Fannie Mae 2010 Annual Report Download - page 29

Business
Segment Primary Business Activities Primary Revenues Primary Expenses
Multifamily • Mortgage securitizations:
Works with our lender
customers to securitize
multifamily mortgage loans
delivered to us by lenders
into Fannie Mae MBS in
lender swap transactions
•Mortgage acquisitions:
Works with our Capital
Markets group to facilitate
the purchase of multifamily
mortgage loans for our
mortgage portfolio
•Affordable housing
investments: Provides
funding for investments in
affordable multifamily rental
housing projects
•Credit risk management:
Prices and manages the
credit risk on loans in our
multifamily guaranty book of
business
•Credit loss management:
Works to prevent
foreclosures and reduce costs
of defaulted loans through
foreclosure alternatives,
through management of REO
we acquire upon foreclosure
or through a deed-in-lieu of
foreclosure, and through
lender repurchases
•Guaranty fees: Compensation
for assuming and managing
the credit risk on our
multifamily guaranty book of
business
•Fee and other income:
Compensation received for
engaging in multifamily
transactions and bond credit
enhancements
•Credit-related expenses:
Consists of provision for
multifamily loan losses,
provision for multifamily
guaranty losses and
foreclosed property expense
on loans underlying our
multifamily guaranty book of
business
•Net operating losses:
Generated by our affordable
housing investments, net of
any tax benefits generated by
these investments that we are
able to utilize
•Administrative expenses:
Consists of salaries and
benefits, occupancy costs,
professional services, and
other expenses associated
with our Multifamily
business operations
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