclassifications(3)
    6       (2 )     4                          
                                                 
Ending balance
  $ 1,017     $ 462     $ 1,479                          
                                                 
Total allowance for loan losses:
                                               
Beginning balance
  $ 48,530     $ 13,026     $ 61,556     $ 8,078     $ 1,847     $ 9,925  
Adoption of new accounting standards
                            43,576       43,576  
Total provision for loan losses
    10,199       6,190       16,389       8,864       7,370       16,234  
Charge-offs(1)
    (11,165 )     (1,206 )     (12,371 )     (6,151 )     (5,402 )     (11,553 )
Recoveries
    2,349       1,502       3,851       162       568       730  
Transfers(2)
    5,969       (5,969 )           36,475       (36,475 )      
Net reclassifications(3)
    84       (3 )     81       (4,584 )     6,254       1,670  
                                                 
Ending balance(4)(5)
  $ 55,966     $ 13,540     $ 69,506     $ 42,844     $ 17,738     $ 60,582  
                                                 
 
 
(1) Total charge-offs include accrued interest of $438 million and $611 million for the three months ended June 30, 2011 and 2010, respectively and $824 million and $1.2 billion for the six months ended June 30, 2011 and 2010, respectively. Single-family charge-offs include accrued interest of $423 million and $800 million for the three and six months ended June 30, 2011, respectively. Multifamily charge-offs include accrued interest of $15 million and $24 million for the three and six months ended June 30, 2011, respectively.
 
(2) Includes transfers from trusts for delinquent loan purchases.
 
(3) Represents reclassification of amounts recorded in provision for loan losses and charge-offs that relate to allowance for accrued interest receivable and preforeclosure property taxes and insurance receivable from borrowers.
 
(4) Total allowance for loan losses includes $414 million and $637 million as of June 30, 2011 and 2010, respectively, for acquired credit-impaired loans.

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