Fannie Mae 2008 Annual Report Download - page 129

market and tightening of credit standards in the primary mortgage market. Our mortgage liquidation rate also
decreased in 2007 from 2006, largely due to a reduction in refinancings.
Table 20 shows the composition of our mortgage portfolio by product type and the carrying value, which
reflects the net impact of our purchases, sales and liquidations, as of the end of each year of the five-year
period ended December 31, 2008. Our net mortgage portfolio totaled $765.1 billion as of December 31, 2008,
reflecting an increase of 6% from December 31, 2007.
Table 20: Mortgage Portfolio Composition
(1)
2008 2007 2006 2005 2004
As of December 31,
(Dollars in millions)
Mortgage loans:
(2)
Single-family:
Government insured or guaranteed
(3)
. . . . . . . . . . . . . . $ 43,799 $ 28,202 $ 20,106 $ 15,036 $ 10,112
Conventional:
Long-term, fixed-rate. . . . . . . . . . . . . . . . . . . . . . . 186,550 193,607 202,339 199,917 230,585
Intermediate-term, fixed-rate
(4)
. . . . . . . . . . . . . . . . 37,546 46,744 53,438 61,517 76,640
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,157 43,278 46,820 38,331 38,350
Total conventional single-family . . . . . . . . . . . . . . . . . 268,253 283,629 302,597 299,765 345,575
Total single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,052 311,831 322,703 314,801 355,687
Multifamily:
Government insured or guaranteed
(3)
. . . . . . . . . . . . . . 699 815 968 1,148 1,074
Conventional:
Long-term, fixed-rate. . . . . . . . . . . . . . . . . . . . . . . 5,636 5,615 5,098 3,619 3,133
Intermediate-term, fixed-rate
(4)
. . . . . . . . . . . . . . . . 90,837 73,609 50,847 45,961 39,009
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,269 11,707 3,429 1,151 1,254
Total conventional multifamily . . . . . . . . . . . . . . . . . . 116,742 90,931 59,374 50,731 43,396
Total multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,441 91,746 60,342 51,879 44,470
Total mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,493 403,577 383,045 366,680 400,157
Unamortized premiums (discounts) and other cost basis
adjustments, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (894) 726 943 1,254 1,647
Lower of cost or fair value adjustments on loans held for
sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (264) (81) (93) (89) (83)
Allowance for loan losses for loans held for investment . . (2,923) (698) (340) (302) (349)
Total mortgage loans, net . . . . . . . . . . . . . . . . . . . . . . . . . 425,412 403,524 383,555 367,543 401,372
Mortgage-related securities:
Fannie Mae single-class MBS . . . . . . . . . . . . . . . . . . . . 159,712 102,258 124,383 160,322 272,665
Fannie Mae structured MBS . . . . . . . . . . . . . . . . . . . . . 69,238 77,905 75,261 74,129 71,739
Non-Fannie Mae single-class mortgage securities. . . . . . . 26,976 28,129 27,980 27,162 35,656
Non-Fannie Mae structured mortgage securities
(5)
. . . . . . 88,467 96,373 97,399 86,129 109,455
Mortgage revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . 15,447 16,315 16,924 18,802 22,076
Other mortgage-related securities . . . . . . . . . . . . . . . . . . 2,863 3,346 3,940 4,665 5,461
Total mortgage-related securities . . . . . . . . . . . . . . . . . . . . 362,703 324,326 345,887 371,209 517,052
Market value adjustments
(6)
. . . . . . . . . . . . . . . . . . . . . (15,996) (3,249) (1,261) (789) 6,680
Other-than-temporary impairments . . . . . . . . . . . . . . . . . (7,349) (603) (1,004) (553) (432)
Unamortized premiums (discounts) and other cost basis
adjustments, net
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . 296 (1,076) (1,083) (909) 173
Total mortgage-related securities, net . . . . . . . . . . . . . . . . . 339,654 319,398 342,539 368,958 523,473
Mortgage portfolio, net
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . $765,066 $722,922 $726,094 $736,501 $924,845
124