Fannie Mae 2014 Annual Report Download - page 246

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-31
The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a
combination of both. During the years ended December 31, 2014 and 2013, the average term extension of a single-family
modified loan was 161 months and 154 months, respectively, and the average interest rate reduction was 0.99 and 1.68
percentage points, respectively.
The following table displays the number of loans and recorded investment in loans restructured in a TDR for the years ended
December 31, 2014 and 2013.
For the Year Ended December 31,
2014 2013
Number of
Loans Recorded
Investment Number of Loans Recorded
Investment
(Dollars in millions)
Single-family:
Primary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,956 $ 14,301 126,998 $ 19,016
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 47 312 35
Alt-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,715 2,441 21,471 3,794
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,357 686 6,226 1,378
Total single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,393 17,475 155,007 24,223
Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 853 33 213
Total troubled debt restructurings . . . . . . . . . . . . . . . . . . . . . . . . . 119,412 $ 18,328 155,040 $ 24,436
The following table displays the number of loans and our recorded investment in these loans at the time of payment default
for the years ended December 31, 2014 and 2013 for loans that were restructured in a TDR in the twelve months prior to the
payment default. For purposes of this disclosure, we define loans that had a payment default as: single-family and
multifamily loans with completed TDRs that liquidated during the period, either through foreclosure, deed-in-lieu of
foreclosure or a short sale; single-family loans with completed modifications that are two or more months delinquent during
the period; or multifamily loans with completed modifications that are one or more months delinquent during the period.
For the Year Ended December 31,
2014 2013
Number of
Loans Recorded
Investment Number of Loans Recorded
Investment
(Dollars in millions)
Single-family:
Primary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,853 $ 5,095 45,539 $ 6,978
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 15 130 17
Alt-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,392 960 9,601 1,732
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,738 387 3,093 685
Total single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,107 6,457 58,363 9,412
Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 42 9 64
Total TDRs that subsequently defaulted . . . . . . . . . . . . . . . . . . . . . 41,116 $ 6,499 58,372 $ 9,476
4. Allowance for Loan Losses
We maintain an allowance for loan losses for HFI loans held by Fannie Mae and loans backing Fannie Mae MBS issued from
consolidated trusts. When calculating our allowance for loan losses, we consider our net recorded investment in the loan at
the balance sheet date, which includes interest income only while the loan was on accrual status.