Fannie Mae 2010 Annual Report Download - page 80

(3)
Consists of the following: (a) derivatives fair value gains (losses), net; (b) trading securities gains (losses), net;
(c) hedged mortgage assets gains (losses), net; (d) debt foreign exchange gains (losses), net; (e) debt fair value gains
(losses), net; and (f) mortgage loans fair value losses, net.
(4)
Consists of provision for loan losses, provision for guaranty losses and foreclosed property expense.
(5)
Consists of the following: (a) debt extinguishment gains (losses), net; (b) losses from partnership investments;
(c) losses on certain guaranty contracts; and (d) fee and other income.
(6)
Includes the weighted-average shares of common stock that would be issuable upon the full exercise of the warrant
issued to Treasury from the date of conservatorship through the end of the period for 2008 and for the full year for
2009 and 2010. Because the warrant’s exercise price of $0.00001 per share is considered non-substantive (compared
to the market price of our common stock), the warrant was evaluated based on its substance over form. It was
determined to have characteristics of non-voting common stock, and thus included in the computation of basic
earnings (loss) per share.
(7)
Reflects unpaid principal balance of Fannie Mae MBS issued and guaranteed by us during the reporting period less:
(a) securitizations of mortgage loans held in our mortgage portfolio during the reporting period and (b) Fannie Mae
MBS purchased for our mortgage portfolio during the reporting period.
(8)
Reflects unpaid principal balance of mortgage loans and mortgage-related securities we purchased for our mortgage
portfolio during the reporting period. Includes acquisition of mortgage-related securities accounted for as the
extinguishment of debt because the entity underlying the mortgage-related securities has been consolidated in our
consolidated balance sheet. For 2010, includes unpaid principal balance of approximately $217 billion of delinquent
loans purchased from our single-family MBS trusts. Under our MBS trust documents, we have the option to purchase
from MBS trusts loans that are delinquent as to four or more consecutive monthly payments.
(9)
Mortgage loans consist solely of domestic residential real-estate mortgages.
(10)
Total assets less total liabilities.
(11)
Reflects unpaid principal balance of mortgage loans and mortgage-related securities reported in our consolidated
balance sheets. The principal balance of resecuritized Fannie Mae MBS is included only once in the reported amount.
As a result of our adoption of the new accounting standards as of January 1, 2010, we reflect a substantial majority
of our Fannie Mae MBS as mortgage assets and the balance as unconsolidated Fannie Mae MBS.
(12)
Reflects unpaid principal balance of unconsolidated Fannie Mae MBS, held by third-party investors. The principal
balance of resecuritized Fannie Mae MBS is included only once in the reported amount.
(13)
Primarily includes long-term standby commitments we have issued and single-family and multifamily credit
enhancements we have provided and that are not otherwise reflected in the table.
(14)
Reflects mortgage credit book of business less non-Fannie Mae mortgage-related securities held in our investment
portfolio for which we do not provide a guaranty.
(15)
Consists of on-balance sheet nonperforming loans held in our mortgage assets and off-balance sheet nonperforming
loans in unconsolidated Fannie Mae MBS trusts held by third parties. Includes all nonaccrual loans, as well as
troubled debt restructurings (“TDRs”) and HomeSaver Advance first-lien loans on accrual status. We generally
classify single-family and multifamily loans as nonperforming when the payment of principal or interest on the loan
is equal to or greater than two and three months past due, respectively. A troubled debt restructuring is a restructuring
of a mortgage loan in which a concession is granted to a borrower experiencing financial difficulty. Prior to 2008, the
nonperforming loans that we reported consisted of on-balance sheet nonperforming loans held in our mortgage
portfolio and did not include off-balance sheet nonperforming loans in Fannie Mae MBS held by third parties.
(16)
Calculated based on net interest income for the reporting period divided by the average balance of total interest-
earning assets during the period, expressed as a percentage.
(17)
Calculated based on guaranty fee income for the reporting period divided by average outstanding Fannie Mae MBS
and other guarantees during the period, expressed in basis points.
(18)
Consists of (a) charge-offs, net of recoveries and (b) foreclosed property expense for the reporting period (adjusted to
exclude the impact of fair value losses resulting from credit-impaired loans acquired from MBS trusts and
HomeSaver Advance loans) divided by the average guaranty book of business during the period, expressed in basis
points.
(19)
Calculated based on net income (loss) available to common stockholders for the reporting period divided by average
total assets during the period, expressed as a percentage.
Note:
* Average balances for purposes of ratio calculations are based on balances at the beginning of the year and at the end of
each respective quarter for 2010, 2009, 2008 and 2007. Average balances for purposes of ratio calculations for 2006 are
based on beginning and end of year balances. Beginning of the year balance for 2010 is as of January 1, 2010, post
transition adjustment. See “Note 2, Adoption of the New Accounting Standards on the Transfers of Financial Assets and
Consolidation of Variable Interest Entities” for a further discussion of the impacts of the new accounting standards on
our consolidated financial statements.
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