Fannie Mae 2014 Annual Report Download - page 92

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Table 16: Single-Family Business Results
For the Year Ended December 31, Variance
2014 2013 2012 2014 vs. 2013 2013 vs. 2012
(Dollars in millions)
Net interest income (loss)(1) . . . . . . . . . . . . . . . . $ 6 $ 205 $ (790) $ (199) $ 995
Guaranty fee income(2) . . . . . . . . . . . . . . . . . . . . 11,702 10,468 8,151 1,234 2,317
Credit-related income(3). . . . . . . . . . . . . . . . . . . . 3,625 11,205 919 (7,580) 10,286
TCCA fees(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,375) (1,001)(238)(374)(763)
Other expenses(4) . . . . . . . . . . . . . . . . . . . . . . . . . (1,983) (1,711)(1,672)(272)(39)
Income before federal income taxes . . . . . . . . . . 11,975 19,166 6,370 (7,191) 12,796
(Provision) benefit for federal income taxes. . . . (3,496) 29,110 (80)(32,606) 29,190
Net income attributable to Fannie Mae. . . . . . . . $ 8,479 $ 48,276 $ 6,290 $ (39,797) $ 41,986
Other key performance data:
Securitization Activity/New Business
Single-family Fannie Mae MBS issuances. . . . . $ 375,676 $ 733,111 $ 827,749
Credit Guaranty Activity
Average single-family guaranty book of
business(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,867,787 $ 2,855,821 $ 2,843,718
Single-family effective guaranty fee rate (in
basis points)(2)(6). . . . . . . . . . . . . . . . . . . . . . . . 40.8 36.7 28.7
Single-family average charged guaranty fee on
new acquisitions (in basis points)(2)(7) . . . . . . . 62.9 57.4 39.9
Single-family serious delinquency rate, at end
of period(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.89 % 2.38 % 3.29 %
Market
Single-family mortgage debt outstanding, at
end of period (total U.S. market)(9) . . . . . . . . . . . $ 9,855,232 $ 9,886,512 $9,982,578
30-year mortgage rate, at end of period(10) . . . . . 3.87 % 4.48 % 3.35 %
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(1) Includes the cost to reimburse the Capital Markets group for interest income not recognized for loans in our retained mortgage portfolio
on nonaccrual status, the cost to reimburse MBS trusts for interest income not recognized for loans in consolidated trusts on nonaccrual
status and income from cash payments received on loans that have been placed on nonaccrual status.
(2) Includes the impact of a 10 basis point guaranty fee increase implemented pursuant to the TCCA, the incremental revenue from which
must be remitted to Treasury. The resulting revenue is included in guaranty fee income and the expense is recognized in “TCCA fees.”
(3) Consists of the benefit for credit losses and foreclosed property (expense) income.
(4) Consists of investment gains (losses), net, fair value losses, net, losses from partnership investments, fee and other income,
administrative expenses and other expenses.
(5) Our single-family guaranty book of business consists of (a) single-family mortgage loans of Fannie Mae, (b) single-family mortgage
loans underlying Fannie Mae MBS, and (c) other credit enhancements that we provide on single-family mortgage assets, such as long-
term standby commitments. It excludes non-Fannie Mae mortgage-related securities held in our retained mortgage portfolio for which
we do not provide a guaranty.
(6) Calculated based on Single-Family segment guaranty fee income divided by the average single-family guaranty book of business,
expressed in basis points.
(7) Calculated based on the average contractual fee rate for our single-family guaranty arrangements entered into during the period plus the
recognition of any upfront cash payments ratably over an estimated average life, expressed in basis points.
(8) Calculated based on the number of single-family conventional loans that are 90 days or more past due or in the foreclosure process,
divided by the number of loans in our single-family conventional guaranty book of business.
(9) Information labeled as of December 31, 2014 is as of September 30, 2014 and is based on the Federal Reserve’s December 2014
mortgage debt outstanding release, the latest date for which the Federal Reserve has estimated mortgage debt outstanding for single-
family residences. Prior period amounts may have been changed to reflect revised historical data from the Federal Reserve.