Fannie Mae 2010 Annual Report Download - page 167

Table 43: Single-Family Conventional Serious Delinquency Rate Concentration Analysis
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio
(1)
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio
(1)
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio
(1)
December 31, 2010 December 31, 2009 December 31, 2008
As of
(Dollars in millions)
States:
Arizona ......$ 71,052 2% 6.23% 105% $ 76,073 3% 8.80% 100% $ 77,728 3% 3.41% 86%
California ..... 507,598 18 3.89 76 484,923 17 5.73 77 436,117 16 2.30 71
Florida ....... 184,101 7 12.31 107 195,309 7 12.82 100 199,871 7 6.14 87
Nevada....... 31,661 1 10.66 128 34,657 1 13.00 123 35,787 1 4.74 98
Select Midwest
states
(2)
..... 292,734 11 4.80 80 304,147 11 5.62 77 308,463 11 2.70 72
All other states . . 1,695,615 61 3.46 71 1,701,379 61 4.11 69 1,653,426 62 1.86 66
Product type:
Alt-A
(3)
...... 211,770 8 13.87 96 248,311 9 15.63 92 290,778 11 7.03 81
Subprime ..... 6,499 * 28.20 103 7,364 * 30.68 97 8,417 * 14.29 87
Vintages:
2006 ........ 232,009 8 12.19 104 292,184 11 12.87 97 372,254 14 5.11 85
2007 ........ 334,110 12 13.24 104 422,956 15 14.06 96 536,459 20 4.70 87
All other
vintages ..... 2,216,642 80 2.62 70 2,081,348 74 3.08 67 1,802,679 66 1.51 62
Estimated
mark-to-market
LTV ratio:
Greater than
100%
(1)
..... 435,991 16 17.70 130 403,443 14 22.09 128 314,674 12 10.98 119
Select combined
risk
characteristics:
Original LTV
ratio H90%
and FICO
score G620 . . 21,205 1 21.41 109 23,966 1 27.96 104 27,159 1 15.97 98
* Percentage is less than 0.5%.
(1)
Second lien mortgage loans held by third parties are not included in the calculation of the estimated mark-to-market
LTV ratios.
(2)
Consists of Illinois, Indiana, Michigan and Ohio.
(3)
For 2009, data for Alt-A loans does not reflect loans we acquired in 2009 upon the refinance of existing Alt-A loans.
Management of Problem Loans and Loan Workout Metrics
The efforts of our mortgage servicers are critical in keeping people in their homes, preventing foreclosures and
providing homeowner assistance. We have substantially increased the number of personnel designated to work
with our servicers. In addition, we have employees working on-site with our largest servicers. Three key areas
where our servicers play a critical role in implementing our home retention and foreclosure prevention
initiatives are: (1) establishing contact with the borrower; (2) reviewing the borrower’s financial profile in
identifying potential home retention strategies to reduce the likelihood that the borrower will re-default; and
(3) in the event that there is not a suitable home retention strategy available, offering a viable foreclosure
alternative to the borrower.
We require our single-family servicers to evaluate all problem loans under HAMP first before considering
other workout alternatives, unless the borrower is unemployed, in which case the borrower should be
considered for forbearance. If it is determined that a borrower is not eligible for a modification under HAMP,
our servicers are required to exhaust all other workout alternatives before proceeding to foreclosure. We
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