Fannie Mae 2010 Annual Report Download - page 305

In general, the investors in the obligations of consolidated VIEs have recourse only to the assets of those VIEs
and do not have recourse to us, except where we provide a guaranty to the VIE.
2010
(1)
2009
(1)
As of December 31,
(Dollars in millions)
Assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 348 $ 2,092
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,619 —
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 5,599
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,055 10,513
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 661 11,646
Loans held for investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,577,133 129,590
Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,349 519
Servicer and MBS trust receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593 466
Other assets
(2)
.................................................. — 451
Total assets of consolidated VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,648,779 $160,876
Liabilities:
Accrued interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,712 $ 29
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,359 —
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,411,597 6,167
Servicer and MBS trust payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562 850
Other liabilities
(3)
............................................... 331 385
Total liabilities of consolidated VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,427,561 $ 7,431
(1)
Includes VIEs created through lender swaps, private label wraps and portfolio securitization transactions.
(2)
Includes partnership investments of $430 million and cash, cash equivalents and restricted cash of $21 million in
limited partnerships as of December 31, 2009.
(3)
Includes partnership liabilities of $385 million as of December 31, 2009.
The adoption of the new accounting standards resulted in significant changes in the consolidation status of
VIEs. Refer to “Note 2, Adoption of the New Accounting Standards on the Transfers of Financial Assets and
Consolidation of Variable Interest Entities” for additional information regarding the impact of transition.
In addition to the VIEs consolidated as a result of initially adopting the new accounting standards, we
consolidated VIEs as of December 31, 2010 that were not consolidated as of December 31, 2009. These VIEs are
Fannie Mae multi-class resecuritization trusts and were consolidated because we now hold in our portfolio a
substantial portion of the certificates. As a result of consolidating these multi-class resecuritization trusts, which
had combined total assets of $3.9 billion in unpaid principal balance as of December 31, 2010, we derecognized
our investment in these trusts and recognized the assets and liabilities of the consolidated trusts at their fair value.
As of December 31, 2009, we consolidated VIEs that were no longer consolidated as of December 31, 2010,
excluding the impact of adopting the new accounting standards. These VIEs were Fannie Mae multi-class
resecuritization trusts and were deconsolidated because we no longer hold in our portfolio a substantial portion
of the certificates. As a result of deconsolidating these multi-class resecuritization trusts, which had combined
total assets of $855 million in unpaid principal balance as of December 31, 2009, we derecognized the assets
and liabilities of the trusts and recognized at fair value our retained interests as securities in our consolidated
balance sheet.
F-47
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)