Fannie Mae 2009 Annual Report Download - page 102

Table 10: Nonperforming Single-Family and Multifamily Loans
2009 2008 2007 2006 2005
As of December 31,
(Dollars in millions)
On-balance sheet nonperforming loans:
Nonaccrual loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,079 $ 17,634 $ 8,343 $ 5,961 $ 8,356
Troubled debt restructurings on accrual status. . . . . . . . . . . . 6,922 1,931 1,765 1,086 661
HomeSaver Advance first-lien loans on accrual status . . . . . . 866 1,121 — — —
Total on-balance sheet nonperforming loans . . . . . . . . . . . . . 41,867 20,686 10,108 7,047 9,017
Off-balance sheet nonperforming loans in unconsolidated
Fannie Mae MBS trusts:
Off-balance sheet nonperforming loans, excluding
HomeSaver Advance first-lien loans
(1)
. . . . . . . . . . . . . . . 161,406 89,617 17,048 6,799 5,177
HomeSaver Advance first-lien loans
(2)
. . . . . . . . . . . . . . . . . . 13,182 8,929 — — —
Total off-balance sheet nonperforming loans . . . . . . . . . . . 174,588 98,546 17,048 6,799 5,177
Total nonperforming loans . . . . . . . . . . . . . . . . . . . . . . . . . . . $216,455 $119,232 $27,156 $13,846 $14,194
Accruing on-balance sheet loans past due 90 days or more
(3)
. . . $ 612 $ 317 $ 204 $ 147 $ 185
2009 2008 2007 2006 2005
For the Year Ended December 31,
(Dollars in millions)
Interest related to on-balance sheet nonperforming loans:
Interest income forgone
(4)
......................... $ 1,341 $ 401 $ 215 $ 163 $ 184
Interest income recognized for the period
(5)
............. 1,206 771 328 295 405
(1)
Represents loans that would meet our criteria for nonaccrual status if the loans had been on-balance sheet.
(2)
Represents all off-balance sheet first-lien loans associated with unsecured HomeSaver Advance loans, including first-
lien loans that are not seriously delinquent.
(3)
Recorded investment of loans as of the end of each period that are 90 days or more past due and continuing to accrue
interest, including loans insured or guaranteed by the U.S. government and loans where we have recourse against the
seller in the event of a default.
(4)
Forgone interest income represents the amount of interest income that would have been recorded during the period for
on-balance sheet nonperforming loans as of the end of each period had the loans performed according to their
contractual terms.
(5)
Represents interest income recognized during the period for on-balance sheet loans classified as nonperforming as of
the end of each period.
Provision for Credit Losses Attributable to Fair Value Losses on Acquired Credit-Impaired Loans and
HomeSaver Advance Loans
In our capacity as guarantor of our MBS trusts, we have the option under the trust agreements to purchase
mortgage loans that meet specific criteria from our MBS trusts. We generally are not permitted to complete a
modification of a loan while the loan is held in the MBS trust. As a result, we must exercise our option to
purchase any delinquent loan that we intend to modify from an MBS trust prior to the time that the
modification becomes effective. The proportion of delinquent loans purchased from MBS trusts for the
purpose of modification varies from period to period, driven primarily by changes in our loss mitigation
efforts, as well as changes in interest rates and other market factors. See “Business—Mortgage
Securitizations—Purchases of Loan from our MBS Trusts” for additional information on the provisions in our
MBS trust agreements that govern the purchase of loans from our MBS trusts and the factors that we consider
in determining whether to purchase delinquent loans from our MBS trusts.
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