Fannie Mae 2009 Annual Report Download - page 99

Table 9: Allowance for Loan Losses and Reserve for Guaranty Losses (Combined Loss Reserves)
2009 2008 2007 2006 2005
(Dollars in millions)
As of December 31,
Changes in combined loss reserves:
Allowance for loan losses:
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,923 $ 698 $ 340 $ 302 $ 349
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,569 4,022 658 174 124
Charge-offs
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,245) (1,987) (407) (206) (267)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 190 107 70 96
Ending balance
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,461 $ 2,923 $ 698 $ 340 $ 302
Reserve for guaranty losses:
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,830 $ 2,693 $ 519 $ 422 $ 396
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,057 23,929 3,906 415 317
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,142) (4,986) (1,782) (336) (302)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685 194 50 18 11
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 54,430 $21,830 $ 2,693 $ 519 $ 422
Combined loss reserves:
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,753 $ 3,391 $ 859 $ 724 $ 745
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,626 27,951 4,564 589 441
Charge-offs
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,387) (6,973) (2,189) (542) (569)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899 384 157 88 107
Ending balance
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,891 $24,753 $ 3,391 $ 859 $ 724
Attribution of charge-offs:
Charge-offs attributable to guaranty book of business . . . . . . . . . . . $(12,832) $ (4,544) $ (825) $(338) $(318)
Charge-offs attributable to fair value losses on:
Credit-impaired loans acquired from MBS trusts . . . . . . . . . . . . (20,327) (2,096) (1,364) (204) (251)
HomeSaver Advance loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . (228) (333) — — —
Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(33,387) $ (6,973) $(2,189) $(542) $(569)
Allocation of combined loss reserves:
Balance at end of each period attributable to:
Single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,848 $24,649 $ 3,318 $ 785 $ 647
Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,043 104 73 74 77
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,891 $24,753 $ 3,391 $ 859 $ 724
Single-family and multifamily loss reserves as a percentage of
applicable guaranty book of business:
Single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.16% 0.88% 0.13% 0.03% 0.03%
Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.10 0.06 0.05 0.06 0.06
Combined loss reserves as a percentage of:
Total guaranty book of business . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10 0.83 0.12 0.04 0.03
Total nonperforming loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.98 20.76 12.49 6.20 5.10
(1)
Includes accrued interest of $1.5 billion, $642 million, $128 million, $39 million and $24 million for 2009, 2008,
2007, 2006 and 2005, respectively.
(2)
Includes $726 million, $150 million, $39 million, $28 million and $22 million as of December 31, 2009, 2008, 2007,
2006 and 2005, respectively, for acquired credit-impaired loans.
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