Fannie Mae 2012 Annual Report Download - page 139

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Table 46: Single-Family Conventional Serious Delinquency Rate Concentration Analysis
As of December 31,
2012 2011 2010
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio (1)
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio (1)
Unpaid
Principal
Balance
Percentage
of Book
Outstanding
Serious
Delinquency
Rate
Estimated
Mark-to-
Market
LTV
Ratio (1)
(Dollars in millions)
States:
Arizona . . . . . . . . . . $ 65,277 2% 2.14% 88% $ 66,875 2% 3.65% 109% $ 71,052 2% 6.23% 105%
California. . . . . . . . . 523,602 19 1.69 73 516,608 19 2.46 81 507,598 18 3.89 76
Florida . . . . . . . . . . . 165,377 6 10.06 96 175,344 6 11.80 108 184,101 7 12.31 107
Nevada. . . . . . . . . . . 27,206 1 6.70 117 28,766 1 7.42 138 31,661 1 10.66 128
Select Midwest
states (2) . . . . . . . 278,455 10 3.51 81 284,060 10 4.39 84 292,734 11 4.80 80
All other states. . . . . 1,697,209 62 2.85 71 1,689,846 62 3.18 73 1,695,615 61 3.46 71
Product type:
Alt-A . . . . . . . . . . . . 155,469 6 11.36 96 182,236 7 12.43 101 211,770 8 13.87 96
Subprime . . . . . . . . . 5,035 * 20.60 107 5,791 * 23.18 111 6,499 * 28.20 103
Vintages:
2005. . . . . . . . . . . . . 139,204 5 7.79 90 190,521 7 7.27 95 235,100 9 7.20 89
2006. . . . . . . . . . . . . 138,040 5 12.15 105 186,835 7 11.81 111 232,009 8 12.19 104
2007. . . . . . . . . . . . . 195,308 7 12.99 107 269,012 10 12.62 112 334,110 12 13.24 104
2008. . . . . . . . . . . . . 124,747 5 6.63 88 192,713 7 5.64 92 256,024 9 4.88 85
All other vintages . . 2,159,827 78 1.36 69 1,922,418 69 1.59 69 1,725,518 62 1.73 65
Estimated mark-to-
market LTV ratio:
Greater than 100%(1) 374,010 13 13.42 128 493,762 18 13.76 131 435,991 16 17.70 130
Select combined risk
characteristics:
Original LTV ratio >
90% and FICO
score < 620 . . . . . . . 19,416 1 14.76 113 18,992 1 18.67 115 21,205 1 21.41 109
__________
* Percentage is less than 0.5%.
(1) Second lien mortgage loans held by third parties are not included in the calculation of the estimated mark-to-market LTV ratios.
(2) Consists of Illinois, Indiana, Michigan and Ohio.
Loan Workout Metrics
We continue to work with our servicers to implement our home retention and foreclosure prevention initiatives. Loan
modifications involve changes to the original mortgage terms such as product type, interest rate, amortization term, maturity
date and/or unpaid principal balance. For many of our modifications, we will ultimately collect less than the contractual
amount due under the original loan. Other resolutions and modifications may result in our receiving the full amount due, or
certain installments due, under the loan over a period of time that is longer than the period of time originally provided for
under the terms of the loan. Additionally, we currently offer up to twelve months of forbearance for unemployed homeowners
as an additional tool to help them avoid foreclosure.
With our implementation of HAMP, a modification initiative under the Making Home Affordable Program that is intended to
be uniform across servicers, our aim is to help borrowers whose loan is either currently delinquent or is at imminent risk of
default. HAMP modifications can include reduced interest rates, term extensions, and/or principal forbearance to bring the
monthly payment down to 31% of the borrower’s gross (pre-tax) income. After a servicer determines that the borrower’s
hardship is not temporary in nature, we require that servicers first evaluate borrowers for eligibility under HAMP before
considering other workout options or foreclosure. By design, not all borrowers facing foreclosure will be eligible for a HAMP
modification. As a result, we are working with servicers to ensure that borrowers who do not qualify for HAMP or who fail to
successfully complete the HAMP required trial period are provided with alternative home retention options or a foreclosure
prevention alternative.
In addition, we continue to focus on foreclosure alternatives for borrowers who are unable to retain their homes. Foreclosure
alternatives may be more appropriate if the borrower has experienced a significant adverse change in financial condition due
to events such as unemployment or reduced income, divorce, or unexpected issues like medical bills and is therefore no
longer able to make the required mortgage payments. Foreclosure alternatives include short sales, where our servicers work