Fannie Mae 2014 Annual Report Download - page 243

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-28
As of December 31,
2014(1) 2013(1)
Primary Alt-A Other Primary Alt-A Other
(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
Less than or equal to 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,156,165 $ 60,851 $22,558 $2,073,079 $ 61,670 $24,112
Greater than 80% and less than or equal to 90% . . . . . . . . . . . 261,709 15,151 6,046 276,011 16,794 6,947
Greater than 90% and less than or equal to 100% . . . . . . . . . . 140,778 12,490 5,236 153,474 14,709 6,402
Greater than 100% and less than or equal to 110% . . . . . . . . . 43,014 8,998 3,900 59,630 11,006 5,146
Greater than 110% and less than or equal to 120%. . . . . . . . . 23,439 6,033 2,615 33,954 7,742 3,691
Greater than 120% and less than or equal to 125%. . . . . . . . . 7,529 2,114 904 11,256 2,951 1,406
Greater than 125% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,586 7,124 3,000 41,893 12,637 5,587
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,656,220 $112,761 $44,259 $2,649,297 $127,509 $53,291
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(1) Excludes $45.3 billion and $48.6 billion as of December 31, 2014 and 2013, respectively, of mortgage loans guaranteed or insured, in
whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse
mortgages for which we do not calculate an estimated mark-to-market LTV ratio.
(2) The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported
period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates
periodic changes in home value.
The following table displays the total recorded investment in our multifamily HFI loans by credit quality indicator as of
December 31, 2014 and 2013, excluding loans for which we have elected the fair value option. The multifamily credit quality
indicator is based on available data through the end of each period presented.
As of December 31,
2014 2013
(Dollars in millions)
Credit risk profile by internally assigned grade:(1)
Pass. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 182,079 $ 176,528
Special Mention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,070 2,234
Substandard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,842 6,758
Doubtful . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 458
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 189,233 $ 185,978
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(1) Pass (loan is current and adequately protected by the current financial strength and debt service capacity of the borrower); special
mention (loan with signs of potential weakness); substandard (loan with a well defined weakness that jeopardizes the timely full
repayment); and doubtful (loan with a weakness that makes collection or liquidation in full highly questionable and improbable based
on existing conditions and values).
Individually Impaired Loans
Individually impaired loans include TDRs, acquired credit-impaired loans and multifamily loans that we have assessed as
probable that we will not collect all contractual amounts due, regardless of whether we are currently accruing interest. The
following tables display the total unpaid principal balance, recorded investment and related allowance as of December 31,
2014 and 2013, and average recorded investment and interest income recognized for the years ended December 31, 2014,
2013 and 2012 for individually impaired loans.