Fannie Mae 2007 Annual Report Download - page 235

Download and view the complete annual report

Please find page 235 of the 2007 Fannie Mae annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 292

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292

offset by trading gains recognized on the portion of the new Fannie Mae guaranteed structured security that
we retained and classified as trading. We recorded a net gain on portfolio securitizations of $152 million and
$259 million for the years ended December 31, 2006 and 2005, respectively. These amounts are recognized as
“Investment losses, net” in the consolidated statements of operations.
The following table displays cash flows on our securitization trusts related to portfolio securitizations
accounted for as sales for the years ended December 31, 2007, 2006 and 2005.
2007 2006 2005
For the Year Ended December 31,
(Dollars in millions)
Proceeds from new securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,271 $32,078 $55,031
Guaranty fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 85 60
Principal and interest received on retained interests. . . . . . . . . . . . . . . . . . . . . 6,859 6,186 2,889
Payment for purchases of delinquent or foreclosed assets. . . . . . . . . . . . . . . . . (292) (55) (37)
“Managed loans” are defined as on-balance sheet mortgage loans as well as mortgage loans that have been
securitized in portfolio securitizations that have qualified as sales pursuant to SFAS 140. The following table
displays the unpaid principal balances of managed loans as well as the unpaid principal balances of those
managed loans that are delinquent as of December 31, 2007 and 2006.
Unpaid Principal
Balance
Principal Amount of
Delinquent Loans
(1)
(Dollars in millions)
As of December 31, 2007
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $396,478 $8,949
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,099 10
Securitized loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,861 332
Total loans managed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $491,438 $9,291
As of December 31, 2006
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $378,119 $5,986
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,926 1
Securitized loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,962 99
Total loans managed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $452,007 $6,086
(1)
Represents the unpaid principal balance of loans held for investment and loans held for sale for which interest is no
longer being accrued. In general, we prospectively discontinue accruing interest when payment of principal and
interest becomes three months or more past due. For securitized loans, the amount represents the unpaid principal
balance of loans that are three months or more past due.
Net credit losses incurred during the years ended December 31, 2007, 2006 and 2005 related to loans held in
our portfolio and loans underlying Fannie Mae MBS issued from our portfolio were $516 million, $262 million
and $145 million, respectively.
F-47
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)