Fannie Mae 2009 Annual Report Download - page 167

Table 48: Single-Family Foreclosed Properties
2009 2008 2007
For the Year Ended December 31,
Single-family foreclosed properties (number of properties):
Beginning of period inventory of single-family foreclosed properties (REO)
(1)
. . . . 63,538 33,729 25,125
Acquisitions by geographic area:
(2)
Midwest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,072 30,026 20,303
Northeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,934 5,984 3,811
Southeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,302 24,925 12,352
Southwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,197 18,340 9,942
West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,112 15,377 2,713
Total properties acquired through foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . 145,617 94,652 49,121
Dispositions of REO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (123,000) (64,843) (40,517)
End of period inventory of single-family foreclosed properties (REO)
(1)
. . . . . . . . . 86,155 63,538 33,729
Carrying value of single-family foreclosed properties (dollars in millions)
(3)
. . . . . . $ 8,466 $ 6,531 $ 3,440
Single-family foreclosure rate
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.80% 0.52% 0.28%
(1)
Includes acquisitions through deeds-in-lieu of foreclosure.
(2)
See footnote 8 to Table 42 for states included in each geographic region.
(3)
Excludes foreclosed property claims receivables, which are reported in our consolidated balance sheets as a component
of “Acquired property, net.”
(4)
Estimated based on the total number of properties acquired through foreclosure as a percentage of the total number of
loans in our conventional single-family guaranty book of business as of the end of each respective period.
Despite the increase in our foreclosure rate during 2009, foreclosure levels were lower than what they
otherwise would have been because of our foreclosure moratoria and directive to delay foreclosure sales until
the loan servicer verifies that the borrower is ineligible for HAMP modifications and all other foreclosure
prevention alternatives have been exhausted. During 2008 and 2009, we significantly increased our REO sales
staff as part of our efforts to sell our inventory of foreclosed properties and reduce the costs associated with
these properties. However, the weak economy and rise in unemployment rates, as well as the decline in home
prices on a national basis, have resulted in an increase in the percentage of our mortgage loans that transition
from delinquent to foreclosure status and significantly reduced the values of our foreclosed single-family
properties. As shown in Table 49 we have experienced a disproportionate share of defaults, particularly within
certain states that have had significant home price depreciation and Alt-A loans.
Table 49: Single Family Acquired Property Concentration Analysis
Percentage of
Book
Outstanding
(1)
Percentage of
Properties
Acquired
by Foreclosure
(2)
Percentage of
Book
Outstanding
(1)
Percentage of
Properties
Acquired
by Foreclosure
(2)
Percentage of
Book
Outstanding
(1)
Percentage of
Properties
Acquired
by Foreclosure
(2)
December 31, 2009 December 31, 2008 December 31, 2007
As of For The Year Ended As of For The Year Ended As of For The Year Ended
States:
Arizona, California, Florida
andNevada......... 28% 36% 27% 27% 27% 10%
Illinois, Indiana, Michigan
andOhio........... 11 20 11 25 12 34
Product Type:
Alt-A . . ............. 9 31 11 31 12 22
(1)
Percentage calculated based on unpaid principal balance as of the end of each period.
162