Fannie Mae 2012 Annual Report Download - page 15

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Table 4: Credit Statistics, Single-Family Guaranty Book of Business(1)
2012 2011 2010
(Dollars in millions)
As of the end of each period:
Serious delinquency rate(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.29 % 3.91 % 4.48 %
Seriously delinquent loan count. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576,591 690,911 801,640
Nonperforming loans(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247,823 $ 248,379 $ 251,631
Foreclosed property inventory:
Number of properties(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,666 118,528 162,489
Carrying value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,505 $ 9,692 $ 14,955
Combined loss reserves(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,809 $ 71,512 $ 60,163
Total loss reserves(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,396 $ 75,264 $ 64,469
During the period:
Foreclosed property (number of properties):
Acquisitions(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,479 199,696 262,078
Dispositions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (187,341) (243,657) (185,744)
Credit-related income (expenses)(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 919 $ (27,218) $ (26,420)
Credit losses(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,392 $ 18,346 $ 23,133
REO net sales prices to unpaid principal balance(9). . . . . . . . . . . . . . . . . . . . . . . . . . 59 %54 % 56 %
Loan workout activity (number of loans):
Home retention loan workouts(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,741 248,658 440,276
Short sales and deeds-in-lieu of foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,732 79,833 75,391
Total loan workouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,473 328,491 515,667
Loan workouts as a percentage of delinquent loans in our guaranty book of
business(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.38 % 27.05 % 37.30 %
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(1) Our single-family guaranty book of business consists of (a) single-family mortgage loans held in our mortgage portfolio, (b) single-
family mortgage loans underlying Fannie Mae MBS, and (c) other credit enhancements that we provide on single-family mortgage
assets, such as long-term standby commitments. It excludes non-Fannie Mae mortgage-related securities held in our mortgage portfolio
for which we do not provide a guaranty.
(2) Calculated based on the number of single-family conventional loans that are 90 days or more past due and loans that have been referred
to foreclosure but not yet foreclosed upon, divided by the number of loans in our single-family conventional guaranty book of business.
We include all of the single-family conventional loans that we own and those that back Fannie Mae MBS in the calculation of the
single-family serious delinquency rate. As of January 31, 2013, our single-family serious delinquency rate was 3.18%.
(3) Represents the total amount of nonperforming loans including troubled debt restructurings (“TDR”). A TDR is a restructuring of a
mortgage loan in which a concession is granted to a borrower experiencing financial difficulty. We generally classify loans as
nonperforming when the payment of principal or interest on the loan is 60 days or more past due.
(4) Includes held-for-use properties (properties that we do not intend to sell or that are not ready for immediate sale in their current
condition), which are reported in our consolidated balance sheets as a component of “Other assets” and acquisitions through deeds-in-
lieu of foreclosure.
(5) Consists of the allowance for loan losses for loans recognized in our consolidated balance sheets and the reserve for guaranty losses
related to both single-family loans backing Fannie Mae MBS that we do not consolidate in our consolidated balance sheets and single-
family loans that we have guaranteed under long-term standby commitments. For additional information on the change in our loss
reserves see “Consolidated Results of Operations—Credit-Related (Income) Expenses—Benefit (Provision) for Credit Losses.”
(6) Consists of (a) the combined loss reserves, (b) allowance for accrued interest receivable, and (c) allowance for preforeclosure property
taxes and insurance receivables.
(7) Consists of (a) the benefit (provision) for credit losses and (b) foreclosed property (income) expense.
(8) Consists of (a) charge-offs, net of recoveries and (b) foreclosed property (income) expense, adjusted to exclude the impact of fair value
losses resulting from credit-impaired loans acquired from MBS trusts.
(9) Calculated as the amount of sale proceeds received on disposition of REO properties during the respective periods, excluding those
subject to repurchase requests made to our seller/servicers, divided by the aggregate UPB of the related loans at the time of foreclosure.
Net sales price represents the contract sale price less selling costs for the property and other charges paid by the seller at closing.
(10) Consists of (a) modifications, which do not include trial modifications or repayment plans or forbearances that have been initiated but
not completed and (b) repayment plans and forbearances completed. See “Table 47: Statistics on Single-Family Loan Workouts” in