Fannie Mae 2009 Annual Report Download - page 302

The following table displays the maximum exposure to loss as a result of our involvement with non-
consolidated VIEs and QSPEs, where we have variable interests in the entities or where we are a sponsor or
master servicer of the entities, but were not the transferor, as well as the liabilities recognized in our
consolidated balance sheets related to our variable interests in those entities as of December 31, 2009 and
2008.
Maximum
Exposure
to Loss
(1)
Recognized
Liabilities
(2)
(Dollars in millions)
As of December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,611,823 $86,137
As of December 31, 2008
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,536,469 37,463
(1)
Represents the greater of our recorded investment in the entity or the unpaid principal balance of the assets covered by
our guaranty. Includes $89.8 billion and $95.9 billion related to non-QSPE securitization trusts as of December 31,
2009 and 2008, respectively.
(2)
Amounts consist of guaranty obligations, reserve for guaranty losses, servicer and MBS trust payable, and other
liabilities recognized for the respective periods. Excludes deferred contributions to limited partnership entities in which
we have recognized an equity method investment.
(3)
Prior period amounts include additional categories to conform to the current period presentation.
3. Mortgage Loans
We own both single-family mortgage loans, which are secured by four or fewer residential dwelling units, and
multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these
loans as either HFI or HFS. We report HFI loans at the unpaid principal amount outstanding, net of
unamortized premiums and discounts, other cost basis adjustments, and an allowance for loan losses. We
report HFS loans at the lower of cost or fair value determined on a pooled basis, and record valuation changes
in our consolidated statements of operations.
F-44
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)