Fannie Mae 2012 Annual Report Download - page 91

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Table 17: Nonperforming Single-Family and Multifamily Loans
As of December 31,
2012 2011 2010 2009 2008
(Dollars in millions)
On-balance sheet nonperforming loans including
loans in consolidated Fannie Mae MBS trusts:
Nonaccrual loans . . . . . . . . . . . . . . . . . . . . . . . . . . $ 114,761 $ 142,998 $ 170,788 $ 37,596 $ 15,610
TDRs on accrual status(1). . . . . . . . . . . . . . . . . . . . 136,064 108,797 82,702 9,880 5,799
Total on-balance sheet nonperforming loans . . 250,825 251,795 253,490 47,476 21,409
Off-balance sheet nonperforming loans in
unconsolidated Fannie Mae MBS trusts(2) . . . . . . . 72 154 89 174,588 98,546
Total nonperforming loans. . . . . . . . . . . . . . . . . . . . . 250,897 251,949 253,579 222,064 119,955
Allowance for loan losses and allowance for
accrued interest receivable related to
individually impaired on-balance sheet
nonperforming loans . . . . . . . . . . . . . . . . . . . . . . (45,776)(47,711)(38,827)(5,609)(723)
Total nonperforming loans, net of allowance. . . . . . . $ 205,121 $ 204,238 $ 214,752 $ 216,455 $119,232
Accruing on-balance sheet loans past due 90 days
or more(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,580 $ 768 $ 896 $ 612 $ 317
For the Year Ended December 31,
2012 2011 2010 2009 2008
(Dollars in millions)
Interest related to on-balance sheet nonperforming loans:
Interest income forgone(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,554 $8,224 $8,185 $1,341 $ 401
Interest income recognized for the period(5) . . . . . . . . . . . . . . . . . . 6,442 6,598 7,995 1,206 771
__________
(1) Includes HomeSaver Advance first-lien loans on accrual status.
(2) Represents loans that would meet our criteria for nonaccrual status if the loans had been on-balance sheet.
(3) Recorded investment in loans that, as of the end of each period, are 90 days or more past due and continuing to accrue interest. As of
December 31, 2012, includes loans with a recorded investment of $2.8 billion which were repurchased in January 2013 pursuant to
our resolution agreement with Bank of America. These loans were returned to accrual status to reflect the change in our assessment of
collectibility resulting from this agreement, see “Note 20, Subsequent Events.” Also includes loans insured or guaranteed by the U.S.
government and loans for which we have recourse against the seller in the event of a default.
(4) Represents the amount of interest income we did not record but would have recorded during the period for on-balance sheet
nonperforming loans as of the end of each period had the loans performed according to their original contractual terms.
(5) Represents interest income recognized during the period for on-balance sheet loans classified as nonperforming as of the end of each
period. Includes primarily amounts accrued while the loans were performing and cash payments received on nonaccrual loans.
Foreclosed Property (Income) Expense
We recorded foreclosed property income in 2012 compared with recording foreclosed property expense in 2011 primarily due
to: (1) improved sales prices on dispositions of our REO properties, resulting from strong demand in markets with limited
REO supply and (2) the recognition of foreclosed property income resulting from resolutions with Bank of America on
January 6, 2013 related to outstanding repurchase requests and compensatory fees. Compensatory fees are amounts we
charge our primary servicers for servicing delays within their control when they fail to comply with established loss
mitigation and foreclosure timelines as required by our Servicing Guide, which sets forth our policies and procedures related
to servicing our single-family mortgages. See “Note 20, Subsequent Events” for additional information on these agreements
and their impact on our financial results.
Foreclosed property expense decreased in 2011 compared with 2010 due, in part, to an increase in cash received by us and
estimated amounts due to us for repurchase requests. These amounts were recognized in our provision for credit losses and
foreclosed property expense. In addition, we had fewer REO properties in 2011 compared with 2010, primarily driven by
delays in the foreclosure process, which resulted in lower foreclosed property expense. The decrease in foreclosed property
expense was partially offset by a decrease in the estimated recovery amount from mortgage insurance coverage.