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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)
 
                                                 
                            For the
    For the
 
                            Three Months
    Six Months
 
    Fair Value Measurements
    Ended
    Ended
 
    For the Six Months Ended June 30, 2010     June 30, 2010     June 30, 2010  
    Quoted
                               
    Prices in
                               
    Active
    Significant
                         
    Markets for
    Other
    Significant
                   
    Identical
    Observable
    Unobservable
    Estimated
             
    Assets
    Inputs
    Inputs
    Fair
    Total
    Total
 
    (Level 1)     (Level 2)     (Level 3)     Value     Losses     Losses  
    (Dollars in millions)  
 
Assets:
                                               
Mortgage loans held for sale, at lower of cost or fair value
  $     $ 6,869     $ 540     $ 7,409 (1)(4)   $ (21 )   $ (90 )(4)
Single-family mortgage loans held for investment, at amortized cost:
                                               
Of Fannie Mae
                14,733       14,733 (2)     (917 )     (808 )
Of consolidated trusts
                348       348 (2)     (103 )     (103 )
Multifamily mortgage loans held for investment, at amortized cost:
                                               
Of Fannie Mae
                1,730       1,730 (2)     (146 )     (237 )
Acquired property, net:
                                               
Single-family
                9,995       9,995 (3)     (672 )     (1,004 )
Multifamily
                133       133 (3)     (17 )     (32 )
Other Assets:
                                               
Guaranty assets
                24       24       (1 )     (4 )
Partnership investments
                85       85       (26 )     (89 )
                                                 
Total assets at fair value
  $     $ 6,869     $ 27,588     $ 34,457     $ (1,903 )   $ (2,367 )
                                                 
 
 
(1) Includes $56 million and $7.1 billion of mortgage loans held for sale that were sold, deconsolidated, retained as a mortgage-related security or redesignated to mortgage loans held for investment as of June 30, 2011 and 2010, respectively.
 
(2) Includes $3.6 billion and $508 million of mortgage loans held for investment that were liquidated or transferred to foreclosed properties as of June 30, 2011 and 2010, respectively.
 
(3) Includes $8.4 billion and $4.0 billion of acquired properties that were sold or transferred as of June 30, 2011 and 2010, respectively.
 
(4) Includes $7.1 billion of estimated fair value and $68 million in losses due to the adoption of the new accounting standards.
 
(5) Includes $144 million of other assets that were sold or transferred as of June 30, 2011.
 
The following is a description of the fair valuation techniques we use for assets and liabilities measured at fair value on a nonrecurring basis under the accounting standard for fair value measurements as well as our basis for classifying these assets and liabilities as Level 1, Level 2 or Level 3. We also use these valuation techniques to estimate the fair value of financial instruments not carried at fair value but disclosed as part of the fair value of financial instruments.
 
Mortgage Loans Held for Sale—Loans are reported at the lower of cost or fair value in our condensed consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are described under “Mortgage Loans Held for Investment” and these loans are classified as Level 2 to the extent that significant inputs are observable. To the extent that significant inputs are unobservable or determined by extrapolation of observable points, the loans are classified within Level 3.

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