Fannie Mae 2014 Annual Report Download - page 183

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Goals and Related Metrics Performance Against Goal/Metric
Goal 3: Serve the housing market by being a major source of liquidity,
effectively managing the legacy book and assisting troubled borrowers.
Seriously delinquent loans. Reduce the number of seriously delinquent
single-family loans below 300,000 by the end of 2014.
Assisting troubled borrowers/MHA Program. Meet our obligations as
program administrator under the Financial Agency Agreement with
Treasury in support of Making Home Affordable (“MHA”) program.
Provide liquidity. Be a major provider of liquidity.
Expand access. Develop a plan to expand accessibility and affordability
of Fannie Mae products to more moderate and low income households in
a responsible and sustainable way.
Achieved this goal in all material respects. Fannie Mae’s
achievements on this goal included:
• The number of seriously delinquent loans in Fannie
Mae’s single-family conventional guaranty book of
business was 329,590 as of December 31, 2014. While
the final count exceeded 300,000, the company made
significant progress, with a net reduction of 89,247
seriously delinquent single-family loans in 2014.
• The company met its program administrator obligations
under its 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.
• Fannie Mae provided approximately $434 billion in
liquidity to the mortgage market in 2014 through its
purchases and guarantees of loans and securities. This
liquidity enabled borrowers to complete approximately
937,000 mortgage refinancings and approximately
887,000 home purchases, and provided financing for
approximately 446,000 units of multifamily housing.
• The company’s activities to expand accessibility and
affordability of Fannie Mae products to more moderate
and low income households in a responsible and
sustainable way included changing the company’s
eligibility requirements to increase the maximum LTV
ratio for loans to first-time home buyers from 95% to
97%. For more information on this change and Fannie
Mae’s other activities to expand access, see “Business—
Executive Summary—Single-Family Guaranty Book of
Business—Providing Targeted Access to Credit
Opportunities for Creditworthy Borrowers.”
Goal 4: Improve the company’s risk, control and compliance
environment.
Resolve controls issues. Resolve all high priority internal audit issues and
risk and control matters identified by the Federal Housing Finance
Agency (“FHFA”) within established timeframes or mutually acceptable
extensions.
Prevent new controls issues. Prevent new SOX material weaknesses and
significant deficiencies.
Remediation plans and responses. Submit remediation plans and
responses to FHFA-identified risk and control matters within established
timeframes.
Reduce repeat “needs improvement” and “unsatisfactory” internal
audit reports. Reduce the percentage of repeat “needs improvement” and
“unsatisfactory” internal audit reports.
Enterprise Risk Management (“ERM”) goals. Accomplish the 2014
ERM goals as reviewed by the Board’s Risk Policy and Capital
Committee.
Compliance. Resolve all compliance action items within established
timeframes or mutually acceptable extensions.
Safety and soundness. Make substantial progress on the following safety
and soundness initiatives in accordance with the 2014 Investment Plan as
reviewed and modified from time to time by the Board’s Strategic
Initiatives Committee:
• Replacing our securities accounting and capital markets
infrastructure; and
• Transforming the structure and function of our data centers.
Achieved this goal. Fannie Mae improved its risk, control
and compliance environment in 2014. The company’s
accomplishments in this area included: accomplishing all
ERM goals, including improving enterprise risk management
by implementing an enhanced economic capital framework
and risk appetite for measuring and managing the company’s
business activities, including modeling, reporting, policies
and governance; and making substantial progress on its
initiatives to replace the company’s securities accounting and
capital markets infrastructure, and to transform the structure
and function of its data centers to increase capacity and
strengthen its infrastructure.