Fannie Mae 2009 Annual Report Download - page 390

22. Subsequent Event
With the adoption of new accounting standards on January 1, 2010, we will no longer recognize the
acquisition of loans from the MBS trusts that we have consolidated as a purchase with an associated fair value
loss for the difference between the fair value of the acquired loan and its acquisition cost, as these loans will
already be reflected on our consolidated balance sheet. Currently, the cost of purchasing most delinquent loans
from Fannie Mae MBS trusts and holding them in our portfolio is less than the cost of advancing delinquent
payments to security holders. In light of these factors, on February 10, 2010, we announced that we expect to
significantly increase our purchases of delinquent loans from single-family MBS trusts. We will begin
purchasing these loans in March 2010. We expect to purchase a significant portion of the current delinquent
population within a few months period subject to market, servicer capacity, and other constraints including the
limit on the mortgage assets that we may own pursuant to the senior preferred stock purchase agreement. We
will continue to review the economics of purchasing loans that are four or more months delinquent in the
future and may reevaluate our delinquent loan purchase practices and alter them if circumstances warrant.
F-132
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)