Fannie Mae 2010 Annual Report Download - page 311

(1)
Consists of unpaid principal balance, net of unamortized premiums and discounts, other cost basis and fair value
adjustments and accrued interest receivable on HFI loans, excluding loans for which we have elected the fair value
option.
(2)
Total single-family interest income recognized of $5.1 billion consists of $3.9 billion of contractual interest and
$1.3 billion of effective yield adjustments.
(3)
Consists of mortgage loans that are not included in other loan classes.
(4)
Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies
that are not Alt-A.
(5)
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are
neither government nor Alt-A.
(6)
The discounted cash flows, collateral value or fair value equals or exceeds the carrying value of the loan and, as such,
no valuation allowance is required.
(7)
Includes single-family loans restructured in a TDR with a recorded investment of $140.1 billion as of December 31,
2010. Includes multifamily loans restructured in a TDR with a recorded investment of $939 million as of
December 31, 2010.
The following table displays the recorded investment and corresponding specific loss allowance as of
December 31, 2009 for all impaired loans.
Recorded
Investment Allowance Net Investment
As of December 31, 2009
(Dollars in millions)
Impaired loans:
(1)
With valuation allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,050 $5,995 $21,055
Without valuation allowance
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . 8,420 — 8,420
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,470 $5,995 $29,475
(1)
Includes single-family loans restructured in a TDR with a recorded investment of $23.9 billion as of December 31,
2009. Includes multifamily loans restructured in a TDR with a recorded investment of $51 million as of December 31,
2009.
(2)
The discounted cash flows, collateral value or fair value equals or exceeds the carrying value of the loan and, as such,
no valuation allowance is required.
The average recorded investment in impaired loans was $13.3 billion and $4.8 billion for the years ended
December 31, 2009 and 2008. Interest income recognized on impaired loans was $532 million and
$251 million for the years ended December 31, 2009 and 2008, respectively.
F-53
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)