Fannie Mae 2010 Annual Report Download - page 166

• Loans in a trial-payment period under HAMP typically remain delinquent until the trial period is
successfully completed and a final loan modification has been executed.
• Loan servicers are operating under our directive to delay foreclosure sales until they verify that borrowers
are not eligible for HAMP modifications and other home retention and foreclosure-prevention alternatives
have been exhausted.
• A number of states have enacted laws to lengthen or impose other requirements that result in slowdowns
in the legal processes for completing foreclosures.
Further, as described in “Business—Executive Summary,” we believe the current servicer foreclosure pause
has negatively affected our serious delinquency rates.
Table 42 provides a comparison, by geographic region and by loans with and without credit enhancement, of
the serious delinquency rates as of the periods indicated for single-family conventional loans in our single-
family guaranty book of business.
Table 42: Serious Delinquency Rates
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
Percentage of
Book
Outstanding
Serious
Delinquency
Rate
2010 2009 2008
As of December 31,
Single-family conventional
delinquency rates by geographic
region:
(1)
Midwest. . . . . . . . . . . . . . . . . . 15% 4.16% 16% 4.97% 16% 2.44%
Northeast . . . . . . . . . . . . . . . . . 19 4.38 19 4.53 19 1.97
Southeast . . . . . . . . . . . . . . . . . 24 6.15 24 7.06 25 3.27
Southwest . . . . . . . . . . . . . . . . 15 3.05 15 4.19 16 1.98
West . . . . . . . . . . . . . . . . . . . . 27 4.06 26 5.45 24 2.10
Total single-family conventional
loans . . . . . . . . . . . . . . . . . . 100% 4.48% 100% 5.38% 100% 2.42%
Single-family conventional loans:
Credit enhanced . . . . . . . . . . . . 15% 10.60% 18% 13.51% 21% 6.42%
Non-credit enhanced . . . . . . . . . 85 3.40 82 3.67 79 1.40
Total single-family
conventional loans . . . . . . . 100% 4.48% 100% 5.38% 100% 2.42%
(1)
See footnote 9 to “Table 40: Risk Characteristics of Single-Family Conventional Business Volume and Guaranty Book
of Business” for states included in each geographic region.
While loans across our single-family guaranty book of business have been affected by the weak market
conditions, loans in certain states, certain higher-risk loan categories, such as Alt-A loans and loans with
higher mark-to-market LTVs, and our 2006 and 2007 loan vintages continue to exhibit higher than average
delinquency rates and/or account for a disproportionate share of our credit losses. States in the Midwest have
experienced prolonged economic weakness and California, Florida, Arizona and Nevada have experienced the
most significant declines in home prices coupled with unemployment rates that remain high.
Table 43 presents the conventional serious delinquency rates and other financial information for our single-
family loans with some of these higher-risk characteristics as of the periods indicated. The reported categories
are not mutually exclusive. See “Consolidated Results of Operations—Credit-Related Expenses—Credit Loss
Performance Metrics” for information on the portion of our credit losses attributable to Alt-A loans and
certain other higher-risk loan categories.
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