Fannie Mae 2012 Annual Report Download - page 106

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(1) Includes $18.0 billion as of December 31, 2012 and $49.8 billion as of December 31, 2011 of non-mortgage-related securities that are
included in our other investments portfolio, which we present in “Table 38: Cash and Other Investments Portfolio.”
(2) Consists of accrued interest receivable, net; acquired property, net; and other assets.
(3) Consists of accrued interest payable and other liabilities.
(4) Consists of preferred stock, common stock, accumulated deficit, accumulated other comprehensive income (loss), treasury stock, and
noncontrolling interest.
Cash and Other Investments Portfolio
Our cash and other investments portfolio consists of cash and cash equivalents, federal funds sold and securities purchased
under agreements to resell or similar arrangements, and investments in non-mortgage-related securities. See “Liquidity and
Capital Management—Liquidity Management—Cash and Other Investments Portfolio” for additional information on our
cash and other investments portfolio.
Restricted Cash
Restricted cash primarily includes unscheduled borrower payments received by the servicer or consolidated trusts due to be
remitted to the MBS certificateholders in the subsequent month. Our restricted cash increased as of December 31, 2012
compared with the balance as of December 31, 2011 primarily due to an increase in refinance activity, resulting in an increase
in unscheduled payments received.
Investments in Mortgage-Related Securities
Our investments in mortgage-related securities are classified in our consolidated balance sheets as either trading or available-
for-sale and are measured at fair value. Unrealized and realized gains and losses on trading securities are included as a
component of “Fair value losses, net” and unrealized gains and losses on available-for-sale securities are included in “Other
comprehensive income (loss)” in our consolidated statements of operations and comprehensive income (loss). Realized gains
and losses on available-for-sale securities are recognized when securities are sold in “Investment gains, net” in our
consolidated statements of operations and comprehensive income (loss). We recognize the credit component of other-than-
temporary impairments of debt securities we own in “Net other-than-temporary impairments” and the noncredit component in
“Other comprehensive income (loss)” in our consolidated statements of operations and comprehensive income (loss) for
those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before
recovery. See “Note 5, Investments in Securities” for additional information on our investments in mortgage-related
securities, including the composition of our trading and available-for-sale securities at amortized cost and fair value and the
gross unrealized gains and losses related to our available-for-sale securities as of December 31, 2012 and 2011.
We classify private-label securities as Alt-A, subprime, CMBS or manufactured housing if the securities were labeled as such
when issued. We have also invested in subprime private-label mortgage-related securities that we have resecuritized to
include our guaranty (“wraps”).
Table 29 displays the fair value of our investments in mortgage-related securities, including trading and available-for-sale
securities, as of the dates indicated. The decrease during 2012 is primarily attributable to a reduction in our agency MBS
investments as we continue to manage our portfolio to the requirements of the senior preferred stock purchase agreement.