Fannie Mae 2004 Annual Report Download - page 2

TABLE OF CONTENTS
PARTI......................................................................... 1
Item 1. Business ............................................................... 1
Explanatory Note about this Report ........................................... 1
Overview ............................................................... 1
Financial Restatement, Regulatory Reviews and Other Significant Recent Events .......... 1
Residential Mortgage Market Overview......................................... 4
Business Segments ........................................................ 6
Competition ............................................................. 22
Our Charter and Regulation of Our Activities .................................... 23
Employees .............................................................. 32
Where You Can Find Additional Information .................................... 32
Forward-Looking Statements ................................................ 33
Glossary of Terms Used in this Report ......................................... 35
Item 1A. Risk Factors ............................................................. 39
Item 1B. Unresolved Staff Comments ................................................. 50
Item 2. Properties............................................................... 50
Item 3. Legal Proceedings ........................................................ 50
Restatement-Related Matters................................................. 51
Restatement-Related Investigations by U.S. Attorney’s Office, OFHEO and the SEC . ...... 53
Other Legal Proceedings.................................................... 54
Item 4. Submission of Matters to a Vote of Security Holders ............................... 56
PARTII ........................................................................ 57
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities ....................................................... 57
Item 6. Selected Financial Data .................................................... 62
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . 65
Organization of MD&A .................................................... 65
Executive Summary ....................................................... 65
Restatement ............................................................. 71
Critical Accounting Policies and Estimates ...................................... 95
Consolidated Results of Operations ............................................ 101
Business Segment Results................................................... 119
Supplemental Non-GAAP Information—Fair Value Balance Sheet ..................... 126
Risk Management ........................................................ 132
Liquidity and Capital Management ............................................ 169
Off-Balance Sheet Arrangements ............................................. 184
Impact of Future Adoption of Accounting Pronouncements .......................... 187
2004 Quarterly Review ..................................................... 190
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ......................... 197
Item 8. Financial Statements and Supplementary Data .................................... 197
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . 197
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