Fannie Mae 2011 Annual Report Download - page 288

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Loans Acquired in a Transfer
We acquired delinquent loans from unconsolidated trusts and long-term standby commitments with an unpaid
principal balance plus accrued interest of $192 million, $279 million and $36.4 billion for the years ended
December 31, 2011, 2010, and 2009, respectively. The following table displays the outstanding unpaid principal
balance and accrued interest receivable, carrying amount by accrual status of acquired credit-impaired loans as of
December 31, 2011 and 2010, excluding loans that were modified as TDRs subsequent to their acquisition from
MBS trusts.
As of December 31,
2011 2010
(Dollars in millions)
Outstanding contractual balance ............................................ $5,029 $8,519
Carrying amount:(1)
Loans on accrual status ................................................. $1,660 $2,029
Loans on nonaccrual status .............................................. 1,225 2,449
Total carrying amount of loans ............................................. $2,885 $4,478
(1) Carrying amount consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments,
impairment and accrued interest receivable.
The following table displays details on acquired credit-impaired loans at their acquisition dates for the years
ended December 31, 2011, 2010 and 2009.
For the Year Ended December 31,
2011 2010 2009
(Dollars in millions)
Contractually required principal and interest payments at acquisition(1) . . . $272 $321 $39,197
Nonaccretable difference ....................................... 157 154 9,234
Cash flows expected to be collected at acquisition(1) .................. 115 167 29,963
Accretable yield .............................................. 42 76 13,852
Initial investment in acquired credit-impaired loans at acquisition ....... $ 73 $ 91 $16,111
(1) Contractually required principal and interest payments at acquisition and cash flows expected to be collected at
acquisition are adjusted for the estimated timing and amount of prepayments.
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