Fannie Mae 2009 Annual Report Download - page 164

not qualify for HAMP or who fail to successfully complete the HAMP required trial period are provided with
alternative home retention options or a foreclosure avoidance alternative.
Table 46 provides statistics on our single-family loan workouts, by type, for periods indicated. These statistics
do not include trial modifications under HAMP or repayment and forbearance plans that have been initiated
but not completed.
Table 46: Statistics on Single-Family Loan Workouts
Unpaid
Principal
Balance
Number
of Loans
Unpaid
Principal
Balance
Number
of Loans
Unpaid
Principal
Balance
Number
of Loans
2009 2008 2007
For the Year Ended December 31,
(Dollars in millions)
Home retention strategies:
Modifications . . . . . . . . . . . . . . . . . . . . . . . . . . $18,702 98,575 $ 5,119 33,388 $3,342 26,466
Repayment plans and forbearances completed
(1)
. . 2,930 22,948 936 7,892 904 7,955
HomeSaver Advance first-lien loans . . . . . . . . . . 6,057 39,199 11,196 70,967 — —
$27,689 160,722 $17,251 112,247 $4,246 34,421
Foreclosure alternatives:
Preforeclosure sales . . . . . . . . . . . . . . . . . . . . . $ 8,457 36,968 $ 2,212 10,355 $ 415 2,720
Deeds-in-lieu of foreclosure . . . . . . . . . . . . . . . . 491 2,649 252 1,341 97 664
$ 8,948 39,617 $ 2,464 11,696 $ 512 3,384
Total loan workouts . . . . . . . . . . . . . . . . . . . . . . . $36,637 200,339 $19,715 123,943 $4,758 37,805
Loan workouts as a percentage of single-family
guaranty book of business
(2)
. . . . . . . . . . . . . . . 1.26% 1.10% 0.70% 0.68% 0.18% 0.21%
(1)
For the year ended December 31, 2009, repayment plans reflected those plans associated with loans that were 60 days
or more delinquent. For the years ended December 31, 2008 and 2007, repayment plans reflected those plans
associated with loans that were 90 days or more delinquent. If we had included repayment plans associated with loans
that were 60 days or more delinquent for the years ended December 31, 2008 and 2007, the unpaid principal balance
that had repayment plans and forbearances completed would have been $2.8 billion and $2.1 billion, respectively, and
the number of loans that had repayment plans and forbearances completed would have been 22,337 and 17,926,
respectively.
(2)
Represents total loan workouts during the period as a percentage of our single-family guaranty book of business as of
the end of each year.
We increased the level of workout volume in 2009, through workouts initiated through our foreclosure
prevention efforts. Loan modifications more than doubled from the volumes in 2008 as the number of
borrowers who were experiencing significant adverse changes in their financial condition increased.
Consequently we reduced the number of HomeSaver Advance loans we purchased because we require that all
potential loan workouts first be evaluated under HAMP before being considered for other alternatives. We also
agreed to an increasing number of preforeclosure sales and accepted a higher number of deeds-in-lieu of
foreclosure during 2009 as a growing number of borrowers were adversely affected by the weak economy.
Loan modifications involve changes to the original mortgage terms such as product type, interest rate,
amortization term, maturity date and/or unpaid principal balance. Modifications include TDRs, which are
restructurings of mortgage loans in which a concession is granted to the borrower and is the only form of
modification in which we do not expect to collect the full original contractual principal and interest due under
the loan. Other resolutions and modifications may result in our receiving the full amount due, or certain
installments due, under the loan over a period of time that is longer than the period of time originally
provided for under the terms of the loan. As discussed above and in greater detail below, the profile of the
modifications completed during 2009 has shifted from those completed prior to 2009.
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