Fannie Mae 2013 Annual Report Download - page 21

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summarized in the table below and described in more detail following this table. We also summarize in the table below the
key sources of revenue for each of our segments and the primary expenses.
Business Segment Primary Business Activities Primary Drivers of Revenue Primary Drivers of Expense
Single-Family Mortgage acquisitions: Works
with our lender customers to
acquire single-family mortgage
loans through lender swap
transactions or, working also
with our Capital Markets group,
through loan purchases
Credit risk management: Prices
and manages the credit risk on
loans in our single-family
guaranty book of business
Credit loss management: Works
to prevent foreclosures and
reduce costs of defaulted loans
through home retention solutions
and foreclosure alternatives,
through management of
foreclosures and REO, and
through pursuing contractual
remedies from lenders, servicers
and providers of credit
enhancement
Guaranty fees: Compensation for
assuming and managing the
credit risk on our single-family
guaranty book of business
Interest income not recognized:
Consists of reimbursement costs
for interest income not
recognized for loans on
nonaccrual status in our retained
mortgage portfolio or in
consolidated trusts, which are
recorded as a reduction to our
interest income
Fee and other income:
Compensation received for
providing lender services
Credit-related expense: Consists
of provision for single-family
loan losses, provision for single-
family guaranty losses and
foreclosed property expense on
loans underlying our single-
family guaranty book of business
Administrative expenses:
Consists of salaries and benefits,
occupancy costs, professional
services, and other expenses
associated with our Single-
Family business operations
Remittances to Treasury of a
portion of our guaranty fees:
Consists of amounts remitted to
Treasury pursuant to the TCCA,
which we expect will increase in
future periods
Multifamily Mortgage securitizations: Works
with our lender customers to
securitize multifamily mortgage
loans delivered to us by lenders
into Fannie Mae MBS in lender
swap transactions
Credit risk management: Prices
and manages the credit risk on
loans in our multifamily guaranty
book of business
Credit loss management: Works
to prevent foreclosures and
reduce costs of defaulted loans
through foreclosure alternatives,
through management of
foreclosures and REO, and
through pursuing contractual
remedies from lenders, servicers
and providers of credit
enhancement
Guaranty fees: Compensation for
assuming and managing the
credit risk on our multifamily
guaranty book of business
Fee and other income: Other fees
associated with multifamily
business activities
Credit-related expense: Consists
of provision for multifamily
credit losses and foreclosed
property expense on loans
underlying our multifamily
guaranty book of business
Administrative expenses:
Consists of salaries and benefits,
occupancy costs, professional
services, and other expenses
associated with our Multifamily
business operations