Fannie Mae 2014 Annual Report Download - page 240

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-25
consolidated VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide a
guaranty to the VIE.
Unconsolidated VIEs
We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include
securitization trusts and limited partnerships. The following table displays the carrying amount and classification of our assets
and liabilities that relate to our involvement with unconsolidated mortgage-backed trusts, as well as our maximum exposure
to loss and the total assets of these unconsolidated mortgage-backed trusts.
As of December 31,
2014 2013
(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets related to mortgage-
backed trusts:
Assets:
Trading securities:
Fannie Mae securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,790 $ 5,660
Non-Fannie Mae securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,073 8,559
Total trading securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,863 14,219
Available-for-sale securities:
Fannie Mae securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,043 5,866
Non-Fannie Mae securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,776 27,441
Total available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,819 33,307
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 119
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,440)(1,668)
Net carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,353 $ 45,977
Maximum exposure to loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,311 $ 54,148
Total assets of unconsolidated mortgage-backed trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . $253,554 $313,202
Our maximum exposure to loss generally represents the greater of our recorded investment in the entity or the unpaid
principal balance of the assets covered by our guaranty. However, our securities issued by Fannie Mae multi-class
resecuritization trusts that are not consolidated do not give rise to any additional exposure to loss as we already consolidate
the underlying collateral.
The total assets of our unconsolidated limited partnership investments were $5.8 billion and $6.8 billion as of December 31,
2014 and 2013, respectively.
Transfers of Financial Assets
We issue Fannie Mae MBS through portfolio securitization transactions by transferring pools of mortgage loans or mortgage-
related securities to one or more trusts or special purpose entities. We are considered to be the transferor when we transfer
assets from our own retained mortgage portfolio in a portfolio securitization transaction. For the years ended December 31,
2014, 2013 and 2012, the unpaid principal balance of portfolio securitizations was $160.4 billion, $228.5 billion and $225.1
billion, respectively.
We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class and multi-class
portfolio securitization trusts. As of December 31, 2014, the unpaid principal balance of retained interests was $6.3 billion
and its related fair value was $7.6 billion. The unpaid principal balance of retained interests was $7.2 billion and its related
fair value was $8.3 billion as of December 31, 2013. For the years ended December 31, 2014, 2013 and 2012, the principal
and interest received on retained interests was $1.5 billion, $1.7 billion and $2.4 billion, respectively.