Fannie Mae 2014 Annual Report Download - page 94

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Multifamily Business Results
Multifamily business results primarily reflect our multifamily guaranty business. Our multifamily business results also
include activity relating to our low-income housing tax credit (“LIHTC”) investments and equity investments. Although we
are not currently making new LIHTC or equity investments, we continue to make contractually required contributions for our
legacy investments. Activity from multifamily products is also reflected in the Capital Markets group results, which include
net interest income related to multifamily loans and securities held in our retained mortgage portfolio, gains and losses from
the sale of multifamily Fannie Mae MBS, mortgage loans and re-securitizations, and other miscellaneous income.
Table 17 displays the financial results of our Multifamily business for the periods indicated. The primary sources of revenue
for our Multifamily business are guaranty fee income and fee and other income. Other items that affect income or loss
primarily include credit-related income and administrative expenses.
Table 17: Multifamily Business Results
For the Year Ended December 31, Variance
2014 2013 2012 2014 vs. 2013 2013 vs. 2012
(Dollars in millions)
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,297 $ 1,217 $ 1,040 $ 80 $ 177
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 182 207 (16)(25)
Gains from partnership investments(1) . . . . . . . . . . . . . . 299 498 123 (199) 375
Credit-related income(2) . . . . . . . . . . . . . . . . . . . . . . . . . 197 583 187 (386) 396
Other expenses(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (338)(335)(250)(3)(85)
Income before federal income taxes. . . . . . . . . . . . . . . . 1,621 2,145 1,307 (524) 838
(Provision) benefit for federal income taxes . . . . . . . . . (158) 7,924 204 (8,082) 7,720
Net income attributable to Fannie Mae . . . . . . . . . . . . . $ 1,463 $ 10,069 $ 1,511 $ (8,606) $ 8,558
Other key performance data:
Securitization Activity/New Business
Multifamily new business volume(4) . . . . . . . . . . . . . . . $ 28,908 $ 28,752 $ 33,763
Multifamily units financed from new business volume.446,000 507,000 559,000
Multifamily Fannie Mae MBS issuances(5) . . . . . . . . . . $ 31,997 $ 31,403 $ 37,738
Multifamily Fannie Mae structured securities
issuances (issued by Capital Markets group) . . . . . . . $ 12,040 $ 10,185 $ 10,084
Multifamily Fannie Mae MBS outstanding, at end of
period(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $167,010 $148,724 $128,477
Credit Guaranty Activity
Average multifamily guaranty book of business(7). . . . . $200,150 $204,284 $199,797
Multifamily effective guaranty fee rate (in basis
points)(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.8 59.6 52.1
Multifamily credit loss ratio (in basis points)(9) . . . . . . . (2.3) 2.5 12.9
Multifamily serious delinquency rate, at end of period .0.05 % 0.10 %0.24 %
Percentage of multifamily guaranty book of business
with credit enhancement, at end of period . . . . . . . . . 93 % 91 % 90 %
Fannie Mae percentage of total multifamily mortgage
debt outstanding, at end of period(10) . . . . . . . . . . . . . 19 % 20 % 21 %
Portfolio Data
Additional net interest income earned on Fannie Mae
multifamily mortgage loans and MBS (included in
Capital Markets group’s results)(11). . . . . . . . . . . . . . . $ 507 $ 709 $ 827
Average Fannie Mae multifamily mortgage loans and
Fannie Mae MBS in Capital Markets group’s
portfolio(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,677 $ 74,613 $ 98,025