Fannie Mae 2011 Annual Report Download - page 285

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2010 For the Year Ended December 31, 2010
Unpaid
Principal
Balance
Total
Recorded
Investment(1)
Related
Allowance
for Loan
Losses
Related
Allowance
for
Accrued
Interest
Receivable
Average
Recorded
Investment
Total Interest
Income
Recognized(2)
Interest Income
Recognized on a
Cash Basis
(Dollars in millions)
Individually impaired loans:
With related allowance recorded:
Single-family:
Primary(3) ................ $ 99,838 $ 93,024 $23,565 $ 772 $ 81,258 $3,314 $1,470
Government(4) ............ 240 248 38 7 141 9 —
Alt-A ................... 30,932 28,253 9,592 368 25,361 897 407
Other(5) .................. 14,429 13,689 4,479 137 12,094 384 204
Total single-family ...... 145,439 135,214 37,674 1,284 118,854 4,604 2,081
Multifamily ................ 2,372 2,371 556 23 1,496 202 10
Total individually impaired
loans with related allowance
recorded ................ 147,811 137,585 38,230 1,307 120,350 4,806 2,091
With no related allowance
recorded:(6)
Single-family:
Primary(3) ................ 10,586 7,237 — — 7,860 336 55
Government(4) ............ 19 13 — — 11 8 —
Alt-A ................... 3,600 1,884 — — 2,091 121 20
Other(5) .................. 879 512 — — 589 36 7
Total single-family ...... 15,084 9,646 — — 10,551 501 82
Multifamily ................ 789 811 — — 642 71 5
Total individually impaired
loans with no related
allowance recorded ........ 15,873 10,457 — — 11,193 572 87
Total individually impaired
loans(7) .................... $163,684 $148,042 $38,230 $1,307 $131,543 $5,378 $2,178
(1) Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis
adjustments, and accrued interest receivable.
(2) Total single-family interest income recognized of $6.0 billion for the year ended December 31, 2011 consists of $4.5
billion of contractual interest and $1.6 billion of effective yield adjustments. Total single-family interest income
recognized of $5.1 billion for the year ended December 31, 2010 consists of $3.9 billion of contractual interest and $1.3
billion of effective yield adjustments.
(3) Consists of mortgage loans that are not included in other loan classes.
(4) Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that
are not Alt-A.
(5) Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither
government nor Alt-A.
(6) The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation
allowance is required.
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