Fannie Mae 2013 Annual Report Download - page 14

9
2013 Market Share
We estimate that our single-family market share was 40% in 2013, compared with 39% in 2012. These amounts represent our
single-family mortgage acquisitions for each year, excluding delinquent loans we purchased from our MBS trusts, as a
percentage of the single-family first-lien mortgages we currently estimate were originated in the United States that year.
Because our estimate of mortgage originations in prior periods is subject to change as additional data become available, these
market share estimates may change in the future, perhaps materially.
We remained the largest single issuer of mortgage-related securities in the secondary market during the fourth quarter of
2013, with an estimated market share of new single-family mortgage-related securities issuances of 46%, compared with 48%
in the third quarter of 2013 and 48% in the fourth quarter of 2012. For all of 2013, we estimate our market share of new
single-family mortgage-related securities issuances was 47%, compared with 49% for 2012. One of FHFA’s goals has been to
gradually contract our dominant presence in the marketplace; however, our market share remained high in 2013 in the
absence of substantial issuances of mortgage-related securities by private institutions during the year. We estimate that the
share of single-family mortgage-related securities issuances issued by Freddie Mac, Ginnie Mae and us was 99% in 2013.
We remained a continuous source of liquidity in the multifamily market in 2013. We owned or guaranteed approximately
21% of the outstanding debt on multifamily properties as of September 30, 2013 (the latest date for which information was
available).
Helping to Build a Sustainable Housing Finance System
We have invested significant resources towards helping to build a safer, transparent and sustainable housing finance system,
primarily through pursuing the strategic goals identified by our conservator. In a February 2012 letter to Congress, Edward
DeMarco, then the Acting Director of FHFA, identified three strategic goals for the conservatorships of Fannie Mae and
Freddie Mac:
• Build. Build a new infrastructure for the secondary mortgage market;
• Contract. Gradually contract Fannie Mae and Freddie Mac’s dominant presence in the marketplace while simplifying
and shrinking their operations; and
• Maintain. Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages.
In March 2013, FHFA directed us to implement a set of corporate performance objectives for 2013, referred to as the 2013
conservatorship scorecard, which provides the implementation roadmap for FHFA’s strategic plan for Fannie Mae and
Freddie Mac. FHFA determined that we completed the vast majority of these 2013 conservatorship scorecard objectives. For
a description of all of the objectives included in FHFA’s 2013 conservatorship scorecard and our performance against these
objectives, see “Executive Compensation—Compensation Discussion and Analysis—Determination of 2013 Compensation
—Assessment of Corporate Performance on 2013 Conservatorship Scorecard.”
Many of the 2013 conservatorship scorecard objectives were designed to further the reform of the housing finance system.
For example, one of FHFA’s objectives for 2013 was to continue to develop a common securitization platform that can be
used to perform certain aspects of the securitization process. See “Housing Finance Reform—Conservator Developments”
for further information on the progress of the common securitization platform initiative. Another FHFA objective for 2013
was to complete credit risk transfer transactions to further FHFA’s strategic goal to contract the GSEs’ dominant presence in
the market. We issued our first credit risk sharing securities pursuant to this objective in October 2013 and additional credit
risk sharing securities in January 2014. See “MD&A—Risk Management—Credit Risk Management—Single-Family
Mortgage Credit Risk Management” for a description of these transactions.
It is uncertain whether FHFA will make changes to its strategic goals and objectives for Fannie Mae and Freddie Mac under
its new Director. As of the date of this filing, FHFA has not announced its 2014 conservatorship scorecard objectives.
In addition to working on FHFA’s conservatorship scorecard objectives, we are also working on additional related initiatives
to help prepare our business and infrastructure for potential future changes in the structure of the U.S. housing finance system
and to help ensure our safety and soundness during conservatorship. These projects will likely take several years to
implement.
We are devoting significant resources to and incurring significant expenses in implementing FHFA’s objectives and these
additional related initiatives. As described in “Risk Factors,” the magnitude of the many new initiatives we are undertaking
may increase our operational risk.