Fannie Mae 2012 Annual Report Download - page 105

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We expect to continue to purchase loans from MBS trusts as they become four or more consecutive monthly payments
delinquent subject to market conditions, economic benefit, servicer capacity, and other factors including the limit on the
mortgage assets that we may own pursuant to the senior preferred stock purchase agreement. We purchased approximately
277,000 delinquent loans with an unpaid principal balance of $45.8 billion from our single-family MBS trusts in 2012. As of
December 31, 2012, the total unpaid principal balance of all loans in single-family MBS trusts that were delinquent as to four
or more consecutive monthly payments was $3.7 billion. As a result of purchasing these delinquent loans and our portfolio
declining to meet the requirements of our senior preferred stock purchase agreement with Treasury, an increasing portion of
the Capital Market group’s mortgage portfolio is comprised of nonperforming loans. The total unpaid principal balance of
nonperforming loans in the Capital Markets group’s mortgage portfolio was $230.3 billion or 36% of the Capital Markets
group’s mortgage portfolio as of December 31, 2012, compared with $236.2 billion or 33% of the Capital Markets group’s
mortgage portfolio as of December 31, 2011. This population includes loans that have been modified and classified as TDRs,
of which $130.2 billion as of December 31, 2012 and $114.2 billion as of December 31, 2011 were TDRs on accrual status,
as well as unmodified delinquent loans that are on nonaccrual status in our consolidated financial statements.
CONSOLIDATED BALANCE SHEET ANALYSIS
We seek to structure the composition of our balance sheet and manage its size to comply with our regulatory requirements, to
provide adequate liquidity to meet our needs, and to mitigate our interest rate risk and credit risk exposure. The major asset
components of our consolidated balance sheets include our mortgage investments and our cash and other investments
portfolio. We fund and manage the interest rate risk on these investments through the issuance of debt securities and the use
of derivatives. Our debt securities and derivatives represent the major liability components of our consolidated balance
sheets.
This section provides a discussion of our consolidated balance sheets as of the dates indicated and should be read together
with our consolidated financial statements, including the accompanying notes.
Table 28 displays a summary of our consolidated balance sheets as of December 31, 2012 and 2011.
Table 28: Summary of Consolidated Balance Sheets
As of December 31,
2012 2011 Variance
(Dollars in millions)
Assets
Cash and cash equivalents and federal funds sold and securities purchased
under agreements to resell or similar arrangements. . . . . . . . . . . . . . . . . . . . . $ 53,617 $ 63,539 $ (9,922)
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,919 50,797 17,122
Investments in securities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,876 151,780 (47,904)
Mortgage loans:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355,936 380,379 (24,443)
Of consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,652,265 2,590,398 61,867
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,795)(72,156) 13,361
Mortgage loans, net of allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . 2,949,406 2,898,621 50,785
Other assets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,604 46,747 857
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,222,422 $ 3,211,484 $ 10,938
Liabilities and equity (deficit)
Debt:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 615,864 $ 732,444 $ (116,580)
Of consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,573,653 2,457,428 116,225
Other liabilities(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,681 26,183 (502)
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,215,198 3,216,055 (857)
Senior preferred stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,149 112,578 4,571
Other deficit(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (109,925)(117,149) 7,224
Total equity (deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,224 (4,571) 11,795
Total liabilities and equity (deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,222,422 $ 3,211,484 $ 10,938