Fannie Mae 2013 Annual Report Download - page 97

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Table 21: Multifamily Business Results
For the Year Ended December 31, Variance
2013 2012 2011 2013 vs. 2012 2012 vs. 2011
(Dollars in millions)
Guaranty fee income(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,217 $ 1,040 $ 884 $ 177 $ 156
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 207 218 (25)(11)
Gains from partnership investments(2) . . . . . . . . . . . . . . . . . . . . 498 123 81 375 42
Credit-related income (expense)(3) . . . . . . . . . . . . . . . . . . . . . . . 583 187 (280) 396 467
Other expenses(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (335)(250)(259)(85) 9
Income before federal income taxes. . . . . . . . . . . . . . . . . . . . . . 2,145 1,307 644 838 663
Benefit (provision) for federal income taxes(5) . . . . . . . . . . . . . . 7,924 204 (61) 7,720 265
Net income attributable to Fannie Mae . . . . . . . . . . . . . . . . . . . $ 10,069 $ 1,511 $ 583 $ 8,558 $ 928
Other key performance data:
Multifamily effective guaranty fee rate (in basis points)(6). . . . . 59.6 52.1 46.0
Multifamily credit loss performance ratio (in basis points)(7). . . 2.5 12.9 20.4
Average multifamily guaranty book of business(8) . . . . . . . . . . . $204,284 $199,797 $191,984
Multifamily new business volume(9). . . . . . . . . . . . . . . . . . . . . . $ 28,752 $ 33,763 $ 24,356
Multifamily units financed from new business volume . . . . . . . 507,000 559,000 423,000
Multifamily Fannie Mae MBS issuances(10) . . . . . . . . . . . . . . . . $ 31,403 $ 37,738 $ 34,066
Multifamily Fannie Mae structured securities issuances
(issued by Capital Markets group) . . . . . . . . . . . . . . . . . . . . . $ 10,185 $ 10,084 $ 6,435
Additional net interest income earned on Fannie Mae
multifamily mortgage loans and MBS (included in Capital
Markets group’s results)(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 709 $ 827 $ 873
Average Fannie Mae multifamily mortgage loans and MBS in
Capital Markets group’s portfolio(12). . . . . . . . . . . . . . . . . . . . $ 74,613 $ 98,025 $110,748
As of December 31,
2013 2012
(Dollars in millions)
Multifamily serious delinquency rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10 % 0.24 %
Percentage of multifamily guaranty book of business with credit enhancement. . . . . . . . . . . . . 91 % 90 %
Fannie Mae percentage of total multifamily mortgage debt outstanding(13) . . . . . . . . . . . . . . . . 21 % 22 %
Multifamily Fannie Mae MBS outstanding(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,724 $128,477
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(1) Guaranty fee income related to unconsolidated Fannie Mae MBS trusts and other credit enhancement arrangements is included in fee
and other income in our consolidated statements of operations and comprehensive income (loss).
(2) Gains from partnership investments are included in other expenses in our consolidated statements of operations and comprehensive
income (loss). Gains from partnership investments are reported using the equity method of accounting. As a result, net income
attributable to noncontrolling interest from partnership investments is not included in income for the Multifamily segment.
(3) Consists of the benefit (provision) for credit losses and foreclosed property income (expense).
(4) Consists of net interest loss, investment gains, net, administrative expenses and other (expenses) income.
(5) The benefit for 2013 primarily represents the release of the substantial majority of our valuation allowance against the portion of our
deferred tax assets that we attribute to our Multifamily segment based on the nature of the item.
(6) Calculated based on Multifamily segment guaranty fee income divided by the average multifamily guaranty book of business,
expressed in basis points.
(7) Calculated based on Multifamily segment credit losses divided by the average multifamily guaranty book of business, expressed in
basis points.