Fannie Mae 2009 Annual Report Download - page 306

Nonaccrual Loans
We have single-family and multifamily loans in our mortgage portfolio, including acquired credit-impaired
loans, that are subject to our nonaccrual policy. The following table displays information about nonaccrual
loans in our portfolio as of December 31, 2009 and 2008.
2009 2008
As of December 31,
(Dollars in millions)
Nonaccrual loans
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,079 $ 17,634
Accrued interest recorded on nonaccrual loans
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,366 436
Accruing loans past due 90 days or more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612 317
Nonaccrual loans in portfolio (number of loans) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292,468 141,329
(1)
Includes the carrying value of all nonaccrual loans, including TDRs and on-balance sheet HomeSaver Advance first-
lien loans on nonaccrual status. Forgone interest on nonaccrual loans, which represents the amount of income
contractually due that we would have reported had the loans performed according to their contractual terms, was
$1.1 billion, $359 million and $200 million for the years ended December 31, 2009, 2008 and 2007, respectively.
(2)
Reflects accrued interest on nonaccrual loans that was recorded prior to their placement on nonaccrual status.
Impaired Loans
Impaired loans include single-family and multifamily TDRs, acquired credit-impaired loans, and other
multifamily loans.
Acquired Credit-impaired Loans without a Loss Allowance
The following table displays the recorded investment of acquired credit-impaired loans for which we did not
recognize a loss allowance subsequent to acquisition as of December 31, 2009 and 2008.
2009 2008
As of December 31,
(Dollars in millions)
Impaired nonaccrual loans without an allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,970 $1,074
Average recorded investment in nonaccrual loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,088 1,378
The amount of interest income recognized on these impaired loans during the year was $21 million, $5 million
and $8 million for the years ended December 31, 2009, 2008 and 2007, respectively. We do not recognize
interest income when these loans are placed on nonaccrual status.
Other Impaired Loans
The following table displays the total recorded investment and the corresponding specific loss allowances as of
December 31, 2009 and 2008 of all other impaired loans, including acquired credit-impaired loans for which
we recognized a loss allowance subsequent to acquisition.
2009 2008
As of December 31,
(Dollars in millions)
Impaired loans with an allowance
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,055 $5,044
Impaired loans without an allowance
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,450 1,649
Total other impaired loans
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,505 $6,693
Allowance for other impaired loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,995 $ 878
F-48
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)