Fannie Mae 2014 Annual Report Download - page 247

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-32
The following table displays changes in single-family, multifamily and total allowance for loan losses for the years ended
December 31, 2014, 2013 and 2012.
For the Year Ended December 31,
2014 2013 2012
Of
Fannie
Mae
Of
Consolidated
Trusts Total
Of
Fannie
Mae
Of
Consolidated
Trusts Total
Of
Fannie
Mae
Of
Consolidated
Trusts Total
(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance, January 1 . . . . . . . $ 40,202 $ 3,105 $ 43,307 $ 49,848 $ 7,839 $ 57,687 $ 56,294 $ 14,339 $ 70,633
(Benefit) provision for loan losses(1) (4,334) 553 (3,781)(6,751)(2,145)(8,896)(1,482) 465 (1,017)
Charge-offs(2) . . . . . . . . . . . . . . . . . . (6,168) (225) (6,393)(8,458)(256)(8,714)(14,055)(823)(14,878)
Recoveries . . . . . . . . . . . . . . . . . . . . 1,190 250 1,440 2,115 511 2,626 1,632 152 1,784
Transfers(3) . . . . . . . . . . . . . . . . . . . . 1,513 (1,513) — 2,932 (2,932) — 6,437 (6,437) —
Other(4) . . . . . . . . . . . . . . . . . . . . . . . 553 51 604 516 88 604 1,022 143 1,165
Ending balance, December 31 . . . . . . . $ 32,956 $ 2,221 $ 35,177 $ 40,202 $ 3,105 $ 43,307 $ 49,848 $ 7,839 $ 57,687
Multifamily allowance for loan losses:
Beginning balance, January 1 . . . . . . . $ 319 $ 220 $ 539 $ 671 $ 437 $ 1,108 $ 1,015 $ 508 $ 1,523
Benefit for loan losses(1) . . . . . . . . . . (91) (13) (104)(233)(187)(420)(131)(43)(174)
Charge-offs. . . . . . . . . . . . . . . . . . . . (76) — (76)(153) — (153)(261) — (261)
Transfers(3) . . . . . . . . . . . . . . . . . . . . 4 (4) — 30 (30) — 29 (29) —
Other(4) . . . . . . . . . . . . . . . . . . . . . . . 5 — 5 4 — 4 19 1 20
Ending balance, December 31 . . . . . . . $ 161 $ 203 $ 364 $ 319 $ 220 $ 539 $ 671 $ 437 $ 1,108
Total allowance for loan losses:
Beginning balance, January 1 . . . . . . . $ 40,521 $ 3,325 $ 43,846 $ 50,519 $ 8,276 $ 58,795 $ 57,309 $ 14,847 $ 72,156
(Benefit) provision for loan losses(1) (4,425) 540 (3,885)(6,984)(2,332)(9,316)(1,613) 422 (1,191)
Charge-offs(2) . . . . . . . . . . . . . . . . . . (6,244) (225) (6,469)(8,611)(256)(8,867)(14,316)(823)(15,139)
Recoveries . . . . . . . . . . . . . . . . . . . . 1,190 250 1,440 2,115 511 2,626 1,632 152 1,784
Transfers(3) . . . . . . . . . . . . . . . . . . . . 1,517 (1,517) — 2,962 (2,962) — 6,466 (6,466) —
Other(4) . . . . . . . . . . . . . . . . . . . . . . . 558 51 609 520 88 608 1,041 144 1,185
Ending balance, December 31. . . . . . . $ 33,117 $ 2,424 $ 35,541 $ 40,521 $ 3,325 $ 43,846 $ 50,519 $ 8,276 $ 58,795
__________
(1) (Benefit) provision for loan losses is included in “Benefit for credit losses” in our consolidated statements of operations and
comprehensive income.
(2) While we purchase the substantial majority of loans that are four or more months delinquent from our MBS trusts, we do not exercise
this option to purchase loans during a forbearance period. Charge-offs of consolidated trusts generally represent loans that remained in
our consolidated trusts at the time of default.
(3) Includes transfers from trusts for delinquent loan purchases.
(4) Amounts represent the net activity recorded in our allowances for accrued interest receivable and preforeclosure property taxes and
insurance receivable from borrowers. The (benefit) provision for loan losses, charge-offs, recoveries and transfer activity included in
this table reflects all changes for both the allowance for loan losses and the valuation allowances for accrued interest and
preforeclosure property taxes and insurance receivable that relate to the mortgage loans.
As of December 31, 2014, the allowance for accrued interest receivable for loans of Fannie Mae was $671 million and for
loans of consolidated trusts was $52 million. As of December 31, 2013, the allowance for accrued interest receivable for
loans of Fannie Mae was $1.1 billion and for loans of consolidated trusts was $104 million.