Fannie Mae 2007 Annual Report Download - page 224

The table below displays the product characteristics of both HFI and HFS loans in our mortgage portfolio as
of December 31, 2007 and 2006, and does not include loans underlying securities that are not consolidated,
since in those instances the mortgage loans are not included in the consolidated balance sheets. Refer to
“Note 6, Portfolio Securitizations” for additional information on mortgage loans underlying our securities.
2007 2006
As of December 31,
(Dollars in millions)
Single-family:
(1)
Government insured or guaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,202 $ 20,106
Conventional:
Long-term fixed-rate
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,607 202,339
Intermediate-term fixed-rate
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,744 53,438
Adjustable-rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,278 46,820
Total conventional single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283,629 302,597
Total single-family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311,831 322,703
Multifamily:
(1)
Government insured or guaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815 968
Conventional:
Long-term fixed-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,615 5,098
Intermediate-term fixed-rate
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,609 50,847
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,707 3,429
Total conventional multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,931 59,374
Total multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,746 60,342
Unamortized premiums, discounts and other cost basis adjustments, net . . . . . . . . . . . . . 726 943
Lower of cost or market adjustments on loans held for sale . . . . . . . . . . . . . . . . . . . . . (81) (93)
Allowance for loan losses for loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . (698) (340)
Total mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $403,524 $383,555
(1)
Includes unpaid principal totaling $81.8 billion and $105.5 billion as of December 31, 2007 and 2006, respectively,
related to mortgage-related securities that were consolidated under FIN 46R and mortgage-related securities created
from securitization transactions that did not meet the sales criteria under SFAS 140, which effectively resulted in
mortgage-related securities being accounted for as loans.
(2)
Includes construction to permanent loans with an unpaid principal balance of $149 million and $121 million as of
December 31, 2007 and 2006, respectively.
(3)
Intermediate-term fixed-rate consists of mortgage loans with contractual maturities at purchase equal to or less than
15 years.
For the years ended December 31, 2007 and 2006, we redesignated $4.3 billion and $2.1 billion, respectively,
of HFS loans to HFI. We did not redesignate any HFI loans to HFS during 2007. For the year ended
December 31, 2006, we redesignated $106 million of HFI loans to HFS.
In the fourth quarter of 2007, we sold a portion of various MBS pools which resulted in the derecognition of
$17.3 billion of loans that were consolidated on our balance sheet under FIN 46R. The sale resulted in a
reduction in HFI loans and an increase in trading securities of $15.4 billion in our consolidated balance sheet
as of December 31, 2007.
F-36
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)