Fannie Mae 2008 Annual Report Download - page 394

The following table displays pre-tax gains and losses (realized and unrealized) included in our consolidated
statements of operations for the year ended December 31, 2008 for our level 3 assets and liabilities measured
in our consolidated balance sheet at fair value on a recurring basis.
Interest
Income
Investment in
Securities
Guaranty
Fee
Income
Investment
Losses, Net
Fair
Value
Losses,
Net
Extraordinary
Losses Total
For the Year Ended December 31, 2008
(Dollars in millions)
Total realized and unrealized gains (losses)
included in net loss as of December 31,
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90 $(915) $(2,812) $(1,640) $(59) $(5,336)
Net unrealized losses related to level 3 assets
and liabilities still held as of December 31,
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (26) — (1,152) — (1,178)
Non-recurring Change in Fair Value
The following table displays assets and liabilities measured at fair value on a non-recurring basis; that is, the
instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in
certain circumstances (for example, when we evaluate for impairment), and the gains or losses recognized for
the year ended December 31, 2008, as a result of fair value measurement are summarized below.
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Estimated
Fair Value
Total
Gains (Losses)
For the Year
Ended
December 31, 2008
Fair Value Measurements
For the Year Ended December 31, 2008
(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of
cost or fair value . . . . . . . . . . . . . . . . . $— $26,303 $ 1,294 $27,597
(1)
$ (433)
Mortgage loans held for investment, at
amortized cost . . . . . . . . . . . . . . . . . . . 1,838 1,838
(2)
(107)
Acquired property, net . . . . . . . . . . . . . . . — — 9,624 9,624
(3)
(1,533)
Guaranty assets . . . . . . . . . . . . . . . . . . . . — — 5,473 5,473 (2,967)
Master servicing assets . . . . . . . . . . . . . . . — — 547 547 (553)
Partnership investments . . . . . . . . . . . . . . — — 4,877 4,877 (764)
(4)
Total assets at fair value . . . . . . . . . . . . . . $— $26,303 $23,653 $49,956 $(6,357)
Liabilities:
Master servicing liabilities . . . . . . . . . . . . $— $ — $ 22 $ 22 $ (12)
Total liabilities at fair value . . . . . . . . . . $— $ — $ 22 $ 22 $ (12)
(1)
Includes $25.2 billion of mortgage loans held for sale that were sold, retained as a mortgage-related security or
redesignated to mortgage loans held for investment as of December 31, 2008.
(2)
Includes $157 million of mortgage loans held for investment that were liquidated or transferred to foreclosed
properties as of December 31, 2008.
(3)
Includes $4.0 billion of foreclosed properties that were sold as of December 31, 2008.
(4)
Represents impairment charge related to LIHTC partnerships and other equity investments in multifamily properties.
F-116
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)