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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, 2010  
          Other Activity/
       
    Business Segments     Reconciling Items        
    Single-
          Capital
    Consolidated
    Eliminations/
    Total
 
    Family     Multifamily     Markets     Trusts(1)     Adjustments(2)     Results  
    (Dollars in millions)  
 
Net interest income (expense)
  $ (3,330 )   $ 9     $ 6,606     $ 2,521     $ 1,190 (3)   $ 6,996  
Benefit (provision) for loan losses
    (16,264 )     30                         (16,234 )
                                                 
Net interest income (expense) after provision for loan losses
    (19,594 )     39       6,606       2,521       1,190       (9,238 )
Guaranty fee income (expense)
    3,563       389       (639 )     (2,327 )(4)     (880 )(4)     106 (4)
Investment gains (losses), net
    4       (1 )     1,571       (183 )     (1,202 )(5)     189  
Net other-than-temporary impairments
                (373 )                 (373 )
Fair value losses, net
                (555 )     (24 )     (823 )(6)     (1,402 )
Debt extinguishment losses, net
                (183 )     (100 )           (283 )
Losses from partnership investments
          (80 )                 (4 )     (84 )(7)
Fee and other income (expense)
    132       63       240       (14 )           421  
Administrative expenses
    (826 )     (192 )     (257 )                 (1,275 )
Benefit (provision) for guaranty losses
    (84 )     51                         (33 )
Foreclosed property expense
    (449 )     (19 )                       (468 )
Other income (expenses)
    (431 )     (17 )     118             (40 )     (370 )
                                                 
Income (loss) before federal income taxes
    (17,685 )     233       6,528       (127 )     (1,759 )     (12,810 )
Benefit (provision) for federal income taxes
    52       (15 )     21                   58  
                                                 
Net income (loss)
    (17,633 )     218       6,549       (127 )     (1,759 )     (12,752 )
Less: Net loss attributable to noncontrolling interests
                            4 (8)     4  
                                                 
Net income (loss) attributable to Fannie Mae
  $ (17,633 )   $ 218     $ 6,549     $ (127 )   $ (1,755 )   $ (12,748 )
                                                 
 
 
(1) Represents activity related to the assets and liabilities of consolidated trusts in our condensed consolidated balance sheets.
 
(2) Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our condensed consolidated results.
 
(3) Represents the amortization expense of cost basis adjustments on securities that we own in our portfolio that on a GAAP basis are eliminated.
 
(4) Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee income is included in fee and other income in our condensed consolidated statements of operations and comprehensive loss.
 
(5) Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale securities that are issued by consolidated trusts and retained in the Capital Markets portfolio. The adjustment also includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio securitization transactions that do not qualify for sale accounting under GAAP.
 
(6) Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are retained in the Capital Markets portfolio.
 
(7) Gains (losses) from partnership investments are included in other expenses in our condensed consolidated statements of operations and comprehensive loss.

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