Fannie Mae 2007 Annual Report Download - page 222

subsidiaries” in the consolidated balance sheets. In general, the investors in the obligations of consolidated
VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide
a guaranty to the VIE.
The following table displays the carrying amount and classification of consolidated assets of VIEs as of
December 31, 2007 and 2006.
2007 2006
As of December 31,
(Dollars in millions)
Assets:
MBS trusts:
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $78,309 $102,293
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 797
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 —
AFS securities
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,801 1,701
Total MBS trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,895 104,791
Limited partnerships:
Partnership investments
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,170 5,410
Cash, cash equivalents and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 166
Total limited partnership investments
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,334 5,576
Total assets of consolidated VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $87,229 $110,367
(1)
Includes assets consolidated from mortgage revenue bonds of $62 million and $76 million as of December 31, 2007
and 2006, respectively.
(2)
Includes LIHTC partnerships of $3.7 billion and $4.0 billion as of December 31, 2007 and 2006, respectively.
As of December 31, 2007 and 2006, we had $10.6 billion and $12.9 billion of AFS securities and $639 million
and $723 million of trading securities, respectively, and $2.4 billion of loans held for sale as of both
December 31, 2007 and 2006, that were transferred to VIEs as a result of securitization transactions that did
not qualify as sales under SFAS 140.
Non-consolidated VIEs
We also have investments in VIEs that we do not consolidate because we are not deemed to be the primary
beneficiary. These VIEs include the securitization trusts and LIHTC partnerships described above where our
ownership represents a significant variable interest in the entity, including our investments in certain Fannie
Mae securitization trusts, private-label trusts, LIHTC partnerships, other tax partnerships and other entities that
meet the VIE criteria.
We consolidated our investments in certain LIHTC funds that were structured as limited partnerships. The
funds that were consolidated, in turn, own a majority of the limited partnership interests in other LIHTC
operating partnerships, which did not require consolidation under FIN 46R and are therefore accounted for
using the equity method. Such investments, which are generally funded through a combination of debt and
equity, have a recorded investment of $3.5 billion and $3.7 billion as of December 31, 2007 and 2006,
respectively. In addition, such unconsolidated operating partnerships had $232 million and $217 million in
mortgage debt that we own or guarantee, as of December 31, 2007 and 2006, respectively.
F-34
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)