Fannie Mae 2004 Annual Report Download - page 312

the year ended December 31, 2002. These losses are recognized as “Investment losses, net” in the consolidated
statements of income.
The following table displays cash flows to us and (from us) on our securitization trusts related to portfolio
securitizations accounted for as sales for the years ended December 31, 2004, 2003 and 2002.
2004 2003 2002
For the Year Ended December 31,
(Restated) (Restated)
(Dollars in millions)
Proceeds from new securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,335 $ 7,226 $3,154
Guaranty fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 37 27
Principal and interest received on retained interests . . . . . . . . . . . . . . . . . . 5,206 16,396 7,244
Purchases of delinquent or foreclosed assets . . . . . . . . . . . . . . . . . . . . . . . (50) (65) (61)
Managed loans are defined as on-balance sheet mortgage loans as well as mortgage loans which were
securitized in a portfolio securitization. The following table displays combined information on the unpaid
principal balances and principal amounts on non-accrual loans related to managed loans as of December 31,
2004 and 2003.
Unpaid Principal
Balance
Principal Amount on
Non-accrual Loans
(1)
(Dollars in millions)
As of December 31, 2004
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $388,523 $7,790
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,634 12
Securitized loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,339 9
Total loans managed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $427,496 $7,811
As of December 31, 2003 (Restated)
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $384,143 $7,536
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,490 14
Securitized loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,361 12
Total loans managed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $415,994 $7,562
(1)
Loans for which interest is no longer being accrued. In general, we prospectively discontinue accruing interest when
payment of principal and interest becomes three or more months past due.
Net credit losses incurred during the years ended December 31, 2004, 2003 and 2002 related to loans held in
our portfolio and underlying Fannie Mae MBS were $204 million, $214 million and $162 million,
respectively.
8. Financial Guaranties and Master Servicing
Financial Guaranties
We generate revenue by absorbing the credit risk of mortgage loans and mortgage-related securities backing
our Fannie Mae MBS in exchange for a guaranty fee. We primarily issue single-class and multi-class Fannie
Mae MBS and guarantee to the respective MBS trusts that we will supplement mortgage loan collections as
required to permit timely payment of principal and interest due on the related Fannie Mae MBS, irrespective
of the cash flows received from borrowers. We also provide credit enhancements on taxable or tax-exempt
mortgage revenue bonds issued by state and local governmental entities to finance multifamily housing for
low- and moderate- income families.
Additionally, we issue long-term standby commitments that require us to purchase loans from lenders if the
loans meet certain delinquency criteria.
F-61
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)