Fannie Mae 2013 Annual Report Download - page 12

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Table 2: Credit Statistics, Single-Family Guaranty Book of Business(1)
2013 2012 2011
(Dollars in millions)
As of the end of each period:
Serious delinquency rate(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.38 % 3.29 % 3.91 %
Seriously delinquent loan count . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418,837 576,591 690,911
Troubled debt restructurings on accrual status(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 140,512 $ 135,196 $ 107,991
Nonaccrual loans(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81,397 $ 112,627 $ 140,388
Foreclosed property inventory:
Number of properties(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,229 105,666 118,528
Carrying value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,334 $ 9,505 $ 9,692
Combined loss reserves(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,705 $ 58,809 $ 71,512
Total loss reserves(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46,689 $ 61,396 $ 75,264
During the period:
Foreclosed property (number of properties):
Acquisitions(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,384 174,479 199,696
Dispositions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (146,821) (187,341) (243,657)
Credit-related income (expense)(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,205 $ 919 $ (27,218)
Credit losses(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,452 $ 14,392 $ 18,346
REO net sales prices to unpaid principal balance(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 % 59 % 54 %
Short sales net sales price to unpaid principal balance(11) . . . . . . . . . . . . . . . . . . . . . . . . . 67 % 61 % 59 %
Loan workout activity (number of loans):
Home retention loan workouts(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,029 186,741 248,658
Short sales and deeds-in-lieu of foreclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,949 88,732 79,833
Total loan workouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233,978 275,473 328,491
Loan workouts as a percentage of delinquent loans in our guaranty book of business(13) . 29.20 % 26.38 % 27.05 %
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(1) Our single-family guaranty book of business consists of (a) single-family mortgage loans of Fannie Mae, (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 retained 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.
(3) A troubled debt restructuring (“TDR”) is a restructuring of a mortgage loan in which a concession is granted to a borrower experiencing
financial difficulty.
(4) We generally classify single-family loans as nonaccrual when the payment of principal or interest on the loan is 60 days or more past
due. Includes off-balance sheet loans in unconsolidated Fannie Mae MBS trusts that would meet our criteria for nonaccrual status if the
loans had been on-balance sheet.
(5) 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.
(6) Consists of the allowance for loan losses for single-family loans recognized in our consolidated balance sheets and the reserve for
guaranty losses related to both loans backing Fannie Mae MBS that we do not consolidate in our consolidated balance sheets and 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) Expense—(Benefit) Provision for Credit Losses.”
(7) Consists of (a) the combined loss reserves, (b) allowance for accrued interest receivable, and (c) allowance for preforeclosure property
taxes and insurance receivables.
(8) Consists of (a) the benefit (provision) for credit losses and (b) foreclosed property income (expense).