Fannie Mae 2009 Annual Report Download - page 356

Single-
Family HCD
Capital
Markets Total
For the Year Ended December 31, 2007
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 365 $ (404) $ 4,620 $ 4,581
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . 5,816 470 (1,215) 5,071
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . . . . . (1,387) (37) — (1,424)
Trust management income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553 35 — 588
Investment gains (losses), net
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . (64) — 11 (53)
Net other-than-temporary impairments
(3)
. . . . . . . . . . . . . . . . . . . . . — — (814) (814)
Fair value losses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (4,668) (4,668)
Debt extinguishment losses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (47) (47)
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . . . . — (1,005) — (1,005)
Fee and other income
(3)
................................ 328 324 313 965
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,478) (548) (643) (2,669)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,559) (5) — (4,564)
Foreclosed property expense
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . (444) (4) — (448)
Other expenses
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450) (199) (11) (660)
Loss before federal income taxes and extraordinary events . . . . . . . . (1,320) (1,373) (2,454) (5,147)
Benefit for federal income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . (462) (1,509) (1,120) (3,091)
Income (loss) before extraordinary losses . . . . . . . . . . . . . . . . . . . . (858) 136 (1,334) (2,056)
Extraordinary losses, net of tax effect . . . . . . . . . . . . . . . . . . . . . . . — — (15) (15)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (858) 136 (1,349) (2,071)
Less: Net loss attributable to the noncontrolling interest
(3)
....... — 21 — 21
Net income (loss) attributable to Fannie Mae . . . . . . . . . . . . . . . . $ (858) $ 157 $(1,349) $(2,050)
(1)
Includes cost of capital charge.
(2)
The charge to Capital Markets represents an intercompany guaranty fee expense allocated to Capital Markets from
Single-Family and HCD for absorbing the credit risk on mortgage loans held in our portfolio.
(3)
Certain prior period amounts have been reclassified to conform to the current period presentation.
The following table displays total assets by segment as of December 31, 2009 and 2008.
2009 2008
As of December 31,
(Dollars in millions)
Single-Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,991 $ 24,115
HCD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,698 10,994
Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843,452 877,295
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $869,141 $912,404
We operate our business solely in the United States and its territories, and accordingly, we generate no revenue
from and have no assets in geographic locations other than the United States and its territories.
F-98
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)