Fannie Mae 2007 Annual Report Download - page 267

In September 2007, OFHEO issued an interpretation of the OFHEO Consent Order revising the mortgage
portfolio cap so that it is no longer based on the amount of our net mortgage portfolio assets. The mortgage
portfolio cap is now based on our “average monthly mortgage portfolio balance.” Our “average monthly
mortgage portfolio balance” is the cumulative average of the month-end unpaid principal balances of our
mortgage portfolio for the previous 12-month period; provided that, through June 2008, such period will be
limited to the previous numbers of months since and including July 2007. This measure is a statistical measure
rather than an amount computed in accordance with GAAP, and excludes both consolidated mortgage-related
assets acquired through the assumption of debt and the impact on the unpaid principal balances recorded on
our purchases of delinquent loans from MBS trusts pursuant to SOP 03-3. For purposes of this calculation,
OFHEO’s interpretation sets the July 2007 month-end portfolio balance at $725 billion. In addition, any net
increase in delinquent loan balances in our portfolio after September 30, 2007 will be excluded from the
month-end portfolio balance.
The mortgage portfolio cap was set at $735 billion for the third quarter of 2007 and $742.35 billion for the
fourth quarter of 2007. For each subsequent quarter, the portfolio cap increases by 0.5%, not to exceed 2% per
year. Our compliance with the portfolio cap is determined on a quarterly basis.
We are in compliance with the above restrictions as of February 26, 2008.
17. Preferred Stock
The following table displays preferred stock outstanding as of December 31, 2007 and 2006.
Title
Issue
Date Shares Amount Shares Amount
Stated
Value
per Share
Annual
Dividend Rate
as of
December 31,
2007
Redeemable on
or After
2007 2006
Issued and Outstanding as of December 31,
Series D .....September 30, 1998 3,000,000 $ 150,000,000 3,000,000 $ 150,000,000 $ 50 5.250% September 30, 1999
Series E ...... April 15, 1999 3,000,000 150,000,000 3,000,000 150,000,000 50 5.100 April 15, 2004
Series F ...... March 20, 2000 13,800,000 690,000,000 13,800,000 690,000,000 50 4.560
(1)
March 31, 2002
(6)
Series G ..... August 8, 2000 5,750,000 287,500,000 5,750,000 287,500,000 50 4.590
(2)
September 30, 2002
(6)
Series H ..... April 6, 2001 8,000,000 400,000,000 8,000,000 400,000,000 50 5.810 April 6, 2006
Series I ...... October 28, 2002 6,000,000 300,000,000 6,000,000 300,000,000 50 5.375 October 28, 2007
Series J ...... November 26, 2002 — — 14,000,000 700,000,000 50 — —
Series K ..... March 18, 2003 — — 8,000,000 400,000,000 50 — —
Series L ...... April 29, 2003 6,900,000 345,000,000 6,900,000 345,000,000 50 5.125 April 29, 2008
Series M ..... June 10, 2003 9,200,000 460,000,000 9,200,000 460,000,000 50 4.750 June 10, 2008
Series N .....September 25, 2003 4,500,000 225,000,000 4,500,000 225,000,000 50 5.500 September 25, 2008
Series O ..... December 30, 2004 50,000,000 2,500,000,000 50,000,000 2,500,000,000 50 7.000
(3)
December 31, 2007
Convertible Series
2004-1 ...... December 30, 2004 25,000 2,500,000,000 25,000 2,500,000,000 100,000 5.375 January 5, 2008
Series P ......September 28, 2007 40,000,000 1,000,000,000 — — 25 5.580
(4)
September 30, 2012
Series Q ..... October 4, 2007 15,000,000 375,000,000 — — 25 6.750 September 30, 2010
Series R
(8)
.... November 21, 2007 21,200,000 530,000,000 — — 25 7.625 November 21, 2012
Series S ...... December 11, 2007 280,000,000 7,000,000,000 — — 25 8.250
(5)
December 31, 2010
(7)
Total ........ 466,375,000 $16,912,500,000 132,175,000 $9,107,500,000
(1)
Rate effective March 31, 2006. Variable dividend rate resets every two years at a per annum rate equal to the two-year
Constant Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year. As of December 31, 2006,
the annual dividend rate was 4.56%.
F-79
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)