Fannie Mae 2009 Annual Report Download - page 161

conditions persisted and unemployment remained high throughout 2009, there was an increase in the
percentage of borrowers who had been making their payments for longer periods of time now becoming
seriously delinquent. This factor has also contributed to the increase in the portion of our losses attributed to
loans without higher risk characteristics, as discussed in “Consolidated Results of Operations—Credit-Related
Expenses—Summary of Provision for Credit Losses and Combined Loss Reserve.”
Table 44 provides a comparison, by geographic region and by loans with and without credit enhancement, of
the serious delinquency rates as of the periods indicated for conventional single-family loans in our single-
family guaranty book of business.
Table 44: Serious Delinquency Rates
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
2009 2008 2007
As of December 31,
Conventional single-family
delinquency rates by geographic
region:
(1)
Midwest. . . . . . . . . . . . . . . . . . 16% 4.97% 16% 2.44% 17% 1.35%
Northeast . . . . . . . . . . . . . . . . . 19 4.53 19 1.97 19 0.94
Southeast . . . . . . . . . . . . . . . . . 24 7.06 25 3.27 25 1.18
Southwest . . . . . . . . . . . . . . . . 15 4.19 16 1.98 16 0.86
West . . . . . . . . . . . . . . . . . . . . 26 5.45 24 2.10 23 0.50
Total conventional single- family
loans . . . . . . . . . . . . . . . . . . 100% 5.38% 100% 2.42% 100% 0.98%
Conventional single-family loans:
Credit enhanced . . . . . . . . . . . . 18% 13.51% 21% 6.42% 21% 2.75%
Non-credit enhanced . . . . . . . . . 82 3.67 79 1.40 79 0.53
Total conventional single-
family loans. . . . . . . . . . . . 100% 5.38% 100% 2.42% 100% 0.98%
(1)
See footnote 8 to Table 42 for states included in each geographic region.
The current economic environment, including the continued weakness in the housing market and high
unemployment, has adversely affected the serious delinquency rates across our conventional single-family
guaranty book of business. However, certain states, certain higher risk loan categories, such as Alt-A loans,
subprime loans, loans with higher mark-to-market LTVs, and our 2006 and 2007 loan vintages continue to
exhibit higher than average delinquency rates and account for a disproportionate share of our credit losses.
States in the Midwest have experienced prolonged economic weakness and California, Florida, Arizona and
Nevada have experienced the most significant declines in home prices coupled with rising unemployment
rates.
Table 45 below presents the conventional serious delinquency rates and other financial information as of the
periods indicated for our single-family loans with some of these risk characteristics. The reported categories
are not mutually exclusive. See “Consolidated Results of Operations—Credit-Related Expenses—Credit Loss
Performance Metrics” for information on the portion of our credit losses attributable to Alt-A loans and
certain other higher risk loan categories.
156