Fannie Mae 2012 Annual Report Download - page 48

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FORWARD-LOOKING STATEMENTS
This report includes statements that constitute forward-looking statements within the meaning of Section 21E of the
Exchange Act. In addition, our senior management may from time to time make forward-looking statements orally to
analysts, investors, the news media and others. Forward-looking statements often include words such as “expect,”
“anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “forecast,” “project,” “would,” “should,” “could,” “likely,”
“may,” or similar words.
Among the forward-looking statements in this report are statements relating to:
• Our expectation that our annual earnings will remain strong over the next few years;
• Our expectation that improvements in the credit quality of our loan acquisitions since 2009 and increases in our
charged guaranty fees on recently acquired loans will benefit our results for years to come, especially because these
loans have relatively low interest rates, making them less likely to be refinanced;
• Our expectation that the single-family loans we have acquired since the beginning of 2009, in the aggregate, will be
profitable over their lifetime, by which we mean that we expect our fee income on these loans to exceed our credit
losses and administrative costs for them;
• Our expectation that, as a result of increases in the charged guaranty fee and the larger volume of single-family loans
we acquired in 2012, we will receive significantly more guaranty fee income on the single-family loans we acquired
in 2012, over their lifetime, than on the single-family loans we acquired in 2011;
• Our expectation that rising guaranty fee revenue we receive for managing the credit risk on loans underlying Fannie
Mae MBS held by third parties will in a number of years become the primary source of our revenues;
• Our expectation that, if current market conditions continue, revenues from guaranty fees will generally offset
expected declines in the revenues we generate from the difference between the interest income earned on the assets
in our mortgage portfolio and the interest expense associated with the debt funding of those assets;
• Our expectation of high levels of period-to-period volatility in our results because our derivatives are recorded at fair
value in our financial statements while some of the instruments they hedge are not recorded at fair value in our
financial statements;
• Our expectation that, as of the first quarter of 2013, we will no longer be in a three-year cumulative loss position;
• Our belief that, although we have not completed the analysis, after considering all relevant factors, we may release
the valuation allowance on our deferred tax assets as early as the first quarter of 2013;
• Our expectation that the single-family loans we acquired from 2005 through 2008, in the aggregate, will not be
profitable over their lifetime;
• Our expectation that the ultimate performance of all our loans will be affected by numerous factors, including
changes in home prices, borrower behavior, public policy and other macroeconomic factors;
• Our expectation that the serious delinquency rates for single-family loans acquired in more recent years will be
higher after the loans have aged, but not as high as the December 31, 2012 serious delinquency rates of loans in our
legacy book of business;
• Our belief that loans we acquire under HARP may not perform as well as the other loans we have acquired since the
beginning of 2009, but they will perform better than the loans they replace because they should reduce the
borrowers’ monthly payments and/or provide more stable terms than the borrowers’ old loans (for example, by
refinancing into a mortgage with a fixed interest rate instead of an adjustable rate);
• Our expectation that if interest rates remain low, we will continue to acquire a high volume of refinancings under
HARP for the program’s duration or until there is no longer a large population of borrowers with high LTV loans
who would benefit from refinancing;
• Our expectation that we will acquire many refinancings with LTV ratios greater than 125% as a result of changes to
HARP;
• Our expectation that we will continue to accept deliveries through September 30, 2014 of HARP loans with
application dates on or before December 31, 2013;