Fannie Mae 2014 Annual Report Download - page 52

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• Our expectation that our institutional credit risk exposure to derivatives clearing organizations and certain of their
members will increase substantially in the future as cleared derivative contracts comprise a larger percentage of our
derivative instruments;
• Our expectation that the total amount we will receive under the terms of the Lehman Brothers Holdings, Inc.
(“Lehman Brothers”) Plan of Reorganization will constitute only a portion of the allowed amount;
• Our assumption that the guaranty fee income generated from our future business activity will largely replace the
guaranty fee income lost due to mortgage prepayments;
• Our expectations regarding our role as HAMP program administrator, including how long we will continue in the
role and amounts we will receive from Treasury pursuant to the role;
• Our plans and expectations relating to the distribution of benefits remaining under our terminated pension plans,
including our expectations regarding the timing and financial impact of the distributions;
• Our belief that our valuation allowance related to our capital loss carryforwards will likely expire unused;
• Our expectation that we will conclude the audit of our federal income tax returns related to the 2009 and 2010 tax
years with the IRS during 2015;
• Our expectation that we will receive full cash payment from only half of our non-governmental financial guarantor
counterparties; and
• Our expectation that the reasonably possible loss or range of loss arising from the Comprehensive Investment
Services vs. Mudd litigation will not have a material impact on our results of operations or financial condition.
Forward-looking statements reflect our management’s expectations, forecasts or predictions of future conditions, events or
results based on various assumptions and management’s estimates of trends and economic factors in the markets in which we
are active, as well as our business plans. They are not guarantees of future performance. By their nature, forward-looking
statements are subject to risks and uncertainties. Our actual results and financial condition may differ, possibly materially,
from the anticipated results and financial condition indicated in these forward-looking statements. There are a number of
factors that could cause actual conditions, events or results to differ materially from those described in the forward-looking
statements contained in this report, including, but not limited to, the following: the uncertainty of our future; legislative and
regulatory changes affecting us; the timing and level of, as well as regional variation in, home price changes; changes in
interest rates, unemployment rates and other macroeconomic and housing market variables; our future guaranty fee pricing,
including any directive from FHFA to change our guaranty fee pricing, and the impact of that pricing on our guaranty fee
revenues and competitive environment; challenges we face in retaining and hiring qualified employees; our future serious
delinquency rates; the deteriorated credit performance of many loans in our guaranty book of business; the conservatorship
and its effect on our business; the investment by Treasury and its effect on our business; adverse effects from activities we
undertake to support the mortgage market and help borrowers; actions we may be required to take by FHFA, as our
conservator or as our regulator; our future objectives and activities in support of those objectives, including actions we may
take to reach additional underserved creditworthy borrowers; a decrease in our credit ratings; limitations on our ability to
access the debt capital markets; disruptions in the housing and credit markets; significant changes in modification and
foreclosure activity; changes in borrower behavior; the effectiveness of our loss mitigation strategies, management of our
REO inventory and pursuit of contractual remedies; defaults by one or more institutional counterparties; resolution or
settlement agreements we may enter into with our counterparties; our need to rely on third parties to fully achieve some of
our corporate objectives; our reliance on mortgage servicers; changes in GAAP; guidance by the Financial Accounting
Standards Board (“FASB”); future changes to our accounting policies; changes in the fair value of our assets and liabilities;
operational control weaknesses; our reliance on models; future updates to our models, including the assumptions used by
these models; the level and volatility of interest rates and credit spreads; changes in the fiscal and monetary policies of the
Federal Reserve; changes in the structure and regulation of the financial services industry; credit availability; global political
risks; natural disasters, terrorist attacks, pandemics or other major disruptive events; information security breaches; and those
factors described in “Risk Factors,” as well as the factors described in “Executive Summary—Outlook—Factors that Could
Cause Actual Results to be Materially Different from our Estimates and Expectations.”
Readers are cautioned to place forward-looking statements in this report or that we make from time to time into proper
context by carefully considering the factors discussed in this report. These forward-looking statements are representative only
as of the date they are made, and we undertake no obligation to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under the federal securities laws.