Fannie Mae 2008 Annual Report Download - page 341

guarantors’ ability to meet their obligations. Refer to “Note 19, Concentrations of Credit Risk” for additional
information.
We gauge our performance risk under our guaranty based on delinquency status of the mortgage loans we hold
in portfolio, or in the case of mortgage-backed securities, the underlying mortgage loans of the related
securities. Management also monitors the seriously delinquency rate, the percentage of single family loans
three or more months past due and the percentage of multifamily loans two or more months past due, of loans
with certain risk characteristics such as mark-to-market loan-to-value ratio, vintage and operating debt service
coverage. We use this information, in conjunction with housing market and economic conditions, to ensure
that our pricing and our eligibility and underwriting criteria accurately reflect the current risk of loans with
these high-risk characteristics, and in some cases we decide to significantly reduce our participation in riskier
loan product categories. Management also uses this data together with other credit risk measures to identify
key trends that guide the development of our loss mitigation strategies.
Risk Characteristics of our Book of Business
The following tables display the current delinquency status and certain risk characteristics of our conventional
single-family and total multifamily book of business as of December 31, 2008.
30 days
Delinquent
60 days
Delinquent
Seriously
Delinquent
(1)
As of December 31, 2008
(7)
Percentage of total single-family conventional book of business
(2)
. . . . 2.53% 1.10% 2.96%
Percentage of total single-family conventional loans
(3)
. . . . . . . . . . . . 2.52 1.00 2.42
F-63
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)