Fannie Mae 2008 Annual Report Download - page 47

• Our expectation that we also will have a net worth deficit in future periods, and therefore will be required
to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement;
• Our intention to use the funds we receive from Treasury under the senior preferred stock purchase
agreement to repay our debt obligations;
• Our belief that we will not be required to make a minimum contribution to our qualified pension plan in
2009;
• Our belief that measures we have taken in 2008 and 2009 will significantly improve the credit profile of
our single-family acquisitions;
• Our belief that our problem loan management strategies may help in reducing our long-term credit losses;
• Our expectation that our acquisitions of Alt-A mortgage loans will continue to be minimal in future
periods;
• Our expectation that we will substantially increase our loan workout activity in 2009 relative to 2008;
• Our plan to continue to increase staffing levels in divisions of the company that focus on our foreclosure
prevention efforts;
• Our belief that the early re-performance statistics related to loans modified during 2008 are likely to
change, perhaps materially;
• Our belief that our liquidity contingency plan is unlikely to be sufficient to provide us with alternative
sources of liquidity for 90 days;
• Our belief that the requirement under the senior preferred stock purchase agreement that we reduce our
mortgage portfolio by 10% per year beginning in 2010 may have an adverse impact on our future net
interest income;
• Our expectation that we will have the necessary technology and operational capabilities in place to
support the securitization of a portion of our whole loans during the second quarter of 2009;
• Our expectation that Treasury’s funding commitment under the senior preferred stock purchase agreement
will enable us to maintain a positive net worth as long as Treasury has not yet invested the full amount
provided for in that agreement;
• Our expectation that the loans we are now acquiring will generally have a lower credit risk,
notwithstanding economic conditions, relative to the loans we acquired in 2006, 2007 and early 2008;
• Our belief that the market crisis will continue to adversely affect the liquidity and financial condition of
our institutional counterparties and our lender counterparties;
• Our belief that recent government actions to provide liquidity and other support to specified financial
market participants may help to improve the financial condition and liquidity position of a number of our
institutional counterparties;
• Our belief that announced mergers of a number of our institutional counterparties, if completed, will
improve the financial condition of these institutional counterparties and help to reduce our counterparty
risk;
• Our belief that we are likely to incur further losses on our investments in Alt-A and subprime private-
label mortgage-related securities, including on those that are currently rated AAA;
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