Fannie Mae 2008 Annual Report Download - page 323

The following table displays the maximum exposure to loss as a result of our involvement with non-
consolidated VIEs and QSPEs, where we have variable interests in the entities or where we are a nontransferor
sponsor or servicer of the entities, as well as the liabilities recognized in our consolidated balance sheets
related to our variable interests in those entities as of December 31, 2008 and 2007. Refer to “Note 8,
Financial Guarantees and Master Servicing,” for additional discussion of our maximum exposure to loss
resulting from our guaranty arrangements.
Maximum
Exposure
to Loss
(1)
Recognized
Liabilities
(2)
(Dollars in millions)
As of December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,530,358 $32,444
As of December 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,349,774 16,526
(1)
Represents the greater of our recorded investment in the entity or the unpaid principal balance of the assets that are
covered by our guaranty. Includes $95.9 billion and $123.0 billion related to non-QSPE securitization trusts as of
December 31, 2008 and 2007, respectively.
(2)
Amounts consist of guaranty obligations and reserve for guaranty losses recognized for the respective periods.
4. Mortgage Loans
We own both single-family mortgage loans, which are secured by four or fewer residential dwelling units, and
multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these
loans as either HFI or HFS. We report HFI loans at the unpaid principal amount outstanding, net of
unamortized premiums and discounts, other cost basis adjustments, and an allowance for loan losses. We
report HFS loans at the lower of cost or fair value determined on a pooled basis, and record valuation changes
in our consolidated statements of operations.
F-45
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)