Fannie Mae 2013 Annual Report Download - page 190

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Goals and Related Metrics Performance Against Goal/Metric
Expenses: Ensure core administrative expenses do not exceed 2013 Plan
of $2.0 billion. Achieved this metric, with core administrative expenses of $1.9 billion in 2013, $120 million below the 2013 Plan. (Core
administrative expenses exclude $673 million in costs
relating to the credit organization, Treasury’s Making Home
Affordable (“MHA”) program and extraordinary litigation
and severance expenses that are included in administrative
expenses in our statement of operations for 2013.)
Goal 2: Serve the housing market by being a major source of liquidity,
effectively managing our legacy book of business and assisting troubled
borrowers.
Achieved this goal.
Seriously delinquent loans. Reduce the number of seriously delinquent
single-family loans below 500,000. Achieved this metric. Single-family seriously delinquent loans were 418,837 as of December 31, 2013, a net reduction
of 157,754 seriously delinquent loans during 2013.
Assisting Troubled Borrowers/MHA Program: Meet our obligations as
program administrator of Treasury’s MHA program. Achieved this metric by meeting our program administrator obligations under our financial agency agreement with
Treasury, which included deploying technology releases
related to the MHA system of record, overseeing borrower
outreach events in hard hit communities, administering
incentive payments, supporting policy implementation and
industry trainings, and overseeing program call centers.
Goal 3: Improve the company’s risk, control and compliance
environment. Substantially achieved this goal.
Resolve controls issues: Resolve all high priority internal audit issues and
significant deficiencies in our internal control over financial reporting
within agreed timeframes.
Partially achieved this goal by resolving a substantial
majority of high priority internal audit issues and remediating
all significant deficiencies due by year end.
Prevent new controls issues: Prevent the occurrence of any new material
weaknesses in our internal control over financial reporting or any repeat
internal audit findings.
Partially achieved this metric. No new material weaknesses
were identified in 2013; however, three repeat internal audit
findings were reported in 2013.
FHFA-identified risk and control matters
New matters: Submit remediation plans for all new risk and control
matters identified by FHFA within FHFA-mandated timeframes. Achieved this metric.
Implementation of remediation: Implement all remediation activity
within timeframes established with FHFA or mutually acceptable
extensions.
Achieved this metric.
Completing remediation: Complete all remediation in a sustained manner
as determined by the company’s internal auditors. Achieved this metric.
Reduce repeat internal audit reports of “needs improvement”: Reduce
the number of internal audit reports that receive a “needs improvement”
rating within consecutive review cycles.
Achieved this metric.
Foreclosure sales: Re-evaluate the bidding process for foreclosure sales. Achieved this metric.
Natural disaster losses: Assess aggregation of potential loss related to
natural disasters. Achieved this metric.
Enterprise Risk Management (“ERM”) goals: Accomplish the 2013
ERM goals as approved by the Risk Policy and Capital Committee of the
Board of Directors.
Achieved this metric.
Compliance: Complete all “action items” identified by the company’s
compliance group, which will be resolved within agreed upon timeframes
or mutually agreed extensions.
Achieved this metric.
Implement safety and soundness initiatives in accordance with a multi-
year investment plan that was approved and subsequently modified by
the Board of Directors
Loan Accounting: In connection with FHFA’s Advisory Bulletin
Regarding Framework for Adversely Classifying Loans, complete
specified 2013 milestones in preparation for implementing the first phase
of the company’s loan accounting platform by the first quarter of 2014.
Achieved this metric.
Data Center: Complete specified 2013 milestones in preparation for
establishing an out of region data center by the first quarter of 2014. Partially achieved this metric. Vendor-related issues required a reassessment of this objective, following which
management implemented a revised work plan and schedule
for completion of the out of region data center.