Fannie Mae 2008 Annual Report Download - page 324

The table below displays the product characteristics of both HFI and HFS loans in our mortgage portfolio as
of December 31, 2008 and 2007, and does not include loans underlying securities that are not consolidated,
since in those instances the mortgage loans are not included in our consolidated balance sheets. Refer to
“Note 7, Portfolio Securitizations,” for additional information on mortgage loans underlying our securities.
2008 2007
As of December 31,
(Dollars in millions)
Single-family:
(1)
Government insured or guaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,799 $ 28,202
Conventional:
Long-term fixed-rate
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,550 193,607
Intermediate-term fixed-rate
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,546 46,744
Adjustable-rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,157 43,278
Total conventional single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,253 283,629
Total single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,052 311,831
Multifamily:
(1)
Government insured or guaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699 815
Conventional:
Long-term fixed-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,636 5,615
Intermediate-term fixed-rate
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,837 73,609
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,269 11,707
Total conventional multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,742 90,931
Total multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,441 91,746
Unamortized premiums (discounts) and other cost basis adjustments, net
(4)
. . . . . . . . . . (894) 726
Lower of cost or fair value adjustments on loans held for sale . . . . . . . . . . . . . . . . . . . (264) (81)
Allowance for loan losses for loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . (2,923) (698)
Total mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $425,412 $403,524
(1)
Includes unpaid principal totaling $65.8 billion and $81.8 billion as of December 31, 2008 and 2007, respectively,
related to mortgage-related securities that have been 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 $125 million and $149 million as of
December 31, 2008 and 2007, respectively.
(3)
Intermediate-term fixed-rate consists of mortgage loans with contractual maturities at purchase equal to or less than
15 years.
(4)
Includes a net premium of $921 million as of December 31, 2008 for hedged mortgage loans that will be amortized
through interest income over the life of the loans.
For the years ended December 31, 2008 and 2007, we redesignated $13.5 billion and $4.3 billion, respectively,
of HFS loans to HFI. We redesignated $1.3 billion of HFI loans to HFS for the year ended December 31,
2008. We did not redesignate any HFI loans to HFS for the year ended December 31, 2007.
Loans Acquired in a Transfer
If a loan underlying a Fannie Mae MBS is in default, we have the option to purchase the loan from the MBS
trust, at the unpaid principal balance of that mortgage loan plus accrued interest, after four or more
F-46
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)