Fannie Mae 2010 Annual Report Download - page 57

• Our expectation that the current market premium portion of our current estimate of fair value will not
impact future Treasury draws, which is based on our intention not to have another party assume the credit
risk inherent in our book of business;
• Our expectation that our debt funding needs will decline in future periods as we reduce the size of our
mortgage portfolio in compliance with the requirements of the senior preferred stock purchase agreement;
• Our expectation that, due to the large size of our portfolio of mortgage-related securities, current market
conditions and the significant amount of distressed assets in our mortgage portfolio, it is unlikely that
there would be sufficient market demand for large amounts of these securities over a prolonged period of
time, particularly during a liquidity crisis;
• Our expectation that our acquisitions of Alt-A mortgage loans will continue to be minimal in future
periods and the percentage of the book of business attributable to Alt-A will decrease over time;
• Our belief that we have limited exposure to losses on home equity conversion mortgages, a type of
reverse mortgage insured by the federal government;
• Our expectation that serious delinquency rates will continue to be affected in the future by home price
changes, changes in other macroeconomic conditions and the extent to which borrowers with modified
loans again become delinquent in their payments;
• Our expectation that we will increase our use of foreclosure alternatives;
• Our belief that the performance of our workouts will be highly dependent on economic factors, such as
unemployment rates, household wealth and home prices;
• Our belief that one or more of our financial guarantor counterparties may not be able to fully meet their
obligations to us in the future;
• Our assumption that the guaranty fee income generated from future business activity will largely replace
guaranty fee income lost due to mortgage prepayments; and
• Our anticipated 2011 contributions to our benefit plans.
Forward-looking statements reflect our management’s expectations or predictions of future conditions, events
or results based on various assumptions and management’s estimates of trends and economic factors in the
markets in which we are active, as well as our business plans. They are not guarantees of future performance.
By their nature, forward-looking statements are subject to risks and uncertainties. Our actual results and
financial condition may differ, possibly materially, from the anticipated results and financial condition
indicated in these forward-looking statements. There are a number of factors that could cause actual
conditions, events or results to differ materially from those described in the forward-looking statements
contained in this report, including, but not limited to, the following: the uncertainty of our future; legislative
and regulatory changes affecting us; challenges we face in retaining and hiring qualified employees; the
deteriorated credit performance of many loans in our guaranty book of business; the conservatorship and its
effect on our business; the investment by Treasury and its effect on our business; adverse effects from
activities we undertake to support the mortgage market and help borrowers; limitations on our ability to access
the debt capital markets; further disruptions in the housing and credit markets; defaults by one or more
institutional counterparties; our reliance on mortgage servicers; deficiencies in servicer and law firm
foreclosure processes and the consequences of those deficiencies; guidance by the Financial Accounting
Standards Board (“FASB”); operational control weaknesses; our reliance on models; the level and volatility of
interest rates and credit spreads; changes in the structure and regulation of the financial services industry; and
those factors described in this report, including those factors described in “Risk Factors.”
Readers are cautioned to place forward-looking statements in this report or that we make from time to time
into proper context by carefully considering the factors discussed in “Risk Factors.” These forward-looking
statements are representative only as of the date they are made, and we undertake no obligation to update any
forward-looking statement as a result of new information, future events or otherwise, except as required under
the federal securities laws.
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