Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'FEDERAL HOME LOAN MORTGAGE CORP | ' | ' |
Entity Central Index Key | '0001026214 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $877.60 |
Entity Common Stock, Shares Outstanding | ' | 650,039,533 | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income | ' | ' | ' |
Total mortgage loans | $64,883 | $74,049 | $86,282 |
Investments in securities | 7,768 | 10,583 | 12,791 |
Other | 51 | 86 | 67 |
Total interest income | 72,702 | 84,718 | 99,140 |
Interest expense | ' | ' | ' |
Total interest expense | -55,779 | -66,502 | -79,988 |
Expense related to derivatives | -455 | -605 | -755 |
Net interest income | 16,468 | 17,611 | 18,397 |
Benefit (provision) for credit losses | 2,465 | -1,890 | -10,702 |
Net interest income after benefit (provision) for credit losses | 18,933 | 15,721 | 7,695 |
Non-interest income (loss) | ' | ' | ' |
Gains (losses) on extinguishment of debt securities of consolidated trusts and other debt | 446 | -135 | -175 |
Derivative gains (losses) | 2,632 | -2,448 | -9,752 |
Impairment of available-for-sale securities: | ' | ' | ' |
Total other-than-temporary impairment of available-for-sale securities | -763 | -1,236 | -2,101 |
Portion of other-than-temporary impairment recognized in AOCI | -747 | -932 | -200 |
Net impairment of available-for-sale securities recognized in earnings | -1,510 | -2,168 | -2,301 |
Other gains (losses) on investment securities recognized in earnings | 301 | -1,522 | -896 |
Other income | 6,650 | 2,190 | 2,246 |
Non-interest income (loss) | 8,519 | -4,083 | -10,878 |
Non-interest expense | ' | ' | ' |
Salaries and employee benefits | -833 | -810 | -832 |
Professional services | -543 | -361 | -270 |
Occupancy expense | -54 | -57 | -62 |
Other administrative expenses | -375 | -333 | -342 |
Total administrative expenses | -1,805 | -1,561 | -1,506 |
Real estate owned operations income (expense) | 140 | -59 | -585 |
Other expenses | -424 | -573 | -392 |
Non-interest expense | -2,089 | -2,193 | -2,483 |
Income (loss) before income tax benefit | 25,363 | 9,445 | -5,666 |
Income tax benefit | 23,305 | 1,537 | 400 |
Net income (loss) | 48,668 | 10,982 | -5,266 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | 2,406 | 4,769 | 3,465 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 316 | 414 | 509 |
Changes in defined benefit plans | 210 | -126 | 62 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 2,932 | 5,057 | 4,036 |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
Net income (loss) | 48,668 | 10,982 | -5,266 |
Undistributed net worth sweep and senior preferred stock dividends | -52,199 | -13,056 | -6,498 |
Loss attributable to common stockholders | -3,531 | -2,074 | -11,764 |
Loss per common share — basic and diluted (in dollars per share) | ($1.09) | ($0.64) | ($3.63) |
Weighted average common shares outstanding (in thousands) - basic and diluted (in shares) | 3,238,047 | 3,240,028 | 3,244,896 |
Variable Interest Entity Primary Beneficiary | ' | ' | ' |
Interest income | ' | ' | ' |
Total mortgage loans | 57,189 | 65,089 | 77,158 |
Interest expense | ' | ' | ' |
Total interest expense | -47,350 | -56,109 | -67,119 |
Non-interest income (loss) | ' | ' | ' |
Gains (losses) on extinguishment of debt securities of consolidated trusts and other debt | 314 | -58 | -219 |
Freddie Mac parent | ' | ' | ' |
Interest income | ' | ' | ' |
Total mortgage loans | 7,694 | 8,960 | 9,124 |
Interest expense | ' | ' | ' |
Interest expense, short-term debt | -178 | -176 | -331 |
Interest expense, long-term debt | -8,251 | -10,217 | -12,538 |
Non-interest income (loss) | ' | ' | ' |
Gains (losses) on extinguishment of debt securities of consolidated trusts and other debt | $132 | ($77) | $44 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents (includes $1 and $1, respectively, related to our consolidated VIEs) | $11,281 | $8,513 |
Restricted cash and cash equivalents (includes $12,193 and $14,289, respectively, related to our consolidated VIEs) | 12,265 | 14,592 |
Federal funds sold and securities purchased under agreements to resell (includes $3,150 and $19,250, respectively, related to our consolidated VIEs) | 62,383 | 37,563 |
Investments in securities: | ' | ' |
Available-for-sale, at fair value (includes $70 and $132, respectively, pledged as collateral that may be repledged) | 128,919 | 174,896 |
Trading, at fair value (includes $365 and $0, respectively, pledged as collateral that may be repledged) | 23,404 | 41,492 |
Total investments in securities | 152,323 | 216,388 |
Held-for-investment, at amortized cost: | ' | ' |
Total held-for-investment mortgage loans, net | 1,676,063 | 1,672,109 |
Held-for-sale, at fair value | 8,727 | 14,238 |
Total mortgage loans, net | 1,684,790 | 1,686,347 |
Accrued interest receivable (includes $5,111 and $5,426, respectively, related to our consolidated VIEs) | 6,150 | 6,875 |
Derivative assets, net | 1,063 | 657 |
Real estate owned, net (includes $49 and $45, respectively, related to our consolidated VIEs) | 4,551 | 4,378 |
Deferred tax assets, net | 22,716 | 778 |
Other assets (Note 19) (includes $2,172 and $7,986, respectively, related to our consolidated VIEs) | 8,539 | 13,765 |
Total assets | 1,966,061 | 1,989,856 |
Liabilities | ' | ' |
Accrued interest payable (includes $4,702 and $5,142, respectively, related to our consolidated VIEs) | 6,803 | 7,710 |
Debt, net: | ' | ' |
Total debt, net | 1,940,751 | 1,967,042 |
Derivative liabilities, net | 180 | 178 |
Other liabilities (Note 19) (includes $6 and $1, respectively, related to our consolidated VIEs) | 5,492 | 6,099 |
Total liabilities | 1,953,226 | 1,981,029 |
Commitments and contingencies | ' | ' |
Equity (deficit) | ' | ' |
Senior preferred stock, at redemption value | 72,336 | 72,336 |
Preferred stock, at redemption value | 14,109 | 14,109 |
Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,039,533 shares and 650,033,623 shares outstanding, respectively | 0 | 0 |
Additional paid-in capital | 0 | 1 |
Retained earnings (accumulated deficit) | -69,719 | -70,796 |
AOCI, net of taxes, related to: | ' | ' |
Available-for-sale securities (includes $1,100 and $6,606, respectively, related to net unrealized losses on securities for which other-than-temporary impairment has been recognized in earnings) | 962 | -1,444 |
Cash flow hedge relationships | -1,000 | -1,316 |
Defined benefit plans | 32 | -178 |
Total AOCI, net of taxes | -6 | -2,938 |
Treasury stock, at cost, 75,824,353 shares and 75,830,263 shares, respectively | -3,885 | -3,885 |
Total equity (deficit) (See NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) for information on our dividend obligation to Treasury) | 12,835 | 8,827 |
Total liabilities and equity (deficit) | 1,966,061 | 1,989,856 |
Variable Interest Entity Primary Beneficiary | ' | ' |
Assets | ' | ' |
Cash and cash equivalents (includes $1 and $1, respectively, related to our consolidated VIEs) | 1 | 1 |
Restricted cash and cash equivalents (includes $12,193 and $14,289, respectively, related to our consolidated VIEs) | 12,193 | 14,289 |
Federal funds sold and securities purchased under agreements to resell (includes $3,150 and $19,250, respectively, related to our consolidated VIEs) | 3,150 | 19,250 |
Held-for-investment, at amortized cost: | ' | ' |
Total held-for-investment mortgage loans, net | 1,529,905 | 1,495,932 |
Held-for-sale, at fair value | 0 | 0 |
Total mortgage loans, net | 1,529,905 | 1,495,932 |
Accrued interest receivable (includes $5,111 and $5,426, respectively, related to our consolidated VIEs) | 5,111 | 5,426 |
Real estate owned, net (includes $49 and $45, respectively, related to our consolidated VIEs) | 49 | 45 |
Other assets (Note 19) (includes $2,172 and $7,986, respectively, related to our consolidated VIEs) | 2,172 | 7,986 |
Liabilities | ' | ' |
Accrued interest payable (includes $4,702 and $5,142, respectively, related to our consolidated VIEs) | 4,702 | 5,142 |
Debt, net: | ' | ' |
Total debt, net | 1,433,984 | 1,419,524 |
Other liabilities (Note 19) (includes $6 and $1, respectively, related to our consolidated VIEs) | 6 | 1 |
Freddie Mac parent | ' | ' |
Held-for-investment, at amortized cost: | ' | ' |
Total held-for-investment mortgage loans, net | 146,158 | 176,177 |
Held-for-sale, at fair value | 8,727 | 14,238 |
Total mortgage loans, net | 154,885 | 190,415 |
Debt, net: | ' | ' |
Total debt, net | $506,767 | $547,518 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents related to consolidated VIEs | $11,281 | $8,513 |
Restricted cash and cash equivalents related to consolidated VIEs | 12,265 | 14,592 |
Federal funds sold and securities purchased under agreements to resell related to consolidated VIEs | 62,383 | 37,563 |
Investments in securities: | ' | ' |
Available-for-sale securities pledged as collateral that may be repledged | 70 | 132 |
Trading securities pledged as collateral that may be repledged | 365 | 0 |
Mortgage loans: | ' | ' |
Allowance for loan losses, held-for-investment mortgage loans | 24,618 | 30,707 |
Accrued interest receivable related to consolidated VIEs | 6,150 | 6,875 |
Real estate owned, net related to consolidated VIEs | 4,551 | 4,378 |
Other assets related to consolidated VIEs | 8,539 | 13,765 |
Liabilities | ' | ' |
Accrued interest payable related to consolidated VIEs | 6,803 | 7,710 |
Other liabilities related to consolidated VIEs | 5,492 | 6,099 |
Equity (deficit) | ' | ' |
Common stock, par value | ' | ' |
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued | 725,863,886 | 725,863,886 |
Common stock, shares outstanding | 650,039,533 | 650,033,623 |
AOCI, net of taxes, related to: | ' | ' |
Available for sale securities other-than-temporary impairment adjustment, related to net unrealized losses on securities for which other-than-temporary impairment has been recognized in earnings | 1,100 | 6,606 |
Treasury stock, shares | 75,824,353 | 75,830,263 |
Variable Interest Entity Primary Beneficiary | ' | ' |
Assets | ' | ' |
Cash and cash equivalents related to consolidated VIEs | 1 | 1 |
Restricted cash and cash equivalents related to consolidated VIEs | 12,193 | 14,289 |
Federal funds sold and securities purchased under agreements to resell related to consolidated VIEs | 3,150 | 19,250 |
Mortgage loans: | ' | ' |
Allowance for loan losses, held-for-investment mortgage loans | 3,006 | 4,919 |
Accrued interest receivable related to consolidated VIEs | 5,111 | 5,426 |
Real estate owned, net related to consolidated VIEs | 49 | 45 |
Other assets related to consolidated VIEs | 2,172 | 7,986 |
Liabilities | ' | ' |
Accrued interest payable related to consolidated VIEs | 4,702 | 5,142 |
Debt Securities Recorded at Fair Value | 59 | 70 |
Other liabilities related to consolidated VIEs | 6 | 1 |
Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Allowance for loan losses, held-for-investment mortgage loans | 21,612 | 25,788 |
Liabilities | ' | ' |
Debt Securities Recorded at Fair Value | $2,683 | $2,187 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Deficit) (USD $) | Total | Senior Preferred Stock, at Redemption Value | Preferred Stock, at Redemption Value | Common Stock, at Par Value | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | AOCI, Net of Tax | Treasury Stock, at Cost |
Share data in Millions, unless otherwise specified | ||||||||
Beginning balance at Dec. 31, 2010 | ($401,000,000) | $64,200,000,000 | $14,109,000,000 | $0 | $7,000,000 | ($62,733,000,000) | ($12,031,000,000) | ($3,953,000,000) |
Beginning balance, Shares at Dec. 31, 2010 | ' | 1 | 464 | 649 | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -5,266,000,000 | ' | ' | ' | ' | -5,266,000,000 | ' | ' |
Other comprehensive income, net of taxes | 4,036,000,000 | ' | ' | ' | ' | ' | 4,036,000,000 | ' |
Comprehensive income | -1,230,000,000 | ' | ' | ' | ' | -5,266,000,000 | 4,036,000,000 | ' |
Increase in liquidation preference | 7,971,000,000 | 7,971,000,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 11,000,000 | ' | ' | ' | 11,000,000 | ' | ' | ' |
Income tax benefit from stock-based compensation | 1,000,000 | ' | ' | ' | 1,000,000 | ' | ' | ' |
Common stock issuances, shares | ' | ' | ' | 1 | ' | ' | ' | ' |
Common stock issuances | 0 | ' | ' | ' | -44,000,000 | ' | ' | 44,000,000 |
Transfer from retained earnings (accumulated deficit) to additional paid-in capital | 0 | ' | ' | ' | 28,000,000 | -28,000,000 | ' | ' |
Senior preferred stock dividends declared | -6,495,000,000 | ' | ' | ' | ' | -6,495,000,000 | ' | ' |
Dividend equivalent payments on expired stock options | -3,000,000 | ' | ' | ' | ' | -3,000,000 | ' | ' |
Ending balance at Dec. 31, 2011 | -146,000,000 | 72,171,000,000 | 14,109,000,000 | 0 | 3,000,000 | -74,525,000,000 | -7,995,000,000 | -3,909,000,000 |
Ending balance, Shares at Dec. 31, 2011 | ' | 1 | 464 | 650 | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 10,982,000,000 | ' | ' | ' | ' | 10,982,000,000 | ' | ' |
Other comprehensive income, net of taxes | 5,057,000,000 | ' | ' | ' | ' | ' | 5,057,000,000 | ' |
Comprehensive income | 16,039,000,000 | ' | ' | ' | ' | 10,982,000,000 | 5,057,000,000 | ' |
Increase in liquidation preference | 165,000,000 | 165,000,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 2,000,000 | ' | ' | ' | 2,000,000 | ' | ' | ' |
Income tax benefit from stock-based compensation | 1,000,000 | ' | ' | ' | 1,000,000 | ' | ' | ' |
Common stock issuances | 0 | ' | ' | ' | -24,000,000 | ' | ' | 24,000,000 |
Transfer from retained earnings (accumulated deficit) to additional paid-in capital | 0 | ' | ' | ' | 19,000,000 | -19,000,000 | ' | ' |
Senior preferred stock dividends declared | -7,233,000,000 | ' | ' | ' | ' | -7,233,000,000 | ' | ' |
Dividend equivalent payments on expired stock options | -1,000,000 | ' | ' | ' | ' | -1,000,000 | ' | ' |
Ending balance at Dec. 31, 2012 | 8,827,000,000 | 72,336,000,000 | 14,109,000,000 | 0 | 1,000,000 | -70,796,000,000 | -2,938,000,000 | -3,885,000,000 |
Ending balance, Shares at Dec. 31, 2012 | ' | 1 | 464 | 650 | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 48,668,000,000 | ' | ' | ' | ' | 48,668,000,000 | ' | ' |
Other comprehensive income, net of taxes | 2,932,000,000 | ' | ' | ' | ' | ' | 2,932,000,000 | ' |
Comprehensive income | 51,600,000,000 | ' | ' | ' | ' | 48,668,000,000 | 2,932,000,000 | ' |
Increase in liquidation preference | 0 | ' | ' | ' | ' | ' | ' | ' |
Common stock issuances | -1,000,000 | ' | ' | ' | -1,000,000 | ' | ' | ' |
Senior preferred stock dividends declared | -47,591,000,000 | ' | ' | ' | ' | -47,591,000,000 | ' | ' |
Ending balance at Dec. 31, 2013 | $12,835,000,000 | $72,336,000,000 | $14,109,000,000 | $0 | $0 | ($69,719,000,000) | ($6,000,000) | ($3,885,000,000) |
Ending balance, Shares at Dec. 31, 2013 | ' | 1 | 464 | 650 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) | $48,668,000,000 | $10,982,000,000 | ($5,266,000,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Derivative (gains) losses | -6,097,000,000 | -1,350,000,000 | 4,721,000,000 |
Asset related amortization — premiums, discounts, and basis adjustments | 4,627,000,000 | 4,624,000,000 | 2,063,000,000 |
Debt related amortization — premiums and discounts on certain debt securities and basis adjustments | -6,779,000,000 | -5,782,000,000 | -1,629,000,000 |
(Gains) losses on extinguishment of debt securities of consolidated trusts and other debt | -446,000,000 | 135,000,000 | 175,000,000 |
(Benefit) provision for credit losses | -2,465,000,000 | 1,890,000,000 | 10,702,000,000 |
Losses on investment activity | 1,545,000,000 | 2,680,000,000 | 2,368,000,000 |
Deferred income tax (benefit) expense | -23,422,000,000 | 3,000,000 | -117,000,000 |
Purchases of held-for-sale mortgage loans | -23,103,000,000 | -25,340,000,000 | -16,550,000,000 |
Sales of mortgage loans acquired as held-for-sale | 28,131,000,000 | 21,769,000,000 | 14,027,000,000 |
Repayments of mortgage loans acquired as held-for-sale | 167,000,000 | 59,000,000 | 54,000,000 |
Payments to servicers for pre-foreclosure expense and servicer incentive fees | -1,302,000,000 | -1,269,000,000 | -1,169,000,000 |
Change in: | ' | ' | ' |
Accrued interest receivable | 725,000,000 | 1,187,000,000 | 651,000,000 |
Accrued interest payable | -849,000,000 | -1,094,000,000 | -1,080,000,000 |
Income taxes receivable or payable | 117,000,000 | -1,523,000,000 | -281,000,000 |
Other, net | -2,957,000,000 | -1,722,000,000 | -1,727,000,000 |
Net cash provided by operating activities | 18,532,000,000 | 8,466,000,000 | 10,320,000,000 |
Cash flows from investing activities | ' | ' | ' |
Purchases of trading securities | -53,753,000,000 | -33,880,000,000 | -47,977,000,000 |
Proceeds from sales of trading securities | 57,380,000,000 | 17,641,000,000 | 33,734,000,000 |
Proceeds from maturities of trading securities | 12,542,000,000 | 31,106,000,000 | 14,545,000,000 |
Purchases of available-for-sale securities | -9,681,000,000 | -3,252,000,000 | -12,171,000,000 |
Proceeds from sales of available-for-sale securities | 24,675,000,000 | 1,729,000,000 | 2,643,000,000 |
Proceeds from maturities of available-for-sale securities | 33,630,000,000 | 38,517,000,000 | 34,316,000,000 |
Purchases of held-for-investment mortgage loans | -79,028,000,000 | -79,492,000,000 | -44,129,000,000 |
Repayments of mortgage loans acquired as held-for-investment | 410,643,000,000 | 522,242,000,000 | 369,981,000,000 |
Decrease (increase) in restricted cash | 2,327,000,000 | 13,471,000,000 | -19,952,000,000 |
Net proceeds from dispositions of real estate owned and other recoveries | 11,274,000,000 | 11,265,000,000 | 12,665,000,000 |
Net (increase) decrease in federal funds sold and securities purchased under agreements to resell | -24,820,000,000 | -25,519,000,000 | 34,480,000,000 |
Derivative premiums and terminations and swap collateral, net | 6,062,000,000 | 569,000,000 | -4,447,000,000 |
Net cash provided by investing activities | 391,251,000,000 | 494,397,000,000 | 373,688,000,000 |
Cash flows from financing activities | ' | ' | ' |
Increase in liquidation preference of senior preferred stock | 0 | 165,000,000 | 7,971,000,000 |
Payment of cash dividends on senior preferred stock | -47,591,000,000 | -7,233,000,000 | -6,495,000,000 |
Excess tax benefits associated with stock-based awards | 0 | 1,000,000 | 1,000,000 |
Payments of low-income housing tax credit partnerships notes payable | -7,000,000 | -13,000,000 | -50,000,000 |
Net cash used in financing activities | -407,015,000,000 | -522,792,000,000 | -392,578,000,000 |
Net increase (decrease) in cash and cash equivalents | 2,768,000,000 | -19,929,000,000 | -8,570,000,000 |
Cash and cash equivalents at beginning of year | 8,513,000,000 | 28,442,000,000 | 37,012,000,000 |
Cash and cash equivalents at end of year | 11,281,000,000 | 8,513,000,000 | 28,442,000,000 |
Cash paid (received) for: | ' | ' | ' |
Debt interest | 65,614,000,000 | 75,328,000,000 | 84,370,000,000 |
Net derivative interest carry | 3,701,000,000 | 4,044,000,000 | 4,791,000,000 |
Income taxes | 0 | -18,000,000 | -1,000,000 |
Non-cash investing and financing activities: | ' | ' | ' |
Underlying mortgage loans related to guarantor swap transactions | 340,900,000,000 | 358,074,000,000 | 280,621,000,000 |
Debt securities of consolidated trusts held by third parties established for guarantor swap transactions | 340,990,000,000 | 358,074,000,000 | 280,621,000,000 |
Elimination of investments in securities and debt securities of consolidated trusts held by third parties related to net consolidation of variable interest entities for which we are the primary beneficiary | -1,876,000,000 | -4,590,000,000 | 0 |
Transfers from held-for-investment mortgage loans to held-for-sale mortgage loans | 224,000,000 | 6,000,000 | 0 |
Parent Company [Member] | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Net premiums received from issuance of debt and net discounts paid on retirements of debt | -1,562,000,000 | -680,000,000 | -713,000,000 |
(Gains) losses on extinguishment of debt securities of consolidated trusts and other debt | -132,000,000 | 77,000,000 | -44,000,000 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from issuance of debt | 701,236,000,000 | 718,252,000,000 | 1,024,323,000,000 |
Repayments of debt | -740,842,000,000 | -831,393,000,000 | -1,078,050,000,000 |
Variable Interest Entity Primary Beneficiary Member | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Net premiums received from issuance of debt and net discounts paid on retirements of debt | 3,534,000,000 | 3,897,000,000 | 4,091,000,000 |
(Gains) losses on extinguishment of debt securities of consolidated trusts and other debt | -314,000,000 | 58,000,000 | 219,000,000 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from issuance of debt | 110,244,000,000 | 91,544,000,000 | 96,042,000,000 |
Repayments of debt | -430,055,000,000 | -494,115,000,000 | -436,320,000,000 |
Cash and cash equivalents at beginning of year | 1,000,000 | ' | ' |
Cash and cash equivalents at end of year | $1,000,000 | $1,000,000 | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Freddie Mac was chartered by Congress in 1970 to stabilize the nation’s residential mortgage market and expand opportunities for home ownership and affordable rental housing. Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market. We are a GSE regulated by FHFA, the SEC, HUD, and Treasury, and are currently operating under the conservatorship of FHFA. For more information on the roles of FHFA and Treasury, see “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS.” | ||
We are involved in the U.S. housing market by participating in the secondary mortgage market. We do not participate directly in the primary mortgage market. Our participation in the secondary mortgage market includes providing our credit guarantee for mortgages originated by mortgage lenders in the primary mortgage market and investing in mortgage loans and mortgage-related securities. | ||
Our operations consist of three reportable segments, which are based on the type of business activities each performs — Single-family Guarantee, Investments, and Multifamily. Our Single-family Guarantee segment reflects results from our single-family credit guarantee activities. In our Single-family Guarantee segment, we purchase and guarantee single-family mortgage loans originated by our seller/servicers in the primary mortgage market. In most instances, we use the mortgage securitization process to package the loans into guaranteed mortgage-related securities. We guarantee the payment of principal and interest on the mortgage-related securities in exchange for management and guarantee fees. Our Investments segment reflects results from three primary activities: (a) managing the company’s mortgage-related investments portfolio, excluding Multifamily segment investments; (b) managing the treasury function, including funding and liquidity, for the overall company; and (c) managing interest-rate risk for the overall company. In our Investments segment, we invest principally in mortgage-related securities and single-family performing mortgage loans. Our Multifamily segment reflects results from our investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. In our Multifamily segment, our primary business model is to purchase multifamily mortgage loans for aggregation and then securitization through issuance of multifamily K Certificates. See “NOTE 13: SEGMENT REPORTING” for additional information. | ||
We are focused on the following primary business objectives: (a) reducing taxpayer exposure to losses by reducing and managing our overall risk profile, especially to mortgage-related risks; (b) supporting U.S. homeowners and renters by providing lenders with a constant source of liquidity for mortgage products even when other sources of financing are scarce; (c) building a commercially strong and efficient business enterprise; and (d) positioning the company, in particular our people and infrastructure, to succeed in a to-be-determined "future state." For information regarding these objectives, see “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS — Business Objectives.” | ||
Throughout our consolidated financial statements and related notes, we use certain acronyms and terms which are defined in the “GLOSSARY.” | ||
Basis of Presentation | ||
The accompanying consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. | ||
Our current accounting policies are described below. We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going concern and in accordance with the delegation of authority from FHFA to our Board of Directors and management. Certain amounts in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. | ||
We evaluate the materiality of identified errors in the financial statements using both an income statement, or “rollover,” and a balance sheet, or “iron curtain,” approach, based on relevant quantitative and qualitative factors. Net income (loss) includes certain adjustments to correct immaterial errors related to previously reported periods. | ||
We recorded the cumulative effect of the correction of certain miscellaneous errors related to previously reported periods in the year ended December 31, 2013. We concluded that these errors are not material individually or in the aggregate to our previously issued consolidated financial statements for any of the periods affected, or to our earnings for the full year ended December 31, 2013, or to the trend of earnings. | ||
Use of Estimates | ||
The preparation of financial statements requires us to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses and gains and losses during the reporting period. Management has made significant estimates in preparing the financial statements, including, but not limited to, establishing the allowance for loan losses and reserve for guarantee losses, valuing financial instruments and other assets and liabilities, assessing impairments on investments, and assessing our ability to realize net deferred tax assets. Actual results could be different from these estimates. | ||
Change in Estimate | ||
Other-Than-Temporary Impairment of Non-Agency Mortgage-Related Securities | ||
During the fourth quarter of 2013, we incorporated new information which enhanced the assumptions used to estimate the contractual loan terms for certain modified loans collateralizing non-agency mortgage-related securities for which actual data about those terms was unavailable to the market. This enhancement resulted in a lower net present value of projected cash flows on our non-agency mortgage-related securities and increased our net other-than-temporary impairments recognized in earnings by $0.7 billion. | ||
Single-Family Loan Loss Reserve Severity | ||
During the second quarter of 2013, we updated our method of estimating loss severity rates for single-family loan loss reserves to change from the most recent six months of sales experience on our distressed property dispositions to the most recent three months of sales experience on our distressed property dispositions. This change did not have a material impact on our consolidated financial statements. | ||
Consolidation and Equity Method of Accounting | ||
The consolidated financial statements include our accounts and those of our subsidiaries. We consolidate entities in which we have a controlling financial interest. All intercompany transactions have been eliminated in consolidation. | ||
For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE or non-VIE. A VIE is an entity: (a) that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by another party; (b) where the group of equity holders does not have: (i) the power, through voting rights or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance; (ii) the obligation to absorb the entity’s expected losses; or (iii) the right to receive the entity’s expected residual returns; or (c) where the voting rights of some investors are disproportionate to their obligation to absorb expected losses or their right to expected residual returns (or both) and substantially all of the entity’s activities are conducted on behalf of an investor that has disproportionately few voting rights. | ||
We consolidate VIEs in which we hold a controlling financial interest and are therefore deemed to be the primary beneficiary. An enterprise has a controlling financial interest in, and thus is deemed to be the primary beneficiary of, a VIE if it has both: (a) the power to direct the activities of the VIE that most significantly impact its economic performance; and (b) exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We perform ongoing assessments to determine if we are the primary beneficiary of the VIEs with which we are involved and, as such, conclusions may change over time as the nature and extent of our involvement changes. | ||
We use securitization trusts in our securities issuance process that are VIEs. We are the primary beneficiary of trusts that issue our single-family PCs and certain Other Guarantee Transactions. See “NOTE 3: VARIABLE INTEREST ENTITIES” for more information. When we transfer assets into a VIE that we consolidate at the time of the transfer (or shortly thereafter), we recognize the assets and liabilities of the VIE at the amounts that they would have been recognized if they had not been transferred, and no gain or loss is recognized on these transfers. For all other VIEs that we consolidate, we recognize the assets and liabilities of the VIE at fair value, and we recognize a gain or loss for the difference between: (a) the fair value of the consideration paid and the fair value of any noncontrolling interests held by third parties; and (b) the net amount, as measured on a fair value basis, of the assets and liabilities consolidated. | ||
For entities that are not VIEs, the usual condition of a controlling financial interest is ownership of a majority voting interest in an entity. We use the equity method of accounting for entities over which we have the ability to exercise significant influence, but not control. | ||
Fair Value Measurements | ||
Consistent with the accounting guidance for fair value measurements and disclosures, we use a three-level fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure the fair value of assets and liabilities, giving highest priority to quoted prices in active markets and lowest priority to unobservable inputs. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements under this hierarchy are distinguished among three levels: quoted market prices, observable inputs, and unobservable inputs. We use quoted market prices and valuation techniques that seek to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs. Our inputs are based on the assumptions a market participant would use in valuing the asset or liability. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. When assets and liabilities are transferred between levels, we recognize the transfer as of the beginning of the period. See “NOTE 16: FAIR VALUE DISCLOSURES” for additional information regarding the fair value measurements and the hierarchy. | ||
Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities | ||
Overview | ||
When we securitize mortgages that we purchase, we issue mortgage-related securities such as PCs that can be sold to investors or held by us. We issue mortgage-related securities in the form of PCs, REMICs and Other Structured Securities, and Other Guarantee Transactions. Guarantor swaps are transactions where financial institutions exchange mortgage loans for PCs backed by these mortgage loans. Multilender swaps are similar to guarantor swaps, except that formed PC pools include loans that are contributed by more than one party. We issue PCs through various swap-based exchanges significantly more often than through cash-based transfers. We issue REMICs and Other Structured Securities in transactions in which securities dealers or investors sell us mortgage-related assets in exchange for REMICs and Other Structured Securities. We also issue Other Guarantee Transactions to third parties in exchange for non-Freddie Mac mortgage-related securities. | ||
PCs | ||
Our PCs are pass-through debt securities that represent undivided beneficial interests in a pool of mortgages held by a securitization trust. For our fixed-rate PCs, we guarantee the timely payment of interest and principal. For our ARM PCs, we guarantee the timely payment of the weighted average coupon interest rate for the underlying mortgage loans. We do not guarantee the timely payment of principal for ARM PCs; however, we do guarantee the full and final payment of principal. | ||
In return for providing our guarantee of the payment of principal and interest, we earn a management and guarantee fee that is paid to us over the life of an issued PC, representing a portion of the interest collected on the underlying loans. | ||
PC Trusts | ||
We are the primary beneficiary of VIE securitization trusts that issue our single-family PCs and therefore consolidate the assets and liabilities of these trusts at either their: (a) carrying value, if the underlying assets are contributed by us to the trust; or (b) fair value, for those securitization trusts established for our guarantor swap program. Mortgage loans underlying our issued single-family PCs are recognized on our consolidated balance sheets as mortgage loans held-for-investment by consolidated trusts, at amortized cost. The corresponding single-family PCs held by third parties are recognized on our consolidated balance sheets as debt securities of consolidated trusts held by third parties. Refer to “Mortgage Loans” and “Debt Securities Issued” below for further information on the subsequent accounting treatment of these assets and liabilities, respectively. | ||
REMICs and Other Structured Securities | ||
Our single-family REMICs and Other Structured Securities use resecuritization trusts that meet the definition of a VIE and represent beneficial interests in groups of PCs and other types of mortgage-related assets. We create these securities primarily by using PCs or previously issued REMICs and Other Structured Securities as collateral. Similar to our PCs, we guarantee the payment of principal and interest to the holders of the tranches of our REMICs and Other Structured Securities. However, for REMICs and Other Structured Securities where we have already guaranteed the underlying assets, there is no incremental exposure to credit loss assumed by us. | ||
With respect to the resecuritization trusts used for our single-family REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities, we do not have rights to receive benefits or obligations to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. Additionally, our involvement with these trusts does not provide us with any power that would enable us to direct the significant economic activities of these entities. Although we may be exposed to prepayment risk through our ownership of the securities issued by these trusts, we do not have the ability through our involvement with the trust to impact the economic risks to which we are exposed. As a result, we are not the primary beneficiary of, and therefore do not consolidate, the resecuritization trusts used for REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities, unless we hold substantially all of the outstanding beneficial interests that have been issued by the trust. | ||
We receive a transaction fee from third parties for issuing our single-family REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities. We defer the portion of the transaction fee that is equal to the estimated value of our future administrative responsibilities for these issued REMICs and Other Structured Securities. These responsibilities include ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting, and other required services. We estimate the value of these future responsibilities based on quotes from third-party vendors who perform each type of service and, where quotes are not available, based on our estimates of what those vendors would charge. The remaining portion of the transaction fee relates to compensation earned in connection with structuring-related services we rendered to third parties and is allocated between REMICs and Other Structured Securities we retain, if any, and the REMICs and Other Structured Securities acquired by third parties, based on the relative fair value of the securities. The portion of the fee allocated to any REMICs and Other Structured Securities we retain is deferred as a carrying value adjustment and is amortized into interest income using the effective interest method over the contractual lives of these securities. The fee allocated to REMICs and Other Structured Securities acquired by third parties is recognized immediately in earnings as other income. | ||
Our multifamily Other Structured Securities use securitization trusts that meet the definition of a VIE. Our multifamily Other Structured Securities typically involve our acquisition of tax-exempt multifamily housing revenue bonds, placement of those bonds in a securitization trust, and issuance of tax-exempt senior certificates as well as subordinate certificates that provide structural credit protection. The housing revenue bonds are collateralized by low- and moderate-income multifamily housing developments. We guarantee the principal and interest on the senior certificates and, because the underlying collateral is not already guaranteed by us, we receive a management and guarantee fee. | ||
With respect to the securitization trusts used for our multifamily Other Structured Securities whose underlying assets are multifamily housing revenue bonds, our involvement with these trusts either does not provide us with any power that would enable us to direct the significant economic activities of these entities or rights to receive benefits or obligations to absorb losses that could potentially be significant to the trusts. As a result, we are not the primary beneficiary of, and therefore do not consolidate, the securitization trusts used for Other Structured Securities whose underlying assets are multifamily housing revenue bonds. | ||
Other Guarantee Transactions | ||
Other Guarantee Transactions are mortgage-related securities that we issue to third parties in exchange for non-Freddie Mac mortgage-related securities. Other Guarantee Transactions typically involve us purchasing either the senior tranches from a non-Freddie Mac senior-subordinated securitization or single-class pass-through securities, placing the acquired assets into a securitization trust, providing a guarantee of the principal and interest of the acquired assets and issuing securities backed by these assets. To the extent that we are deemed to be the primary beneficiary of such a securitization trust, we recognize the mortgage loans underlying the Other Guarantee Transaction as mortgage loans held-for-investment, at amortized cost. Correspondingly, we recognize the issued securities held by third parties as debt securities of consolidated trusts. However, to the extent we are not deemed to be the primary beneficiary of such a securitization trust, we initially recognize a guarantee asset and a guarantee obligation at fair value to the extent a management and guarantee fee is charged. We do not receive transaction fees, apart from our management and guarantee fee, for these transactions. | ||
Our primary Other Guarantee Transactions are multifamily K Certificates. In substantially all of these transactions, we guarantee only the most senior tranches of the securities and our initial involvement with the trusts that issue the K Certificates does not provide us with any power that would enable us to direct the significant economic activities of these entities. As a result, we are not the primary beneficiary of, and therefore do not consolidate, these trusts when K Certificates are initially issued. To the extent that our involvement with the trusts changes, we evaluate whether we have become the primary beneficiary. | ||
Purchases and Sales of Freddie Mac Mortgage-Related Securities | ||
PCs | ||
When we purchase PCs that have been issued by consolidated PC trusts, we extinguish the outstanding debt securities of the related consolidated trust. We recognize a gain (loss) on extinguishment of the debt securities to the extent the amount paid to redeem the debt differs from its carrying value, adjusted for any related purchase commitments accounted for as derivatives. | ||
When we sell PCs that have been issued by consolidated PC trusts, we recognize a liability to the third-party beneficial interest holders of the related consolidated trust as debt securities of consolidated trusts held by third parties. That is, our sale of PCs issued by consolidated PC trusts is accounted for as the issuance of debt. | ||
Single-Class REMICs and Other Structured Securities | ||
The collateral for our single-class REMICs and Other Structured Securities includes PCs and previously issued single-class REMICs and Other Structured Securities. We do not consolidate these resecuritization trusts as we are not deemed to be the primary beneficiary of the trusts. Our single-class REMICs and Other Structured Securities pass through all of the cash flows of the underlying PCs directly to the holders of the securities and are deemed to be substantially the same as the underlying PCs. As a result, when we purchase single-class REMICs and Other Structured Securities, we extinguish a pro rata portion of the outstanding debt securities of the related PC trust on our consolidated balance sheets. | ||
When we sell single-class REMICs and Other Structured Securities, we recognize a liability to the third-party beneficial interest holders of the related consolidated PC trust as debt securities of consolidated trusts held by third parties. That is, our sale of single-class REMICs and Other Structured Securities is accounted for as the issuance of debt. | ||
Multiclass REMICs and Other Structured Securities | ||
The collateral for our single-family multiclass REMICs and Other Structured Securities includes PCs and previously issued REMICs and Other Structured Securities. We do not consolidate most of these resecuritization trusts as we are not deemed to be the primary beneficiary of the trusts unless we hold substantially all of the outstanding beneficial interests that have been issued by the trust. In our single-family multiclass REMICs and Other Structured Securities, the cash flows of the underlying PCs are divided (e.g., stripped and/or time tranched). Due primarily to this division of cash flows, these securities are not deemed to be substantially the same as the underlying PCs. As a result, when we purchase single-family multiclass REMICs and Other Structured Securities, we record these securities as investments in debt securities rather than as the extinguishment of debt since we are investing in the debt securities of a non-consolidated entity. See “Investments in Securities” for further information regarding our accounting for investments in multiclass REMICs and Other Structured Securities. | ||
We recognize, as assets, both the investment in single-family multiclass REMICs and Other Structured Securities and the mortgage loans backing the PCs held by the trusts which underlie the single-family multiclass REMICs and Other Structured Securities. Additionally, we recognize, as liabilities, the unsecured debt issued to third parties to fund the purchase of the single-family multiclass REMICs and Other Structured Securities as well as the debt issued to third parties of the PC trusts we consolidate which underlie the single-family multiclass REMICs and Other Structured Securities. This results in recognition of interest income from both assets and interest expense from both liabilities. | ||
The collateral for our multifamily multiclass Other Structured Securities typically includes multifamily housing revenue bonds which are collateralized by low- and moderate-income multifamily housing developments. We do not consolidate the securitization trusts that issue these securities as we are not deemed to be the primary beneficiary of the trusts. When we purchase multifamily multiclass Other Structured Securities, we record them as investments in debt securities. See “Investments in Securities” for further information regarding our accounting for investments in multiclass REMICs and Other Structured Securities. | ||
When we sell multiclass REMICs and Other Structured Securities in which we are not the primary beneficiary of the resecuritization trust, we account for the transfer in accordance with the accounting guidance for transfers of financial assets. To the extent the transfer of multiclass REMICs and Other Structured Securities qualifies as a sale, we de-recognize all assets sold and recognize all assets obtained and liabilities incurred. Any gain (loss) on the sale of multiclass REMICs and Other Structured Securities is reflected in our consolidated statements of comprehensive income as a component of other gains (losses) on investment securities recognized in earnings. To the extent the transfer of multiclass REMICs and Other Structured Securities does not qualify as a sale, we account for the transfer as a financing transaction and recognize a liability for the proceeds received from third parties in the transfer. | ||
Other Guarantee Commitments | ||
In certain circumstances, we also provide our guarantee of mortgage-related assets held by third parties, in exchange for a guarantee fee, without our securitization of the related assets. For example, we provide long-term standby commitments to certain of our single-family customers, which obligate us to purchase seriously delinquent loans that are covered by those agreements. We also provide guarantee commitments on multifamily housing revenue bonds that were issued by HFAs as well as guarantees under the TCLFP on securities backed by HFA bonds. | ||
Cash and Cash Equivalents | ||
Highly liquid investment securities that have an original maturity of three months or less are accounted for as cash equivalents. In addition, cash collateral that we have the right to use for general corporate purposes and that we obtain from counterparties to derivative contracts is recorded as cash and cash equivalents. | ||
Restricted Cash and Cash Equivalents | ||
Cash collateral accepted from counterparties that we do not have the right to use for general corporate purposes is recorded as restricted cash in our consolidated balance sheets. Restricted cash includes cash remittances received on the underlying assets of our consolidated trusts, which are deposited into a separate custodial account. These cash remittances include both scheduled and unscheduled principal and interest payments. The cash remittances are segregated in the separate custodial account until they are remitted to the PC, REMIC and Other Structured Securities holders on their respective security payment dates, and are not commingled with our general operating funds. As securities administrator, we invest the cash held in the custodial account, pending distribution to our PC, REMIC, and Other Structured Securities holders, in short-term investments and are entitled to the interest income earned on these short-term investments, which is recorded as interest income, other on our consolidated statements of comprehensive income. | ||
Mortgage Loans | ||
Upon acquisition, we classify a loan as either held-for-sale or held-for-investment. Mortgage loans that we have the ability and intent to hold for the foreseeable future are classified as held-for-investment. Loans we acquire and which we intend to securitize using an entity we will consolidate will be classified as held-for-investment both prior to and subsequent to their securitization, in accordance with our intent and ability to hold such loans for the foreseeable future. | ||
Held-for-investment mortgage loans are reported in our consolidated balance sheets at their outstanding UPB, net of deferred fees and other cost basis adjustments (including unamortized premiums and discounts, delivery fees and other pricing adjustments). These deferred items are amortized into interest income over the contractual lives of the loans using the effective interest method. We recognize interest income on an accrual basis except when we believe the collection of principal and interest in full is not reasonably assured. If the collection of principal and interest in full is not reasonably assured, we cease the accrual of interest income and any interest income accrued but uncollected is reversed. | ||
Mortgage loans not classified as held-for-investment are classified as held-for-sale. Held-for-sale loans are reported at lower-of-cost-or-fair-value on our consolidated balance sheets. Any excess of a held-for-sale loan’s cost over its fair value is recognized as a valuation allowance in other income on our consolidated statements of comprehensive income, with changes in this valuation allowance also being recorded in other income. Premiums, discounts, and other cost basis adjustments recognized upon acquisition on single-family loans classified as held-for-sale are deferred and not amortized. We elected the fair value option for multifamily mortgage loans held for sale that we intend to securitize and sell to investors. See “NOTE 16: FAIR VALUE DISCLOSURES — Fair Value Option — Multifamily Held-For-Sale Mortgage Loans” and “NOTE 16: FAIR VALUE DISCLOSURES — Fair Value Option — Changes in Fair Value under the Fair Value Option Election.” Thus, these multifamily mortgage loans are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value reported in other income in our consolidated statements of comprehensive income. We do not have any held-for-sale loans reported at the lower-of-cost-or-fair-value on our consolidated balance sheets as of December 31, 2013 or 2012. | ||
Cash flows related to mortgage loans held by our consolidated trusts are classified as either investing activities (e.g., principal repayments) or operating activities (e.g., interest payments received from borrowers included within net income (loss)). In addition, cash flows related to purchases of mortgage loans held-for-sale are classified in operating activities. When mortgage loans held-for-sale are sold or securitized, proceeds from the sale or securitization and any related gain or loss are classified in operating activities. | ||
Non-Performing Loans | ||
Non-performing loans consist of: (a) single-family and multifamily loans that have undergone a TDR; (b) single-family seriously delinquent loans; (c) multifamily loans that are three or more payments past due or in the process of foreclosure; and (d) multifamily loans that are deemed impaired based upon management judgment. We place mortgage loans on non-accrual status when we believe collectability of principal and interest in full is not reasonably assured, which generally occurs when a loan is three monthly payments past due, unless the loan is well secured and in the process of collection based upon an individual loan assessment. A loan is considered past due if a full payment of principal and interest is not received within one month of its due date. When a loan is placed on non-accrual status, any interest income accrued but uncollected is reversed. Thereafter, interest income is recognized only upon receipt of cash payments. | ||
A non-accrual mortgage loan may be returned to accrual status when the collectability of principal and interest in full is reasonably assured. For single-family loans, we determine that collectability is reasonably assured when we have received payment of principal and interest such that the loan becomes less than three monthly payments past due. For multifamily loans, the collectability of principal and interest is considered reasonably assured based on a quantitative and qualitative analysis of the factors specific to the loan being assessed. Upon a loan’s return to accrual status, all previously reversed interest income is recognized and amortization of any basis adjustments into interest income is resumed. | ||
Allowance for Loan Losses and Reserve for Guarantee Losses | ||
The allowance for loan losses and the reserve for guarantee losses represent estimates of probable incurred credit losses. The allowance for loan losses pertains to all single-family and multifamily loans classified as held-for-investment on our consolidated balance sheets whereas the reserve for guarantee losses relates to single-family and multifamily loans underlying our non-consolidated Freddie Mac mortgage-related securities and other guarantee commitments. Total held-for-investment mortgage loans, net are shown net of the allowance for loan losses on our consolidated balance sheets. The reserve for guarantee losses is included within other liabilities on our consolidated balance sheets. Collectively, we refer to our allowance for loan losses and our reserve for guarantee losses as our loan loss reserves. We recognize probable incurred losses by recording a charge to the provision for credit losses in our consolidated statements of comprehensive income. Determining the appropriateness of the loan loss reserves is a complex process that is subject to numerous estimates and assumptions requiring significant judgment about matters that involve a high degree of subjectivity. | ||
We estimate credit losses related to homogeneous pools of loans in accordance with the accounting guidance for contingencies. Accordingly, we maintain an allowance for loan losses on mortgage loans held-for-investment when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Loans that we evaluate for individual impairment are measured in accordance with the accounting guidance for receivables. | ||
For both the single-family and multifamily portfolios, we charge off (in full or in part) our recorded investment in a loan in the period it is determined that the loan (or a portion thereof) is uncollectible, which generally occurs at final disposition of the loan through foreclosure or other loss event. However, if losses are evident prior to final disposition, earlier recognition of a charge-off is required by our policies. We also consider charge-offs for certain very small balance loans and upon the occurrence of certain events such as natural disasters. A charge-off is also recorded if we realize a specific credit loss upon the modification of a loan in a TDR. We do not have any established threshold in terms of days past due beyond which we partially or fully charge-off loans. | ||
Single-Family Loans | ||
We determine single-family loan loss reserves both on a collective and individual basis. For further discussion on individually impaired single-family loans, refer to “Impaired Loans” below. | ||
We estimate loan loss reserves on homogeneous pools of single-family loans using a statistically based model that evaluates a variety of factors affecting collectability. The homogeneous pools of single-family mortgage loans are determined based on common underlying characteristics, including estimated current LTV ratios, trends in home prices, loan product type, and geographic region. In determining the loan loss reserves for single-family loans at the balance sheet date, we evaluate key inputs and factors including, but not limited to: | ||
• | estimated current LTV ratios and historical trends in home prices; | |
• | loan product type; | |
• | delinquency/default status and history; | |
• | actual and estimated rates of collateral loss severity for similar loans; | |
• | geographic location; | |
• | loan age; | |
• | sourcing channel; | |
• | occupancy type; | |
• | UPB at origination; | |
• | expected ability to partially mitigate losses through loan modification or other alternatives to foreclosure; | |
• | expected proceeds from mortgage insurance contracts that are contractually attached to a loan or other credit enhancements that were entered into contemporaneously with and in contemplation of a guarantee or loan purchase transaction; | |
• | expected repurchases of mortgage loans by seller/servicers; | |
• | counterparty credit of mortgage insurers and seller/servicers; | |
• | pre-foreclosure real estate taxes and insurance; | |
• | estimated selling costs should the underlying property ultimately be sold; and | |
• | trends in the timing of foreclosures. | |
For additional information on estimated current LTV ratios and single-family loan loss reserves, see “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES — Credit Quality of Mortgage Loans.” | ||
Freddie Mac relies upon third-parties to provide primary servicing for the performing and non-performing loan portfolio. At loan delivery, the seller provides us with the loan data, which includes loan characteristics and underwriting information. Each month, the servicers provide us with monthly loan level servicing data, including delinquency and loss information. | ||
Certain loan servicing data is reported to us on a real-time basis, such as loan pay-offs and foreclosure events. However, certain monthly servicing data, including delinquency status, is delivered on a one-month delay. For example, December loan delinquency data delivered to Freddie Mac at the end of December or beginning of January reflects the loan delinquency status related to the December 1 payment cycle. We incorporate the delinquency status data into our allowance for loan loss calculation generally without adjustment for the one-month delay. | ||
Our single-family loan loss reserve default models are estimated based on the most recent 12 months of actual loan performance data, including loan status and delinquency data reported by our servicers. The loan performance data provides a loan level history of delinquency, foreclosures, foreclosure alternatives, modifications, and seller/servicer repurchases. Our single-family loan loss reserve severity is estimated from the most recent: (a) three months of sales experience realized on our distressed property dispositions; and (b) six months of mortgage insurance recoveries and pre-foreclosure expenses on our distressed properties including REO, short sales, and third-party sales. Our single-family loan loss severity estimate also captures current business area practices and expectations about recoveries due to seller/servicer repurchases. We use historical trends in home prices in our single-family loan loss reserve process, primarily through the use of estimated current total LTV ratios in our default models and through the use of recent home price sales experience in our severity estimate. However, we do not use a forecast of trends in home prices in our single-family loan loss reserve process. | ||
Our loan loss reserves reflect our best current estimates of incurred losses. Our loan loss reserve estimate includes projections related to loss mitigation activities, including loan modifications for troubled borrowers, and projections of recoveries through repurchases by seller/servicers of defaulted loans due to failure to follow contractual underwriting requirements at the time of the loan origination. These projections are based on our recent historical experience and current business practices and require significant management judgment. We monitor our projections of recoveries through seller/servicer repurchases to ensure that these projections are reasonable and consistent with our assessment of the credit capacity of our seller/servicer counterparties. For loans where foreclosure is probable, impairment is measured on an aggregate basis based upon an estimate of the underlying collateral value. At an individual loan level, our estimate also considers the effect of historical home price changes on borrower behavior and the impact of our loss mitigation actions, including our loan modification efforts. | ||
Our reserve estimate also reflects our best projection of defaults we believe are likely to occur as a result of loss events that have occurred through December 31, 2013 and 2012, respectively. However, fluctuations in the national housing market, the uncertainty in other macroeconomic factors, and variations in success rates of modification efforts under HAMP and other loan workout programs, make estimating defaults inherently imprecise. | ||
We validate and update our models and factors to capture changes in actual loss experience, as well as the effects of changes in underwriting practices and in our loss mitigation strategies. We also consider macroeconomic and other factors that impact the quality of the loans underlying our portfolio including regional housing trends, applicable home price indices, unemployment and employment dislocation trends, the effects of changes in government policies and programs, consumer credit statistics, and the extent of third-party insurance. We consider our assessment of these factors in determining our loan loss reserves. | ||
We apply proceeds from primary mortgage insurance that is contractually attached to a loan and other credit enhancements, including repurchase recoveries, entered into contemporaneously with and in contemplation of a guarantee or loan purchase transaction, as a recovery of our recorded investment in a charged-off loan, up to the amount of loss recognized as a charge-off. Proceeds from credit enhancements received in excess of our recorded investment in charged-off loans are recorded as a decrease to REO operations expense in our consolidated statements of comprehensive income when received. We record receivables for proceeds from primary mortgage insurance and other credit enhancements, including repurchase recoveries, when the proceeds are estimable and collectability is reasonably assured. We generally accrue receivables for primary mortgage insurance, pool insurance, and most other types of credit enhancements as we have a history of collection of these types of recoveries and the amounts are estimable based on the contractual terms of the agreements. However, due to the uncertainty of the timing and amount of collections of repurchase recoveries, we generally do not accrue receivables for repurchase recoveries and instead record repurchase recoveries received on a cash basis. | ||
Multifamily Loans | ||
For multifamily loans identified as impaired, we individually determine the loan loss reserves. Refer to “Impaired Loans” below for further discussion on individually impaired multifamily loans. Multifamily loans evaluated collectively for impairment are aggregated into book year vintages and measured by benchmarking published historical commercial mortgage data to those vintages based upon available economic data related to multifamily real estate, including apartment vacancy and rental rates. | ||
Impaired Loans | ||
We consider a loan to be impaired when it is probable, based on current information, that we will not receive all amounts due (including both principal and interest) in accordance with the contractual terms of the original loan agreement. Delays in the timing of our expected receipt of these amounts that are more than insignificant are considered in making this assessment. | ||
Single-Family Loans | ||
Individually impaired single-family loans primarily include loans that have undergone a TDR. These loans are measured individually for impairment as discussed in the "Troubled Debt Restructurings" section of this note that follows. All other single-family loans are aggregated and measured collectively for impairment based on similar risk characteristics. Collective impairment is measured as described above in the “Allowance for Loan Losses and Reserve for Guarantee Losses — Single-Family Loans” section of this note. If we determine that foreclosure on the underlying collateral is probable, we measure impairment based upon the fair value of the collateral, as reduced by estimated disposition costs and adjusted for estimated proceeds from insurance and similar sources. Interest income recognition on impaired single-family loans is discussed separately in the "Mortgage Loans — Non-Performing Loans" section of this note above. | ||
Multifamily Loans | ||
Multifamily impaired loans include TDRs, loans three monthly payments or more past due, and loans that are deemed impaired based on management judgment. Factors considered by management in determining whether a loan is impaired include, but are not limited to, the underlying property’s operating performance as represented by its current DSCR, available credit enhancements, estimated current LTV ratio, management of the underlying property, and the property’s geographic location. | ||
Multifamily loans are generally measured individually for impairment based on the fair value of the underlying collateral, as reduced by estimated disposition costs, as the repayment of these loans is generally provided from the cash flows of the underlying collateral and any associated credit-enhancement. Except for cases of fraud and certain other types of borrower defaults, most multifamily loans are non-recourse to the borrower. As a result, the cash flows of the underlying property (including any associated credit enhancements) serve as the source of funds for repayment of the loan. Interest income recognition on multifamily impaired loans is subject to our non-accrual policy as discussed in “Mortgage Loans — Non-Performing Loans.” | ||
Troubled Debt Restructurings | ||
Both single-family and multifamily loans which experience a modification to their contractual terms which results in a concession being granted to a borrower experiencing financial difficulties are considered TDRs. A concession is deemed granted when, as a result of the restructuring, we do not expect to collect all amounts due, including interest accrued, at the original contractual interest rate. As appropriate, we also consider other qualitative factors in determining whether a concession is deemed granted, including whether the borrower’s modified interest rate is consistent with that of a non-troubled borrower. We do not consider restructurings that result in a delay in payment that is insignificant to be a concession. We generally consider a delay in monthly amortizing payments of three months or less to be insignificant. We generally consider all other delays to be more than insignificant. A concession typically includes one or more of the following being granted to the borrower: (a) a trial period where the expected permanent modification will change our expectation of collecting all amounts due at the original contract rate; (b) a delay in payment that is more than insignificant; (c) a reduction in the contractual interest rate; (d) interest forbearance for a period of time that is not insignificant or forgiveness of accrued but uncollected interest amounts; (e) principal forbearance that is more than insignificant or a reduction in the principal amount of the loan; and (f) discharge of the borrower’s obligation in Chapter 7 bankruptcy. | ||
On July 1, 2011, we adopted an amendment to the accounting guidance related to the classification of loans as TDRs. This amendment clarified when a restructuring such as a loan modification is considered a TDR. For additional information, see “Recently Adopted Accounting Guidance — A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring,” below. | ||
Impairment of a loan having undergone a TDR is generally measured as the excess of our recorded investment in the loan over the present value of the expected future cash flows, discounted at the loan’s original effective interest rate for fixed-rate loans or at the loan’s effective interest rate prior to the restructuring for ARM loans. Our expectation of future cash flows incorporates, among other items, an estimated probability of default which is based on a number of market factors as well as the characteristics of the loan, such as past due status. Subsequent to the restructuring date, interest income is recognized at the modified interest rate, subject to our non-accrual policy as discussed in “Mortgage Loans — Non-Performing Loans” above, with all other changes in the present value of expected future cash flows being recognized as a component of the provision for credit losses in our consolidated statements of comprehensive income. | ||
Investments in Securities | ||
Investments in securities consist primarily of mortgage-related securities. We classify securities as “available-for-sale” or “trading.” We currently do not classify any securities as “held-to-maturity,” although we may elect to do so in the future. Securities classified as available-for-sale and trading are reported at fair value with changes in fair value included in AOCI and other gains (losses) on investment securities recognized in earnings, respectively. See “NOTE 16: FAIR VALUE DISCLOSURES” for more information on how we determine the fair value of securities. | ||
We elected the fair value option for certain available-for-sale mortgage-related securities, including investments in securities that: (a) can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our initial recorded investment; or (b) are not of high credit quality at the acquisition date and are identified as within the scope of the accounting guidance for investments in beneficial interests in securitized financial assets. These securities are classified as trading securities. By electing the fair value option for these instruments, we reflect valuation changes through our consolidated statements of comprehensive income in the period they occur. For additional information on our election of the fair value option, see “NOTE 16: FAIR VALUE DISCLOSURES.” | ||
We record purchases and sales of securities that are exempt from the accounting guidance for derivatives and hedge accounting on a trade date basis. Securities underlying forward purchases and sales contracts that are not exempt from the requirements of derivatives and hedge accounting are recorded on the expected settlement date with a corresponding commitment recorded on the trade date. | ||
For most of our investments in securities, interest income is recognized using the effective interest method. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities. | ||
For certain investments in securities, interest income is recognized using the prospective effective interest method. We specifically apply this accounting to beneficial interests in securitized financial assets that: (a) can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment; (b) are not of high credit quality at the acquisition date; or (c) have been determined to be other-than-temporarily impaired. We recognize as interest income (over the life of these securities) the excess of all estimated cash flows attributable to these interests over their book value using the effective interest method. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. | ||
We evaluate available-for-sale securities in an unrealized loss position as of the end of each quarter for other-than-temporary impairment. An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. As discussed further below, certain other-than-temporary impairment losses are recognized in earnings. | ||
If we intend to sell the security or believe it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the security’s entire decline in fair value is deemed to be other-than-temporary and is recorded within our consolidated statements of comprehensive income as net impairment of available-for-sale securities recognized in earnings. If we do not intend to sell the security and we believe it is not more likely than not that we will be required to sell prior to recovery of the security’s unrealized loss, we recognize only the credit component of other-than-temporary impairment in earnings and the amounts attributable to all other factors are recorded in AOCI. The credit component represents the amount by which the present value of cash flows expected to be collected from the security is less than the amortized cost basis of the security. The present value of expected future cash flows represents our estimate of future contractual cash flows that we expect to collect, discounted at the original effective interest rate or the effective interest rate determined based on significantly improved cash flows subsequent to initial impairment. | ||
The evaluation of whether unrealized losses on available-for-sale securities are other-than-temporary requires significant management judgments and assumptions and consideration of numerous factors. We perform an evaluation on a security-by-security basis considering all available information. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment. For information regarding important factors, judgments and assumptions, see “NOTE 7: INVESTMENTS IN SECURITIES — Impairment Recognition on Investments in Securities.” | ||
Gains and losses on the sale of securities are included in other gains (losses) on investment securities recognized in earnings, including those gains (losses) reclassified into earnings from AOCI. We use the specific identification method for determining the cost basis of a security in computing the gain or loss. | ||
For securities classified as trading or available-for-sale and those securities where we elected the fair value option, we classify the cash flows as investing activities because we hold these securities for investment purposes. In cases where the transfer of available-for-sale securities represents a secured borrowing, we classify the related cash flows as financing activities. | ||
Repurchase and Resale Agreements and Dollar Roll Transactions | ||
We enter into repurchase and resale agreements primarily as an investor or to finance certain of our security positions. Such transactions are accounted for as secured financings because the transferor does not relinquish control over the transferred assets. | ||
We also engage in dollar roll transactions whereby we enter into an agreement to sell and subsequently repurchase (or purchase and subsequently resell) agency securities. When these transactions involve securities issued by consolidated entities, they are treated as issuances and extinguishments of debt. When these transactions involve securities issued by entities we do not consolidate, they are treated as purchases and sales as the security initially transferred is not required to be the same or substantially the same as the security subsequently returned. | ||
Debt Securities Issued | ||
Debt securities that we issue are classified on our consolidated balance sheets as either debt securities of consolidated trusts held by third parties or other debt. The debt securities of our consolidated trusts are prepayable without penalty at any time. Other debt represents short-term and long-term debt securities that we issue to third parties to fund our general business activities. | ||
Both debt of our consolidated trusts and other debt, except for certain debt for which we elected the fair value option, are reported at amortized cost. Deferred items, including premiums, discounts, and hedging-related basis adjustments are reported as a component of total debt, net. Issuance costs are reported as a component of other assets. These items are amortized and reported through interest expense using the effective interest method over the contractual life of the related indebtedness. Amortization of premiums, discounts, and issuance costs begins at the time of debt issuance. Amortization of hedging-related basis adjustments begins upon the discontinuation of the related hedge relationship. | ||
We elected the fair value option on certain debt securities of consolidated trusts held by third parties and certain other debt. The change in fair value for debt recorded at fair value is reported as other income in our consolidated statements of comprehensive income. For debt where we have elected the fair value option, upfront costs and fees are recognized in earnings as incurred and not deferred. For additional information on our election of the fair value option, see “NOTE 16: FAIR VALUE DISCLOSURES.” | ||
When we repurchase or call outstanding debt securities, we recognize a gain or loss related to the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of gains (losses) on retirement of other debt. Contemporaneous transfers of cash between us and a creditor in connection with the issuance of a new debt security and satisfaction of an existing debt security are accounted for as either an extinguishment or a modification of an existing debt security. If the debt securities have substantially different terms, the transaction is accounted for as an extinguishment of the existing debt security. The issuance of a new debt security is recorded at fair value, fees paid to the creditor are expensed and fees paid to third parties are deferred and amortized into interest expense over the life of the new debt security using the effective interest method. If the terms of the existing debt security and the new debt security are not substantially different, the transaction is accounted for as a modification of the existing debt. Fees paid to the creditor are deferred and amortized over the life of the modified unsecured debt security using the effective interest method and fees paid to third parties are expensed as incurred. | ||
Cash flows related to debt securities issued by our consolidated trusts are classified as either financing activities (e.g., repayment of principal to PC holders) or operating activities (e.g., interest payments to PC holders included within net income (loss)). Other than interest paid, cash flows related to other debt are classified as financing activities. Interest paid on other debt is classified as operating activities. | ||
Derivatives | ||
Derivatives are reported at their fair value on our consolidated balance sheets. Derivatives in a net asset position, including net derivative interest receivable or payable, are reported as derivative assets, net. Similarly, derivatives in a net liability position, including net derivative interest receivable or payable, are reported as derivative liabilities, net. We offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Changes in fair value and interest accruals on derivatives are recorded as derivative gains (losses) in our consolidated statements of comprehensive income. | ||
We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We elected to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in our consolidated statements of comprehensive income. | ||
At December 31, 2013 and 2012, we did not have any derivatives in hedge accounting relationships; however, there are amounts recorded in AOCI related to discontinued cash flow hedges which are recognized in earnings when the originally forecasted transactions affect earnings. If it becomes probable the originally forecasted transaction will not occur, the associated deferred gain or loss in AOCI would be reclassified to earnings immediately. | ||
In the consolidated statements of cash flows, cash flows related to the acquisition and termination of derivatives, other than forward commitments, are generally classified in investing activities. Cash flows related to forward commitments are classified within the section of the consolidated statements of cash flows in accordance with the cash flows of the financial instruments to which they relate. | ||
REO | ||
REO is initially recorded at fair value less costs to sell and is subsequently carried at the lower of cost or fair value less costs to sell. When we acquire REO, losses arise when the carrying value of the loan (including accrued interest) exceeds the fair value of the foreclosed property, net of estimated costs to sell and expected recoveries through credit enhancements. Losses are charged off against the allowance for loan losses at the time of REO acquisition. REO gains arise and are recognized immediately in earnings when the fair value of the foreclosed property less costs to sell plus expected recoveries through credit enhancements exceeds the recorded investment in the loan (including all amounts due from the borrower). | ||
Amounts we expect to receive from third-party insurance (primary mortgage insurance and pool insurance) and most other credit enhancements are recorded as receivables when REO is acquired. The receivable is adjusted when the actual claim is filed and is reported as a component of other assets on our consolidated balance sheets. We do not record receivables for repurchase recoveries. We record these on a cash basis due to uncertainty of the timing and amount of collections. | ||
Material development and improvement costs relating to REO are capitalized. Operating expenses specifically identifiable with an REO property are included in REO operations income (expense) in our consolidated statements of comprehensive income; all other expenses are recognized within other administrative expenses in our consolidated statements of comprehensive income. Declines in the fair value of REO are provided for and charged to REO operations income (expense). Any gains and losses from REO dispositions are included in REO operations income (expense). | ||
Income Taxes | ||
We use the asset and liability method of accounting for income taxes for financial reporting purposes. Under this method, deferred tax assets and liabilities are recognized based upon the expected future tax consequences of existing temporary differences between the financial reporting and the tax reporting basis of assets and liabilities using enacted statutory tax rates as well as tax net operating loss and tax credit carryforwards. To the extent tax laws change, deferred tax assets and liabilities are adjusted, when necessary, in the period that the tax change is enacted. Valuation allowances are recorded to reduce net deferred tax assets when it is more likely than not that all or part of our tax benefits will not be realized. The realization of these net deferred tax assets is dependent upon the generation of sufficient taxable income from current operations and from unrecognized tax benefits. | ||
Income tax benefit (expense) includes: (a) deferred tax benefit (expense), which represents the net change in the deferred tax asset or liability balance during the year plus any change in a valuation allowance; and (b) current tax benefit (expense), which represents the amount of tax currently payable to or receivable from a tax authority including any related interest and penalties plus amounts accrued for unrecognized tax benefits (also including any related interest and penalties). Income tax benefit (expense) excludes the tax effects related to adjustments recorded to equity, such as unrealized gains and losses related to available-for-sale securities. | ||
Regarding tax positions taken or expected to be taken (and any associated interest and penalties), we recognize a tax position so long as it is more likely than not that it will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. We measure the tax position at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. See “NOTE 12: INCOME TAXES” for additional information. | ||
Earnings Per Common Share | ||
The August 2012 amendment to the Purchase Agreement changed the manner in which the dividend on the senior preferred stock is determined. For each quarter from January 1, 2013 through and including December 31, 2017, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter, less the applicable Capital Reserve Amount, exceeds zero. For each quarter beginning January 1, 2018, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter exceeds zero. The dividend is presented in the period in which it is determinable for the senior preferred stock as a reduction to net income (loss) available to common stockholders and net income (loss) per common share. The dividend is declared and paid in the following period and recorded as a reduction to equity in the period declared. | ||
We have participating securities related to options and restricted stock units with dividend equivalent rights that receive dividends as declared on an equal basis with common shares but are not obligated to participate in undistributed net losses. These participating securities consist of: (a) vested options to purchase common stock; and (b) vested and unvested restricted stock units that earn dividend equivalents at the same rate when and as declared on common stock. Consequently, in accordance with accounting guidance, we use the “two-class” method of computing earnings per common share. The “two-class” method is an earnings allocation formula that determines earnings per share for common stock and participating securities based on dividends declared and participation rights in undistributed earnings. | ||
Basic earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares outstanding for the period. The weighted average common shares outstanding for the period includes the weighted average number of shares that are associated with the warrant for our common stock issued to Treasury pursuant to the Purchase Agreement. This warrant is included since it is unconditionally exercisable by the holder at a minimal cost. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS” for further information. | ||
Diluted earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares outstanding during the period adjusted for the dilutive effect of common equivalent shares outstanding. For periods with net income attributable to common stockholders, the calculation includes the effect of the following common equivalent shares outstanding: (a) the weighted average shares related to stock options if the average market price during the period exceeds the exercise price; and (b) the weighted average of unvested restricted stock units. During periods in which a net loss attributable to common stockholders has been incurred, potential common equivalent shares outstanding are not included in the calculation because it would have an antidilutive effect. See “NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) — Stock-Based Compensation” for additional information on our earnings-per-share calculation. | ||
Comprehensive Income | ||
Comprehensive income includes all changes in equity during a period, except those resulting from investments by stockholders. We define comprehensive income as consisting of net income (loss) plus after-tax changes in: (a) the unrealized gains and losses on available-for-sale securities; (b) the effective portion of derivatives accounted for as cash flow hedge relationships; and (c) defined benefit plans. | ||
Recently Adopted Accounting Guidance | ||
Fair Value Measurement | ||
On January 1, 2012, we adopted an amendment to the accounting guidance pertaining to fair value measurement and disclosure. This amendment provided: (a) clarification about the application of existing fair value measurement and disclosure requirements; and (b) changes to the guidance for measuring fair value and disclosing information about fair value measurements. The adoption of this amendment did not have a material impact on our consolidated financial statements. | ||
Reconsideration of Effective Control for Repurchase Agreements | ||
On January 1, 2012, we adopted an amendment to the accounting guidance for transfers and servicing with regard to repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. This amendment removed the criterion related to collateral maintenance from the transferor’s assessment of effective control. It focuses the assessment of effective control on the transferor’s rights and obligations with respect to the transferred financial assets and not whether the transferor has the practical ability to perform in accordance with those rights or obligations. The adoption of this amendment did not have a material impact on our consolidated financial statements. | ||
A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring | ||
On July 1, 2011, we adopted an amendment to the accounting guidance related to the classification of loans as TDRs, which clarifies when a restructuring such as a loan modification is considered a TDR. This amendment clarifies the guidance regarding a creditor’s evaluation of whether a debtor is experiencing financial difficulty and whether a creditor has granted a concession to a debtor for purposes of determining if a restructuring constitutes a TDR. | ||
Both single-family and multifamily loans that experience restructurings resulting in a concession being granted to a borrower experiencing financial difficulties are considered TDRs. The amendment provides guidance to determine whether a borrower is experiencing financial difficulties, which is largely consistent with the guidance for debtors. This change does not have a significant impact on our determination of whether a borrower is experiencing financial difficulties. Pursuant to this amendment, a concession is deemed to have been granted when, as a result of the restructuring, we do not expect to collect all amounts due, including interest accrued, at the original contractual interest rate. The amendment also specifies that a concession shall not be determined by comparing the borrower’s pre-restructuring effective interest rate to the post-restructuring effective interest rate. These changes resulted in a significant impact on our determination of whether a concession has been granted. | ||
The amendment was effective for interim and annual periods beginning on or after June 15, 2011 and applied as of July 1, 2011 to restructurings occurring on or after January 1, 2011. We recognized additional provision for credit losses of $0.2 billion during the third quarter of 2011 due to the population of restructurings occurring in the first half of 2011 that became TDRs. | ||
Please refer to “NOTE 5: INDIVIDUALLY IMPAIRED AND NON-PERFORMING LOANS” for further disclosures regarding our loan restructurings accounted for and disclosed as TDRs and for discussion regarding how modifications and other loss mitigation activities are factored into our allowance for loan losses. | ||
Recently Issued Accounting Guidance, Not Yet Adopted Within These Consolidated Financial Statements | ||
Accounting for Investments in Qualified Affordable Housing Projects | ||
In January 2014, the FASB issued an amendment to the accounting guidance related to accounting for investments in qualified affordable housing projects. This amendment permits entities to elect to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendment is effective for interim and annual periods beginning after December 15, 2014 and is to be applied retrospectively, with early adoption permitted. We do not expect that the adoption of this amendment will have a material impact on our consolidated financial statements. | ||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | ||
In January 2014, the FASB issued an amendment to the accounting guidance related to reclassifying residential real estate collateralized consumer mortgage loans upon foreclosure. This amendment clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for interim and annual periods beginning after December 15, 2014 with early adoption permitted. This amendment can be adopted either prospectively or retrospectively. We do not expect that the adoption of this amendment will have a material impact on our consolidated financial statements. |
Conservatorship_and_Related_Ma
Conservatorship and Related Matters | 12 Months Ended | |
Dec. 31, 2013 | ||
Conservatorship and Related Matters [Abstract] | ' | |
CONSERVATORSHIP AND RELATED MATTERS | ' | |
NOTE 2: CONSERVATORSHIP AND RELATED MATTERS | ||
Entry Into Conservatorship | ||
On September 6, 2008, the Director of FHFA placed us into conservatorship. On September 7, 2008, Treasury and FHFA announced several actions regarding Freddie Mac and Fannie Mae. These actions included the execution of the Purchase Agreement, pursuant to which we issued to Treasury both senior preferred stock and a warrant to purchase common stock. | ||
Business Objectives | ||
We continue to operate under the direction of FHFA, as our Conservator. The conservatorship and related matters have had a wide-ranging impact on us, including our management, business, financial condition and results of operations. Upon its appointment, FHFA, as Conservator, immediately succeeded to all rights, titles, powers and privileges of Freddie Mac, and of any stockholder, officer or director thereof, with respect to the company and its assets. The Conservator also succeeded to the title to all books, records, and assets of Freddie Mac held by any other legal custodian or third party. During the conservatorship, the Conservator has delegated certain authority to the Board of Directors to oversee, and management to conduct business operations so that the company can continue to operate in the ordinary course. The directors serve on behalf of, and exercise authority as directed by, the Conservator. | ||
We are also subject to certain constraints on our business activities imposed by Treasury due to the terms of, and Treasury’s rights under, the Purchase Agreement. However, we believe that the support provided by Treasury pursuant to the Purchase Agreement currently enables us to maintain our access to the debt markets and to have adequate liquidity to conduct our normal business activities, although the costs of our debt funding could vary. Our ability to access funds from Treasury under the Purchase Agreement is critical to keeping us solvent. | ||
The Conservator continues to determine, and direct the efforts of the Board of Directors and management to address, the strategic direction for the company. While the Conservator has delegated certain authority to management to conduct business operations, many management decisions are subject to review and approval by FHFA and Treasury. In addition, management frequently receives directions from FHFA on various matters involving day-to-day operations. | ||
Our current business objectives reflect direction we have received from the Conservator (including the Conservatorship Scorecards). At the direction of the Conservator, we have made changes to certain business practices that are designed to provide support for the mortgage market in a manner that serves our public mission and other non-financial objectives but may not contribute to our profitability. | ||
Certain of these objectives are intended to help homeowners and the mortgage market and may help to mitigate future credit losses. However, some of our initiatives are expected to have an adverse impact on our near- and long-term financial results. Given the important role the Administration and our Conservator have placed on Freddie Mac in addressing housing and mortgage market conditions and our public mission, we may be required to take additional actions that could have a negative impact on our business, operating results or financial condition. | ||
The Conservator is requiring us to contract our presence in the mortgage market and simplify our operations. The Conservator also stated that it is focusing on retaining value in the business operations of Freddie Mac and Fannie Mae, overseeing remediation of identified weaknesses in corporate operations and risk management, and ensuring that sound corporate governance principles are followed. | ||
On February 21, 2012, FHFA sent to Congress a strategic plan for the next phase of the conservatorships of Freddie Mac and Fannie Mae. The plan set forth objectives and steps FHFA is taking or will take to meet FHFA’s obligations as Conservator. FHFA stated that the steps envisioned in the plan are consistent with each of the housing finance reform frameworks set forth in the report delivered by the Administration to Congress in February 2011, as well as with the leading congressional proposals previously introduced. FHFA indicated that the plan leaves open all options for Congress and the Administration regarding the resolution of the conservatorships and the degree of government involvement in supporting the secondary mortgage market in the future. | ||
FHFA’s plan provides lawmakers and the public with an outline of how FHFA, as Conservator, intends to guide Freddie Mac and Fannie Mae over the next few years, and identifies three strategic goals: | ||
• | Build. Build a new infrastructure for the secondary mortgage market. | |
• | Contract. Gradually contract Freddie Mac's and Fannie Mae’s dominant presence in the marketplace while simplifying and shrinking their operations. | |
• | Maintain. Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages. | |
The Conservatorship Scorecards, instituted by FHFA, established objectives, performance targets and measures, and provided the implementation roadmap for FHFA’s strategic plan. We continue to align our resources and internal business plans to meet the goals and objectives provided to us by FHFA. | ||
There is significant uncertainty as to the ultimate impact that our efforts to aid the housing and mortgage markets, including our efforts in connection with the MHA Program, will have on our future capital or liquidity needs. We are allocating significant internal resources to the implementation of the various initiatives under the MHA Program and to the servicing alignment initiative, which has increased, and will continue to increase, our expenses. We cannot currently estimate whether, or the extent to which, costs incurred in the near term from HAMP, HARP, or other MHA Program efforts may be offset, if at all, by the prevention or reduction of potential future costs of serious delinquencies and foreclosures due to these initiatives. | ||
There is significant uncertainty as to our future, as the conservatorship has no specified termination date, and it is unknown what changes may occur to our business model during or following conservatorship, including whether we will continue to exist. The then Acting Director of FHFA stated on September 19, 2011 that “it ought to be clear to everyone at this point, given [Freddie Mac and Fannie Mae’s] losses since being placed into conservatorship and the terms of the Treasury’s financial support agreements, that [Freddie Mac and Fannie Mae] will not be able to earn their way back to a condition that allows them to emerge from conservatorship.” The then Acting Director of FHFA stated on November 15, 2011 that “the long-term outlook is that neither [Freddie Mac nor Fannie Mae] will continue to exist, at least in its current form, in the future.” We are not aware of any current plans of our Conservator to significantly change our business model or capital structure in the near-term. Our future structure and role will be determined by the Administration and Congress, and there are likely to be significant changes beyond the near-term. We have no ability to predict the outcome of these deliberations. | ||
On February 11, 2011, the Administration delivered a report to Congress that lays out the Administration’s plan to reform the U.S. housing finance market, including options for structuring the government’s long-term role in a housing finance system in which the private sector is the dominant provider of mortgage credit. The report recommends winding down Freddie Mac and Fannie Mae, and states that the Administration will work with FHFA to determine the best way to responsibly reduce the role of Freddie Mac and Fannie Mae in the market and ultimately wind down both institutions. The report states that these efforts must be undertaken at a deliberate pace, which takes into account the impact that these changes will have on borrowers and the housing market. | ||
The report states that the government is committed to ensuring that Freddie Mac and Fannie Mae have sufficient capital to perform under any guarantees issued now or in the future and the ability to meet any of their debt obligations, and further states that the Administration will not pursue policies or reforms in a way that would impair the ability of Freddie Mac and Fannie Mae to honor their obligations. The report states the Administration’s belief that under the companies’ senior preferred stock purchase agreements with Treasury, there is sufficient funding to ensure the orderly and deliberate wind down of Freddie Mac and Fannie Mae, as described in the Administration’s plan. | ||
The report identifies a number of policy levers that could be used to wind down Freddie Mac and Fannie Mae, shrink the government’s footprint in housing finance, and help bring private investors back to the mortgage market, including increasing guarantee fees, phasing in a 10% down payment requirement, reducing conforming loan limits, and winding down Freddie Mac and Fannie Mae’s investment portfolios, consistent with the senior preferred stock purchase agreements. These recommendations, if implemented, would have a material impact on our business volumes, market share, results of operations, and financial condition. | ||
On December 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this law directed FHFA to require Freddie Mac and Fannie Mae to increase guarantee fees by no less than 10 basis points above the average guarantee fees charged in 2011 on single-family mortgage-backed securities. Effective April 1, 2012, at the direction of FHFA, the guarantee fee on single-family residential mortgages sold to Freddie Mac and Fannie Mae was increased by 10 basis points. Under the law, the proceeds we receive from this increase are being remitted to Treasury to fund the payroll tax cut, rather than retained by us. | ||
On August 31, 2012, FHFA announced that it had directed Freddie Mac and Fannie Mae to further increase guarantee fees on single-family mortgages by an average of 10 basis points, which was implemented in 2012. In December 2013, FHFA announced a number of additional changes to our (and Fannie Mae's) guarantee fee rates that were scheduled to become effective in March and April of 2014. In January 2014, FHFA announced that it was delaying the implementation of these changes. | ||
Purchase Agreement | ||
Overview | ||
On September 7, 2008, we, through FHFA, in its capacity as Conservator, and Treasury entered into the Purchase Agreement. The Purchase Agreement was subsequently amended and restated on September 26, 2008, and further amended on May 6, 2009, December 24, 2009, and August 17, 2012. Under the Purchase Agreement, the $200 billion maximum amount of the commitment from Treasury was increased to accommodate the cumulative reduction in our net worth during 2010, 2011 and 2012. The amount of available funding remaining under the Purchase Agreement was $140.5 billion as of December 31, 2013. This amount will be reduced by any future draws. | ||
The Purchase Agreement requires Treasury, upon the request of the Conservator, to provide funds to us after any quarter in which we have a negative net worth (that is, our total liabilities exceed our total assets, as reflected on our GAAP balance sheet). In addition, the Purchase Agreement requires Treasury, upon the request of the Conservator, to provide funds to us if the Conservator determines, at any time, that it will be mandated by law to appoint a receiver for us unless we receive these funds from Treasury. In exchange for Treasury’s funding commitment, we issued to Treasury, as an aggregate initial commitment fee: (a) one million shares of Variable Liquidation Preference Senior Preferred Stock (with an initial liquidation preference of $1 billion), which we refer to as the senior preferred stock; and (b) a warrant to purchase, for a nominal price, shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis at the time the warrant is exercised, which we refer to as the warrant. We received no other consideration from Treasury for issuing the senior preferred stock or the warrant. | ||
Treasury, as the holder of the senior preferred stock, is entitled to receive quarterly cash dividends, when, as and if declared by our Board of Directors. Through December 31, 2012, the senior preferred stock accrued quarterly cumulative dividends at a rate of 10% per year. However, under the August 2012 amendment to the Purchase Agreement, the fixed dividend rate was replaced with a net worth sweep dividend beginning in the first quarter of 2013. | ||
For each quarter from January 1, 2013 through and including December 31, 2017, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter, less the applicable Capital Reserve Amount, exceeds zero. The term Net Worth Amount is defined as: (a) the total assets of Freddie Mac (excluding Treasury’s commitment and any unfunded amounts thereof), less; (b) our total liabilities (excluding any obligation in respect of capital stock), in each case as reflected on our consolidated balance sheets prepared in accordance with GAAP. If the calculation of the dividend payment for a quarter does not exceed zero, then no dividend will accrue or be payable for that quarter. The applicable Capital Reserve Amount was $3 billion for 2013, will be $2.4 billion for 2014, and will be reduced by $600 million each year thereafter until it reaches zero on January 1, 2018. For each quarter beginning January 1, 2018, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter exceeds zero. The amounts payable for dividends on the senior preferred stock could be substantial and will have an adverse impact on our financial position and net worth. To the extent we draw on Treasury’s funding commitment, the liquidation preference of the senior preferred stock is increased by the amount of funds we receive. The senior preferred stock is senior in liquidation preference to our common stock and all other series of preferred stock. | ||
As a result of the net worth sweep dividend provisions of the senior preferred stock, we do not have the authority over the long term to build and retain capital from the earnings generated by our business operations, or return capital to stockholders other than Treasury. | ||
In addition to the issuance of the senior preferred stock and warrant, we are required under the Purchase Agreement to pay a quarterly commitment fee to Treasury. Under the Purchase Agreement, the fee is to be determined in an amount mutually agreed to by us and Treasury with reference to the market value of Treasury’s funding commitment as then in effect. However, pursuant to the August 2012 amendment to the Purchase Agreement, for each quarter commencing January 1, 2013, and for as long as the net worth sweep dividend provisions remain in form and content substantially the same, no periodic commitment fee under the Purchase Agreement will be set, accrue or be payable. Treasury had previously waived the fee for all prior quarters. | ||
Under the Purchase Agreement, our ability to repay the liquidation preference of the senior preferred stock is limited and we will not be able to do so for the foreseeable future, if at all. The aggregate liquidation preference of the senior preferred stock will increase further if we receive additional draws under the Purchase Agreement or if any dividends or quarterly commitment fees payable under the Purchase Agreement are not paid in cash (this quarterly commitment fee has been suspended). We may need to make additional draws in future periods due to a variety of factors that could adversely affect our net worth. | ||
The Purchase Agreement includes significant restrictions on our ability to manage our business, including limiting the amount of indebtedness we can incur and capping the size of our mortgage-related investments portfolio. While the senior preferred stock is outstanding, we are prohibited from paying dividends (other than on the senior preferred stock) or issuing equity securities without Treasury’s consent. | ||
The Purchase Agreement has an indefinite term and can terminate only in limited circumstances, which do not include the end of the conservatorship. The Purchase Agreement therefore could continue after the conservatorship ends. Treasury has the right to exercise the warrant, in whole or in part, at any time on or before September 7, 2028. | ||
Purchase Agreement Covenants | ||
The Purchase Agreement provides that, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury: | ||
• | declare or pay any dividend (preferred or otherwise) or make any other distribution with respect to any Freddie Mac equity securities (other than with respect to the senior preferred stock or warrant); | |
• | redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant); | |
• | sell or issue any Freddie Mac equity securities (other than the senior preferred stock, the warrant and the common stock issuable upon exercise of the warrant and other than as required by the terms of any binding agreement in effect on the date of the Purchase Agreement); | |
• | terminate the conservatorship (other than in connection with a receivership); | |
• | sell, transfer, lease or otherwise dispose of any assets, other than dispositions for fair market value: (a) to a limited life regulated entity (in the context of a receivership); (b) of assets and properties in the ordinary course of business, consistent with past practice; (c) of assets and properties having fair market value individually or in aggregate less than $250 million in one transaction or a series of related transactions; (d) in connection with our liquidation by a receiver; (e) of cash or cash equivalents for cash or cash equivalents; or (f) to the extent necessary to comply with the covenant described below relating to the reduction of our mortgage-related investments portfolio; | |
• | issue any subordinated debt; | |
• | enter into a corporate reorganization, recapitalization, merger, acquisition or similar event; or | |
• | engage in transactions with affiliates unless the transaction is: (a) pursuant to the Purchase Agreement, the senior preferred stock or the warrant; (b) upon arm’s length terms; or (c) a transaction undertaken in the ordinary course or pursuant to a contractual obligation or customary employment arrangement in existence on the date of the Purchase Agreement. | |
The covenants generally also apply to our subsidiaries. | ||
The Purchase Agreement also requires us to reduce the amount of mortgage assets we own. The Purchase Agreement, as revised in the August 2012 amendment, provides that we could not own mortgage assets with UPB in excess of $650 billion on December 31, 2012 and on December 31 of each year thereafter, may not own mortgage assets with UPB in excess of 85% of the aggregate amount of mortgage assets we are permitted to own as of December 31 of the immediately preceding calendar year, provided that we are not required to own less than $250 billion in mortgage assets. Under the Purchase Agreement, we also may not incur indebtedness that would result in the par value of our aggregate indebtedness exceeding 120% of the amount of mortgage assets we are permitted to own on December 31 of the immediately preceding calendar year. The mortgage asset and indebtedness limitations are determined without giving effect to the changes to the accounting guidance for transfers of financial assets and consolidation of VIEs, under which we consolidated our single-family PC trusts and certain of our Other Guarantee Transactions in our financial statements as of January 1, 2010. | ||
In addition, the Purchase Agreement provides that we may not enter into any new compensation arrangements or increase amounts or benefits payable under existing compensation arrangements of any named executive officer or other executive officer (as such terms are defined by SEC rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury. | ||
The Purchase Agreement also provides that, on an annual basis, we are required to deliver a risk management plan to Treasury setting out our strategy for reducing our enterprise-wide risk profile and the actions we will take to reduce the financial and operational risk associated with each of our reportable business segments. | ||
Warrant Covenants | ||
The warrant we issued to Treasury includes, among others, the following covenants: (a) our SEC filings under the Exchange Act will comply in all material respects as to form with the Exchange Act and the rules and regulations thereunder; (b) without the prior written consent of Treasury, we may not permit any of our significant subsidiaries to issue capital stock or equity securities, or securities convertible into or exchangeable for such securities, or any stock appreciation rights or other profit participation rights to any person other than Freddie Mac or its wholly-owned subsidiaries; (c) we may not take any action that will result in an increase in the par value of our common stock; (d) unless waived or consented to in writing by Treasury, we may not take any action to avoid the observance or performance of the terms of the warrant and we must take all actions necessary or appropriate to protect Treasury’s rights against impairment or dilution; and (e) we must provide Treasury with prior notice of specified actions relating to our common stock, such as setting a record date for a dividend payment, granting subscription or purchase rights, authorizing a recapitalization, reclassification, merger or similar transaction, commencing a liquidation of the company or any other action that would trigger an adjustment in the exercise price or number or amount of shares subject to the warrant. | ||
Termination Provisions | ||
The Purchase Agreement provides that the Treasury’s funding commitment will terminate under any of the following circumstances: (a) the completion of our liquidation and fulfillment of Treasury’s obligations under its funding commitment at that time; (b) the payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guarantee obligations); and (c) the funding by Treasury of the maximum amount of the commitment under the Purchase Agreement. In addition, Treasury may terminate its funding commitment and declare the Purchase Agreement null and void if a court vacates, modifies, amends, conditions, enjoins, stays or otherwise affects the appointment of the Conservator or otherwise curtails the Conservator’s powers. Treasury may not terminate its funding commitment under the Purchase Agreement solely by reason of our being in conservatorship, receivership or other insolvency proceeding, or due to our financial condition or any adverse change in our financial condition. | ||
Waivers and Amendments | ||
The Purchase Agreement provides that most provisions of the agreement may be waived or amended by mutual written agreement of the parties; however, no waiver or amendment of the agreement is permitted that would decrease Treasury’s aggregate funding commitment or add conditions to Treasury’s funding commitment if the waiver or amendment would adversely affect in any material respect the holders of our debt securities or Freddie Mac mortgage guarantee obligations. | ||
Third-party Enforcement Rights | ||
In the event of our default on payments with respect to our debt securities or Freddie Mac mortgage guarantee obligations, if Treasury fails to perform its obligations under its funding commitment and if we and/or the Conservator are not diligently pursuing remedies in respect of that failure, the holders of these debt securities or Freddie Mac mortgage guarantee obligations may file a claim in the United States Court of Federal Claims for relief requiring Treasury to fund to us the lesser of: (a) the amount necessary to cure the payment defaults on our debt and Freddie Mac mortgage guarantee obligations; and (b) the lesser of: (i) the deficiency amount; and (ii) the maximum amount of the commitment less the aggregate amount of funding previously provided under the commitment. Any payment that Treasury makes under those circumstances will be treated for all purposes as a draw under the Purchase Agreement that will increase the liquidation preference of the senior preferred stock. | ||
Impact of Conservatorship and Related Developments on the Mortgage-Related Investments Portfolio | ||
The UPB of our mortgage-related investments portfolio, for purposes of the limit imposed by the Purchase Agreement, as amended on August 17, 2012, and FHFA regulation, may not exceed $553 billion at December 31, 2013 and was $461 billion at December 31, 2013. The annual 15% reduction in the size of our mortgage-related investments portfolio until it reaches $250 billion is calculated based on the maximum allowable size of the mortgage-related investments portfolio, rather than the actual UPB of the mortgage-related investments portfolio, as of December 31 of the preceding year. Our ability to acquire and sell mortgage assets is significantly constrained by limitations of the Purchase Agreement and those imposed by FHFA. The 2013 Conservatorship Scorecard included a goal to reduce the December 31, 2012 mortgage-related investments portfolio balance (exclusive of agency securities, multifamily held-for-sale loans, and single-family loans purchased for cash) by selling 5% of less liquid mortgage-related assets. In November 2013, FHFA announced that we had achieved this scorecard objective. | ||
Government Support for our Business | ||
We receive substantial support from Treasury and FHFA, as our Conservator and regulator, and are dependent upon their continued support in order to continue operating our business. This support includes our ability to access funds from Treasury under the Purchase Agreement, which is critical to: (a) keeping us solvent; (b) allowing us to focus on our primary business objectives under conservatorship; and (c) avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. At September 30, 2013, our assets exceeded our liabilities under GAAP; therefore FHFA did not request a draw on our behalf and, as a result, we did not receive any funding from Treasury under the Purchase Agreement during the three months ended December 31, 2013. Since conservatorship began through December 31, 2013, we have paid cash dividends of $71.3 billion to Treasury at the direction of the Conservator. | ||
At December 31, 2013, our assets exceeded our liabilities under GAAP; therefore no draw is being requested from Treasury under the Purchase Agreement for the fourth quarter of 2013. | ||
See “NOTE 8: DEBT SECURITIES AND SUBORDINATED BORROWINGS” and “NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT)” for more information on the terms of the conservatorship and the Purchase Agreement. | ||
Housing Finance Agency Initiative | ||
In 2009, we entered into a Memorandum of Understanding with Treasury, FHFA, and Fannie Mae, which sets forth the terms under which Treasury and, as directed by FHFA, we and Fannie Mae, would provide assistance to state and local HFAs so that the HFAs can continue to meet their mission of providing affordable financing for both single-family and multifamily housing. FHFA directed us and Fannie Mae to participate in the HFA initiative on a basis that is consistent with the goals of being commercially reasonable and safe and sound. Treasury’s participation in these assistance initiatives does not affect the amount of funding that Treasury can provide to Freddie Mac under the Purchase Agreement. | ||
The primary initiatives are as follows: | ||
• | TCLFP — In December 2009, on a 50-50 pro rata basis, Freddie Mac and Fannie Mae agreed to provide $8.2 billion of credit and liquidity support, including outstanding interest at the date of the guarantee, for variable rate demand obligations, or VRDOs, previously issued by HFAs. This support was provided through the issuance of guarantees, which provide credit enhancement to the holders of such VRDOs and also create an obligation to provide funds to purchase any VRDOs that are put by their holders and are not remarketed. Treasury provided a credit and liquidity backstop on the TCLFP. These guarantees replaced existing liquidity facilities from other providers. The guarantees were scheduled to expire on December 31, 2012. However, Treasury gave TCLFP participants the option to extend their individual TCLFP facilities to December 31, 2015. Certain participants elected to extend their TCLFP facilities to December 2015. | |
• | NIBP — In December 2009, on a 50-50 pro rata basis, Freddie Mac and Fannie Mae agreed to issue in total $15.3 billion of partially guaranteed pass-through securities backed by new single-family and certain new multifamily housing bonds issued by HFAs. Treasury purchased all of the pass-through securities issued by Freddie Mac and Fannie Mae. This initiative provided financing for HFAs to issue new housing bonds. | |
Treasury will bear the initial losses of principal up to 35% of total principal for these two initiatives combined, and thereafter Freddie Mac and Fannie Mae each will be responsible only for losses of principal on the securities that it issues to the extent that such losses are in excess of 35% of all losses under both initiatives. Treasury will bear all losses of unpaid interest. Under both initiatives, we and Fannie Mae were paid fees at the time bonds were securitized and are also paid ongoing fees for as long as the bonds remain outstanding. | ||
Related Parties as a Result of Conservatorship | ||
As a result of our issuance to Treasury of the warrant to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding, on a fully diluted basis, we are deemed a related party to the U.S. government. Except for the transactions with Treasury discussed above in “Business Objectives,” “Government Support for our Business” and “Housing Finance Agency Initiative” as well as in “NOTE 8: DEBT SECURITIES AND SUBORDINATED BORROWINGS,” and “NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT),” no transactions outside of normal business activities have occurred between us and the U.S. government (or any of its related parties) during the years ended December 31, 2013, 2012 and 2011. In addition, we are deemed related parties with Fannie Mae as both we and Fannie Mae have the same relationships with FHFA and Treasury. All transactions between us and Fannie Mae have occurred in the normal course of business in conservatorship. On October 7, 2013, FHFA announced the formation of Common Securitization Solutions, LLCSM (CSS). CSS is equally-owned by Freddie Mac and Fannie Mae. In connection with the formation of CSS, we entered into a limited liability company agreement with Fannie Mae and anticipate entering into additional agreements with Fannie Mae relating to CSS in the future. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||||||||||||
VARIABLE INTEREST ENTITIES | ' | |||||||||||||||||||
NOTE 3: VARIABLE INTEREST ENTITIES | ||||||||||||||||||||
We have interests in various entities that are considered to be VIEs, including securitization trusts we use in our securities issuance process. We are required to evaluate VIEs at inception and on an ongoing basis. When we determine that we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the trust on our balance sheets. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Consolidation and Equity Method of Accounting” for further information regarding the consolidation of certain VIEs. | ||||||||||||||||||||
VIEs for which We are the Primary Beneficiary | ||||||||||||||||||||
See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities” for information on the nature of single-family PC trusts, REMICs and Other Structured Securities, and Other Guarantee Transactions. | ||||||||||||||||||||
Single-family PC Trusts | ||||||||||||||||||||
Our single-family PC trusts issue pass-through securities that represent undivided beneficial interests in pools of mortgages held by these trusts. PCs are designed so that we bear the credit risk inherent in the loans underlying the PCs through our guarantee of principal and interest payments on the PCs. The PC holders bear the interest rate or prepayment risk on the mortgage loans and the risk that we will not perform on our obligation as guarantor. For purposes of our consolidation assessments, our evaluation of power and economic exposure with regard to PC trusts focuses on credit risk because the credit performance of the underlying mortgage loans was identified as the activity that most significantly impacts the economic performance of these entities. We have the power to impact the activities related to this risk in our role as guarantor and master servicer. | ||||||||||||||||||||
Specifically, in our role as master servicer, we establish requirements for how mortgage loans are serviced and what steps are to be taken to mitigate credit losses (e.g., modification, foreclosure). Additionally, in our capacity as guarantor, we have the ability to remove defaulted mortgage loans out of the PC trust to help mitigate credit losses. See “NOTE 5: INDIVIDUALLY IMPAIRED AND NON-PERFORMING LOANS” for further information regarding our removal of mortgage loans out of PC trusts. These powers allow us to direct the activities of the VIE (i.e., the PC trust) that most significantly impact its economic performance. In addition, we determined that our guarantee to each PC trust to provide principal and interest payments obligates us to absorb losses that could potentially be significant to the PC trusts. Accordingly, we concluded that we are the primary beneficiary of our single-family PC trusts. | ||||||||||||||||||||
At both December 31, 2013 and 2012, we were the primary beneficiary of, and therefore consolidated, single-family PC trusts with assets totaling $1.5 trillion, as measured using the UPB of issued PCs. The assets of each PC trust can be used only to settle obligations of that trust. In connection with our PC trusts, we have credit protection in the form of primary mortgage insurance, pool insurance, recourse to lenders, and other forms of credit enhancement. We also have credit protection for certain of our PC trusts that issue PCs backed by loans or certificates of federal agencies (such as FHA, VA, and USDA). See “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES — Credit Protection and Other Forms of Credit Enhancement” for additional information regarding third-party credit enhancements related to our PC trusts. | ||||||||||||||||||||
REMICs and Other Structured Securities | ||||||||||||||||||||
REMICs and Other Structured Securities are mortgage-related securities that we issue to third parties. We do not consolidate the trusts that issue these securities unless we hold substantially all of the beneficial interests in the trust and are therefore considered to be the primary beneficiary. We had investments of approximately $3.5 billion and $4.2 billion in UPB, as of December 31, 2013 and 2012, respectively, where we held substantially all the outstanding beneficial interests in the trusts and consolidated them on our balance sheets. | ||||||||||||||||||||
Other Guarantee Transactions | ||||||||||||||||||||
In Other Guarantee Transactions, we issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The degree to which our involvement with securitization trusts that issue Other Guarantee Transactions provides us with power to direct the activities that most significantly impact the economic performance of these VIEs (e.g., the ability to direct the servicing of the underlying assets of these entities) and obligation to absorb losses that could potentially be significant to the VIEs varies by transaction. For all Other Guarantee Transactions, our variable interest in these VIEs represents some form of credit guarantee, whether covering all the issued beneficial interests or only the most senior ones. The nature of our credit guarantee typically determines whether we have power to direct the activities that most significantly impact the economic performance of the VIE. | ||||||||||||||||||||
We consolidate Other Guarantee Transactions when our credit guarantee is in a first loss position to absorb credit losses on the underlying assets of these entities as of the reporting date and we also have the ability to direct the servicing of the underlying assets, which is the power to direct the activities that most significantly impact the economic performance of these VIEs. For those Other Guarantee Transactions in which our credit guarantee is not in a first loss position to absorb credit losses on the underlying assets of these entities as of the reporting date (i.e., our credit guarantee is in a secondary loss position), or we do not have the ability to direct the servicing of the underlying assets, we are not the primary beneficiary, and we do not consolidate the VIE. Our consolidation determination took into consideration the specific facts and circumstances of our involvement with each of these entities. As a result, we have concluded that we are the primary beneficiary of Other Guarantee Transactions with underlying assets totaling $8.9 billion and $11.0 billion at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
VIEs for which We are not the Primary Beneficiary | ||||||||||||||||||||
The table below presents the carrying amounts and classification of the assets and liabilities recorded on our consolidated balance sheets related to our variable interests in non-consolidated VIEs, as well as our maximum exposure to loss as a result of our involvement with these VIEs. Our involvement with VIEs for which we are not the primary beneficiary generally takes one of two forms: (a) purchasing an investment in these entities; or (b) providing a guarantee to these entities. Our maximum exposure to loss for those VIEs in which we have purchased an investment is calculated as the maximum potential charge that we would recognize in earnings if that investment were to become worthless. This amount does not include other-than-temporary impairments or other write-downs that we previously recognized through earnings. Our maximum exposure to loss for those VIEs for which we have provided a guarantee represents the contractual amounts that could be lost under the guarantees if counterparties or borrowers defaulted, without consideration of possible recoveries under credit enhancement arrangements. We do not believe the maximum exposure to loss disclosed in the table below is representative of the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation, including possible recoveries under credit enhancement arrangements. | ||||||||||||||||||||
Table 3.1 — Variable Interests in VIEs for which We are not the Primary Beneficiary | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Mortgage-Related | ||||||||||||||||||||
Security Trusts | ||||||||||||||||||||
Asset-Backed | Freddie Mac | Non-Freddie Mac | Unsecuritized | Other(1) | ||||||||||||||||
Investment Trusts(1) | Securities(2) | Securities(1) | Multifamily | |||||||||||||||||
Loans (3) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets and Liabilities Recorded on our Consolidated Balance Sheets | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Restricted cash and cash equivalents | $ | — | $ | 6 | $ | — | $ | 8 | $ | 58 | ||||||||||
Investments in securities: | ||||||||||||||||||||
Available-for-sale, at fair value | — | 40,659 | 84,765 | — | — | |||||||||||||||
Trading, at fair value | — | 9,349 | 7,414 | — | — | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Held-for-investment, unsecuritized | — | — | — | 50,306 | — | |||||||||||||||
Held-for-sale | — | — | — | 8,727 | — | |||||||||||||||
Accrued interest receivable | — | 232 | 226 | 261 | 7 | |||||||||||||||
Other assets | — | 833 | 14 | 407 | 477 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities, net | — | (3 | ) | — | — | (35 | ) | |||||||||||||
Other liabilities | — | (875 | ) | (2 | ) | (12 | ) | (558 | ) | |||||||||||
Maximum Exposure to Loss | $ | — | $ | 72,072 | $ | 92,559 | $ | 59,710 | $ | 10,415 | ||||||||||
Total Assets of Non-Consolidated VIEs(4) | $ | — | $ | 84,731 | $ | 506,699 | $ | 105,120 | $ | 23,707 | ||||||||||
31-Dec-12 | ||||||||||||||||||||
Mortgage-Related | ||||||||||||||||||||
Security Trusts | ||||||||||||||||||||
Asset-Backed | Freddie Mac | Non-Freddie Mac | Unsecuritized | Other(1) | ||||||||||||||||
Investment Trusts(1) | Securities(2) | Securities(1) | Multifamily | |||||||||||||||||
Loans(3) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets and Liabilities Recorded on our Consolidated Balance Sheets | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Restricted cash and cash equivalents | $ | — | $ | 24 | $ | — | $ | 22 | $ | 119 | ||||||||||
Investments in securities: | ||||||||||||||||||||
Available-for-sale, at fair value | — | 58,515 | 110,583 | — | — | |||||||||||||||
Trading, at fair value | 292 | 10,354 | 10,617 | — | — | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Held-for-investment, unsecuritized | — | — | — | 62,245 | — | |||||||||||||||
Held-for-sale | — | — | — | 14,238 | — | |||||||||||||||
Accrued interest receivable | — | 324 | 350 | 326 | 7 | |||||||||||||||
Derivative assets, net | — | — | — | — | 1 | |||||||||||||||
Other assets | — | 558 | 2 | 381 | 482 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities, net | — | (1 | ) | — | — | (40 | ) | |||||||||||||
Other liabilities | — | (667 | ) | (2 | ) | (29 | ) | (635 | ) | |||||||||||
Maximum Exposure to Loss | $ | 292 | $ | 51,045 | $ | 128,475 | $ | 77,213 | $ | 10,871 | ||||||||||
Total Assets of Non-Consolidated VIEs(4) | $ | 10,901 | $ | 59,302 | $ | 768,704 | $ | 130,512 | $ | 25,004 | ||||||||||
-1 | For our involvement with non-consolidated asset-backed investment trusts, non-Freddie Mac security trusts, and certain other VIEs where we do not provide a guarantee, our maximum exposure to loss is computed as the carrying amount if the security is classified as trading or the amortized cost if the security is classified as available-for-sale for our investments and related assets recorded on our consolidated balance sheets, including any unrealized amounts recorded in AOCI for securities classified as available-for-sale. See “NOTE 7: INVESTMENTS IN SECURITIES” for additional information regarding our asset-backed investments and non-Freddie Mac securities. | |||||||||||||||||||
-2 | Freddie Mac securities include our variable interests in single-family multiclass REMICs and Other Structured Securities, multifamily PCs, multifamily Other Structured Securities, and Other Guarantee Transactions that we do not consolidate. Our maximum exposure to loss includes guaranteed UPB of assets held by the non-consolidated VIEs related to multifamily PCs, multifamily Other Structured Securities, and Other Guarantee Transactions for which we record a guarantee asset (component of Other Assets) and guarantee obligation (component of Other Liabilities) on our consolidated balance sheets. Our maximum exposure to loss excludes most of our investments in single-family multiclass REMICs and Other Structured Securities as we already consolidate most of the collateral of these trusts on our consolidated balance sheets. Our investments in single-family REMICs and Other Structured Securities that are not consolidated do not give rise to any additional exposure to credit loss as we already consolidate the underlying collateral. | |||||||||||||||||||
-3 | For unsecuritized multifamily loans, our maximum exposure to loss includes accrued interest receivable associated with these loans. See “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES” for additional information about our unsecuritized multifamily loans. | |||||||||||||||||||
-4 | Except for unsecuritized multifamily loans, this represents the remaining UPB of assets held by non-consolidated VIEs using the most current information available, where our continuing involvement is significant. For unsecuritized multifamily loans, this represents the fair value of the property serving as collateral for the loan. We do not include the assets of our non-consolidated trusts related to single-family REMICs and Other Structured Securities backed by our PCs in this amount as we already consolidate the underlying collateral of these trusts on our consolidated balance sheets. | |||||||||||||||||||
Mortgage-Related Security Trusts | ||||||||||||||||||||
Freddie Mac Securities | ||||||||||||||||||||
Freddie Mac securities related to our variable interests in non-consolidated VIEs primarily consist of our REMICs and Other Structured Securities and Other Guarantee Transactions. At both December 31, 2013 and 2012, our involvement with most of our REMICS and Other Structured Securities as well as certain Other Guarantee Transactions does not provide us with the power to direct the activities that most significantly impact the economic performance of these VIEs. As a result, we hold a variable interest in, but are not the primary beneficiary of those securitization trusts. For non-consolidated REMICs and Other Structured Securities and Other Guarantee Transactions, our investments are primarily included in either available-for-sale securities or trading securities on our consolidated balance sheets. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities” for additional information on accounting for purchases of securities issued by resecuritization trusts. Our investments in these trusts are funded through the issuance of unsecured debt, which is recorded as other debt on our consolidated balance sheets. | ||||||||||||||||||||
Non-Freddie Mac Securities | ||||||||||||||||||||
We invest in a variety of mortgage-related securities issued by third-parties, including non-Freddie Mac agency securities, CMBS, other private-label securities backed by various mortgage-related assets, and obligations of states and political subdivisions. These investments typically represent interests in trusts that consist of a pool of mortgage-related assets and act as vehicles to allow originators to securitize those assets. Securities are structured from the underlying pool of assets to provide for varying degrees of risk, including potential loss from the credit risk and interest-rate risk of the underlying pool of mortgages. The originators of the financial assets or the underwriters of the securities offering create the trusts and typically own the residual interest in the trust assets. See “NOTE 7: INVESTMENTS IN SECURITIES” for additional information regarding our non-Freddie Mac securities. | ||||||||||||||||||||
Our investments in these non-Freddie Mac securities at December 31, 2013 were made between 1994 and 2013. We are not generally the primary beneficiary of non-Freddie Mac securities trusts because our investments are passive in nature and do not provide us with the power to direct the activities of the trusts that most significantly impact their economic performance. We were not the primary beneficiary of any significant non-Freddie Mac securities trusts as of December 31, 2013 or 2012. At both December 31, 2013 and 2012, our exposure was limited to the amount of our investment. Our investments in these trusts are funded through the issuance of unsecured debt, which is recorded as other debt on our consolidated balance sheets. | ||||||||||||||||||||
Unsecuritized Multifamily Loans | ||||||||||||||||||||
We purchase loans made to various multifamily real estate entities. We primarily purchase such loans for securitization. The loans we acquire usually are, at origination, equal to 80% or less of the value of the related underlying property. The remaining 20% of value is typically funded through equity contributions by the partners or members of the borrower entity. In a few cases, the 20% not funded through the loan we acquire also includes subordinate loans or mezzanine financing from third-party lenders. | ||||||||||||||||||||
We held more than 5,000 and 6,000 unsecuritized multifamily loans at December 31, 2013 and 2012, respectively. The UPB of our investments in these loans was $59.2 billion and $76.6 billion as of December 31, 2013 and 2012, respectively, and was included in unsecuritized held-for-investment mortgage loans, at amortized cost, and held-for-sale mortgage loans at fair value on our consolidated balance sheets. We are not generally the primary beneficiary of the multifamily real estate borrowing entities because the loans we acquire are passive in nature and do not provide us with the power to direct the activities of these entities that most significantly impact their economic performance. However, when a multifamily loan becomes delinquent, we may become the primary beneficiary of the borrowing entity depending upon the structure of this entity and the rights granted to us under the governing legal documents. At both December 31, 2013 and 2012, the amount of unsecuritized multifamily loans for which we could be considered the primary beneficiary of the underlying borrowing entity was not material. See “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES” for more information. | ||||||||||||||||||||
Other | ||||||||||||||||||||
Our involvement with other VIEs primarily includes certain of our other mortgage-related guarantees and other guarantee commitments that we account for as derivatives. | ||||||||||||||||||||
At December 31, 2013 and 2012, we were the primary beneficiary of one and two, respectively, real estate entities that invest in multifamily property, related to credit-enhanced multifamily housing revenue bonds that were not deemed to be material. We were not the primary beneficiary of the remainder of other VIEs because our involvement in these VIEs is passive in nature and does not provide us with the power to direct the activities of the VIEs that most significantly impact their economic performance. See “Table 3.1 — Variable Interests in VIEs for which We are not the Primary Beneficiary” for the carrying amounts and classification of the assets and liabilities recorded on our consolidated balance sheets related to our other variable interests in non-consolidated VIEs, as well as our maximum exposure to loss as a result of our involvement with these VIEs. |
Mortgage_Loans_and_Loan_Loss_R
Mortgage Loans and Loan Loss Reserves | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | |||||||||||||||||||||||||||||||
MORTGAGE LOANS AND LOAN LOSS RESERVES | ' | |||||||||||||||||||||||||||||||
NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES | ||||||||||||||||||||||||||||||||
We own both single-family mortgage loans, which are secured by one to four unit residential properties, and multifamily mortgage loans, which are secured by properties with five or more residential rental units. Our single-family loans are predominately first lien, fixed-rate mortgages secured by the borrower’s primary residence. For a discussion of our significant accounting policies regarding our mortgage loans and loan loss reserves, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.” | ||||||||||||||||||||||||||||||||
The table below summarizes the types of loans on our consolidated balance sheets as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
Table 4.1 — Mortgage Loans | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Unsecuritized | Held by | Total | Unsecuritized | Held by | Total | |||||||||||||||||||||||||||
Consolidated | Consolidated | |||||||||||||||||||||||||||||||
Trusts | Trusts | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family:(1) | ||||||||||||||||||||||||||||||||
Fixed-rate | ||||||||||||||||||||||||||||||||
Amortizing | $ | 113,597 | $ | 1,402,841 | $ | 1,516,438 | $ | 131,061 | $ | 1,356,030 | $ | 1,487,091 | ||||||||||||||||||||
Interest-only | 1,476 | 4,826 | 6,302 | 2,445 | 8,874 | 11,319 | ||||||||||||||||||||||||||
Total fixed-rate | 115,073 | 1,407,667 | 1,522,740 | 133,506 | 1,364,904 | 1,498,410 | ||||||||||||||||||||||||||
Adjustable-rate | ||||||||||||||||||||||||||||||||
Amortizing | 1,935 | 65,429 | 67,364 | 2,630 | 67,067 | 69,697 | ||||||||||||||||||||||||||
Interest-only | 4,576 | 23,841 | 28,417 | 7,323 | 31,590 | 38,913 | ||||||||||||||||||||||||||
Total adjustable-rate | 6,511 | 89,270 | 95,781 | 9,953 | 98,657 | 108,610 | ||||||||||||||||||||||||||
Other Guarantee Transactions | — | 8,431 | 8,431 | — | 10,407 | 10,407 | ||||||||||||||||||||||||||
FHA/VA and other governmental | 553 | 3,354 | 3,907 | 1,285 | 3,062 | 4,347 | ||||||||||||||||||||||||||
Total single-family | 122,137 | 1,508,722 | 1,630,859 | 144,744 | 1,477,030 | 1,621,774 | ||||||||||||||||||||||||||
Multifamily:(1) | ||||||||||||||||||||||||||||||||
Fixed-rate | 50,701 | 444 | 51,145 | 66,384 | 448 | 66,832 | ||||||||||||||||||||||||||
Adjustable-rate | 8,467 | — | 8,467 | 10,182 | — | 10,182 | ||||||||||||||||||||||||||
Other governmental | 3 | — | 3 | 3 | — | 3 | ||||||||||||||||||||||||||
Total multifamily | 59,171 | 444 | 59,615 | 76,569 | 448 | 77,017 | ||||||||||||||||||||||||||
Total UPB of mortgage loans | 181,308 | 1,509,166 | 1,690,474 | 221,313 | 1,477,478 | 1,698,791 | ||||||||||||||||||||||||||
Deferred fees, unamortized premiums, discounts and other cost basis adjustments | (4,817 | ) | 23,745 | 18,928 | (5,376 | ) | 23,373 | 17,997 | ||||||||||||||||||||||||
Fair value adjustments on loans held-for sale(2) | 6 | — | 6 | 266 | — | 266 | ||||||||||||||||||||||||||
Allowance for loan losses on mortgage loans held-for-investment | (21,612 | ) | (3,006 | ) | (24,618 | ) | (25,788 | ) | (4,919 | ) | (30,707 | ) | ||||||||||||||||||||
Total mortgage loans, net | $ | 154,885 | $ | 1,529,905 | $ | 1,684,790 | $ | 190,415 | $ | 1,495,932 | $ | 1,686,347 | ||||||||||||||||||||
Mortgage loans, net: | ||||||||||||||||||||||||||||||||
Held-for-investment | $ | 146,158 | $ | 1,529,905 | $ | 1,676,063 | $ | 176,177 | $ | 1,495,932 | $ | 1,672,109 | ||||||||||||||||||||
Held-for-sale | 8,727 | — | 8,727 | 14,238 | — | 14,238 | ||||||||||||||||||||||||||
Total mortgage loans, net | $ | 154,885 | $ | 1,529,905 | $ | 1,684,790 | $ | 190,415 | $ | 1,495,932 | $ | 1,686,347 | ||||||||||||||||||||
-1 | Based on UPB and excluding mortgage loans traded, but not yet settled. | |||||||||||||||||||||||||||||||
-2 | Consists of fair value adjustments associated with multifamily mortgage loans for which we have made a fair value election. | |||||||||||||||||||||||||||||||
During 2013 and 2012, we purchased $412.9 billion and $420.0 billion, respectively, in UPB of single-family mortgage loans, and $1.3 billion and $1.1 billion, respectively, in UPB of multifamily loans that were classified as held-for-investment. Our sales of multifamily mortgage loans occur primarily through the issuance of multifamily K Certificates, which we categorize as Other Guarantee Transactions. During 2013 and 2012, we sold $28.3 billion and $20.8 billion, respectively, of held-for-sale multifamily mortgage loans. See “NOTE 14: FINANCIAL GUARANTEES” for more information on our issuances of Other Guarantee Transactions. We did not have significant reclassifications of mortgage loans into held-for-sale from held-for-investment during 2013. | ||||||||||||||||||||||||||||||||
Credit Quality of Mortgage Loans | ||||||||||||||||||||||||||||||||
We evaluate the credit quality of single-family loans using different criteria than the criteria we use to evaluate multifamily loans. The current LTV ratio is one key factor we consider when estimating our loan loss reserves for single-family loans. As estimated current LTV ratios increase, the borrower’s equity in the home decreases, which negatively affects the borrower’s ability to refinance (outside of HARP) or to sell the property for an amount at or above the balance of the outstanding mortgage loan. A second-lien mortgage also reduces the borrower’s equity in the home, and has a similar negative effect on the borrower’s ability to refinance or sell the property for an amount at or above the combined balances of the first and second mortgages. As of both December 31, 2013 and 2012, based on data collected by us at loan delivery, approximately 14% of loans in our single-family credit guarantee portfolio had second-lien financing by third parties at origination of the first mortgage. However, borrowers are free to obtain second-lien financing after origination, and we are not entitled to receive notification when a borrower does so. Therefore, it is likely that additional borrowers have post-origination second-lien mortgages. For further information about concentrations of risk associated with our single-family and multifamily mortgage loans, see “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS.” | ||||||||||||||||||||||||||||||||
The table below presents information on the estimated current LTV ratios of single-family loans on our consolidated balance sheets, all of which are held-for-investment. Our current LTV ratio estimates are based on available data through the end of each respective period presented. | ||||||||||||||||||||||||||||||||
Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Estimated Current LTV Ratio(1) | Estimated Current LTV Ratio(1) | |||||||||||||||||||||||||||||||
≤ 80 | > 80 to 100 | > 100(2) | Total | ≤ 80 | > 80 to 100 | > 100(2) | Total | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family loans: | ||||||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 819,509 | $ | 269,110 | $ | 124,491 | $ | 1,213,110 | $ | 699,386 | $ | 309,099 | $ | 188,048 | $ | 1,196,533 | ||||||||||||||||
15-year amortizing fixed-rate(3) | 270,211 | 19,658 | 5,748 | 295,617 | 249,666 | 18,473 | 5,433 | 273,572 | ||||||||||||||||||||||||
Adjustable-rate(4) | 56,208 | 6,714 | 1,578 | 64,500 | 50,764 | 10,341 | 4,845 | 65,950 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 29,927 | 21,564 | 25,089 | 76,580 | 27,642 | 24,030 | 52,057 | 103,729 | ||||||||||||||||||||||||
Total single-family loans | $ | 1,175,855 | $ | 317,046 | $ | 156,906 | 1,649,807 | $ | 1,027,458 | $ | 361,943 | $ | 250,383 | 1,639,784 | ||||||||||||||||||
Multifamily loans | 50,874 | 63,032 | ||||||||||||||||||||||||||||||
Total recorded investment of held-for-investment loans | $ | 1,700,681 | $ | 1,702,816 | ||||||||||||||||||||||||||||
-1 | The current LTV ratios are management estimates, which are updated on a monthly basis. Current market values are estimated by adjusting the value of the property at origination based on changes in the market value of homes in the same geographical area since that time. The value of a property at origination is based on: (a) for purchase mortgages, either the lesser of the appraised value of the property at the time of mortgage origination or the mortgage borrower’s purchase price; or (b) for refinance mortgages, a third-party appraisal. Changes in market value are derived from our internal index which measures price changes for repeat sales and refinancing activity on the same properties using Freddie Mac and Fannie Mae single-family mortgage acquisitions, including foreclosure sales. Estimates of the current LTV ratio include the credit-enhanced portion of the loan and exclude any secondary financing by third parties. The existence of a second lien reduces the borrower’s equity in the property and, therefore, can increase the risk of default. | |||||||||||||||||||||||||||||||
-2 | The serious delinquency rate for the total of single-family held-for-investment mortgage loans with estimated current LTV ratios in excess of 100% was 9.9% and 12.7% as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
-3 | The majority of our loan modifications result in new terms that include fixed interest rates after modification. As of December 31, 2013 and 2012, we have categorized UPB of approximately $43.8 billion and $43.4 billion, respectively, of modified loans as fixed-rate loans (instead of as adjustable rate loans), even though the modified loans have rate adjustment provisions. In these cases, while the terms of the modified loans provide for the interest rate to adjust in the future, such future rates are determined at the time of modification rather than at a subsequent date. | |||||||||||||||||||||||||||||||
-4 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||||||
-5 | We have discontinued our purchases of Alt-A, interest-only, and option ARM loans. For reporting purposes: (a) loans within the Alt-A category continue to be presented in that category following modification, even though the borrower may have provided full documentation of assets and income to complete the modification; and (b) loans within the option ARM category continue to be presented in that category following modification, even though the modified loan no longer provides for optional payment provisions. | |||||||||||||||||||||||||||||||
For information about the payment status of single-family and multifamily mortgage loans, including the amount of such loans we deem impaired, see “NOTE 5: INDIVIDUALLY IMPAIRED AND NON-PERFORMING LOANS.” For a discussion of certain indicators of credit quality for the multifamily loans on our consolidated balance sheets, see “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS — Multifamily Mortgage Portfolio.” | ||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Reserve for Guarantee Losses, or Loan Loss Reserves | ||||||||||||||||||||||||||||||||
Our loan loss reserves consist of our: (a) allowance for loan losses on mortgage loans that we classify as held-for-investment on our consolidated balance sheets; and (b) reserve for guarantee losses associated with Freddie Mac mortgage-related securities backed by multifamily loans, certain single-family Other Guarantee Transactions, and other guarantee commitments, for which we have incremental credit risk. | ||||||||||||||||||||||||||||||||
A significant portion of the unsecuritized single-family loans on our consolidated balance sheets are seriously delinquent and/or TDR loans that we previously removed from our PC pools. These seriously delinquent and TDR loans typically have a higher associated allowance for loan loss than loans that remain in consolidated trusts. Single-family loans that remain in consolidated trusts are generally aggregated and measured collectively for impairment based on similar risk characteristics of the loans. | ||||||||||||||||||||||||||||||||
The table below presents our loan loss reserves activity for the single-family and multifamily loans that we own or guarantee. | ||||||||||||||||||||||||||||||||
Table 4.3 — Detail of Loan Loss Reserves | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Allowance for Loan Losses | Reserve for | Allowance for Loan Losses | Reserve for | |||||||||||||||||||||||||||||
Guarantee | Guarantee | |||||||||||||||||||||||||||||||
Unsecuritized | Held By | Losses(1) | Total | Unsecuritized | Held By | Losses(1) | Total | |||||||||||||||||||||||||
Consolidated | Consolidated | |||||||||||||||||||||||||||||||
Trusts | Trusts | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 25,449 | $ | 4,918 | $ | 141 | $ | 30,508 | $ | 30,406 | $ | 8,351 | $ | 159 | $ | 38,916 | ||||||||||||||||
Provision (benefit) for credit losses | (3,995 | ) | 1,790 | (42 | ) | (2,247 | ) | (3,186 | ) | 5,199 | — | 2,013 | ||||||||||||||||||||
Charge-offs(2) | (8,181 | ) | (804 | ) | (10 | ) | (8,995 | ) | (12,559 | ) | (950 | ) | (11 | ) | (13,520 | ) | ||||||||||||||||
Recoveries(3) | 3,810 | 503 | — | 4,313 | 2,136 | 126 | — | 2,262 | ||||||||||||||||||||||||
Transfers, net(4) | 4,404 | (3,401 | ) | (4 | ) | 999 | 8,652 | (7,808 | ) | (7 | ) | 837 | ||||||||||||||||||||
Ending balance | $ | 21,487 | $ | 3,006 | $ | 85 | $ | 24,578 | $ | 25,449 | $ | 4,918 | $ | 141 | $ | 30,508 | ||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 339 | $ | 1 | $ | 42 | $ | 382 | $ | 506 | $ | — | $ | 39 | $ | 545 | ||||||||||||||||
Provision (benefit) for credit losses | (208 | ) | (1 | ) | (9 | ) | (218 | ) | (132 | ) | — | 9 | (123 | ) | ||||||||||||||||||
Charge-offs(2) | (7 | ) | — | — | (7 | ) | (34 | ) | — | (2 | ) | (36 | ) | |||||||||||||||||||
Recoveries(3) | 1 | — | — | 1 | — | — | 2 | 2 | ||||||||||||||||||||||||
Transfers, net(4) | — | — | (7 | ) | (7 | ) | (1 | ) | 1 | (6 | ) | (6 | ) | |||||||||||||||||||
Ending balance | $ | 125 | $ | — | $ | 26 | $ | 151 | $ | 339 | $ | 1 | $ | 42 | $ | 382 | ||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 25,788 | $ | 4,919 | $ | 183 | $ | 30,890 | $ | 30,912 | $ | 8,351 | $ | 198 | $ | 39,461 | ||||||||||||||||
Provision (benefit) for credit losses | (4,203 | ) | 1,789 | (51 | ) | (2,465 | ) | (3,318 | ) | 5,199 | 9 | 1,890 | ||||||||||||||||||||
Charge-offs(2) | (8,188 | ) | (804 | ) | (10 | ) | (9,002 | ) | (12,593 | ) | (950 | ) | (13 | ) | (13,556 | ) | ||||||||||||||||
Recoveries(3) | 3,811 | 503 | — | 4,314 | 2,136 | 126 | 2 | 2,264 | ||||||||||||||||||||||||
Transfers, net(4) | 4,404 | (3,401 | ) | (11 | ) | 992 | 8,651 | (7,807 | ) | (13 | ) | 831 | ||||||||||||||||||||
Ending balance | $ | 21,612 | $ | 3,006 | $ | 111 | $ | 24,729 | $ | 25,788 | $ | 4,919 | $ | 183 | $ | 30,890 | ||||||||||||||||
Total loan loss reserve as a percentage of the total mortgage portfolio, excluding non-Freddie Mac securities | 1.37 | % | 1.71 | % | ||||||||||||||||||||||||||||
-1 | Loans associated with our reserve for guarantee losses are those loans that underlie our non-consolidated securitization trusts and other guarantee commitments and are evaluated for impairment on a collective basis. Our reserve for guarantee losses is included in other liabilities on our consolidated balance sheets. | |||||||||||||||||||||||||||||||
-2 | Charge-offs represent the amount of a loan that has been discharged to remove the loan from our consolidated balance sheet principally due to either foreclosure transfers or short sales. Charge-offs exclude $252 million and $308 million for the years ended December 31, 2013 and 2012, respectively, related to: (a) amounts recorded as losses on loans purchased within other expenses on our consolidated statements of comprehensive income, which relate to certain loans purchased under financial guarantees; or (b) cumulative fair value losses recognized through the date of foreclosure for Multifamily loans which we elected to carry at fair value at the time of our purchase. We record charge-offs and recoveries on loans held by consolidated trusts when a loss event (such as a foreclosure transfer or foreclosure alternative) occurs on a loan while it remains in a consolidated trust. | |||||||||||||||||||||||||||||||
-3 | Recoveries of charge-offs primarily result from foreclosure alternatives and REO acquisitions on loans where: (a) a share of default risk has been assumed by mortgage insurers, servicers, or other third parties through credit enhancements; or (b) we received a reimbursement of our losses from a seller/servicer associated with a repurchase request on a loan that experienced a foreclosure transfer or a foreclosure alternative. | |||||||||||||||||||||||||||||||
-4 | For the years ended December 31, 2013 and 2012, consists of: (a) approximately $3.4 billion and $7.8 billion, respectively, of reclassified single-family reserves related to our removal of loans previously held by consolidated trusts; and (b) approximately $1.0 billion and $0.8 billion, respectively, attributable to capitalization of past due interest on modified mortgage loans. | |||||||||||||||||||||||||||||||
The table below presents our allowance for loan losses and our recorded investment in mortgage loans, held-for-investment, by impairment evaluation methodology. | ||||||||||||||||||||||||||||||||
Table 4.4 — Net Investment in Mortgage Loans | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Single-family | Multifamily | Total | Single-family | Multifamily | Total | |||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Recorded investment: | ||||||||||||||||||||||||||||||||
Collectively evaluated | $ | 1,551,667 | $ | 49,598 | $ | 1,601,265 | $ | 1,550,493 | $ | 60,836 | $ | 1,611,329 | ||||||||||||||||||||
Individually evaluated | 98,140 | 1,276 | 99,416 | 89,291 | 2,196 | 91,487 | ||||||||||||||||||||||||||
Total recorded investment | 1,649,807 | 50,874 | 1,700,681 | 1,639,784 | 63,032 | 1,702,816 | ||||||||||||||||||||||||||
Ending balance of the allowance for loan losses: | ||||||||||||||||||||||||||||||||
Collectively evaluated | (5,939 | ) | (45 | ) | (5,984 | ) | (12,432 | ) | (135 | ) | (12,567 | ) | ||||||||||||||||||||
Individually evaluated | (18,554 | ) | (80 | ) | (18,634 | ) | (17,935 | ) | (205 | ) | (18,140 | ) | ||||||||||||||||||||
Total ending balance of the allowance | (24,493 | ) | (125 | ) | (24,618 | ) | (30,367 | ) | (340 | ) | (30,707 | ) | ||||||||||||||||||||
Net investment in mortgage loans | $ | 1,625,314 | $ | 50,749 | $ | 1,676,063 | $ | 1,609,417 | $ | 62,692 | $ | 1,672,109 | ||||||||||||||||||||
A significant number of unsecuritized single-family mortgage loans on our consolidated balance sheets are individually evaluated for impairment while substantially all single-family mortgage loans held by our consolidated trusts are collectively evaluated for impairment. The ending balance of the allowance for loan losses associated with our held-for-investment unsecuritized mortgage loans represented approximately 12.9% and 12.8% of the recorded investment in such loans at December 31, 2013 and 2012, respectively. The ending balance of the allowance for loan losses associated with mortgage loans held by our consolidated trusts represented approximately 0.2% and 0.3% of the recorded investment in such loans as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
Credit Protection and Other Forms of Credit Enhancement | ||||||||||||||||||||||||||||||||
In connection with many of our mortgage loans held-for-investment and other mortgage-related guarantees, we have credit protection in the form of primary mortgage insurance, pool insurance, recourse to lenders, and other forms of credit enhancements. | ||||||||||||||||||||||||||||||||
The table below presents the UPB of loans on our consolidated balance sheets or underlying our financial guarantees with credit protection and the maximum amounts of potential loss recovery by type of credit protection. | ||||||||||||||||||||||||||||||||
Table 4.5 — Recourse and Other Forms of Credit Protection(1) | ||||||||||||||||||||||||||||||||
UPB at | Maximum Coverage(2) at | |||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family: | ||||||||||||||||||||||||||||||||
Primary mortgage insurance | $ | 203,470 | $ | 188,419 | $ | 50,823 | $ | 46,685 | ||||||||||||||||||||||||
Risk transfer transactions(3) | 56,903 | — | 1,183 | — | ||||||||||||||||||||||||||||
Lender recourse and indemnifications | 7,119 | 7,875 | 6,726 | 7,718 | ||||||||||||||||||||||||||||
Pool insurance(4) | 4,683 | 7,307 | 1,186 | 1,355 | ||||||||||||||||||||||||||||
HFA indemnification(5) | 4,051 | 6,270 | 3,323 | 3,323 | ||||||||||||||||||||||||||||
Subordination(6) | 2,644 | 2,960 | 399 | 503 | ||||||||||||||||||||||||||||
Other credit enhancements | 38 | 62 | 38 | 62 | ||||||||||||||||||||||||||||
Total | $ | 278,908 | $ | 212,893 | $ | 63,678 | $ | 59,646 | ||||||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||||||
K Certificates(7) | $ | 59,326 | $ | 36,732 | $ | 10,601 | $ | 6,256 | ||||||||||||||||||||||||
Subordination(6) | 4,435 | 3,817 | 756 | 442 | ||||||||||||||||||||||||||||
HFA indemnification(5) | 905 | 1,112 | 699 | 699 | ||||||||||||||||||||||||||||
Other credit enhancements | 6,666 | 7,235 | 1,834 | 2,263 | ||||||||||||||||||||||||||||
Total | $ | 71,332 | $ | 48,896 | $ | 13,890 | $ | 9,660 | ||||||||||||||||||||||||
-1 | Includes the credit protection associated with unsecuritized mortgage loans, loans held by our consolidated trusts as well as our non-consolidated mortgage guarantees and excludes FHA/VA and other governmental loans. Except for subordination coverage, these amounts exclude credit protection associated with $11.5 billion and $13.8 billion in UPB of single-family loans underlying Other Guarantee Transactions as of December 31, 2013 and 2012, respectively, for which the information was not available. Also excludes repurchase rights (subject to certain conditions and limitations) we have under representations and warranties provided by our agreements with seller/servicers to underwrite loans and service them in accordance with our standards. | |||||||||||||||||||||||||||||||
-2 | Except for subordination and K Certificates, this represents the remaining amount of loss recovery that is available subject to terms of counterparty agreements. For subordination and K Certificates coverage, this represents the UPB of the securities that are subordinate to our guarantee, which could provide protection by absorbing first losses. | |||||||||||||||||||||||||||||||
-3 | Represents: (a) STACR debt note transactions in which we issue and sell debt securities, the principal balance of which is subject to the credit and prepayment risk of a reference pool of single-family mortgage loans owned or guaranteed by Freddie Mac; and (b) a transaction in which we purchased an insurance policy on a portion of the mezzanine loss position that was not issued in one of the STACR debt note transactions. UPB amounts presented represent the UPB of the loans in the reference pool. Maximum coverage amounts presented represent the outstanding balance of the debt securities held by third parties as well as the remaining aggregate limit of insurance purchased from a third party. | |||||||||||||||||||||||||||||||
-4 | Maximum coverage amounts presented have been limited to the UPB at period end. Excludes approximately $1.8 billion and $3.3 billion in UPB at December 31, 2013 and 2012, respectively, where the related loans are also covered by primary mortgage insurance. | |||||||||||||||||||||||||||||||
-5 | Represents the amount of potential reimbursement of losses on securities we have guaranteed that are backed by state and local HFA bonds related to the HFA initiative, under which Treasury bears initial losses on these securities up to 35% of the original UPB issued under the HFA initiative on a combined program-wide basis. Treasury will also bear losses of unpaid interest. | |||||||||||||||||||||||||||||||
-6 | Represents Freddie Mac issued mortgage-related securities with subordination protection, excluding multifamily K Certificates and those securities backed by state and local HFA bonds related to the HFA initiative. Excludes mortgage-related securities where subordination coverage was exhausted. Maximum coverage amounts are limited to the UPB. | |||||||||||||||||||||||||||||||
-7 | Represents multifamily K Certificates with subordination protection. | |||||||||||||||||||||||||||||||
Primary mortgage insurance is the most prevalent type of credit enhancement protecting our single-family credit guarantee portfolio, and is provided on a loan-level basis. Pool insurance contracts provide insurance on a group of mortgage loans up to a stated aggregate loss limit. We have not purchased pool insurance on single-family loans since March 2008. During 2013 and 2012, we also reached the maximum limit of recovery on certain pool insurance contracts. For information about counterparty risk associated with mortgage insurers, see “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS — Mortgage Insurers.” | ||||||||||||||||||||||||||||||||
We executed two structured agency credit risk (STACR) debt note transactions during 2013 in which we issued unsecured debt securities that reduce our exposure to credit risk. In a STACR debt note transaction, we create a reference pool consisting of a large group of recently acquired single-family mortgage loans. We then create a hypothetical securitization structure with notional credit risk positions, or tranches (e.g., first loss, mezzanine, and senior). We issue STACR debt notes that relate to the mezzanine tranches, though the notes are not backed or collateralized by mortgage loans in the reference pool. The principal balance of the STACR debt notes is reduced when certain specified credit events (such as a loan becoming 180 days delinquent) occur on the loans in the reference pool. In turn, this may reduce the total amount of payments we ultimately make on the STACR debt notes. | ||||||||||||||||||||||||||||||||
We also have credit enhancements protecting our multifamily mortgage portfolio. Subordination, primarily through our K Certificates, is the most prevalent type, whereby we mitigate our credit risk exposure by structuring our securities to sell the expected credit risk to private investors who purchase the subordinate tranches. | ||||||||||||||||||||||||||||||||
We also have credit protection for certain of the mortgage loans on our consolidated balance sheets that are covered by insurance or partial guarantees issued by federal agencies (such as FHA, VA, and USDA). The total UPB of these loans was $3.9 billion and $4.3 billion as of December 31, 2013 and 2012, respectively. |
Individually_Impaired_and_NonP
Individually Impaired and Non-Performing Loans | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Individually Impaired and Non-Performing Loans [Abstract] | ' | |||||||||||||||||||||||||||
INDIVIDUALLY IMPAIRED AND NON-PERFORMING LOANS | ' | |||||||||||||||||||||||||||
NOTE 5: INDIVIDUALLY IMPAIRED AND NON-PERFORMING LOANS | ||||||||||||||||||||||||||||
Individually Impaired Loans | ||||||||||||||||||||||||||||
Individually impaired single-family loans include performing and non-performing TDRs, as well as loans acquired under our financial guarantees with deteriorated credit quality. Individually impaired multifamily loans include performing and non-performing TDRs, loans three monthly payments or more past due, and loans that are impaired based on management judgment. For a discussion of our significant accounting policies regarding impaired and non-performing loans, which are applied consistently for multifamily loans and single-family loan classes, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.” | ||||||||||||||||||||||||||||
Total loan loss reserves consist of a specific valuation allowance related to individually impaired mortgage loans, and a general reserve for other probable incurred losses. Our recorded investment in individually impaired mortgage loans and the related specific valuation allowance are summarized in the table below by product class (for single-family loans). | ||||||||||||||||||||||||||||
Table 5.1 — Individually Impaired Loans | ||||||||||||||||||||||||||||
Balance at | For The Year Ended | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||||||||||
UPB | Recorded | Associated | Net | Average | Interest | Interest | ||||||||||||||||||||||
Investment | Allowance | Investment | Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||||||||||
On Cash | ||||||||||||||||||||||||||||
Basis(1) | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
With no specific allowance recorded(2): | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 5,927 | $ | 3,355 | $ | — | $ | 3,355 | $ | 3,370 | $ | 394 | $ | 34 | ||||||||||||||
15-year amortizing fixed-rate(3) | 62 | 34 | — | 34 | 31 | 6 | 1 | |||||||||||||||||||||
Adjustable rate(4) | 19 | 13 | — | 13 | 13 | 1 | — | |||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 1,758 | 1,038 | — | 1,038 | 978 | 72 | 6 | |||||||||||||||||||||
Total with no specific allowance recorded | 7,766 | 4,440 | — | 4,440 | 4,392 | 473 | 41 | |||||||||||||||||||||
With specific allowance recorded:(6) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 75,633 | 74,554 | (14,431 | ) | 60,123 | 69,922 | 2,127 | 282 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,324 | 1,324 | (43 | ) | 1,281 | 1,109 | 50 | 11 | ||||||||||||||||||||
Adjustable rate(4) | 967 | 962 | (84 | ) | 878 | 855 | 22 | 6 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 17,210 | 16,860 | (3,996 | ) | 12,864 | 16,526 | 369 | 69 | ||||||||||||||||||||
Total with specific allowance recorded | 95,134 | 93,700 | (18,554 | ) | 75,146 | 88,412 | 2,568 | 368 | ||||||||||||||||||||
Combined single-family: | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 81,560 | 77,909 | (14,431 | ) | 63,478 | 73,292 | 2,521 | 316 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,386 | 1,358 | (43 | ) | 1,315 | 1,140 | 56 | 12 | ||||||||||||||||||||
Adjustable rate(4) | 986 | 975 | (84 | ) | 891 | 868 | 23 | 6 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 18,968 | 17,898 | (3,996 | ) | 13,902 | 17,504 | 441 | 75 | ||||||||||||||||||||
Total single-family(7) | $ | 102,900 | $ | 98,140 | $ | (18,554 | ) | $ | 79,586 | $ | 92,804 | $ | 3,041 | $ | 409 | |||||||||||||
Multifamily — | ||||||||||||||||||||||||||||
With no specific allowance recorded(8) | $ | 694 | $ | 681 | $ | — | $ | 681 | $ | 1,108 | $ | 48 | $ | 20 | ||||||||||||||
With specific allowance recorded | 608 | 595 | (80 | ) | 515 | 891 | 41 | 31 | ||||||||||||||||||||
Total multifamily | $ | 1,302 | $ | 1,276 | $ | (80 | ) | $ | 1,196 | $ | 1,999 | $ | 89 | $ | 51 | |||||||||||||
Total single-family and multifamily | $ | 104,202 | $ | 99,416 | $ | (18,634 | ) | $ | 80,782 | $ | 94,803 | $ | 3,130 | $ | 460 | |||||||||||||
Balance at | For The Year Ended | |||||||||||||||||||||||||||
31-Dec-12 | December 31, 2012 | |||||||||||||||||||||||||||
UPB | Recorded | Associated | Net | Average | Interest | Interest | ||||||||||||||||||||||
Investment | Allowance | Investment | Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||||||||||
On Cash | ||||||||||||||||||||||||||||
Basis(1) | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
With no specific allowance recorded(2): | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 6,582 | $ | 3,236 | $ | — | $ | 3,236 | $ | 3,136 | $ | 339 | $ | 46 | ||||||||||||||
15-year amortizing fixed-rate(3) | 64 | 30 | — | 30 | 25 | 6 | 1 | |||||||||||||||||||||
Adjustable rate(4) | 19 | 12 | — | 12 | 7 | — | — | |||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 1,799 | 857 | — | 857 | 847 | 63 | 11 | |||||||||||||||||||||
Total with no specific allowance recorded | 8,464 | 4,135 | — | 4,135 | 4,015 | 408 | 58 | |||||||||||||||||||||
With specific allowance recorded:(6) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 67,473 | 66,501 | (13,522 | ) | 52,979 | 55,431 | 1,632 | 279 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,134 | 1,125 | (55 | ) | 1,070 | 714 | 31 | 8 | ||||||||||||||||||||
Adjustable rate(4) | 883 | 874 | (107 | ) | 767 | 558 | 14 | 5 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 16,946 | 16,656 | (4,251 | ) | 12,405 | 14,278 | 326 | 82 | ||||||||||||||||||||
Total with specific allowance recorded | 86,436 | 85,156 | (17,935 | ) | 67,221 | 70,981 | 2,003 | 374 | ||||||||||||||||||||
Combined single-family: | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 74,055 | 69,737 | (13,522 | ) | 56,215 | 58,567 | 1,971 | 325 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,198 | 1,155 | (55 | ) | 1,100 | 739 | 37 | 9 | ||||||||||||||||||||
Adjustable rate (4) | 902 | 886 | (107 | ) | 779 | 565 | 14 | 5 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 18,745 | 17,513 | (4,251 | ) | 13,262 | 15,125 | 389 | 93 | ||||||||||||||||||||
Total single-family(7) | $ | 94,900 | $ | 89,291 | $ | (17,935 | ) | $ | 71,356 | $ | 74,996 | $ | 2,411 | $ | 432 | |||||||||||||
Multifamily — | ||||||||||||||||||||||||||||
With no specific allowance recorded(8) | $ | 978 | $ | 966 | $ | — | $ | 966 | $ | 1,420 | $ | 61 | $ | 37 | ||||||||||||||
With specific allowance recorded | 1,248 | 1,230 | (205 | ) | 1,025 | 1,470 | 68 | 51 | ||||||||||||||||||||
Total multifamily | $ | 2,226 | $ | 2,196 | $ | (205 | ) | $ | 1,991 | $ | 2,890 | $ | 129 | $ | 88 | |||||||||||||
Total single-family and multifamily | $ | 97,126 | $ | 91,487 | $ | (18,140 | ) | $ | 73,347 | $ | 77,886 | $ | 2,540 | $ | 520 | |||||||||||||
-1 | Consists of income recognized during the period related to loans categorized as non-accrual. | |||||||||||||||||||||||||||
-2 | Individually impaired loans with no specific related valuation allowance primarily represent mortgage loans removed from PC pools and accounted for in accordance with the accounting guidance for loans and debt securities acquired with deteriorated credit quality that have not experienced further deterioration. | |||||||||||||||||||||||||||
-3 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-4 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||
-5 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-6 | Consists primarily of mortgage loans classified as TDRs. | |||||||||||||||||||||||||||
-7 | As of December 31, 2013 and 2012 includes $95.1 billion and $86.4 billion, respectively, of UPB associated with loans for which we have recorded a specific allowance, and $7.8 billion and $8.5 billion, respectively, of UPB associated with loans that have no specific allowance recorded. See endnote (2) for additional information. | |||||||||||||||||||||||||||
-8 | Individually impaired multifamily loans with no specific related valuation allowance primarily represent those loans for which the collateral value is sufficiently in excess of the loan balance to result in recovery of the entire recorded investment if the property were foreclosed upon or otherwise subject to disposition. | |||||||||||||||||||||||||||
Interest income foregone on individually impaired loans was $2.7 billion, $2.3 billion and $1.6 billion for the years ended December 31, 2013, 2012 and 2011 respectively. | ||||||||||||||||||||||||||||
Mortgage Loan Performance | ||||||||||||||||||||||||||||
We do not accrue interest on loans three months or more past due. | ||||||||||||||||||||||||||||
The table below presents the recorded investment of our single-family and multifamily mortgage loans, held-for-investment, by payment status. | ||||||||||||||||||||||||||||
Table 5.2 — Payment Status of Mortgage Loans(1) | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Current | One | Two | Three Months or | Total | Non-accrual | |||||||||||||||||||||||
Month | Months | More Past Due, | ||||||||||||||||||||||||||
Past Due | Past Due | or in Foreclosure | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | $ | 1,157,057 | $ | 19,743 | $ | 6,675 | $ | 29,635 | $ | 1,213,110 | $ | 29,620 | ||||||||||||||||
15-year amortizing fixed-rate(2) | 293,286 | 1,196 | 271 | 864 | 295,617 | 863 | ||||||||||||||||||||||
Adjustable-rate(3) | 62,987 | 495 | 147 | 871 | 64,500 | 871 | ||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 62,356 | 2,898 | 1,157 | 10,169 | 76,580 | 10,162 | ||||||||||||||||||||||
Total single-family | 1,575,686 | 24,332 | 8,250 | 41,539 | 1,649,807 | 41,516 | ||||||||||||||||||||||
Total multifamily | 50,827 | — | 21 | 26 | 50,874 | 627 | ||||||||||||||||||||||
Total single-family and multifamily | $ | 1,626,513 | $ | 24,332 | $ | 8,271 | $ | 41,565 | $ | 1,700,681 | $ | 42,143 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Current | One | Two | Three Months or | Total | Non-accrual | |||||||||||||||||||||||
Month | Months | More Past Due, | ||||||||||||||||||||||||||
Past Due | Past Due | or in Foreclosure | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | $ | 1,125,996 | $ | 21,509 | $ | 8,051 | $ | 40,977 | $ | 1,196,533 | $ | 40,833 | ||||||||||||||||
15-year amortizing fixed-rate(2) | 270,730 | 1,320 | 338 | 1,184 | 273,572 | 1,177 | ||||||||||||||||||||||
Adjustable-rate(3) | 63,736 | 614 | 212 | 1,388 | 65,950 | 1,383 | ||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 82,438 | 3,439 | 1,582 | 16,270 | 103,729 | 16,237 | ||||||||||||||||||||||
Total single-family | 1,542,900 | 26,882 | 10,183 | 59,819 | 1,639,784 | 59,630 | ||||||||||||||||||||||
Total multifamily | 63,000 | — | 2 | 30 | 63,032 | 1,457 | ||||||||||||||||||||||
Total single-family and multifamily | $ | 1,605,900 | $ | 26,882 | $ | 10,185 | $ | 59,849 | $ | 1,702,816 | $ | 61,087 | ||||||||||||||||
-1 | Based on recorded investment in the loan. Mortgage loans that have been modified are not counted as past due as long as the borrower is current under the modified terms. The payment status of a loan may be affected by temporary timing differences, or lags, in the reporting of this information to us by our servicers. | |||||||||||||||||||||||||||
-2 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-3 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
We have the option under our PC agreements to remove mortgage loans that underlie our PCs under certain circumstances to resolve an existing or impending delinquency or default. Our practice generally has been to remove loans from PC trusts when the loans have been delinquent for 120 days or more. As of December 31, 2013, there were $1.1 billion in UPB of loans underlying our PCs that were 120 days or more delinquent, and that met our criteria for removing the loan from the PC trust. Generally, we remove these delinquent loans from the PC trust, and thereby extinguish the related PC debt at the next scheduled PC payment date, unless the loans proceed to foreclosure transfer, complete a foreclosure alternative or are paid in full by the borrower before such date. | ||||||||||||||||||||||||||||
When we remove mortgage loans from PC trusts, we reclassify the loans from mortgage loans held-for-investment by consolidated trusts to unsecuritized mortgage loans held-for-investment and record an extinguishment of the corresponding portion of the debt securities of the consolidated trusts. We removed $18.2 billion and $29.6 billion in UPB of loans from PC trusts (or purchased delinquent loans associated with other guarantee commitments) during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||
The table below summarizes the delinquency rates of mortgage loans within our single-family credit guarantee and multifamily mortgage portfolios. | ||||||||||||||||||||||||||||
Table 5.3 — Delinquency Rates | ||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Single-family:(1) | ||||||||||||||||||||||||||||
Non-credit-enhanced portfolio (excluding Other Guarantee Transactions): | ||||||||||||||||||||||||||||
Serious delinquency rate | 1.99 | % | 2.62 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 183,822 | 244,533 | ||||||||||||||||||||||||||
Credit-enhanced portfolio (excluding Other Guarantee Transactions): | ||||||||||||||||||||||||||||
Serious delinquency rate | 4.34 | % | 6.83 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 56,794 | 90,747 | ||||||||||||||||||||||||||
Other Guarantee Transactions:(2) | ||||||||||||||||||||||||||||
Serious delinquency rate | 10.91 | % | 10.6 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 14,709 | 17,580 | ||||||||||||||||||||||||||
Total single-family: | ||||||||||||||||||||||||||||
Serious delinquency rate | 2.39 | % | 3.25 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 255,325 | 352,860 | ||||||||||||||||||||||||||
Multifamily:(3) | ||||||||||||||||||||||||||||
Non-credit-enhanced portfolio: | ||||||||||||||||||||||||||||
Delinquency rate | 0.07 | % | 0.1 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 46 | $ | 76 | ||||||||||||||||||||||||
Credit-enhanced portfolio: | ||||||||||||||||||||||||||||
Delinquency rate | 0.11 | % | 0.36 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 75 | $ | 172 | ||||||||||||||||||||||||
Total Multifamily: | ||||||||||||||||||||||||||||
Delinquency rate | 0.09 | % | 0.19 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 121 | $ | 248 | ||||||||||||||||||||||||
-1 | Single-family mortgage loans that have been modified are not counted as seriously delinquent if the borrower is less than three monthly payments past due under the modified terms. Serious delinquencies on single-family mortgage loans underlying certain REMICs and Other Structured Securities, Other Guarantee Transactions, and other guarantee commitments may be reported on a different schedule due to variances in industry practice. | |||||||||||||||||||||||||||
-2 | Single-family Other Guarantee Transactions generally have underlying mortgage loans with higher risk characteristics, but some single-family Other Guarantee Transactions may provide inherent credit protections from losses due to underlying subordination, excess interest, overcollateralization and other features. | |||||||||||||||||||||||||||
-3 | Multifamily delinquency performance is based on UPB of mortgage loans that are two monthly payments or more past due or those in the process of foreclosure and includes multifamily Other Guarantee Transactions (e.g., K Certificates). Excludes mortgage loans that have been modified as long as the borrower is less than two monthly payments past due under the modified contractual terms. | |||||||||||||||||||||||||||
We continue to implement a number of initiatives to refinance and modify loans, including the MHA Program and the servicing alignment initiative. Our implementation of the MHA Program, for our loans, includes the following: (a) an initiative to allow mortgages currently owned or guaranteed by us to be refinanced without obtaining additional credit enhancement beyond that already in place for the loan (i.e., our relief refinance mortgage, which is our implementation of HARP); (b) an initiative to modify mortgages for both homeowners who are in default and those who are at risk of imminent default (i.e., HAMP); and (c) an initiative designed to permit borrowers who meet basic HAMP eligibility requirements to sell their homes in short sales or to complete a deed in lieu of foreclosure transaction. As part of accomplishing certain of these initiatives, we pay various incentives to servicers and borrowers. We bear the full costs associated with these loan workout and foreclosure alternatives on mortgages that we own or guarantee, including the cost of any monthly payment reductions, and do not receive any reimbursement from Treasury. | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||
Single-Family TDRs | ||||||||||||||||||||||||||||
We require our single-family servicers to contact borrowers who are in default and to evaluate loan workout options in accordance with our requirements. We establish guidelines for our servicers to follow and provide them default management programs designed to help them manage non-performing loans more effectively and to assist borrowers in maintaining home ownership where possible, or facilitate foreclosure alternatives when continued homeownership is not an option. We require our single-family servicers to first evaluate problem loans for a repayment or forbearance plan before considering modification. If a borrower is not eligible for a modification, our seller/servicers pursue other workout options before considering foreclosure. We receive information related to loan workouts, such as completed modifications and loans in a modification trial period, and other alternatives to foreclosure from our servicers at the loan level on at least a monthly basis. For loans in a modification trial period, we do not receive the terms of the expected completed modification until the modification is completed. For these loans, we only receive notification that they are in a modification trial period. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Allowance for Loan Losses and Reserve for Guarantee Losses” for more detail. | ||||||||||||||||||||||||||||
Repayment plans are agreements with the borrower that give the borrower a defined period of time to reinstate the mortgage by paying regular payments plus an additional agreed upon amount in repayment of the past due amount. These agreements are considered TDRs if they result in a delay in payment that is considered to be more than insignificant. | ||||||||||||||||||||||||||||
Forbearance agreements are agreements between the servicer and the borrower where reduced payments or no payments are required during a defined period. These agreements are considered TDRs if they result in a delay in payment that is considered to be more than insignificant. | ||||||||||||||||||||||||||||
For HAMP loan modifications, our servicers typically obtain information on income, assets, and other borrower obligations to consider eligibility for modification and determine modified loan terms. Under HAMP, the goal of a single-family loan modification is to reduce the borrower’s monthly mortgage payments to a specified percentage of the borrower’s gross monthly income, which may be achieved through a combination of methods, including: (a) interest rate reduction; (b) term extension; and (c) principal forbearance. Principal forbearance is when a portion of the principal is made non-interest-bearing and non-amortizing, but this does not represent principal forgiveness. Although HAMP contemplates that some servicers will also make use of principal forgiveness to achieve reduced payments for borrowers, we have only used forbearance of principal and have not used principal forgiveness in modifying our loans. | ||||||||||||||||||||||||||||
We implemented a non-HAMP standard loan modification initiative in late 2011, which replaced our previous non-HAMP modification initiative beginning January 1, 2012. Our HAMP and non-HAMP modification initiatives are available for borrowers experiencing what is generally expected to be a longer-term financial hardship. In July 2013, we implemented a streamlined (non-HAMP) modification initiative, which provides an additional modification opportunity to certain borrowers, and it is scheduled to end in December 2015. The modification that borrowers receive under this initiative will have the same mortgage terms as our non-HAMP standard modification. Borrowers are not required to apply for assistance or provide income or hardship documentation for this type of modification. | ||||||||||||||||||||||||||||
Both HAMP and our non-HAMP standard modification require a three month trial period during which the borrower will make monthly payments based on the estimated amount of the modification payments. After the final trial-period payment is received by our servicer, the borrower and servicer enter into the modification. We consider restructurings under these initiatives as TDRs at the inception of the trial period if the expected modification will result in a change in our expectation to collect all amounts due at the original contract rate. Since we do not receive the terms of the modification until completion of the trial period, we estimate the impairment for loans in a modification trial period that are considered TDRs using the average impairment recorded for completed modifications and the estimated likelihood of completion of the trial period. If the borrower fails to successfully complete the trial period, the impairment for the loan is then based on the original terms of the loan. If the borrower successfully completes the trial period, the impairment for the loan is then based on the modified terms of the loan. These subsequent adjustments to impairment are based on the success or failure of the borrower to complete the trial period and are recorded through the provision for credit losses. | ||||||||||||||||||||||||||||
During 2013 approximately 56% of completed single-family loan modifications that were classified as TDRs involved interest rate reductions and term extensions and approximately 36% involved principal forbearance in addition to interest rate reductions and term extensions. During 2013, the average term extension was 161 months and the average interest rate reduction was 2.2% on completed single-family loan modifications classified as TDRs. | ||||||||||||||||||||||||||||
Multifamily TDRs | ||||||||||||||||||||||||||||
The assessment as to whether a multifamily loan restructuring is considered a TDR contemplates the unique facts and circumstances of each loan. This assessment considers qualitative factors such as whether the borrower’s modified interest rate is consistent with that of a borrower having a similar credit profile at the time of modification. In certain cases, for maturing loans we may provide short-term loan extensions of up to one year with no changes to the effective borrowing rate. In other cases, we may make more significant modifications of terms for borrowers experiencing financial difficulty, such as reducing the interest rate or extending the maturity for longer than one year. In cases where we do modify the contractual terms of the loan, the changes in terms may be similar to those of single-family loans, such as an extension of the term, reduction of contractual rate, principal forbearance, or some combination of these features. | ||||||||||||||||||||||||||||
TDR Activity and Performance | ||||||||||||||||||||||||||||
The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs during the year ended December 31, 2013 and 2012, based on the original category of the loan before the loan was classified as a TDR. Loans classified as a TDR in one period may be subject to further action (such as a modification or remodification) in a subsequent period. In such cases, the subsequent action would not be reflected in the table below since the loan would already have been classified as a TDR. | ||||||||||||||||||||||||||||
Table 5.4 — TDR Activity, by Segment | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||
# of Loans | Post-TDR | # of Loans | Post-TDR | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Single-family(1) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | 101,538 | $ | 16,014 | 177,930 | $ | 27,076 | ||||||||||||||||||||||
15-year amortizing fixed-rate | 11,671 | 825 | 17,549 | 1,176 | ||||||||||||||||||||||||
Adjustable-rate(3) | 3,604 | 574 | 6,496 | 977 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 17,770 | 3,941 | 35,012 | 7,834 | ||||||||||||||||||||||||
Total Single-family | 134,583 | 21,354 | 236,987 | 37,063 | ||||||||||||||||||||||||
Multifamily | 8 | 98 | 20 | 202 | ||||||||||||||||||||||||
Total | 134,591 | $ | 21,452 | 237,007 | $ | 37,265 | ||||||||||||||||||||||
-1 | The pre-TDR recorded investment for single-family loans initially classified as TDR during the years ended December 31, 2013 and 2012, was $21.2 billion and $37.0 billion, respectively. During the third quarter of 2012, we changed the treatment of single-family loans discharged in Chapter 7 bankruptcy to classify these loans as TDRs, regardless of the borrowers’ payment status and when the loans were not already classified as TDRs for other reasons. As a result, the 2012 period reflects the initial classification of such loans as TDRs. | |||||||||||||||||||||||||||
-2 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-3 | Includes balloon/reset mortgage loans. | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
The measurement of impairment for single-family TDRs is based on the excess of our recorded investment in the loan over the present value of the loan’s expected future cash flows. For multifamily loans, we use an estimate of the fair value of the loan’s collateral rather than the present value of expected future cash flows to determine the amount of impairment. Generally, restructurings of single-family loans that are TDRs have a higher allowance for loan losses than restructurings that are not considered TDRs because TDRs involve a concession being granted to the borrower. Our process for determining the appropriate allowance for loan losses for both single-family and multifamily loans considers the impact that our loss mitigation activities, such as loan restructurings, have on probabilities of default. For single-family loans evaluated individually and collectively for impairment that have been modified, the probability of default is affected by the incidence of redefault that we have experienced on similar loans that have completed a modification. For multifamily loans, the incidence of redefault on loans that have been modified does not directly affect the allowance for loan losses as our multifamily loans are generally evaluated individually for impairment based on the fair value of the underlying collateral. The process for determining the appropriate allowance for loan losses for multifamily loans evaluated collectively for impairment considers the incidence of redefault on loans that have completed a modification. | ||||||||||||||||||||||||||||
The table below presents the volume of payment defaults (i.e., loans that became two months delinquent or completed a loss event) of our TDR modifications based on the original category of the loan before modification and excludes loans subject to other loss mitigation activity that were classified as TDRs during the period. Substantially all of our completed single-family loan modifications classified as a TDR during 2013 resulted in a modified loan with a fixed interest rate. | ||||||||||||||||||||||||||||
Table 5.5 — Payment Defaults of Completed TDR Modifications, by Segment(1) | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||
# of Loans | Post-TDR | # of Loans | Post-TDR | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||
Investment(2) | Investment(2) | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Single-family | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 14,964 | $ | 2,766 | 15,718 | $ | 2,905 | ||||||||||||||||||||||
15-year amortizing fixed-rate | 471 | 52 | 716 | 73 | ||||||||||||||||||||||||
Adjustable-rate | 237 | 50 | 331 | 71 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 2,256 | 587 | 3,042 | 805 | ||||||||||||||||||||||||
Total single-family | 17,928 | $ | 3,455 | 19,807 | $ | 3,854 | ||||||||||||||||||||||
Multifamily | — | $ | — | 6 | $ | 82 | ||||||||||||||||||||||
-1 | Represents TDR loans that experienced a payment default during the period and had completed a modification during the year preceding the payment default. A payment default occurs when a borrower either: (a) became two or more months delinquent; or (b) completed a loss event, such as a short sale or foreclosure transfer. We only include payment defaults for a single loan once during each quarterly period within a year; however, a single loan will be reflected more than once if the borrower experienced another payment default in a subsequent quarterly period. | |||||||||||||||||||||||||||
-2 | Represents the recorded investment at the end of the period in which the loan was modified and does not represent the recorded investment as of December 31. | |||||||||||||||||||||||||||
-3 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
In addition to modifications, loans may be initially classified as TDRs as a result of other loss mitigation activities (i.e., repayment plans, forbearance agreements, or trial period modifications). During the years ended December 31, 2013 and 2012, 8,473 and 5,220 of such loans, respectively, with a post-TDR recorded investment of $1.4 billion and $0.9 billion, respectively, experienced a payment default. | ||||||||||||||||||||||||||||
Loans may also be initially classified as TDRs because the borrowers’ debts were discharged in Chapter 7 bankruptcy (and the loan was not already classified as a TDR for other reasons). During the years ended December 31, 2013 and 2012, 17,225 and 9,390, respectively, of such loans (with a post-TDR recorded investment of $2.8 billion and $1.5 billion, respectively) experienced a payment default. |
Real_Estate_Owned
Real Estate Owned | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Repossessed Assets [Abstract] | ' | |||||||||||
REAL ESTATE OWNED | ' | |||||||||||
NOTE 6: REAL ESTATE OWNED | ||||||||||||
We obtain REO properties: (a) when we are the highest bidder at foreclosure sales of properties that collateralize non-performing single-family and multifamily mortgage loans owned by us; or (b) when a delinquent borrower chooses to transfer the mortgaged property to us in lieu of going through the foreclosure process (i.e., deed in lieu of foreclosure). Upon acquiring single-family properties, we establish a marketing plan to sell the property as soon as practicable by determining an estimated market value and listing it for sale with a real estate broker. Upon acquiring multifamily properties, we may operate them using third-party property management firms for a period to stabilize value and then sell the properties through commercial real estate brokers. However, certain jurisdictions require a period of time after foreclosure during which the borrower may reclaim the property. During the period when the borrower may reclaim the property, or we are completing the eviction process, we are not able to market the property and this extends our holding period for these properties. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” for a discussion of our significant accounting policies for REO. | ||||||||||||
The table below provides a summary of the change in the carrying value of our combined single-family and multifamily REO balances. For the periods presented in the table below, the weighted average holding period for our disposed properties was less than one year. | ||||||||||||
Table 6.1 — REO | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Beginning balance — REO | $ | 4,407 | $ | 5,827 | $ | 7,368 | ||||||
Additions | 6,498 | 7,029 | 8,970 | |||||||||
Dispositions | (6,303 | ) | (8,449 | ) | (10,511 | ) | ||||||
Ending balance — REO | 4,602 | 4,407 | 5,827 | |||||||||
Beginning balance, valuation allowance | (29 | ) | (147 | ) | (300 | ) | ||||||
Change in valuation allowance | (22 | ) | 118 | 153 | ||||||||
Ending balance, valuation allowance | (51 | ) | (29 | ) | (147 | ) | ||||||
Ending balance — REO, net | $ | 4,551 | $ | 4,378 | $ | 5,680 | ||||||
The REO balance, net at December 31, 2013 and 2012 associated with single-family properties was $4.5 billion and $4.3 billion, respectively, and the balance associated with multifamily properties was $10 million and $64 million, respectively. The Southeast region represented approximately 34% and 29% of our single-family REO additions during 2013 and 2012, respectively, based on the number of properties, and the North Central region represented approximately 29% and 33% of our single-family REO additions during these periods. Our single-family REO inventory consisted of 47,307 properties and 49,071 properties at December 31, 2013 and 2012, respectively. In recent years, the foreclosure process has been significantly slowed in many geographical areas, particularly in states that require a judicial foreclosure process, which extends the time it takes for loans to be foreclosed upon and the underlying property to transition to REO. See “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS” for additional information about regional concentrations in our portfolio. | ||||||||||||
Our REO operations expenses include: (a) REO property expenses; (b) net gains or losses incurred on disposition of REO properties; (c) adjustments to the holding period allowance associated with REO properties to record them at the lower of their carrying amount or fair value less the estimated costs to sell; and (d) recoveries from insurance and other credit enhancements. An allowance for estimated declines in the REO fair value during the period properties are held reduces the carrying value of REO property. Excluding holding period valuation adjustments and recoveries, we recognized gains (losses) of $761 million, $693 million, and $(165) million on REO dispositions during 2013, 2012, and 2011 respectively. We increased (decreased) our valuation allowance for properties in our REO inventory by $58 million, $(7) million, and $304 million in 2013, 2012, and 2011, respectively. | ||||||||||||
REO property acquisitions that result from extinguishment of our mortgage loans held on our consolidated balance sheets are treated as non-cash transfers. The amount of non-cash acquisitions of REO properties during the years ended December 31, 2013, 2012, and 2011 was $6.1 billion, $6.8 billion, and $8.7 billion, respectively. |
Investments_in_Securities
Investments in Securities | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN SECURITIES | ' | |||||||||||||||||||||||||||||||||||||||||||||||
NOTE 7: INVESTMENTS IN SECURITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below summarizes amortized cost, estimated fair values, and corresponding gross unrealized gains and gross unrealized losses for available-for-sale securities by major security type. At December 31, 2013 and 2012, all available-for-sale securities are mortgage-related securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.1 — Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 39,001 | $ | 1,847 | $ | (189 | ) | $ | 40,659 | |||||||||||||||||||||||||||||||||||||||
Fannie Mae | 10,140 | 660 | (3 | ) | 10,797 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 149 | 18 | — | 167 | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | 29,151 | 1,524 | (337 | ) | 30,338 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | 29,897 | 382 | (2,780 | ) | 27,499 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | 6,617 | 338 | (381 | ) | 6,574 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,322 | 526 | (142 | ) | 8,706 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,533 | 23 | (61 | ) | 3,495 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 629 | 61 | (6 | ) | 684 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 127,439 | $ | 5,379 | $ | (3,899 | ) | $ | 128,919 | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 53,965 | $ | 4,602 | $ | (52 | ) | $ | 58,515 | |||||||||||||||||||||||||||||||||||||||
Fannie Mae | 14,183 | 1,099 | (2 | ) | 15,280 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 183 | 26 | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | 47,606 | 3,882 | (181 | ) | 51,307 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | 35,503 | 83 | (9,129 | ) | 26,457 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | 7,454 | 48 | (1,785 | ) | 5,717 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 11,861 | 244 | (1,201 | ) | 10,904 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,647 | 154 | (3 | ) | 5,798 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 716 | 24 | (31 | ) | 709 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 177,118 | $ | 10,162 | $ | (12,384 | ) | $ | 174,896 | |||||||||||||||||||||||||||||||||||||||
Available-For-Sale Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below shows the fair value of available-for-sale securities in a gross unrealized loss position, and whether they have been in that position less than 12 months, or 12 months or greater, including the non-credit-related portion of other-than-temporary impairments, which have been recognized in AOCI. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.2 — Available-For-Sale Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | ||||||||||||||||||||||||||||||||||||
Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | ||||||||||||||||||||||||||||||||||||||||
Impairment(1) | Impairment(1) | Impairment(1) | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 7,957 | $ | — | $ | (144 | ) | $ | (144 | ) | $ | 649 | $ | — | $ | (45 | ) | $ | (45 | ) | $ | 8,606 | $ | — | $ | (189 | ) | $ | (189 | ) | ||||||||||||||||||
Fannie Mae | 248 | — | (2 | ) | (2 | ) | 19 | — | (1 | ) | (1 | ) | 267 | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||||||||
CMBS | 1,147 | (7 | ) | (78 | ) | (85 | ) | 1,992 | (16 | ) | (236 | ) | (252 | ) | 3,139 | (23 | ) | (314 | ) | (337 | ) | |||||||||||||||||||||||||||
Subprime | 472 | (19 | ) | — | (19 | ) | 19,103 | (2,448 | ) | (313 | ) | (2,761 | ) | 19,575 | (2,467 | ) | (313 | ) | (2,780 | ) | ||||||||||||||||||||||||||||
Option ARM | 77 | (2 | ) | — | (2 | ) | 2,608 | (374 | ) | (5 | ) | (379 | ) | 2,685 | (376 | ) | (5 | ) | (381 | ) | ||||||||||||||||||||||||||||
Alt-A and other | 262 | (5 | ) | — | (5 | ) | 1,854 | (113 | ) | (24 | ) | (137 | ) | 2,116 | (118 | ) | (24 | ) | (142 | ) | ||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,885 | (7 | ) | (49 | ) | (56 | ) | 24 | — | (5 | ) | (5 | ) | 1,909 | (7 | ) | (54 | ) | (61 | ) | ||||||||||||||||||||||||||||
Manufactured housing | — | — | — | — | 65 | (4 | ) | (2 | ) | (6 | ) | 65 | (4 | ) | (2 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Total available-for-sale securities in a gross unrealized loss position | $ | 12,048 | $ | (40 | ) | $ | (273 | ) | $ | (313 | ) | $ | 26,314 | $ | (2,955 | ) | $ | (631 | ) | $ | (3,586 | ) | $ | 38,362 | $ | (2,995 | ) | $ | (904 | ) | $ | (3,899 | ) | |||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | ||||||||||||||||||||||||||||||||||||
Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | ||||||||||||||||||||||||||||||||||||||||
Impairment(1) | Impairment(1) | Impairment(1) | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,811 | $ | — | $ | (25 | ) | $ | (25 | ) | $ | 1,872 | $ | — | $ | (27 | ) | $ | (27 | ) | $ | 3,683 | $ | — | $ | (52 | ) | $ | (52 | ) | ||||||||||||||||||
Fannie Mae | 170 | — | — | — | 55 | — | (2 | ) | (2 | ) | 225 | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||
CMBS | 340 | — | (3 | ) | (3 | ) | 3,425 | (22 | ) | (156 | ) | (178 | ) | 3,765 | (22 | ) | (159 | ) | (181 | ) | ||||||||||||||||||||||||||||
Subprime | 298 | (23 | ) | — | (23 | ) | 25,676 | (7,830 | ) | (1,276 | ) | (9,106 | ) | 25,974 | (7,853 | ) | (1,276 | ) | (9,129 | ) | ||||||||||||||||||||||||||||
Option ARM | 82 | (3 | ) | — | (3 | ) | 5,182 | (1,759 | ) | (23 | ) | (1,782 | ) | 5,264 | (1,762 | ) | (23 | ) | (1,785 | ) | ||||||||||||||||||||||||||||
Alt-A and other | 50 | (4 | ) | — | (4 | ) | 7,938 | (961 | ) | (236 | ) | (1,197 | ) | 7,988 | (965 | ) | (236 | ) | (1,201 | ) | ||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 37 | — | (1 | ) | (1 | ) | 45 | — | (2 | ) | (2 | ) | 82 | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||||||||
Manufactured housing | 46 | — | — | — | 222 | (26 | ) | (5 | ) | (31 | ) | 268 | (26 | ) | (5 | ) | (31 | ) | ||||||||||||||||||||||||||||||
Total available-for-sale securities in a gross unrealized loss position | $ | 2,834 | $ | (30 | ) | $ | (29 | ) | $ | (59 | ) | $ | 44,415 | $ | (10,598 | ) | $ | (1,727 | ) | $ | (12,325 | ) | $ | 47,249 | $ | (10,628 | ) | $ | (1,756 | ) | $ | (12,384 | ) | |||||||||||||||
-1 | Represents the gross unrealized losses for securities for which we have previously recognized other-than-temporary impairments in earnings. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Represents the gross unrealized losses for securities for which we have not previously recognized other-than-temporary impairments in earnings. | |||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, total gross unrealized losses on available-for-sale securities were $3.9 billion. The gross unrealized losses relate to 994 individual lots representing 956 separate securities, including securities with non-credit-related other-than-temporary impairments recognized in AOCI. We purchase multiple lots of individual securities at different times and at different costs. We determine gross unrealized gains and gross unrealized losses by specifically evaluating investment positions at the lot level; therefore, some of the lots we hold for a single security may be in an unrealized gain position while other lots for that security may be in an unrealized loss position, depending upon the amortized cost of the specific lot. | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment Recognition on Investments in Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
We recognize impairment losses on available-for-sale securities within our consolidated statements of comprehensive income as net impairment of available-for-sale securities recognized in earnings when we conclude that a decrease in the fair value of a security is other-than-temporary. For information regarding our evaluation of our available-for-sale securities for impairment, see "NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Investments in Securities." | ||||||||||||||||||||||||||||||||||||||||||||||||
The evaluation of whether unrealized losses on available-for-sale securities are other-than-temporary requires significant management judgments and assumptions and consideration of numerous factors. We perform an evaluation on a security-by-security basis considering all available information. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment. Important factors include, but are not limited to: | ||||||||||||||||||||||||||||||||||||||||||||||||
• | whether we intend to sell the security or it is more likely than not that we will be required to sell the security before sufficient time elapses to recover all unrealized losses; | |||||||||||||||||||||||||||||||||||||||||||||||
• | the use of a third-party model for single-family non-agency mortgage-related securities that considers the credit performance of the underlying collateral, including current LTV ratio, delinquency status, servicer performance, loan modification terms and status, and borrower credit information. The model also incorporates assumptions about the economic environment, including future home prices, unemployment, and interest rates to project underlying collateral prepayment speeds, default rates, loss severities, and delinquency rates. Our estimation approach for CMBS includes the use of a separate third-party model that utilizes underlying collateral performance, current and expected credit enhancements, and incorporates assumptions about the underlying collateral cash flows; and | |||||||||||||||||||||||||||||||||||||||||||||||
• | the incorporation of security-level subordination information and the priority of cash flow payments by the models to project and estimate cash flows expected to be collected for each security. | |||||||||||||||||||||||||||||||||||||||||||||||
See “Table 7.2 — Available-For-Sale Securities in a Gross Unrealized Loss Position” for the length of time our available-for-sale securities have been in an unrealized loss position. Also see “Table 7.3 — Significant Modeled Attributes for Certain Available-For-Sale Non-Agency Mortgage-Related Securities” for the modeled default rates and severities that were used to determine whether our senior interests in certain non-agency mortgage-related securities would experience a cash shortfall. | ||||||||||||||||||||||||||||||||||||||||||||||||
As noted in “Table 7.4 — Net Impairment of Available-For-Sale Securities Recognized in Earnings,” our net impairment on available-for-sale securities during 2013 includes certain securities that we have the intent to sell prior to the recovery of the unrealized loss. In cases where we have the intent to sell or it is more likely than not that we will be required to sell the security before recovery of its amortized cost, the security’s entire decline in fair value would be deemed to be other-than-temporary and is recorded within our consolidated statements of comprehensive income as net impairment of available-for-sale securities recognized in earnings. For the remaining available-for-sale securities in an unrealized loss position at December 31, 2013, we have asserted that we have no intent to sell and that we believe it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis. | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac and Fannie Mae Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
We record the purchase of mortgage-related securities issued by Fannie Mae as investments in securities in accordance with the accounting guidance for investments in debt and equity securities. In contrast, our purchase of mortgage-related securities that we issued (e.g., PCs, REMICs and Other Structured Securities, and Other Guarantee Transactions) is recorded as either investments in securities or extinguishment of debt securities of consolidated trusts depending on the nature of the mortgage-related security that we purchase. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
We hold these investments in securities that are in an unrealized loss position at least to recovery and typically to maturity. As the principal and interest on these securities are guaranteed and we do not intend to sell these securities and it is not more likely than not that we will be required to sell such securities before a recovery of the securities' amortized cost basis, we consider these unrealized losses to be temporary. | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency Mortgage-Related Securities Backed by Subprime, Option ARM, Alt-A and Other Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
We believe the unrealized losses on the non-agency mortgage-related securities we hold are a result of poor underlying collateral performance, limited liquidity, and risk premiums. Our review of the securities backed by subprime, option ARM, and Alt-A and other loans includes the third-party loan level default modeling and analyses of the individual securities based on underlying collateral performance, including the collectability of amounts from bond insurers. In evaluating collectability from bond insurers, we consider factors that affect both the bond insurers’ financial performance and ability to pay their obligations. We consider loan level information including estimated current LTV ratios, FICO scores, and other loan level characteristics. For additional information regarding bond insurers, see “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS — Bond Insurers.” | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents the modeled attributes, including default rates, prepayment rates, and severities, without regard to subordination, that are used to determine whether our interests in certain available-for-sale non-agency mortgage-related securities will experience a cash shortfall. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.3 — Significant Modeled Attributes for Certain Available-For-Sale Non-Agency Mortgage-Related Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Alt-A(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime First | Option ARM | Fixed Rate | Variable Rate | Hybrid Rate | ||||||||||||||||||||||||||||||||||||||||||||
Lien(2) | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance Date | ||||||||||||||||||||||||||||||||||||||||||||||||
2004 and prior: | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 896 | $ | 49 | $ | 498 | $ | 336 | $ | 342 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 37 | % | 23 | % | 13 | % | 31 | % | 19 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 58 | % | 46 | % | 47 | % | 43 | % | 37 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 7 | % | 8 | % | 11 | % | 7 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 38 | % | 4 | % | 15 | % | 15 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||
2005:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 3,687 | $ | 2,221 | $ | 714 | $ | 591 | $ | 3,068 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 46 | % | 34 | % | 20 | % | 40 | % | 24 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 60 | % | 51 | % | 46 | % | 48 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 4 | % | 7 | % | 9 | % | 7 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 46 | % | 3 | % | — | % | 21 | % | 2 | % | ||||||||||||||||||||||||||||||||||||||
2006:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 16,547 | $ | 4,870 | $ | 397 | $ | 846 | $ | 907 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 54 | % | 44 | % | 28 | % | 47 | % | 26 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 53 | % | 47 | % | 53 | % | 40 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 8 | % | 6 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 5 | % | (5 | )% | — | % | (9 | )% | (3 | )% | ||||||||||||||||||||||||||||||||||||||
2007:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 18,287 | $ | 3,286 | $ | 138 | $ | 1,085 | $ | 225 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 53 | % | 44 | % | 47 | % | 46 | % | 43 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 52 | % | 52 | % | 52 | % | 48 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 6 | % | 6 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 4 | % | 4 | % | (1 | )% | (20 | )% | — | % | ||||||||||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 39,417 | $ | 10,426 | $ | 1,747 | $ | 2,858 | $ | 4,542 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 52 | % | 42 | % | 22 | % | 43 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 52 | % | 47 | % | 51 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 9 | % | 6 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 9 | % | — | % | 4 | % | (4 | )% | 1 | % | ||||||||||||||||||||||||||||||||||||||
-1 | Excludes non-agency mortgage-related securities backed by other loans, which primarily consist of securities backed by home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Excludes non-agency mortgage-related securities backed exclusively by subprime second liens. Certain securities identified as subprime first lien may be backed in part by subprime second-lien loans, as the underlying loans of these securities were permitted to include a small percentage of subprime second-lien loans. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | The expected cumulative default rate is expressed as a percentage of the current collateral UPB. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | The expected average loss given default is calculated as the ratio of cumulative loss over cumulative default for each security. | |||||||||||||||||||||||||||||||||||||||||||||||
-5 | The security’s voluntary prepayment rate represents the average of the monthly voluntary prepayment rate weighted by the security’s outstanding UPB. | |||||||||||||||||||||||||||||||||||||||||||||||
-6 | Positive values reflect the amount of subordination and other financial support (excluding credit enhancement provided by bond insurance) that will incur losses in the securitization structure before any losses are allocated to securities that we own. Percentage generally calculated based on: (a) the total UPB of securities subordinate to the securities we own; divided by (b) the total UPB of all of the securities issued by the trust (excluding notional balances). Negative values are shown when unallocated collateral losses will be allocated to the securities that we own in excess of current remaining credit enhancement, if any. The unallocated collateral losses have been considered in our assessment of other-than-temporary impairment. | |||||||||||||||||||||||||||||||||||||||||||||||
In evaluating the non-agency mortgage-related securities backed by subprime, option ARM, and Alt-A and other loans for other-than-temporary impairment, we noted that the percentage of securities that were AAA-rated and the percentage that were investment grade declined significantly since acquisition. While these ratings have declined, the ratings themselves are not determinative that a loss is more or less likely. While we may consider credit ratings in our analysis, we believe that our detailed security-by-security analyses provide a more comprehensive view of the ultimate collectability of contractual amounts due to us. | ||||||||||||||||||||||||||||||||||||||||||||||||
Our analysis is subject to change as new information regarding delinquencies, severities, loss timing, prepayments, and other factors becomes available. While it is possible that, under certain conditions, collateral losses on our remaining available-for-sale securities for which we have not recorded an impairment charge could exceed our credit enhancement levels and a principal or interest loss could occur, we do not believe that those conditions were likely as of December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage-Backed Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
CMBS are exposed to stresses in the commercial real estate market. We use an external model to identify securities that may have an increased risk of failing to make their contractual payments. We then perform an analysis of the underlying collateral on a security-by-security basis to determine whether we will receive all of the contractual payments due to us. While it is possible that, under certain conditions, collateral losses on our CMBS for which we have not recorded an impairment charge could exceed our credit enhancement levels and a principal or interest loss could occur, we do not believe that those conditions were likely as of December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | ||||||||||||||||||||||||||||||||||||||||||||||||
These investments consist of housing revenue bonds. We believe the unrealized losses on obligations of states and political subdivisions are primarily a result of movements in interest rates and liquidity and risk premiums. We believe that any credit risk related to these securities is minimal because of the issuer guarantees provided on these securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Bond Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
We rely on bond insurance to provide credit protection on some of our non-agency mortgage-related securities. Circumstances in which: (a) it is expected that a principal and interest shortfall will occur; and (b) there is substantial uncertainty surrounding a bond insurer’s ability to pay all future claims can give rise to recognition of other-than-temporary impairment recognized in earnings. See “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS — Bond Insurers” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other-Than-Temporary Impairments on Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below summarizes our net impairment of available-for-sale securities recognized in earnings by security type. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.4 — Net Impairment of Available-For-Sale Securities Recognized in Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Impairment of Available-For-Sale Securities Recognized in Earnings For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | $ | (14 | ) | $ | (138 | ) | $ | (353 | ) | |||||||||||||||||||||||||||||||||||||||
Subprime | (1,258 | ) | (1,274 | ) | (1,315 | ) | ||||||||||||||||||||||||||||||||||||||||||
Option ARM | (58 | ) | (556 | ) | (424 | ) | ||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | (179 | ) | (196 | ) | (198 | ) | ||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | (1 | ) | (4 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total net impairment of available-for-sale securities recognized in earnings | $ | (1,510 | ) | $ | (2,168 | ) | $ | (2,301 | ) | |||||||||||||||||||||||||||||||||||||||
-1 | Includes $568 million, $0 million, and $181 million of other-than-temporary impairments recognized in earnings for the years ended December 31, 2013, 2012, and 2011, respectively, as we had the intent to sell the related securities before recovery of their amortized cost basis. | |||||||||||||||||||||||||||||||||||||||||||||||
The table below presents the changes in the unrealized credit-related other-than-temporary impairment component of the amortized cost related to available-for-sale securities: (a) that we have written down for other-than-temporary impairment; and (b) for which the credit component of the loss has been recognized in earnings. The credit-related other-than-temporary impairment component of the amortized cost represents the difference between the present value of expected future cash flows at the time of impairment, including the estimated proceeds from bond insurance, and the amortized cost basis of the security prior to considering credit losses. The beginning balances represent the other-than-temporary impairment credit loss components related to available-for-sale securities for which other-than-temporary impairment occurred prior to January 1, 2013 and January 1, 2012, respectively, but will not be realized until the securities are sold, written off, or mature. Net impairment of available-for-sale securities recognized in earnings is presented as additions in two components based upon whether the current period is: (a) the first time the debt security was credit-impaired; or (b) not the first time the debt security was credit-impaired. The credit loss component is reduced if we sell, intend to sell or believe we will be required to sell previously credit-impaired available-for-sale securities. Additionally, the credit loss component is reduced by the amortization resulting from significant increases in cash flows expected to be collected that are recognized over the remaining life of the security. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.5 — Other-Than-Temporary Impairments Related to Credit Losses on Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit-related other-than-temporary impairments on available-for-sale securities recognized in earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings | $ | 16,745 | $ | 15,988 | ||||||||||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to credit losses for which an other-than-temporary impairment was not previously recognized | 46 | 141 | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to credit losses for which an other-than-temporary impairment was previously recognized | 896 | 2,027 | ||||||||||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to securities which were sold, written off, or matured | (1,193 | ) | (1,289 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts for which we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis | (1,536 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts related to amortization resulting from significant increases in cash flows expected to be collected and/or due to the passage of time that are recognized over the remaining life of the security | (495 | ) | (107 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings(1) | $ | 14,463 | $ | 16,745 | ||||||||||||||||||||||||||||||||||||||||||||
-1 | Excludes other-than-temporary impairments on securities that we intend to sell or it is more likely than not that we will be required to sell before recovery of the unrealized losses. | |||||||||||||||||||||||||||||||||||||||||||||||
Realized Gains and Losses on Sales of Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below illustrates the gross realized gains and gross realized losses from the sale of available-for-sale securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.6 — Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross realized gains | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 547 | $ | 34 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 17 | 14 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
CMBS | 1,301 | 82 | 37 | |||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 1 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 70 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 13 | 19 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Subprime | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities gross realized gains | 1,950 | 152 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
Gross realized gains | 1,950 | 152 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
Gross realized losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage related securities:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | (25 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | — | (81 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Option ARM | (4 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | (19 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Subprime | (3 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities gross realized losses | (51 | ) | — | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||
Gross realized losses | (51 | ) | — | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 1,899 | $ | 152 | $ | 58 | ||||||||||||||||||||||||||||||||||||||||||
-1 | The individual sales do not change our conclusion, at period end, that we do not intend to sell our remaining mortgage-related available-for-sale securities that are in an unrealized loss position and it is not more likely than not that we will be required to sell these securities before a sufficient time to recover all unrealized losses. | |||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below summarizes the remaining contractual maturities of available-for-sale securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.7 — Maturities of Available-For-Sale Securities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
After One Year Through | After Five Years | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | One Year or Less | Five Years | Through Ten Years | After Ten Years | |||||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 39,001 | $ | 40,659 | $ | 4 | $ | 4 | $ | 570 | $ | 599 | $ | 613 | $ | 654 | $ | 37,814 | $ | 39,402 | ||||||||||||||||||||||||||||
Fannie Mae | 10,140 | 10,797 | 3 | 3 | 275 | 291 | 163 | 177 | 9,699 | 10,326 | ||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 149 | 167 | — | — | 7 | 8 | 12 | 14 | 130 | 145 | ||||||||||||||||||||||||||||||||||||||
CMBS | 29,151 | 30,338 | — | — | 677 | 735 | — | — | 28,474 | 29,603 | ||||||||||||||||||||||||||||||||||||||
Subprime | 29,897 | 27,499 | — | — | — | — | — | — | 29,897 | 27,499 | ||||||||||||||||||||||||||||||||||||||
Option ARM | 6,617 | 6,574 | — | — | — | — | — | — | 6,617 | 6,574 | ||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,322 | 8,706 | 1 | 2 | 71 | 70 | 12 | 12 | 8,238 | 8,622 | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,533 | 3,495 | 5 | 5 | 39 | 42 | 106 | 107 | 3,383 | 3,341 | ||||||||||||||||||||||||||||||||||||||
Manufactured housing | 629 | 684 | — | — | — | — | — | — | 629 | 684 | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 127,439 | $ | 128,919 | $ | 13 | $ | 14 | $ | 1,639 | $ | 1,745 | $ | 906 | $ | 964 | $ | 124,881 | $ | 126,196 | ||||||||||||||||||||||||||||
Weighted Average Yield(2) | 2.99 | % | 5.62 | % | 5.19 | % | 5.16 | % | 2.95 | % | ||||||||||||||||||||||||||||||||||||||
-1 | Maturity information provided is based on contractual maturities, which may not represent the expected life as obligations underlying these securities may be prepaid at any time without penalty. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The weighted average yield is calculated based on a yield for each individual lot held at December 31, 2013 excluding any fully taxable-equivalent adjustments related to tax exempt sources of interest income. The numerator for the individual lot yield consists of the sum of: (a) the year-end interest coupon rate multiplied by the year-end UPB; and (b) the annualized amortization income or expense calculated for December 2013 (excluding the accretion of non-credit-related other-than-temporary impairments and any adjustments recorded for changes in the effective rate). The denominator for the individual lot yield consists of the year-end amortized cost of the lot excluding effects of other-than-temporary impairments on the UPB of impaired lots. | |||||||||||||||||||||||||||||||||||||||||||||||
Trading Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below summarizes the estimated fair values by major security type for trading securities. Our trading securities mainly consist of Treasury securities, agency fixed-rate and variable-rate pass-through mortgage-related securities, and agency REMICs, including inverse floating rate, interest-only and principal-only securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 7.8 — Trading Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 9,349 | $ | 10,354 | ||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 7,180 | 10,338 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 98 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 141 | 156 | ||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | 16,768 | 20,979 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | 292 | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 2,254 | 1,160 | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 4,382 | 19,061 | ||||||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 6,636 | 20,513 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of trading securities | $ | 23,404 | $ | 41,492 | ||||||||||||||||||||||||||||||||||||||||||||
With the exception of principal-only securities, our agency securities, classified as trading, were valued at a net premium (i.e., net fair value was higher than UPB) as of December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, we recorded net unrealized losses on trading securities held at those dates of $(1.6) billion, $(1.7) billion and $(1.0) billion, respectively. |
Debt_Securities_and_Subordinat
Debt Securities and Subordinated Borrowings | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||
DEBT SECURITIES AND SUBORDINATED BORROWINGS | ' | |||||||||||||||||||||||||
NOTE 8: DEBT SECURITIES AND SUBORDINATED BORROWINGS | ||||||||||||||||||||||||||
Debt securities that we issue are classified on our consolidated balance sheets as either debt securities of consolidated trusts held by third parties or other debt. We issue other debt to fund our operations. | ||||||||||||||||||||||||||
Under the Purchase Agreement, without the prior written consent of Treasury, we may not incur indebtedness that would result in the par value of our aggregate indebtedness exceeding 120% of the amount of mortgage assets we are allowed to own on December 31 of the immediately preceding calendar year. Because of this debt limit, we may be restricted in the amount of debt we are allowed to issue to fund our operations. Under the Purchase Agreement, the amount of our “indebtedness” is determined without giving effect to the January 1, 2010 change in the accounting guidance related to transfers of financial assets and consolidation of VIEs. Therefore, “indebtedness” does not include debt securities of consolidated trusts held by third parties. We also cannot become liable for any subordinated indebtedness without the prior consent of Treasury. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS” for information regarding restrictions on the amount of mortgage-related securities that we may own. | ||||||||||||||||||||||||||
Our debt cap under the Purchase Agreement was $780.0 billion in 2013 and declined to $663.0 billion on January 1, 2014. As of December 31, 2013, we estimate that our aggregate indebtedness was $511.3 billion, or $268.7 billion below the applicable debt cap. Our aggregate indebtedness is calculated as the par value of other debt. | ||||||||||||||||||||||||||
In the tables below, the categories of short-term debt (due within one year) and long-term debt (due after one year) are based on the original contractual maturity of the debt instruments classified as other debt. | ||||||||||||||||||||||||||
During 2013, 2012, and 2011, we recognized fair value gains (losses) of $(11) million, $16 million, and $91 million, respectively, on our foreign-currency denominated debt, of which $(31) million, $(7) million, and $40 million, respectively, were gains (losses) related to foreign-currency translation. | ||||||||||||||||||||||||||
Other Short-Term Debt | ||||||||||||||||||||||||||
As indicated in "Table 8.1 — Other Short-Term Debt", a majority of other short-term debt consisted of Reference Bills® securities and discount notes, paying only principal at maturity. Reference Bills® securities, discount notes, and medium-term notes are unsecured general corporate obligations. Certain medium-term notes that have original maturities of one year or less are classified as other short-term debt for purposes of this presentation. | ||||||||||||||||||||||||||
The table below summarizes the balances and effective interest rates for other short-term debt. | ||||||||||||||||||||||||||
Table 8.1 — Other Short-Term Debt | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Par Value | Balance, Net(1) | Weighted Average | Par Value | Balance, Net(1) | Weighted Average | |||||||||||||||||||||
Effective Rate(2) | Effective Rate(2) | |||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Other short-term debt: | ||||||||||||||||||||||||||
Reference Bills® securities and discount notes | $ | 137,767 | $ | 137,712 | 0.13 | % | $ | 117,930 | $ | 117,889 | 0.15 | % | ||||||||||||||
Medium-term notes | 4,000 | 4,000 | 0.16 | — | — | — | ||||||||||||||||||||
Total other short-term debt | $ | 141,767 | $ | 141,712 | 0.13 | $ | 117,930 | $ | 117,889 | 0.15 | ||||||||||||||||
-1 | Represents par value, net of associated discounts or premiums. | |||||||||||||||||||||||||
-2 | Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or premiums, and issuance costs. | |||||||||||||||||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | ||||||||||||||||||||||||||
Securities sold under agreements to repurchase are effectively collateralized borrowing transactions where we sell securities with an agreement to repurchase such securities. These agreements require the underlying securities to be delivered to the dealers who are the counterparties to the transactions. Federal funds purchased are unsecuritized borrowings from commercial banks that are members of the Federal Reserve System. We had no balances in federal funds purchased and securities sold under agreements to repurchase at either December 31, 2013 or 2012. | ||||||||||||||||||||||||||
Other Long-Term Debt | ||||||||||||||||||||||||||
The table below summarizes our other long-term debt. | ||||||||||||||||||||||||||
Table 8.2 — Other Long-Term Debt | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Contractual Maturity(1) | Par Value | Balance, Net(2) | Weighted Average | Par Value | Balance, Net(2) | Weighted Average | ||||||||||||||||||||
Effective Rate(3) | Effective Rate(3) | |||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Other long-term debt: | ||||||||||||||||||||||||||
Other senior debt:(4) | ||||||||||||||||||||||||||
Fixed-rate: | ||||||||||||||||||||||||||
Medium-term notes — callable(5) | 2014 - 2037 | $ | 101,190 | $ | 101,236 | 1.51 | % | $ | 94,655 | $ | 94,842 | 1.62 | % | |||||||||||||
Medium-term notes — non-callable | 2014 - 2028 | 37,878 | 38,107 | 0.99 | 42,623 | 42,877 | 1.08 | |||||||||||||||||||
U.S. dollar Reference Notes securities — non-callable | 2014 - 2032 | 190,371 | 190,406 | 2.71 | 225,857 | 225,885 | 2.82 | |||||||||||||||||||
€Reference Notes securities — non-callable | 2014 | 528 | 529 | 4.38 | 1,167 | 1,187 | 4.58 | |||||||||||||||||||
Variable-rate: | ||||||||||||||||||||||||||
Medium-term notes — callable | 2014 - 2028 | 6,001 | 6,001 | 1.66 | 6,953 | 6,953 | 2.57 | |||||||||||||||||||
Medium-term notes — non-callable | 2014 - 2026 | 18,533 | 18,533 | 0.22 | 46,194 | 46,197 | 0.27 | |||||||||||||||||||
STACR | 2023 | 1,107 | 1,155 | 4.29 | — | — | — | |||||||||||||||||||
Zero-coupon: | ||||||||||||||||||||||||||
Medium-term notes — callable | 2037 - 2040 | 1,200 | 311 | 5.82 | 1,300 | 324 | 5.71 | |||||||||||||||||||
Medium-term notes — non-callable | 2014 - 2039 | 12,217 | 8,334 | 3.08 | 15,240 | 10,923 | 4.03 | |||||||||||||||||||
Hedging-related basis adjustments | N/A | 41 | N/A | 57 | ||||||||||||||||||||||
Total other senior debt | 369,025 | 364,653 | 433,989 | 429,245 | ||||||||||||||||||||||
Other subordinated debt: | ||||||||||||||||||||||||||
Fixed-rate | 2016 - 2018 | 221 | 218 | 6.6 | 221 | 218 | 6.59 | |||||||||||||||||||
Zero-coupon | 2019 | 332 | 184 | 10.51 | 332 | 166 | 10.51 | |||||||||||||||||||
Total other subordinated debt | 553 | 402 | 553 | 384 | ||||||||||||||||||||||
Total other long-term debt | $ | 369,578 | $ | 365,055 | 2.08 | % | $ | 434,542 | $ | 429,629 | 2.15 | % | ||||||||||||||
-1 | Represents contractual maturities at December 31, 2013. | |||||||||||||||||||||||||
-2 | Represents par value of long-term debt securities and subordinated borrowings, net of associated discounts or premiums and hedge-related basis adjustments, with $2.6 billion and $2.2 billion, respectively, of other long-term debt that represents the fair value of debt securities with the fair value option elected at December 31, 2013 and 2012. | |||||||||||||||||||||||||
-3 | Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or premiums, issuance costs, and hedging-related basis adjustments. | |||||||||||||||||||||||||
-4 | For debt denominated in a currency other than the U.S. dollar, the outstanding balance is based on the exchange rate at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-5 | Includes callable FreddieNotes® securities of $0.8 billion and $1.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
A portion of our other long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date. | ||||||||||||||||||||||||||
Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties represents our liability to third parties that hold beneficial interests in our consolidated securitization trusts (i.e., single-family PC trusts and certain single-family and multifamily Other Guarantee Transactions). | ||||||||||||||||||||||||||
The table below summarizes the debt securities of consolidated trusts held by third parties based on underlying mortgage product type. | ||||||||||||||||||||||||||
Table 8.3 — Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Contractual | UPB | Balance, | Weighted | Contractual | UPB | Balance, | Weighted | |||||||||||||||||||
Maturity(1) | Net(2) | Average | Maturity(1) | Net(2) | Average | |||||||||||||||||||||
Coupon(1) | Coupon(1) | |||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||
Single-family:(3) | ||||||||||||||||||||||||||
30-year or more, fixed-rate | 2014 - 2052 | $ | 969,270 | $ | 993,683 | 4.14 | % | 2013 - 2048 | $ | 960,176 | $ | 982,718 | 4.53 | % | ||||||||||||
20-year fixed-rate | 2014 - 2034 | 75,910 | 78,252 | 3.81 | 2013 - 2033 | 73,902 | 76,079 | 4.09 | ||||||||||||||||||
15-year fixed-rate | 2014 - 2029 | 270,513 | 277,018 | 3.23 | 2013 - 2028 | 257,083 | 263,244 | 3.59 | ||||||||||||||||||
Adjustable-rate | 2014 - 2047 | 60,683 | 61,830 | 2.64 | 2013 - 2047 | 62,424 | 63,649 | 2.88 | ||||||||||||||||||
Interest-only(4) | 2026 - 2041 | 21,352 | 21,390 | 3.7 | 2026 - 2041 | 31,588 | 31,642 | 4.37 | ||||||||||||||||||
FHA/VA | 2014 - 2041 | 1,284 | 1,303 | 5.67 | 2013 - 2041 | 1,638 | 1,663 | 5.67 | ||||||||||||||||||
Total single-family | 1,399,012 | 1,433,476 | 1,386,811 | 1,418,995 | ||||||||||||||||||||||
Multifamily(5) | 2018 - 2019 | 444 | 508 | 4.96 | 2018 - 2019 | 448 | 529 | 4.96 | ||||||||||||||||||
Total debt securities of consolidated trusts held by third parties(6) | $ | 1,399,456 | $ | 1,433,984 | $ | 1,387,259 | $ | 1,419,524 | ||||||||||||||||||
-1 | Based on the contractual maturity and interest rate of debt securities of our consolidated trusts held by third parties. | |||||||||||||||||||||||||
-2 | Represents par value, net of associated discounts, premiums, and other basis adjustments. | |||||||||||||||||||||||||
-3 | Debt securities of consolidated trusts held by third parties are prepayable as the loans that collateralize the debt may prepay without penalty at any time. | |||||||||||||||||||||||||
-4 | Includes interest-only securities and interest-only mortgage loans that allow the borrowers to pay only interest for a fixed period of time before the loans begin to amortize. | |||||||||||||||||||||||||
-5 | Balance, Net includes interest-only securities recorded at fair value. | |||||||||||||||||||||||||
-6 | The effective rate for debt securities of consolidated trusts held by third parties was 3.39% and 3.49% as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The table below summarizes the contractual maturities of other long-term debt securities and debt securities of consolidated trusts held by third parties at December 31, 2013. | ||||||||||||||||||||||||||
Table 8.4 — Contractual Maturity of Other Long-Term Debt and Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||
Annual Maturities | Par Value(1)(2) | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Other long-term debt: | ||||||||||||||||||||||||||
2014 | $ | 78,115 | ||||||||||||||||||||||||
2015 | 70,303 | |||||||||||||||||||||||||
2016 | 63,564 | |||||||||||||||||||||||||
2017 | 51,908 | |||||||||||||||||||||||||
2018 | 33,418 | |||||||||||||||||||||||||
Thereafter | 72,270 | |||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(3) | 1,399,456 | |||||||||||||||||||||||||
Total | 1,769,034 | |||||||||||||||||||||||||
Net discounts, premiums, hedge-related and other basis adjustments(4) | 30,005 | |||||||||||||||||||||||||
Total debt securities of consolidated trusts held by third parties and other long-term debt | $ | 1,799,039 | ||||||||||||||||||||||||
-1 | Represents par value of long-term debt securities and subordinated borrowings and UPB of debt securities of our consolidated trusts held by third parties. | |||||||||||||||||||||||||
-2 | For other debt denominated in a currency other than the U.S. dollar, the par value is based on the exchange rate at December 31, 2013. | |||||||||||||||||||||||||
-3 | Contractual maturities of debt securities of consolidated trusts held by third parties may not represent expected maturity as they are prepayable at any time without penalty. | |||||||||||||||||||||||||
-4 | Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk and interest-rate risk related to other foreign-currency denominated debt. | |||||||||||||||||||||||||
Line of Credit | ||||||||||||||||||||||||||
At both December 31, 2013 and 2012, we had one secured, uncommitted intraday line of credit with a third party totaling $10 billion. We use this line of credit regularly to provide us with additional liquidity to fund our intraday payment activities through the Fedwire system in connection with the Federal Reserve’s payments system risk policy, which restricts or eliminates daylight overdrafts by the GSEs. No amounts were drawn on this line of credit at December 31, 2013 and 2012. We expect to continue to use the current facility to satisfy our intraday financing needs; however, as the line is uncommitted, we may not be able to draw on it if and when needed. | ||||||||||||||||||||||||||
Subordinated Debt Interest and Principal Payments | ||||||||||||||||||||||||||
The terms of certain of our subordinated debt securities provide for us to defer payments of interest in the event we fail to maintain specified capital levels. However, in a September 23, 2008 statement concerning the conservatorship, the Director of FHFA stated that we would continue to make interest and principal payments on our subordinated debt, even if we fail to maintain required capital levels. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
DERIVATIVES | ' | |||||||||||||||||||||||
NOTE 9: DERIVATIVES | ||||||||||||||||||||||||
Use of Derivatives | ||||||||||||||||||||||||
We use derivatives primarily to manage the interest rate and prepayment risk associated with our investments in mortgage-related assets, net of related liabilities. We analyze the interest-rate sensitivity of financial assets and liabilities on a daily basis across a variety of interest-rate scenarios based on market prices and models. We use derivatives to hedge interest-rate sensitivity mismatches between our assets and liabilities. For example, if rates increase and the duration of our assets extends more than the duration of our liabilities, we would rebalance our interest-rate exposure by entering into pay-fixed interest-rate swaps or selling Treasury-derivatives. If rates decrease and the duration of our assets shortens more than the duration of our liabilities, we would rebalance our interest-rate exposure by entering into receive-fixed interest-rate swaps or purchasing Treasury-derivatives. When we use derivatives to mitigate our exposures, we consider a number of factors, including cost, exposure to counterparty risk, and our overall risk management strategy. | ||||||||||||||||||||||||
We classify derivatives into three categories: (a) exchange-traded derivatives; (b) cleared derivatives; and (c) OTC derivatives. Cleared derivatives refer to those interest-rate swaps that the U.S. Commodity Futures Trading Commission has determined are subject to the central clearing requirement of the Dodd-Frank Act. OTC derivatives refer to those derivatives that are neither exchange-traded derivatives nor cleared derivatives. | ||||||||||||||||||||||||
Types of Derivatives | ||||||||||||||||||||||||
We principally use the following types of derivatives: | ||||||||||||||||||||||||
• | LIBOR- and Euribor-based interest-rate swaps; | |||||||||||||||||||||||
• | LIBOR- and Treasury-based options (including swaptions); and | |||||||||||||||||||||||
• | LIBOR- and Treasury-based exchange-traded futures. | |||||||||||||||||||||||
In addition to swaps, futures, and purchased options, our derivative positions include written options and swaptions, commitments, swap guarantees, and credit derivatives. | ||||||||||||||||||||||||
Written Options and Swaptions | ||||||||||||||||||||||||
Written call and put swaptions are sold to counterparties allowing them the option to enter into receive- and pay-fixed interest rate swaps, respectively. Written call and put options on mortgage-related securities give the counterparty the right to execute a contract under specified terms, which generally occurs when we are in a liability position. We may, from time to time, write other derivative contracts such as interest-rate futures. | ||||||||||||||||||||||||
Commitments | ||||||||||||||||||||||||
We routinely enter into commitments that include our: (a) commitments to purchase and sell investments in securities; (b) commitments to purchase mortgage loans; and (c) commitments to purchase and extinguish or issue debt securities of our consolidated trusts. Most of these commitments are considered derivatives and therefore are subject to the accounting guidance for derivatives and hedging. | ||||||||||||||||||||||||
Swap Guarantee Derivatives | ||||||||||||||||||||||||
In connection with some of the guarantee arrangements pertaining to multifamily housing revenue bonds and multifamily pass-through certificates, we may also guarantee the sponsor’s or the borrower’s obligations as a counterparty on any related interest-rate swaps used to mitigate interest-rate risk, which are accounted for as swap guarantee derivatives. | ||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||
We entered into credit-risk sharing agreements for certain credit enhanced multifamily housing revenue bonds held by third parties in exchange for a monthly fee. In addition, we have purchased mortgage loans containing debt cancellation contracts, which provide for mortgage debt or payment cancellation for borrowers who experience unanticipated losses of income dependent on a covered event. The rights and obligations under these agreements have been assigned to the servicers. However, in the event the servicer does not perform as required by contract we would be obligated under our guarantee to make the required contractual payments. | ||||||||||||||||||||||||
For a discussion of our significant accounting policies related to derivatives, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Derivatives.” | ||||||||||||||||||||||||
Derivative Assets and Liabilities at Fair Value | ||||||||||||||||||||||||
The table below presents the location and fair value of derivatives reported on our consolidated balance sheets. | ||||||||||||||||||||||||
Table 9.1 — Derivative Assets and Liabilities at Fair Value | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Notional or | Derivatives at Fair Value | Notional or | Derivatives at Fair Value | |||||||||||||||||||||
Contractual | Contractual | |||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Total derivative portfolio | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments under the accounting guidance for derivatives and hedging | ||||||||||||||||||||||||
Interest-rate swaps: | ||||||||||||||||||||||||
Receive-fixed | $ | 281,727 | $ | 4,475 | $ | (2,438 | ) | $ | 275,099 | $ | 13,782 | $ | (97 | ) | ||||||||||
Pay-fixed | 242,597 | 5,540 | (10,879 | ) | 270,092 | 177 | (30,147 | ) | ||||||||||||||||
Basis (floating to floating) | 300 | 4 | — | 2,300 | 6 | — | ||||||||||||||||||
Total interest-rate swaps | 524,624 | 10,019 | (13,317 | ) | 547,491 | 13,965 | (30,244 | ) | ||||||||||||||||
Option-based: | ||||||||||||||||||||||||
Call swaptions | ||||||||||||||||||||||||
Purchased | 59,290 | 2,373 | — | 37,650 | 7,360 | — | ||||||||||||||||||
Written | 5,945 | — | (201 | ) | 6,195 | — | (749 | ) | ||||||||||||||||
Put Swaptions | ||||||||||||||||||||||||
Purchased | 33,410 | 698 | — | 43,200 | 288 | — | ||||||||||||||||||
Other option-based derivatives(1) | 23,365 | 1,041 | (3 | ) | 31,540 | 2,449 | (1 | ) | ||||||||||||||||
Total option-based | 122,010 | 4,112 | (204 | ) | 118,585 | 10,097 | (750 | ) | ||||||||||||||||
Futures | 50,270 | — | — | 41,123 | 37 | (2 | ) | |||||||||||||||||
Foreign-currency swaps | 528 | 39 | — | 1,167 | 73 | (6 | ) | |||||||||||||||||
Commitments | 18,731 | 61 | (69 | ) | 25,530 | 20 | (47 | ) | ||||||||||||||||
Credit derivatives | 5,386 | — | (6 | ) | 8,307 | 1 | (5 | ) | ||||||||||||||||
Swap guarantee derivatives | 3,477 | — | (31 | ) | 3,628 | — | (35 | ) | ||||||||||||||||
Total derivatives not designated as hedging instruments | 725,026 | 14,231 | (13,627 | ) | 745,831 | 24,193 | (31,089 | ) | ||||||||||||||||
Derivative interest receivable (payable) | 1,243 | (1,835 | ) | 1,409 | (2,239 | ) | ||||||||||||||||||
Netting adjustments(2) | (14,411 | ) | 15,282 | (24,945 | ) | 33,150 | ||||||||||||||||||
Total derivative portfolio, net | $ | 725,026 | $ | 1,063 | $ | (180 | ) | $ | 745,831 | $ | 657 | $ | (178 | ) | ||||||||||
-1 | Primarily includes purchased interest-rate caps and floors. | |||||||||||||||||||||||
-2 | Represents counterparty netting and cash collateral netting. Net cash collateral posted was $871 million and $8.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
The carrying value of our derivatives on our consolidated balance sheets is equal to their fair value, including net derivative interest receivable or payable and net trade/settle receivable or payable, and is net of cash collateral held or posted, where allowable. Derivatives in a net asset position are reported as derivative assets, net. Similarly, derivatives in a net liability position are reported as derivative liabilities, net. | ||||||||||||||||||||||||
Non-cash collateral held is not recognized on our consolidated balance sheets as we do not obtain effective control over the collateral, and non-cash collateral posted is not de-recognized from our consolidated balance sheets as we do not relinquish effective control over the collateral. Therefore, non-cash collateral held or posted is not presented as an offset against derivative assets or derivative liabilities on our consolidated balance sheets. | ||||||||||||||||||||||||
See “NOTE 10: COLLATERAL AND OFFSETTING OF ASSETS AND LIABILITIES” for information related to our derivative counterparties and collateral held and posted. | ||||||||||||||||||||||||
Gains and Losses on Derivatives | ||||||||||||||||||||||||
The table below presents the gains and losses on derivatives reported in our consolidated statements of comprehensive income. | ||||||||||||||||||||||||
Table 9.2 — Gains and Losses on Derivatives | ||||||||||||||||||||||||
Derivatives not designated as hedging | Derivative Gains (Losses)(1) | |||||||||||||||||||||||
instruments under the accounting | Year Ended December 31, | |||||||||||||||||||||||
guidance for derivatives and hedging | 2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Interest-rate swaps: | ||||||||||||||||||||||||
Receive-fixed | ||||||||||||||||||||||||
Foreign-currency denominated | $ | (21 | ) | $ | (33 | ) | $ | (49 | ) | |||||||||||||||
U.S. dollar denominated | (10,400 | ) | 2,686 | 12,686 | ||||||||||||||||||||
Total receive-fixed swaps | (10,421 | ) | 2,653 | 12,637 | ||||||||||||||||||||
Pay-fixed | 19,021 | (2,865 | ) | (22,999 | ) | |||||||||||||||||||
Basis (floating to floating) | (2 | ) | 8 | (5 | ) | |||||||||||||||||||
Total interest-rate swaps | 8,598 | (204 | ) | (10,367 | ) | |||||||||||||||||||
Option based: | ||||||||||||||||||||||||
Call swaptions | ||||||||||||||||||||||||
Purchased | (2,547 | ) | 1,365 | 10,234 | ||||||||||||||||||||
Written | 546 | (38 | ) | (2,337 | ) | |||||||||||||||||||
Put swaptions | ||||||||||||||||||||||||
Purchased | (8 | ) | (273 | ) | (1,614 | ) | ||||||||||||||||||
Written | — | 6 | 14 | |||||||||||||||||||||
Other option-based derivatives(2) | (413 | ) | 190 | 879 | ||||||||||||||||||||
Total option-based | (2,422 | ) | 1,250 | 7,176 | ||||||||||||||||||||
Futures | 21 | 12 | (150 | ) | ||||||||||||||||||||
Foreign-currency swaps | 30 | (8 | ) | (41 | ) | |||||||||||||||||||
Commitments | (131 | ) | 298 | (1,340 | ) | |||||||||||||||||||
Credit derivatives | (3 | ) | — | — | ||||||||||||||||||||
Swap guarantee derivatives | 9 | 7 | 3 | |||||||||||||||||||||
Other(3) | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||||||
Subtotal | 6,099 | 1,354 | (4,720 | ) | ||||||||||||||||||||
Accrual of periodic settlements:(4) | ||||||||||||||||||||||||
Receive-fixed interest-rate swaps | 3,764 | 3,511 | 4,173 | |||||||||||||||||||||
Pay-fixed interest-rate swaps | (7,233 | ) | (7,318 | ) | (9,241 | ) | ||||||||||||||||||
Foreign-currency swaps | — | 4 | 22 | |||||||||||||||||||||
Other | 2 | 1 | 14 | |||||||||||||||||||||
Total accrual of periodic settlements | (3,467 | ) | (3,802 | ) | (5,032 | ) | ||||||||||||||||||
Total | $ | 2,632 | $ | (2,448 | ) | $ | (9,752 | ) | ||||||||||||||||
-1 | Gains (losses) are reported as derivative gains (losses) on our consolidated statements of comprehensive income. | |||||||||||||||||||||||
-2 | Primarily includes purchased interest-rate caps and floors. | |||||||||||||||||||||||
-3 | Includes fees and commissions paid on cleared and exchange-traded derivatives and, in 2011, a $3 million benefit related to the bankruptcy of Lehman Brothers Holdings Inc. | |||||||||||||||||||||||
-4 | For derivatives not in qualifying hedge accounting relationships, the accrual of periodic cash settlements is recorded in derivative gains (losses) on our consolidated statements of comprehensive income. | |||||||||||||||||||||||
Hedge Designation of Derivatives | ||||||||||||||||||||||||
At December 31, 2013 and 2012, we did not have any derivatives in hedge accounting relationships; however, there are deferred net losses recorded in AOCI related to closed cash flow hedges. Net deferred gains and losses on closed cash flow hedges (i.e., where the derivative is either terminated or redesignated) are included in AOCI until the related forecasted transaction affects earnings or is determined to be probable of not occurring. Amounts reported in AOCI linked to interest payments on long-term debt are recorded in other debt interest expense and amounts not linked to interest payments on long-term debt are recorded in expense related to derivatives. In the years ended December 31, 2013 and 2012, we reclassified from AOCI into earnings (effective portion) a loss of $460 million and $612 million, respectively, related to closed cash flow hedges. See “NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) — Accumulated Other Comprehensive Income — Future Reclassifications from AOCI to Net Income Related to Closed Cash Flow Hedges” for information about future reclassifications of deferred net losses related to closed cash flow hedges to net income. |
Collateral_and_Offsetting_of_A
Collateral and Offsetting of Assets and Liabilities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Offsetting [Abstract] | ' | |||||||||||||||||||
COLLATERAL AND OFFSETTING OF ASSETS AND LIABILITIES | ' | |||||||||||||||||||
NOTE 10: COLLATERAL AND OFFSETTING OF ASSETS AND LIABILITIES | ||||||||||||||||||||
Derivative Portfolio | ||||||||||||||||||||
Derivative Counterparties | ||||||||||||||||||||
Our use of cleared derivatives, exchange-traded derivatives, and OTC derivatives exposes us to institutional credit risk. The requirement that we post initial and variation margin in connection with cleared and exchange-traded derivatives, such as cleared interest-rate swaps and futures contracts, exposes us to institutional credit risk in the event that our clearing members or the financial clearinghouses fail to meet their obligations. The use of cleared and exchange-traded derivatives decreases our institutional credit risk exposure to individual counterparties because a central counterparty is substituted for individual counterparties. OTC derivatives expose us to institutional credit risk to individual counterparties because transactions are executed and settled between us and each counterparty, exposing us to potential losses if a counterparty fails to meet its obligations. | ||||||||||||||||||||
Our use of interest rate swaps, option-based derivatives, and foreign-currency swaps is subject to internal credit and legal reviews. On an ongoing basis, we review the credit fundamentals of all of our derivative counterparties, clearinghouses, and clearing members to confirm that they continue to meet our internal risk management standards. | ||||||||||||||||||||
Master Netting and Collateral Agreements | ||||||||||||||||||||
We use master netting and collateral agreements to reduce our credit risk exposure to our derivative counterparties for interest-rate swap, option-based, and foreign-currency swap derivatives. Master netting agreements provide for the netting of amounts receivable and payable from an individual counterparty, which reduces our exposure to a single counterparty in the event of default. On a daily basis, the market value of each counterparty’s derivatives outstanding is calculated to determine the amount of our net credit exposure, which is equal to derivatives in a net gain position by counterparty after giving consideration to collateral posted. | ||||||||||||||||||||
Our collateral agreements require most counterparties to post collateral to us for the amount of our net exposure to them above the counterparty’s collateral posting threshold. Collateral posting thresholds are tied to a counterparty’s credit rating. Bilateral collateral agreements are in place for all of our active OTC derivative counterparties. For OTC derivatives, we are subject to collateral posting thresholds based on S&P or Moody’s credit rating of our long-term senior unsecured debt securities. The amount of initial margin we must post for cleared and exchange-traded derivatives may be based, in part, on S&P or Moody’s credit rating of our long-term senior unsecured debt securities. The lowering or withdrawal of our credit rating by S&P or Moody’s may increase our obligation to post collateral, depending on the amount of the counterparty’s exposure to Freddie Mac with respect to the derivative transactions. Collateral is typically transferred within one business day based on the values of the related derivatives. This time lag in posting collateral can affect our net uncollateralized exposure to derivative counterparties. | ||||||||||||||||||||
Collateral posted by a derivative counterparty is typically in the form of cash, although U.S. Treasury securities and Freddie Mac mortgage-related securities may also be posted. In the event a counterparty defaults on its obligations under the derivatives agreement and the default is not remedied in the manner prescribed in the agreement, we have the right under the agreement to direct the custodian bank to transfer the collateral to us or to sell the collateral and transfer the proceeds to us. At December 31, 2013 and 2012, all amounts of cash collateral related to derivatives were offset against derivative assets, net or derivative liabilities, net, as applicable. | ||||||||||||||||||||
Our net uncollateralized exposure to derivative counterparties for OTC interest-rate swap, option-based, and foreign-currency swap derivatives was $188 million and $69 million at December 31, 2013 and 2012, respectively. In the event that all of our counterparties for these derivatives were to have defaulted simultaneously on December 31, 2013, our maximum loss for accounting purposes after applying netting agreements and collateral on an individual counterparty basis would have been approximately $188 million. Four counterparties each accounted for greater than 10% and collectively accounted for 56% of our net uncollateralized exposure to derivative counterparties, excluding cleared and exchange-traded derivatives, commitments, swap guarantee derivatives, certain written options, and certain credit derivatives at December 31, 2013. These counterparties were Royal Bank of Canada, Credit Suisse International, Deutsche Bank, A.G. and Goldman Sachs Capital Markets, L.P., all of which were rated “A” or above using the lower of S&P’s or Moody’s rating stated in terms of the S&P equivalent as of December 31, 2013. | ||||||||||||||||||||
Beginning with contracts executed or modified on or after June 10, 2013, the types of interest-rate swaps that we use most frequently became subject to the central clearing requirement. Our exposure to cleared and exchange-traded derivatives was $382 million and $66 million as of December 31, 2013 and 2012, respectively. We net our exposure to cleared derivatives by clearinghouse and clearing member. Exchange-traded derivatives are settled on a daily basis through the payment of variation margin. We are required to post margin in connection with our cleared and exchange-traded derivatives. At December 31, 2013, the majority of our exposure for our cleared and exchange-traded derivatives resulted from our posting of initial margin. For information about margin we have posted in connection with cleared and exchange-traded derivatives, see “— Collateral Pledged.” | ||||||||||||||||||||
The total exposure on our forward purchase and sale commitments, which are treated as derivatives, was $61 million and $20 million at December 31, 2013 and 2012, respectively. Many of our transactions involving forward purchase and sale commitments of mortgage-related securities, including our dollar roll transactions, utilize the Mortgage Backed Securities Division of the Fixed Income Clearing Corporation (“MBSD/FICC”) as a clearinghouse. As a clearing member of the clearinghouse, we post margin to the MBSD/FICC and are exposed to the institutional credit risk of the organization. | ||||||||||||||||||||
The table below displays information related to derivatives and securities purchased under agreements to resell on our consolidated balance sheets. | ||||||||||||||||||||
Table 10.1 — Offsetting of Financial Assets and Liabilities | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Gross | Amount Offset | Net Amount | Gross Amount | Net | ||||||||||||||||
Amount | in the Consolidated | Presented in | Not Offset in | Amount | ||||||||||||||||
Recognized(1) | Balance Sheets | the Consolidated | the Consolidated | |||||||||||||||||
Balance Sheets(2) | Balance Sheets | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | 13,886 | $ | (13,266 | ) | $ | 620 | $ | (432 | ) | $ | 188 | ||||||||
Cleared and exchange-traded derivatives | 1,527 | (1,145 | ) | 382 | — | 382 | ||||||||||||||
Other(3) | 61 | — | 61 | — | 61 | |||||||||||||||
Total derivatives | 15,474 | (14,411 | ) | 1,063 | (432 | ) | 631 | |||||||||||||
Securities purchased under agreements to resell | 62,383 | — | 62,383 | (62,383 | ) | — | ||||||||||||||
Total | $ | 77,857 | $ | (14,411 | ) | $ | 63,446 | $ | (62,815 | ) | $ | 631 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | (14,616 | ) | $ | 14,545 | $ | (71 | ) | $ | — | $ | (71 | ) | |||||||
Cleared and exchange-traded derivatives | (737 | ) | 737 | — | — | — | ||||||||||||||
Other(3) | (109 | ) | — | (109 | ) | — | (109 | ) | ||||||||||||
Total | $ | (15,462 | ) | $ | 15,282 | $ | (180 | ) | $ | — | $ | (180 | ) | |||||||
December 31, 2012 | ||||||||||||||||||||
Gross | Amount Offset in | Net Amount | Gross Amount | Net | ||||||||||||||||
Amount | the Consolidated | Presented in the | Not Offset in the | Amount | ||||||||||||||||
Recognized(1) | Balance Sheets | Consolidated | Consolidated | |||||||||||||||||
Balance Sheets(2) | Balance Sheets | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | 25,515 | $ | (24,945 | ) | $ | 570 | $ | (501 | ) | $ | 69 | ||||||||
Cleared and exchange-traded derivatives | 66 | — | 66 | — | 66 | |||||||||||||||
Other(3) | 21 | — | 21 | — | 21 | |||||||||||||||
Total derivatives | 25,602 | (24,945 | ) | 657 | (501 | ) | 156 | |||||||||||||
Securities purchased under agreements to resell | 37,563 | — | 37,563 | (37,563 | ) | — | ||||||||||||||
Total | $ | 63,165 | $ | (24,945 | ) | $ | 38,220 | $ | (38,064 | ) | $ | 156 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | (33,233 | ) | $ | 33,150 | $ | (83 | ) | $ | — | $ | (83 | ) | |||||||
Cleared and exchange-traded derivatives | (8 | ) | — | (8 | ) | — | (8 | ) | ||||||||||||
Other(3) | (87 | ) | — | (87 | ) | — | (87 | ) | ||||||||||||
Total | $ | (33,328 | ) | $ | 33,150 | $ | (178 | ) | $ | — | $ | (178 | ) | |||||||
-1 | For derivatives, includes interest receivable or payable and trade/settle receivable or payable. | |||||||||||||||||||
-2 | For derivatives, includes cash collateral posted or held in excess of exposure. | |||||||||||||||||||
-3 | Includes commitments, swap guarantee derivatives, certain written options and credit derivatives. | |||||||||||||||||||
Collateral Pledged | ||||||||||||||||||||
Collateral Pledged to Freddie Mac | ||||||||||||||||||||
Our counterparties are required to pledge collateral for transactions involving securities purchased under agreements to resell. Also, most derivative instruments are subject to collateral posting thresholds as prescribed by the collateral agreements with our counterparties. Under the derivative collateral agreements, U.S. Treasury securities, Freddie Mac mortgage-related securities, and cash may be pledged. We consider the types of securities being pledged to us as collateral when determining how much we lend in transactions involving securities purchased under agreements to resell. Additionally, we regularly review the market values of these securities compared to amounts loaned and derivative counterparty collateral posting thresholds in an effort to manage our exposure to losses. We had cash and cash equivalents pledged to us related to OTC derivative instruments of $1.9 billion and $1.5 billion at December 31, 2013 and 2012, respectively. At December 31, 2013 and 2012, we had $432 million and $501 million, respectively, of collateral in the form of securities pledged to and held by us related to OTC derivative instruments. Although it is our practice not to repledge assets held as collateral, a portion of the collateral may be repledged based on master netting agreements related to our derivative instruments. In addition, we had $646 million of cash pledged to us related to cleared derivatives at December 31, 2013. Also, at December 31, 2013 and 2012, we had $5.0 billion and $1.5 billion, respectively, of securities pledged to us for transactions involving securities purchased under agreements to resell that we had the right to repledge. From time to time we may obtain pledges of collateral from certain seller/servicers as additional security for certain of their obligations to us, including their obligations to repurchase mortgages sold to us in breach of representations and warranties. This collateral may, at our discretion, take the form of cash, cash equivalents, or agency securities. | ||||||||||||||||||||
In addition, we hold cash and cash equivalents as collateral in connection with certain of our multifamily guarantees and mortgage loans as credit enhancements. The cash and cash equivalents held as collateral related to these transactions at December 31, 2013 and 2012 was $66 million and $158 million, respectively. | ||||||||||||||||||||
We consider federal funds sold to be overnight unsecured trades executed with insured depository institutions that are members of the Federal Reserve System. Federal funds sold trades are uninsured. We did not hold any federal funds sold at December 31, 2013 and 2012. | ||||||||||||||||||||
Collateral Pledged by Freddie Mac | ||||||||||||||||||||
We are required to pledge collateral for margin requirements with third-party custodians in connection with secured financings and derivative transactions with some counterparties. The amount of collateral pledged related to our derivative instruments is determined after giving consideration to our credit rating. As of December 31, 2013, we had one secured, uncommitted intraday line of credit with a third party in connection with the Federal Reserve’s payments system risk policy, which restricts or eliminates daylight overdrafts by the GSEs, in connection with our use of the Fedwire system. In certain circumstances, the line of credit agreement gives the secured party the right to repledge the securities underlying our financing to other third parties, including the Federal Reserve Bank of New York. We pledge collateral to meet our collateral requirements under the line of credit agreement upon demand by the counterparty. | ||||||||||||||||||||
The table below summarizes all securities pledged as collateral by us, including assets that the secured party may repledge and those that may not be repledged. | ||||||||||||||||||||
Table 10.2 — Collateral in the Form of Securities Pledged | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Securities pledged with the ability for the secured party to repledge: | ||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(1) | $ | 10,654 | $ | 10,390 | ||||||||||||||||
Available-for-sale securities | 70 | 132 | ||||||||||||||||||
Trading securities | 365 | — | ||||||||||||||||||
Securities pledged without the ability for the secured party to repledge: | ||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(1) | — | 148 | ||||||||||||||||||
Total securities pledged | $ | 11,089 | $ | 10,670 | ||||||||||||||||
-1 | Represents PCs held by us in our Investments segment mortgage investments portfolio and pledged as collateral which are recorded as a reduction to debt securities of consolidated trusts held by third parties on our consolidated balance sheets. | |||||||||||||||||||
Securities Pledged with the Ability of the Secured Party to Repledge | ||||||||||||||||||||
At December 31, 2013, we pledged securities with the ability of the secured party to repledge of $11.1 billion, of which $10.5 billion was collateral posted in connection with our secured uncommitted intraday line of credit with a third party as discussed above. Of the remainder at December 31, 2013, we pledged $0.6 billion in connection with derivatives and securities transactions. | ||||||||||||||||||||
At December 31, 2012, we pledged securities with the ability of the secured party to repledge of $10.5 billion, of which $10.5 billion was collateral posted in connection with our secured uncommitted intraday line of credit with a third party as discussed above. Of the remainder at December 31, 2012, we pledged $65 million in connection with derivative transactions. | ||||||||||||||||||||
Securities Pledged without the Ability of the Secured Party to Repledge | ||||||||||||||||||||
At December 31, 2013 and 2012, we pledged securities, without the ability of the secured party to repledge, of $0 million and $148 million, respectively, at a clearinghouse in connection with our securities transactions. | ||||||||||||||||||||
Cash Pledged | ||||||||||||||||||||
At December 31, 2013, we pledged $3.4 billion of collateral in the form of cash and cash equivalents, of which $3.2 billion related to our OTC derivative agreements as we had $3.2 billion of such derivatives in a net loss position. At December 31, 2012, we pledged $9.8 billion of collateral in the form of cash and cash equivalents, of which $9.7 billion related to our OTC derivative agreements as we had $9.7 billion of such derivatives in a net loss position. The remaining $275 million and $110 million was posted at clearing members or clearinghouses in connection with derivatives and securities transactions at December 31, 2013 and 2012, respectively. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on December 31, 2013, was $3.2 billion for which we posted collateral of $3.2 billion in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2013, we would have been required to post an additional $42 million of collateral to our counterparties. |
Stockholders_Equity_Deficit
Stockholders' Equity (Deficit) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | ' | |||||||||||||||||||||
NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||||
The table below presents changes in AOCI after the effects of our 35% federal statutory tax rate related to available-for-sale securities, closed cash flow hedges, and our defined benefit plans. | ||||||||||||||||||||||
Table 11.1 — Changes in AOCI by Component, Net of Tax | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
AOCI Related | AOCI Related | AOCI Related | Total | |||||||||||||||||||
to Available- | to Cash Flow | to Defined | ||||||||||||||||||||
For-Sale | Hedge | Benefit Plans | ||||||||||||||||||||
Securities(1) | Relationships(2) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Beginning balance | $ | (1,444 | ) | $ | (1,316 | ) | $ | (178 | ) | $ | (2,938 | ) | ||||||||||
Other comprehensive income before reclassifications(3) | 2,659 | — | 169 | 2,828 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (253 | ) | 316 | 41 | 104 | |||||||||||||||||
Changes in AOCI by component | 2,406 | 316 | 210 | 2,932 | ||||||||||||||||||
Ending balance | $ | 962 | $ | (1,000 | ) | $ | 32 | $ | (6 | ) | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
AOCI Related | AOCI Related | AOCI Related | Total | |||||||||||||||||||
to Available- | to Cash Flow | to Defined | ||||||||||||||||||||
For-Sale | Hedge | Benefit Plans | ||||||||||||||||||||
Securities(1) | Relationships(2) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Beginning balance | $ | (6,213 | ) | $ | (1,730 | ) | $ | (52 | ) | $ | (7,995 | ) | ||||||||||
Other comprehensive income before reclassifications(3) | 3,458 | — | (131 | ) | 3,327 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income(4) | 1,311 | 414 | 5 | 1,730 | ||||||||||||||||||
Changes in AOCI by component | 4,769 | 414 | (126 | ) | 5,057 | |||||||||||||||||
Ending balance | $ | (1,444 | ) | $ | (1,316 | ) | $ | (178 | ) | $ | (2,938 | ) | ||||||||||
-1 | The amounts reclassified from AOCI represent the gain or loss recognized in earnings due to a sale of an available-for-sale security or the recognition of a net impairment recognized in earnings. See “NOTE 7: INVESTMENTS IN SECURITIES” for more information. | |||||||||||||||||||||
-2 | The amounts reclassified from AOCI represent the AOCI amount that was recognized in earnings as the originally hedged forecasted transactions affected earnings, unless it was deemed probable that the forecasted transaction would not occur. If it is probable that the forecasted transaction will not occur, then the deferred gain or loss associated with the hedge related to the forecasted transaction would be reclassified into earnings immediately. See “NOTE 9: DERIVATIVES” for more information about our derivatives. | |||||||||||||||||||||
-3 | For the years ended December 31, 2013 and 2012, net of tax expense of $1.4 billion and $1.9 billion, respectively, for AOCI related to available-for-sale securities. | |||||||||||||||||||||
-4 | For the year ended December 31, 2012, net of tax benefit of $706 million for AOCI related to available-for-sale securities and net of tax benefit of $198 million for AOCI related to cash flow hedge relationships. | |||||||||||||||||||||
Reclassifications from AOCI to Net Income | ||||||||||||||||||||||
The table below presents reclassifications from AOCI to net income, including the affected line item in our consolidated statements of comprehensive income. | ||||||||||||||||||||||
Table 11.2 — Reclassifications from AOCI to Net Income | ||||||||||||||||||||||
Details about Accumulated Other | Three Months Ended December 31, 2013 | Year Ended December 31, 2013 | Affected Line Item in the Consolidated | |||||||||||||||||||
Comprehensive Income Components | Statements of Comprehensive Income | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
AOCI related to available-for-sale securities | ||||||||||||||||||||||
$ | 717 | $ | 1,899 | Other gains (losses) on investment securities recognized in earnings | ||||||||||||||||||
(1,297 | ) | (1,510 | ) | Net impairment of available-for-sale securities recognized in earnings | ||||||||||||||||||
(580 | ) | 389 | Total before tax | |||||||||||||||||||
203 | (136 | ) | Tax (expense) or benefit | |||||||||||||||||||
(377 | ) | 253 | Net of tax | |||||||||||||||||||
AOCI related to cash flow hedge relationships | ||||||||||||||||||||||
(1 | ) | (5 | ) | Interest expense — Other debt | ||||||||||||||||||
(94 | ) | (455 | ) | Expense related to derivatives | ||||||||||||||||||
(95 | ) | (460 | ) | Total before tax | ||||||||||||||||||
29 | 144 | Tax (expense) or benefit | ||||||||||||||||||||
(66 | ) | (316 | ) | Net of tax | ||||||||||||||||||
AOCI related to defined benefit plans | ||||||||||||||||||||||
8 | 2 | Salaries and employee benefits | ||||||||||||||||||||
(43 | ) | (43 | ) | Tax (expense) or benefit | ||||||||||||||||||
(35 | ) | (41 | ) | Net of tax | ||||||||||||||||||
Total reclassifications in the period | $ | (478 | ) | $ | (104 | ) | Net of tax | |||||||||||||||
Future Reclassifications from AOCI to Net Income Related to Closed Cash Flow Hedges | ||||||||||||||||||||||
As shown in “Table 11.1 — Changes in AOCI by Component, Net of Tax,” the total AOCI related to derivatives designated as cash flow hedges was a loss of $1.0 billion and $1.3 billion at December 31, 2013 and 2012, respectively, composed of deferred net losses on closed cash flow hedges. Closed cash flow hedges involve derivatives that have been terminated or are no longer designated as cash flow hedges. Fluctuations in prevailing market interest rates have no effect on the deferred portion of AOCI relating to losses on closed cash flow hedges. | ||||||||||||||||||||||
The previously deferred amount related to closed cash flow hedges remains in our AOCI balance and will be recognized into earnings over the expected time period for which the forecasted transactions affect earnings. Over the next 12 months, we estimate that approximately $214 million, net of taxes, of the $1.0 billion of cash flow hedge losses in AOCI at December 31, 2013 will be reclassified into earnings. The maximum remaining length of time over which we have hedged the exposure related to the variability in future cash flows on forecasted transactions, primarily forecasted debt issuances, is 20 years. However, 74% and 89% of AOCI relating to closed cash flow hedges at December 31, 2013 will be reclassified to earnings over the next five and ten years, respectively. | ||||||||||||||||||||||
Issuance of Senior Preferred Stock | ||||||||||||||||||||||
Pursuant to the Purchase Agreement described in “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS,” we issued one million shares of senior preferred stock to Treasury on September 8, 2008. The senior preferred stock was issued to Treasury in partial consideration of Treasury’s commitment to provide funds to us under the Purchase Agreement. | ||||||||||||||||||||||
Shares of the senior preferred stock have a par value of $1, and have a stated value and initial liquidation preference equal to $1,000 per share. The liquidation preference of the senior preferred stock is subject to adjustment. Dividends that are not paid in cash for any dividend period will accrue and be added to the liquidation preference of the senior preferred stock. In addition, any amounts Treasury pays to us pursuant to its funding commitment under the Purchase Agreement and any quarterly commitment fees that are not paid in cash to Treasury nor waived by Treasury will be added to the liquidation preference of the senior preferred stock. As described below, we may make payments to reduce the liquidation preference of the senior preferred stock in limited circumstances. As discussed in “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS — Purchase Agreement,” the quarterly commitment fee has been suspended. | ||||||||||||||||||||||
Treasury, as the holder of the senior preferred stock, is entitled to receive quarterly cash dividends, when, as and if declared by our Board of Directors. Through December 31, 2012, the senior preferred stock accrued quarterly cumulative dividends at a rate of 10% per year. However, under the August 2012 amendment to the Purchase Agreement, the fixed dividend rate was replaced with a net worth sweep dividend beginning in the first quarter of 2013. Total dividends paid in cash during 2013, 2012, and 2011 at the direction of the Conservator were $47.6 billion, $7.2 billion, and $6.5 billion, respectively. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS” for a discussion of our net worth sweep dividend. | ||||||||||||||||||||||
The senior preferred stock is senior to our common stock and all other outstanding series of our preferred stock, as well as any capital stock we issue in the future, as to both dividends and rights upon liquidation. The senior preferred stock provides that we may not, at any time, declare or pay dividends on, make distributions with respect to, or redeem, purchase or acquire, or make a liquidation payment with respect to, any common stock or other securities ranking junior to the senior preferred stock unless: (a) full cumulative dividends on the outstanding senior preferred stock (including any unpaid dividends added to the liquidation preference) have been declared and paid in cash; and (b) all amounts required to be paid with the net proceeds of any issuance of capital stock for cash (as described in the following paragraph) have been paid in cash. Shares of the senior preferred stock are not convertible. Shares of the senior preferred stock have no general or special voting rights, other than those set forth in the certificate of designation for the senior preferred stock or otherwise required by law. The consent of holders of at least two-thirds of all outstanding shares of senior preferred stock is generally required to amend the terms of the senior preferred stock or to create any class or series of stock that ranks prior to or on parity with the senior preferred stock. | ||||||||||||||||||||||
We are not permitted to redeem the senior preferred stock prior to the termination of Treasury’s funding commitment set forth in the Purchase Agreement; however, we are permitted to pay down the liquidation preference of the outstanding shares of senior preferred stock to the extent of: (a) accrued and unpaid dividends previously added to the liquidation preference and not previously paid down; and (b) quarterly commitment fees previously added to the liquidation preference and not previously paid down. In addition, if we issue any shares of capital stock for cash while the senior preferred stock is outstanding, the net proceeds of the issuance must be used to pay down the liquidation preference of the senior preferred stock; however, the liquidation preference of each share of senior preferred stock may not be paid down below $1,000 per share prior to the termination of Treasury’s funding commitment. Following the termination of Treasury’s funding commitment, we may pay down the liquidation preference of all outstanding shares of senior preferred stock at any time, in whole or in part. If, after termination of Treasury’s funding commitment, we pay down the liquidation preference of each outstanding share of senior preferred stock in full, the shares will be deemed to have been redeemed as of the payment date. | ||||||||||||||||||||||
The table below provides a summary of our senior preferred stock outstanding at December 31, 2013. | ||||||||||||||||||||||
Table 11.3 — Senior Preferred Stock | ||||||||||||||||||||||
Draw Date | Shares | Shares | Total | Initial | Total | |||||||||||||||||
Authorized | Outstanding | Par Value | Liquidation | Liquidation | ||||||||||||||||||
Preference | Preference(1) | |||||||||||||||||||||
Price per Share | ||||||||||||||||||||||
Senior preferred stock: | (in millions, except initial liquidation preference price per share) | |||||||||||||||||||||
10 | % | 8-Sep-08 | (2) | 1 | 1 | $ | 1 | $ | 1,000 | $ | 1,000 | |||||||||||
10 | % | (3) | 24-Nov-08 | — | — | — | N/A | 13,800 | ||||||||||||||
10 | % | (3) | 31-Mar-09 | — | — | — | N/A | 30,800 | ||||||||||||||
10 | % | (3) | 30-Jun-09 | — | — | — | N/A | 6,100 | ||||||||||||||
10 | % | (3) | 30-Jun-10 | — | — | — | N/A | 10,600 | ||||||||||||||
10 | % | (3) | 30-Sep-10 | — | — | — | N/A | 1,800 | ||||||||||||||
10 | % | (3) | 30-Dec-10 | — | — | — | N/A | 100 | ||||||||||||||
10 | % | (3) | 31-Mar-11 | — | — | — | N/A | 500 | ||||||||||||||
10 | % | (3) | 30-Sep-11 | — | — | — | N/A | 1,479 | ||||||||||||||
10 | % | (3) | 30-Dec-11 | — | — | — | N/A | 5,992 | ||||||||||||||
10 | % | (3) | 30-Mar-12 | — | — | — | N/A | 146 | ||||||||||||||
10 | % | (3) | 29-Jun-12 | — | — | — | N/A | 19 | ||||||||||||||
Total, senior preferred stock | 1 | 1 | $ | 1 | $ | 72,336 | ||||||||||||||||
-1 | Amounts stated at redemption value. | |||||||||||||||||||||
-2 | We did not receive any cash proceeds from Treasury as a result of issuing these shares. | |||||||||||||||||||||
-3 | Represents an increase in the liquidation preference of our senior preferred stock due to the receipt of funds from Treasury. | |||||||||||||||||||||
No cash was received from Treasury under the Purchase Agreement in 2013, because we had positive net worth at December 31, 2012, March 31, 2013, June 30, 2013, and September 30, 2013 and, consequently, FHFA did not request a draw on our behalf. At December 31, 2013, our assets exceeded our liabilities under GAAP; therefore no draw is being requested from Treasury under the Purchase Agreement. Our quarterly senior preferred stock dividend is the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter exceeds the applicable Capital Reserve Amount, which was established at $3 billion for 2013 and declines to zero in 2018. Based on our Net Worth Amount at December 31, 2013, our dividend obligation to Treasury in March 2014 will be $10.4 billion. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS — Government Support for our Business” for additional information. The aggregate liquidation preference on the senior preferred stock owned by Treasury was $72.3 billion and $72.3 billion as of December 31, 2013 and 2012, respectively. See “NOTE 18: REGULATORY CAPITAL” for additional information. | ||||||||||||||||||||||
Common Stock Warrant | ||||||||||||||||||||||
Pursuant to the Purchase Agreement described in “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS,” on September 7, 2008, we, through FHFA, in its capacity as Conservator, issued a warrant to purchase common stock to Treasury. The warrant was issued to Treasury in partial consideration of Treasury’s commitment to provide funds to us under the terms set forth in the Purchase Agreement. | ||||||||||||||||||||||
The warrant gives Treasury the right to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis on the date of exercise. The warrant may be exercised in whole or in part at any time on or before September 7, 2028, by delivery to us of: (a) a notice of exercise; (b) payment of the exercise price of $0.00001 per share; and (c) the warrant. If the market price of one share of our common stock is greater than the exercise price, then, instead of paying the exercise price, Treasury may elect to receive shares equal to the value of the warrant (or portion thereof being canceled) pursuant to the formula specified in the warrant. Upon exercise of the warrant, Treasury may assign the right to receive the shares of common stock issuable upon exercise to any other person. | ||||||||||||||||||||||
We account for the warrant in permanent equity. At issuance on September 7, 2008, we recognized the warrant at fair value, and we do not recognize subsequent changes in fair value while the warrant remains classified in equity. We recorded an aggregate fair value of $2.3 billion for the warrant as a component of additional paid-in-capital. We derived the fair value of the warrant using a modified Black-Scholes model. If the warrant is exercised, the stated value of the common stock issued will be reclassified to common stock in our consolidated balance sheets. The warrant was determined to be in-substance non-voting common stock, because the warrant’s exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock). As a result, the warrant is included in the computation of basic and diluted earnings (loss) per share. The weighted average shares of common stock outstanding for the years ended December 31, 2013, 2012, and 2011, respectively, included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
The table below provides a summary of our preferred stock outstanding at December 31, 2013. We have the option to redeem our preferred stock on specified dates, at their redemption price plus dividends accrued through the redemption date. However, without the consent of Treasury, we are restricted from making payments to purchase or redeem preferred stock as well as paying any preferred dividends, other than dividends on the senior preferred stock. In addition, all 24 classes of preferred stock are perpetual and non-cumulative, and carry no significant voting rights or rights to purchase additional Freddie Mac stock or securities. Costs incurred in connection with the issuance of preferred stock are charged to additional paid-in capital. | ||||||||||||||||||||||
Table 11.4 — Preferred Stock | ||||||||||||||||||||||
Issue Date | Shares | Shares | Total | Redemption | Total | Redeemable | OTCQB | |||||||||||||||
Authorized | Outstanding | Par Value | Price per | Outstanding | On or After(2) | Symbol(3) | ||||||||||||||||
Share | Balance(1) | |||||||||||||||||||||
Preferred stock: | (in millions, except redemption price per share) | |||||||||||||||||||||
1996 Variable-rate(4) | 26-Apr-96 | 5 | 5 | $ | 5 | $ | 50 | $ | 250 | 30-Jun-01 | FMCCI | |||||||||||
5.81% | 27-Oct-97 | 3 | 3 | 3 | 50 | 150 | 27-Oct-98 | -5 | ||||||||||||||
5% | 23-Mar-98 | 8 | 8 | 8 | 50 | 400 | 31-Mar-03 | FMCKK | ||||||||||||||
1998 Variable-rate(6) | September 23 and 29, 1998 | 4.4 | 4.4 | 4.4 | 50 | 220 | 30-Sep-03 | FMCCG | ||||||||||||||
5.10% | 23-Sep-98 | 8 | 8 | 8 | 50 | 400 | 30-Sep-03 | FMCCH | ||||||||||||||
5.30% | 28-Oct-98 | 4 | 4 | 4 | 50 | 200 | 30-Oct-00 | -5 | ||||||||||||||
5.10% | 19-Mar-99 | 3 | 3 | 3 | 50 | 150 | 31-Mar-04 | -5 | ||||||||||||||
5.79% | 21-Jul-99 | 5 | 5 | 5 | 50 | 250 | 30-Jun-09 | FMCCK | ||||||||||||||
1999 Variable-rate(7) | 5-Nov-99 | 5.75 | 5.75 | 5.75 | 50 | 287 | 31-Dec-04 | FMCCL | ||||||||||||||
2001 Variable-rate(8) | 26-Jan-01 | 6.5 | 6.5 | 6.5 | 50 | 325 | 31-Mar-03 | FMCCM | ||||||||||||||
2001 Variable-rate(9) | 23-Mar-01 | 4.6 | 4.6 | 4.6 | 50 | 230 | 31-Mar-03 | FMCCN | ||||||||||||||
5.81% | 23-Mar-01 | 3.45 | 3.45 | 3.45 | 50 | 173 | 31-Mar-11 | FMCCO | ||||||||||||||
6% | 30-May-01 | 3.45 | 3.45 | 3.45 | 50 | 173 | 30-Jun-06 | FMCCP | ||||||||||||||
2001 Variable-rate(10) | 30-May-01 | 4.02 | 4.02 | 4.02 | 50 | 201 | 30-Jun-03 | FMCCJ | ||||||||||||||
5.70% | 30-Oct-01 | 6 | 6 | 6 | 50 | 300 | 31-Dec-06 | FMCKP | ||||||||||||||
5.81% | 29-Jan-02 | 6 | 6 | 6 | 50 | 300 | 31-Mar-07 | -5 | ||||||||||||||
2006 Variable-rate(11) | 17-Jul-06 | 15 | 15 | 15 | 50 | 750 | 30-Jun-11 | FMCCS | ||||||||||||||
6.42% | 17-Jul-06 | 5 | 5 | 5 | 50 | 250 | 30-Jun-11 | FMCCT | ||||||||||||||
5.90% | 16-Oct-06 | 20 | 20 | 20 | 25 | 500 | 30-Sep-11 | FMCKO | ||||||||||||||
5.57% | 16-Jan-07 | 44 | 44 | 44 | 25 | 1,100 | 31-Dec-11 | FMCKM | ||||||||||||||
5.66% | 16-Apr-07 | 20 | 20 | 20 | 25 | 500 | 31-Mar-12 | FMCKN | ||||||||||||||
6.02% | 24-Jul-07 | 20 | 20 | 20 | 25 | 500 | 30-Jun-12 | FMCKL | ||||||||||||||
6.55% | 28-Sep-07 | 20 | 20 | 20 | 25 | 500 | 30-Sep-17 | FMCKI | ||||||||||||||
2007 Fixed-to-floating rate(12) | 4-Dec-07 | 240 | 240 | 240 | 25 | 6,000 | 31-Dec-12 | FMCKJ | ||||||||||||||
Total, preferred stock | 464.17 | 464.17 | $ | 464.17 | $ | 14,109 | ||||||||||||||||
-1 | Amounts stated at redemption value. | |||||||||||||||||||||
-2 | In accordance with the Purchase Agreement, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury, redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant). | |||||||||||||||||||||
-3 | Preferred stock trades exclusively through the OTCQB Marketplace unless otherwise noted. | |||||||||||||||||||||
-4 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 9.00%. | |||||||||||||||||||||
-5 | Issued through private placement. | |||||||||||||||||||||
-6 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 7.50%. | |||||||||||||||||||||
-7 | Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. Optional redemption on December 31, 2004 and on December 31 every five years thereafter. | |||||||||||||||||||||
-8 | Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every two years thereafter. | |||||||||||||||||||||
-9 | Dividend rate resets on April 1 every year based on 12-month LIBOR minus 0.20%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every year thereafter. | |||||||||||||||||||||
-10 | Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. Optional redemption on June 30, 2003 and on June 30 every two years thereafter. | |||||||||||||||||||||
-11 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%. | |||||||||||||||||||||
-12 | Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of three-month LIBOR plus 4.16% per annum; or (b) 7.875% per annum. Optional redemption on December 31, 2012, and on December 31 every five years thereafter. | |||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||
Following the implementation of the conservatorship in September 2008, we suspended the operation of our ESPP, and are no longer making grants under our 2004 Employee Plan or our Directors’ Plan. We collectively refer to the 2004 Employee Plan and the 1995 Employee Plan as the Employee Plans. Under the Purchase Agreement, we cannot issue any new options, rights to purchase, participations or other equity interests without Treasury’s prior approval. However, grants outstanding as of the date of the Purchase Agreement remain in effect in accordance with their terms. | ||||||||||||||||||||||
We did not repurchase or issue any of our common shares or non-cumulative preferred stock during 2013 and 2012, except for issuances of treasury stock as reported on our consolidated statements of equity (deficit) relating to stock-based compensation granted prior to conservatorship. Common stock delivered under these stock-based compensation plans consists of treasury stock or shares acquired in market transactions on behalf of the participants. During 2013, restrictions lapsed on 7,976 restricted stock units. At December 31, 2013, 20,341 restricted stock units remained outstanding. There are no remaining restrictions on outstanding restricted stock units. In addition, there were 41,160 shares of restricted stock outstanding at both December 31, 2013 and 2012. During 2013, no stock options were exercised and 492,861 stock options were forfeited or expired. At December 31, 2013, 816,435 stock options were outstanding. | ||||||||||||||||||||||
For purposes of the earnings-per-share calculation, antidilutive potential common shares excluded from the computation of dilutive potential common shares were 998,707, 1,606,097, and 3,383,185 at December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||
Dividends Declared | ||||||||||||||||||||||
No common dividends were declared in 2013. During the three months ended March 31, 2013, June 30, 2013, September 30, 2013, and December 31, 2013, we paid dividends of $5.8 billion, $7.0 billion, $4.4 billion, and $30.4 billion, respectively, in cash on the senior preferred stock at the direction of our Conservator. We did not declare or pay dividends on any other series of Freddie Mac preferred stock outstanding during 2013. | ||||||||||||||||||||||
Delisting of Common Stock and Preferred Stock from NYSE | ||||||||||||||||||||||
On July 8, 2010, we delisted our common and 20 previously listed classes of preferred stock from the NYSE pursuant to a directive by our Conservator. | ||||||||||||||||||||||
Our common stock and the classes of preferred stock that were previously listed on the NYSE are traded exclusively in the OTCQB Marketplace. Shares of our common stock now trade under the ticker symbol FMCC. We expect that our common stock and the previously listed classes of preferred stock will continue to trade in the OTCQB Marketplace so long as market makers demonstrate an interest in trading the common and preferred stock. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||||||
NOTE 12: INCOME TAXES | |||||||||||||||||||||
Income Tax Benefit | |||||||||||||||||||||
The table below presents the components of our federal income tax benefit for 2013, 2012, and 2011. We are exempt from state and local income taxes. | |||||||||||||||||||||
Table 12.1 — Federal Income Tax Benefit | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Current income tax (expense) benefit | $ | (117 | ) | $ | 1,540 | $ | 283 | ||||||||||||||
Deferred income tax benefit (expense) | 23,422 | (3 | ) | 117 | |||||||||||||||||
Total income tax benefit | $ | 23,305 | $ | 1,537 | $ | 400 | |||||||||||||||
Our income tax benefit for 2013 primarily relates to the release of the valuation allowance against our net deferred tax assets. | |||||||||||||||||||||
The table below presents a reconciliation between our federal statutory income tax rate and our effective tax rate for 2013, 2012, and 2011. | |||||||||||||||||||||
Table 12.2 — Reconciliation of Statutory to Effective Tax Rate | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Statutory corporate tax rate | $ | (8,877 | ) | 35 | % | $ | (3,306 | ) | 35 | % | $ | 1,983 | 35 | % | |||||||
Tax-exempt interest | 101 | (0.4 | ) | 133 | (1.4 | ) | 179 | 3.2 | |||||||||||||
Tax credits | 495 | (2.0 | ) | 536 | (5.7 | ) | 566 | 10 | |||||||||||||
Valuation allowance: | |||||||||||||||||||||
Current year activity | 5,156 | (20.3 | ) | 2,637 | (27.9 | ) | (2,728 | ) | (48.2 | ) | |||||||||||
Release of valuation allowance | 26,369 | (104.0 | ) | — | — | — | — | ||||||||||||||
Unrecognized tax benefits | — | — | 1,205 | (12.8 | ) | (21 | ) | (0.4 | ) | ||||||||||||
Other | 138 | (0.5 | ) | 45 | (0.5 | ) | 403 | 7.2 | |||||||||||||
Total valuation allowance | 31,663 | (124.8 | ) | 3,887 | (41.2 | ) | (2,346 | ) | (41.4 | ) | |||||||||||
Other | (77 | ) | 0.3 | 287 | (3.0 | ) | 18 | 0.3 | |||||||||||||
Effective tax rate | $ | 23,305 | (91.9 | )% | $ | 1,537 | (16.3 | )% | $ | 400 | 7.1 | % | |||||||||
In 2013, our effective tax rate differs from the statutory rate of 35% primarily due to the release of the valuation allowance against our net deferred tax assets. In 2012 and 2011, our effective tax rate differs from the statutory tax rate of 35% primarily due to the valuation allowance on a portion of our net deferred tax assets and the recognition of uncertain tax positions. | |||||||||||||||||||||
Deferred Tax Assets and Liabilities | |||||||||||||||||||||
During 2013, we released our valuation allowance previously recorded on our net deferred tax asset. Deferred tax assets are created when: (a) expenses are recognized for financial reporting purposes prior to the corresponding recognition of expenses for tax reporting purposes; and/or (b) income is recognized for tax reporting purposes prior to the corresponding recognition of income for financial reporting purposes. The table below presents the balance of significant deferred tax assets, liabilities, and the valuation allowance at December 31, 2013 and 2012. | |||||||||||||||||||||
Table 12.3 — Deferred Tax Assets and Liabilities | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Deferred fees | $ | 5,035 | $ | 4,330 | |||||||||||||||||
Basis differences related to derivative instruments | 6,946 | 10,294 | |||||||||||||||||||
Credit related items and allowance for loan losses | 3,648 | 6,785 | |||||||||||||||||||
Unrealized (gains) losses related to available-for-sale securities | — | 778 | |||||||||||||||||||
LIHTC and AMT credit carryforward | 3,997 | 3,408 | |||||||||||||||||||
Net operating loss carryforward | 3,978 | 11,479 | |||||||||||||||||||
Other items, net | 40 | 146 | |||||||||||||||||||
Total deferred tax assets | 23,644 | 37,220 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Basis differences related to assets held for investment(1) | (375 | ) | (4,609 | ) | |||||||||||||||||
Unrealized (gains) losses related to available-for-sale securities | (518 | ) | — | ||||||||||||||||||
Basis differences related to debt | (35 | ) | (149 | ) | |||||||||||||||||
Total deferred tax liabilities | (928 | ) | (4,758 | ) | |||||||||||||||||
Valuation allowance | — | (31,684 | ) | ||||||||||||||||||
Deferred tax assets (liabilities), net | $ | 22,716 | $ | 778 | |||||||||||||||||
-1 | The deferred tax liability balance for basis differences related to assets held for investment includes a basis adjustment on seriously delinquent loans. This deferred tax liability offsets a portion of the deferred tax asset for credit related items and the allowance for loan losses. | ||||||||||||||||||||
As of December 31, 2013, we had a net operating loss carryforward of $11.4 billion and a LIHTC carryforward of $3.6 billion that will expire over multiple years beginning in 2030 and 2027, respectively. Our AMT credit carryforward of $445 million will not expire. | |||||||||||||||||||||
Valuation Allowance Against Net Deferred Tax Assets | |||||||||||||||||||||
As discussed below, after weighing all of the evidence at September 30, 2013, we determined that the positive evidence relating to the realizability of our deferred tax assets, particularly the evidence that was objectively verifiable, outweighed the negative evidence. Accordingly, we concluded that it is more likely than not that our deferred tax assets will be realized and we released the valuation allowance against our net deferred tax assets. | |||||||||||||||||||||
On a quarterly basis, we determine whether a valuation allowance is necessary on our net deferred tax asset. In doing so, we consider all evidence available, both positive and negative, in determining whether, based on the weight of the evidence, it is more likely than not that the deferred tax assets will be realized. In conducting our assessment at September 30, 2013, we evaluated all available objective evidence including, but not limited to: (a) our three-year cumulative income position; (b) the trend of our financial and tax results; (c) the amount of taxable income reported in our 2012 federal income tax return; (d) our tax net operating loss and tax credit carryforwards and the length of carryforward periods available to utilize these assets under current tax law; and (e) our access to capital under the agreements associated with conservatorship. Furthermore, we evaluated all available subjective evidence, including but not limited to: (a) difficulty in predicting unsettled circumstances related to the conservatorship; (b) our estimated 2013 taxable income; and (c) forecasts of future book and tax income. Our consideration of the evidence requires significant judgment regarding estimates and assumptions that are inherently uncertain, particularly about our future business structure and financial results. | |||||||||||||||||||||
We are not permitted to consider the impacts proposed legislation may have on our business operations or the mortgage industry in our analysis because the timing and certainty of those actions are unknown and beyond our control. | |||||||||||||||||||||
The positive evidence at September 30, 2013, that outweighed the negative evidence included the following: | |||||||||||||||||||||
• | Our three-year cumulative income position; | ||||||||||||||||||||
• | The strong positive trend in our financial performance over six consecutive quarters; | ||||||||||||||||||||
• | The 2012 taxable income reported in our federal tax return which was filed in 2013; | ||||||||||||||||||||
• | Our forecasted 2013 and future period taxable income; | ||||||||||||||||||||
• | Our net operating loss carryforwards do not begin to expire until 2030; and | ||||||||||||||||||||
• | The continuing positive trend in the housing market. | ||||||||||||||||||||
When comparing evidence available at 2013 versus 2012, we noted a number of positive developments. During 2013, we filed our 2012 federal tax return, which reflected taxable income. This was our first year reporting taxable income since 2007. Furthermore, we continued an improved trend in earnings. Our current base forecast of taxable income also improved resulting in a decline in the number of years of projected income required in order to fully realize our net deferred tax asset. These positive developments in addition to the positive evidence discussed above resulted in our conclusion to release the valuation allowance against our net deferred tax assets at September 30, 2013. Given the continued positive trend in our financial performance through the fourth quarter, we determined that a valuation allowance against our net deferred tax asset was not necessary at December 31, 2013. | |||||||||||||||||||||
In future quarters we will continue to evaluate our ability to realize the net deferred tax asset. If evidence in future periods changes such that it is more likely than not that part or all of the net deferred tax asset will not be realized, we will reestablish a valuation allowance at that time. | |||||||||||||||||||||
Unrecognized Tax Benefits and IRS Examinations | |||||||||||||||||||||
Table 12.4 — Unrecognized Tax Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Balance at January 1 | $ | — | $ | 1,355 | $ | 1,220 | |||||||||||||||
Changes based on tax positions in prior years | — | (41 | ) | 130 | |||||||||||||||||
Changes based on tax positions in current years | — | (28 | ) | 6 | |||||||||||||||||
Decreases in unrecognized tax benefits due to settlements with taxing authorities | — | (1,286 | ) | (1 | ) | ||||||||||||||||
Balance at December 31 | $ | — | $ | — | $ | 1,355 | |||||||||||||||
We have evaluated all income tax positions and determined that there are no uncertain tax positions that require reserves as of December 31, 2013. | |||||||||||||||||||||
The IRS is currently examining our income tax returns for tax years 2008 through 2011. We are currently working with the IRS to finalize the stipulation of settled issues and closing agreement for years 1998 through 2010 related to our tax accounting method for certain hedging transactions, and expect that a final decision can be entered within the next 12 months. For additional information, see “NOTE 17: LEGAL CONTINGENCIES.” | |||||||||||||||||||||
We have accrued gross interest receivable of $529 million and $523 million as of December 31, 2013 and 2012, respectively, related to payments on account with the IRS. We anticipate refunds of accrued interest receivable upon final settlement of the Statutory Notices for the 1998 to 2005 tax years. | |||||||||||||||||||||
For a discussion of our significant accounting policies related to income taxes, please see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Income Taxes.” |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||||||||||||||||
NOTE 13: SEGMENT REPORTING | ||||||||||||||||||||||||||||||||||||
We evaluate segment performance and allocate resources based on a Segment Earnings approach, subject to the conduct of our business under the direction of the Conservator. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS” for additional information about the conservatorship. | ||||||||||||||||||||||||||||||||||||
We present Segment Earnings by: (a) reclassifying certain credit guarantee-related activities and investment-related activities between various line items on our GAAP consolidated statements of comprehensive income; and (b) allocating certain revenues and expenses, including certain returns on assets and funding costs, and all administrative expenses to our three reportable segments. These reclassifications and allocations are described in “Segment Earnings.” | ||||||||||||||||||||||||||||||||||||
We do not consider our assets by segment when evaluating segment performance or allocating resources. We operate our business solely in the U.S. and its territories. Therefore, we do not generate any revenue from and do not have any long-lived assets other than financial instruments in geographic locations outside of the U.S. and its territories. | ||||||||||||||||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||||||||||
Our operations consist of three reportable segments, which are based on the type of business activities each performs — Single-family Guarantee, Investments, and Multifamily. The chart below provides a summary of our three reportable segments and the All Other category as of December 31, 2013. Certain immaterial changes were made to our Segment Earnings definitions in 2013. As reflected in the chart, certain activities that are not part of a reportable segment are included in the All Other category. The All Other category consists of material corporate level activities that are: (a) infrequent in nature; and (b) based on decisions outside the control of the management of our reportable segments. By recording these types of activities to the All Other category, we believe the financial results of our three reportable segments reflect the decisions and strategies that are executed within the reportable segments and provide greater comparability across time periods. | ||||||||||||||||||||||||||||||||||||
Segment | Description | Activities/Items | ||||||||||||||||||||||||||||||||||
Single-family Guarantee | The Single-family Guarantee segment reflects results from our single-family credit guarantee activities. In our Single-family Guarantee segment, we purchase and guarantee single-family mortgage loans originated by our seller/servicers in the primary mortgage market. In most instances, we use the mortgage securitization process to package the mortgage loans into guaranteed mortgage-related securities. We guarantee the payment of principal and interest on the mortgage-related securities in exchange for management and guarantee fees. Segment Earnings for this segment consist primarily of management and guarantee fee revenues, including amortization of upfront fees, less credit-related expenses, administrative expenses, allocated funding costs, and amounts related to net float benefits or expenses. | • | Management and guarantee fees on PCs, including those retained by us, and single-family mortgage loans in the mortgage investments portfolio, inclusive of up-front credit delivery fees | |||||||||||||||||||||||||||||||||
• | Recognition and remittance to Treasury of guarantee fees resulting from the 10 basis point legislated increase | |||||||||||||||||||||||||||||||||||
• | Adjustments for security performance | |||||||||||||||||||||||||||||||||||
• | Credit losses on all single-family assets | |||||||||||||||||||||||||||||||||||
• | Guarantee buy-downs | |||||||||||||||||||||||||||||||||||
• | Expected net float income or expense on the single-family credit guarantee portfolio | |||||||||||||||||||||||||||||||||||
• | Deferred tax asset valuation allowance | |||||||||||||||||||||||||||||||||||
• | Allocated debt costs, administrative expenses and taxes | |||||||||||||||||||||||||||||||||||
• | Representation and warranty settlements | |||||||||||||||||||||||||||||||||||
Investments | The Investments segment reflects results from three primary activities: (a) managing the company’s mortgage-related investments portfolio, excluding Multifamily segment investments; (b) managing the treasury function, including funding and liquidity, for the overall company; and (c) managing interest-rate risk for the overall company. In our Investments segment, we invest principally in mortgage-related securities and single-family performing mortgage loans. Segment Earnings for this segment consist primarily of the returns on these investments, less the related funding, hedging, and administrative expenses. In addition, the Investments segment reflects changes in the fair value of the Multifamily segment securities, primarily CMBS, and held-for-sale loans that are associated with changes in interest rates. | • | Investments in mortgage-related securities and single-family performing mortgage loans | |||||||||||||||||||||||||||||||||
• | Investments in short-term asset-backed securities | |||||||||||||||||||||||||||||||||||
• | All other traded instruments / securities, excluding CMBS and multifamily housing revenue bonds | |||||||||||||||||||||||||||||||||||
• | Debt issuances | |||||||||||||||||||||||||||||||||||
• | Interest rate risk management returns | |||||||||||||||||||||||||||||||||||
• | Guarantee buy-ups, net of execution gains / losses | |||||||||||||||||||||||||||||||||||
• | Cash and liquidity management | |||||||||||||||||||||||||||||||||||
• | Deferred tax asset valuation allowance | |||||||||||||||||||||||||||||||||||
• | Allocated administrative expenses and taxes | |||||||||||||||||||||||||||||||||||
• | Non-agency mortgage-related securities settlements | |||||||||||||||||||||||||||||||||||
Multifamily | The Multifamily segment reflects results from our investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. Our primary business model is to purchase multifamily mortgage loans for aggregation and then securitization through issuance of multifamily K Certificates. To a lesser extent, we provide guarantees of the payment of principal and interest on tax-exempt multifamily pass-through certificates backed by multifamily housing revenue bonds. In addition, we guarantee the payment of principal and interest on tax-exempt multifamily housing revenue bonds secured by low- and moderate-income multifamily mortgage loans. Segment Earnings for this segment consist primarily of the interest earned on assets related to multifamily investment activities and management and guarantee fee income, less credit-related expenses, administrative expenses, and allocated funding costs. In addition, the Multifamily segment reflects the impact of changes in fair value of our investment securities and held-for-sale loans associated with market factors other than changes in interest rates, such as liquidity and credit. | • | Multifamily mortgage loans held-for-sale and associated securitization activities | |||||||||||||||||||||||||||||||||
• | Investments in CMBS, multifamily housing revenue bonds, and multifamily mortgage loans held-for-investment | |||||||||||||||||||||||||||||||||||
• | Allocated debt costs, administrative expenses and taxes | |||||||||||||||||||||||||||||||||||
• | Other guarantee commitments on multifamily housing revenue bonds | |||||||||||||||||||||||||||||||||||
• | Other Structured Securities of multifamily housing revenue bonds | |||||||||||||||||||||||||||||||||||
• | Deferred tax asset valuation allowance | |||||||||||||||||||||||||||||||||||
All Other | The All Other category consists of material corporate-level activities that are: (a) infrequent in nature; and (b) based on decisions outside the control of the management of our reportable segments. | • | Tax settlements, as applicable | |||||||||||||||||||||||||||||||||
• | Legal settlements, as applicable | |||||||||||||||||||||||||||||||||||
• | The deferred tax asset valuation allowance and release of tax asset valuation allowance associated with previously recognized income tax credits carried forward | |||||||||||||||||||||||||||||||||||
• | Termination of our pension plan | |||||||||||||||||||||||||||||||||||
Segment Earnings | ||||||||||||||||||||||||||||||||||||
The financial performance of our Single-family Guarantee segment and Multifamily segment are measured based on each segment’s contribution to GAAP net income (loss). Our Investments segment is measured on its contribution to GAAP comprehensive income (loss), which consists of the sum of its contribution to: (a) GAAP net income (loss); and (b) GAAP total other comprehensive income (loss), net of taxes. | ||||||||||||||||||||||||||||||||||||
The sum of Segment Earnings for each segment and the All Other category equals GAAP net income (loss). Likewise, the sum of comprehensive income (loss) for each segment and the All Other category equals GAAP comprehensive income (loss). However, the accounting principles we apply to present certain financial statement line items in Segment Earnings for our reportable segments, in particular Segment Earnings management and guarantee income and net interest income, differ significantly from those applied in preparing the comparable line items in our consolidated financial statements prepared in accordance with GAAP. Accordingly, the results of such line items differ significantly from, and should not be used as a substitute for, the comparable line items as determined in accordance with GAAP. For reconciliations of the Segment Earnings line items to the comparable line items in our consolidated financial statements prepared in accordance with GAAP, see “Table 13.2 — Segment Earnings and Reconciliation to GAAP Results.” | ||||||||||||||||||||||||||||||||||||
Many of the reclassifications, adjustments and allocations described below relate to the amendments to the accounting guidance for transfers of financial assets and consolidation of VIEs, which we adopted effective January 1, 2010. These amendments require us to consolidate our single-family PC trusts and certain Other Guarantee Transactions, which makes it difficult to view the results of the three operating segments from a GAAP perspective. For example, as a result of the amendments, the net guarantee fee earned on mortgage loans held by our consolidated trusts is included in net interest income on our GAAP consolidated statements of comprehensive income. Through the reclassifications described below, we move the net guarantee fees earned on mortgage loans into Segment Earnings management and guarantee income. | ||||||||||||||||||||||||||||||||||||
Credit Guarantee Activity-Related Reclassifications | ||||||||||||||||||||||||||||||||||||
In preparing certain line items within Segment Earnings, we make various reclassifications to earnings determined under GAAP related to our credit-guarantee activities, including those described below. All credit guarantee-related income and costs are included in Segment Earnings management and guarantee income. | ||||||||||||||||||||||||||||||||||||
• | Net guarantee fee is reclassified in Segment Earnings from net interest income to management and guarantee income. | |||||||||||||||||||||||||||||||||||
• | Implied management and guarantee fee related to unsecuritized mortgage loans held in the mortgage investments portfolio is reclassified in Segment Earnings from net interest income to management and guarantee income. | |||||||||||||||||||||||||||||||||||
• | The portion of the amount reversed for accrued but uncollected interest upon placing loans on a non-accrual status that relates to guarantee fees is reclassified in Segment Earnings from net interest income to management and guarantee income. The remaining portion of the allowance for lost interest is reclassified in Segment Earnings from net interest income to provision for credit losses. | |||||||||||||||||||||||||||||||||||
Investment Activity-Related Reclassifications | ||||||||||||||||||||||||||||||||||||
In preparing certain line items within Segment Earnings, we make various reclassifications to earnings determined under GAAP related to our investment activities, including those described below. Through these reclassifications, we move certain items into or out of net interest income so that, on a Segment Earnings basis, net interest income reflects how we measure the effective yield earned on securities held in our mortgage investments portfolio and our cash and other investments portfolio. | ||||||||||||||||||||||||||||||||||||
We use derivatives extensively in our investment activity. The reclassifications described below allow us to reflect, in Segment Earnings net interest income, the costs associated with this use of derivatives. | ||||||||||||||||||||||||||||||||||||
• | The accrual of periodic cash settlements of all derivatives is reclassified in Segment Earnings from derivative gains (losses) into net interest income to fully reflect the periodic cost associated with the protection provided by these contracts. | |||||||||||||||||||||||||||||||||||
• | Up-front cash paid or received upon the purchase or writing of swaptions and other option contracts is reclassified in Segment Earnings prospectively on a straight-line basis from derivative gains (losses) into net interest income over the contractual life of the instrument to fully reflect the periodic cost associated with the protection provided by these contracts. | |||||||||||||||||||||||||||||||||||
Amortization related to certain items is not relevant to how we measure the effective yield earned on the securities held in our investments portfolios. Therefore, as described below, we reclassify these items in Segment Earnings from net interest income to non-interest income. | ||||||||||||||||||||||||||||||||||||
• | Amortization related to derivative commitment basis adjustments associated with mortgage-related and non-mortgage-related securities. | |||||||||||||||||||||||||||||||||||
• | Amortization related to accretion of other-than-temporary impairments on available-for-sale securities held. | |||||||||||||||||||||||||||||||||||
• | Amortization related to premiums and discounts associated with PCs and Other Guarantee Transactions issued by our consolidated trusts that we previously held and subsequently transferred to third parties. The amortization is related to deferred gains (losses) on transfers of these securities. | |||||||||||||||||||||||||||||||||||
Segment Adjustments | ||||||||||||||||||||||||||||||||||||
In presenting Segment Earnings management and guarantee income and net interest income, we make adjustments to better reflect how management measures and assesses the performance of each segment and the company as a whole. These adjustments relate to amounts that are not reflected in net income (loss) as determined in accordance with GAAP. These adjustments are reversed through the segment adjustments line item within Segment Earnings, so that Segment Earnings (loss) for each segment equals GAAP net income (loss) for each segment. Segment adjustments consist of the following: | ||||||||||||||||||||||||||||||||||||
• | We adjust our Segment Earnings management and guarantee income for the Single-family Guarantee segment to include the amortization of buy-down fees and credit delivery fees recorded in periods prior to the January 1, 2010 adoption of accounting guidance for the transfers of financial assets and the consolidation of VIEs. As of December 31, 2013, the unamortized balance of buy-down fees was $0.4 billion and the unamortized balance of credit delivery fees was $0.9 billion. We consider such fees to be part of the effective rate of the guarantee fee on guaranteed mortgage loans. These adjustments are necessary to better reflect the realization of revenue associated with guarantee contracts over the life of the underlying loans. | |||||||||||||||||||||||||||||||||||
• | We adjust our Segment Earnings net interest income for the Investments segment to include the amortization of cash premiums and discounts, as well as buy-up fees, on the consolidated Freddie Mac mortgage-related securities we purchase as investments. As of December 31, 2013, the unamortized balance of such premiums and discounts, net was $3.2 billion and the unamortized balance of buy-up fees was $0.5 billion. These adjustments are necessary to reflect the effective yield realized on investments in consolidated Freddie Mac mortgage-related securities purchased at a premium or discount or with buy-up fees. | |||||||||||||||||||||||||||||||||||
Segment Allocations | ||||||||||||||||||||||||||||||||||||
The results of each reportable segment include directly attributable revenues and expenses. Administrative expenses that are not directly attributable to a segment are allocated to our segments using various methodologies, depending on the nature of the expense (i.e., semi-direct versus indirect). Net interest income for each segment includes allocated debt funding costs related to certain assets of each segment. These allocations, however, do not include the effects of dividends paid on our senior preferred stock. The tax credits generated by the LIHTC partnerships and any valuation allowance on these tax credits are allocated to the Multifamily segment. The deferred tax asset valuation allowance and release of the tax asset valuation allowance associated with previously recognized income tax credits carried forward, termination of our pension plan, and legal and tax settlements, as applicable, are allocated to the All Other category. All remaining taxes are calculated based on a 35% federal statutory rate as applied to pre-tax Segment Earnings. | ||||||||||||||||||||||||||||||||||||
The table below presents Segment Earnings by segment. | ||||||||||||||||||||||||||||||||||||
Table 13.1 — Summary of Segment Earnings and Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Segment Earnings (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,796 | $ | (164 | ) | $ | (10,000 | ) | ||||||||||||||||||||||||||||
Investments | 16,602 | 8,212 | 3,366 | |||||||||||||||||||||||||||||||||
Multifamily | 2,378 | 2,146 | 1,319 | |||||||||||||||||||||||||||||||||
All Other(1) | 23,892 | 788 | 49 | |||||||||||||||||||||||||||||||||
Total Segment Earnings (loss), net of taxes | 48,668 | 10,982 | (5,266 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 48,668 | $ | 10,982 | $ | (5,266 | ) | |||||||||||||||||||||||||||||
Comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,845 | $ | (227 | ) | $ | (9,970 | ) | ||||||||||||||||||||||||||||
Investments | 20,287 | 11,397 | 6,473 | |||||||||||||||||||||||||||||||||
Multifamily | 1,455 | 4,081 | 2,218 | |||||||||||||||||||||||||||||||||
All Other(1) | 24,013 | 788 | 49 | |||||||||||||||||||||||||||||||||
Comprehensive income (loss) of segments | 51,600 | 16,039 | (1,230 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 51,600 | $ | 16,039 | $ | (1,230 | ) | |||||||||||||||||||||||||||||
-1 | For the year ended December 31, 2013, includes a benefit for federal income taxes that resulted from the release of our valuation allowance against our net deferred tax assets. | |||||||||||||||||||||||||||||||||||
The table below presents detailed reconciliations between our GAAP financial statements and Segment Earnings by financial statement line item for our reportable segments and All Other. | ||||||||||||||||||||||||||||||||||||
Table 13.2 — Segment Earnings and Reconciliation to GAAP Results | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 320 | $ | 3,525 | $ | 1,186 | $ | — | $ | 5,031 | $ | 10,400 | $ | 1,037 | $ | 11,437 | $ | 16,468 | ||||||||||||||||||
Benefit (provision) for credit losses | 1,409 | — | 218 | — | 1,627 | 838 | — | 838 | 2,465 | |||||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 4,930 | — | 206 | — | 5,136 | (4,171 | ) | (694 | ) | (4,865 | ) | 271 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (974 | ) | (15 | ) | — | (989 | ) | (521 | ) | — | (521 | ) | (1,510 | ) | |||||||||||||||||||||
Derivative gains (losses) | (3 | ) | 6,806 | 18 | — | 6,821 | (4,189 | ) | — | (4,189 | ) | 2,632 | ||||||||||||||||||||||||
Gains (losses) on trading securities | — | (1,588 | ) | (10 | ) | — | (1,598 | ) | — | — | — | (1,598 | ) | |||||||||||||||||||||||
Gains (losses) on mortgage loans | — | (817 | ) | 481 | — | (336 | ) | — | — | — | (336 | ) | ||||||||||||||||||||||||
Other non-interest income | 1,165 | 9,612 | 640 | — | 11,417 | (2,357 | ) | — | (2,357 | ) | 9,060 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (1,025 | ) | (523 | ) | (257 | ) | — | (1,805 | ) | — | — | — | (1,805 | ) | ||||||||||||||||||||||
REO operations income (expense) | 124 | — | 16 | — | 140 | — | — | — | 140 | |||||||||||||||||||||||||||
Other non-interest expense | (712 | ) | 349 | (24 | ) | (37 | ) | (424 | ) | — | — | — | (424 | ) | ||||||||||||||||||||||
Segment adjustments(2) | (694 | ) | 1,037 | — | — | 343 | — | (343 | ) | (343 | ) | — | ||||||||||||||||||||||||
Income tax (expense) benefit | 282 | (825 | ) | (81 | ) | 23,929 | 23,305 | — | — | — | 23,305 | |||||||||||||||||||||||||
Net income | 5,796 | 16,602 | 2,378 | 23,892 | 48,668 | — | — | — | 48,668 | |||||||||||||||||||||||||||
Total other comprehensive income (loss), net of taxes | 49 | 3,685 | (923 | ) | 121 | 2,932 | — | — | — | 2,932 | ||||||||||||||||||||||||||
Comprehensive income | $ | 5,845 | $ | 20,287 | $ | 1,455 | $ | 24,013 | $ | 51,600 | $ | — | $ | — | $ | — | $ | 51,600 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | (147 | ) | $ | 5,726 | $ | 1,291 | $ | — | $ | 6,870 | $ | 9,942 | $ | 799 | $ | 10,741 | $ | 17,611 | |||||||||||||||||
Benefit (provision) for credit losses | (3,168 | ) | — | 123 | — | (3,045 | ) | 1,155 | — | 1,155 | (1,890 | ) | ||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 4,389 | — | 151 | — | 4,540 | (3,507 | ) | (832 | ) | (4,339 | ) | 201 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (1,831 | ) | (123 | ) | — | (1,954 | ) | (214 | ) | — | (214 | ) | (2,168 | ) | |||||||||||||||||||||
Derivative gains (losses) | — | 1,970 | 7 | — | 1,977 | (4,425 | ) | — | (4,425 | ) | (2,448 | ) | ||||||||||||||||||||||||
Gains (losses) on trading securities | — | (1,755 | ) | 81 | — | (1,674 | ) | — | — | — | (1,674 | ) | ||||||||||||||||||||||||
Gains (losses) on mortgage loans | — | 303 | 707 | — | 1,010 | — | — | — | 1,010 | |||||||||||||||||||||||||||
Other non-interest income | 931 | 2,741 | 275 | — | 3,947 | (2,951 | ) | — | (2,951 | ) | 996 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (890 | ) | (430 | ) | (241 | ) | — | (1,561 | ) | — | — | — | (1,561 | ) | ||||||||||||||||||||||
REO operations income (expense) | (62 | ) | — | 3 | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||||||||
Other non-interest expense | (393 | ) | (1 | ) | (129 | ) | (50 | ) | (573 | ) | — | — | — | (573 | ) | |||||||||||||||||||||
Segment adjustments(2) | (832 | ) | 799 | — | — | (33 | ) | — | 33 | 33 | — | |||||||||||||||||||||||||
Income tax benefit | 8 | 690 | 1 | 838 | 1,537 | — | — | — | 1,537 | |||||||||||||||||||||||||||
Net income (loss) | (164 | ) | 8,212 | 2,146 | 788 | 10,982 | — | — | — | 10,982 | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of taxes | (63 | ) | 3,185 | 1,935 | — | 5,057 | — | — | — | 5,057 | ||||||||||||||||||||||||||
Comprehensive income (loss) | $ | (227 | ) | $ | 11,397 | $ | 4,081 | $ | 788 | $ | 16,039 | $ | — | $ | — | $ | — | $ | 16,039 | |||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | (23 | ) | $ | 7,168 | $ | 1,200 | $ | — | $ | 8,345 | $ | 9,391 | $ | 661 | $ | 10,052 | $ | 18,397 | |||||||||||||||||
Benefit (provision) for credit losses | (12,294 | ) | — | 196 | — | (12,098 | ) | 1,396 | — | 1,396 | (10,702 | ) | ||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 3,647 | — | 127 | — | 3,774 | (2,905 | ) | (699 | ) | (3,604 | ) | 170 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (1,833 | ) | (353 | ) | — | (2,186 | ) | (115 | ) | — | (115 | ) | (2,301 | ) | |||||||||||||||||||||
Derivative gains (losses) | — | (3,597 | ) | 3 | — | (3,594 | ) | (6,158 | ) | — | (6,158 | ) | (9,752 | ) | ||||||||||||||||||||||
Gains (losses) on trading securities | — | (993 | ) | 39 | — | (954 | ) | — | — | — | (954 | ) | ||||||||||||||||||||||||
Gains (losses) on mortgage loans | — | 529 | 300 | — | 829 | — | — | — | 829 | |||||||||||||||||||||||||||
Other non-interest income | 1,216 | 1,437 | 86 | — | 2,739 | (1,609 | ) | — | (1,609 | ) | 1,130 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (888 | ) | (398 | ) | (220 | ) | — | (1,506 | ) | — | — | — | (1,506 | ) | ||||||||||||||||||||||
REO operations income (expense) | (596 | ) | — | 11 | — | (585 | ) | — | — | — | (585 | ) | ||||||||||||||||||||||||
Other non-interest expense | (321 | ) | (2 | ) | (69 | ) | — | (392 | ) | — | — | — | (392 | ) | ||||||||||||||||||||||
Segment adjustments(2) | (699 | ) | 661 | — | — | (38 | ) | — | 38 | 38 | — | |||||||||||||||||||||||||
Income tax (expense) benefit | (42 | ) | 394 | (1 | ) | 49 | 400 | — | — | — | 400 | |||||||||||||||||||||||||
Net income (loss) | (10,000 | ) | 3,366 | 1,319 | 49 | (5,266 | ) | — | — | — | (5,266 | ) | ||||||||||||||||||||||||
Total other comprehensive income, net of taxes | 30 | 3,107 | 899 | — | 4,036 | — | — | — | 4,036 | |||||||||||||||||||||||||||
Comprehensive income (loss) | $ | (9,970 | ) | $ | 6,473 | $ | 2,218 | $ | 49 | $ | (1,230 | ) | $ | — | $ | — | $ | — | $ | (1,230 | ) | |||||||||||||||
-1 | See “Segment Earnings — Investment Activity-Related Reclassifications” and “— Credit Guarantee Activity-Related Reclassifications” for information regarding these reclassifications. | |||||||||||||||||||||||||||||||||||
-2 | See “Segment Earnings — Segment Adjustments” for information regarding these adjustments. | |||||||||||||||||||||||||||||||||||
-3 | Management and guarantee income total per consolidated statements of comprehensive income is included in other income on our GAAP consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||
The table below presents comprehensive income (loss) by segment. | ||||||||||||||||||||||||||||||||||||
Table 13.3 — Comprehensive Income (Loss) of Segments | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,796 | $ | — | $ | — | $ | 49 | $ | 49 | $ | 5,845 | ||||||||||||||||||||||||
Investments | 16,602 | 3,338 | 316 | 31 | 3,685 | 20,287 | ||||||||||||||||||||||||||||||
Multifamily | 2,378 | (932 | ) | — | 9 | (923 | ) | 1,455 | ||||||||||||||||||||||||||||
All Other | 23,892 | — | — | 121 | 121 | 24,013 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | 48,668 | $ | 2,406 | $ | 316 | $ | 210 | $ | 2,932 | $ | 51,600 | ||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | (164 | ) | $ | — | $ | — | $ | (63 | ) | $ | (63 | ) | $ | (227 | ) | ||||||||||||||||||||
Investments | 8,212 | 2,821 | 414 | (50 | ) | 3,185 | 11,397 | |||||||||||||||||||||||||||||
Multifamily | 2,146 | 1,948 | — | (13 | ) | 1,935 | 4,081 | |||||||||||||||||||||||||||||
All Other | 788 | — | — | — | — | 788 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | 10,982 | $ | 4,769 | $ | 414 | $ | (126 | ) | $ | 5,057 | $ | 16,039 | |||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | (10,000 | ) | $ | — | $ | — | $ | 30 | $ | 30 | $ | (9,970 | ) | ||||||||||||||||||||||
Investments | 3,366 | 2,573 | 508 | 26 | 3,107 | 6,473 | ||||||||||||||||||||||||||||||
Multifamily | 1,319 | 892 | 1 | 6 | 899 | 2,218 | ||||||||||||||||||||||||||||||
All Other | 49 | — | — | — | — | 49 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | (5,266 | ) | $ | 3,465 | $ | 509 | $ | 62 | $ | 4,036 | $ | (1,230 | ) | ||||||||||||||||||||||
Financial_Guarantees
Financial Guarantees | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Guarantees [Abstract] | ' | |||||||||||||||||||
FINANCIAL GUARANTEES | ' | |||||||||||||||||||
NOTE 14: FINANCIAL GUARANTEES | ||||||||||||||||||||
We provide financial guarantees to securitization trusts that issue mortgage-related securities backed by single-family mortgage loans, which we consolidate. During the years ended December 31, 2013 and 2012, we issued approximately $425.6 billion and $439.3 billion, respectively, in UPB of Freddie Mac mortgage-related securities backed by single-family mortgage loans (excluding those backed by HFA bonds). For guarantees to consolidated securitization trusts, our exposure to these guarantees is generally the UPB of the loans recorded on our consolidated balance sheets. | ||||||||||||||||||||
We also provide guarantees to non-consolidated securitization trusts that issue mortgage-related securities as well as in other guarantee commitments. If we are exposed to incremental credit risk by providing these guarantees, we charge a management and guarantee fee and recognize a guarantee asset, guarantee obligation, and a reserve for guarantee losses, as necessary. | ||||||||||||||||||||
The table below presents our maximum potential exposure, our recognized liability, and the maximum remaining term of our financial guarantees that are not consolidated on our balance sheets. | ||||||||||||||||||||
Table 14.1 — Financial Guarantees | ||||||||||||||||||||
December 31, 2013 | 31-Dec-12 | |||||||||||||||||||
Maximum | Recognized | Maximum | Maximum | Recognized | Maximum | |||||||||||||||
Exposure(1) | Liability(2) | Remaining | Exposure(1) | Liability(2) | Remaining | |||||||||||||||
Term | Term | |||||||||||||||||||
(dollars in millions, terms in years) | ||||||||||||||||||||
Non-consolidated Freddie Mac securities(3) | $ | 71,809 | $ | 731 | 40 | $ | 50,715 | $ | 430 | 41 | ||||||||||
Other guarantee commitments | 29,160 | 791 | 36 | 23,455 | 575 | 37 | ||||||||||||||
Derivative instruments(4) | 9,856 | 239 | 32 | 10,306 | 789 | 33 | ||||||||||||||
Servicing-related premium guarantees | 281 | — | 5 | 210 | — | 5 | ||||||||||||||
-1 | Maximum exposure represents the contractual amounts that could be lost under the non-consolidated guarantees if counterparties or borrowers defaulted, without consideration of possible recoveries under credit enhancement arrangements, such as recourse provisions, third-party insurance contracts, or from collateral held or pledged. The maximum exposure disclosed above is not representative of the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation. The maximum exposure for our liquidity guarantees is not mutually exclusive of our default guarantees on the same securities; therefore, these amounts are included within the maximum exposure of non-consolidated Freddie Mac securities and other guarantee commitments. | |||||||||||||||||||
-2 | For non-consolidated Freddie Mac securities and other guarantee commitments, this amount represents the guarantee obligation on our consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $111 million and $183 million as of December 31, 2013 and 2012, respectively, and is included within other liabilities on our consolidated balance sheets. | |||||||||||||||||||
-3 | In addition to our guarantee of principal and interest, we also provide liquidity guarantees for certain multifamily housing revenue bonds included in this category. However, no advances under these liquidity guarantees were outstanding at December 31, 2013 or 2012. | |||||||||||||||||||
-4 | See “NOTE 9: DERIVATIVES” for information about these derivative guarantees. | |||||||||||||||||||
Non-Consolidated Freddie Mac Securities | ||||||||||||||||||||
We issue three types of mortgage-related securities: (a) PCs; (b) REMICs and Other Structured Securities; and (c) Other Guarantee Transactions. We guarantee the payment of principal and interest to the trusts which issue these securities, which are backed by pools of mortgage-related assets, irrespective of the cash flows received from the borrowers. | ||||||||||||||||||||
Our single-family securities issued in resecuritizations of our PCs and other previously issued REMICs and Other Structured Securities are not consolidated unless we hold substantially all of the beneficial interests of the trust and are therefore considered the primary beneficiary of the trust. Our resecuritizations of PCs and other previously issued REMICs and Structured Securities do not give rise to any additional exposure to credit loss as we already consolidate the underlying collateral. The securities issued in these resecuritizations consist of single-class and multiclass securities backed by PCs, REMICs, interest-only strips, and principal-only strips. Since these resecuritizations do not increase our credit-risk, no guarantee asset or guarantee obligation is recognized for these transactions and they are excluded from the table above. | ||||||||||||||||||||
During 2013 we issued approximately $23.7 billion, compared to $17.5 billion in 2012, in UPB of Other Guarantee Transactions, all of which were backed by multifamily mortgage loans, for which a guarantee asset and guarantee obligation were recognized. | ||||||||||||||||||||
For many of the loans underlying our non-consolidated guarantees, there are credit protections from third parties, including subordination, covering a portion of our exposure. See “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES” for information about credit protections on loans we guarantee. | ||||||||||||||||||||
Other Guarantee Commitments | ||||||||||||||||||||
We provide long-term standby commitments to certain of our customers, which obligate us to purchase seriously delinquent loans that are covered by those agreements. During 2013 and 2012, we issued and guaranteed $9.9 billion and $6.8 billion, respectively, in UPB of long-term standby commitments. These long-term standby commitments totaled $19.2 billion and $12.4 billion of UPB at December 31, 2013 and 2012, respectively. We also had other guarantee commitments on multifamily housing revenue bonds that were issued by HFAs of $9.1 billion and $9.4 billion in UPB at December 31, 2013 and 2012, respectively. In addition, as of December 31, 2013 and 2012, we had issued guarantees under the TCLFP on securities backed by HFA bonds with UPB of $0.9 billion and $1.7 billion, respectively. | ||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||
Derivative instruments include written options, written swaptions, interest-rate swap guarantees, and short-term default guarantee commitments accounted for as credit derivatives. See “NOTE 9: DERIVATIVES” for further discussion of these derivative guarantees. | ||||||||||||||||||||
We guarantee the performance of interest-rate swap contracts in two circumstances. First, in connection with certain other guarantee commitments, we guarantee that a multifamily borrower will perform under an interest-rate swap contract linked to the borrower’s ARM. And second, in connection with our issuance of certain REMICs and Other Structured Securities, which are backed by tax-exempt bonds, we guarantee that the sponsor of the transaction will perform under the interest-rate swap contract linked to the senior variable-rate certificates that we issued. | ||||||||||||||||||||
We also have issued certain REMICs and Other Structured Securities with stated final maturities that are shorter than the stated maturity of the underlying mortgage loans. If the underlying mortgage loans to these securities have not been purchased by a third party or fully matured as of the stated final maturity date of such securities, we will sponsor an auction of the underlying assets. To the extent that purchase or auction proceeds are insufficient to cover unpaid principal amounts due to investors in such REMICs and Other Structured Securities, we are obligated to fund such principal. Our maximum exposure on these derivative guarantees represents the outstanding UPB of the REMICs and Other Structured Securities subject to stated final maturities. | ||||||||||||||||||||
Other Indemnifications | ||||||||||||||||||||
In connection with certain business transactions, we may provide indemnification to counterparties for claims arising out of breaches of certain obligations (e.g., those arising from representations and warranties) in contracts entered into in the normal course of business. Our assessment is that the risk of any material loss from such a claim for indemnification is remote and there are no significant probable and estimable losses associated with these contracts. In addition, we provided indemnification for litigation defense costs to certain former officers who are subject to ongoing litigation. See “NOTE 17: LEGAL CONTINGENCIES” for further information on ongoing litigation. The recognized liabilities on our consolidated balance sheets related to indemnifications were not significant at December 31, 2013 and 2012. | ||||||||||||||||||||
As part of the guarantee arrangements pertaining to multifamily housing revenue bonds, we provided commitments to advance funds, commonly referred to as “liquidity guarantees.” These guarantees require us to advance funds to enable others to repurchase any tendered tax-exempt and related taxable bonds that are unable to be remarketed. Any such advances are treated as loans and are secured by a pledge to us of the repurchased securities until the securities are remarketed. We hold cash and cash equivalents on our consolidated balance sheets for the amount of these commitments. No advances under these liquidity guarantees were outstanding at December 31, 2013 and 2012. |
Concentration_of_Credit_and_Ot
Concentration of Credit and Other Risks | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | |||||||||||||||||
CONCENTRATION OF CREDIT AND OTHER RISKS | ' | |||||||||||||||||
NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS | ||||||||||||||||||
Single-Family Credit Guarantee Portfolio | ||||||||||||||||||
Our business activity is to participate in and support the residential mortgage market in the United States, which we pursue by both issuing guaranteed mortgage securities and investing in mortgage loans and mortgage-related securities. | ||||||||||||||||||
The table below summarizes the concentration by year of origination and geographical area of the approximately $1.7 trillion and $1.6 trillion UPB of our single-family credit guarantee portfolio at December 31, 2013 and 2012, respectively. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES”, "NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES”, and “NOTE 7: INVESTMENTS IN SECURITIES” for more information about credit risk associated with loans and mortgage-related securities that we hold. | ||||||||||||||||||
Table 15.1 — Concentration of Credit Risk — Single-Family Credit Guarantee Portfolio | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | Percent of Credit Losses(1) | ||||||||||||||||
Year Ended | ||||||||||||||||||
Percentage of | Serious | Percentage of | Serious | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Portfolio(2) | Delinquency | Portfolio(2) | Delinquency | |||||||||||||||
Rate | Rate | |||||||||||||||||
Year of Origination | ||||||||||||||||||
2013 | 16 | % | — | % | N/A | N/A | <1 | % | N/A | |||||||||
2012 | 16 | — | 14 | % | — | % | <1 | <1 | % | |||||||||
2011 | 8 | 0.2 | 10 | 0.1 | <1 | <1 | ||||||||||||
2010 | 7 | 0.4 | 10 | 0.3 | 1 | 1 | ||||||||||||
2009 | 7 | 0.9 | 11 | 0.7 | 2 | 1 | ||||||||||||
Subtotal - New single-family book | 54 | 0.2 | 45 | 0.3 | 3 | 2 | ||||||||||||
HARP and other relief refinance loans(3) | 21 | 0.6 | 18 | 0.7 | 7 | 2 | ||||||||||||
2005 to 2008 Legacy single-family book | 16 | 8.8 | 24 | 9.6 | 81 | 87 | ||||||||||||
Pre-2005 Legacy single-family book | 9 | 3.2 | 13 | 3.2 | 9 | 9 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
Region(4) | ||||||||||||||||||
West | 28 | % | 1.7 | % | 28 | % | 2.8 | % | 24 | % | 44 | % | ||||||
Northeast | 26 | 3.2 | 25 | 3.8 | 15 | 8 | ||||||||||||
North Central | 18 | 1.8 | 18 | 2.5 | 23 | 20 | ||||||||||||
Southeast | 16 | 3.4 | 17 | 5 | 35 | 24 | ||||||||||||
Southwest | 12 | 1.4 | 12 | 1.7 | 3 | 4 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
State | ||||||||||||||||||
Arizona, California, Florida, and Nevada(5) | 26 | % | 3 | % | 25 | % | 5 | % | 47 | % | 54 | % | ||||||
Illinois, Michigan, and Ohio(6) | 11 | 2.1 | 11 | 3 | 19 | 15 | ||||||||||||
New York and New Jersey(7) | 9 | 5.1 | 9 | 5.5 | 3 | 2 | ||||||||||||
All other | 54 | 1.9 | 55 | 2.4 | 31 | 29 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
-1 | Credit losses consist of the aggregate amount of charge-offs, net of recoveries, and REO operations expense in each of the respective periods and exclude foregone interest on non-performing loans and other market-based losses recognized on our consolidated statements of comprehensive income. | |||||||||||||||||
-2 | Based on the UPB of our single-family credit guarantee portfolio, which includes unsecuritized single-family mortgage loans held by us on our consolidated balance sheets and those underlying Freddie Mac mortgage-related securities, or covered by our other guarantee commitments. | |||||||||||||||||
-3 | HARP and other relief refinance loans are presented separately rather than in the year that the refinancing occurred (from 2009 to 2013). All other refinance loans are presented in the year that the refinancing occurred. Prior period information has been revised to conform with the current period presentation. | |||||||||||||||||
-4 | Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY). | |||||||||||||||||
-5 | Represents the four states that had the largest cumulative declines in home prices during the housing crisis that began in 2006, as measured using Freddie Mac’s home price index. | |||||||||||||||||
-6 | Represents selected states in the North Central region that have experienced adverse economic conditions since 2006. | |||||||||||||||||
-7 | Represents two states with a judicial foreclosure process in which there are a significant number of seriously delinquent loans within our single-family credit guarantee portfolio. | |||||||||||||||||
Credit Performance of Certain Higher Risk Single-Family Loan Categories | ||||||||||||||||||
Participants in the mortgage market often characterize single-family loans based upon their overall credit quality at the time of origination, generally considering them to be prime or subprime. Many mortgage market participants classify single-family loans with credit characteristics that range between their prime and subprime categories as Alt-A because these loans have a combination of characteristics of each category, may be underwritten with lower or alternative income or asset documentation requirements compared to a full documentation mortgage loan, or both. However, there is no universally accepted definition of subprime or Alt-A. Although we discontinued new purchases of mortgage loans with lower documentation standards for assets or income beginning March 1, 2009, we continued to purchase certain amounts of these mortgages in cases where the loan was either: (a) purchased pursuant to a previously issued other guarantee commitment; (b) part of our relief refinance mortgage initiative; or (c) in another refinance mortgage initiative and the pre-existing mortgage (including Alt-A loans) was originated under less than full documentation standards. In the event we purchase a refinance mortgage and the original loan had been previously identified as Alt-A, such refinance loan may no longer be categorized or reported as Alt-A in the table below because the new refinance loan replacing the original loan would not be identified by the seller/servicer as an Alt-A loan. As a result, our reported Alt-A balances may be lower than would otherwise be the case had such refinancing not occurred. | ||||||||||||||||||
Although we do not categorize single-family mortgage loans we purchase or guarantee as prime or subprime, we recognize that there are a number of mortgage loan types with certain characteristics that indicate a higher degree of credit risk. For example, a borrower’s credit score is a useful measure for assessing the credit quality of the borrower. Statistically, borrowers with higher credit scores are more likely to repay or have the ability to refinance than those with lower scores. | ||||||||||||||||||
Presented below is a summary of the serious delinquency rates of certain higher-risk categories (based on characteristics of the loan at origination) of single-family loans in our single-family credit guarantee portfolio. The table includes a presentation of each higher-risk category in isolation. A single loan may fall within more than one category (for example, an interest-only loan may also have an original LTV ratio greater than 90%). Loans with a combination of these attributes will have an even higher risk of delinquency than those with an individual attribute. | ||||||||||||||||||
Table 15.2 — Certain Higher-Risk Categories in the Single-Family Credit Guarantee Portfolio(1) | ||||||||||||||||||
Percentage of Portfolio(1) | Serious Delinquency Rate | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||
Interest-only | 2 | % | 3 | % | 12.5 | % | 16.3 | % | ||||||||||
Option ARM(2) | <1 | <1 | 12.3 | 16.3 | ||||||||||||||
Alt-A(3) | 3 | 5 | 10.1 | 11.4 | ||||||||||||||
Original LTV ratio greater than 90%(4) | 16 | 13 | 3.2 | 4.8 | ||||||||||||||
Lower FICO scores at origination (less than 620) | 3 | 3 | 10 | 12.2 | ||||||||||||||
-1 | Based on UPB. | |||||||||||||||||
-2 | For reporting purposes, loans within the option ARM category continue to be reported in that category following modification, even though the modified loan no longer provides for optional payment provisions. | |||||||||||||||||
-3 | Alt-A loans may not include those loans that were previously classified as Alt-A and that have been refinanced as either a relief refinance mortgage or in another refinance mortgage initiative. | |||||||||||||||||
-4 | Includes HARP loans, which we are required to purchase as part of our participation in the MHA Program. | |||||||||||||||||
The percentage of borrowers in our single-family credit guarantee portfolio, based on UPB, with estimated current LTV ratios greater than 100% was 10% and 15% at December 31, 2013 and 2012, respectively. An increase in the estimated current LTV ratio of a loan indicates that the borrower’s equity in the home has declined, and can negatively affect the borrower’s ability to refinance (outside of HARP) or to sell the property for an amount at or above the balance of the outstanding mortgage loan. The serious delinquency rate for single-family loans with estimated current LTV ratios greater than 100% was 9.9% and 12.7% as of December 31, 2013 and 2012, respectively. Loans in our 2005-2008 Legacy single-family book have been more affected by declines in home prices during the housing crisis that began in 2006 than loans originated in other years. Our 2005-2008 Legacy single-family book comprised approximately 16% of our single-family credit guarantee portfolio, based on UPB at December 31, 2013, and these loans accounted for approximately 81% and 87% of our credit losses during 2013 and 2012, respectively. | ||||||||||||||||||
We categorize our investments in non-agency mortgage-related securities as subprime, option ARM, or Alt-A if the securities were identified as such based on information provided to us when we entered into these transactions. We have not identified option ARM, CMBS, obligations of states and political subdivisions, and manufactured housing securities as either subprime or Alt-A securities. See “NOTE 7: INVESTMENTS IN SECURITIES” for further information on these categories and other concentrations in our investments in securities. | ||||||||||||||||||
Multifamily Mortgage Portfolio | ||||||||||||||||||
The table below summarizes the concentration of multifamily mortgages in our multifamily mortgage portfolio by certain attributes. Information presented for multifamily mortgage loans includes certain categories based on loan or borrower characteristics present at origination. The table includes a presentation of each category in isolation. A single loan may fall within more than one category (for example, a loan with an original LTV ratio greater than 80% may also have an original DSCR below 1.10). | ||||||||||||||||||
Table 15.3 — Concentration of Credit Risk — Multifamily Mortgage Portfolio | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
UPB | Delinquency | UPB | Delinquency | |||||||||||||||
Rate(1) | Rate(1) | |||||||||||||||||
(dollars in billions) | ||||||||||||||||||
State(2) | ||||||||||||||||||
California | $ | 22.4 | 0.03 | % | $ | 21.1 | 0.12 | % | ||||||||||
Texas | 16.7 | 0.02 | 15.9 | 0.13 | ||||||||||||||
New York | 11.4 | 0.12 | 10.7 | 0.09 | ||||||||||||||
Florida | 9.3 | 0.28 | 8.4 | 0.12 | ||||||||||||||
Virginia | 7 | 0.37 | 6.6 | — | ||||||||||||||
Maryland | 6.7 | — | 6.9 | — | ||||||||||||||
All other states | 59.3 | 0.08 | 57.8 | 0.32 | ||||||||||||||
Total | $ | 132.8 | 0.09 | % | $ | 127.4 | 0.19 | % | ||||||||||
Region(3) | ||||||||||||||||||
Northeast | $ | 37.5 | 0.1 | % | $ | 36.1 | 0.04 | % | ||||||||||
West | 33.8 | 0.07 | 31.8 | 0.09 | ||||||||||||||
Southwest | 26.2 | 0.05 | 25.4 | 0.22 | ||||||||||||||
Southeast | 24.1 | 0.16 | 23.4 | 0.54 | ||||||||||||||
North Central | 11.2 | 0.07 | 10.7 | 0.19 | ||||||||||||||
Total | $ | 132.8 | 0.09 | % | $ | 127.4 | 0.19 | % | ||||||||||
Other Categories(4) | ||||||||||||||||||
Original LTV ratio greater than 80% | $ | 5.6 | 0.19 | % | $ | 5.8 | 2.31 | % | ||||||||||
Original DSCR below 1.10 | 2.2 | — | 2.3 | 2.97 | ||||||||||||||
-1 | Based on the UPB of multifamily mortgages two monthly payments or more delinquent or in foreclosure. | |||||||||||||||||
-2 | Represents the six states with the highest UPB at December 31, 2013. | |||||||||||||||||
-3 | See endnote (4) to “Table 15.1 — Concentration of Credit Risk — Single-Family Credit Guarantee Portfolio” for a description of these regions. | |||||||||||||||||
-4 | These categories are not mutually exclusive and a loan in one category may also be included within another category. | |||||||||||||||||
One indicator of risk for mortgage loans in our multifamily mortgage portfolio is the amount of a borrower’s equity in the underlying property. A borrower’s equity in a property decreases as the LTV ratio increases. Higher LTV ratios negatively affect a borrower’s ability to refinance or sell a property for an amount at or above the balance of the outstanding mortgage. The DSCR is another indicator of future credit performance. The DSCR estimates a multifamily borrower’s ability to service its mortgage obligation using the secured property’s cash flow, after deducting non-mortgage expenses from income. The higher the DSCR, the more likely it is that a multifamily borrower will be able to continue servicing its mortgage obligation. | ||||||||||||||||||
We estimate that the percentage of loans in our multifamily mortgage portfolio with a current LTV ratio of greater than 100% was approximately 2% and 3% at December 31, 2013 and 2012, respectively, and our estimate of the current average DSCR for these loans was 0.95 and 1.0, respectively. We estimate that the percentage of loans in our multifamily mortgage portfolio with a current DSCR less than 1.0 was 3% at both December 31, 2013 and 2012 and the average current LTV ratio of these loans was 95% and 111%, respectively. Our estimates of current DSCRs are based on the latest available income information for these properties and our assessments of market conditions. Our estimates of the current LTV ratios are based on values we receive from a third-party service provider as well as our internal estimates of property value, for which we may use changes in tax assessments, market vacancy rates, rent growth and comparable property sales in local areas as well as third-party appraisals for a portion of the portfolio. We periodically perform our own valuations or obtain third-party appraisals in cases where a significant deterioration in a borrower’s financial condition has occurred, the borrower has applied for refinancing, or in certain other circumstances where we deem it appropriate to reassess the property value. Although we use the most recently available financial results of our multifamily borrowers to estimate a property’s value, there may be a significant lag in reporting, which could be six months or more, as they complete their financial results in the normal course of business. Our internal estimates of property valuation are derived using techniques that include income capitalization, discounted cash flows, comparable sales, or replacement costs. | ||||||||||||||||||
Seller/Servicers | ||||||||||||||||||
We acquire a significant portion of our single-family mortgage purchase volume from several large seller/servicers and we are exposed to the risk that we could lose purchase volume to the extent certain arrangements with these lenders are terminated. Our top 10 single-family seller/servicers provided approximately 64% of our single-family purchase volume during 2013. Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A. accounted for 17% and 13%, respectively, of our single-family mortgage purchase volume and were the only single-family seller/servicers that comprised 10% or more of our purchase volume during 2013. | ||||||||||||||||||
We are exposed to institutional credit risk arising from the potential insolvency or non-performance by our seller/servicers of their obligations to repurchase mortgages or (at our option) indemnify us in the event of: (a) breaches of the representations and warranties they made when they sold the mortgages to us; or (b) failure to comply with our servicing requirements. Our contracts require that a seller/servicer repurchase a mortgage after we issue a repurchase request, unless the seller/servicer avails itself of an appeals process provided for in our contracts, in which case the deadline for repurchase is extended until we decide on the appeal. As of December 31, 2013 and 2012, the UPB of loans subject to our repurchase requests (seller and servicer related) issued to our single-family seller/servicers was approximately $2.2 billion and $3.0 billion, of which approximately 27% and 41%, respectively, were outstanding for four months or more since issuance as measured by the related UPB of the loans (these figures include repurchase requests for which appeals were pending). As of December 31, 2013, two of our largest seller/servicers (Bank of America, N.A. and JPMorgan Chase Bank, N.A.) had aggregate repurchase requests outstanding, based on UPB, of $0.9 billion, and approximately 49% were outstanding for four months or more since issuance. During 2013 and 2012, we recovered amounts that covered losses with respect to $5.6 billion and $3.5 billion, respectively, in UPB of loans subject to our repurchase requests. | ||||||||||||||||||
During 2013, we entered into settlement agreements with a number of counterparties to release specified loans from certain seller repurchase obligations in exchange for one-time cash payments, which totaled approximately $2.4 billion in aggregate. These agreements related to loans with $280.4 billion in aggregate principal amount (as of the dates of the respective agreements) and we recognized a benefit for credit losses of $1.7 billion included within our consolidated statement of operations during 2013. The counterparties to these agreements included GMAC Mortgage LLC, Wells Fargo Bank, N.A., CitiMortgage, Inc., Citibank, N.A., SunTrust Mortgage, Inc., JPMorgan Chase Bank, N.A., Bank of America, N.A., FifthThird Bank, N.A., PNC Bank, N.A., U.S. Bancorp, and Flagstar Bank, FSB. | ||||||||||||||||||
As of December 31, 2013, single-family loans with aggregate UPB of approximately $389.6 billion (representing 24% of our single-family credit guarantee portfolio) had been released from repurchase obligations primarily because either: (a) the mortgages are subject to negotiated agreements; or (b) the seller/servicers were no longer in business and their obligations have been discharged or a settlement amount was determined in bankruptcy or receivership proceedings. | ||||||||||||||||||
At the direction of FHFA, Freddie Mac and Fannie Mae have launched a new representation and warranty framework for conventional loans purchased by the GSEs on or after January 1, 2013. The objective of the new framework is to clarify lenders’ repurchase exposures and liability on future sales of mortgage loans to Freddie Mac and Fannie Mae. The new framework does not affect seller/servicers’ obligations under their contracts with us with respect to loans sold to us prior to January 1, 2013. The new framework also does not affect their obligation to service these loans in accordance with our servicing standards. Under this new framework, lenders will be relieved of certain repurchase obligations for loans that meet specific payment requirements. This includes, subject to certain exclusions, loans with 36 months (12 months for relief refinance mortgages) of consecutive, on-time payments after we purchase them. | ||||||||||||||||||
As of December 31, 2013, approximately 24% in UPB of loans in our single-family credit guarantee portfolio were purchased during 2013 and subject to this representation and warranty framework. | ||||||||||||||||||
The ultimate amounts of recovery payments we receive from seller/servicers related to their repurchase obligations may be significantly less than the amount of our estimates of potential exposure to losses. Our estimate of probable incurred losses for exposure to seller/servicers for their repurchase obligations is considered in our allowance for loan losses. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Allowance for Loan Losses and Reserve for Guarantee Losses” for further information. We believe we have appropriately provided for these exposures, based upon our estimates of incurred losses, in our loan loss reserves; however, our actual losses may exceed our estimates. | ||||||||||||||||||
We are also exposed to the risk that seller/servicers might fail to service mortgages in accordance with our contractual requirements, resulting in increased credit losses. For example, our seller/servicers have an active role in our loss mitigation efforts, including under the servicing alignment initiative and the MHA Program, and therefore, we have exposure to them to the extent a decline in their performance results in a failure to realize the anticipated benefits of our loss mitigation plans. Since we do not have our own servicing operation, if our servicers lack appropriate process controls, experience a failure in their controls, or experience an operating disruption in their ability to service mortgage loans, our business and financial results could be adversely affected. | ||||||||||||||||||
A significant portion of our single-family mortgage loans are serviced by several large seller/servicers. Our top two single-family loan servicers, Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A., serviced approximately 24% and 13%, respectively, of our single-family mortgage loans, as of December 31, 2013 and together serviced approximately 37% of our single-family mortgage loans. | ||||||||||||||||||
As of December 31, 2013 our top three multifamily servicers, Berkadia Commercial Mortgage LLC, Wells Fargo Bank, N.A., and CBRE Capital Markets, Inc., each serviced more than 10% of our multifamily mortgage portfolio, excluding K Certificates, and together serviced approximately 37% of this portfolio. | ||||||||||||||||||
In our multifamily business, we are exposed to the risk that multifamily seller/servicers could come under financial pressure, which could potentially cause degradation in the quality of the servicing they provide us, including their monitoring of each property’s financial performance and physical condition. This could also, in certain cases, reduce the likelihood that we could recover losses through lender repurchases, recourse agreements, or other credit enhancements, where applicable. This risk primarily relates to multifamily loans that we hold on our consolidated balance sheets where we retain all of the related credit risk. We monitor the status of all our multifamily seller/servicers in accordance with our counterparty credit risk management framework. | ||||||||||||||||||
Mortgage Insurers | ||||||||||||||||||
We have institutional credit risk relating to the potential insolvency of, or non-performance by, mortgage insurers that insure single-family mortgages we purchase or guarantee. We evaluate the recovery and collectability from insurance policies for mortgage loans that we hold for investment as well as loans underlying our non-consolidated Freddie Mac mortgage-related securities or covered by other guarantee commitments as part of the estimate of our loan loss reserves. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Allowance for Loan Losses and Reserve for Guarantee Losses” for additional information. As of December 31, 2013, mortgage insurers provided coverage with maximum loss limits of $52.0 billion, for $209.9 billion of UPB, in connection with our single-family credit guarantee portfolio. These amounts are based on gross coverage without regard to netting of coverage that may exist to the extent an affected mortgage is covered under both primary and pool insurance. Our top four mortgage insurer counterparties, Mortgage Guaranty Insurance Corporation (MGIC), Radian Guaranty Inc. (Radian), United Guaranty Residential Insurance Company, and Genworth Mortgage Insurance Corporation each accounted for more than 10% and collectively represented approximately 78% of our overall mortgage insurance coverage at December 31, 2013. Three of our mortgage insurance counterparties are no longer rated by either S&P or Moody’s because they are under court-ordered or state supervision. Of our four largest counterparties, three are rated B, and one is rated BBB+, as of December 31, 2013, based on the lower of the S&P or Moody’s rating scales and stated in terms of the S&P equivalent. | ||||||||||||||||||
We and MGIC were involved in litigation concerning our current and future claims under certain of MGIC’s pool insurance policies. In the litigation, we contended that the policies had approximately $0.5 billion more in coverage than MGIC contended was provided for under the policies. In December 2012, we entered into a settlement agreement with MGIC concerning this dispute. Under the terms of the settlement, MGIC paid us $100 million in December 2012, and is paying us an additional $167.5 million in monthly installments over four years beginning on January 2, 2013. | ||||||||||||||||||
We received proceeds of $2.0 billion during both 2013 and 2012 from our primary and pool mortgage insurance policies for recovery of losses on our single-family loans. We had outstanding receivables from mortgage insurers of $0.7 billion and $1.3 billion (excluding deferred payment obligations associated with unpaid claim amounts) as of December 31, 2013 and 2012, respectively. The balance of our outstanding accounts receivable from mortgage insurers, net of associated reserves, was approximately $0.5 billion and $0.8 billion at December 31, 2013 and 2012, respectively. | ||||||||||||||||||
In August 2013, we entered into an agreement with Radian involving approximately 26,000 single-family loans held by us and insured by Radian that were in default as of December 31, 2011. The agreement generally resolves outstanding and future primary mortgage insurance claims by us against Radian with respect to these loans. In connection with this agreement, Radian paid us $255 million and also deposited $205 million in an escrow account in which we hold a secured interest. Subject to terms and conditions of the agreement, the funds in the escrow account will be returned to Radian to the extent of Radian's final rescission, cancellation, curtailment or denial of filed claims. Freddie Mac will receive any funds in the account that are not returned to Radian. The agreement does not affect our right to pursue repurchase remedies against seller/servicers related to Radian's insurance rescissions and claim denials on these loans. | ||||||||||||||||||
In August 2011, we suspended Republic Mortgage Insurance Corporation (or RMIC) and its affiliates, and PMI Mortgage Insurance Co. (or PMI) and its affiliates as approved mortgage insurers for Freddie Mac loans, making loans insured by them ineligible for sale to Freddie Mac (except relief refinance loans with pre-existing insurance). Both RMIC and PMI ceased writing new business during the third quarter of 2011. RMIC instituted a partial claim payment plan in January 2012, under which claim payments were made 50% in cash and 50% in deferred payment obligations for an initial period not to exceed one year. In November 2012, RMIC announced that its state regulator approved its corrective plan, which provided for the run-off of its existing business. Under the corrective plan, RMIC is paying claims, settled on or after January 19, 2012, 60% in cash and a deferred payment obligation for the remaining 40% which will be retained in claim reserves until a future pay-out date. PMI instituted a partial claim payment plan in October 2011, under which claim payments were made 50% in cash, with the remaining amount deferred as a policyholder claim. In April 2013, PMI began paying valid claims 55% in cash and 45% in deferred payment obligations and made a one-time cash payment to us for claims that were previously settled at 50% in cash. | ||||||||||||||||||
In June 2009, Triad began paying valid claims 60% in cash and 40% in deferred payment obligations under order of its state regulator. In October 2013, Triad’s plan of rehabilitation was approved. In December 2013, under this plan, Triad began paying valid claims 75% in cash and a one-time cash payment was made to us for claims previously settled for 60% in cash. | ||||||||||||||||||
It is not clear how the regulators of PMI, RMIC, or Triad will administer the balance of their respective deferred payment plans, nor when or if those obligations will be paid. | ||||||||||||||||||
Bond Insurers | ||||||||||||||||||
Bond insurance, which may be either primary or secondary policies, is a credit enhancement covering some of the non-agency mortgage-related securities we hold. Primary policies are acquired by the securitization trust issuing the securities we purchase, while secondary policies are acquired by us. At December 31, 2013, the maximum principal exposure to credit losses related to such policies was $7.8 billion. At December 31, 2013, our top four bond insurers, Ambac Assurance Corporation (or Ambac), Financial Guaranty Insurance Company (or FGIC), National Public Finance Guarantee Corp., and MBIA Insurance Corp., each accounted for more than 10% of our overall bond insurance coverage and collectively represented approximately 90% of our total coverage. | ||||||||||||||||||
In June 2012, a rehabilitation order was signed granting the Superintendent of Financial Services of the State of New York the authority to take possession and/or control of FGIC’s property and assets and to conduct FGIC’s business. In September 2012, the Superintendent of Financial Services filed a proposed plan of rehabilitation for FGIC. Certain trustees objected to the proposed plan, and a revised plan was filed in December 2012. In June 2013, FGIC’s plan of rehabilitation was approved under which permitted claims will be paid 17% in cash and the remainder in deferred payment obligations. FGIC has begun payment of initial permitted claims and settlement of deferred obligations in accordance with the plan. | ||||||||||||||||||
In the third quarter of 2012, Ambac, which had not paid claims since March 2010, began making partial cash payments of the permitted amount of each policy claim. In 2013, Ambac also began making supplemental payments, equal to all or a portion of the permitted policy claim, with respect to certain specified securities. In March 2010, Ambac established a segregated account for certain Ambac-insured securities, including some of those held by Freddie Mac. Upon the request of the Wisconsin Office of the Commissioner of Insurance, the Wisconsin circuit court put the segregated account into rehabilitation (i.e., a state insolvency proceeding). The Office of the Commissioner of Insurance subsequently filed a plan of rehabilitation with the court. The plan was approved by the court in January 2011, but has not yet been implemented due to various disputes among interested parties. In November 2010, Ambac Financial Group Inc., the parent company of Ambac, filed for bankruptcy. | ||||||||||||||||||
We expect to receive substantially less than full payment of our claims from Ambac and FGIC as these companies are either insolvent or in rehabilitation. We believe that we will also likely receive substantially less than full payment of our claims from some of our other bond insurers, because we believe they also lack sufficient ability to fully meet all of their expected lifetime claims-paying obligations to us as such claims emerge. We evaluate the expected recovery from primary bond insurance policies as part of our impairment analysis for our investments in securities. See “NOTE 7: INVESTMENTS IN SECURITIES” for further information on our evaluation of impairment on securities covered by bond insurance. | ||||||||||||||||||
Cash and Other Investments Counterparties | ||||||||||||||||||
We are exposed to institutional credit risk arising from the potential insolvency or non-performance of counterparties of non-mortgage-related investment agreements and cash equivalent transactions, including those entered into on behalf of our securitization trusts. Our policies require that the issuer be rated as investment grade at the time the financial instrument is purchased. We base the permitted term and dollar limits for each of these transactions on the counterparty's financial strength in order to further mitigate our risk. | ||||||||||||||||||
Our cash and other investment counterparties are primarily major institutions, Treasury, and the Federal Reserve Bank of New York. As of December 31, 2013 and 2012, including amounts related to our consolidated VIEs, there were $85.9 billion and $60.7 billion, respectively, of: (a) cash and securities purchased under agreements to resell invested with institutional counterparties; (b) Treasury securities classified as cash equivalents; or (c) cash deposited with the Federal Reserve Bank of New York. As of December 31, 2013 these included: | ||||||||||||||||||
• | $50.3 billion of securities purchased under agreements to resell with 11 counterparties that had short-term S&P ratings of A-1 or above; | |||||||||||||||||
• | $6.1 billion of securities purchased under agreements to resell with one counterparty that had a short-term S&P rating of A-2; | |||||||||||||||||
• | $6.0 billion of securities purchased under agreements to resell with one counterparty that does not have a short-term S&P or other third-party credit rating, but was evaluated under the company's counterparty credit risk system and was determined to be eligible for this transaction (by providing more than 100% in approved collateral); | |||||||||||||||||
• | $3.9 billion of cash equivalents invested in Treasury securities; and | |||||||||||||||||
• | $19.4 billion of cash deposited with the Federal Reserve Bank of New York (as a non-interest-bearing deposit). | |||||||||||||||||
In February 2014, we reached a settlement with Lehman Brothers Holdings Inc. pursuant to which we will receive $767 million to resolve our claims related to Lehman’s bankruptcy. Consequently, we adjusted our December 31, 2013 estimate of the expected recoveries of our receivable by $350 million, which reduced other expenses by the same amount. For more information, see “NOTE 17: LEGAL CONTINGENCIES." | ||||||||||||||||||
Non-Agency Mortgage-Related Security Issuers | ||||||||||||||||||
We are engaged in various loss mitigation efforts concerning certain investments in non-agency mortgage-related securities, including the activities discussed below. The effectiveness of these various loss mitigation efforts is uncertain, in part because our rights as an investor are limited, and any potential recoveries may take significant time to realize. | ||||||||||||||||||
In 2011, FHFA, as Conservator for Freddie Mac and Fannie Mae, filed lawsuits against 18 corporate families of financial institutions and related defendants seeking to recover losses and damages sustained by Freddie Mac and Fannie Mae as a result of their investments in certain residential non-agency mortgage-related securities issued or sold by, or backed by mortgages originated by, these financial institutions or control persons thereof. These institutions include some of our largest seller/servicers and counterparties, including counterparties to debt funding and derivatives transactions. We and FHFA reached settlements with the following parties in 2013: | ||||||||||||||||||
• | General Electric Company and affiliates (January 2013) | |||||||||||||||||
• | Citigroup Inc. and affiliates (May 2013) | |||||||||||||||||
• | UBS Americas, Inc. (July 2013) | |||||||||||||||||
• | JPMorgan Chase & Co. and certain affiliated entities and other persons (October 2013) | |||||||||||||||||
• | Ally Financial Inc. (October 2013) | |||||||||||||||||
• | Deutsche Bank AG (December 2013) | |||||||||||||||||
Lawsuits against a number of other parties are currently pending. | ||||||||||||||||||
In addition, during September 2013, we reached a settlement with Wells Fargo Bank, N.A. and affiliates concerning claims related to certain residential non-agency mortgage-related securities. | ||||||||||||||||||
During 2013, we recognized $5.5 billion within non-interest income on our consolidated statements of comprehensive income associated with these settlements. In February 2014, we and FHFA entered into an agreement with Morgan Stanley, and related parties, to settle litigation related to certain residential non-agency mortgage-related securities we hold. Under the agreement, we will be paid $625 million, which will be reflected in our consolidated financial results for the first quarter of 2014. | ||||||||||||||||||
In June 2011, Bank of America Corporation, BAC Home Loans Servicing, LP, Countrywide Financial Corporation and Countrywide Home Loans, Inc. entered into a settlement agreement with The Bank of New York Mellon, as trustee, to resolve certain claims with respect to a number of Countrywide first-lien and second-lien residential mortgage-related securitization trusts. We have investments in certain of these Countrywide securitization trusts and would expect to benefit from this settlement, if final court approval is obtained. Bank of America indicated that the settlement would be subject to final court approval and certain other conditions. In January 2014, a New York state court approved a significant portion of the settlement. There can be no assurance that final court approval of the entire settlement will be obtained or that all conditions will be satisfied. Given the complexity of the settlement and the possibility that the January 2014 court decision will be appealed, it is not possible to predict the timing or ultimate outcome of the court approval process, which could take substantial additional time. | ||||||||||||||||||
Derivative Portfolio | ||||||||||||||||||
Our use of cleared derivatives, exchange-traded derivatives, and OTC derivatives exposes us to institutional credit risk. The requirement that we post initial and variation margin in connection with exchange-traded derivatives and cleared derivatives exposes us to institutional credit risk in the event that our clearing members or the clearinghouse fail to meet their obligations. However, the use of exchange-traded derivatives and cleared derivatives mitigates our institutional credit risk exposure to individual counterparties because a central counterparty is substituted for individual counterparties, and changes in the value of open exchange-traded contracts and cleared derivatives are settled or collateralized daily via payments made through the clearinghouse. OTC derivatives, however, expose us to institutional credit risk to individual counterparties because transactions are executed and settled between us and each counterparty, exposing us to potential losses if a counterparty fails to meet its contractual obligations. | ||||||||||||||||||
For more information about our derivative counterparties as well as related master netting and collateral agreements, see “NOTE 10: COLLATERAL AND OFFSETTING OF ASSETS AND LIABILITIES.” |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | ' | |||||||||||||||||||||||||||||||||||||||||||||||
NOTE 16: FAIR VALUE DISCLOSURES | ||||||||||||||||||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and sets forth disclosure requirements regarding fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. Fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or, in the absence of a principal market, in the most advantageous market for the asset or liability. | ||||||||||||||||||||||||||||||||||||||||||||||||
We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or non-recurring basis. | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority, Level 1, to measurements based on quoted prices in active markets for identical assets or liabilities. The next highest priority, Level 2, is given to measurements based on observable inputs other than quoted prices in active markets for identical assets or liabilities. The lowest priority, Level 3, is given to measurements based on unobservable inputs. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents our assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option, as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.1 — Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Netting | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | Adjustment(1) | |||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | — | $ | 38,720 | $ | 1,939 | $ | — | $ | 40,659 | ||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 10,666 | 131 | — | 10,797 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 155 | 12 | — | 167 | |||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 27,229 | 3,109 | — | 30,338 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | — | — | 27,499 | — | 27,499 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | — | — | 6,574 | — | 6,574 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | — | — | 8,706 | — | 8,706 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | 3,495 | — | 3,495 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | — | — | 684 | — | 684 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities, at fair value | — | 76,770 | 52,149 | — | 128,919 | |||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | — | 9,006 | 343 | — | 9,349 | |||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 6,959 | 221 | — | 7,180 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 24 | 74 | — | 98 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 133 | 8 | — | 141 | |||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | — | 16,122 | 646 | — | 16,768 | |||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 2,254 | — | — | — | 2,254 | |||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 4,382 | — | — | — | 4,382 | |||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 6,636 | — | — | — | 6,636 | |||||||||||||||||||||||||||||||||||||||||||
Total trading securities, at fair value | 6,636 | 16,122 | 646 | — | 23,404 | |||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 6,636 | 92,892 | 52,795 | — | 152,323 | |||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | — | 8,727 | — | — | 8,727 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | — | 10,009 | 10 | — | 10,019 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 4,112 | — | — | 4,112 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 99 | 1 | — | 100 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | — | 14,220 | 11 | — | 14,231 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (13,168 | ) | (13,168 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative assets, net | — | 14,220 | 11 | (13,168 | ) | 1,063 | ||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | — | — | 1,611 | — | 1,611 | |||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | — | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||||||||||||
Total other assets | — | — | 1,620 | — | 1,620 | |||||||||||||||||||||||||||||||||||||||||||
Total assets carried at fair value on a recurring basis | $ | 6,636 | $ | 115,839 | $ | 54,426 | $ | (13,168 | ) | $ | 163,733 | |||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties, at fair value | $ | — | $ | 59 | $ | — | $ | — | $ | 59 | ||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | — | 1,155 | 1,528 | — | 2,683 | |||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | — | 13,022 | 295 | — | 13,317 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 201 | 3 | — | 204 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 68 | 38 | — | 106 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | — | 13,291 | 336 | — | 13,627 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (13,447 | ) | (13,447 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities, net | — | 13,291 | 336 | (13,447 | ) | 180 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities carried at fair value on a recurring basis | $ | — | $ | 14,505 | $ | 1,864 | $ | (13,447 | ) | $ | 2,922 | |||||||||||||||||||||||||||||||||||||
Fair Value at December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Netting | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | Adjustment(1) | |||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | — | $ | 56,713 | $ | 1,802 | $ | — | $ | 58,515 | ||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 15,117 | 163 | — | 15,280 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 193 | 16 | — | 209 | |||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 47,878 | 3,429 | — | 51,307 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | — | — | 26,457 | — | 26,457 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | — | — | 5,717 | — | 5,717 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | — | — | 10,904 | — | 10,904 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | 5,798 | — | 5,798 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | — | — | 709 | — | 709 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities, at fair value | — | 119,901 | 54,995 | — | 174,896 | |||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | — | 9,189 | 1,165 | — | 10,354 | |||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 10,026 | 312 | — | 10,338 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 39 | 92 | — | 131 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 135 | 21 | — | 156 | |||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | — | 19,389 | 1,590 | — | 20,979 | |||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | 292 | — | — | 292 | |||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 1,160 | — | — | — | 1,160 | |||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 19,061 | — | — | — | 19,061 | |||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 20,221 | 292 | — | — | 20,513 | |||||||||||||||||||||||||||||||||||||||||||
Total trading securities, at fair value | 20,221 | 19,681 | 1,590 | — | 41,492 | |||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 20,221 | 139,582 | 56,585 | — | 216,388 | |||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | — | — | 14,238 | — | 14,238 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | 27 | 13,920 | 18 | — | 13,965 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 10,097 | — | — | 10,097 | |||||||||||||||||||||||||||||||||||||||||||
Other | 37 | 92 | 2 | — | 131 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | 64 | 24,109 | 20 | — | 24,193 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (23,536 | ) | (23,536 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative assets, net | 64 | 24,109 | 20 | (23,536 | ) | 657 | ||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | — | — | 1,029 | — | 1,029 | |||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | — | — | 114 | — | 114 | |||||||||||||||||||||||||||||||||||||||||||
Total other assets | — | — | 1,143 | — | 1,143 | |||||||||||||||||||||||||||||||||||||||||||
Total assets carried at fair value on a recurring basis | $ | 20,285 | $ | 163,691 | $ | 71,986 | $ | (23,536 | ) | $ | 232,426 | |||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties, at fair value | $ | — | $ | 70 | $ | — | $ | — | $ | 70 | ||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | — | — | 2,187 | — | 2,187 | |||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | 5 | 30,213 | 26 | — | 30,244 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 749 | 1 | — | 750 | |||||||||||||||||||||||||||||||||||||||||||
Other | 3 | 52 | 40 | — | 95 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | 8 | 31,014 | 67 | — | 31,089 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (30,911 | ) | (30,911 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities, net | 8 | 31,014 | 67 | (30,911 | ) | 178 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities carried at fair value on a recurring basis | $ | 8 | $ | 31,084 | $ | 2,254 | $ | (30,911 | ) | $ | 2,435 | |||||||||||||||||||||||||||||||||||||
-1 | Represents counterparty netting, cash collateral netting and net derivative interest receivable or payable. The net cash collateral posted was $871 million and $8.2 billion, respectively, at December 31, 2013 and 2012. The net interest receivable (payable) of derivative assets and derivative liabilities was $(0.6) billion and $(0.8) billion at December 31, 2013 and 2012, respectively, which was mainly related to interest rate swaps. | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value Levels | ||||||||||||||||||||||||||||||||||||||||||||||||
We monitor the availability of observable market data to: (a) assess the appropriate classification of financial instruments within the fair value hierarchy; and (b) transfer assets and liabilities between Level 1, Level 2, and Level 3 accordingly. Observable market data includes, but is not limited to, quoted prices and market transactions. Changes in economic conditions or the volume and level of activity in a market generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, 2, or 3. | ||||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013, our transfers between Level 1 and Level 2 assets and liabilities were $27 million and $5 million, respectively. For the year ended December 31, 2012, our transfers between Level 1 and Level 2 assets and liabilities were less than $1 million. | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents a reconciliation of all assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012, including transfers into and out of Level 3 assets and liabilities. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized in our consolidated statements of comprehensive income for Level 3 assets and liabilities for the years ended December 31, 2013 and 2012. When assets and liabilities are transferred between levels, we recognize the transfer as of the beginning of the period. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.2 — Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | gains (losses) | |||||||||||||||||||||||||||||||||||||||||
2013 | comprehensive | Level 3(5) | Level 3(5) | 2013 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,802 | $ | 2 | $ | 109 | $ | 111 | $ | 239 | $ | — | $ | (86 | ) | $ | (152 | ) | $ | 25 | $ | — | $ | 1,939 | $ | — | ||||||||||||||||||||||
Fannie Mae | 163 | — | (3 | ) | (3 | ) | — | — | — | (29 | ) | — | — | 131 | — | |||||||||||||||||||||||||||||||||
Ginnie Mae | 16 | — | — | — | — | — | — | (4 | ) | — | — | 12 | — | |||||||||||||||||||||||||||||||||||
CMBS | 3,429 | 6 | (266 | ) | (260 | ) | — | — | (36 | ) | (24 | ) | — | — | 3,109 | — | ||||||||||||||||||||||||||||||||
Subprime | 26,457 | (1,260 | ) | 6,648 | 5,388 | — | — | (403 | ) | (3,943 | ) | — | — | 27,499 | (1,258 | ) | ||||||||||||||||||||||||||||||||
Option ARM | 5,717 | (61 | ) | 1,694 | 1,633 | — | — | (75 | ) | (701 | ) | — | — | 6,574 | (58 | ) | ||||||||||||||||||||||||||||||||
Alt-A and other | 10,904 | (128 | ) | 1,341 | 1,213 | — | — | (2,001 | ) | (1,410 | ) | — | — | 8,706 | (179 | ) | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,798 | 13 | (188 | ) | (175 | ) | (10 | ) | — | (533 | ) | (1,585 | ) | — | — | 3,495 | — | |||||||||||||||||||||||||||||||
Manufactured housing | 709 | (1 | ) | 62 | 61 | — | — | — | (86 | ) | — | — | 684 | (1 | ) | |||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 54,995 | (1,429 | ) | 9,397 | 7,968 | 229 | — | (3,134 | ) | (7,934 | ) | 25 | — | 52,149 | (1,496 | ) | ||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,165 | (50 | ) | — | (50 | ) | 1,271 | 269 | (1,476 | ) | (64 | ) | 1 | (773 | ) | 343 | (53 | ) | ||||||||||||||||||||||||||||||
Fannie Mae | 312 | (42 | ) | — | (42 | ) | 2 | — | (2 | ) | (25 | ) | 43 | (67 | ) | 221 | (42 | ) | ||||||||||||||||||||||||||||||
Ginnie Mae | 92 | (1 | ) | — | (1 | ) | 3 | — | — | (15 | ) | — | (5 | ) | 74 | (1 | ) | |||||||||||||||||||||||||||||||
Other | 21 | — | — | — | — | — | — | (3 | ) | — | (10 | ) | 8 | — | ||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 1,590 | (93 | ) | — | (93 | ) | 1,276 | 269 | (1,478 | ) | (107 | ) | 44 | (855 | ) | 646 | (96 | ) | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | 14,238 | — | — | — | — | — | — | — | — | (14,238 | ) | — | — | |||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset(7) | 1,029 | 4 | — | 4 | — | 688 | — | (110 | ) | — | — | 1,611 | 4 | |||||||||||||||||||||||||||||||||||
All other, at fair value | 114 | 30 | — | 30 | — | — | (135 | ) | — | — | — | 9 | 7 | |||||||||||||||||||||||||||||||||||
Total other assets | 1,143 | 34 | — | 34 | — | 688 | (135 | ) | (110 | ) | — | — | 1,620 | 11 | ||||||||||||||||||||||||||||||||||
Realized and unrealized (gains) losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | (gains) | |||||||||||||||||||||||||||||||||||||||||
2013 | comprehensive | Level 3(5) | Level 3(5) | 2013 | losses | |||||||||||||||||||||||||||||||||||||||||||
income(1) | still held(6) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | $ | 2,187 | $ | 11 | $ | — | $ | 11 | $ | — | $ | 1,130 | $ | — | $ | (670 | ) | $ | — | $ | (1,130 | ) | $ | 1,528 | $ | 4 | ||||||||||||||||||||||
Net derivatives(8) | 47 | 301 | — | 301 | — | 12 | — | (35 | ) | — | — | 325 | 274 | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | gains (losses) | |||||||||||||||||||||||||||||||||||||||||
2012 | comprehensive | Level 3 | Level 3 | 2012 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 2,048 | $ | — | $ | 18 | $ | 18 | $ | — | $ | — | $ | — | $ | (144 | ) | $ | — | $ | (120 | ) | $ | 1,802 | $ | — | ||||||||||||||||||||||
Fannie Mae | 172 | — | 1 | 1 | — | — | — | (31 | ) | 21 | — | 163 | — | |||||||||||||||||||||||||||||||||||
Ginnie Mae | 12 | — | — | — | — | — | — | (4 | ) | 8 | — | 16 | — | |||||||||||||||||||||||||||||||||||
CMBS | 3,756 | 76 | (38 | ) | 38 | — | — | (331 | ) | (34 | ) | — | — | 3,429 | — | |||||||||||||||||||||||||||||||||
Subprime | 27,999 | (1,274 | ) | 4,301 | 3,027 | — | — | — | (4,569 | ) | — | — | 26,457 | (1,274 | ) | |||||||||||||||||||||||||||||||||
Option ARM | 5,865 | (552 | ) | 1,417 | 865 | — | — | (15 | ) | (998 | ) | — | — | 5,717 | (556 | ) | ||||||||||||||||||||||||||||||||
Alt-A and other | 10,868 | (196 | ) | 1,822 | 1,626 | — | — | — | (1,601 | ) | 11 | — | 10,904 | (196 | ) | |||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 7,824 | 19 | 108 | 127 | — | — | (482 | ) | (1,671 | ) | — | — | 5,798 | — | ||||||||||||||||||||||||||||||||||
Manufactured housing | 766 | (4 | ) | 47 | 43 | — | — | — | (100 | ) | — | — | 709 | (4 | ) | |||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 59,310 | (1,931 | ) | 7,676 | 5,745 | — | — | (828 | ) | (9,152 | ) | 40 | (120 | ) | 54,995 | (2,030 | ) | |||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,866 | (389 | ) | — | (389 | ) | 25 | 95 | (76 | ) | (206 | ) | 92 | (242 | ) | 1,165 | (390 | ) | ||||||||||||||||||||||||||||||
Fannie Mae | 538 | (131 | ) | — | (131 | ) | (5 | ) | — | 5 | (35 | ) | — | (60 | ) | 312 | (131 | ) | ||||||||||||||||||||||||||||||
Ginnie Mae | 22 | 1 | — | 1 | — | — | — | (16 | ) | 98 | (13 | ) | 92 | 1 | ||||||||||||||||||||||||||||||||||
Other | 90 | — | — | — | — | 18 | (10 | ) | (3 | ) | — | (74 | ) | 21 | (1 | ) | ||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 2,516 | (519 | ) | — | (519 | ) | 20 | 113 | (81 | ) | (260 | ) | 190 | (389 | ) | 1,590 | (521 | ) | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | 9,710 | 1,011 | — | 1,011 | 25,340 | — | (21,764 | ) | (59 | ) | — | — | 14,238 | 263 | ||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset(7) | 752 | (23 | ) | — | (23 | ) | — | 382 | — | (82 | ) | — | — | 1,029 | (23 | ) | ||||||||||||||||||||||||||||||||
All other, at fair value | 151 | (37 | ) | — | (37 | ) | — | — | — | — | — | — | 114 | (37 | ) | |||||||||||||||||||||||||||||||||
Total other assets | 903 | (60 | ) | — | (60 | ) | — | 382 | — | (82 | ) | — | — | 1,143 | (60 | ) | ||||||||||||||||||||||||||||||||
Realized and unrealized (gains) losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | (gains) losses | |||||||||||||||||||||||||||||||||||||||||
2012 | comprehensive | Level 3 | Level 3 | 2012 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | $ | — | $ | (16 | ) | $ | — | $ | (16 | ) | $ | — | $ | — | $ | — | $ | (812 | ) | $ | 3,015 | $ | — | $ | 2,187 | $ | (6 | ) | ||||||||||||||||||||
Net derivatives(8) | (17 | ) | 30 | — | 30 | — | 3 | — | (2 | ) | — | 33 | 47 | 15 | ||||||||||||||||||||||||||||||||||
-1 | Changes in fair value for available-for-sale investment securities are recorded in AOCI, while gains and losses from sales are recorded in other gains (losses) on investment securities recognized in earnings on our consolidated statements of comprehensive income. For mortgage-related securities classified as trading, the realized and unrealized gains (losses) are recorded in other gains (losses) on investment securities recognized in earnings on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Changes in fair value of derivatives not designated as accounting hedges are recorded in derivative gains (losses) on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Changes in fair value of the guarantee asset are recorded in other income on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | For held-for-sale mortgage loans with the fair value option elected, gains (losses) on fair value changes and from sales of mortgage loans are recorded in other income on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-5 | Transfers out of Level 3 during the year ended December 31, 2013 are due to: (a) our enhancement to our pricing methodology for multifamily mortgage loans, held-for-sale, to more directly reflect the increasingly observable nature of our exit market of loan securitization; and (b) an increased volume and level of activity in the market and availability of price quotes from dealers and third-party pricing services for: (i) trading mortgage-related securities; and (ii) STACR debt notes included in other debt at fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
-6 | Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at December 31, 2013 and 2012, respectively. Included in these amounts are credit-related other-than-temporary impairments recorded on available-for-sale securities. | |||||||||||||||||||||||||||||||||||||||||||||||
-7 | We estimate that all amounts recorded for unrealized gains and losses on our guarantee asset relate to those guarantee asset amounts still recorded on our balance sheet. The amounts reflected as included in earnings represent the periodic fair value changes of our guarantee asset. | |||||||||||||||||||||||||||||||||||||||||||||||
-8 | Net derivatives include derivative assets and derivative liabilities prior to counterparty netting, cash collateral netting, net trade/settle receivable or payable and net derivative interest receivable or payable. | |||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis after our initial recognition. These adjustments usually result from application of lower-of-cost-or-fair-value accounting or write-downs of individual assets. These assets include impaired held-for-investment multifamily mortgage loans and REO, net. | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents assets measured in our consolidated balance sheets at fair value on a non-recurring basis at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.3 — Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value at December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | Quoted Prices | Significant Other | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active Markets | Observable | Unobservable | in Active Markets | Observable | Unobservable | |||||||||||||||||||||||||||||||||||||||||||
for Identical | Inputs | Inputs | for Identical | Inputs (Level 2) | Inputs | |||||||||||||||||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | — | $ | — | $ | 515 | $ | 515 | $ | — | $ | — | $ | 1,025 | $ | 1,025 | ||||||||||||||||||||||||||||||||
REO, net(2) | — | — | 1,837 | 1,837 | — | — | 776 | 776 | ||||||||||||||||||||||||||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | — | $ | — | $ | 2,352 | $ | 2,352 | $ | — | $ | — | $ | 1,801 | $ | 1,801 | ||||||||||||||||||||||||||||||||
Total Gains (Losses)(3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 22 | $ | (49 | ) | $ | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
REO, net(2) | (50 | ) | (22 | ) | (118 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) | $ | (28 | ) | $ | (71 | ) | $ | (134 | ) | |||||||||||||||||||||||||||||||||||||||
-1 | Represents carrying value and related write-downs of loans for which adjustments are based on the fair value amounts. These loans consist of impaired multifamily mortgage loans that are classified as held-for-investment and have a related valuation allowance. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Represents the fair value and related losses of foreclosed properties that were measured at fair value subsequent to their initial classification as REO, net. The carrying amount of REO, net was written down to fair value of $1.8 billion, less estimated costs to sell of $118 million (or approximately $1.7 billion) at December 31, 2013. The carrying amount of REO, net was written down to fair value of $0.8 billion , less estimated costs to sell of $50 million (or approximately $0.7 billion) at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Represents the total net gains (losses) recorded on items measured at fair value on a non-recurring basis for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
Valuation Processes and Controls Over Fair Value Measurement | ||||||||||||||||||||||||||||||||||||||||||||||||
We designed our control processes so that our fair value measurements are appropriate and reliable, that they are based on observable inputs where possible, and that our valuation approaches are consistently applied and the assumptions and inputs are reasonable. Our control processes provide a framework for segregation of duties and oversight of our fair value methodologies, techniques, validation procedures, and results. | ||||||||||||||||||||||||||||||||||||||||||||||||
Groups within our Finance division, independent of our business functions, execute and validate the valuation processes and are responsible for determining the fair values of the majority of our financial assets and liabilities. In determining fair value, we consider the credit risk of our counterparties in estimating the fair values of our assets and our own credit risk in estimating the fair values of our liabilities. The fair values determined by our Finance division are further verified by an independent group within our Enterprise Risk Management (ERM) division. | ||||||||||||||||||||||||||||||||||||||||||||||||
The validation procedures performed by ERM are intended to ensure that the prices we receive from third parties are consistent with our observations of market activity, and that fair value measurements developed using internal data reflect the assumptions that a market participant would use in pricing our assets and liabilities. These validation procedures include performing a monthly independent verification of fair value measurements through independent modeling, analytics, and comparisons to other market source data, if available. Where applicable, prices are back-tested by comparing actual settlement prices to our fair value measurements. Analytical procedures include automated checks consisting of prior-period variance analysis, comparisons of actual prices to internally calculated expected prices based on observable market changes, analysis of changes in pricing ranges, relative value comparisons, and comparisons using modeled yields. Thresholds are set for each product category by ERM to identify exceptions that require further analysis. If a price is outside of our established thresholds, we perform additional validation procedures, including supplemental analytics and/or follow up discussions with the third-party provider. If we are unable to validate the reasonableness of a given price, we ultimately do not use that price for fair value measurements in our consolidated financial statements. These reviews are risk-based, cover all product categories, and are executed before we finalize the prices used in preparing our fair value measurements for our financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||
In addition to performing the validation procedures noted above, ERM provides independent risk governance over all valuation processes by establishing and maintaining a corporate-wide valuation control policy. ERM also independently reviews key judgments, methodologies, and valuation techniques to ensure compliance with established policies. | ||||||||||||||||||||||||||||||||||||||||||||||||
Our Valuation & Finance Model Committee (“Valuation Committee”), which includes representation from our business areas, ERM, and Finance divisions, provides senior management’s governance over valuation processes, methodologies, controls and fair value measurements. Identified exceptions are reviewed and resolved through the verification process and the fair value measurements used in the financial statements are approved at the Valuation Committee. | ||||||||||||||||||||||||||||||||||||||||||||||||
Where models are employed to assist in the measurement and verification of fair values, changes made to those models during the period are reviewed and approved according to the corporate model change governance process, with all material changes reviewed at the Valuation Committee. Inputs used by models are regularly updated for changes in the underlying data, assumptions, valuation inputs, and market conditions, and are subject to the valuation controls noted above. | ||||||||||||||||||||||||||||||||||||||||||||||||
Use of Third-Party Pricing Data in Fair Value Measurement | ||||||||||||||||||||||||||||||||||||||||||||||||
As discussed in the sections that follow, many of our valuation techniques use, either directly or indirectly, data provided by third-party pricing services or dealers. The techniques used by these pricing services and dealers to develop the prices generally are either: (a) a comparison to transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; or (b) industry-standard modeling, such as a discounted cash flow model. The prices provided by the pricing services and dealers reflect their observations and assumptions related to market activity, including risk premiums and liquidity adjustments. The models and related assumptions used by the pricing services and dealers are owned and managed by them and, in many cases, the significant inputs used in the valuation techniques are not reasonably available to us. However, we have an understanding of the processes and assumptions used to develop the prices based on our ongoing due diligence, which includes discussions with our vendors at least annually and often more frequently. We believe that the procedures executed by the pricing services and dealers, combined with our internal verification and analytical procedures, provide assurance that the prices used in our financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use in pricing our assets and liabilities. The price quotes we receive are non-binding both to us and to our counterparties. | ||||||||||||||||||||||||||||||||||||||||||||||||
In many cases, we receive prices from third-party pricing services or dealers and use those prices without adjustment, and the significant inputs used to develop the prices are not reasonably available to us. For a large majority of the assets and liabilities we value using pricing services and dealers, we obtain prices from multiple external sources and use the median of the prices to measure fair value. This technique is referred to below as “median of external sources.” The significant inputs used in the fair value measurement of assets and liabilities that are valued using the median of external sources pricing technique are the third-party prices. Significant increases (decreases) in any of the third-party prices in isolation may result in a significantly higher (lower) fair value measurement. In limited circumstances, we may be able to receive pricing information from only a single external source. This technique is referred to below as “single external source.” | ||||||||||||||||||||||||||||||||||||||||||||||||
In limited circumstances, we receive prices or pricing-related data that we adjust or use as an input to our models or other valuation techniques to measure fair value, as described in “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Derivative Assets, Net and Derivative Liabilities, Net.” In other limited circumstances, we receive prices from a third-party provider and use those prices without adjustment, but the inputs used by the third-party provider to develop the prices are reasonably available to us, as described in “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Mortgage Loans, Held-for-Sale” and “ — Other Assets and Other Liabilities.” | ||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
We categorize assets and liabilities that we measure and report in our consolidated balance sheets at fair value within the fair value hierarchy based on the valuation techniques used to derive the fair value and our judgment regarding the observability of the related inputs. The following is a description of the valuation techniques we use for fair value measurement and disclosure; the significant inputs used in those techniques (if applicable); our basis for classifying the measurements as Level 1, Level 2, or Level 3 of the fair value hierarchy; and, for those measurements classified as Level 3 of the hierarchy, a narrative description of the sensitivity of the fair value measurement to changes in significant unobservable inputs and a description of any interrelationships between those unobservable inputs. Although the sensitivities of the unobservable inputs are generally discussed below in isolation, interrelationships exist among the inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs. For example, the most common interrelationship that impacts the majority of our fair value measurements is between future interest rates, prepayment speeds, and probabilities of default. Generally, a change in the assumption used for future interest rates results in a directionally opposite change in the assumption used for prepayment speeds and a directionally similar change in the assumption used for probabilities of default. | ||||||||||||||||||||||||||||||||||||||||||||||||
Each technique discussed below may not be used in a given reporting period, depending on the composition of our assets and liabilities measured at fair value and relevant market activity during that period. | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Related Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities, both trading and available-for-sale, consist of mortgage-related securities issued and guaranteed by Freddie Mac, Fannie Mae, and Ginnie Mae. The valuation techniques for agency securities vary depending on the type of security. | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed-rate single-class securities are valued using observable prices for similar securities in the TBA market. The observable TBA prices vary based on agency, term, coupon, and settlement date. In addition, we may adjust the TBA price accordingly based on matrices we receive from external dealers for securities with specific collateral characteristics if we observe those collateral characteristics to be trading at a premium or discount to the TBA price. Significant inputs used in this technique are the TBA prices and the security characteristics mentioned above. These securities have observable market pricing and are classified as Level 2. | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjustable-rate single-class securities and the majority of multiclass securities are valued using the median of external sources. For certain multiclass securities, we are able to receive prices from only a single external source. Adjustable-rate single-class securities and the multiclass securities valued using these techniques generally have observable market prices and are classified as Level 2. However, certain multiclass securities valued using these techniques are classified as Level 3 when there is a low volume or level of activity in the market for those securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Certain multiclass securities for which we are not able to obtain external prices due to limited relevant market activity are valued using a discounted cash flow technique. Under this technique, securities are valued by starting with a third-party market price for a similar security within our portfolio. We then use our proprietary prepayment and interest rate models to calculate an OAS for the similar security, which is used to determine the net present value of the projected cash flows for the security to be valued. The significant unobservable input used in the fair value measurement of these securities is the OAS. Significant increases (decreases) in the OAS in isolation would result in a significantly lower (higher) fair value measurement. These securities are classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
Certain complex multiclass securities for which current cash flow information is not readily available are valued using a risk-metric pricing technique. Under this technique, securities are valued by starting with a prior period price and adjusting that price for market changes in certain key risk metrics such as key rate durations. If necessary, our judgment is applied to adjust the price based on specific security characteristics. The significant unobservable inputs used in the fair value measurement of these securities are the key risk metrics. Significant increases (decreases) in key rate durations in isolation would result in a significantly lower (higher) fair value measurement. These securities are classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage-Backed Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
The majority of our CMBS are valued using the median of external sources. For a small number of CMBS, we are able to receive prices from only a single external source. CMBS valued using these techniques generally have observable market pricing and are classified as Level 2. However, certain CMBS valued using these techniques are classified as Level 3 when there is a low volume or level of activity in the market for those securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime, Option ARM, and Alt-A and Other (Mortgage-Related); Obligations of States and Political Subdivisions; and Manufactured Housing | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime, option ARM, and Alt-A and other securities consist of non-agency mortgage-related securities backed by subprime, option ARM, and/or Alt-A and other collateral. Obligations of states and political subdivisions consist primarily of housing revenue bonds. Manufactured housing securities consist of non-agency mortgage-related securities backed by loans on manufactured housing properties. These types of securities are all valued based on the median of external sources and are classified as Level 3 due to the low volume and level of activity in the markets for these securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-Mortgage-Related Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-Backed Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities consist primarily of private-label non-mortgage-related securities. These securities are valued using the median of external sources. These securities have observable market pricing and are classified as Level 2. | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Bills and Treasury Notes | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury bills and Treasury notes are valued using quoted prices in active markets for identical assets and are classified as Level 1. | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans, Held-for-Sale | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans, held-for-sale consist of multifamily mortgage loans with the fair value option elected and are measured at fair value on a recurring basis. Mortgage loans, held-for-sale are primarily valued using market prices from a third-party pricing service that uses a discounted cash flow technique calibrated to the exit price for these loans as reflected in the K Certificate securitization market. Under this technique, the pricing service forecasts cash flows for the various mortgage loans and discounts them at a market rate, including a spread that is based on our recent securitization activity, which we have defined as our principal exit market. These loans are classified as Level 2 given the observable nature of our securitization pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans, Held-for-Investment | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans, held-for-investment are measured at fair value on a non-recurring basis and represent multifamily mortgage loans that have been written down to the fair value of the underlying collateral due to impairment. The underlying collateral is primarily valued using either an income capitalization technique or third-party appraisals. | ||||||||||||||||||||||||||||||||||||||||||||||||
Under the income capitalization technique, the collateral is valued by discounting the present value of future cash flows by applying an overall capitalization rate to the forecasted net operating income. The significant unobservable input used in the fair value measurement of these loans is the capitalization rate, which is determined through analysis of the DSCR. Significant increases (decreases) in the capitalization rate in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||||
Under the third-party appraisal technique, we use the prices provided by third-party appraisers without adjustment. The third-party appraisers consider the physical condition of the property and use comparable sales and other market data in determining the appraised value. | ||||||||||||||||||||||||||||||||||||||||||||||||
Impaired multifamily mortgage loans held-for-investment are classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets, Net and Derivative Liabilities, Net | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets and derivative liabilities consist of interest-rate swaps, option-based derivatives, and other derivatives, such as exchange-traded futures, foreign-currency swaps, and certain forward purchase and sale commitments. | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-Rate Swaps | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps consist of receive-fixed, pay-fixed, and basis swaps. The majority of our interest-rate swaps are valued using a discounted cash flow technique. Under this technique, interest-rate swaps are valued by using the appropriate yield curves to discount the expected cash flows of both the fixed and variable rate components of the swap contracts. The significant inputs used in the fair value measurement of these derivatives are market-based interest rates. These derivatives are classified as Level 2 as the significant inputs used in the fair value measurement are observable in active markets. | ||||||||||||||||||||||||||||||||||||||||||||||||
Option-Based Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives consist of interest rate caps, interest rate floors, call swaptions, and put swaptions. We value the majority of our option-based derivatives using option-pricing models. Dealer-supplied interest rate volatility matrices are a key input into these models. Within each matrix, prices are provided for a range of option terms, swap terms, and strikes. Our models then interpolate to determine the volatility for each instrument and use that volatility as an input to the option-pricing model. These derivatives are classified as Level 2 as the significant inputs used are observable in active markets. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivatives consist of exchange-traded futures, foreign-currency swaps, and certain forward purchase and sale commitments. | ||||||||||||||||||||||||||||||||||||||||||||||||
Exchange-traded futures are valued using quoted prices in active markets for identical assets or liabilities and are classified as Level 1. | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign-currency swaps are valued using a discounted cash flow technique. Under this technique, foreign-currency swaps are valued using yield curves derived from observable market data to calculate and discount the expected cash flows for the swap contracts. The significant inputs used in the fair value measurement of these derivatives are market-based interest rates and foreign currency exchange rates. These derivatives are classified as Level 2 as the significant inputs used in the fair value measurement are observable in active markets. | ||||||||||||||||||||||||||||||||||||||||||||||||
Certain purchase and sale commitments are also considered to be derivatives and are valued using the same techniques we use to value the underlying instruments we are committing to purchase or sell. These instruments generally have observable market pricing and are classified as Level 2. Valuation techniques for commitments to purchase or sell investment securities and to extinguish or issue debt securities of consolidated trusts are further discussed in “Investments in Securities.” Valuation techniques for commitments to purchase single-family mortgage loans are further discussed in “Valuation Techniques for Assets and Liabilities Not Measured in Our Consolidated Balance Sheets at Fair Value, but for Which the Fair Value is Disclosed — Mortgage Loans.” | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Other Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other assets consist of our guarantee asset related to guarantees issued to unconsolidated securitization trusts and mortgage servicing rights. Other liabilities, from time to time, consist of mortgage servicing rights. | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee Asset | ||||||||||||||||||||||||||||||||||||||||||||||||
Our guarantee asset is primarily related to our multifamily guarantees. The multifamily guarantee asset is valued using a discounted cash flow technique. Under this technique, the present value of future cash flows related to our management and guarantee fee is discounted based on the current OAS-to-benchmark interest rates for new guarantees, which are driven by changes in our estimates of credit risk and changes in the credit profile of the multifamily guarantee portfolio. The significant unobservable input used in the fair value measurement of the guarantee asset is the OAS-to-benchmark rates. Significant increases (decreases) in the OAS in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||||
Our guarantee asset also consists of single family guarantees primarily related to long-term standby commitments, the vast majority of which is valued using the median of external sources. Under this technique, we obtain multiple price quotes from dealers, who provide estimates based on pricing for comparable benchmark securities with specific adjustments to reflect the unique characteristics of this asset class. | ||||||||||||||||||||||||||||||||||||||||||||||||
The guarantee asset is classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
All Other Assets and Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
All other assets and, from time to time, other liabilities consist primarily of mortgage servicing rights. Mortgage servicing rights are valued using a discounted cash flow technique by a third-party vendor that specializes in valuing and brokering sales of mortgage servicing rights. Under this technique, the cash flows from the mortgage servicing rights are discounted based on estimated prepayment rates, estimated costs to service both performing and non-performing loans, and estimated servicing income per loan (including ancillary income). The significant unobservable inputs used in the fair value measurement of mortgage servicing rights are the estimates of prepayment rates, costs to service per loan, and servicing income per loan. Significant increases (decreases) in cost to service per loan, and prepayment rate in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in servicing income per loan in isolation would result in a significantly higher (lower) fair value measurement. Mortgage servicing rights are classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
REO, Net | ||||||||||||||||||||||||||||||||||||||||||||||||
REO, net consists primarily of single-family REO. REO, net is initially measured at its fair value less costs to sell, and is subsequently measured at the lower of cost or fair value less costs to sell. REO, net is valued using an internal model. Under this technique, our internal model uses actual REO disposition prices for the prior three months, calibrated to the most recent month's disposition prices, to determine the average sales proceeds per property at the state level, expressed as a fixed percentage based on the ratio of the disposition price to the UPB of the associated loan. This fixed percentage is then applied to the UPB immediately prior to the acquisition to determine the fair value of the individual property. Certain adjustments, such as state-level adjustments, are made to the estimated fair value, as applicable. The significant unobservable input used in the fair value measurement of REO, net is the historical average sales proceeds per property by state. Significant increases (decreases) in the historical average sales proceeds per property by state in isolation would result in a significantly higher (lower) fair value measurement. REO, net is classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities of Consolidated Trusts Held by Third Parties, at Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option for certain debt securities of consolidated trusts held by third parties. These consist of certain multifamily K Certificates where we are in a first loss position and certain REMIC interest-only mortgage-related debt securities. These are valued using either the median of external sources or a single external source (which may be the counterparty to the transaction) and are classified as Level 2 due to market pricing that is observable. See “Fair Value Option — Debt Securities of Consolidated Trusts Held by Third Parties” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Debt, at Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option on: (a) STACR debt notes; (b) extendible variable-rate notes containing quarterly options for investors to extend the maturity of the notes; and (c) foreign-currency denominated debt instruments. Our STACR debt notes are valued using the median of external sources and are classified as Level 2 based on observable market prices. Extendible variable-rate notes and foreign-currency denominated debt are valued using either the median of external sources or a single external source (which may be the counterparty to the transaction) and are classified as Level 3 due to the low volume and level of activity in the market for these types of debt instruments. See “Fair Value Option — Other Debt” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis using unobservable inputs (Level 3) as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.4 — Quantitative Information about Recurring Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,547 | Risk metric | Effective duration(2) | 2.25 - 5.17 years | 2.44 years | ||||||||||||||||||||||||||||||||||||||||||
133 | Single external source | External pricing source | $99.3 - $99.3 | $ | 99.3 | |||||||||||||||||||||||||||||||||||||||||||
259 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | $ | 40,659 | 1,939 | |||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 91 | Single external source | External pricing source | $110.5 - $110.5 | $ | 110.5 | ||||||||||||||||||||||||||||||||||||||||||
26 | Median of external sources | External pricing sources | $104.1 - $105.3 | $ | 104.7 | |||||||||||||||||||||||||||||||||||||||||||
14 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 10,797 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 6 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
6 | Discounted cash flows | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 167 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 2,942 | Single external source | External pricing source | $90.9 - $90.9 | $ | 90.9 | ||||||||||||||||||||||||||||||||||||||||||
167 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total CMBS | 30,338 | 3,109 | ||||||||||||||||||||||||||||||||||||||||||||||
Subprime, option ARM, and Alt-A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime | 25,367 | Median of external sources | External pricing sources | $64.5 - $73.8 | $ | 68.7 | ||||||||||||||||||||||||||||||||||||||||||
2,132 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total subprime | 27,499 | 27,499 | ||||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 4,995 | Median of external sources | External pricing sources | $60.8- $67.0 | $ | 64.4 | ||||||||||||||||||||||||||||||||||||||||||
705 | Discounted cash flows | OAS | 461 - 944 bps | 729 bps | ||||||||||||||||||||||||||||||||||||||||||||
874 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total option ARM | 6,574 | 6,574 | ||||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 4,028 | Single external source | External pricing source | $83.4 - $83.4 | $ | 83.4 | ||||||||||||||||||||||||||||||||||||||||||
3,503 | Median of external sources | External pricing sources | $72.5 - $79.1 | $ | 75.7 | |||||||||||||||||||||||||||||||||||||||||||
1,175 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Alt-A and other | 8,706 | 8,706 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,067 | Median of external sources | External pricing sources | $98.7 - $99.7 | $ | 99.2 | ||||||||||||||||||||||||||||||||||||||||||
428 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total obligations of states and political subdivisions | 3,495 | 3,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 577 | Median of external sources | External pricing sources | $86.7 - $92.8 | $ | 89.7 | ||||||||||||||||||||||||||||||||||||||||||
107 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing | 684 | 684 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 128,919 | 52,149 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 297 | Discounted cash flows | OAS | (5) - 9,441 bps | 364 bps | |||||||||||||||||||||||||||||||||||||||||||
46 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | 9,349 | 343 | ||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 191 | Discounted cash flows | OAS | (2,257) - 2,295 bps | 199 bps | |||||||||||||||||||||||||||||||||||||||||||
30 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 7,180 | 221 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 74 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 98 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | Single external source | ||||||||||||||||||||||||||||||||||||||||||||||
1 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | 141 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 16,768 | 646 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | $ | 145,687 | $ | 52,795 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | 1,163 | Discounted cash flows | OAS | 16 - 202 bps | 53 bps | |||||||||||||||||||||||||||||||||||||||||||
448 | Median of external sources | External pricing sources | $11.6 - $25.4 | $ | 19.2 | |||||||||||||||||||||||||||||||||||||||||||
Total guarantee asset, at fair value | 1,611 | 1,611 | ||||||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | 9 | Other | ||||||||||||||||||||||||||||||||||||||||||||||
Total all other, at fair value | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Total other assets | 1,620 | 1,620 | ||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | 1,000 | Single external source | External pricing source | $100.0 - $100.0 | $ | 100 | ||||||||||||||||||||||||||||||||||||||||||
528 | Median of external sources | External pricing sources | $100.0 - $100.1 | 100 | ||||||||||||||||||||||||||||||||||||||||||||
Total other debt recorded at fair value | 2,683 | 1,528 | ||||||||||||||||||||||||||||||||||||||||||||||
Net derivatives | 283 | Single external source | External pricing source | $0.8 - $0.8 | $ | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
37 | Discounted cash flows | |||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total net derivatives | (883 | ) | 325 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,477 | Risk metric | Effective duration(2) | 0.89 -1.98 years | 0.89 years | ||||||||||||||||||||||||||||||||||||||||||
325 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | $ | 58,515 | 1,802 | |||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 78 | Median of external sources | External pricing sources | $103.9 - $106.0 | $ | 105.2 | ||||||||||||||||||||||||||||||||||||||||||
65 | Single external source | External pricing source | $116.0 - $116.0 | $ | 116 | |||||||||||||||||||||||||||||||||||||||||||
20 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 15,280 | 163 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 8 | Discounted cash flows | ||||||||||||||||||||||||||||||||||||||||||||||
8 | Median of external sources | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 209 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 2,462 | Single external source | External pricing source | $99.4 - $99.4 | $ | 99.4 | ||||||||||||||||||||||||||||||||||||||||||
432 | Risk metric | Effective duration(2) | 9.3 -14.8 years | 12.0 years | ||||||||||||||||||||||||||||||||||||||||||||
535 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total CMBS | 51,307 | 3,429 | ||||||||||||||||||||||||||||||||||||||||||||||
Subprime, option ARM, and Alt-A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime | 24,890 | Median of external sources | External pricing sources | $54.4 - $64.4 | $ | 59.2 | ||||||||||||||||||||||||||||||||||||||||||
1,567 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total subprime | 26,457 | 26,457 | ||||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 5,631 | Median of external sources | External pricing sources | $43.8 - $52.6 | $ | 47.9 | ||||||||||||||||||||||||||||||||||||||||||
86 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total option ARM | 5,717 | 5,717 | ||||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,562 | Median of external sources | External pricing sources | $69.6 - $77.9 | $ | 73.8 | ||||||||||||||||||||||||||||||||||||||||||
1,901 | Single external source | External pricing source | $71.8 - $71.8 | $ | 71.8 | |||||||||||||||||||||||||||||||||||||||||||
441 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Alt-A and other | 10,904 | 10,904 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,533 | Median of external sources | External pricing sources | $102.3 - $103.2 | $ | 102.7 | ||||||||||||||||||||||||||||||||||||||||||
265 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total obligations of states and political subdivisions | 5,798 | 5,798 | ||||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 693 | Median of external sources | External pricing sources | $80.0 - $85.5 | $ | 82.8 | ||||||||||||||||||||||||||||||||||||||||||
16 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing | 709 | 709 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 174,896 | 54,995 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,112 | Discounted cash flows | OAS | (33,702) - 3,251 bps | 502 bps | |||||||||||||||||||||||||||||||||||||||||||
53 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | 10,354 | 1,165 | ||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 312 | Discounted cash flows | OAS | (1,263) - 3,251 bps | 810 bps | |||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 10,338 | 312 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 87 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 131 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 12 | Discounted cash flows | ||||||||||||||||||||||||||||||||||||||||||||||
9 | Median of external sources | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | 156 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 20,979 | 1,590 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | $ | 195,875 | $ | 56,585 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | $ | 14,238 | $ | 14,238 | Discounted cash flows | DSCR | 1.25 - 6.88 | 1.97 | ||||||||||||||||||||||||||||||||||||||||
Current LTV | 19% - 80% | 69 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | 870 | Discounted cash flows | OAS | 0 - 368 bps | 55 bps | |||||||||||||||||||||||||||||||||||||||||||
159 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total guarantee asset, at fair value | 1,029 | 1,029 | ||||||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | 112 | Discounted cash flows | Prepayment rate | 7.73% -39.87% | 21.23 | % | ||||||||||||||||||||||||||||||||||||||||||
Servicing income per loan | 0.19% - 0.52% | 0.25 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost to service per loan | $78 - $354 | $ | 141 | |||||||||||||||||||||||||||||||||||||||||||||
2 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total all other, at fair value | 114 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||
Total other assets | 1,143 | 1,143 | ||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | 1,188 | Median of external sources | External pricing sources | $101.7 - $102.0 | $ | 101.7 | ||||||||||||||||||||||||||||||||||||||||||
999 | Single external source | External pricing source | $99.9 - $99.9 | $ | 99.9 | |||||||||||||||||||||||||||||||||||||||||||
Total other debt recorded at fair value | 2,187 | 2,187 | ||||||||||||||||||||||||||||||||||||||||||||||
Net derivatives | (479 | ) | 47 | Other | ||||||||||||||||||||||||||||||||||||||||||||
-1 | Certain unobservable input types, range, and weighted average data are not disclosed in this table if they are associated with a class: (a) that has a Level 3 fair value measurement that is not considered material; or (b) where we have disclosed the predominant valuation technique with related unobservable inputs for the most significant portion of that class. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Effective duration is used as a proxy to represent the aggregate impact of key rate durations. | |||||||||||||||||||||||||||||||||||||||||||||||
The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for assets and liabilities measured in our consolidated balance sheets at fair value on a non-recurring basis using unobservable inputs (Level 3) as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.5 — Quantitative Information about Non-Recurring Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 298 | Income capitalization | Capitalization rates(2) | 6% - 9% | 7% | ||||||||||||||||||||||||||||||||||||||||||
217 | Third-party appraisal | Property value | $4 million - $44 million | $27 million | ||||||||||||||||||||||||||||||||||||||||||||
Total held-for-investment | $ | 515 | 515 | |||||||||||||||||||||||||||||||||||||||||||||
REO, net | 1,837 | Internal model(3) | Historical average sales | $17,500 - $318,391 | $ | 105,508 | ||||||||||||||||||||||||||||||||||||||||||
proceeds per property | ||||||||||||||||||||||||||||||||||||||||||||||||
by state(4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total REO, net | 1,837 | 1,837 | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 711 | Income capitalization | Capitalization rates(2) | 5% - 9% | 7% | ||||||||||||||||||||||||||||||||||||||||||
314 | Third-party appraisal | Property value | $2 million - $43 million | $21 million | ||||||||||||||||||||||||||||||||||||||||||||
Total held-for-investment | $ | 1,025 | 1,025 | |||||||||||||||||||||||||||||||||||||||||||||
REO, net | 771 | Internal model(3) | Historical average sales | $32,186 - $356,397 | $102,697 | |||||||||||||||||||||||||||||||||||||||||||
proceeds per property | ||||||||||||||||||||||||||||||||||||||||||||||||
by state(4) | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total REO, net | 776 | 776 | ||||||||||||||||||||||||||||||||||||||||||||||
-1 | Certain unobservable input types, range, and weighted average data are not disclosed in this table if they are associated with a class: (a) that has a Level 3 fair value measurement that is not considered material; or (b) where we have disclosed the predominant valuation technique with related unobservable inputs for the most significant portion of that class. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The capitalization rate “Range” and “Weighted Average” represent those loans that are valued using the Income Capitalization approach, which is the predominant valuation technique used for this population. Certain loans in this population are valued using other techniques, and the capitalization rate for those is not represented in the “Range” or “Weighted Average” above. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Represents an internal model that uses actual REO disposition prices for the prior three months, calibrated to the most recent month's disposition prices, to determine the average sales proceeds per property at the state level, expressed as a fixed percentage based on the ratio of the disposition price to the UPB of the associated loan. This valuation technique is used to measure both the initial value of REO and the subsequent write-down to current fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | Represents the average of three months of REO sales proceeds by state. The national average REO disposition severity ratio for our REO properties was 35.8% and 39.5% for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents the carrying value and estimated fair value of our financial instruments as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.6 — Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount(1) | Level 1 | Level 2 | Level 3 | Netting Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 11,281 | $ | 7,360 | $ | 3,921 | $ | — | $ | — | $ | 11,281 | ||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 12,265 | 12,264 | 1 | — | — | 12,265 | ||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 62,383 | — | 62,383 | — | — | 62,383 | ||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | 128,919 | — | 76,770 | 52,149 | — | 128,919 | ||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | 23,404 | 6,636 | 16,122 | 646 | — | 23,404 | ||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 152,323 | 6,636 | 92,892 | 52,795 | — | 152,323 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held by consolidated trusts | 1,529,905 | — | 1,258,049 | 249,693 | — | 1,507,742 | ||||||||||||||||||||||||||||||||||||||||||
Unsecuritized mortgage loans | 154,885 | — | 16,145 | 122,065 | — | 138,210 | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans(2) | 1,684,790 | — | 1,274,194 | 371,758 | — | 1,645,952 | ||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net | 1,063 | — | 14,220 | 11 | (13,168 | ) | 1,063 | |||||||||||||||||||||||||||||||||||||||||
Guarantee asset | 1,611 | — | — | 1,879 | — | 1,879 | ||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,925,716 | $ | 26,260 | $ | 1,447,611 | $ | 426,443 | $ | (13,168 | ) | $ | 1,887,146 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties | $ | 1,433,984 | $ | — | $ | 1,435,894 | $ | 1,004 | $ | — | $ | 1,436,898 | ||||||||||||||||||||||||||||||||||||
Other debt | 506,767 | — | 499,756 | 13,089 | — | 512,845 | ||||||||||||||||||||||||||||||||||||||||||
Total debt, net | 1,940,751 | — | 1,935,650 | 14,093 | — | 1,949,743 | ||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net | 180 | — | 13,291 | 336 | (13,447 | ) | 180 | |||||||||||||||||||||||||||||||||||||||||
Guarantee obligation | 1,522 | — | — | 3,067 | — | 3,067 | ||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 1,942,453 | $ | — | $ | 1,948,941 | $ | 17,496 | $ | (13,447 | ) | $ | 1,952,990 | |||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount(1) | Level 1 | Level 2 | Level 3 | Netting Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 8,513 | $ | 8,513 | $ | — | $ | — | $ | — | $ | 8,513 | ||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 14,592 | 14,576 | 16 | — | — | 14,592 | ||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 37,563 | — | 37,563 | — | — | 37,563 | ||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | 174,896 | — | 119,901 | 54,995 | — | 174,896 | ||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | 41,492 | 20,221 | 19,681 | 1,590 | — | 41,492 | ||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 216,388 | 20,221 | 139,582 | 56,585 | — | 216,388 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held by consolidated trusts | 1,495,932 | — | 1,130,438 | 409,722 | — | 1,540,160 | ||||||||||||||||||||||||||||||||||||||||||
Unsecuritized mortgage loans | 190,415 | — | 16,428 | 151,175 | — | 167,603 | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | 1,686,347 | — | 1,146,866 | 560,897 | — | 1,707,763 | ||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net | 657 | 64 | 24,109 | 20 | (23,536 | ) | 657 | |||||||||||||||||||||||||||||||||||||||||
Guarantee asset | 1,029 | — | — | 1,325 | — | 1,325 | ||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,965,089 | $ | 43,374 | $ | 1,348,136 | $ | 618,827 | $ | (23,536 | ) | $ | 1,986,801 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties | $ | 1,419,524 | $ | — | $ | 1,484,228 | $ | 2,867 | $ | — | $ | 1,487,095 | ||||||||||||||||||||||||||||||||||||
Other debt | 547,518 | — | 546,955 | 18,646 | — | 565,601 | ||||||||||||||||||||||||||||||||||||||||||
Total debt, net | 1,967,042 | — | 2,031,183 | 21,513 | — | 2,052,696 | ||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net | 178 | 8 | 31,014 | 67 | (30,911 | ) | 178 | |||||||||||||||||||||||||||||||||||||||||
Guarantee obligation | 1,004 | — | — | 2,487 | — | 2,487 | ||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 1,968,224 | $ | 8 | $ | 2,062,197 | $ | 24,067 | $ | (30,911 | ) | $ | 2,055,361 | |||||||||||||||||||||||||||||||||||
-1 | Equals the amount reported on our GAAP consolidated balance sheets. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The fair value of single-family mortgage loans as of December 31, 2013 includes the effect of a change in estimate related to enhancements implemented to align our economic capital methodology with external capital benchmarks. | |||||||||||||||||||||||||||||||||||||||||||||||
Valuation Techniques for Assets and Liabilities Not Measured in Our Consolidated Balance Sheets at Fair Value, but for Which the Fair Value is Disclosed | ||||||||||||||||||||||||||||||||||||||||||||||||
The following is a description of the valuation techniques we use for items not measured in our consolidated balance sheets at fair value , but for which the fair value is disclosed, the significant inputs used in those techniques (if applicable), and our basis for classifying the measurements as Level 1, Level 2, or Level 3 of the valuation hierarchy. Each technique discussed below may not be used in a given reporting period, depending on the composition of our assets and liabilities measured at fair value and relevant market activity during that period. | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents (including Restricted Cash and Cash Equivalents) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash and cash equivalents) largely consist of highly liquid investment securities with an original maturity of three months or less used for cash management purposes, as well as cash held at financial institutions and cash collateral posted by our derivative counterparties. Given that these assets are short-term in nature with limited market value volatility, the carrying amount on our GAAP consolidated balance sheets is deemed to be a reasonable approximation of fair value. Cash and restricted cash are classified as Level 1. Cash equivalents (including restricted cash equivalents) are primarily classified as Level 2 because we use observable inputs other than quoted prices in active markets for identical assets to determine the fair value measurement. However, cash equivalents (including restricted cash equivalents) for which we can obtain quoted prices in active markets for identical assets are classified as Level 1. | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold and Securities Purchased Under Agreements to Resell | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell principally consist of short-term contractual agreements such as reverse repurchase agreements involving Treasury and agency securities and federal funds sold. Given that these assets are short-term in nature, the carrying amount on our GAAP consolidated balance sheets is deemed to be a reasonable approximation of fair value. Federal funds sold and securities purchased under agreements to resell are classified as Level 2 because these assets have observable market pricing, but quoted prices for identical assets are not available. | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Single-family and certain multifamily mortgage loans are classified as held-for-investment and recorded at amortized cost. Other multifamily mortgage loans that are held for investment are recorded at the fair value of the underlying collateral upon impairment. Multifamily held-for-sale mortgage loans are recorded at fair value due to the election of the fair value option. | ||||||||||||||||||||||||||||||||||||||||||||||||
Single-Family Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Determination of Principal Market | ||||||||||||||||||||||||||||||||||||||||||||||||
In determining the fair value of single-family mortgage loans, valuation outcomes can vary widely based on management judgments and decisions used in determining: (a) the principal market; (b) modeling assumptions, including default, severity, home prices, and risk premiums; and (c) inputs used to determine variables including risk premiums, credit costs, security pricing, and implied management and guarantee fees. Our principal markets include the GSE securitization market and the whole loan market. To determine the principal market, we considered the market with the greatest volume and level of activity and our ability to access that market. In the absence of a market with active trading, we determined the market that would maximize the amount we would receive upon sale. We determined that the principal market is the whole loan market for loans that: (a) are four or more months delinquent; (b) are in foreclosure; (c) have completed a HAMP loan modification; (d) have completed a non-HAMP loan modification but have not been current for at least 12 consecutive months; or (e) have been modified through a process that included forbearance on a portion of the outstanding balance. The total UPB of loans where the whole loan market is the principal market was approximately $101.2 billion and $110.0 billion as of December 31, 2013 and 2012, respectively. We determined that the principal market for all other loans, regardless of whether the loan is currently securitized or whether the loan is eligible for purchase under current underwriting standards, is the GSE securitization market. The total UPB of loans where the GSE securitization market is the principal market was approximately $1.5 trillion as of both December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Whole Loan Market as Principal Market | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans where we determine that the principal market is the whole loan market are valued using the median of external sources. Under the median of external sources technique, prices for single-family loans are obtained from multiple dealers. These dealers reference market activity for deeply delinquent and modified loans, where available, and use internal models and their judgment to determine default rates, severity rates, home prices, and risk premiums. Single-family mortgage loans valued using this technique are classified as Level 3 due to the low volume and level of activity in this market. | ||||||||||||||||||||||||||||||||||||||||||||||||
GSE Securitization Market as Principal Market | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans where we determine that the principal market is the GSE securitization market are valued using the build-up technique. Under the build-up technique, the fair value of single-family mortgage loans is based on the estimate of the price we would receive if we were to securitize the loans. These loans are valued by starting with benchmark security pricing for actively traded mortgage-related securities with similar characteristics; adding in the value of our management and guarantee fee, which is the compensation we receive for performing our management and guarantee activities; and subtracting the value of the credit obligation related to performing our guarantee. | ||||||||||||||||||||||||||||||||||||||||||||||||
The security price is based on benchmark security pricing for similar actively traded mortgage-related securities, adjusted as necessary based on security characteristics. This security pricing process is consistent with our approach for valuing similar securities retained in our investment portfolio or issued as debt to third parties. See “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Investments in Securities.” | ||||||||||||||||||||||||||||||||||||||||||||||||
The management and guarantee fee is valued by estimating the present value of the additional cash flows related to our management and guarantee fee. The management and guarantee fees for the majority of our loans are valued using third-party dealer prices on hypothetical interest-only securities based on collateral characteristics from our single-family credit guarantee portfolio. For loans where third-party market data is not readily available, we use a discounted cash flow approach, leveraging the dealer prices received for the majority of our loans and including only those cash flows related to our management and guarantee fee. | ||||||||||||||||||||||||||||||||||||||||||||||||
The credit obligation related to performing our guarantee is valued by estimating the fair value of the related credit and other costs (such as general and administrative expenses) and benefits (such as credit enhancements) inherent in our guarantee obligation. For loans that qualify for purchase under current underwriting standards, we use the delivery and guarantee fees that we charge under our current market pricing as a market observation. For loans that do not qualify for purchase based on current underwriting standards, we use our internal credit models, which incorporate factors such as loan characteristics, loan performance status information, expected losses, and risk premiums. | ||||||||||||||||||||||||||||||||||||||||||||||||
Single-family mortgage loans that qualify for purchase under current underwriting standards are classified as Level 2 as the significant inputs used for the valuation of these loans, such as security pricing, our externally published credit pricing matrices, and third-party prices used in valuing the management and guarantee fee, are observable, while the unobservable inputs, such as general and administrative expenses and credit enhancements, are not significant to the fair value measurement. Single-family mortgage loans that do not qualify for purchase under current underwriting standards are classified as Level 3 as the credit cost is based on our internal credit models which use unobservable inputs that are significant to the fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||||
HARP Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
For loans that have been refinanced under HARP, we value our guarantee obligation using the delivery and guarantee fees currently charged by us under that initiative. HARP loans valued using this technique are classified as Level 2, as the fees charged by us are observable. If, subsequent to delivery, the refinanced loan no longer qualifies for purchase based on current underwriting standards (such as becoming past due or being modified), the fair value of the guarantee obligation is then measured using: (a) our internal credit models; or (b) the median of external sources, if the loan’s principal market has changed to the whole loan market. HARP loans valued using either of these techniques are classified as Level 3 as significant inputs are unobservable. The majority of our HARP loans are classified as Level 2. | ||||||||||||||||||||||||||||||||||||||||||||||||
The total compensation that we receive for the delivery of a HARP loan reflects the pricing that we are willing to offer because HARP is a part of a broader government program intended to provide assistance to homeowners and prevent foreclosures. When HARP ends (currently scheduled for December 31, 2015), the beneficial pricing afforded to HARP loans will no longer be reflected in our delivery and guarantee fee pricing structure. If these benefits were not reflected in the pricing for these loans, the fair value of our mortgage loans would have decreased by $18.5 billion and $11.2 billion as of December 31, 2013 and 2012, respectively. The total fair value of the loans in our portfolio that reflects the pricing afforded to HARP loans as of December 31, 2013 and 2012 as presented in our consolidated fair value balance sheets is $145.0 billion and $153.1 billion, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
For a discussion of the techniques used to determine the fair value of held-for-sale and impaired held-for-investment multifamily mortgage loans, see “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Mortgage Loans, Held-for-Sale” and “— Mortgage Loans, Held-for-Investment,” respectively. Non-impaired multifamily mortgage loans are primarily valued using market prices from a third-party pricing service that uses a discounted cash-flow technique. Under this technique, the pricing service forecasts cash flows for the various mortgage loans and discounts them at a market rate, including a spread that is based on pricing data obtained from purchases and sales of similar mortgage loans, adjusted based on the mortgage's current LTV ratio and DSCR. The significant unobservable inputs used in the fair value measurement of these loans are the current LTV ratio and DSCR. These loans are classified as Level 3 as significant inputs used in the fair value measurement are unobservable. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt, Net | ||||||||||||||||||||||||||||||||||||||||||||||||
Total debt, net represents debt securities of consolidated trusts held by third parties and other debt that we issued to finance our assets. On our consolidated GAAP balance sheets, total debt, net, excluding debt securities for which the fair value option has been elected, is reported at amortized cost, which is net of deferred items, including premiums, discounts, and hedging-related basis adjustments. | ||||||||||||||||||||||||||||||||||||||||||||||||
For debt securities of consolidated trusts, the valuation techniques we use are similar to the techniques we use to value our investments in agency securities for GAAP purposes. See “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Investments in Securities — Mortgage-Related Securities — Agency Securities” for additional information regarding the valuation techniques we use. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt includes short-term zero-coupon discount notes, callable debt, and non-callable debt. Short-term zero-coupon discount notes are valued using a yield analysis technique. Under this technique, the debt instruments are valued using published yield matrices which are based on the days to maturity of the debt and converted into a price. Significant inputs used in this technique are the published yield matrices. Short-term zero-coupon discount notes are classified as Level 2 as the significant inputs used are observable in active markets. Other debt securities, including both callable and non-callable debt, are valued using a single external source or median of external sources. These debt securities generally have observable market pricing and are classified as Level 2. However, certain other debt securities are classified as Level 3 when there is a low volume or level of activity in the market for those types of debt securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total debt, net for which we have elected the fair value option includes certain debt securities of consolidated trusts held by third parties and certain other debt. We report these items at fair value on our GAAP consolidated balance sheets. See “Valuation Techniques for Assets and Liabilities Measured in Our Consolidated Balance Sheets at Fair Value — Debt Securities of Consolidated Trusts Held by Third Parties, at Fair Value” and “— Other Debt, at Fair Value” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee Obligation | ||||||||||||||||||||||||||||||||||||||||||||||||
Our guarantee obligation is classified as Level 3 as significant inputs used in the fair value measurement are unobservable. The technique for estimating the fair value of our guarantee obligation is described in the “Mortgage Loans — Single-Family Loans” section above. | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Option | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option for certain types of investments in securities, multifamily held-for-sale mortgage loans, and certain debt. | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option for certain mortgage-related securities to better reflect the natural offset these securities provide to fair value changes recorded historically on our guarantee asset at the time of our election. In addition, upon adoption of the accounting guidance for the fair value option, we elected this option for securities within the scope of the accounting guidance for investments in beneficial interests in securitized financial assets to better reflect any valuation changes that would occur subsequent to impairment write-downs previously recorded on these instruments. Related interest income continues to be reported as interest income in our consolidated statements of comprehensive income. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Investments in Securities” for additional information about the measurement and recognition of interest income on investments in securities. For information regarding the net unrealized gains (losses) on trading securities, which include gains (losses) for other items that are not selected for the fair value option, see Gains (loss) on trading securities within “Table 13.2 — Segment Earnings and Reconciliation to GAAP Results." | ||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily Held-For-Sale Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option for multifamily mortgage loans that were purchased for securitization. These multifamily mortgage loans are classified as held-for-sale mortgage loans in our consolidated balance sheets to reflect our intent to sell in the future. Related interest income continues to be reported as interest income in our consolidated statements of comprehensive income. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Mortgage Loans” for additional information about the measurement and recognition of interest income on our mortgage loans. | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option for certain debt securities of consolidated trusts held by third parties. These consist of certain multifamily K Certificates where we are in a first loss position and certain REMIC interest-only mortgage-related debt securities. We elected the fair value option on these debt instruments as they contain embedded derivatives that require bifurcation. Fair value changes for debt securities of consolidated trusts held by third parties are recorded in other income in our consolidated statements of comprehensive income. Related interest expense continues to be reported as interest expense in our consolidated statements of comprehensive income. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Debt Securities Issued” for additional information about the measurement and recognition of interest expense on debt securities issued. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Debt | ||||||||||||||||||||||||||||||||||||||||||||||||
We elected the fair value option on: (a) STACR debt notes; (b) extendible variable-rate notes containing quarterly options for investors to extend the maturity of the notes; and (c) foreign-currency denominated debt. We elected the fair value option for STACR debt notes and extendible variable-rate notes as they contain potential embedded derivatives requiring bifurcation. In the case of foreign-currency denominated debt, we entered into derivative transactions that effectively converted these instruments to U.S. dollar denominated floating rate instruments. We elected the fair value option on these debt instruments to better reflect the economic offset that naturally results from the debt due to changes in interest rates. Fair value changes for debt for which we have elected the fair value option are recorded in other income in our consolidated statements of comprehensive income. Related interest expense continues to be reported as interest expense in our consolidated statements of comprehensive income. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Debt Securities Issued” for additional information about the measurement and recognition of interest expense on debt securities issued. | ||||||||||||||||||||||||||||||||||||||||||||||||
The table below presents the fair value and UPB related to certain items for which we have elected the fair value option at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 16.7 — Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | Other Debt - | Multifamily | Other Debt - | |||||||||||||||||||||||||||||||||||||||||||||
Held-For-Sale | Long Term | Held-For-Sale | Long Term | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 8,727 | $ | 2,683 | $ | 14,238 | $ | 2,187 | ||||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | 8,721 | 2,635 | 13,972 | 2,167 | ||||||||||||||||||||||||||||||||||||||||||||
Difference | $ | 6 | $ | 48 | $ | 266 | $ | 20 | ||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value under the Fair Value Option Election | ||||||||||||||||||||||||||||||||||||||||||||||||
We recorded gains (losses) of $(0.3) billion, $1.0 billion and $0.8 billion for the years ended December 31, 2013, 2012, and 2011, respectively, from the change in fair value on multifamily held-for-sale mortgage loans recorded at fair value in other income in our consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) on debt securities with the fair value option elected were $(37) million, $16 million, and $91 million for the years ended December 31, 2013, 2012, and 2011, respectively, and were recorded in other income in our consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value attributable to instrument-specific credit risk were not material for the years ended December 31, 2013, 2012, or 2011 for any assets or liabilities for which we elected the fair value option. |
Legal_Contingencies
Legal Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
LEGAL CONTINGENCIES | ' | |
NOTE 17: LEGAL CONTINGENCIES | ||
We are involved as a party in a variety of legal and regulatory proceedings arising from time to time in the ordinary course of business including, among other things, contractual disputes, personal injury claims, employment-related litigation and other legal proceedings incidental to our business. We are frequently involved, directly or indirectly, in litigation involving mortgage foreclosures. From time to time, we are also involved in proceedings arising from our termination of a seller/servicer’s eligibility to sell mortgages to, and/or service mortgages for, us. In these cases, the former seller/servicer sometimes seeks damages against us for wrongful termination under a variety of legal theories. In addition, we are sometimes sued in connection with the origination or servicing of mortgages. These suits typically involve claims alleging wrongful actions of seller/servicers. Our contracts with our seller/servicers generally provide for indemnification against liability arising from their wrongful actions with respect to mortgages sold to or serviced for Freddie Mac. | ||
Litigation and claims resolution are subject to many uncertainties and are not susceptible to accurate prediction. In accordance with the accounting guidance for contingencies, we reserve for litigation claims and assessments asserted or threatened against us when a loss is probable (as defined in such guidance) and the amount of the loss can be reasonably estimated. | ||
During 2013, we paid approximately $10 million for the advancement of legal fees and expenses of former officers pursuant to our indemnification obligations to them. These fees and expenses related to certain of the matters described below, and are being partially offset by insurance payments. This figure does not include certain administrative support costs and certain costs related to document production and storage. | ||
Putative Securities Class Action Lawsuits | ||
Ohio Public Employees Retirement System (“OPERS”) vs. Freddie Mac, Syron, et al. This putative securities class action lawsuit was filed against Freddie Mac and certain former officers on January 18, 2008 in the U.S. District Court for the Northern District of Ohio purportedly on behalf of a class of purchasers of Freddie Mac stock from August 1, 2006 through November 20, 2007. FHFA later intervened as Conservator. The plaintiff alleges that the defendants violated federal securities laws by making false and misleading statements concerning our business, risk management, and the procedures we put into place to protect the company from problems in the mortgage industry. The plaintiff seeks unspecified damages and interest, and reasonable costs and expenses, including attorney and expert fees. The plaintiff amended its complaint on several occasions. Defendants filed motions to dismiss the second and third amended complaints, which the Court denied. On April 13, 2013, the judge who had presided over the case since 2008 recused himself, and the case was reassigned to a new judge. On August 23, 2013, the new judge granted defendants' motion to vacate the previous judge's orders denying defendants' motions to dismiss. Defendants filed new motions to dismiss the complaint on October 8, 2013. | ||
At present, it is not possible for us to predict the probable outcome of this lawsuit or any potential effect on our business, financial condition, liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or range of possible loss in the event of an adverse judgment in the foregoing matter due to the following factors, among others: the inherent uncertainty of pre-trial litigation; the fact that the Court has not yet ruled upon defendants' new motion to dismiss the complaint; and the fact that the Court has not yet ruled upon motions for class certification or summary judgment. In particular, absent the certification of a class, the identification of a class period, and the identification of the alleged statement or statements that survive dispositive motions, we cannot reasonably estimate any possible loss or range of possible loss. | ||
Kuriakose vs. Freddie Mac, Syron, Piszel and Cook. Another putative class action lawsuit was filed against Freddie Mac and certain former officers on August 15, 2008 in the U.S. District Court for the Southern District of New York for alleged violations of federal securities laws. The case is purportedly brought on behalf of a class of purchasers of Freddie Mac stock from November 21, 2007 through September 7, 2008. FHFA later intervened as Conservator. The plaintiffs claimed that defendants made false and misleading statements about Freddie Mac’s business that artificially inflated the price of Freddie Mac’s common stock, and sought unspecified damages, costs, and attorneys’ fees. The plaintiffs twice amended their complaint, and sought leave to amend a third time. On September 24, 2012, the Court granted with prejudice defendants’ motions to dismiss plaintiffs’ second amended complaint in its entirety, denied plaintiffs’ motion to file a third amended complaint, and directed that the case be closed. Judgment was entered in favor of the defendants on September 27, 2012. On October 26, 2012, plaintiffs filed a notice of appeal in the U.S. Court of Appeals for the Second Circuit. By order dated November 5, 2013, the U.S. Court of Appeals for the Second Circuit affirmed the District Court's decisions granting defendants' motions to dismiss and denying plaintiffs' motion to file a third amended complaint. On November 19, 2013, plaintiffs filed a petition for panel rehearing, which was denied. | ||
At present, it is not possible for us to predict the probable outcome of this lawsuit or any potential effect on our business, financial condition, liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or range of possible loss in the event of an adverse judgment in the foregoing matter due to the following factors, among others: the inherent uncertainty of the appellate process, including the outcome of any petition for certiorari; the inherent uncertainty of pre-trial litigation in the event the case is ultimately remanded to the District Court in whole or in part; and the fact that the parties have not briefed and the District Court has not yet ruled upon motions for class certification or summary judgment. In particular, absent resolution of the appellate process, the certification of a class, the identification of a class period, and the identification of the alleged statement or statements that survive dispositive motions, we cannot reasonably estimate any possible loss or range of possible loss. | ||
Related Third Party Litigation and Indemnification Requests | ||
On December 16, 2011, the SEC announced that it had charged three former executives of Freddie Mac with securities laws violations. These executives are former Chairman of the Board and Chief Executive Officer Richard F. Syron, former Executive Vice President and Chief Business Officer Patricia L. Cook, and former Executive Vice President for the single-family guarantee business Donald J. Bisenius. | ||
On September 23, 2008, a plaintiff filed a putative class action securities lawsuit in the U.S. District Court for the Southern District of New York styled Mark vs. Goldman, Sachs & Co., J.P. Morgan Chase & Co., and Citigroup Global Markets Inc. On January 29, 2009, another plaintiff filed a putative class action lawsuit in the same Court styled Kreysar vs. Syron, et al. The cases, which were subsequently consolidated by the Court, concern the company’s November 29, 2007 public offering of $6 billion of 8.375% Fixed to Floating Rate Non-Cumulative Perpetual Preferred Stock. | ||
In the consolidated complaint, plaintiffs alleged that three former Freddie Mac officers (including Syron and former Executive Vice President and Chief Financial Officer Anthony S. Piszel), certain underwriters and Freddie Mac’s auditor violated federal securities laws by making material false and misleading statements in connection with the company’s November 2007 public offering. The complaint further alleged that certain defendants and others made additional false statements following the offering. After a series of motions and amendments to the complaint, only Syron and Piszel remain as defendants. | ||
The plaintiffs moved for class certification, which motion was ultimately denied by the Court. On May 31, 2012, the U.S. Court of Appeals for the Second Circuit denied plaintiffs’ motion for leave to appeal on an interlocutory basis the denial of class certification. In August 2012, plaintiffs sought leave to file another motion for class certification, which request the Court denied on September 25, 2012. | ||
Freddie Mac is not named as a defendant in the consolidated lawsuit, but the underwriters previously gave notice to Freddie Mac of their intention to seek full indemnity and contribution under the underwriting agreement in this case, including reimbursement of fees and disbursements of their legal counsel. At present, it is not possible for us to predict the probable outcome of the lawsuit or any potential effect on our business, financial condition, liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or range of possible loss in the event of an adverse judgment in the foregoing matter due to the inherent uncertainty of litigation and the fact that plaintiffs may appeal the denial of class certification. Absent the certification of a specified class, the identification of a class period, and the identification of the alleged statement or statements that survive dispositive motions, we cannot reasonably estimate any possible loss or range of possible loss. | ||
Two other lawsuits have been filed against certain underwriters of the company’s November 2007 public offering. Plaintiffs in the cases generally allege that the underwriters made materially misleading statements and omissions in connection with the offering. Freddie Mac is not named as a defendant in either lawsuit. On July 6, 2011, a lawsuit styled Liberty Mutual Insurance Company, Peerless Insurance Company, Employers Insurance Company of Wausau, Safeco Corporation and Liberty Life Assurance Company of Boston vs. Goldman, Sachs & Co. was filed in the U.S. District Court for Massachusetts. In a second lawsuit, Western and Southern Life Insurance Company and others asserted claims against GS Mortgage Securities Corp., Goldman Sachs Mortgage Company and Goldman Sachs & Co. in the Court of Common Pleas, Hamilton County, Ohio. | ||
Lehman Bankruptcy | ||
On September 15, 2008, Lehman Brothers Holdings Inc. ("Lehman") filed a chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of New York. Thereafter, many of Lehman’s U.S. subsidiaries and affiliates also filed bankruptcy petitions (collectively, the “Lehman Entities”). Freddie Mac had numerous relationships with the Lehman Entities which gave rise to several claims. On September 22, 2009, Freddie Mac filed proofs of claim in the Lehman bankruptcies aggregating approximately $2.1 billion. On December 6, 2011, the Court confirmed Lehman’s chapter 11 plan of liquidation (the "Liquidation Plan"), which provides for the liquidation of the bankruptcy estate’s assets over the next three years. Our claims consist primarily of (a) a $1.2 billion claim (for which we asserted priority status) relating to losses incurred on short-term lending transactions with certain Lehman Entities; and (b) an $869 million unsecured claim relating to Lehman’s repurchase obligations for breaches of representations and warranties on single-family loans sold to us. The Liquidation Plan addressed these claims as follows: | ||
• | Short-term lending claim: The Liquidation Plan treated this claim as a senior unsecured claim, pursuant to which we would have ultimately received an estimated distribution of approximately 21% (or approximately $250 million). However, the Liquidation Plan left open for subsequent determination whether our claim would be accorded priority status, and the Lehman estate set aside $1.2 billion to pay our claim in full if, after litigation or settlement, it was allowed as a priority claim. On September 13, 2013, Lehman filed a motion to have the Court classify and allow the claim as a senior unsecured claim. Freddie Mac opposed the motion and, as a result, the issue of the proper classification of the claim was in litigation between the parties. | |
• | Repurchase claim: The Liquidation Plan did not adjudge or allow this claim, but instead permitted claims allowance proceedings to continue. To the extent the claim was allowed, it would have been treated as a general unsecured claim, for which Freddie Mac would ultimately have received a distribution of approximately 19.9% of the allowed amount. | |
On February 12, 2014, Freddie Mac and Lehman entered into a settlement agreement, under which Lehman would pay us a lump sum of $767 million to resolve our claims. On February 19, 2014, the settlement was approved by the Court. | ||
Taylor, Bean & Whitaker and Ocala Funding, LLC Bankruptcies | ||
On August 24, 2009, TBW, which had been one of our single-family seller/servicers, filed for bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida. We entered into a settlement regarding the TBW bankruptcy in 2011. However, we continue to be involved in certain matters relating to the TBW bankruptcy, as described below. | ||
On July 10, 2012, Ocala Funding, LLC, or Ocala, which is a wholly owned subsidiary of TBW, filed for bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida. In connection with the bankruptcy filing, Ocala also filed a motion seeking an examination of and subsequent document discovery from Freddie Mac and FHFA, asserting that it has “viable, legitimate and valuable causes of action against Freddie Mac” to recover approximately $805 million of funds that were allegedly transferred from Ocala to Freddie Mac custodial accounts maintained by TBW, prior to the TBW bankruptcy. In its filings, Ocala also indicated that it wishes to use the examination to obtain information relating to whether it may have other claims against Freddie Mac relating to TBW’s fraudulent conduct prior to the TBW bankruptcy. In June 2013, the Court confirmed Ocala’s plan of liquidation. The plan established a liquidation trust, and authorizes it to investigate and initiate actions to recover on claims and causes of action, such as those asserted against Freddie Mac. Discovery is proceeding. | ||
On or about May 14, 2010, certain underwriters at Lloyds, London and London Market Insurance Companies brought an adversary proceeding in the U.S. Bankruptcy Court for the Middle District of Florida against TBW, Freddie Mac and other parties seeking a declaration rescinding $90 million of mortgage bankers bonds providing fidelity and errors and omissions insurance coverage. Several excess insurers on the bonds thereafter filed similar claims in that action. Freddie Mac has filed a proof of loss under the bonds. The underwriters moved for partial summary judgment against Freddie Mac in April 2013. Discovery is proceeding. We are unable at this time to estimate our potential recovery, if any, in this case. | ||
IRS Litigation | ||
In 2010 and 2011, we received Statutory Notices from the IRS assessing a total of $3.0 billion of additional income taxes and penalties for the 1998 to 2007 tax years. We filed a petition with the U.S. Tax Court on October 22, 2010 in response to the Statutory Notices for the 1998 to 2005 tax years and, in 2012, paid the tax assessed in the Statutory Notices for the years 2006 and 2007 of $36 million. In the fourth quarter of 2012 we reached an agreement in principle with the IRS for all years, including 2006 and 2007, to favorably resolve the matters in dispute and reduced the previously unrecognized tax benefits to zero. We are currently working with the IRS to finalize the stipulation of settled issues and closing agreement, and expect that a final decision can be entered within the next 12 months. | ||
Lawsuits Involving Real Estate Transfer Taxes | ||
Beginning in 2011 in Michigan, counties in numerous states filed lawsuits challenging Freddie Mac and Fannie Mae’s statutory exemption from real estate transfer taxes imposed on the transfer of real property for which Freddie Mac or Fannie Mae was the grantor or grantee. Currently, approximately 30 lawsuits are pending in 16 states and the District of Columbia, including 19 appeals. We have received favorable rulings from district courts in 35 of the cases (seven of which have been affirmed on appeal), and the only unfavorable ruling was overturned on appeal in May 2013. Plaintiffs in these cases are generally seeking a declaration that Freddie Mac and Fannie Mae are not exempt from transfer taxes, damages for unpaid transfer taxes, as well as other items, which may include penalties, interest, liquidated penalties, pre-judgment interest, costs and attorneys’ fees. In these actions, FHFA, Freddie Mac and Fannie Mae assert that the enterprises are not liable for the transfer taxes based on federal statutory tax exemptions applicable to each. | ||
At present, it is not possible for us to predict the probable outcome of the remaining lawsuits or any potential effect on our business, financial condition, liquidity, or results of operation. In addition, we are unable to reasonably estimate the possible loss or range of possible loss with respect to the remaining lawsuits due to the following factors, among others: (a) none of the plaintiffs have demanded a stated amount of damages they believe are due; and (b) discovery regarding the amount of damages has not yet been conducted. | ||
LIBOR Lawsuit | ||
On March 14, 2013, Freddie Mac filed a lawsuit in the U.S. District Court for the Eastern District of Virginia against the British Bankers Association and the 16 U.S. Dollar LIBOR panel banks and a number of their affiliates. The case was subsequently transferred to the U.S. District Court for the Southern District of New York. The complaint alleges, among other things, that the defendants fraudulently and collusively suppressed LIBOR, a benchmark interest rate indexed to trillions of dollars of financial products, and asserts claims for antitrust violations, breach of contract, tortious interference with contract and fraud. Freddie Mac filed an amended complaint on July 22, 2013. | ||
Litigation Concerning the Purchase Agreement | ||
In July and September 2013, four lawsuits were filed against us in the U.S. District Court for the District of Columbia concerning the August 2012 amendment to the Purchase Agreement. It is possible that similar lawsuits will be filed in the future. The lawsuits are as follows: | ||
• | A putative class action lawsuit filed on July 29, 2013 styled Cacciapelle and Bareiss vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and FHFA; | |
• | A putative class action lawsuit filed on July 30, 2013 styled American European Insurance Company vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and FHFA; | |
• | A putative class action and shareholder derivative lawsuit filed on September 18, 2013 styled Marneu Holdings, Co. vs. FHFA, Treasury, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; and | |
• | A lawsuit filed on September 20, 2013 styled Arrowood Indemnity Company vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, FHFA and Treasury. | |
The Cacciapelle and American European Insurance Company lawsuits were filed purportedly on behalf of a class of purchasers of junior preferred stock issued by Freddie Mac or Fannie Mae who held stock prior to, and as of, August 17, 2012. The Marneu lawsuit was filed purportedly on behalf of a class of purchasers of junior preferred stock and purchasers of common stock issued by Freddie Mac or Fannie Mae over a not-yet-defined period of time. Plaintiffs in the Arrowood lawsuit allege that they are holders of junior preferred stock issued by Freddie Mac and Fannie Mae. (For purposes of this discussion, junior preferred stock refers to the various series of preferred stock of Freddie Mac and Fannie Mae other than the senior preferred stock issued to Treasury.) | ||
In the lawsuits, plaintiffs allege that the amendment to the Purchase Agreement in August 2012 (which implemented the net worth sweep dividend provisions of the senior preferred stock) breached Freddie Mac's and Fannie Mae's respective contracts with the holders of junior preferred stock and common stock and the covenant of good faith and fair dealing inherent in such contracts. Plaintiffs seek unspecified damages, equitable and injunctive relief, and costs and expenses, including attorney and expert fees. Plaintiffs in the Arrowood lawsuit also request that, if injunctive relief is not granted, the Arrowood plaintiffs be awarded damages against the defendants in an amount to be determined including, but not limited to, the aggregate par value of their junior preferred stock, the total of which they state is $42,297,500. | ||
Plaintiffs in the Marneu and Arrowood lawsuits also make certain claims against, and seek certain remedies from, Treasury and FHFA. | ||
The Court consolidated three of the cases (Cacciapelle, American European Insurance Company and Marneu) together in a new case styled In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations. A consolidated amended complaint was filed on December 3, 2013. The consolidated amended complaint makes essentially the same allegations against Freddie Mac as the original complaints described above. FHFA, joined by Freddie Mac and Fannie Mae, moved to dismiss the consolidated complaint and the other related cases (including Arrowood) on January 17, 2014. Treasury filed a motion to dismiss the same day. | ||
At present, it is not possible for us to predict the probable outcome of these lawsuits or any potential effect on our business, financial condition, liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or range of possible loss in the event of an adverse judgment in the foregoing matters due to a number of factors, including the inherent uncertainty of pre-trial litigation. In addition, with respect to the consolidated lawsuits, the plaintiffs have not demanded a stated amount of damages they believe are due and the Court has not certified a class. | ||
We received a letter dated October 16, 2013 addressed to the Chief Executive Officer, the Board of Directors and the then Acting Director of FHFA, purportedly on behalf of holders of common stock and junior preferred stock of Freddie Mac. We received a similar letter dated January 6, 2014, and two more dated January 7, 2014, each on behalf of a plaintiff in the consolidated lawsuits. The letters demand that Freddie Mac commence legal action against the U.S. government to recover all losses sustained by Freddie Mac as a result of the August 2012 amendment to the Purchase Agreement. The letters also demand that Freddie Mac take action to terminate the August 2012 amendment to the Purchase Agreement. On January 15, 2014, FHFA (as Conservator) informed the purported shareholders named in the October 16, 2013 letter that the Conservator does not intend to authorize Freddie Mac or its directors or officers on behalf of Freddie Mac to take the actions that such shareholders demand. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Mortgage Banking [Abstract] | ' | |||||||
REGULATORY CAPITAL | ' | |||||||
NOTE 18: REGULATORY CAPITAL | ||||||||
On October 9, 2008, FHFA announced that it was suspending capital classification of us during conservatorship in light of the Purchase Agreement. FHFA continues to closely monitor our capital levels, but the existing statutory and FHFA-directed regulatory capital requirements are not binding during conservatorship. We continue to provide quarterly submissions to FHFA on minimum capital, but no longer provide submissions on risk-based capital. | ||||||||
Our regulatory minimum capital is a leverage-based measure that is generally calculated based on GAAP and reflects a 2.50% capital requirement for on-balance sheet assets and a 0.45% capital requirement for off-balance sheet obligations. Based upon our adoption of amendments to the accounting guidance for transfers of financial assets and consolidation of VIEs, we determined that, under the new consolidation guidance, we are the primary beneficiary of trusts that issue our single-family PCs and certain Other Guarantee Transactions and, therefore, effective January 1, 2010, we consolidated on our balance sheet the assets and liabilities of these trusts. Pursuant to regulatory guidance from FHFA, our minimum capital requirement was not affected by adoption of these amendments. Specifically, upon adoption of these amendments, FHFA directed us, for purposes of minimum capital, to continue reporting single-family PCs and certain Other Guarantee Transactions held by third parties using a 0.45% capital requirement. FHFA reserves the authority under the GSE Act to raise the minimum capital requirement for any of our assets or activities. | ||||||||
Regulatory Capital Standards | ||||||||
The GSE Act established minimum, critical, and risk-based capital standards for us, however per guidance received from FHFA we no longer are required to submit risk-based capital reports to FHFA. | ||||||||
Prior to our entry into conservatorship, those standards determined the amounts of core capital that we were to maintain to meet regulatory capital requirements. Core capital consisted of the par value of outstanding common stock (common stock issued less common stock held in treasury), the par value of outstanding non-cumulative, perpetual preferred stock, additional paid-in capital and retained earnings (accumulated deficit), as determined in accordance with GAAP. | ||||||||
Minimum Capital | ||||||||
The minimum capital standard required us to hold an amount of core capital that was generally equal to the sum of 2.50% of aggregate on-balance sheet assets and approximately 0.45% of the sum of our PCs held by third parties and other aggregate off-balance sheet obligations. | ||||||||
Critical Capital | ||||||||
The critical capital standard required us to hold an amount of core capital that was generally equal to the sum of 1.25% of aggregate on-balance sheet assets and approximately 0.25% of the sum of our PCs held by third parties and other aggregate off-balance sheet obligations. | ||||||||
Performance Against Regulatory Capital Standards | ||||||||
The table below summarizes our minimum capital requirements and deficits and net worth. | ||||||||
Table 18.1 — Net Worth and Minimum Capital | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(in millions) | ||||||||
GAAP net worth(1) | $ | 12,835 | $ | 8,827 | ||||
Core capital (deficit)(2)(3) | $ | (59,495 | ) | $ | (60,571 | ) | ||
Less: Minimum capital requirement(2) | 21,404 | 22,063 | ||||||
Minimum capital surplus (deficit)(2) | $ | (80,899 | ) | $ | (82,634 | ) | ||
-1 | Net worth (deficit) represents the difference between our assets and liabilities under GAAP. | |||||||
-2 | Core capital and minimum capital figures for December 31, 2013 are estimates. FHFA is the authoritative source for our regulatory capital. | |||||||
-3 | Core capital excludes certain components of GAAP total equity (deficit) (i.e., AOCI and the liquidation preference of the senior preferred stock) as these items do not meet the statutory definition of core capital. | |||||||
Following our entry into conservatorship and consistent with the objectives of conservatorship, we have focused our risk and capital management on, among other things, maintaining a positive balance of GAAP equity in order to reduce the likelihood that we will need to make additional draws on the Purchase Agreement with Treasury. The Purchase Agreement provides that, if FHFA determines as of quarter end that our liabilities have exceeded our assets under GAAP, Treasury will contribute funds to us in an amount at least equal to the difference between such liabilities and assets. | ||||||||
Under the GSE Act, FHFA must place us into receivership if FHFA determines in writing that our assets are and have been less than our obligations for a period of 60 days. FHFA has notified us that the measurement period for any mandatory receivership determination with respect to our assets and obligations would commence no earlier than the SEC public filing deadline for our quarterly or annual financial statements and would continue for 60 calendar days after that date. FHFA has advised us that, if, during that 60-day period, we receive funds from Treasury in an amount at least equal to the deficiency amount under the Purchase Agreement, the Director of FHFA will not make a mandatory receivership determination. If funding has been requested under the Purchase Agreement to address a deficit in our net worth, and Treasury is unable to provide us with such funding within the 60-day period specified by FHFA, FHFA would be required to place us into receivership if our assets remain less than our obligations during that 60-day period. | ||||||||
At December 31, 2013, our assets exceeded our liabilities under GAAP; therefore no draw is being requested from Treasury under the Purchase Agreement. As of December 31, 2013, our aggregate funding received from Treasury under the Purchase Agreement was $71.3 billion. This aggregate funding amount does not include the initial $1 billion liquidation preference of senior preferred stock that we issued to Treasury in September 2008 as an initial commitment fee and for which no cash was received. We paid quarterly dividends of $5.8 billion, $7.0 billion, $4.4 billion, and $30.4 billion on the senior preferred stock in cash in March 2013, June 2013, September 2013, and December 2013, respectively, at the direction of the Conservator. | ||||||||
Subordinated Debt Commitment | ||||||||
In October 2000, we announced our adoption of a series of commitments designed to enhance market discipline, liquidity and capital. In September 2005, we entered into a written agreement with FHFA that updated those commitments and set forth a process for implementing them. FHFA, as Conservator of Freddie Mac, has suspended the requirements in the September 2005 agreement with respect to issuance, maintenance and reporting and disclosure of Freddie Mac subordinated debt during the term of conservatorship and thereafter until directed otherwise. |
Selected_Financial_Statement_L
Selected Financial Statement Line Items | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Selected Financial Statement Data [Abstract] | ' | |||||||
Selected Financial Statement Line Items | ' | |||||||
NOTE 19: SELECTED FINANCIAL STATEMENT LINE ITEMS | ||||||||
Settlement agreements primarily related to lawsuits regarding our investments in certain non-agency mortgage-related securities is a significant component of other income during 2013. For more information, see “NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS — Non-Agency Mortgage-Related Security Issuers.” | ||||||||
The table below presents the significant components of other assets and other liabilities on our consolidated balance sheets. | ||||||||
Table 19.1 — Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(in millions) | ||||||||
Other assets: | ||||||||
Accounts and other receivables(1) | $ | 4,367 | $ | 10,091 | ||||
Guarantee asset | 1,611 | 1,029 | ||||||
All other | 2,561 | 2,645 | ||||||
Total other assets | $ | 8,539 | $ | 13,765 | ||||
Other liabilities: | ||||||||
Servicer liabilities | $ | 2,277 | $ | 3,304 | ||||
Guarantee obligation | 1,522 | 1,004 | ||||||
Accounts payable and accrued expenses | 886 | 984 | ||||||
All other | 807 | 807 | ||||||
Total other liabilities | $ | 5,492 | $ | 6,099 | ||||
-1 | Primarily consists of servicer receivables. | |||||||
END OF CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. | ||
Our current accounting policies are described below. We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going concern and in accordance with the delegation of authority from FHFA to our Board of Directors and management. Certain amounts in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. | ||
We evaluate the materiality of identified errors in the financial statements using both an income statement, or “rollover,” and a balance sheet, or “iron curtain,” approach, based on relevant quantitative and qualitative factors. Net income (loss) includes certain adjustments to correct immaterial errors related to previously reported periods. | ||
We recorded the cumulative effect of the correction of certain miscellaneous errors related to previously reported periods in the year ended December 31, 2013. We concluded that these errors are not material individually or in the aggregate to our previously issued consolidated financial statements for any of the periods affected, or to our earnings for the full year ended December 31, 2013, or to the trend of earnings. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements requires us to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses and gains and losses during the reporting period. Management has made significant estimates in preparing the financial statements, including, but not limited to, establishing the allowance for loan losses and reserve for guarantee losses, valuing financial instruments and other assets and liabilities, assessing impairments on investments, and assessing our ability to realize net deferred tax assets. Actual results could be different from these estimates. | ||
Consolidation and Equity Method of Accounting | ' | |
For entities that are not VIEs, the usual condition of a controlling financial interest is ownership of a majority voting interest in an entity. We use the equity method of accounting for entities over which we have the ability to exercise significant influence, but not control. | ||
Consolidation and Equity Method of Accounting | ||
The consolidated financial statements include our accounts and those of our subsidiaries. We consolidate entities in which we have a controlling financial interest. All intercompany transactions have been eliminated in consolidation. | ||
For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE or non-VIE. A VIE is an entity: (a) that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by another party; (b) where the group of equity holders does not have: (i) the power, through voting rights or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance; (ii) the obligation to absorb the entity’s expected losses; or (iii) the right to receive the entity’s expected residual returns; or (c) where the voting rights of some investors are disproportionate to their obligation to absorb expected losses or their right to expected residual returns (or both) and substantially all of the entity’s activities are conducted on behalf of an investor that has disproportionately few voting rights. | ||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' | |
We consolidate VIEs in which we hold a controlling financial interest and are therefore deemed to be the primary beneficiary. An enterprise has a controlling financial interest in, and thus is deemed to be the primary beneficiary of, a VIE if it has both: (a) the power to direct the activities of the VIE that most significantly impact its economic performance; and (b) exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We perform ongoing assessments to determine if we are the primary beneficiary of the VIEs with which we are involved and, as such, conclusions may change over time as the nature and extent of our involvement changes. | ||
We use securitization trusts in our securities issuance process that are VIEs. We are the primary beneficiary of trusts that issue our single-family PCs and certain Other Guarantee Transactions. See “NOTE 3: VARIABLE INTEREST ENTITIES” for more information. When we transfer assets into a VIE that we consolidate at the time of the transfer (or shortly thereafter), we recognize the assets and liabilities of the VIE at the amounts that they would have been recognized if they had not been transferred, and no gain or loss is recognized on these transfers. For all other VIEs that we consolidate, we recognize the assets and liabilities of the VIE at fair value, and we recognize a gain or loss for the difference between: (a) the fair value of the consideration paid and the fair value of any noncontrolling interests held by third parties; and (b) the net amount, as measured on a fair value basis, of the assets and liabilities consolidated. | ||
Our multifamily Other Structured Securities use securitization trusts that meet the definition of a VIE. Our multifamily Other Structured Securities typically involve our acquisition of tax-exempt multifamily housing revenue bonds, placement of those bonds in a securitization trust, and issuance of tax-exempt senior certificates as well as subordinate certificates that provide structural credit protection. The housing revenue bonds are collateralized by low- and moderate-income multifamily housing developments. We guarantee the principal and interest on the senior certificates and, because the underlying collateral is not already guaranteed by us, we receive a management and guarantee fee. | ||
With respect to the securitization trusts used for our multifamily Other Structured Securities whose underlying assets are multifamily housing revenue bonds, our involvement with these trusts either does not provide us with any power that would enable us to direct the significant economic activities of these entities or rights to receive benefits or obligations to absorb losses that could potentially be significant to the trusts. As a result, we are not the primary beneficiary of, and therefore do not consolidate, the securitization trusts used for Other Structured Securities whose underlying assets are multifamily housing revenue bonds. | ||
Other Guarantee Transactions | ||
Other Guarantee Transactions are mortgage-related securities that we issue to third parties in exchange for non-Freddie Mac mortgage-related securities. Other Guarantee Transactions typically involve us purchasing either the senior tranches from a non-Freddie Mac senior-subordinated securitization or single-class pass-through securities, placing the acquired assets into a securitization trust, providing a guarantee of the principal and interest of the acquired assets and issuing securities backed by these assets. To the extent that we are deemed to be the primary beneficiary of such a securitization trust, we recognize the mortgage loans underlying the Other Guarantee Transaction as mortgage loans held-for-investment, at amortized cost. Correspondingly, we recognize the issued securities held by third parties as debt securities of consolidated trusts. However, to the extent we are not deemed to be the primary beneficiary of such a securitization trust, we initially recognize a guarantee asset and a guarantee obligation at fair value to the extent a management and guarantee fee is charged. We do not receive transaction fees, apart from our management and guarantee fee, for these transactions. | ||
Our primary Other Guarantee Transactions are multifamily K Certificates. In substantially all of these transactions, we guarantee only the most senior tranches of the securities and our initial involvement with the trusts that issue the K Certificates does not provide us with any power that would enable us to direct the significant economic activities of these entities. As a result, we are not the primary beneficiary of, and therefore do not consolidate, these trusts when K Certificates are initially issued. To the extent that our involvement with the trusts changes, we evaluate whether we have become the primary beneficiary. | ||
PC Trusts | ||
We are the primary beneficiary of VIE securitization trusts that issue our single-family PCs and therefore consolidate the assets and liabilities of these trusts at either their: (a) carrying value, if the underlying assets are contributed by us to the trust; or (b) fair value, for those securitization trusts established for our guarantor swap program. Mortgage loans underlying our issued single-family PCs are recognized on our consolidated balance sheets as mortgage loans held-for-investment by consolidated trusts, at amortized cost. The corresponding single-family PCs held by third parties are recognized on our consolidated balance sheets as debt securities of consolidated trusts held by third parties. Refer to “Mortgage Loans” and “Debt Securities Issued” below for further information on the subsequent accounting treatment of these assets and liabilities, respectively. | ||
REMICs and Other Structured Securities | ||
Our single-family REMICs and Other Structured Securities use resecuritization trusts that meet the definition of a VIE and represent beneficial interests in groups of PCs and other types of mortgage-related assets. We create these securities primarily by using PCs or previously issued REMICs and Other Structured Securities as collateral. Similar to our PCs, we guarantee the payment of principal and interest to the holders of the tranches of our REMICs and Other Structured Securities. However, for REMICs and Other Structured Securities where we have already guaranteed the underlying assets, there is no incremental exposure to credit loss assumed by us. | ||
With respect to the resecuritization trusts used for our single-family REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities, we do not have rights to receive benefits or obligations to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. Additionally, our involvement with these trusts does not provide us with any power that would enable us to direct the significant economic activities of these entities. Although we may be exposed to prepayment risk through our ownership of the securities issued by these trusts, we do not have the ability through our involvement with the trust to impact the economic risks to which we are exposed. As a result, we are not the primary beneficiary of, and therefore do not consolidate, the resecuritization trusts used for REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities, unless we hold substantially all of the outstanding beneficial interests that have been issued by the trust. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
Consistent with the accounting guidance for fair value measurements and disclosures, we use a three-level fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure the fair value of assets and liabilities, giving highest priority to quoted prices in active markets and lowest priority to unobservable inputs. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements under this hierarchy are distinguished among three levels: quoted market prices, observable inputs, and unobservable inputs. We use quoted market prices and valuation techniques that seek to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs. Our inputs are based on the assumptions a market participant would use in valuing the asset or liability. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. When assets and liabilities are transferred between levels, we recognize the transfer as of the beginning of the period. See “NOTE 16: FAIR VALUE DISCLOSURES” for additional information regarding the fair value measurements and the hierarchy. | ||
Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities | ' | |
Purchases and Sales of Freddie Mac Mortgage-Related Securities | ||
PCs | ||
When we purchase PCs that have been issued by consolidated PC trusts, we extinguish the outstanding debt securities of the related consolidated trust. We recognize a gain (loss) on extinguishment of the debt securities to the extent the amount paid to redeem the debt differs from its carrying value, adjusted for any related purchase commitments accounted for as derivatives. | ||
When we sell PCs that have been issued by consolidated PC trusts, we recognize a liability to the third-party beneficial interest holders of the related consolidated trust as debt securities of consolidated trusts held by third parties. That is, our sale of PCs issued by consolidated PC trusts is accounted for as the issuance of debt. | ||
Single-Class REMICs and Other Structured Securities | ||
The collateral for our single-class REMICs and Other Structured Securities includes PCs and previously issued single-class REMICs and Other Structured Securities. We do not consolidate these resecuritization trusts as we are not deemed to be the primary beneficiary of the trusts. Our single-class REMICs and Other Structured Securities pass through all of the cash flows of the underlying PCs directly to the holders of the securities and are deemed to be substantially the same as the underlying PCs. As a result, when we purchase single-class REMICs and Other Structured Securities, we extinguish a pro rata portion of the outstanding debt securities of the related PC trust on our consolidated balance sheets. | ||
When we sell single-class REMICs and Other Structured Securities, we recognize a liability to the third-party beneficial interest holders of the related consolidated PC trust as debt securities of consolidated trusts held by third parties. That is, our sale of single-class REMICs and Other Structured Securities is accounted for as the issuance of debt. | ||
Multiclass REMICs and Other Structured Securities | ||
The collateral for our single-family multiclass REMICs and Other Structured Securities includes PCs and previously issued REMICs and Other Structured Securities. We do not consolidate most of these resecuritization trusts as we are not deemed to be the primary beneficiary of the trusts unless we hold substantially all of the outstanding beneficial interests that have been issued by the trust. In our single-family multiclass REMICs and Other Structured Securities, the cash flows of the underlying PCs are divided (e.g., stripped and/or time tranched). Due primarily to this division of cash flows, these securities are not deemed to be substantially the same as the underlying PCs. As a result, when we purchase single-family multiclass REMICs and Other Structured Securities, we record these securities as investments in debt securities rather than as the extinguishment of debt since we are investing in the debt securities of a non-consolidated entity. See “Investments in Securities” for further information regarding our accounting for investments in multiclass REMICs and Other Structured Securities. | ||
We recognize, as assets, both the investment in single-family multiclass REMICs and Other Structured Securities and the mortgage loans backing the PCs held by the trusts which underlie the single-family multiclass REMICs and Other Structured Securities. Additionally, we recognize, as liabilities, the unsecured debt issued to third parties to fund the purchase of the single-family multiclass REMICs and Other Structured Securities as well as the debt issued to third parties of the PC trusts we consolidate which underlie the single-family multiclass REMICs and Other Structured Securities. This results in recognition of interest income from both assets and interest expense from both liabilities. | ||
The collateral for our multifamily multiclass Other Structured Securities typically includes multifamily housing revenue bonds which are collateralized by low- and moderate-income multifamily housing developments. We do not consolidate the securitization trusts that issue these securities as we are not deemed to be the primary beneficiary of the trusts. When we purchase multifamily multiclass Other Structured Securities, we record them as investments in debt securities. See “Investments in Securities” for further information regarding our accounting for investments in multiclass REMICs and Other Structured Securities. | ||
When we sell multiclass REMICs and Other Structured Securities in which we are not the primary beneficiary of the resecuritization trust, we account for the transfer in accordance with the accounting guidance for transfers of financial assets. To the extent the transfer of multiclass REMICs and Other Structured Securities qualifies as a sale, we de-recognize all assets sold and recognize all assets obtained and liabilities incurred. Any gain (loss) on the sale of multiclass REMICs and Other Structured Securities is reflected in our consolidated statements of comprehensive income as a component of other gains (losses) on investment securities recognized in earnings. To the extent the transfer of multiclass REMICs and Other Structured Securities does not qualify as a sale, we account for the transfer as a financing transaction and recognize a liability for the proceeds received from third parties in the transfer. | ||
Securitization Activities through Issuances of Freddie Mac Mortgage-Related Securities | ||
Overview | ||
When we securitize mortgages that we purchase, we issue mortgage-related securities such as PCs that can be sold to investors or held by us. We issue mortgage-related securities in the form of PCs, REMICs and Other Structured Securities, and Other Guarantee Transactions. Guarantor swaps are transactions where financial institutions exchange mortgage loans for PCs backed by these mortgage loans. Multilender swaps are similar to guarantor swaps, except that formed PC pools include loans that are contributed by more than one party. We issue PCs through various swap-based exchanges significantly more often than through cash-based transfers. We issue REMICs and Other Structured Securities in transactions in which securities dealers or investors sell us mortgage-related assets in exchange for REMICs and Other Structured Securities. We also issue Other Guarantee Transactions to third parties in exchange for non-Freddie Mac mortgage-related securities. | ||
PCs | ||
Our PCs are pass-through debt securities that represent undivided beneficial interests in a pool of mortgages held by a securitization trust. For our fixed-rate PCs, we guarantee the timely payment of interest and principal. For our ARM PCs, we guarantee the timely payment of the weighted average coupon interest rate for the underlying mortgage loans. We do not guarantee the timely payment of principal for ARM PCs; however, we do guarantee the full and final payment of principal. | ||
In return for providing our guarantee of the payment of principal and interest, we earn a management and guarantee fee that is paid to us over the life of an issued PC, representing a portion of the interest collected on the underlying loans. | ||
Revenue Recognition, Multiple-deliverable Arrangements, Description [Policy Text Block] | ' | |
We receive a transaction fee from third parties for issuing our single-family REMICs and Other Structured Securities whose underlying assets are PCs or previously issued REMICs and Other Structured Securities. We defer the portion of the transaction fee that is equal to the estimated value of our future administrative responsibilities for these issued REMICs and Other Structured Securities. These responsibilities include ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting, and other required services. We estimate the value of these future responsibilities based on quotes from third-party vendors who perform each type of service and, where quotes are not available, based on our estimates of what those vendors would charge. The remaining portion of the transaction fee relates to compensation earned in connection with structuring-related services we rendered to third parties and is allocated between REMICs and Other Structured Securities we retain, if any, and the REMICs and Other Structured Securities acquired by third parties, based on the relative fair value of the securities. The portion of the fee allocated to any REMICs and Other Structured Securities we retain is deferred as a carrying value adjustment and is amortized into interest income using the effective interest method over the contractual lives of these securities. The fee allocated to REMICs and Other Structured Securities acquired by third parties is recognized immediately in earnings as other income. | ||
Other Guarantee Commitments | ' | |
Other Guarantee Commitments | ||
In certain circumstances, we also provide our guarantee of mortgage-related assets held by third parties, in exchange for a guarantee fee, without our securitization of the related assets. For example, we provide long-term standby commitments to certain of our single-family customers, which obligate us to purchase seriously delinquent loans that are covered by those agreements. We also provide guarantee commitments on multifamily housing revenue bonds that were issued by HFAs as well as guarantees under the TCLFP on securities backed by HFA bonds. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Highly liquid investment securities that have an original maturity of three months or less are accounted for as cash equivalents. In addition, cash collateral that we have the right to use for general corporate purposes and that we obtain from counterparties to derivative contracts is recorded as cash and cash equivalents. | ||
Restricted Cash and Cash Equivalents | ' | |
Restricted Cash and Cash Equivalents | ||
Cash collateral accepted from counterparties that we do not have the right to use for general corporate purposes is recorded as restricted cash in our consolidated balance sheets. Restricted cash includes cash remittances received on the underlying assets of our consolidated trusts, which are deposited into a separate custodial account. These cash remittances include both scheduled and unscheduled principal and interest payments. The cash remittances are segregated in the separate custodial account until they are remitted to the PC, REMIC and Other Structured Securities holders on their respective security payment dates, and are not commingled with our general operating funds. As securities administrator, we invest the cash held in the custodial account, pending distribution to our PC, REMIC, and Other Structured Securities holders, in short-term investments and are entitled to the interest income earned on these short-term investments, which is recorded as interest income, other on our consolidated statements of comprehensive income. | ||
Mortgage Loans | ' | |
Mortgage Loans | ||
Upon acquisition, we classify a loan as either held-for-sale or held-for-investment. Mortgage loans that we have the ability and intent to hold for the foreseeable future are classified as held-for-investment. Loans we acquire and which we intend to securitize using an entity we will consolidate will be classified as held-for-investment both prior to and subsequent to their securitization, in accordance with our intent and ability to hold such loans for the foreseeable future. | ||
Held-for-investment mortgage loans are reported in our consolidated balance sheets at their outstanding UPB, net of deferred fees and other cost basis adjustments (including unamortized premiums and discounts, delivery fees and other pricing adjustments). These deferred items are amortized into interest income over the contractual lives of the loans using the effective interest method. We recognize interest income on an accrual basis except when we believe the collection of principal and interest in full is not reasonably assured. If the collection of principal and interest in full is not reasonably assured, we cease the accrual of interest income and any interest income accrued but uncollected is reversed. | ||
Mortgage loans not classified as held-for-investment are classified as held-for-sale. Held-for-sale loans are reported at lower-of-cost-or-fair-value on our consolidated balance sheets. Any excess of a held-for-sale loan’s cost over its fair value is recognized as a valuation allowance in other income on our consolidated statements of comprehensive income, with changes in this valuation allowance also being recorded in other income. Premiums, discounts, and other cost basis adjustments recognized upon acquisition on single-family loans classified as held-for-sale are deferred and not amortized. We elected the fair value option for multifamily mortgage loans held for sale that we intend to securitize and sell to investors. See “NOTE 16: FAIR VALUE DISCLOSURES — Fair Value Option — Multifamily Held-For-Sale Mortgage Loans” and “NOTE 16: FAIR VALUE DISCLOSURES — Fair Value Option — Changes in Fair Value under the Fair Value Option Election.” Thus, these multifamily mortgage loans are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value reported in other income in our consolidated statements of comprehensive income. We do not have any held-for-sale loans reported at the lower-of-cost-or-fair-value on our consolidated balance sheets as of December 31, 2013 or 2012. | ||
Cash flows related to mortgage loans held by our consolidated trusts are classified as either investing activities (e.g., principal repayments) or operating activities (e.g., interest payments received from borrowers included within net income (loss)). In addition, cash flows related to purchases of mortgage loans held-for-sale are classified in operating activities. When mortgage loans held-for-sale are sold or securitized, proceeds from the sale or securitization and any related gain or loss are classified in operating activities. | ||
Non-Performing Loans | ' | |
Non-Performing Loans | ||
Non-performing loans consist of: (a) single-family and multifamily loans that have undergone a TDR; (b) single-family seriously delinquent loans; (c) multifamily loans that are three or more payments past due or in the process of foreclosure; and (d) multifamily loans that are deemed impaired based upon management judgment. We place mortgage loans on non-accrual status when we believe collectability of principal and interest in full is not reasonably assured, which generally occurs when a loan is three monthly payments past due, unless the loan is well secured and in the process of collection based upon an individual loan assessment. A loan is considered past due if a full payment of principal and interest is not received within one month of its due date. When a loan is placed on non-accrual status, any interest income accrued but uncollected is reversed. Thereafter, interest income is recognized only upon receipt of cash payments. | ||
A non-accrual mortgage loan may be returned to accrual status when the collectability of principal and interest in full is reasonably assured. For single-family loans, we determine that collectability is reasonably assured when we have received payment of principal and interest such that the loan becomes less than three monthly payments past due. For multifamily loans, the collectability of principal and interest is considered reasonably assured based on a quantitative and qualitative analysis of the factors specific to the loan being assessed. Upon a loan’s return to accrual status, all previously reversed interest income is recognized and amortization of any basis adjustments into interest income is resumed. | ||
Allowance for Loan Losses and Reserve for Guarantee Losses | ' | |
Allowance for Loan Losses and Reserve for Guarantee Losses | ||
The allowance for loan losses and the reserve for guarantee losses represent estimates of probable incurred credit losses. The allowance for loan losses pertains to all single-family and multifamily loans classified as held-for-investment on our consolidated balance sheets whereas the reserve for guarantee losses relates to single-family and multifamily loans underlying our non-consolidated Freddie Mac mortgage-related securities and other guarantee commitments. Total held-for-investment mortgage loans, net are shown net of the allowance for loan losses on our consolidated balance sheets. The reserve for guarantee losses is included within other liabilities on our consolidated balance sheets. Collectively, we refer to our allowance for loan losses and our reserve for guarantee losses as our loan loss reserves. We recognize probable incurred losses by recording a charge to the provision for credit losses in our consolidated statements of comprehensive income. Determining the appropriateness of the loan loss reserves is a complex process that is subject to numerous estimates and assumptions requiring significant judgment about matters that involve a high degree of subjectivity. | ||
We estimate credit losses related to homogeneous pools of loans in accordance with the accounting guidance for contingencies. Accordingly, we maintain an allowance for loan losses on mortgage loans held-for-investment when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Loans that we evaluate for individual impairment are measured in accordance with the accounting guidance for receivables. | ||
For both the single-family and multifamily portfolios, we charge off (in full or in part) our recorded investment in a loan in the period it is determined that the loan (or a portion thereof) is uncollectible, which generally occurs at final disposition of the loan through foreclosure or other loss event. However, if losses are evident prior to final disposition, earlier recognition of a charge-off is required by our policies. We also consider charge-offs for certain very small balance loans and upon the occurrence of certain events such as natural disasters. A charge-off is also recorded if we realize a specific credit loss upon the modification of a loan in a TDR. We do not have any established threshold in terms of days past due beyond which we partially or fully charge-off loans. | ||
Single-Family Loans | ||
We determine single-family loan loss reserves both on a collective and individual basis. For further discussion on individually impaired single-family loans, refer to “Impaired Loans” below. | ||
We estimate loan loss reserves on homogeneous pools of single-family loans using a statistically based model that evaluates a variety of factors affecting collectability. The homogeneous pools of single-family mortgage loans are determined based on common underlying characteristics, including estimated current LTV ratios, trends in home prices, loan product type, and geographic region. In determining the loan loss reserves for single-family loans at the balance sheet date, we evaluate key inputs and factors including, but not limited to: | ||
• | estimated current LTV ratios and historical trends in home prices; | |
• | loan product type; | |
• | delinquency/default status and history; | |
• | actual and estimated rates of collateral loss severity for similar loans; | |
• | geographic location; | |
• | loan age; | |
• | sourcing channel; | |
• | occupancy type; | |
• | UPB at origination; | |
• | expected ability to partially mitigate losses through loan modification or other alternatives to foreclosure; | |
• | expected proceeds from mortgage insurance contracts that are contractually attached to a loan or other credit enhancements that were entered into contemporaneously with and in contemplation of a guarantee or loan purchase transaction; | |
• | expected repurchases of mortgage loans by seller/servicers; | |
• | counterparty credit of mortgage insurers and seller/servicers; | |
• | pre-foreclosure real estate taxes and insurance; | |
• | estimated selling costs should the underlying property ultimately be sold; and | |
• | trends in the timing of foreclosures. | |
For additional information on estimated current LTV ratios and single-family loan loss reserves, see “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES — Credit Quality of Mortgage Loans.” | ||
Freddie Mac relies upon third-parties to provide primary servicing for the performing and non-performing loan portfolio. At loan delivery, the seller provides us with the loan data, which includes loan characteristics and underwriting information. Each month, the servicers provide us with monthly loan level servicing data, including delinquency and loss information. | ||
Certain loan servicing data is reported to us on a real-time basis, such as loan pay-offs and foreclosure events. However, certain monthly servicing data, including delinquency status, is delivered on a one-month delay. For example, December loan delinquency data delivered to Freddie Mac at the end of December or beginning of January reflects the loan delinquency status related to the December 1 payment cycle. We incorporate the delinquency status data into our allowance for loan loss calculation generally without adjustment for the one-month delay. | ||
Our single-family loan loss reserve default models are estimated based on the most recent 12 months of actual loan performance data, including loan status and delinquency data reported by our servicers. The loan performance data provides a loan level history of delinquency, foreclosures, foreclosure alternatives, modifications, and seller/servicer repurchases. Our single-family loan loss reserve severity is estimated from the most recent: (a) three months of sales experience realized on our distressed property dispositions; and (b) six months of mortgage insurance recoveries and pre-foreclosure expenses on our distressed properties including REO, short sales, and third-party sales. Our single-family loan loss severity estimate also captures current business area practices and expectations about recoveries due to seller/servicer repurchases. We use historical trends in home prices in our single-family loan loss reserve process, primarily through the use of estimated current total LTV ratios in our default models and through the use of recent home price sales experience in our severity estimate. However, we do not use a forecast of trends in home prices in our single-family loan loss reserve process. | ||
Our loan loss reserves reflect our best current estimates of incurred losses. Our loan loss reserve estimate includes projections related to loss mitigation activities, including loan modifications for troubled borrowers, and projections of recoveries through repurchases by seller/servicers of defaulted loans due to failure to follow contractual underwriting requirements at the time of the loan origination. These projections are based on our recent historical experience and current business practices and require significant management judgment. We monitor our projections of recoveries through seller/servicer repurchases to ensure that these projections are reasonable and consistent with our assessment of the credit capacity of our seller/servicer counterparties. For loans where foreclosure is probable, impairment is measured on an aggregate basis based upon an estimate of the underlying collateral value. At an individual loan level, our estimate also considers the effect of historical home price changes on borrower behavior and the impact of our loss mitigation actions, including our loan modification efforts. | ||
Our reserve estimate also reflects our best projection of defaults we believe are likely to occur as a result of loss events that have occurred through December 31, 2013 and 2012, respectively. However, fluctuations in the national housing market, the uncertainty in other macroeconomic factors, and variations in success rates of modification efforts under HAMP and other loan workout programs, make estimating defaults inherently imprecise. | ||
We validate and update our models and factors to capture changes in actual loss experience, as well as the effects of changes in underwriting practices and in our loss mitigation strategies. We also consider macroeconomic and other factors that impact the quality of the loans underlying our portfolio including regional housing trends, applicable home price indices, unemployment and employment dislocation trends, the effects of changes in government policies and programs, consumer credit statistics, and the extent of third-party insurance. We consider our assessment of these factors in determining our loan loss reserves. | ||
We apply proceeds from primary mortgage insurance that is contractually attached to a loan and other credit enhancements, including repurchase recoveries, entered into contemporaneously with and in contemplation of a guarantee or loan purchase transaction, as a recovery of our recorded investment in a charged-off loan, up to the amount of loss recognized as a charge-off. Proceeds from credit enhancements received in excess of our recorded investment in charged-off loans are recorded as a decrease to REO operations expense in our consolidated statements of comprehensive income when received. We record receivables for proceeds from primary mortgage insurance and other credit enhancements, including repurchase recoveries, when the proceeds are estimable and collectability is reasonably assured. We generally accrue receivables for primary mortgage insurance, pool insurance, and most other types of credit enhancements as we have a history of collection of these types of recoveries and the amounts are estimable based on the contractual terms of the agreements. However, due to the uncertainty of the timing and amount of collections of repurchase recoveries, we generally do not accrue receivables for repurchase recoveries and instead record repurchase recoveries received on a cash basis. | ||
Multifamily Loans | ||
For multifamily loans identified as impaired, we individually determine the loan loss reserves. Refer to “Impaired Loans” below for further discussion on individually impaired multifamily loans. Multifamily loans evaluated collectively for impairment are aggregated into book year vintages and measured by benchmarking published historical commercial mortgage data to those vintages based upon available economic data related to multifamily real estate, including apartment vacancy and rental rates. | ||
Impaired Loans | ' | |
Impaired Loans | ||
We consider a loan to be impaired when it is probable, based on current information, that we will not receive all amounts due (including both principal and interest) in accordance with the contractual terms of the original loan agreement. Delays in the timing of our expected receipt of these amounts that are more than insignificant are considered in making this assessment. | ||
Single-Family Loans | ||
Individually impaired single-family loans primarily include loans that have undergone a TDR. These loans are measured individually for impairment as discussed in the "Troubled Debt Restructurings" section of this note that follows. All other single-family loans are aggregated and measured collectively for impairment based on similar risk characteristics. Collective impairment is measured as described above in the “Allowance for Loan Losses and Reserve for Guarantee Losses — Single-Family Loans” section of this note. If we determine that foreclosure on the underlying collateral is probable, we measure impairment based upon the fair value of the collateral, as reduced by estimated disposition costs and adjusted for estimated proceeds from insurance and similar sources. Interest income recognition on impaired single-family loans is discussed separately in the "Mortgage Loans — Non-Performing Loans" section of this note above. | ||
Multifamily Loans | ||
Multifamily impaired loans include TDRs, loans three monthly payments or more past due, and loans that are deemed impaired based on management judgment. Factors considered by management in determining whether a loan is impaired include, but are not limited to, the underlying property’s operating performance as represented by its current DSCR, available credit enhancements, estimated current LTV ratio, management of the underlying property, and the property’s geographic location. | ||
Multifamily loans are generally measured individually for impairment based on the fair value of the underlying collateral, as reduced by estimated disposition costs, as the repayment of these loans is generally provided from the cash flows of the underlying collateral and any associated credit-enhancement. Except for cases of fraud and certain other types of borrower defaults, most multifamily loans are non-recourse to the borrower. As a result, the cash flows of the underlying property (including any associated credit enhancements) serve as the source of funds for repayment of the loan. Interest income recognition on multifamily impaired loans is subject to our non-accrual policy as discussed in “Mortgage Loans — Non-Performing Loans.” | ||
Troubled Debt Restructurings | ' | |
Troubled Debt Restructurings | ||
Both single-family and multifamily loans which experience a modification to their contractual terms which results in a concession being granted to a borrower experiencing financial difficulties are considered TDRs. A concession is deemed granted when, as a result of the restructuring, we do not expect to collect all amounts due, including interest accrued, at the original contractual interest rate. As appropriate, we also consider other qualitative factors in determining whether a concession is deemed granted, including whether the borrower’s modified interest rate is consistent with that of a non-troubled borrower. We do not consider restructurings that result in a delay in payment that is insignificant to be a concession. We generally consider a delay in monthly amortizing payments of three months or less to be insignificant. We generally consider all other delays to be more than insignificant. A concession typically includes one or more of the following being granted to the borrower: (a) a trial period where the expected permanent modification will change our expectation of collecting all amounts due at the original contract rate; (b) a delay in payment that is more than insignificant; (c) a reduction in the contractual interest rate; (d) interest forbearance for a period of time that is not insignificant or forgiveness of accrued but uncollected interest amounts; (e) principal forbearance that is more than insignificant or a reduction in the principal amount of the loan; and (f) discharge of the borrower’s obligation in Chapter 7 bankruptcy. | ||
On July 1, 2011, we adopted an amendment to the accounting guidance related to the classification of loans as TDRs. This amendment clarified when a restructuring such as a loan modification is considered a TDR. For additional information, see “Recently Adopted Accounting Guidance — A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring,” below. | ||
Impairment of a loan having undergone a TDR is generally measured as the excess of our recorded investment in the loan over the present value of the expected future cash flows, discounted at the loan’s original effective interest rate for fixed-rate loans or at the loan’s effective interest rate prior to the restructuring for ARM loans. Our expectation of future cash flows incorporates, among other items, an estimated probability of default which is based on a number of market factors as well as the characteristics of the loan, such as past due status. Subsequent to the restructuring date, interest income is recognized at the modified interest rate, subject to our non-accrual policy as discussed in “Mortgage Loans — Non-Performing Loans” above, with all other changes in the present value of expected future cash flows being recognized as a component of the provision for credit losses in our consolidated statements of comprehensive income. | ||
Investments in Securities | ' | |
Investments in Securities | ||
Investments in securities consist primarily of mortgage-related securities. We classify securities as “available-for-sale” or “trading.” We currently do not classify any securities as “held-to-maturity,” although we may elect to do so in the future. Securities classified as available-for-sale and trading are reported at fair value with changes in fair value included in AOCI and other gains (losses) on investment securities recognized in earnings, respectively. See “NOTE 16: FAIR VALUE DISCLOSURES” for more information on how we determine the fair value of securities. | ||
We elected the fair value option for certain available-for-sale mortgage-related securities, including investments in securities that: (a) can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our initial recorded investment; or (b) are not of high credit quality at the acquisition date and are identified as within the scope of the accounting guidance for investments in beneficial interests in securitized financial assets. These securities are classified as trading securities. By electing the fair value option for these instruments, we reflect valuation changes through our consolidated statements of comprehensive income in the period they occur. For additional information on our election of the fair value option, see “NOTE 16: FAIR VALUE DISCLOSURES.” | ||
We record purchases and sales of securities that are exempt from the accounting guidance for derivatives and hedge accounting on a trade date basis. Securities underlying forward purchases and sales contracts that are not exempt from the requirements of derivatives and hedge accounting are recorded on the expected settlement date with a corresponding commitment recorded on the trade date. | ||
For most of our investments in securities, interest income is recognized using the effective interest method. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities. | ||
For certain investments in securities, interest income is recognized using the prospective effective interest method. We specifically apply this accounting to beneficial interests in securitized financial assets that: (a) can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment; (b) are not of high credit quality at the acquisition date; or (c) have been determined to be other-than-temporarily impaired. We recognize as interest income (over the life of these securities) the excess of all estimated cash flows attributable to these interests over their book value using the effective interest method. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. | ||
We evaluate available-for-sale securities in an unrealized loss position as of the end of each quarter for other-than-temporary impairment. An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. As discussed further below, certain other-than-temporary impairment losses are recognized in earnings. | ||
If we intend to sell the security or believe it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the security’s entire decline in fair value is deemed to be other-than-temporary and is recorded within our consolidated statements of comprehensive income as net impairment of available-for-sale securities recognized in earnings. If we do not intend to sell the security and we believe it is not more likely than not that we will be required to sell prior to recovery of the security’s unrealized loss, we recognize only the credit component of other-than-temporary impairment in earnings and the amounts attributable to all other factors are recorded in AOCI. The credit component represents the amount by which the present value of cash flows expected to be collected from the security is less than the amortized cost basis of the security. The present value of expected future cash flows represents our estimate of future contractual cash flows that we expect to collect, discounted at the original effective interest rate or the effective interest rate determined based on significantly improved cash flows subsequent to initial impairment. | ||
The evaluation of whether unrealized losses on available-for-sale securities are other-than-temporary requires significant management judgments and assumptions and consideration of numerous factors. We perform an evaluation on a security-by-security basis considering all available information. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment. For information regarding important factors, judgments and assumptions, see “NOTE 7: INVESTMENTS IN SECURITIES — Impairment Recognition on Investments in Securities.” | ||
Gains and losses on the sale of securities are included in other gains (losses) on investment securities recognized in earnings, including those gains (losses) reclassified into earnings from AOCI. We use the specific identification method for determining the cost basis of a security in computing the gain or loss. | ||
For securities classified as trading or available-for-sale and those securities where we elected the fair value option, we classify the cash flows as investing activities because we hold these securities for investment purposes. In cases where the transfer of available-for-sale securities represents a secured borrowing, we classify the related cash flows as financing activities. | ||
Repurchase and Resale Agreements and Dollar Roll Transactions | ' | |
Repurchase and Resale Agreements and Dollar Roll Transactions | ||
We enter into repurchase and resale agreements primarily as an investor or to finance certain of our security positions. Such transactions are accounted for as secured financings because the transferor does not relinquish control over the transferred assets. | ||
We also engage in dollar roll transactions whereby we enter into an agreement to sell and subsequently repurchase (or purchase and subsequently resell) agency securities. When these transactions involve securities issued by consolidated entities, they are treated as issuances and extinguishments of debt. When these transactions involve securities issued by entities we do not consolidate, they are treated as purchases and sales as the security initially transferred is not required to be the same or substantially the same as the security subsequently returned. | ||
Debt Securities Issued | ' | |
Debt Securities Issued | ||
Debt securities that we issue are classified on our consolidated balance sheets as either debt securities of consolidated trusts held by third parties or other debt. The debt securities of our consolidated trusts are prepayable without penalty at any time. Other debt represents short-term and long-term debt securities that we issue to third parties to fund our general business activities. | ||
Both debt of our consolidated trusts and other debt, except for certain debt for which we elected the fair value option, are reported at amortized cost. Deferred items, including premiums, discounts, and hedging-related basis adjustments are reported as a component of total debt, net. Issuance costs are reported as a component of other assets. These items are amortized and reported through interest expense using the effective interest method over the contractual life of the related indebtedness. Amortization of premiums, discounts, and issuance costs begins at the time of debt issuance. Amortization of hedging-related basis adjustments begins upon the discontinuation of the related hedge relationship. | ||
We elected the fair value option on certain debt securities of consolidated trusts held by third parties and certain other debt. The change in fair value for debt recorded at fair value is reported as other income in our consolidated statements of comprehensive income. For debt where we have elected the fair value option, upfront costs and fees are recognized in earnings as incurred and not deferred. For additional information on our election of the fair value option, see “NOTE 16: FAIR VALUE DISCLOSURES.” | ||
When we repurchase or call outstanding debt securities, we recognize a gain or loss related to the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of gains (losses) on retirement of other debt. Contemporaneous transfers of cash between us and a creditor in connection with the issuance of a new debt security and satisfaction of an existing debt security are accounted for as either an extinguishment or a modification of an existing debt security. If the debt securities have substantially different terms, the transaction is accounted for as an extinguishment of the existing debt security. The issuance of a new debt security is recorded at fair value, fees paid to the creditor are expensed and fees paid to third parties are deferred and amortized into interest expense over the life of the new debt security using the effective interest method. If the terms of the existing debt security and the new debt security are not substantially different, the transaction is accounted for as a modification of the existing debt. Fees paid to the creditor are deferred and amortized over the life of the modified unsecured debt security using the effective interest method and fees paid to third parties are expensed as incurred. | ||
Cash flows related to debt securities issued by our consolidated trusts are classified as either financing activities (e.g., repayment of principal to PC holders) or operating activities (e.g., interest payments to PC holders included within net income (loss)). Other than interest paid, cash flows related to other debt are classified as financing activities. Interest paid on other debt is classified as operating activities. | ||
Derivatives | ' | |
Derivatives | ||
Derivatives are reported at their fair value on our consolidated balance sheets. Derivatives in a net asset position, including net derivative interest receivable or payable, are reported as derivative assets, net. Similarly, derivatives in a net liability position, including net derivative interest receivable or payable, are reported as derivative liabilities, net. We offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Changes in fair value and interest accruals on derivatives are recorded as derivative gains (losses) in our consolidated statements of comprehensive income. | ||
We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We elected to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in our consolidated statements of comprehensive income. | ||
At December 31, 2013 and 2012, we did not have any derivatives in hedge accounting relationships; however, there are amounts recorded in AOCI related to discontinued cash flow hedges which are recognized in earnings when the originally forecasted transactions affect earnings. If it becomes probable the originally forecasted transaction will not occur, the associated deferred gain or loss in AOCI would be reclassified to earnings immediately. | ||
In the consolidated statements of cash flows, cash flows related to the acquisition and termination of derivatives, other than forward commitments, are generally classified in investing activities. Cash flows related to forward commitments are classified within the section of the consolidated statements of cash flows in accordance with the cash flows of the financial instruments to which they relate. | ||
REO | ' | |
REO | ||
REO is initially recorded at fair value less costs to sell and is subsequently carried at the lower of cost or fair value less costs to sell. When we acquire REO, losses arise when the carrying value of the loan (including accrued interest) exceeds the fair value of the foreclosed property, net of estimated costs to sell and expected recoveries through credit enhancements. Losses are charged off against the allowance for loan losses at the time of REO acquisition. REO gains arise and are recognized immediately in earnings when the fair value of the foreclosed property less costs to sell plus expected recoveries through credit enhancements exceeds the recorded investment in the loan (including all amounts due from the borrower). | ||
Amounts we expect to receive from third-party insurance (primary mortgage insurance and pool insurance) and most other credit enhancements are recorded as receivables when REO is acquired. The receivable is adjusted when the actual claim is filed and is reported as a component of other assets on our consolidated balance sheets. We do not record receivables for repurchase recoveries. We record these on a cash basis due to uncertainty of the timing and amount of collections. | ||
Material development and improvement costs relating to REO are capitalized. Operating expenses specifically identifiable with an REO property are included in REO operations income (expense) in our consolidated statements of comprehensive income; all other expenses are recognized within other administrative expenses in our consolidated statements of comprehensive income. Declines in the fair value of REO are provided for and charged to REO operations income (expense). Any gains and losses from REO dispositions are included in REO operations income (expense). | ||
Income Taxes | ' | |
Income Taxes | ||
We use the asset and liability method of accounting for income taxes for financial reporting purposes. Under this method, deferred tax assets and liabilities are recognized based upon the expected future tax consequences of existing temporary differences between the financial reporting and the tax reporting basis of assets and liabilities using enacted statutory tax rates as well as tax net operating loss and tax credit carryforwards. To the extent tax laws change, deferred tax assets and liabilities are adjusted, when necessary, in the period that the tax change is enacted. Valuation allowances are recorded to reduce net deferred tax assets when it is more likely than not that all or part of our tax benefits will not be realized. The realization of these net deferred tax assets is dependent upon the generation of sufficient taxable income from current operations and from unrecognized tax benefits. | ||
Income tax benefit (expense) includes: (a) deferred tax benefit (expense), which represents the net change in the deferred tax asset or liability balance during the year plus any change in a valuation allowance; and (b) current tax benefit (expense), which represents the amount of tax currently payable to or receivable from a tax authority including any related interest and penalties plus amounts accrued for unrecognized tax benefits (also including any related interest and penalties). Income tax benefit (expense) excludes the tax effects related to adjustments recorded to equity, such as unrealized gains and losses related to available-for-sale securities. | ||
Regarding tax positions taken or expected to be taken (and any associated interest and penalties), we recognize a tax position so long as it is more likely than not that it will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. We measure the tax position at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. See “NOTE 12: INCOME TAXES” for additional information. | ||
Earnings Per Common Share | ' | |
Earnings Per Common Share | ||
The August 2012 amendment to the Purchase Agreement changed the manner in which the dividend on the senior preferred stock is determined. For each quarter from January 1, 2013 through and including December 31, 2017, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter, less the applicable Capital Reserve Amount, exceeds zero. For each quarter beginning January 1, 2018, the dividend payment will be the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter exceeds zero. The dividend is presented in the period in which it is determinable for the senior preferred stock as a reduction to net income (loss) available to common stockholders and net income (loss) per common share. The dividend is declared and paid in the following period and recorded as a reduction to equity in the period declared. | ||
We have participating securities related to options and restricted stock units with dividend equivalent rights that receive dividends as declared on an equal basis with common shares but are not obligated to participate in undistributed net losses. These participating securities consist of: (a) vested options to purchase common stock; and (b) vested and unvested restricted stock units that earn dividend equivalents at the same rate when and as declared on common stock. Consequently, in accordance with accounting guidance, we use the “two-class” method of computing earnings per common share. The “two-class” method is an earnings allocation formula that determines earnings per share for common stock and participating securities based on dividends declared and participation rights in undistributed earnings. | ||
Basic earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares outstanding for the period. The weighted average common shares outstanding for the period includes the weighted average number of shares that are associated with the warrant for our common stock issued to Treasury pursuant to the Purchase Agreement. This warrant is included since it is unconditionally exercisable by the holder at a minimal cost. See “NOTE 2: CONSERVATORSHIP AND RELATED MATTERS” for further information. | ||
Diluted earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares outstanding during the period adjusted for the dilutive effect of common equivalent shares outstanding. For periods with net income attributable to common stockholders, the calculation includes the effect of the following common equivalent shares outstanding: (a) the weighted average shares related to stock options if the average market price during the period exceeds the exercise price; and (b) the weighted average of unvested restricted stock units. During periods in which a net loss attributable to common stockholders has been incurred, potential common equivalent shares outstanding are not included in the calculation because it would have an antidilutive effect. See “NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) — Stock-Based Compensation” for additional information on our earnings-per-share calculation. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Comprehensive income includes all changes in equity during a period, except those resulting from investments by stockholders. We define comprehensive income as consisting of net income (loss) plus after-tax changes in: (a) the unrealized gains and losses on available-for-sale securities; (b) the effective portion of derivatives accounted for as cash flow hedge relationships; and (c) defined benefit plans. | ||
Recently Adopted or Issued Accounting Guidance | ' | |
Recently Issued Accounting Guidance, Not Yet Adopted Within These Consolidated Financial Statements | ||
Accounting for Investments in Qualified Affordable Housing Projects | ||
In January 2014, the FASB issued an amendment to the accounting guidance related to accounting for investments in qualified affordable housing projects. This amendment permits entities to elect to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendment is effective for interim and annual periods beginning after December 15, 2014 and is to be applied retrospectively, with early adoption permitted. We do not expect that the adoption of this amendment will have a material impact on our consolidated financial statements. | ||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | ||
In January 2014, the FASB issued an amendment to the accounting guidance related to reclassifying residential real estate collateralized consumer mortgage loans upon foreclosure. This amendment clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for interim and annual periods beginning after December 15, 2014 with early adoption permitted. This amendment can be adopted either prospectively or retrospectively. We do not expect that the adoption of this amendment will have a material impact on our consolidated financial statements. | ||
Recently Adopted Accounting Guidance | ||
Fair Value Measurement | ||
On January 1, 2012, we adopted an amendment to the accounting guidance pertaining to fair value measurement and disclosure. This amendment provided: (a) clarification about the application of existing fair value measurement and disclosure requirements; and (b) changes to the guidance for measuring fair value and disclosing information about fair value measurements. The adoption of this amendment did not have a material impact on our consolidated financial statements. | ||
Reconsideration of Effective Control for Repurchase Agreements | ||
On January 1, 2012, we adopted an amendment to the accounting guidance for transfers and servicing with regard to repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. This amendment removed the criterion related to collateral maintenance from the transferor’s assessment of effective control. It focuses the assessment of effective control on the transferor’s rights and obligations with respect to the transferred financial assets and not whether the transferor has the practical ability to perform in accordance with those rights or obligations. The adoption of this amendment did not have a material impact on our consolidated financial statements. | ||
A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring | ||
On July 1, 2011, we adopted an amendment to the accounting guidance related to the classification of loans as TDRs, which clarifies when a restructuring such as a loan modification is considered a TDR. This amendment clarifies the guidance regarding a creditor’s evaluation of whether a debtor is experiencing financial difficulty and whether a creditor has granted a concession to a debtor for purposes of determining if a restructuring constitutes a TDR. | ||
Both single-family and multifamily loans that experience restructurings resulting in a concession being granted to a borrower experiencing financial difficulties are considered TDRs. The amendment provides guidance to determine whether a borrower is experiencing financial difficulties, which is largely consistent with the guidance for debtors. This change does not have a significant impact on our determination of whether a borrower is experiencing financial difficulties. Pursuant to this amendment, a concession is deemed to have been granted when, as a result of the restructuring, we do not expect to collect all amounts due, including interest accrued, at the original contractual interest rate. The amendment also specifies that a concession shall not be determined by comparing the borrower’s pre-restructuring effective interest rate to the post-restructuring effective interest rate. These changes resulted in a significant impact on our determination of whether a concession has been granted. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||
Table - Variable Interests in VIEs for Which We are not the Primary Beneficiary | ' | |||||||||||||||||||
Table 3.1 — Variable Interests in VIEs for which We are not the Primary Beneficiary | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Mortgage-Related | ||||||||||||||||||||
Security Trusts | ||||||||||||||||||||
Asset-Backed | Freddie Mac | Non-Freddie Mac | Unsecuritized | Other(1) | ||||||||||||||||
Investment Trusts(1) | Securities(2) | Securities(1) | Multifamily | |||||||||||||||||
Loans (3) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets and Liabilities Recorded on our Consolidated Balance Sheets | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Restricted cash and cash equivalents | $ | — | $ | 6 | $ | — | $ | 8 | $ | 58 | ||||||||||
Investments in securities: | ||||||||||||||||||||
Available-for-sale, at fair value | — | 40,659 | 84,765 | — | — | |||||||||||||||
Trading, at fair value | — | 9,349 | 7,414 | — | — | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Held-for-investment, unsecuritized | — | — | — | 50,306 | — | |||||||||||||||
Held-for-sale | — | — | — | 8,727 | — | |||||||||||||||
Accrued interest receivable | — | 232 | 226 | 261 | 7 | |||||||||||||||
Other assets | — | 833 | 14 | 407 | 477 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities, net | — | (3 | ) | — | — | (35 | ) | |||||||||||||
Other liabilities | — | (875 | ) | (2 | ) | (12 | ) | (558 | ) | |||||||||||
Maximum Exposure to Loss | $ | — | $ | 72,072 | $ | 92,559 | $ | 59,710 | $ | 10,415 | ||||||||||
Total Assets of Non-Consolidated VIEs(4) | $ | — | $ | 84,731 | $ | 506,699 | $ | 105,120 | $ | 23,707 | ||||||||||
31-Dec-12 | ||||||||||||||||||||
Mortgage-Related | ||||||||||||||||||||
Security Trusts | ||||||||||||||||||||
Asset-Backed | Freddie Mac | Non-Freddie Mac | Unsecuritized | Other(1) | ||||||||||||||||
Investment Trusts(1) | Securities(2) | Securities(1) | Multifamily | |||||||||||||||||
Loans(3) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets and Liabilities Recorded on our Consolidated Balance Sheets | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Restricted cash and cash equivalents | $ | — | $ | 24 | $ | — | $ | 22 | $ | 119 | ||||||||||
Investments in securities: | ||||||||||||||||||||
Available-for-sale, at fair value | — | 58,515 | 110,583 | — | — | |||||||||||||||
Trading, at fair value | 292 | 10,354 | 10,617 | — | — | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Held-for-investment, unsecuritized | — | — | — | 62,245 | — | |||||||||||||||
Held-for-sale | — | — | — | 14,238 | — | |||||||||||||||
Accrued interest receivable | — | 324 | 350 | 326 | 7 | |||||||||||||||
Derivative assets, net | — | — | — | — | 1 | |||||||||||||||
Other assets | — | 558 | 2 | 381 | 482 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities, net | — | (1 | ) | — | — | (40 | ) | |||||||||||||
Other liabilities | — | (667 | ) | (2 | ) | (29 | ) | (635 | ) | |||||||||||
Maximum Exposure to Loss | $ | 292 | $ | 51,045 | $ | 128,475 | $ | 77,213 | $ | 10,871 | ||||||||||
Total Assets of Non-Consolidated VIEs(4) | $ | 10,901 | $ | 59,302 | $ | 768,704 | $ | 130,512 | $ | 25,004 | ||||||||||
-1 | For our involvement with non-consolidated asset-backed investment trusts, non-Freddie Mac security trusts, and certain other VIEs where we do not provide a guarantee, our maximum exposure to loss is computed as the carrying amount if the security is classified as trading or the amortized cost if the security is classified as available-for-sale for our investments and related assets recorded on our consolidated balance sheets, including any unrealized amounts recorded in AOCI for securities classified as available-for-sale. See “NOTE 7: INVESTMENTS IN SECURITIES” for additional information regarding our asset-backed investments and non-Freddie Mac securities. | |||||||||||||||||||
-2 | Freddie Mac securities include our variable interests in single-family multiclass REMICs and Other Structured Securities, multifamily PCs, multifamily Other Structured Securities, and Other Guarantee Transactions that we do not consolidate. Our maximum exposure to loss includes guaranteed UPB of assets held by the non-consolidated VIEs related to multifamily PCs, multifamily Other Structured Securities, and Other Guarantee Transactions for which we record a guarantee asset (component of Other Assets) and guarantee obligation (component of Other Liabilities) on our consolidated balance sheets. Our maximum exposure to loss excludes most of our investments in single-family multiclass REMICs and Other Structured Securities as we already consolidate most of the collateral of these trusts on our consolidated balance sheets. Our investments in single-family REMICs and Other Structured Securities that are not consolidated do not give rise to any additional exposure to credit loss as we already consolidate the underlying collateral. | |||||||||||||||||||
-3 | For unsecuritized multifamily loans, our maximum exposure to loss includes accrued interest receivable associated with these loans. See “NOTE 4: MORTGAGE LOANS AND LOAN LOSS RESERVES” for additional information about our unsecuritized multifamily loans. | |||||||||||||||||||
-4 | Except for unsecuritized multifamily loans, this represents the remaining UPB of assets held by non-consolidated VIEs using the most current information available, where our continuing involvement is significant. For unsecuritized multifamily loans, this represents the fair value of the property serving as collateral for the loan. We do not include the assets of our non-consolidated trusts related to single-family REMICs and Other Structured Securities backed by our PCs in this amount as we already consolidate the underlying collateral of these trusts on our consolidated balance sheets. |
Mortgage_Loans_and_Loan_Loss_R1
Mortgage Loans and Loan Loss Reserves (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | |||||||||||||||||||||||||||||||
Table - Mortgage Loans | ' | |||||||||||||||||||||||||||||||
Table 4.1 — Mortgage Loans | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Unsecuritized | Held by | Total | Unsecuritized | Held by | Total | |||||||||||||||||||||||||||
Consolidated | Consolidated | |||||||||||||||||||||||||||||||
Trusts | Trusts | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family:(1) | ||||||||||||||||||||||||||||||||
Fixed-rate | ||||||||||||||||||||||||||||||||
Amortizing | $ | 113,597 | $ | 1,402,841 | $ | 1,516,438 | $ | 131,061 | $ | 1,356,030 | $ | 1,487,091 | ||||||||||||||||||||
Interest-only | 1,476 | 4,826 | 6,302 | 2,445 | 8,874 | 11,319 | ||||||||||||||||||||||||||
Total fixed-rate | 115,073 | 1,407,667 | 1,522,740 | 133,506 | 1,364,904 | 1,498,410 | ||||||||||||||||||||||||||
Adjustable-rate | ||||||||||||||||||||||||||||||||
Amortizing | 1,935 | 65,429 | 67,364 | 2,630 | 67,067 | 69,697 | ||||||||||||||||||||||||||
Interest-only | 4,576 | 23,841 | 28,417 | 7,323 | 31,590 | 38,913 | ||||||||||||||||||||||||||
Total adjustable-rate | 6,511 | 89,270 | 95,781 | 9,953 | 98,657 | 108,610 | ||||||||||||||||||||||||||
Other Guarantee Transactions | — | 8,431 | 8,431 | — | 10,407 | 10,407 | ||||||||||||||||||||||||||
FHA/VA and other governmental | 553 | 3,354 | 3,907 | 1,285 | 3,062 | 4,347 | ||||||||||||||||||||||||||
Total single-family | 122,137 | 1,508,722 | 1,630,859 | 144,744 | 1,477,030 | 1,621,774 | ||||||||||||||||||||||||||
Multifamily:(1) | ||||||||||||||||||||||||||||||||
Fixed-rate | 50,701 | 444 | 51,145 | 66,384 | 448 | 66,832 | ||||||||||||||||||||||||||
Adjustable-rate | 8,467 | — | 8,467 | 10,182 | — | 10,182 | ||||||||||||||||||||||||||
Other governmental | 3 | — | 3 | 3 | — | 3 | ||||||||||||||||||||||||||
Total multifamily | 59,171 | 444 | 59,615 | 76,569 | 448 | 77,017 | ||||||||||||||||||||||||||
Total UPB of mortgage loans | 181,308 | 1,509,166 | 1,690,474 | 221,313 | 1,477,478 | 1,698,791 | ||||||||||||||||||||||||||
Deferred fees, unamortized premiums, discounts and other cost basis adjustments | (4,817 | ) | 23,745 | 18,928 | (5,376 | ) | 23,373 | 17,997 | ||||||||||||||||||||||||
Fair value adjustments on loans held-for sale(2) | 6 | — | 6 | 266 | — | 266 | ||||||||||||||||||||||||||
Allowance for loan losses on mortgage loans held-for-investment | (21,612 | ) | (3,006 | ) | (24,618 | ) | (25,788 | ) | (4,919 | ) | (30,707 | ) | ||||||||||||||||||||
Total mortgage loans, net | $ | 154,885 | $ | 1,529,905 | $ | 1,684,790 | $ | 190,415 | $ | 1,495,932 | $ | 1,686,347 | ||||||||||||||||||||
Mortgage loans, net: | ||||||||||||||||||||||||||||||||
Held-for-investment | $ | 146,158 | $ | 1,529,905 | $ | 1,676,063 | $ | 176,177 | $ | 1,495,932 | $ | 1,672,109 | ||||||||||||||||||||
Held-for-sale | 8,727 | — | 8,727 | 14,238 | — | 14,238 | ||||||||||||||||||||||||||
Total mortgage loans, net | $ | 154,885 | $ | 1,529,905 | $ | 1,684,790 | $ | 190,415 | $ | 1,495,932 | $ | 1,686,347 | ||||||||||||||||||||
-1 | Based on UPB and excluding mortgage loans traded, but not yet settled. | |||||||||||||||||||||||||||||||
-2 | Consists of fair value adjustments associated with multifamily mortgage loans for which we have made a fair value election. | |||||||||||||||||||||||||||||||
Table - Recorded Investment of Held-For-Invstment Mortgage Loans, by LTV Ratio | ' | |||||||||||||||||||||||||||||||
Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Estimated Current LTV Ratio(1) | Estimated Current LTV Ratio(1) | |||||||||||||||||||||||||||||||
≤ 80 | > 80 to 100 | > 100(2) | Total | ≤ 80 | > 80 to 100 | > 100(2) | Total | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family loans: | ||||||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 819,509 | $ | 269,110 | $ | 124,491 | $ | 1,213,110 | $ | 699,386 | $ | 309,099 | $ | 188,048 | $ | 1,196,533 | ||||||||||||||||
15-year amortizing fixed-rate(3) | 270,211 | 19,658 | 5,748 | 295,617 | 249,666 | 18,473 | 5,433 | 273,572 | ||||||||||||||||||||||||
Adjustable-rate(4) | 56,208 | 6,714 | 1,578 | 64,500 | 50,764 | 10,341 | 4,845 | 65,950 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 29,927 | 21,564 | 25,089 | 76,580 | 27,642 | 24,030 | 52,057 | 103,729 | ||||||||||||||||||||||||
Total single-family loans | $ | 1,175,855 | $ | 317,046 | $ | 156,906 | 1,649,807 | $ | 1,027,458 | $ | 361,943 | $ | 250,383 | 1,639,784 | ||||||||||||||||||
Multifamily loans | 50,874 | 63,032 | ||||||||||||||||||||||||||||||
Total recorded investment of held-for-investment loans | $ | 1,700,681 | $ | 1,702,816 | ||||||||||||||||||||||||||||
-1 | The current LTV ratios are management estimates, which are updated on a monthly basis. Current market values are estimated by adjusting the value of the property at origination based on changes in the market value of homes in the same geographical area since that time. The value of a property at origination is based on: (a) for purchase mortgages, either the lesser of the appraised value of the property at the time of mortgage origination or the mortgage borrower’s purchase price; or (b) for refinance mortgages, a third-party appraisal. Changes in market value are derived from our internal index which measures price changes for repeat sales and refinancing activity on the same properties using Freddie Mac and Fannie Mae single-family mortgage acquisitions, including foreclosure sales. Estimates of the current LTV ratio include the credit-enhanced portion of the loan and exclude any secondary financing by third parties. The existence of a second lien reduces the borrower’s equity in the property and, therefore, can increase the risk of default. | |||||||||||||||||||||||||||||||
-2 | The serious delinquency rate for the total of single-family held-for-investment mortgage loans with estimated current LTV ratios in excess of 100% was 9.9% and 12.7% as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
-3 | The majority of our loan modifications result in new terms that include fixed interest rates after modification. As of December 31, 2013 and 2012, we have categorized UPB of approximately $43.8 billion and $43.4 billion, respectively, of modified loans as fixed-rate loans (instead of as adjustable rate loans), even though the modified loans have rate adjustment provisions. In these cases, while the terms of the modified loans provide for the interest rate to adjust in the future, such future rates are determined at the time of modification rather than at a subsequent date. | |||||||||||||||||||||||||||||||
-4 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||||||
-5 | We have discontinued our purchases of Alt-A, interest-only, and option ARM loans. For reporting purposes: (a) loans within the Alt-A category continue to be presented in that category following modification, even though the borrower may have provided full documentation of assets and income to complete the modification; and (b) loans within the option ARM category continue to be presented in that category following modification, even though the modified loan no longer provides for optional payment provisions. | |||||||||||||||||||||||||||||||
Table - Detail of Loan Loss Reserves | ' | |||||||||||||||||||||||||||||||
Table 4.3 — Detail of Loan Loss Reserves | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Allowance for Loan Losses | Reserve for | Allowance for Loan Losses | Reserve for | |||||||||||||||||||||||||||||
Guarantee | Guarantee | |||||||||||||||||||||||||||||||
Unsecuritized | Held By | Losses(1) | Total | Unsecuritized | Held By | Losses(1) | Total | |||||||||||||||||||||||||
Consolidated | Consolidated | |||||||||||||||||||||||||||||||
Trusts | Trusts | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 25,449 | $ | 4,918 | $ | 141 | $ | 30,508 | $ | 30,406 | $ | 8,351 | $ | 159 | $ | 38,916 | ||||||||||||||||
Provision (benefit) for credit losses | (3,995 | ) | 1,790 | (42 | ) | (2,247 | ) | (3,186 | ) | 5,199 | — | 2,013 | ||||||||||||||||||||
Charge-offs(2) | (8,181 | ) | (804 | ) | (10 | ) | (8,995 | ) | (12,559 | ) | (950 | ) | (11 | ) | (13,520 | ) | ||||||||||||||||
Recoveries(3) | 3,810 | 503 | — | 4,313 | 2,136 | 126 | — | 2,262 | ||||||||||||||||||||||||
Transfers, net(4) | 4,404 | (3,401 | ) | (4 | ) | 999 | 8,652 | (7,808 | ) | (7 | ) | 837 | ||||||||||||||||||||
Ending balance | $ | 21,487 | $ | 3,006 | $ | 85 | $ | 24,578 | $ | 25,449 | $ | 4,918 | $ | 141 | $ | 30,508 | ||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 339 | $ | 1 | $ | 42 | $ | 382 | $ | 506 | $ | — | $ | 39 | $ | 545 | ||||||||||||||||
Provision (benefit) for credit losses | (208 | ) | (1 | ) | (9 | ) | (218 | ) | (132 | ) | — | 9 | (123 | ) | ||||||||||||||||||
Charge-offs(2) | (7 | ) | — | — | (7 | ) | (34 | ) | — | (2 | ) | (36 | ) | |||||||||||||||||||
Recoveries(3) | 1 | — | — | 1 | — | — | 2 | 2 | ||||||||||||||||||||||||
Transfers, net(4) | — | — | (7 | ) | (7 | ) | (1 | ) | 1 | (6 | ) | (6 | ) | |||||||||||||||||||
Ending balance | $ | 125 | $ | — | $ | 26 | $ | 151 | $ | 339 | $ | 1 | $ | 42 | $ | 382 | ||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 25,788 | $ | 4,919 | $ | 183 | $ | 30,890 | $ | 30,912 | $ | 8,351 | $ | 198 | $ | 39,461 | ||||||||||||||||
Provision (benefit) for credit losses | (4,203 | ) | 1,789 | (51 | ) | (2,465 | ) | (3,318 | ) | 5,199 | 9 | 1,890 | ||||||||||||||||||||
Charge-offs(2) | (8,188 | ) | (804 | ) | (10 | ) | (9,002 | ) | (12,593 | ) | (950 | ) | (13 | ) | (13,556 | ) | ||||||||||||||||
Recoveries(3) | 3,811 | 503 | — | 4,314 | 2,136 | 126 | 2 | 2,264 | ||||||||||||||||||||||||
Transfers, net(4) | 4,404 | (3,401 | ) | (11 | ) | 992 | 8,651 | (7,807 | ) | (13 | ) | 831 | ||||||||||||||||||||
Ending balance | $ | 21,612 | $ | 3,006 | $ | 111 | $ | 24,729 | $ | 25,788 | $ | 4,919 | $ | 183 | $ | 30,890 | ||||||||||||||||
Total loan loss reserve as a percentage of the total mortgage portfolio, excluding non-Freddie Mac securities | 1.37 | % | 1.71 | % | ||||||||||||||||||||||||||||
-1 | Loans associated with our reserve for guarantee losses are those loans that underlie our non-consolidated securitization trusts and other guarantee commitments and are evaluated for impairment on a collective basis. Our reserve for guarantee losses is included in other liabilities on our consolidated balance sheets. | |||||||||||||||||||||||||||||||
-2 | Charge-offs represent the amount of a loan that has been discharged to remove the loan from our consolidated balance sheet principally due to either foreclosure transfers or short sales. Charge-offs exclude $252 million and $308 million for the years ended December 31, 2013 and 2012, respectively, related to: (a) amounts recorded as losses on loans purchased within other expenses on our consolidated statements of comprehensive income, which relate to certain loans purchased under financial guarantees; or (b) cumulative fair value losses recognized through the date of foreclosure for Multifamily loans which we elected to carry at fair value at the time of our purchase. We record charge-offs and recoveries on loans held by consolidated trusts when a loss event (such as a foreclosure transfer or foreclosure alternative) occurs on a loan while it remains in a consolidated trust. | |||||||||||||||||||||||||||||||
-3 | Recoveries of charge-offs primarily result from foreclosure alternatives and REO acquisitions on loans where: (a) a share of default risk has been assumed by mortgage insurers, servicers, or other third parties through credit enhancements; or (b) we received a reimbursement of our losses from a seller/servicer associated with a repurchase request on a loan that experienced a foreclosure transfer or a foreclosure alternative. | |||||||||||||||||||||||||||||||
-4 | For the years ended December 31, 2013 and 2012, consists of: (a) approximately $3.4 billion and $7.8 billion, respectively, of reclassified single-family reserves related to our removal of loans previously held by consolidated trusts; and (b) approximately $1.0 billion and $0.8 billion, respectively, attributable to capitalization of past due interest on modified mortgage loans. | |||||||||||||||||||||||||||||||
Table - Net Investment in Mortgage Loans | ' | |||||||||||||||||||||||||||||||
Table 4.4 — Net Investment in Mortgage Loans | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Single-family | Multifamily | Total | Single-family | Multifamily | Total | |||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Recorded investment: | ||||||||||||||||||||||||||||||||
Collectively evaluated | $ | 1,551,667 | $ | 49,598 | $ | 1,601,265 | $ | 1,550,493 | $ | 60,836 | $ | 1,611,329 | ||||||||||||||||||||
Individually evaluated | 98,140 | 1,276 | 99,416 | 89,291 | 2,196 | 91,487 | ||||||||||||||||||||||||||
Total recorded investment | 1,649,807 | 50,874 | 1,700,681 | 1,639,784 | 63,032 | 1,702,816 | ||||||||||||||||||||||||||
Ending balance of the allowance for loan losses: | ||||||||||||||||||||||||||||||||
Collectively evaluated | (5,939 | ) | (45 | ) | (5,984 | ) | (12,432 | ) | (135 | ) | (12,567 | ) | ||||||||||||||||||||
Individually evaluated | (18,554 | ) | (80 | ) | (18,634 | ) | (17,935 | ) | (205 | ) | (18,140 | ) | ||||||||||||||||||||
Total ending balance of the allowance | (24,493 | ) | (125 | ) | (24,618 | ) | (30,367 | ) | (340 | ) | (30,707 | ) | ||||||||||||||||||||
Net investment in mortgage loans | $ | 1,625,314 | $ | 50,749 | $ | 1,676,063 | $ | 1,609,417 | $ | 62,692 | $ | 1,672,109 | ||||||||||||||||||||
Table - Recourse and other forms of credit protection | ' | |||||||||||||||||||||||||||||||
Table 4.5 — Recourse and Other Forms of Credit Protection(1) | ||||||||||||||||||||||||||||||||
UPB at | Maximum Coverage(2) at | |||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Single-family: | ||||||||||||||||||||||||||||||||
Primary mortgage insurance | $ | 203,470 | $ | 188,419 | $ | 50,823 | $ | 46,685 | ||||||||||||||||||||||||
Risk transfer transactions(3) | 56,903 | — | 1,183 | — | ||||||||||||||||||||||||||||
Lender recourse and indemnifications | 7,119 | 7,875 | 6,726 | 7,718 | ||||||||||||||||||||||||||||
Pool insurance(4) | 4,683 | 7,307 | 1,186 | 1,355 | ||||||||||||||||||||||||||||
HFA indemnification(5) | 4,051 | 6,270 | 3,323 | 3,323 | ||||||||||||||||||||||||||||
Subordination(6) | 2,644 | 2,960 | 399 | 503 | ||||||||||||||||||||||||||||
Other credit enhancements | 38 | 62 | 38 | 62 | ||||||||||||||||||||||||||||
Total | $ | 278,908 | $ | 212,893 | $ | 63,678 | $ | 59,646 | ||||||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||||||
K Certificates(7) | $ | 59,326 | $ | 36,732 | $ | 10,601 | $ | 6,256 | ||||||||||||||||||||||||
Subordination(6) | 4,435 | 3,817 | 756 | 442 | ||||||||||||||||||||||||||||
HFA indemnification(5) | 905 | 1,112 | 699 | 699 | ||||||||||||||||||||||||||||
Other credit enhancements | 6,666 | 7,235 | 1,834 | 2,263 | ||||||||||||||||||||||||||||
Total | $ | 71,332 | $ | 48,896 | $ | 13,890 | $ | 9,660 | ||||||||||||||||||||||||
-1 | Includes the credit protection associated with unsecuritized mortgage loans, loans held by our consolidated trusts as well as our non-consolidated mortgage guarantees and excludes FHA/VA and other governmental loans. Except for subordination coverage, these amounts exclude credit protection associated with $11.5 billion and $13.8 billion in UPB of single-family loans underlying Other Guarantee Transactions as of December 31, 2013 and 2012, respectively, for which the information was not available. Also excludes repurchase rights (subject to certain conditions and limitations) we have under representations and warranties provided by our agreements with seller/servicers to underwrite loans and service them in accordance with our standards. | |||||||||||||||||||||||||||||||
-2 | Except for subordination and K Certificates, this represents the remaining amount of loss recovery that is available subject to terms of counterparty agreements. For subordination and K Certificates coverage, this represents the UPB of the securities that are subordinate to our guarantee, which could provide protection by absorbing first losses. | |||||||||||||||||||||||||||||||
-3 | Represents: (a) STACR debt note transactions in which we issue and sell debt securities, the principal balance of which is subject to the credit and prepayment risk of a reference pool of single-family mortgage loans owned or guaranteed by Freddie Mac; and (b) a transaction in which we purchased an insurance policy on a portion of the mezzanine loss position that was not issued in one of the STACR debt note transactions. UPB amounts presented represent the UPB of the loans in the reference pool. Maximum coverage amounts presented represent the outstanding balance of the debt securities held by third parties as well as the remaining aggregate limit of insurance purchased from a third party. | |||||||||||||||||||||||||||||||
-4 | Maximum coverage amounts presented have been limited to the UPB at period end. Excludes approximately $1.8 billion and $3.3 billion in UPB at December 31, 2013 and 2012, respectively, where the related loans are also covered by primary mortgage insurance. | |||||||||||||||||||||||||||||||
-5 | Represents the amount of potential reimbursement of losses on securities we have guaranteed that are backed by state and local HFA bonds related to the HFA initiative, under which Treasury bears initial losses on these securities up to 35% of the original UPB issued under the HFA initiative on a combined program-wide basis. Treasury will also bear losses of unpaid interest. | |||||||||||||||||||||||||||||||
-6 | Represents Freddie Mac issued mortgage-related securities with subordination protection, excluding multifamily K Certificates and those securities backed by state and local HFA bonds related to the HFA initiative. Excludes mortgage-related securities where subordination coverage was exhausted. Maximum coverage amounts are limited to the UPB. | |||||||||||||||||||||||||||||||
-7 | Represents multifamily K Certificates with subordination protection. |
Individually_Impaired_and_NonP1
Individually Impaired and Non-Performing Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Individually Impaired and Non-Performing Loans [Abstract] | ' | |||||||||||||||||||||||||||
Table - Individually Impaired Loans | ' | |||||||||||||||||||||||||||
Table 5.1 — Individually Impaired Loans | ||||||||||||||||||||||||||||
Balance at | For The Year Ended | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||||||||||
UPB | Recorded | Associated | Net | Average | Interest | Interest | ||||||||||||||||||||||
Investment | Allowance | Investment | Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||||||||||
On Cash | ||||||||||||||||||||||||||||
Basis(1) | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
With no specific allowance recorded(2): | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 5,927 | $ | 3,355 | $ | — | $ | 3,355 | $ | 3,370 | $ | 394 | $ | 34 | ||||||||||||||
15-year amortizing fixed-rate(3) | 62 | 34 | — | 34 | 31 | 6 | 1 | |||||||||||||||||||||
Adjustable rate(4) | 19 | 13 | — | 13 | 13 | 1 | — | |||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 1,758 | 1,038 | — | 1,038 | 978 | 72 | 6 | |||||||||||||||||||||
Total with no specific allowance recorded | 7,766 | 4,440 | — | 4,440 | 4,392 | 473 | 41 | |||||||||||||||||||||
With specific allowance recorded:(6) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 75,633 | 74,554 | (14,431 | ) | 60,123 | 69,922 | 2,127 | 282 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,324 | 1,324 | (43 | ) | 1,281 | 1,109 | 50 | 11 | ||||||||||||||||||||
Adjustable rate(4) | 967 | 962 | (84 | ) | 878 | 855 | 22 | 6 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 17,210 | 16,860 | (3,996 | ) | 12,864 | 16,526 | 369 | 69 | ||||||||||||||||||||
Total with specific allowance recorded | 95,134 | 93,700 | (18,554 | ) | 75,146 | 88,412 | 2,568 | 368 | ||||||||||||||||||||
Combined single-family: | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 81,560 | 77,909 | (14,431 | ) | 63,478 | 73,292 | 2,521 | 316 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,386 | 1,358 | (43 | ) | 1,315 | 1,140 | 56 | 12 | ||||||||||||||||||||
Adjustable rate(4) | 986 | 975 | (84 | ) | 891 | 868 | 23 | 6 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 18,968 | 17,898 | (3,996 | ) | 13,902 | 17,504 | 441 | 75 | ||||||||||||||||||||
Total single-family(7) | $ | 102,900 | $ | 98,140 | $ | (18,554 | ) | $ | 79,586 | $ | 92,804 | $ | 3,041 | $ | 409 | |||||||||||||
Multifamily — | ||||||||||||||||||||||||||||
With no specific allowance recorded(8) | $ | 694 | $ | 681 | $ | — | $ | 681 | $ | 1,108 | $ | 48 | $ | 20 | ||||||||||||||
With specific allowance recorded | 608 | 595 | (80 | ) | 515 | 891 | 41 | 31 | ||||||||||||||||||||
Total multifamily | $ | 1,302 | $ | 1,276 | $ | (80 | ) | $ | 1,196 | $ | 1,999 | $ | 89 | $ | 51 | |||||||||||||
Total single-family and multifamily | $ | 104,202 | $ | 99,416 | $ | (18,634 | ) | $ | 80,782 | $ | 94,803 | $ | 3,130 | $ | 460 | |||||||||||||
Balance at | For The Year Ended | |||||||||||||||||||||||||||
31-Dec-12 | December 31, 2012 | |||||||||||||||||||||||||||
UPB | Recorded | Associated | Net | Average | Interest | Interest | ||||||||||||||||||||||
Investment | Allowance | Investment | Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||||||||||
On Cash | ||||||||||||||||||||||||||||
Basis(1) | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
With no specific allowance recorded(2): | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | $ | 6,582 | $ | 3,236 | $ | — | $ | 3,236 | $ | 3,136 | $ | 339 | $ | 46 | ||||||||||||||
15-year amortizing fixed-rate(3) | 64 | 30 | — | 30 | 25 | 6 | 1 | |||||||||||||||||||||
Adjustable rate(4) | 19 | 12 | — | 12 | 7 | — | — | |||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 1,799 | 857 | — | 857 | 847 | 63 | 11 | |||||||||||||||||||||
Total with no specific allowance recorded | 8,464 | 4,135 | — | 4,135 | 4,015 | 408 | 58 | |||||||||||||||||||||
With specific allowance recorded:(6) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 67,473 | 66,501 | (13,522 | ) | 52,979 | 55,431 | 1,632 | 279 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,134 | 1,125 | (55 | ) | 1,070 | 714 | 31 | 8 | ||||||||||||||||||||
Adjustable rate(4) | 883 | 874 | (107 | ) | 767 | 558 | 14 | 5 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 16,946 | 16,656 | (4,251 | ) | 12,405 | 14,278 | 326 | 82 | ||||||||||||||||||||
Total with specific allowance recorded | 86,436 | 85,156 | (17,935 | ) | 67,221 | 70,981 | 2,003 | 374 | ||||||||||||||||||||
Combined single-family: | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 74,055 | 69,737 | (13,522 | ) | 56,215 | 58,567 | 1,971 | 325 | ||||||||||||||||||||
15-year amortizing fixed-rate(3) | 1,198 | 1,155 | (55 | ) | 1,100 | 739 | 37 | 9 | ||||||||||||||||||||
Adjustable rate (4) | 902 | 886 | (107 | ) | 779 | 565 | 14 | 5 | ||||||||||||||||||||
Alt-A, interest-only, and option ARM(5) | 18,745 | 17,513 | (4,251 | ) | 13,262 | 15,125 | 389 | 93 | ||||||||||||||||||||
Total single-family(7) | $ | 94,900 | $ | 89,291 | $ | (17,935 | ) | $ | 71,356 | $ | 74,996 | $ | 2,411 | $ | 432 | |||||||||||||
Multifamily — | ||||||||||||||||||||||||||||
With no specific allowance recorded(8) | $ | 978 | $ | 966 | $ | — | $ | 966 | $ | 1,420 | $ | 61 | $ | 37 | ||||||||||||||
With specific allowance recorded | 1,248 | 1,230 | (205 | ) | 1,025 | 1,470 | 68 | 51 | ||||||||||||||||||||
Total multifamily | $ | 2,226 | $ | 2,196 | $ | (205 | ) | $ | 1,991 | $ | 2,890 | $ | 129 | $ | 88 | |||||||||||||
Total single-family and multifamily | $ | 97,126 | $ | 91,487 | $ | (18,140 | ) | $ | 73,347 | $ | 77,886 | $ | 2,540 | $ | 520 | |||||||||||||
-1 | Consists of income recognized during the period related to loans categorized as non-accrual. | |||||||||||||||||||||||||||
-2 | Individually impaired loans with no specific related valuation allowance primarily represent mortgage loans removed from PC pools and accounted for in accordance with the accounting guidance for loans and debt securities acquired with deteriorated credit quality that have not experienced further deterioration. | |||||||||||||||||||||||||||
-3 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-4 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||
-5 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-6 | Consists primarily of mortgage loans classified as TDRs. | |||||||||||||||||||||||||||
-7 | As of December 31, 2013 and 2012 includes $95.1 billion and $86.4 billion, respectively, of UPB associated with loans for which we have recorded a specific allowance, and $7.8 billion and $8.5 billion, respectively, of UPB associated with loans that have no specific allowance recorded. See endnote (2) for additional information. | |||||||||||||||||||||||||||
-8 | Individually impaired multifamily loans with no specific related valuation allowance primarily represent those loans for which the collateral value is sufficiently in excess of the loan balance to result in recovery of the entire recorded investment if the property were foreclosed upon or otherwise subject to disposition. | |||||||||||||||||||||||||||
Table - Payment Status of Mortgage Loans | ' | |||||||||||||||||||||||||||
Table 5.2 — Payment Status of Mortgage Loans(1) | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Current | One | Two | Three Months or | Total | Non-accrual | |||||||||||||||||||||||
Month | Months | More Past Due, | ||||||||||||||||||||||||||
Past Due | Past Due | or in Foreclosure | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | $ | 1,157,057 | $ | 19,743 | $ | 6,675 | $ | 29,635 | $ | 1,213,110 | $ | 29,620 | ||||||||||||||||
15-year amortizing fixed-rate(2) | 293,286 | 1,196 | 271 | 864 | 295,617 | 863 | ||||||||||||||||||||||
Adjustable-rate(3) | 62,987 | 495 | 147 | 871 | 64,500 | 871 | ||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 62,356 | 2,898 | 1,157 | 10,169 | 76,580 | 10,162 | ||||||||||||||||||||||
Total single-family | 1,575,686 | 24,332 | 8,250 | 41,539 | 1,649,807 | 41,516 | ||||||||||||||||||||||
Total multifamily | 50,827 | — | 21 | 26 | 50,874 | 627 | ||||||||||||||||||||||
Total single-family and multifamily | $ | 1,626,513 | $ | 24,332 | $ | 8,271 | $ | 41,565 | $ | 1,700,681 | $ | 42,143 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Current | One | Two | Three Months or | Total | Non-accrual | |||||||||||||||||||||||
Month | Months | More Past Due, | ||||||||||||||||||||||||||
Past Due | Past Due | or in Foreclosure | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Single-family — | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | $ | 1,125,996 | $ | 21,509 | $ | 8,051 | $ | 40,977 | $ | 1,196,533 | $ | 40,833 | ||||||||||||||||
15-year amortizing fixed-rate(2) | 270,730 | 1,320 | 338 | 1,184 | 273,572 | 1,177 | ||||||||||||||||||||||
Adjustable-rate(3) | 63,736 | 614 | 212 | 1,388 | 65,950 | 1,383 | ||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 82,438 | 3,439 | 1,582 | 16,270 | 103,729 | 16,237 | ||||||||||||||||||||||
Total single-family | 1,542,900 | 26,882 | 10,183 | 59,819 | 1,639,784 | 59,630 | ||||||||||||||||||||||
Total multifamily | 63,000 | — | 2 | 30 | 63,032 | 1,457 | ||||||||||||||||||||||
Total single-family and multifamily | $ | 1,605,900 | $ | 26,882 | $ | 10,185 | $ | 59,849 | $ | 1,702,816 | $ | 61,087 | ||||||||||||||||
-1 | Based on recorded investment in the loan. Mortgage loans that have been modified are not counted as past due as long as the borrower is current under the modified terms. The payment status of a loan may be affected by temporary timing differences, or lags, in the reporting of this information to us by our servicers. | |||||||||||||||||||||||||||
-2 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-3 | Includes balloon/reset mortgage loans and excludes option ARMs. | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
Table - Delinquency Rates | ' | |||||||||||||||||||||||||||
Table 5.3 — Delinquency Rates | ||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Single-family:(1) | ||||||||||||||||||||||||||||
Non-credit-enhanced portfolio (excluding Other Guarantee Transactions): | ||||||||||||||||||||||||||||
Serious delinquency rate | 1.99 | % | 2.62 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 183,822 | 244,533 | ||||||||||||||||||||||||||
Credit-enhanced portfolio (excluding Other Guarantee Transactions): | ||||||||||||||||||||||||||||
Serious delinquency rate | 4.34 | % | 6.83 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 56,794 | 90,747 | ||||||||||||||||||||||||||
Other Guarantee Transactions:(2) | ||||||||||||||||||||||||||||
Serious delinquency rate | 10.91 | % | 10.6 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 14,709 | 17,580 | ||||||||||||||||||||||||||
Total single-family: | ||||||||||||||||||||||||||||
Serious delinquency rate | 2.39 | % | 3.25 | % | ||||||||||||||||||||||||
Total number of seriously delinquent loans | 255,325 | 352,860 | ||||||||||||||||||||||||||
Multifamily:(3) | ||||||||||||||||||||||||||||
Non-credit-enhanced portfolio: | ||||||||||||||||||||||||||||
Delinquency rate | 0.07 | % | 0.1 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 46 | $ | 76 | ||||||||||||||||||||||||
Credit-enhanced portfolio: | ||||||||||||||||||||||||||||
Delinquency rate | 0.11 | % | 0.36 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 75 | $ | 172 | ||||||||||||||||||||||||
Total Multifamily: | ||||||||||||||||||||||||||||
Delinquency rate | 0.09 | % | 0.19 | % | ||||||||||||||||||||||||
UPB of delinquent loans (in millions) | $ | 121 | $ | 248 | ||||||||||||||||||||||||
-1 | Single-family mortgage loans that have been modified are not counted as seriously delinquent if the borrower is less than three monthly payments past due under the modified terms. Serious delinquencies on single-family mortgage loans underlying certain REMICs and Other Structured Securities, Other Guarantee Transactions, and other guarantee commitments may be reported on a different schedule due to variances in industry practice. | |||||||||||||||||||||||||||
-2 | Single-family Other Guarantee Transactions generally have underlying mortgage loans with higher risk characteristics, but some single-family Other Guarantee Transactions may provide inherent credit protections from losses due to underlying subordination, excess interest, overcollateralization and other features. | |||||||||||||||||||||||||||
-3 | Multifamily delinquency performance is based on UPB of mortgage loans that are two monthly payments or more past due or those in the process of foreclosure and includes multifamily Other Guarantee Transactions (e.g., K Certificates). Excludes mortgage loans that have been modified as long as the borrower is less than two monthly payments past due under the modified contractual terms. | |||||||||||||||||||||||||||
Table - TDR Activity, by Segment | ' | |||||||||||||||||||||||||||
Table 5.4 — TDR Activity, by Segment | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||
# of Loans | Post-TDR | # of Loans | Post-TDR | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Single-family(1) | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(2) | 101,538 | $ | 16,014 | 177,930 | $ | 27,076 | ||||||||||||||||||||||
15-year amortizing fixed-rate | 11,671 | 825 | 17,549 | 1,176 | ||||||||||||||||||||||||
Adjustable-rate(3) | 3,604 | 574 | 6,496 | 977 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 17,770 | 3,941 | 35,012 | 7,834 | ||||||||||||||||||||||||
Total Single-family | 134,583 | 21,354 | 236,987 | 37,063 | ||||||||||||||||||||||||
Multifamily | 8 | 98 | 20 | 202 | ||||||||||||||||||||||||
Total | 134,591 | $ | 21,452 | 237,007 | $ | 37,265 | ||||||||||||||||||||||
-1 | The pre-TDR recorded investment for single-family loans initially classified as TDR during the years ended December 31, 2013 and 2012, was $21.2 billion and $37.0 billion, respectively. During the third quarter of 2012, we changed the treatment of single-family loans discharged in Chapter 7 bankruptcy to classify these loans as TDRs, regardless of the borrowers’ payment status and when the loans were not already classified as TDRs for other reasons. As a result, the 2012 period reflects the initial classification of such loans as TDRs. | |||||||||||||||||||||||||||
-2 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-3 | Includes balloon/reset mortgage loans. | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
Table - Payment Defaults of Completed TDR Modifications, by Segment | ' | |||||||||||||||||||||||||||
Table 5.5 — Payment Defaults of Completed TDR Modifications, by Segment(1) | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||||
# of Loans | Post-TDR | # of Loans | Post-TDR | |||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||
Investment(2) | Investment(2) | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Single-family | ||||||||||||||||||||||||||||
20 and 30-year or more, amortizing fixed-rate(3) | 14,964 | $ | 2,766 | 15,718 | $ | 2,905 | ||||||||||||||||||||||
15-year amortizing fixed-rate | 471 | 52 | 716 | 73 | ||||||||||||||||||||||||
Adjustable-rate | 237 | 50 | 331 | 71 | ||||||||||||||||||||||||
Alt-A, interest-only, and option ARM(4) | 2,256 | 587 | 3,042 | 805 | ||||||||||||||||||||||||
Total single-family | 17,928 | $ | 3,455 | 19,807 | $ | 3,854 | ||||||||||||||||||||||
Multifamily | — | $ | — | 6 | $ | 82 | ||||||||||||||||||||||
-1 | Represents TDR loans that experienced a payment default during the period and had completed a modification during the year preceding the payment default. A payment default occurs when a borrower either: (a) became two or more months delinquent; or (b) completed a loss event, such as a short sale or foreclosure transfer. We only include payment defaults for a single loan once during each quarterly period within a year; however, a single loan will be reflected more than once if the borrower experienced another payment default in a subsequent quarterly period. | |||||||||||||||||||||||||||
-2 | Represents the recorded investment at the end of the period in which the loan was modified and does not represent the recorded investment as of December 31. | |||||||||||||||||||||||||||
-3 | See endnote (3) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” | |||||||||||||||||||||||||||
-4 | See endnote (5) of “Table 4.2 — Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio.” |
Real_Estate_Owned_Tables
Real Estate Owned (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Repossessed Assets [Abstract] | ' | |||||||||||
Table - REO | ' | |||||||||||
Table 6.1 — REO | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Beginning balance — REO | $ | 4,407 | $ | 5,827 | $ | 7,368 | ||||||
Additions | 6,498 | 7,029 | 8,970 | |||||||||
Dispositions | (6,303 | ) | (8,449 | ) | (10,511 | ) | ||||||
Ending balance — REO | 4,602 | 4,407 | 5,827 | |||||||||
Beginning balance, valuation allowance | (29 | ) | (147 | ) | (300 | ) | ||||||
Change in valuation allowance | (22 | ) | 118 | 153 | ||||||||
Ending balance, valuation allowance | (51 | ) | (29 | ) | (147 | ) | ||||||
Ending balance — REO, net | $ | 4,551 | $ | 4,378 | $ | 5,680 | ||||||
Investments_in_Securities_Tabl
Investments in Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Available-For-Sale Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.1 — Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 39,001 | $ | 1,847 | $ | (189 | ) | $ | 40,659 | |||||||||||||||||||||||||||||||||||||||
Fannie Mae | 10,140 | 660 | (3 | ) | 10,797 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 149 | 18 | — | 167 | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | 29,151 | 1,524 | (337 | ) | 30,338 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | 29,897 | 382 | (2,780 | ) | 27,499 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | 6,617 | 338 | (381 | ) | 6,574 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,322 | 526 | (142 | ) | 8,706 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,533 | 23 | (61 | ) | 3,495 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 629 | 61 | (6 | ) | 684 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 127,439 | $ | 5,379 | $ | (3,899 | ) | $ | 128,919 | |||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 53,965 | $ | 4,602 | $ | (52 | ) | $ | 58,515 | |||||||||||||||||||||||||||||||||||||||
Fannie Mae | 14,183 | 1,099 | (2 | ) | 15,280 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 183 | 26 | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | 47,606 | 3,882 | (181 | ) | 51,307 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | 35,503 | 83 | (9,129 | ) | 26,457 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | 7,454 | 48 | (1,785 | ) | 5,717 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 11,861 | 244 | (1,201 | ) | 10,904 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,647 | 154 | (3 | ) | 5,798 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 716 | 24 | (31 | ) | 709 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 177,118 | $ | 10,162 | $ | (12,384 | ) | $ | 174,896 | |||||||||||||||||||||||||||||||||||||||
Table - Available-For-Sale Securities in a Gross Unrealized Loss Position | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.2 — Available-For-Sale Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | ||||||||||||||||||||||||||||||||||||
Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | ||||||||||||||||||||||||||||||||||||||||
Impairment(1) | Impairment(1) | Impairment(1) | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 7,957 | $ | — | $ | (144 | ) | $ | (144 | ) | $ | 649 | $ | — | $ | (45 | ) | $ | (45 | ) | $ | 8,606 | $ | — | $ | (189 | ) | $ | (189 | ) | ||||||||||||||||||
Fannie Mae | 248 | — | (2 | ) | (2 | ) | 19 | — | (1 | ) | (1 | ) | 267 | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||||||||
CMBS | 1,147 | (7 | ) | (78 | ) | (85 | ) | 1,992 | (16 | ) | (236 | ) | (252 | ) | 3,139 | (23 | ) | (314 | ) | (337 | ) | |||||||||||||||||||||||||||
Subprime | 472 | (19 | ) | — | (19 | ) | 19,103 | (2,448 | ) | (313 | ) | (2,761 | ) | 19,575 | (2,467 | ) | (313 | ) | (2,780 | ) | ||||||||||||||||||||||||||||
Option ARM | 77 | (2 | ) | — | (2 | ) | 2,608 | (374 | ) | (5 | ) | (379 | ) | 2,685 | (376 | ) | (5 | ) | (381 | ) | ||||||||||||||||||||||||||||
Alt-A and other | 262 | (5 | ) | — | (5 | ) | 1,854 | (113 | ) | (24 | ) | (137 | ) | 2,116 | (118 | ) | (24 | ) | (142 | ) | ||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,885 | (7 | ) | (49 | ) | (56 | ) | 24 | — | (5 | ) | (5 | ) | 1,909 | (7 | ) | (54 | ) | (61 | ) | ||||||||||||||||||||||||||||
Manufactured housing | — | — | — | — | 65 | (4 | ) | (2 | ) | (6 | ) | 65 | (4 | ) | (2 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Total available-for-sale securities in a gross unrealized loss position | $ | 12,048 | $ | (40 | ) | $ | (273 | ) | $ | (313 | ) | $ | 26,314 | $ | (2,955 | ) | $ | (631 | ) | $ | (3,586 | ) | $ | 38,362 | $ | (2,995 | ) | $ | (904 | ) | $ | (3,899 | ) | |||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | Fair | Other-Than- | Temporary | Total | ||||||||||||||||||||||||||||||||||||
Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | Value | Temporary | Impairment(2) | ||||||||||||||||||||||||||||||||||||||||
Impairment(1) | Impairment(1) | Impairment(1) | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,811 | $ | — | $ | (25 | ) | $ | (25 | ) | $ | 1,872 | $ | — | $ | (27 | ) | $ | (27 | ) | $ | 3,683 | $ | — | $ | (52 | ) | $ | (52 | ) | ||||||||||||||||||
Fannie Mae | 170 | — | — | — | 55 | — | (2 | ) | (2 | ) | 225 | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||
CMBS | 340 | — | (3 | ) | (3 | ) | 3,425 | (22 | ) | (156 | ) | (178 | ) | 3,765 | (22 | ) | (159 | ) | (181 | ) | ||||||||||||||||||||||||||||
Subprime | 298 | (23 | ) | — | (23 | ) | 25,676 | (7,830 | ) | (1,276 | ) | (9,106 | ) | 25,974 | (7,853 | ) | (1,276 | ) | (9,129 | ) | ||||||||||||||||||||||||||||
Option ARM | 82 | (3 | ) | — | (3 | ) | 5,182 | (1,759 | ) | (23 | ) | (1,782 | ) | 5,264 | (1,762 | ) | (23 | ) | (1,785 | ) | ||||||||||||||||||||||||||||
Alt-A and other | 50 | (4 | ) | — | (4 | ) | 7,938 | (961 | ) | (236 | ) | (1,197 | ) | 7,988 | (965 | ) | (236 | ) | (1,201 | ) | ||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 37 | — | (1 | ) | (1 | ) | 45 | — | (2 | ) | (2 | ) | 82 | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||||||||
Manufactured housing | 46 | — | — | — | 222 | (26 | ) | (5 | ) | (31 | ) | 268 | (26 | ) | (5 | ) | (31 | ) | ||||||||||||||||||||||||||||||
Total available-for-sale securities in a gross unrealized loss position | $ | 2,834 | $ | (30 | ) | $ | (29 | ) | $ | (59 | ) | $ | 44,415 | $ | (10,598 | ) | $ | (1,727 | ) | $ | (12,325 | ) | $ | 47,249 | $ | (10,628 | ) | $ | (1,756 | ) | $ | (12,384 | ) | |||||||||||||||
-1 | Represents the gross unrealized losses for securities for which we have previously recognized other-than-temporary impairments in earnings. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Represents the gross unrealized losses for securities for which we have not previously recognized other-than-temporary impairments in earnings. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Significant Modeled Attributes for Certain Available-For-Sale Non-Agency Mortgage-Related Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.3 — Significant Modeled Attributes for Certain Available-For-Sale Non-Agency Mortgage-Related Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Alt-A(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime First | Option ARM | Fixed Rate | Variable Rate | Hybrid Rate | ||||||||||||||||||||||||||||||||||||||||||||
Lien(2) | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance Date | ||||||||||||||||||||||||||||||||||||||||||||||||
2004 and prior: | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 896 | $ | 49 | $ | 498 | $ | 336 | $ | 342 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 37 | % | 23 | % | 13 | % | 31 | % | 19 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 58 | % | 46 | % | 47 | % | 43 | % | 37 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 7 | % | 8 | % | 11 | % | 7 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 38 | % | 4 | % | 15 | % | 15 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||
2005:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 3,687 | $ | 2,221 | $ | 714 | $ | 591 | $ | 3,068 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 46 | % | 34 | % | 20 | % | 40 | % | 24 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 60 | % | 51 | % | 46 | % | 48 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 4 | % | 7 | % | 9 | % | 7 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 46 | % | 3 | % | — | % | 21 | % | 2 | % | ||||||||||||||||||||||||||||||||||||||
2006:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 16,547 | $ | 4,870 | $ | 397 | $ | 846 | $ | 907 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 54 | % | 44 | % | 28 | % | 47 | % | 26 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 53 | % | 47 | % | 53 | % | 40 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 8 | % | 6 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 5 | % | (5 | )% | — | % | (9 | )% | (3 | )% | ||||||||||||||||||||||||||||||||||||||
2007:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 18,287 | $ | 3,286 | $ | 138 | $ | 1,085 | $ | 225 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 53 | % | 44 | % | 47 | % | 46 | % | 43 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 52 | % | 52 | % | 52 | % | 48 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 6 | % | 6 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 4 | % | 4 | % | (1 | )% | (20 | )% | — | % | ||||||||||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||||||||||
UPB | $ | 39,417 | $ | 10,426 | $ | 1,747 | $ | 2,858 | $ | 4,542 | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral defaults(3) | 52 | % | 42 | % | 22 | % | 43 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average collateral severities(4) | 61 | % | 52 | % | 47 | % | 51 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average voluntary prepayment rates(5) | 2 | % | 6 | % | 9 | % | 6 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit enhancements(6) | 9 | % | — | % | 4 | % | (4 | )% | 1 | % | ||||||||||||||||||||||||||||||||||||||
-1 | Excludes non-agency mortgage-related securities backed by other loans, which primarily consist of securities backed by home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Excludes non-agency mortgage-related securities backed exclusively by subprime second liens. Certain securities identified as subprime first lien may be backed in part by subprime second-lien loans, as the underlying loans of these securities were permitted to include a small percentage of subprime second-lien loans. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | The expected cumulative default rate is expressed as a percentage of the current collateral UPB. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | The expected average loss given default is calculated as the ratio of cumulative loss over cumulative default for each security. | |||||||||||||||||||||||||||||||||||||||||||||||
-5 | The security’s voluntary prepayment rate represents the average of the monthly voluntary prepayment rate weighted by the security’s outstanding UPB. | |||||||||||||||||||||||||||||||||||||||||||||||
-6 | Positive values reflect the amount of subordination and other financial support (excluding credit enhancement provided by bond insurance) that will incur losses in the securitization structure before any losses are allocated to securities that we own. Percentage generally calculated based on: (a) the total UPB of securities subordinate to the securities we own; divided by (b) the total UPB of all of the securities issued by the trust (excluding notional balances). Negative values are shown when unallocated collateral losses will be allocated to the securities that we own in excess of current remaining credit enhancement, if any. The unallocated collateral losses have been considered in our assessment of other-than-temporary impairment. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Net Impairment of Available-For-Sale Securities Recognized in Earnings | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.4 — Net Impairment of Available-For-Sale Securities Recognized in Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Impairment of Available-For-Sale Securities Recognized in Earnings For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | $ | (14 | ) | $ | (138 | ) | $ | (353 | ) | |||||||||||||||||||||||||||||||||||||||
Subprime | (1,258 | ) | (1,274 | ) | (1,315 | ) | ||||||||||||||||||||||||||||||||||||||||||
Option ARM | (58 | ) | (556 | ) | (424 | ) | ||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | (179 | ) | (196 | ) | (198 | ) | ||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | (1 | ) | (4 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total net impairment of available-for-sale securities recognized in earnings | $ | (1,510 | ) | $ | (2,168 | ) | $ | (2,301 | ) | |||||||||||||||||||||||||||||||||||||||
-1 | Includes $568 million, $0 million, and $181 million of other-than-temporary impairments recognized in earnings for the years ended December 31, 2013, 2012, and 2011, respectively, as we had the intent to sell the related securities before recovery of their amortized cost basis. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Other-Than-Temporary Impairments Related to Credit Losses on Available-For-Sale Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.5 — Other-Than-Temporary Impairments Related to Credit Losses on Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit-related other-than-temporary impairments on available-for-sale securities recognized in earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings | $ | 16,745 | $ | 15,988 | ||||||||||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to credit losses for which an other-than-temporary impairment was not previously recognized | 46 | 141 | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to credit losses for which an other-than-temporary impairment was previously recognized | 896 | 2,027 | ||||||||||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to securities which were sold, written off, or matured | (1,193 | ) | (1,289 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts for which we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis | (1,536 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts related to amortization resulting from significant increases in cash flows expected to be collected and/or due to the passage of time that are recognized over the remaining life of the security | (495 | ) | (107 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings(1) | $ | 14,463 | $ | 16,745 | ||||||||||||||||||||||||||||||||||||||||||||
-1 | Excludes other-than-temporary impairments on securities that we intend to sell or it is more likely than not that we will be required to sell before recovery of the unrealized losses. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.6 — Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross realized gains | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 547 | $ | 34 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 17 | 14 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
CMBS | 1,301 | 82 | 37 | |||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 1 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 70 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 13 | 19 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Subprime | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities gross realized gains | 1,950 | 152 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
Gross realized gains | 1,950 | 152 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
Gross realized losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage related securities:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | (25 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | — | (81 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Option ARM | (4 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | (19 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Subprime | (3 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities gross realized losses | (51 | ) | — | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||
Gross realized losses | (51 | ) | — | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 1,899 | $ | 152 | $ | 58 | ||||||||||||||||||||||||||||||||||||||||||
-1 | The individual sales do not change our conclusion, at period end, that we do not intend to sell our remaining mortgage-related available-for-sale securities that are in an unrealized loss position and it is not more likely than not that we will be required to sell these securities before a sufficient time to recover all unrealized losses. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Maturities of Available-For-Sale Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.7 — Maturities of Available-For-Sale Securities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
After One Year Through | After Five Years | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | One Year or Less | Five Years | Through Ten Years | After Ten Years | |||||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 39,001 | $ | 40,659 | $ | 4 | $ | 4 | $ | 570 | $ | 599 | $ | 613 | $ | 654 | $ | 37,814 | $ | 39,402 | ||||||||||||||||||||||||||||
Fannie Mae | 10,140 | 10,797 | 3 | 3 | 275 | 291 | 163 | 177 | 9,699 | 10,326 | ||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 149 | 167 | — | — | 7 | 8 | 12 | 14 | 130 | 145 | ||||||||||||||||||||||||||||||||||||||
CMBS | 29,151 | 30,338 | — | — | 677 | 735 | — | — | 28,474 | 29,603 | ||||||||||||||||||||||||||||||||||||||
Subprime | 29,897 | 27,499 | — | — | — | — | — | — | 29,897 | 27,499 | ||||||||||||||||||||||||||||||||||||||
Option ARM | 6,617 | 6,574 | — | — | — | — | — | — | 6,617 | 6,574 | ||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,322 | 8,706 | 1 | 2 | 71 | 70 | 12 | 12 | 8,238 | 8,622 | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,533 | 3,495 | 5 | 5 | 39 | 42 | 106 | 107 | 3,383 | 3,341 | ||||||||||||||||||||||||||||||||||||||
Manufactured housing | 629 | 684 | — | — | — | — | — | — | 629 | 684 | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 127,439 | $ | 128,919 | $ | 13 | $ | 14 | $ | 1,639 | $ | 1,745 | $ | 906 | $ | 964 | $ | 124,881 | $ | 126,196 | ||||||||||||||||||||||||||||
Weighted Average Yield(2) | 2.99 | % | 5.62 | % | 5.19 | % | 5.16 | % | 2.95 | % | ||||||||||||||||||||||||||||||||||||||
-1 | Maturity information provided is based on contractual maturities, which may not represent the expected life as obligations underlying these securities may be prepaid at any time without penalty. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The weighted average yield is calculated based on a yield for each individual lot held at December 31, 2013 excluding any fully taxable-equivalent adjustments related to tax exempt sources of interest income. The numerator for the individual lot yield consists of the sum of: (a) the year-end interest coupon rate multiplied by the year-end UPB; and (b) the annualized amortization income or expense calculated for December 2013 (excluding the accretion of non-credit-related other-than-temporary impairments and any adjustments recorded for changes in the effective rate). The denominator for the individual lot yield consists of the year-end amortized cost of the lot excluding effects of other-than-temporary impairments on the UPB of impaired lots. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Trading Securities | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 7.8 — Trading Securities | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 9,349 | $ | 10,354 | ||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 7,180 | 10,338 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 98 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 141 | 156 | ||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | 16,768 | 20,979 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | 292 | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 2,254 | 1,160 | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 4,382 | 19,061 | ||||||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 6,636 | 20,513 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of trading securities | $ | 23,404 | $ | 41,492 | ||||||||||||||||||||||||||||||||||||||||||||
Debt_Securities_and_Subordinat1
Debt Securities and Subordinated Borrowings (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Table - Other Short-term Debt | ' | |||||||||||||||||||||||||
Table 8.1 — Other Short-Term Debt | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Par Value | Balance, Net(1) | Weighted Average | Par Value | Balance, Net(1) | Weighted Average | |||||||||||||||||||||
Effective Rate(2) | Effective Rate(2) | |||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Other short-term debt: | ||||||||||||||||||||||||||
Reference Bills® securities and discount notes | $ | 137,767 | $ | 137,712 | 0.13 | % | $ | 117,930 | $ | 117,889 | 0.15 | % | ||||||||||||||
Medium-term notes | 4,000 | 4,000 | 0.16 | — | — | — | ||||||||||||||||||||
Total other short-term debt | $ | 141,767 | $ | 141,712 | 0.13 | $ | 117,930 | $ | 117,889 | 0.15 | ||||||||||||||||
-1 | Represents par value, net of associated discounts or premiums. | |||||||||||||||||||||||||
-2 | Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or premiums, and issuance costs. | |||||||||||||||||||||||||
Table - Other Long-term Debt | ' | |||||||||||||||||||||||||
Table 8.2 — Other Long-Term Debt | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Contractual Maturity(1) | Par Value | Balance, Net(2) | Weighted Average | Par Value | Balance, Net(2) | Weighted Average | ||||||||||||||||||||
Effective Rate(3) | Effective Rate(3) | |||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Other long-term debt: | ||||||||||||||||||||||||||
Other senior debt:(4) | ||||||||||||||||||||||||||
Fixed-rate: | ||||||||||||||||||||||||||
Medium-term notes — callable(5) | 2014 - 2037 | $ | 101,190 | $ | 101,236 | 1.51 | % | $ | 94,655 | $ | 94,842 | 1.62 | % | |||||||||||||
Medium-term notes — non-callable | 2014 - 2028 | 37,878 | 38,107 | 0.99 | 42,623 | 42,877 | 1.08 | |||||||||||||||||||
U.S. dollar Reference Notes securities — non-callable | 2014 - 2032 | 190,371 | 190,406 | 2.71 | 225,857 | 225,885 | 2.82 | |||||||||||||||||||
€Reference Notes securities — non-callable | 2014 | 528 | 529 | 4.38 | 1,167 | 1,187 | 4.58 | |||||||||||||||||||
Variable-rate: | ||||||||||||||||||||||||||
Medium-term notes — callable | 2014 - 2028 | 6,001 | 6,001 | 1.66 | 6,953 | 6,953 | 2.57 | |||||||||||||||||||
Medium-term notes — non-callable | 2014 - 2026 | 18,533 | 18,533 | 0.22 | 46,194 | 46,197 | 0.27 | |||||||||||||||||||
STACR | 2023 | 1,107 | 1,155 | 4.29 | — | — | — | |||||||||||||||||||
Zero-coupon: | ||||||||||||||||||||||||||
Medium-term notes — callable | 2037 - 2040 | 1,200 | 311 | 5.82 | 1,300 | 324 | 5.71 | |||||||||||||||||||
Medium-term notes — non-callable | 2014 - 2039 | 12,217 | 8,334 | 3.08 | 15,240 | 10,923 | 4.03 | |||||||||||||||||||
Hedging-related basis adjustments | N/A | 41 | N/A | 57 | ||||||||||||||||||||||
Total other senior debt | 369,025 | 364,653 | 433,989 | 429,245 | ||||||||||||||||||||||
Other subordinated debt: | ||||||||||||||||||||||||||
Fixed-rate | 2016 - 2018 | 221 | 218 | 6.6 | 221 | 218 | 6.59 | |||||||||||||||||||
Zero-coupon | 2019 | 332 | 184 | 10.51 | 332 | 166 | 10.51 | |||||||||||||||||||
Total other subordinated debt | 553 | 402 | 553 | 384 | ||||||||||||||||||||||
Total other long-term debt | $ | 369,578 | $ | 365,055 | 2.08 | % | $ | 434,542 | $ | 429,629 | 2.15 | % | ||||||||||||||
-1 | Represents contractual maturities at December 31, 2013. | |||||||||||||||||||||||||
-2 | Represents par value of long-term debt securities and subordinated borrowings, net of associated discounts or premiums and hedge-related basis adjustments, with $2.6 billion and $2.2 billion, respectively, of other long-term debt that represents the fair value of debt securities with the fair value option elected at December 31, 2013 and 2012. | |||||||||||||||||||||||||
-3 | Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or premiums, issuance costs, and hedging-related basis adjustments. | |||||||||||||||||||||||||
-4 | For debt denominated in a currency other than the U.S. dollar, the outstanding balance is based on the exchange rate at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-5 | Includes callable FreddieNotes® securities of $0.8 billion and $1.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Table - Debt Securities of Consolidated Trusts Held by Third Parties | ' | |||||||||||||||||||||||||
Table 8.3 — Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Contractual | UPB | Balance, | Weighted | Contractual | UPB | Balance, | Weighted | |||||||||||||||||||
Maturity(1) | Net(2) | Average | Maturity(1) | Net(2) | Average | |||||||||||||||||||||
Coupon(1) | Coupon(1) | |||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||
Single-family:(3) | ||||||||||||||||||||||||||
30-year or more, fixed-rate | 2014 - 2052 | $ | 969,270 | $ | 993,683 | 4.14 | % | 2013 - 2048 | $ | 960,176 | $ | 982,718 | 4.53 | % | ||||||||||||
20-year fixed-rate | 2014 - 2034 | 75,910 | 78,252 | 3.81 | 2013 - 2033 | 73,902 | 76,079 | 4.09 | ||||||||||||||||||
15-year fixed-rate | 2014 - 2029 | 270,513 | 277,018 | 3.23 | 2013 - 2028 | 257,083 | 263,244 | 3.59 | ||||||||||||||||||
Adjustable-rate | 2014 - 2047 | 60,683 | 61,830 | 2.64 | 2013 - 2047 | 62,424 | 63,649 | 2.88 | ||||||||||||||||||
Interest-only(4) | 2026 - 2041 | 21,352 | 21,390 | 3.7 | 2026 - 2041 | 31,588 | 31,642 | 4.37 | ||||||||||||||||||
FHA/VA | 2014 - 2041 | 1,284 | 1,303 | 5.67 | 2013 - 2041 | 1,638 | 1,663 | 5.67 | ||||||||||||||||||
Total single-family | 1,399,012 | 1,433,476 | 1,386,811 | 1,418,995 | ||||||||||||||||||||||
Multifamily(5) | 2018 - 2019 | 444 | 508 | 4.96 | 2018 - 2019 | 448 | 529 | 4.96 | ||||||||||||||||||
Total debt securities of consolidated trusts held by third parties(6) | $ | 1,399,456 | $ | 1,433,984 | $ | 1,387,259 | $ | 1,419,524 | ||||||||||||||||||
-1 | Based on the contractual maturity and interest rate of debt securities of our consolidated trusts held by third parties. | |||||||||||||||||||||||||
-2 | Represents par value, net of associated discounts, premiums, and other basis adjustments. | |||||||||||||||||||||||||
-3 | Debt securities of consolidated trusts held by third parties are prepayable as the loans that collateralize the debt may prepay without penalty at any time. | |||||||||||||||||||||||||
-4 | Includes interest-only securities and interest-only mortgage loans that allow the borrowers to pay only interest for a fixed period of time before the loans begin to amortize. | |||||||||||||||||||||||||
-5 | Balance, Net includes interest-only securities recorded at fair value. | |||||||||||||||||||||||||
-6 | The effective rate for debt securities of consolidated trusts held by third parties was 3.39% and 3.49% as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Table - Contractual Maturity of Other Long-term Debt and Debt Securities of Consolidated Trusts Held by Third Parties | ' | |||||||||||||||||||||||||
Table 8.4 — Contractual Maturity of Other Long-Term Debt and Debt Securities of Consolidated Trusts Held by Third Parties | ||||||||||||||||||||||||||
Annual Maturities | Par Value(1)(2) | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Other long-term debt: | ||||||||||||||||||||||||||
2014 | $ | 78,115 | ||||||||||||||||||||||||
2015 | 70,303 | |||||||||||||||||||||||||
2016 | 63,564 | |||||||||||||||||||||||||
2017 | 51,908 | |||||||||||||||||||||||||
2018 | 33,418 | |||||||||||||||||||||||||
Thereafter | 72,270 | |||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(3) | 1,399,456 | |||||||||||||||||||||||||
Total | 1,769,034 | |||||||||||||||||||||||||
Net discounts, premiums, hedge-related and other basis adjustments(4) | 30,005 | |||||||||||||||||||||||||
Total debt securities of consolidated trusts held by third parties and other long-term debt | $ | 1,799,039 | ||||||||||||||||||||||||
-1 | Represents par value of long-term debt securities and subordinated borrowings and UPB of debt securities of our consolidated trusts held by third parties. | |||||||||||||||||||||||||
-2 | For other debt denominated in a currency other than the U.S. dollar, the par value is based on the exchange rate at December 31, 2013. | |||||||||||||||||||||||||
-3 | Contractual maturities of debt securities of consolidated trusts held by third parties may not represent expected maturity as they are prepayable at any time without penalty. | |||||||||||||||||||||||||
-4 | Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk and interest-rate risk related to other foreign-currency denominated debt. |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Table - Derivative Assets and Liabilities at Fair Value | ' | |||||||||||||||||||||||
Table 9.1 — Derivative Assets and Liabilities at Fair Value | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Notional or | Derivatives at Fair Value | Notional or | Derivatives at Fair Value | |||||||||||||||||||||
Contractual | Contractual | |||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Total derivative portfolio | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments under the accounting guidance for derivatives and hedging | ||||||||||||||||||||||||
Interest-rate swaps: | ||||||||||||||||||||||||
Receive-fixed | $ | 281,727 | $ | 4,475 | $ | (2,438 | ) | $ | 275,099 | $ | 13,782 | $ | (97 | ) | ||||||||||
Pay-fixed | 242,597 | 5,540 | (10,879 | ) | 270,092 | 177 | (30,147 | ) | ||||||||||||||||
Basis (floating to floating) | 300 | 4 | — | 2,300 | 6 | — | ||||||||||||||||||
Total interest-rate swaps | 524,624 | 10,019 | (13,317 | ) | 547,491 | 13,965 | (30,244 | ) | ||||||||||||||||
Option-based: | ||||||||||||||||||||||||
Call swaptions | ||||||||||||||||||||||||
Purchased | 59,290 | 2,373 | — | 37,650 | 7,360 | — | ||||||||||||||||||
Written | 5,945 | — | (201 | ) | 6,195 | — | (749 | ) | ||||||||||||||||
Put Swaptions | ||||||||||||||||||||||||
Purchased | 33,410 | 698 | — | 43,200 | 288 | — | ||||||||||||||||||
Other option-based derivatives(1) | 23,365 | 1,041 | (3 | ) | 31,540 | 2,449 | (1 | ) | ||||||||||||||||
Total option-based | 122,010 | 4,112 | (204 | ) | 118,585 | 10,097 | (750 | ) | ||||||||||||||||
Futures | 50,270 | — | — | 41,123 | 37 | (2 | ) | |||||||||||||||||
Foreign-currency swaps | 528 | 39 | — | 1,167 | 73 | (6 | ) | |||||||||||||||||
Commitments | 18,731 | 61 | (69 | ) | 25,530 | 20 | (47 | ) | ||||||||||||||||
Credit derivatives | 5,386 | — | (6 | ) | 8,307 | 1 | (5 | ) | ||||||||||||||||
Swap guarantee derivatives | 3,477 | — | (31 | ) | 3,628 | — | (35 | ) | ||||||||||||||||
Total derivatives not designated as hedging instruments | 725,026 | 14,231 | (13,627 | ) | 745,831 | 24,193 | (31,089 | ) | ||||||||||||||||
Derivative interest receivable (payable) | 1,243 | (1,835 | ) | 1,409 | (2,239 | ) | ||||||||||||||||||
Netting adjustments(2) | (14,411 | ) | 15,282 | (24,945 | ) | 33,150 | ||||||||||||||||||
Total derivative portfolio, net | $ | 725,026 | $ | 1,063 | $ | (180 | ) | $ | 745,831 | $ | 657 | $ | (178 | ) | ||||||||||
-1 | Primarily includes purchased interest-rate caps and floors. | |||||||||||||||||||||||
-2 | Represents counterparty netting and cash collateral netting. Net cash collateral posted was $871 million and $8.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
Table - Gains and Losses on Derivatives | ' | |||||||||||||||||||||||
Table 9.2 — Gains and Losses on Derivatives | ||||||||||||||||||||||||
Derivatives not designated as hedging | Derivative Gains (Losses)(1) | |||||||||||||||||||||||
instruments under the accounting | Year Ended December 31, | |||||||||||||||||||||||
guidance for derivatives and hedging | 2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Interest-rate swaps: | ||||||||||||||||||||||||
Receive-fixed | ||||||||||||||||||||||||
Foreign-currency denominated | $ | (21 | ) | $ | (33 | ) | $ | (49 | ) | |||||||||||||||
U.S. dollar denominated | (10,400 | ) | 2,686 | 12,686 | ||||||||||||||||||||
Total receive-fixed swaps | (10,421 | ) | 2,653 | 12,637 | ||||||||||||||||||||
Pay-fixed | 19,021 | (2,865 | ) | (22,999 | ) | |||||||||||||||||||
Basis (floating to floating) | (2 | ) | 8 | (5 | ) | |||||||||||||||||||
Total interest-rate swaps | 8,598 | (204 | ) | (10,367 | ) | |||||||||||||||||||
Option based: | ||||||||||||||||||||||||
Call swaptions | ||||||||||||||||||||||||
Purchased | (2,547 | ) | 1,365 | 10,234 | ||||||||||||||||||||
Written | 546 | (38 | ) | (2,337 | ) | |||||||||||||||||||
Put swaptions | ||||||||||||||||||||||||
Purchased | (8 | ) | (273 | ) | (1,614 | ) | ||||||||||||||||||
Written | — | 6 | 14 | |||||||||||||||||||||
Other option-based derivatives(2) | (413 | ) | 190 | 879 | ||||||||||||||||||||
Total option-based | (2,422 | ) | 1,250 | 7,176 | ||||||||||||||||||||
Futures | 21 | 12 | (150 | ) | ||||||||||||||||||||
Foreign-currency swaps | 30 | (8 | ) | (41 | ) | |||||||||||||||||||
Commitments | (131 | ) | 298 | (1,340 | ) | |||||||||||||||||||
Credit derivatives | (3 | ) | — | — | ||||||||||||||||||||
Swap guarantee derivatives | 9 | 7 | 3 | |||||||||||||||||||||
Other(3) | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||||||
Subtotal | 6,099 | 1,354 | (4,720 | ) | ||||||||||||||||||||
Accrual of periodic settlements:(4) | ||||||||||||||||||||||||
Receive-fixed interest-rate swaps | 3,764 | 3,511 | 4,173 | |||||||||||||||||||||
Pay-fixed interest-rate swaps | (7,233 | ) | (7,318 | ) | (9,241 | ) | ||||||||||||||||||
Foreign-currency swaps | — | 4 | 22 | |||||||||||||||||||||
Other | 2 | 1 | 14 | |||||||||||||||||||||
Total accrual of periodic settlements | (3,467 | ) | (3,802 | ) | (5,032 | ) | ||||||||||||||||||
Total | $ | 2,632 | $ | (2,448 | ) | $ | (9,752 | ) | ||||||||||||||||
-1 | Gains (losses) are reported as derivative gains (losses) on our consolidated statements of comprehensive income. | |||||||||||||||||||||||
-2 | Primarily includes purchased interest-rate caps and floors. | |||||||||||||||||||||||
-3 | Includes fees and commissions paid on cleared and exchange-traded derivatives and, in 2011, a $3 million benefit related to the bankruptcy of Lehman Brothers Holdings Inc. | |||||||||||||||||||||||
-4 | For derivatives not in qualifying hedge accounting relationships, the accrual of periodic cash settlements is recorded in derivative gains (losses) on our consolidated statements of comprehensive income. |
Collateral_and_Offsetting_of_A1
Collateral and Offsetting of Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Offsetting [Abstract] | ' | |||||||||||||||||||
Table - Offsetting of Financial Assets and Liabilities | ' | |||||||||||||||||||
Table 10.1 — Offsetting of Financial Assets and Liabilities | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Gross | Amount Offset | Net Amount | Gross Amount | Net | ||||||||||||||||
Amount | in the Consolidated | Presented in | Not Offset in | Amount | ||||||||||||||||
Recognized(1) | Balance Sheets | the Consolidated | the Consolidated | |||||||||||||||||
Balance Sheets(2) | Balance Sheets | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | 13,886 | $ | (13,266 | ) | $ | 620 | $ | (432 | ) | $ | 188 | ||||||||
Cleared and exchange-traded derivatives | 1,527 | (1,145 | ) | 382 | — | 382 | ||||||||||||||
Other(3) | 61 | — | 61 | — | 61 | |||||||||||||||
Total derivatives | 15,474 | (14,411 | ) | 1,063 | (432 | ) | 631 | |||||||||||||
Securities purchased under agreements to resell | 62,383 | — | 62,383 | (62,383 | ) | — | ||||||||||||||
Total | $ | 77,857 | $ | (14,411 | ) | $ | 63,446 | $ | (62,815 | ) | $ | 631 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | (14,616 | ) | $ | 14,545 | $ | (71 | ) | $ | — | $ | (71 | ) | |||||||
Cleared and exchange-traded derivatives | (737 | ) | 737 | — | — | — | ||||||||||||||
Other(3) | (109 | ) | — | (109 | ) | — | (109 | ) | ||||||||||||
Total | $ | (15,462 | ) | $ | 15,282 | $ | (180 | ) | $ | — | $ | (180 | ) | |||||||
December 31, 2012 | ||||||||||||||||||||
Gross | Amount Offset in | Net Amount | Gross Amount | Net | ||||||||||||||||
Amount | the Consolidated | Presented in the | Not Offset in the | Amount | ||||||||||||||||
Recognized(1) | Balance Sheets | Consolidated | Consolidated | |||||||||||||||||
Balance Sheets(2) | Balance Sheets | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | 25,515 | $ | (24,945 | ) | $ | 570 | $ | (501 | ) | $ | 69 | ||||||||
Cleared and exchange-traded derivatives | 66 | — | 66 | — | 66 | |||||||||||||||
Other(3) | 21 | — | 21 | — | 21 | |||||||||||||||
Total derivatives | 25,602 | (24,945 | ) | 657 | (501 | ) | 156 | |||||||||||||
Securities purchased under agreements to resell | 37,563 | — | 37,563 | (37,563 | ) | — | ||||||||||||||
Total | $ | 63,165 | $ | (24,945 | ) | $ | 38,220 | $ | (38,064 | ) | $ | 156 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | $ | (33,233 | ) | $ | 33,150 | $ | (83 | ) | $ | — | $ | (83 | ) | |||||||
Cleared and exchange-traded derivatives | (8 | ) | — | (8 | ) | — | (8 | ) | ||||||||||||
Other(3) | (87 | ) | — | (87 | ) | — | (87 | ) | ||||||||||||
Total | $ | (33,328 | ) | $ | 33,150 | $ | (178 | ) | $ | — | $ | (178 | ) | |||||||
-1 | For derivatives, includes interest receivable or payable and trade/settle receivable or payable. | |||||||||||||||||||
-2 | For derivatives, includes cash collateral posted or held in excess of exposure. | |||||||||||||||||||
-3 | Includes commitments, swap guarantee derivatives, certain written options and credit derivatives. | |||||||||||||||||||
Table - Collateral in the Form of Securities Pledged | ' | |||||||||||||||||||
Table 10.2 — Collateral in the Form of Securities Pledged | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Securities pledged with the ability for the secured party to repledge: | ||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(1) | $ | 10,654 | $ | 10,390 | ||||||||||||||||
Available-for-sale securities | 70 | 132 | ||||||||||||||||||
Trading securities | 365 | — | ||||||||||||||||||
Securities pledged without the ability for the secured party to repledge: | ||||||||||||||||||||
Debt securities of consolidated trusts held by third parties(1) | — | 148 | ||||||||||||||||||
Total securities pledged | $ | 11,089 | $ | 10,670 | ||||||||||||||||
-1 | Represents PCs held by us in our Investments segment mortgage investments portfolio and pledged as collateral which are recorded as a reduction to debt securities of consolidated trusts held by third parties on our consolidated balance sheets. |
Stockholders_Equity_Deficit_Ta
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||
Table - Changes in AOCI by Component, Net of Tax | ' | |||||||||||||||||||||
Table 11.1 — Changes in AOCI by Component, Net of Tax | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
AOCI Related | AOCI Related | AOCI Related | Total | |||||||||||||||||||
to Available- | to Cash Flow | to Defined | ||||||||||||||||||||
For-Sale | Hedge | Benefit Plans | ||||||||||||||||||||
Securities(1) | Relationships(2) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Beginning balance | $ | (1,444 | ) | $ | (1,316 | ) | $ | (178 | ) | $ | (2,938 | ) | ||||||||||
Other comprehensive income before reclassifications(3) | 2,659 | — | 169 | 2,828 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (253 | ) | 316 | 41 | 104 | |||||||||||||||||
Changes in AOCI by component | 2,406 | 316 | 210 | 2,932 | ||||||||||||||||||
Ending balance | $ | 962 | $ | (1,000 | ) | $ | 32 | $ | (6 | ) | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
AOCI Related | AOCI Related | AOCI Related | Total | |||||||||||||||||||
to Available- | to Cash Flow | to Defined | ||||||||||||||||||||
For-Sale | Hedge | Benefit Plans | ||||||||||||||||||||
Securities(1) | Relationships(2) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Beginning balance | $ | (6,213 | ) | $ | (1,730 | ) | $ | (52 | ) | $ | (7,995 | ) | ||||||||||
Other comprehensive income before reclassifications(3) | 3,458 | — | (131 | ) | 3,327 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income(4) | 1,311 | 414 | 5 | 1,730 | ||||||||||||||||||
Changes in AOCI by component | 4,769 | 414 | (126 | ) | 5,057 | |||||||||||||||||
Ending balance | $ | (1,444 | ) | $ | (1,316 | ) | $ | (178 | ) | $ | (2,938 | ) | ||||||||||
-1 | The amounts reclassified from AOCI represent the gain or loss recognized in earnings due to a sale of an available-for-sale security or the recognition of a net impairment recognized in earnings. See “NOTE 7: INVESTMENTS IN SECURITIES” for more information. | |||||||||||||||||||||
-2 | The amounts reclassified from AOCI represent the AOCI amount that was recognized in earnings as the originally hedged forecasted transactions affected earnings, unless it was deemed probable that the forecasted transaction would not occur. If it is probable that the forecasted transaction will not occur, then the deferred gain or loss associated with the hedge related to the forecasted transaction would be reclassified into earnings immediately. See “NOTE 9: DERIVATIVES” for more information about our derivatives. | |||||||||||||||||||||
-3 | For the years ended December 31, 2013 and 2012, net of tax expense of $1.4 billion and $1.9 billion, respectively, for AOCI related to available-for-sale securities. | |||||||||||||||||||||
-4 | For the year ended December 31, 2012, net of tax benefit of $706 million for AOCI related to available-for-sale securities and net of tax benefit of $198 million for AOCI related to cash flow hedge relationships. | |||||||||||||||||||||
Table - Reclassifications from AOCI to Net Income | ' | |||||||||||||||||||||
Table 11.2 — Reclassifications from AOCI to Net Income | ||||||||||||||||||||||
Details about Accumulated Other | Three Months Ended December 31, 2013 | Year Ended December 31, 2013 | Affected Line Item in the Consolidated | |||||||||||||||||||
Comprehensive Income Components | Statements of Comprehensive Income | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
AOCI related to available-for-sale securities | ||||||||||||||||||||||
$ | 717 | $ | 1,899 | Other gains (losses) on investment securities recognized in earnings | ||||||||||||||||||
(1,297 | ) | (1,510 | ) | Net impairment of available-for-sale securities recognized in earnings | ||||||||||||||||||
(580 | ) | 389 | Total before tax | |||||||||||||||||||
203 | (136 | ) | Tax (expense) or benefit | |||||||||||||||||||
(377 | ) | 253 | Net of tax | |||||||||||||||||||
AOCI related to cash flow hedge relationships | ||||||||||||||||||||||
(1 | ) | (5 | ) | Interest expense — Other debt | ||||||||||||||||||
(94 | ) | (455 | ) | Expense related to derivatives | ||||||||||||||||||
(95 | ) | (460 | ) | Total before tax | ||||||||||||||||||
29 | 144 | Tax (expense) or benefit | ||||||||||||||||||||
(66 | ) | (316 | ) | Net of tax | ||||||||||||||||||
AOCI related to defined benefit plans | ||||||||||||||||||||||
8 | 2 | Salaries and employee benefits | ||||||||||||||||||||
(43 | ) | (43 | ) | Tax (expense) or benefit | ||||||||||||||||||
(35 | ) | (41 | ) | Net of tax | ||||||||||||||||||
Total reclassifications in the period | $ | (478 | ) | $ | (104 | ) | Net of tax | |||||||||||||||
Table - Senior Preferred Stock | ' | |||||||||||||||||||||
Table 11.3 — Senior Preferred Stock | ||||||||||||||||||||||
Draw Date | Shares | Shares | Total | Initial | Total | |||||||||||||||||
Authorized | Outstanding | Par Value | Liquidation | Liquidation | ||||||||||||||||||
Preference | Preference(1) | |||||||||||||||||||||
Price per Share | ||||||||||||||||||||||
Senior preferred stock: | (in millions, except initial liquidation preference price per share) | |||||||||||||||||||||
10 | % | 8-Sep-08 | (2) | 1 | 1 | $ | 1 | $ | 1,000 | $ | 1,000 | |||||||||||
10 | % | (3) | 24-Nov-08 | — | — | — | N/A | 13,800 | ||||||||||||||
10 | % | (3) | 31-Mar-09 | — | — | — | N/A | 30,800 | ||||||||||||||
10 | % | (3) | 30-Jun-09 | — | — | — | N/A | 6,100 | ||||||||||||||
10 | % | (3) | 30-Jun-10 | — | — | — | N/A | 10,600 | ||||||||||||||
10 | % | (3) | 30-Sep-10 | — | — | — | N/A | 1,800 | ||||||||||||||
10 | % | (3) | 30-Dec-10 | — | — | — | N/A | 100 | ||||||||||||||
10 | % | (3) | 31-Mar-11 | — | — | — | N/A | 500 | ||||||||||||||
10 | % | (3) | 30-Sep-11 | — | — | — | N/A | 1,479 | ||||||||||||||
10 | % | (3) | 30-Dec-11 | — | — | — | N/A | 5,992 | ||||||||||||||
10 | % | (3) | 30-Mar-12 | — | — | — | N/A | 146 | ||||||||||||||
10 | % | (3) | 29-Jun-12 | — | — | — | N/A | 19 | ||||||||||||||
Total, senior preferred stock | 1 | 1 | $ | 1 | $ | 72,336 | ||||||||||||||||
-1 | Amounts stated at redemption value. | |||||||||||||||||||||
-2 | We did not receive any cash proceeds from Treasury as a result of issuing these shares. | |||||||||||||||||||||
-3 | Represents an increase in the liquidation preference of our senior preferred stock due to the receipt of funds from Treasury. | |||||||||||||||||||||
Table - Preferred Stock | ' | |||||||||||||||||||||
Table 11.4 — Preferred Stock | ||||||||||||||||||||||
Issue Date | Shares | Shares | Total | Redemption | Total | Redeemable | OTCQB | |||||||||||||||
Authorized | Outstanding | Par Value | Price per | Outstanding | On or After(2) | Symbol(3) | ||||||||||||||||
Share | Balance(1) | |||||||||||||||||||||
Preferred stock: | (in millions, except redemption price per share) | |||||||||||||||||||||
1996 Variable-rate(4) | 26-Apr-96 | 5 | 5 | $ | 5 | $ | 50 | $ | 250 | 30-Jun-01 | FMCCI | |||||||||||
5.81% | 27-Oct-97 | 3 | 3 | 3 | 50 | 150 | 27-Oct-98 | -5 | ||||||||||||||
5% | 23-Mar-98 | 8 | 8 | 8 | 50 | 400 | 31-Mar-03 | FMCKK | ||||||||||||||
1998 Variable-rate(6) | September 23 and 29, 1998 | 4.4 | 4.4 | 4.4 | 50 | 220 | 30-Sep-03 | FMCCG | ||||||||||||||
5.10% | 23-Sep-98 | 8 | 8 | 8 | 50 | 400 | 30-Sep-03 | FMCCH | ||||||||||||||
5.30% | 28-Oct-98 | 4 | 4 | 4 | 50 | 200 | 30-Oct-00 | -5 | ||||||||||||||
5.10% | 19-Mar-99 | 3 | 3 | 3 | 50 | 150 | 31-Mar-04 | -5 | ||||||||||||||
5.79% | 21-Jul-99 | 5 | 5 | 5 | 50 | 250 | 30-Jun-09 | FMCCK | ||||||||||||||
1999 Variable-rate(7) | 5-Nov-99 | 5.75 | 5.75 | 5.75 | 50 | 287 | 31-Dec-04 | FMCCL | ||||||||||||||
2001 Variable-rate(8) | 26-Jan-01 | 6.5 | 6.5 | 6.5 | 50 | 325 | 31-Mar-03 | FMCCM | ||||||||||||||
2001 Variable-rate(9) | 23-Mar-01 | 4.6 | 4.6 | 4.6 | 50 | 230 | 31-Mar-03 | FMCCN | ||||||||||||||
5.81% | 23-Mar-01 | 3.45 | 3.45 | 3.45 | 50 | 173 | 31-Mar-11 | FMCCO | ||||||||||||||
6% | 30-May-01 | 3.45 | 3.45 | 3.45 | 50 | 173 | 30-Jun-06 | FMCCP | ||||||||||||||
2001 Variable-rate(10) | 30-May-01 | 4.02 | 4.02 | 4.02 | 50 | 201 | 30-Jun-03 | FMCCJ | ||||||||||||||
5.70% | 30-Oct-01 | 6 | 6 | 6 | 50 | 300 | 31-Dec-06 | FMCKP | ||||||||||||||
5.81% | 29-Jan-02 | 6 | 6 | 6 | 50 | 300 | 31-Mar-07 | -5 | ||||||||||||||
2006 Variable-rate(11) | 17-Jul-06 | 15 | 15 | 15 | 50 | 750 | 30-Jun-11 | FMCCS | ||||||||||||||
6.42% | 17-Jul-06 | 5 | 5 | 5 | 50 | 250 | 30-Jun-11 | FMCCT | ||||||||||||||
5.90% | 16-Oct-06 | 20 | 20 | 20 | 25 | 500 | 30-Sep-11 | FMCKO | ||||||||||||||
5.57% | 16-Jan-07 | 44 | 44 | 44 | 25 | 1,100 | 31-Dec-11 | FMCKM | ||||||||||||||
5.66% | 16-Apr-07 | 20 | 20 | 20 | 25 | 500 | 31-Mar-12 | FMCKN | ||||||||||||||
6.02% | 24-Jul-07 | 20 | 20 | 20 | 25 | 500 | 30-Jun-12 | FMCKL | ||||||||||||||
6.55% | 28-Sep-07 | 20 | 20 | 20 | 25 | 500 | 30-Sep-17 | FMCKI | ||||||||||||||
2007 Fixed-to-floating rate(12) | 4-Dec-07 | 240 | 240 | 240 | 25 | 6,000 | 31-Dec-12 | FMCKJ | ||||||||||||||
Total, preferred stock | 464.17 | 464.17 | $ | 464.17 | $ | 14,109 | ||||||||||||||||
-1 | Amounts stated at redemption value. | |||||||||||||||||||||
-2 | In accordance with the Purchase Agreement, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury, redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant). | |||||||||||||||||||||
-3 | Preferred stock trades exclusively through the OTCQB Marketplace unless otherwise noted. | |||||||||||||||||||||
-4 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 9.00%. | |||||||||||||||||||||
-5 | Issued through private placement. | |||||||||||||||||||||
-6 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 7.50%. | |||||||||||||||||||||
-7 | Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. Optional redemption on December 31, 2004 and on December 31 every five years thereafter. | |||||||||||||||||||||
-8 | Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every two years thereafter. | |||||||||||||||||||||
-9 | Dividend rate resets on April 1 every year based on 12-month LIBOR minus 0.20%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every year thereafter. | |||||||||||||||||||||
-10 | Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. Optional redemption on June 30, 2003 and on June 30 every two years thereafter. | |||||||||||||||||||||
-11 | Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%. | |||||||||||||||||||||
-12 | Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of three-month LIBOR plus 4.16% per annum; or (b) 7.875% per annum. Optional redemption on December 31, 2012, and on December 31 every five years thereafter. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Table - Federal Income Tax Benefit | ' | ||||||||||||||||||||
Table 12.1 — Federal Income Tax Benefit | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Current income tax (expense) benefit | $ | (117 | ) | $ | 1,540 | $ | 283 | ||||||||||||||
Deferred income tax benefit (expense) | 23,422 | (3 | ) | 117 | |||||||||||||||||
Total income tax benefit | $ | 23,305 | $ | 1,537 | $ | 400 | |||||||||||||||
Table - Reconciliation of Statutory to Effective Tax Rate | ' | ||||||||||||||||||||
Table 12.2 — Reconciliation of Statutory to Effective Tax Rate | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Statutory corporate tax rate | $ | (8,877 | ) | 35 | % | $ | (3,306 | ) | 35 | % | $ | 1,983 | 35 | % | |||||||
Tax-exempt interest | 101 | (0.4 | ) | 133 | (1.4 | ) | 179 | 3.2 | |||||||||||||
Tax credits | 495 | (2.0 | ) | 536 | (5.7 | ) | 566 | 10 | |||||||||||||
Valuation allowance: | |||||||||||||||||||||
Current year activity | 5,156 | (20.3 | ) | 2,637 | (27.9 | ) | (2,728 | ) | (48.2 | ) | |||||||||||
Release of valuation allowance | 26,369 | (104.0 | ) | — | — | — | — | ||||||||||||||
Unrecognized tax benefits | — | — | 1,205 | (12.8 | ) | (21 | ) | (0.4 | ) | ||||||||||||
Other | 138 | (0.5 | ) | 45 | (0.5 | ) | 403 | 7.2 | |||||||||||||
Total valuation allowance | 31,663 | (124.8 | ) | 3,887 | (41.2 | ) | (2,346 | ) | (41.4 | ) | |||||||||||
Other | (77 | ) | 0.3 | 287 | (3.0 | ) | 18 | 0.3 | |||||||||||||
Effective tax rate | $ | 23,305 | (91.9 | )% | $ | 1,537 | (16.3 | )% | $ | 400 | 7.1 | % | |||||||||
Table - Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||
Table 12.3 — Deferred Tax Assets and Liabilities | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Deferred fees | $ | 5,035 | $ | 4,330 | |||||||||||||||||
Basis differences related to derivative instruments | 6,946 | 10,294 | |||||||||||||||||||
Credit related items and allowance for loan losses | 3,648 | 6,785 | |||||||||||||||||||
Unrealized (gains) losses related to available-for-sale securities | — | 778 | |||||||||||||||||||
LIHTC and AMT credit carryforward | 3,997 | 3,408 | |||||||||||||||||||
Net operating loss carryforward | 3,978 | 11,479 | |||||||||||||||||||
Other items, net | 40 | 146 | |||||||||||||||||||
Total deferred tax assets | 23,644 | 37,220 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Basis differences related to assets held for investment(1) | (375 | ) | (4,609 | ) | |||||||||||||||||
Unrealized (gains) losses related to available-for-sale securities | (518 | ) | — | ||||||||||||||||||
Basis differences related to debt | (35 | ) | (149 | ) | |||||||||||||||||
Total deferred tax liabilities | (928 | ) | (4,758 | ) | |||||||||||||||||
Valuation allowance | — | (31,684 | ) | ||||||||||||||||||
Deferred tax assets (liabilities), net | $ | 22,716 | $ | 778 | |||||||||||||||||
-1 | The deferred tax liability balance for basis differences related to assets held for investment includes a basis adjustment on seriously delinquent loans. This deferred tax liability offsets a portion of the deferred tax asset for credit related items and the allowance for loan losses. | ||||||||||||||||||||
Table - Unrecognized Tax Benefits | ' | ||||||||||||||||||||
Table 12.4 — Unrecognized Tax Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Balance at January 1 | $ | — | $ | 1,355 | $ | 1,220 | |||||||||||||||
Changes based on tax positions in prior years | — | (41 | ) | 130 | |||||||||||||||||
Changes based on tax positions in current years | — | (28 | ) | 6 | |||||||||||||||||
Decreases in unrecognized tax benefits due to settlements with taxing authorities | — | (1,286 | ) | (1 | ) | ||||||||||||||||
Balance at December 31 | $ | — | $ | — | $ | 1,355 | |||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Table - Summary of Segment Earnings and Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||||||||
Table 13.1 — Summary of Segment Earnings and Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Segment Earnings (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,796 | $ | (164 | ) | $ | (10,000 | ) | ||||||||||||||||||||||||||||
Investments | 16,602 | 8,212 | 3,366 | |||||||||||||||||||||||||||||||||
Multifamily | 2,378 | 2,146 | 1,319 | |||||||||||||||||||||||||||||||||
All Other(1) | 23,892 | 788 | 49 | |||||||||||||||||||||||||||||||||
Total Segment Earnings (loss), net of taxes | 48,668 | 10,982 | (5,266 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 48,668 | $ | 10,982 | $ | (5,266 | ) | |||||||||||||||||||||||||||||
Comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,845 | $ | (227 | ) | $ | (9,970 | ) | ||||||||||||||||||||||||||||
Investments | 20,287 | 11,397 | 6,473 | |||||||||||||||||||||||||||||||||
Multifamily | 1,455 | 4,081 | 2,218 | |||||||||||||||||||||||||||||||||
All Other(1) | 24,013 | 788 | 49 | |||||||||||||||||||||||||||||||||
Comprehensive income (loss) of segments | 51,600 | 16,039 | (1,230 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 51,600 | $ | 16,039 | $ | (1,230 | ) | |||||||||||||||||||||||||||||
-1 | For the year ended December 31, 2013, includes a benefit for federal income taxes that resulted from the release of our valuation allowance against our net deferred tax assets. | |||||||||||||||||||||||||||||||||||
Table - Segment Earnings and Reconciliation to GAAP Results | ' | |||||||||||||||||||||||||||||||||||
Table 13.2 — Segment Earnings and Reconciliation to GAAP Results | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 320 | $ | 3,525 | $ | 1,186 | $ | — | $ | 5,031 | $ | 10,400 | $ | 1,037 | $ | 11,437 | $ | 16,468 | ||||||||||||||||||
Benefit (provision) for credit losses | 1,409 | — | 218 | — | 1,627 | 838 | — | 838 | 2,465 | |||||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 4,930 | — | 206 | — | 5,136 | (4,171 | ) | (694 | ) | (4,865 | ) | 271 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (974 | ) | (15 | ) | — | (989 | ) | (521 | ) | — | (521 | ) | (1,510 | ) | |||||||||||||||||||||
Derivative gains (losses) | (3 | ) | 6,806 | 18 | — | 6,821 | (4,189 | ) | — | (4,189 | ) | 2,632 | ||||||||||||||||||||||||
Gains (losses) on trading securities | — | (1,588 | ) | (10 | ) | — | (1,598 | ) | — | — | — | (1,598 | ) | |||||||||||||||||||||||
Gains (losses) on mortgage loans | — | (817 | ) | 481 | — | (336 | ) | — | — | — | (336 | ) | ||||||||||||||||||||||||
Other non-interest income | 1,165 | 9,612 | 640 | — | 11,417 | (2,357 | ) | — | (2,357 | ) | 9,060 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (1,025 | ) | (523 | ) | (257 | ) | — | (1,805 | ) | — | — | — | (1,805 | ) | ||||||||||||||||||||||
REO operations income (expense) | 124 | — | 16 | — | 140 | — | — | — | 140 | |||||||||||||||||||||||||||
Other non-interest expense | (712 | ) | 349 | (24 | ) | (37 | ) | (424 | ) | — | — | — | (424 | ) | ||||||||||||||||||||||
Segment adjustments(2) | (694 | ) | 1,037 | — | — | 343 | — | (343 | ) | (343 | ) | — | ||||||||||||||||||||||||
Income tax (expense) benefit | 282 | (825 | ) | (81 | ) | 23,929 | 23,305 | — | — | — | 23,305 | |||||||||||||||||||||||||
Net income | 5,796 | 16,602 | 2,378 | 23,892 | 48,668 | — | — | — | 48,668 | |||||||||||||||||||||||||||
Total other comprehensive income (loss), net of taxes | 49 | 3,685 | (923 | ) | 121 | 2,932 | — | — | — | 2,932 | ||||||||||||||||||||||||||
Comprehensive income | $ | 5,845 | $ | 20,287 | $ | 1,455 | $ | 24,013 | $ | 51,600 | $ | — | $ | — | $ | — | $ | 51,600 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | (147 | ) | $ | 5,726 | $ | 1,291 | $ | — | $ | 6,870 | $ | 9,942 | $ | 799 | $ | 10,741 | $ | 17,611 | |||||||||||||||||
Benefit (provision) for credit losses | (3,168 | ) | — | 123 | — | (3,045 | ) | 1,155 | — | 1,155 | (1,890 | ) | ||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 4,389 | — | 151 | — | 4,540 | (3,507 | ) | (832 | ) | (4,339 | ) | 201 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (1,831 | ) | (123 | ) | — | (1,954 | ) | (214 | ) | — | (214 | ) | (2,168 | ) | |||||||||||||||||||||
Derivative gains (losses) | — | 1,970 | 7 | — | 1,977 | (4,425 | ) | — | (4,425 | ) | (2,448 | ) | ||||||||||||||||||||||||
Gains (losses) on trading securities | — | (1,755 | ) | 81 | — | (1,674 | ) | — | — | — | (1,674 | ) | ||||||||||||||||||||||||
Gains (losses) on mortgage loans | — | 303 | 707 | — | 1,010 | — | — | — | 1,010 | |||||||||||||||||||||||||||
Other non-interest income | 931 | 2,741 | 275 | — | 3,947 | (2,951 | ) | — | (2,951 | ) | 996 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (890 | ) | (430 | ) | (241 | ) | — | (1,561 | ) | — | — | — | (1,561 | ) | ||||||||||||||||||||||
REO operations income (expense) | (62 | ) | — | 3 | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||||||||
Other non-interest expense | (393 | ) | (1 | ) | (129 | ) | (50 | ) | (573 | ) | — | — | — | (573 | ) | |||||||||||||||||||||
Segment adjustments(2) | (832 | ) | 799 | — | — | (33 | ) | — | 33 | 33 | — | |||||||||||||||||||||||||
Income tax benefit | 8 | 690 | 1 | 838 | 1,537 | — | — | — | 1,537 | |||||||||||||||||||||||||||
Net income (loss) | (164 | ) | 8,212 | 2,146 | 788 | 10,982 | — | — | — | 10,982 | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of taxes | (63 | ) | 3,185 | 1,935 | — | 5,057 | — | — | — | 5,057 | ||||||||||||||||||||||||||
Comprehensive income (loss) | $ | (227 | ) | $ | 11,397 | $ | 4,081 | $ | 788 | $ | 16,039 | $ | — | $ | — | $ | — | $ | 16,039 | |||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Total Segment | Reconciliation to Consolidated Statements of | Total per | ||||||||||||||||||||||||||||||||||
Earnings (Loss), | Comprehensive Income | Consolidated | ||||||||||||||||||||||||||||||||||
Net of Tax | Statements of | |||||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||||||
Single-family | Investments | Multifamily | All | Reclassifications(1) | Segment | Total | Income | |||||||||||||||||||||||||||||
Guarantee | Other | Adjustments(2) | Reconciling | |||||||||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | (23 | ) | $ | 7,168 | $ | 1,200 | $ | — | $ | 8,345 | $ | 9,391 | $ | 661 | $ | 10,052 | $ | 18,397 | |||||||||||||||||
Benefit (provision) for credit losses | (12,294 | ) | — | 196 | — | (12,098 | ) | 1,396 | — | 1,396 | (10,702 | ) | ||||||||||||||||||||||||
Non-interest income (loss): | ||||||||||||||||||||||||||||||||||||
Management and guarantee income(3) | 3,647 | — | 127 | — | 3,774 | (2,905 | ) | (699 | ) | (3,604 | ) | 170 | ||||||||||||||||||||||||
Net impairment of available-for-sale securities recognized in earnings | — | (1,833 | ) | (353 | ) | — | (2,186 | ) | (115 | ) | — | (115 | ) | (2,301 | ) | |||||||||||||||||||||
Derivative gains (losses) | — | (3,597 | ) | 3 | — | (3,594 | ) | (6,158 | ) | — | (6,158 | ) | (9,752 | ) | ||||||||||||||||||||||
Gains (losses) on trading securities | — | (993 | ) | 39 | — | (954 | ) | — | — | — | (954 | ) | ||||||||||||||||||||||||
Gains (losses) on mortgage loans | — | 529 | 300 | — | 829 | — | — | — | 829 | |||||||||||||||||||||||||||
Other non-interest income | 1,216 | 1,437 | 86 | — | 2,739 | (1,609 | ) | — | (1,609 | ) | 1,130 | |||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (888 | ) | (398 | ) | (220 | ) | — | (1,506 | ) | — | — | — | (1,506 | ) | ||||||||||||||||||||||
REO operations income (expense) | (596 | ) | — | 11 | — | (585 | ) | — | — | — | (585 | ) | ||||||||||||||||||||||||
Other non-interest expense | (321 | ) | (2 | ) | (69 | ) | — | (392 | ) | — | — | — | (392 | ) | ||||||||||||||||||||||
Segment adjustments(2) | (699 | ) | 661 | — | — | (38 | ) | — | 38 | 38 | — | |||||||||||||||||||||||||
Income tax (expense) benefit | (42 | ) | 394 | (1 | ) | 49 | 400 | — | — | — | 400 | |||||||||||||||||||||||||
Net income (loss) | (10,000 | ) | 3,366 | 1,319 | 49 | (5,266 | ) | — | — | — | (5,266 | ) | ||||||||||||||||||||||||
Total other comprehensive income, net of taxes | 30 | 3,107 | 899 | — | 4,036 | — | — | — | 4,036 | |||||||||||||||||||||||||||
Comprehensive income (loss) | $ | (9,970 | ) | $ | 6,473 | $ | 2,218 | $ | 49 | $ | (1,230 | ) | $ | — | $ | — | $ | — | $ | (1,230 | ) | |||||||||||||||
-1 | See “Segment Earnings — Investment Activity-Related Reclassifications” and “— Credit Guarantee Activity-Related Reclassifications” for information regarding these reclassifications. | |||||||||||||||||||||||||||||||||||
-2 | See “Segment Earnings — Segment Adjustments” for information regarding these adjustments. | |||||||||||||||||||||||||||||||||||
-3 | Management and guarantee income total per consolidated statements of comprehensive income is included in other income on our GAAP consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||
Table - Comprehensive Income (Loss) of Segments | ' | |||||||||||||||||||||||||||||||||||
Table 13.3 — Comprehensive Income (Loss) of Segments | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | 5,796 | $ | — | $ | — | $ | 49 | $ | 49 | $ | 5,845 | ||||||||||||||||||||||||
Investments | 16,602 | 3,338 | 316 | 31 | 3,685 | 20,287 | ||||||||||||||||||||||||||||||
Multifamily | 2,378 | (932 | ) | — | 9 | (923 | ) | 1,455 | ||||||||||||||||||||||||||||
All Other | 23,892 | — | — | 121 | 121 | 24,013 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | 48,668 | $ | 2,406 | $ | 316 | $ | 210 | $ | 2,932 | $ | 51,600 | ||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | (164 | ) | $ | — | $ | — | $ | (63 | ) | $ | (63 | ) | $ | (227 | ) | ||||||||||||||||||||
Investments | 8,212 | 2,821 | 414 | (50 | ) | 3,185 | 11,397 | |||||||||||||||||||||||||||||
Multifamily | 2,146 | 1,948 | — | (13 | ) | 1,935 | 4,081 | |||||||||||||||||||||||||||||
All Other | 788 | — | — | — | — | 788 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | 10,982 | $ | 4,769 | $ | 414 | $ | (126 | ) | $ | 5,057 | $ | 16,039 | |||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||||||||||||||||||||||||||
Net Income | Changes in | Changes in | Changes in Defined | Total Other | Comprehensive Income | |||||||||||||||||||||||||||||||
(Loss) | Unrealized Gains | Unrealized Gains | Benefit Plans | Comprehensive | (Loss) | |||||||||||||||||||||||||||||||
(Losses) Related to | (Losses) Related to | Income (Loss), | ||||||||||||||||||||||||||||||||||
Available-For-Sale | Cash Flow Hedge | Net of Taxes | ||||||||||||||||||||||||||||||||||
Securities | Relationships | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) of segments: | ||||||||||||||||||||||||||||||||||||
Single-family Guarantee | $ | (10,000 | ) | $ | — | $ | — | $ | 30 | $ | 30 | $ | (9,970 | ) | ||||||||||||||||||||||
Investments | 3,366 | 2,573 | 508 | 26 | 3,107 | 6,473 | ||||||||||||||||||||||||||||||
Multifamily | 1,319 | 892 | 1 | 6 | 899 | 2,218 | ||||||||||||||||||||||||||||||
All Other | 49 | — | — | — | — | 49 | ||||||||||||||||||||||||||||||
Total per consolidated statements of comprehensive income | $ | (5,266 | ) | $ | 3,465 | $ | 509 | $ | 62 | $ | 4,036 | $ | (1,230 | ) | ||||||||||||||||||||||
Financial_Guarantees_Tables
Financial Guarantees (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Guarantees [Abstract] | ' | |||||||||||||||||||
Table - Financial Guarantees | ' | |||||||||||||||||||
Table 14.1 — Financial Guarantees | ||||||||||||||||||||
December 31, 2013 | 31-Dec-12 | |||||||||||||||||||
Maximum | Recognized | Maximum | Maximum | Recognized | Maximum | |||||||||||||||
Exposure(1) | Liability(2) | Remaining | Exposure(1) | Liability(2) | Remaining | |||||||||||||||
Term | Term | |||||||||||||||||||
(dollars in millions, terms in years) | ||||||||||||||||||||
Non-consolidated Freddie Mac securities(3) | $ | 71,809 | $ | 731 | 40 | $ | 50,715 | $ | 430 | 41 | ||||||||||
Other guarantee commitments | 29,160 | 791 | 36 | 23,455 | 575 | 37 | ||||||||||||||
Derivative instruments(4) | 9,856 | 239 | 32 | 10,306 | 789 | 33 | ||||||||||||||
Servicing-related premium guarantees | 281 | — | 5 | 210 | — | 5 | ||||||||||||||
-1 | Maximum exposure represents the contractual amounts that could be lost under the non-consolidated guarantees if counterparties or borrowers defaulted, without consideration of possible recoveries under credit enhancement arrangements, such as recourse provisions, third-party insurance contracts, or from collateral held or pledged. The maximum exposure disclosed above is not representative of the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation. The maximum exposure for our liquidity guarantees is not mutually exclusive of our default guarantees on the same securities; therefore, these amounts are included within the maximum exposure of non-consolidated Freddie Mac securities and other guarantee commitments. | |||||||||||||||||||
-2 | For non-consolidated Freddie Mac securities and other guarantee commitments, this amount represents the guarantee obligation on our consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $111 million and $183 million as of December 31, 2013 and 2012, respectively, and is included within other liabilities on our consolidated balance sheets. | |||||||||||||||||||
-3 | In addition to our guarantee of principal and interest, we also provide liquidity guarantees for certain multifamily housing revenue bonds included in this category. However, no advances under these liquidity guarantees were outstanding at December 31, 2013 or 2012. | |||||||||||||||||||
-4 | See “NOTE 9: DERIVATIVES” for information about these derivative guarantees. |
Concentration_of_Credit_and_Ot1
Concentration of Credit and Other Risks (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | |||||||||||||||||
Table - Concentration of Credit Risk | ' | |||||||||||||||||
Table 15.1 — Concentration of Credit Risk — Single-Family Credit Guarantee Portfolio | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | Percent of Credit Losses(1) | ||||||||||||||||
Year Ended | ||||||||||||||||||
Percentage of | Serious | Percentage of | Serious | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Portfolio(2) | Delinquency | Portfolio(2) | Delinquency | |||||||||||||||
Rate | Rate | |||||||||||||||||
Year of Origination | ||||||||||||||||||
2013 | 16 | % | — | % | N/A | N/A | <1 | % | N/A | |||||||||
2012 | 16 | — | 14 | % | — | % | <1 | <1 | % | |||||||||
2011 | 8 | 0.2 | 10 | 0.1 | <1 | <1 | ||||||||||||
2010 | 7 | 0.4 | 10 | 0.3 | 1 | 1 | ||||||||||||
2009 | 7 | 0.9 | 11 | 0.7 | 2 | 1 | ||||||||||||
Subtotal - New single-family book | 54 | 0.2 | 45 | 0.3 | 3 | 2 | ||||||||||||
HARP and other relief refinance loans(3) | 21 | 0.6 | 18 | 0.7 | 7 | 2 | ||||||||||||
2005 to 2008 Legacy single-family book | 16 | 8.8 | 24 | 9.6 | 81 | 87 | ||||||||||||
Pre-2005 Legacy single-family book | 9 | 3.2 | 13 | 3.2 | 9 | 9 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
Region(4) | ||||||||||||||||||
West | 28 | % | 1.7 | % | 28 | % | 2.8 | % | 24 | % | 44 | % | ||||||
Northeast | 26 | 3.2 | 25 | 3.8 | 15 | 8 | ||||||||||||
North Central | 18 | 1.8 | 18 | 2.5 | 23 | 20 | ||||||||||||
Southeast | 16 | 3.4 | 17 | 5 | 35 | 24 | ||||||||||||
Southwest | 12 | 1.4 | 12 | 1.7 | 3 | 4 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
State | ||||||||||||||||||
Arizona, California, Florida, and Nevada(5) | 26 | % | 3 | % | 25 | % | 5 | % | 47 | % | 54 | % | ||||||
Illinois, Michigan, and Ohio(6) | 11 | 2.1 | 11 | 3 | 19 | 15 | ||||||||||||
New York and New Jersey(7) | 9 | 5.1 | 9 | 5.5 | 3 | 2 | ||||||||||||
All other | 54 | 1.9 | 55 | 2.4 | 31 | 29 | ||||||||||||
Total | 100 | % | 2.4 | % | 100 | % | 3.3 | % | 100 | % | 100 | % | ||||||
-1 | Credit losses consist of the aggregate amount of charge-offs, net of recoveries, and REO operations expense in each of the respective periods and exclude foregone interest on non-performing loans and other market-based losses recognized on our consolidated statements of comprehensive income. | |||||||||||||||||
-2 | Based on the UPB of our single-family credit guarantee portfolio, which includes unsecuritized single-family mortgage loans held by us on our consolidated balance sheets and those underlying Freddie Mac mortgage-related securities, or covered by our other guarantee commitments. | |||||||||||||||||
-3 | HARP and other relief refinance loans are presented separately rather than in the year that the refinancing occurred (from 2009 to 2013). All other refinance loans are presented in the year that the refinancing occurred. Prior period information has been revised to conform with the current period presentation. | |||||||||||||||||
-4 | Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY). | |||||||||||||||||
-5 | Represents the four states that had the largest cumulative declines in home prices during the housing crisis that began in 2006, as measured using Freddie Mac’s home price index. | |||||||||||||||||
-6 | Represents selected states in the North Central region that have experienced adverse economic conditions since 2006. | |||||||||||||||||
-7 | Represents two states with a judicial foreclosure process in which there are a significant number of seriously delinquent loans within our single-family credit guarantee portfolio. | |||||||||||||||||
Table 15.3 — Concentration of Credit Risk — Multifamily Mortgage Portfolio | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
UPB | Delinquency | UPB | Delinquency | |||||||||||||||
Rate(1) | Rate(1) | |||||||||||||||||
(dollars in billions) | ||||||||||||||||||
State(2) | ||||||||||||||||||
California | $ | 22.4 | 0.03 | % | $ | 21.1 | 0.12 | % | ||||||||||
Texas | 16.7 | 0.02 | 15.9 | 0.13 | ||||||||||||||
New York | 11.4 | 0.12 | 10.7 | 0.09 | ||||||||||||||
Florida | 9.3 | 0.28 | 8.4 | 0.12 | ||||||||||||||
Virginia | 7 | 0.37 | 6.6 | — | ||||||||||||||
Maryland | 6.7 | — | 6.9 | — | ||||||||||||||
All other states | 59.3 | 0.08 | 57.8 | 0.32 | ||||||||||||||
Total | $ | 132.8 | 0.09 | % | $ | 127.4 | 0.19 | % | ||||||||||
Region(3) | ||||||||||||||||||
Northeast | $ | 37.5 | 0.1 | % | $ | 36.1 | 0.04 | % | ||||||||||
West | 33.8 | 0.07 | 31.8 | 0.09 | ||||||||||||||
Southwest | 26.2 | 0.05 | 25.4 | 0.22 | ||||||||||||||
Southeast | 24.1 | 0.16 | 23.4 | 0.54 | ||||||||||||||
North Central | 11.2 | 0.07 | 10.7 | 0.19 | ||||||||||||||
Total | $ | 132.8 | 0.09 | % | $ | 127.4 | 0.19 | % | ||||||||||
Other Categories(4) | ||||||||||||||||||
Original LTV ratio greater than 80% | $ | 5.6 | 0.19 | % | $ | 5.8 | 2.31 | % | ||||||||||
Original DSCR below 1.10 | 2.2 | — | 2.3 | 2.97 | ||||||||||||||
-1 | Based on the UPB of multifamily mortgages two monthly payments or more delinquent or in foreclosure. | |||||||||||||||||
-2 | Represents the six states with the highest UPB at December 31, 2013. | |||||||||||||||||
-3 | See endnote (4) to “Table 15.1 — Concentration of Credit Risk — Single-Family Credit Guarantee Portfolio” for a description of these regions. | |||||||||||||||||
-4 | These categories are not mutually exclusive and a loan in one category may also be included within another category. | |||||||||||||||||
Certain Higher Risk Categories In The Single Family Credit Guarantee Portfolio [Table Text Block] | ' | |||||||||||||||||
Table 15.2 — Certain Higher-Risk Categories in the Single-Family Credit Guarantee Portfolio(1) | ||||||||||||||||||
Percentage of Portfolio(1) | Serious Delinquency Rate | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||
Interest-only | 2 | % | 3 | % | 12.5 | % | 16.3 | % | ||||||||||
Option ARM(2) | <1 | <1 | 12.3 | 16.3 | ||||||||||||||
Alt-A(3) | 3 | 5 | 10.1 | 11.4 | ||||||||||||||
Original LTV ratio greater than 90%(4) | 16 | 13 | 3.2 | 4.8 | ||||||||||||||
Lower FICO scores at origination (less than 620) | 3 | 3 | 10 | 12.2 | ||||||||||||||
-1 | Based on UPB. | |||||||||||||||||
-2 | For reporting purposes, loans within the option ARM category continue to be reported in that category following modification, even though the modified loan no longer provides for optional payment provisions. | |||||||||||||||||
-3 | Alt-A loans may not include those loans that were previously classified as Alt-A and that have been refinanced as either a relief refinance mortgage or in another refinance mortgage initiative. | |||||||||||||||||
-4 | Includes HARP loans, which we are required to purchase as part of our participation in the MHA Program. |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.1 — Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Netting | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | Adjustment(1) | |||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | — | $ | 38,720 | $ | 1,939 | $ | — | $ | 40,659 | ||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 10,666 | 131 | — | 10,797 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 155 | 12 | — | 167 | |||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 27,229 | 3,109 | — | 30,338 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | — | — | 27,499 | — | 27,499 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | — | — | 6,574 | — | 6,574 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | — | — | 8,706 | — | 8,706 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | 3,495 | — | 3,495 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | — | — | 684 | — | 684 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities, at fair value | — | 76,770 | 52,149 | — | 128,919 | |||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | — | 9,006 | 343 | — | 9,349 | |||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 6,959 | 221 | — | 7,180 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 24 | 74 | — | 98 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 133 | 8 | — | 141 | |||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | — | 16,122 | 646 | — | 16,768 | |||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 2,254 | — | — | — | 2,254 | |||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 4,382 | — | — | — | 4,382 | |||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 6,636 | — | — | — | 6,636 | |||||||||||||||||||||||||||||||||||||||||||
Total trading securities, at fair value | 6,636 | 16,122 | 646 | — | 23,404 | |||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 6,636 | 92,892 | 52,795 | — | 152,323 | |||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | — | 8,727 | — | — | 8,727 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | — | 10,009 | 10 | — | 10,019 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 4,112 | — | — | 4,112 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 99 | 1 | — | 100 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | — | 14,220 | 11 | — | 14,231 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (13,168 | ) | (13,168 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative assets, net | — | 14,220 | 11 | (13,168 | ) | 1,063 | ||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | — | — | 1,611 | — | 1,611 | |||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | — | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||||||||||||
Total other assets | — | — | 1,620 | — | 1,620 | |||||||||||||||||||||||||||||||||||||||||||
Total assets carried at fair value on a recurring basis | $ | 6,636 | $ | 115,839 | $ | 54,426 | $ | (13,168 | ) | $ | 163,733 | |||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties, at fair value | $ | — | $ | 59 | $ | — | $ | — | $ | 59 | ||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | — | 1,155 | 1,528 | — | 2,683 | |||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | — | 13,022 | 295 | — | 13,317 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 201 | 3 | — | 204 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 68 | 38 | — | 106 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | — | 13,291 | 336 | — | 13,627 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (13,447 | ) | (13,447 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities, net | — | 13,291 | 336 | (13,447 | ) | 180 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities carried at fair value on a recurring basis | $ | — | $ | 14,505 | $ | 1,864 | $ | (13,447 | ) | $ | 2,922 | |||||||||||||||||||||||||||||||||||||
Fair Value at December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Netting | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | Adjustment(1) | |||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | — | $ | 56,713 | $ | 1,802 | $ | — | $ | 58,515 | ||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 15,117 | 163 | — | 15,280 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 193 | 16 | — | 209 | |||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 47,878 | 3,429 | — | 51,307 | |||||||||||||||||||||||||||||||||||||||||||
Subprime | — | — | 26,457 | — | 26,457 | |||||||||||||||||||||||||||||||||||||||||||
Option ARM | — | — | 5,717 | — | 5,717 | |||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | — | — | 10,904 | — | 10,904 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | 5,798 | — | 5,798 | |||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | — | — | 709 | — | 709 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities, at fair value | — | 119,901 | 54,995 | — | 174,896 | |||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | — | 9,189 | 1,165 | — | 10,354 | |||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | — | 10,026 | 312 | — | 10,338 | |||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | — | 39 | 92 | — | 131 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | 135 | 21 | — | 156 | |||||||||||||||||||||||||||||||||||||||||||
Total mortgage-related securities | — | 19,389 | 1,590 | — | 20,979 | |||||||||||||||||||||||||||||||||||||||||||
Non-mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | 292 | — | — | 292 | |||||||||||||||||||||||||||||||||||||||||||
Treasury bills | 1,160 | — | — | — | 1,160 | |||||||||||||||||||||||||||||||||||||||||||
Treasury notes | 19,061 | — | — | — | 19,061 | |||||||||||||||||||||||||||||||||||||||||||
Total non-mortgage-related securities | 20,221 | 292 | — | — | 20,513 | |||||||||||||||||||||||||||||||||||||||||||
Total trading securities, at fair value | 20,221 | 19,681 | 1,590 | — | 41,492 | |||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 20,221 | 139,582 | 56,585 | — | 216,388 | |||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | — | — | 14,238 | — | 14,238 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | 27 | 13,920 | 18 | — | 13,965 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 10,097 | — | — | 10,097 | |||||||||||||||||||||||||||||||||||||||||||
Other | 37 | 92 | 2 | — | 131 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | 64 | 24,109 | 20 | — | 24,193 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (23,536 | ) | (23,536 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative assets, net | 64 | 24,109 | 20 | (23,536 | ) | 657 | ||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | — | — | 1,029 | — | 1,029 | |||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | — | — | 114 | — | 114 | |||||||||||||||||||||||||||||||||||||||||||
Total other assets | — | — | 1,143 | — | 1,143 | |||||||||||||||||||||||||||||||||||||||||||
Total assets carried at fair value on a recurring basis | $ | 20,285 | $ | 163,691 | $ | 71,986 | $ | (23,536 | ) | $ | 232,426 | |||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties, at fair value | $ | — | $ | 70 | $ | — | $ | — | $ | 70 | ||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | — | — | 2,187 | — | 2,187 | |||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps | 5 | 30,213 | 26 | — | 30,244 | |||||||||||||||||||||||||||||||||||||||||||
Option-based derivatives | — | 749 | 1 | — | 750 | |||||||||||||||||||||||||||||||||||||||||||
Other | 3 | 52 | 40 | — | 95 | |||||||||||||||||||||||||||||||||||||||||||
Subtotal, before netting adjustments | 8 | 31,014 | 67 | — | 31,089 | |||||||||||||||||||||||||||||||||||||||||||
Netting adjustments(1) | — | — | — | (30,911 | ) | (30,911 | ) | |||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities, net | 8 | 31,014 | 67 | (30,911 | ) | 178 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities carried at fair value on a recurring basis | $ | 8 | $ | 31,084 | $ | 2,254 | $ | (30,911 | ) | $ | 2,435 | |||||||||||||||||||||||||||||||||||||
-1 | Represents counterparty netting, cash collateral netting and net derivative interest receivable or payable. The net cash collateral posted was $871 million and $8.2 billion, respectively, at December 31, 2013 and 2012. The net interest receivable (payable) of derivative assets and derivative liabilities was $(0.6) billion and $(0.8) billion at December 31, 2013 and 2012, respectively, which was mainly related to interest rate swaps. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.2 — Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | gains (losses) | |||||||||||||||||||||||||||||||||||||||||
2013 | comprehensive | Level 3(5) | Level 3(5) | 2013 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,802 | $ | 2 | $ | 109 | $ | 111 | $ | 239 | $ | — | $ | (86 | ) | $ | (152 | ) | $ | 25 | $ | — | $ | 1,939 | $ | — | ||||||||||||||||||||||
Fannie Mae | 163 | — | (3 | ) | (3 | ) | — | — | — | (29 | ) | — | — | 131 | — | |||||||||||||||||||||||||||||||||
Ginnie Mae | 16 | — | — | — | — | — | — | (4 | ) | — | — | 12 | — | |||||||||||||||||||||||||||||||||||
CMBS | 3,429 | 6 | (266 | ) | (260 | ) | — | — | (36 | ) | (24 | ) | — | — | 3,109 | — | ||||||||||||||||||||||||||||||||
Subprime | 26,457 | (1,260 | ) | 6,648 | 5,388 | — | — | (403 | ) | (3,943 | ) | — | — | 27,499 | (1,258 | ) | ||||||||||||||||||||||||||||||||
Option ARM | 5,717 | (61 | ) | 1,694 | 1,633 | — | — | (75 | ) | (701 | ) | — | — | 6,574 | (58 | ) | ||||||||||||||||||||||||||||||||
Alt-A and other | 10,904 | (128 | ) | 1,341 | 1,213 | — | — | (2,001 | ) | (1,410 | ) | — | — | 8,706 | (179 | ) | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,798 | 13 | (188 | ) | (175 | ) | (10 | ) | — | (533 | ) | (1,585 | ) | — | — | 3,495 | — | |||||||||||||||||||||||||||||||
Manufactured housing | 709 | (1 | ) | 62 | 61 | — | — | — | (86 | ) | — | — | 684 | (1 | ) | |||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 54,995 | (1,429 | ) | 9,397 | 7,968 | 229 | — | (3,134 | ) | (7,934 | ) | 25 | — | 52,149 | (1,496 | ) | ||||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,165 | (50 | ) | — | (50 | ) | 1,271 | 269 | (1,476 | ) | (64 | ) | 1 | (773 | ) | 343 | (53 | ) | ||||||||||||||||||||||||||||||
Fannie Mae | 312 | (42 | ) | — | (42 | ) | 2 | — | (2 | ) | (25 | ) | 43 | (67 | ) | 221 | (42 | ) | ||||||||||||||||||||||||||||||
Ginnie Mae | 92 | (1 | ) | — | (1 | ) | 3 | — | — | (15 | ) | — | (5 | ) | 74 | (1 | ) | |||||||||||||||||||||||||||||||
Other | 21 | — | — | — | — | — | — | (3 | ) | — | (10 | ) | 8 | — | ||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 1,590 | (93 | ) | — | (93 | ) | 1,276 | 269 | (1,478 | ) | (107 | ) | 44 | (855 | ) | 646 | (96 | ) | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | 14,238 | — | — | — | — | — | — | — | — | (14,238 | ) | — | — | |||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset(7) | 1,029 | 4 | — | 4 | — | 688 | — | (110 | ) | — | — | 1,611 | 4 | |||||||||||||||||||||||||||||||||||
All other, at fair value | 114 | 30 | — | 30 | — | — | (135 | ) | — | — | — | 9 | 7 | |||||||||||||||||||||||||||||||||||
Total other assets | 1,143 | 34 | — | 34 | — | 688 | (135 | ) | (110 | ) | — | — | 1,620 | 11 | ||||||||||||||||||||||||||||||||||
Realized and unrealized (gains) losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | (gains) | |||||||||||||||||||||||||||||||||||||||||
2013 | comprehensive | Level 3(5) | Level 3(5) | 2013 | losses | |||||||||||||||||||||||||||||||||||||||||||
income(1) | still held(6) | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | $ | 2,187 | $ | 11 | $ | — | $ | 11 | $ | — | $ | 1,130 | $ | — | $ | (670 | ) | $ | — | $ | (1,130 | ) | $ | 1,528 | $ | 4 | ||||||||||||||||||||||
Net derivatives(8) | 47 | 301 | — | 301 | — | 12 | — | (35 | ) | — | — | 325 | 274 | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | gains (losses) | |||||||||||||||||||||||||||||||||||||||||
2012 | comprehensive | Level 3 | Level 3 | 2012 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 2,048 | $ | — | $ | 18 | $ | 18 | $ | — | $ | — | $ | — | $ | (144 | ) | $ | — | $ | (120 | ) | $ | 1,802 | $ | — | ||||||||||||||||||||||
Fannie Mae | 172 | — | 1 | 1 | — | — | — | (31 | ) | 21 | — | 163 | — | |||||||||||||||||||||||||||||||||||
Ginnie Mae | 12 | — | — | — | — | — | — | (4 | ) | 8 | — | 16 | — | |||||||||||||||||||||||||||||||||||
CMBS | 3,756 | 76 | (38 | ) | 38 | — | — | (331 | ) | (34 | ) | — | — | 3,429 | — | |||||||||||||||||||||||||||||||||
Subprime | 27,999 | (1,274 | ) | 4,301 | 3,027 | — | — | — | (4,569 | ) | — | — | 26,457 | (1,274 | ) | |||||||||||||||||||||||||||||||||
Option ARM | 5,865 | (552 | ) | 1,417 | 865 | — | — | (15 | ) | (998 | ) | — | — | 5,717 | (556 | ) | ||||||||||||||||||||||||||||||||
Alt-A and other | 10,868 | (196 | ) | 1,822 | 1,626 | — | — | — | (1,601 | ) | 11 | — | 10,904 | (196 | ) | |||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 7,824 | 19 | 108 | 127 | — | — | (482 | ) | (1,671 | ) | — | — | 5,798 | — | ||||||||||||||||||||||||||||||||||
Manufactured housing | 766 | (4 | ) | 47 | 43 | — | — | — | (100 | ) | — | — | 709 | (4 | ) | |||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 59,310 | (1,931 | ) | 7,676 | 5,745 | — | — | (828 | ) | (9,152 | ) | 40 | (120 | ) | 54,995 | (2,030 | ) | |||||||||||||||||||||||||||||||
Trading, at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,866 | (389 | ) | — | (389 | ) | 25 | 95 | (76 | ) | (206 | ) | 92 | (242 | ) | 1,165 | (390 | ) | ||||||||||||||||||||||||||||||
Fannie Mae | 538 | (131 | ) | — | (131 | ) | (5 | ) | — | 5 | (35 | ) | — | (60 | ) | 312 | (131 | ) | ||||||||||||||||||||||||||||||
Ginnie Mae | 22 | 1 | — | 1 | — | — | — | (16 | ) | 98 | (13 | ) | 92 | 1 | ||||||||||||||||||||||||||||||||||
Other | 90 | — | — | — | — | 18 | (10 | ) | (3 | ) | — | (74 | ) | 21 | (1 | ) | ||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 2,516 | (519 | ) | — | (519 | ) | 20 | 113 | (81 | ) | (260 | ) | 190 | (389 | ) | 1,590 | (521 | ) | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | 9,710 | 1,011 | — | 1,011 | 25,340 | — | (21,764 | ) | (59 | ) | — | — | 14,238 | 263 | ||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset(7) | 752 | (23 | ) | — | (23 | ) | — | 382 | — | (82 | ) | — | — | 1,029 | (23 | ) | ||||||||||||||||||||||||||||||||
All other, at fair value | 151 | (37 | ) | — | (37 | ) | — | — | — | — | — | — | 114 | (37 | ) | |||||||||||||||||||||||||||||||||
Total other assets | 903 | (60 | ) | — | (60 | ) | — | 382 | — | (82 | ) | — | — | 1,143 | (60 | ) | ||||||||||||||||||||||||||||||||
Realized and unrealized (gains) losses | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, | Included in | Included in | Total | Purchases | Issues | Sales | Settlements, | Transfers | Transfers | Balance, | Unrealized | |||||||||||||||||||||||||||||||||||||
January 1, | earnings(1)(2)(3)(4) | other | net | into | out of | December 31, | (gains) losses | |||||||||||||||||||||||||||||||||||||||||
2012 | comprehensive | Level 3 | Level 3 | 2012 | still held(6) | |||||||||||||||||||||||||||||||||||||||||||
income(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | $ | — | $ | (16 | ) | $ | — | $ | (16 | ) | $ | — | $ | — | $ | — | $ | (812 | ) | $ | 3,015 | $ | — | $ | 2,187 | $ | (6 | ) | ||||||||||||||||||||
Net derivatives(8) | (17 | ) | 30 | — | 30 | — | 3 | — | (2 | ) | — | 33 | 47 | 15 | ||||||||||||||||||||||||||||||||||
-1 | Changes in fair value for available-for-sale investment securities are recorded in AOCI, while gains and losses from sales are recorded in other gains (losses) on investment securities recognized in earnings on our consolidated statements of comprehensive income. For mortgage-related securities classified as trading, the realized and unrealized gains (losses) are recorded in other gains (losses) on investment securities recognized in earnings on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Changes in fair value of derivatives not designated as accounting hedges are recorded in derivative gains (losses) on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Changes in fair value of the guarantee asset are recorded in other income on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | For held-for-sale mortgage loans with the fair value option elected, gains (losses) on fair value changes and from sales of mortgage loans are recorded in other income on our consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||||
-5 | Transfers out of Level 3 during the year ended December 31, 2013 are due to: (a) our enhancement to our pricing methodology for multifamily mortgage loans, held-for-sale, to more directly reflect the increasingly observable nature of our exit market of loan securitization; and (b) an increased volume and level of activity in the market and availability of price quotes from dealers and third-party pricing services for: (i) trading mortgage-related securities; and (ii) STACR debt notes included in other debt at fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
-6 | Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at December 31, 2013 and 2012, respectively. Included in these amounts are credit-related other-than-temporary impairments recorded on available-for-sale securities. | |||||||||||||||||||||||||||||||||||||||||||||||
-7 | We estimate that all amounts recorded for unrealized gains and losses on our guarantee asset relate to those guarantee asset amounts still recorded on our balance sheet. The amounts reflected as included in earnings represent the periodic fair value changes of our guarantee asset. | |||||||||||||||||||||||||||||||||||||||||||||||
-8 | Net derivatives include derivative assets and derivative liabilities prior to counterparty netting, cash collateral netting, net trade/settle receivable or payable and net derivative interest receivable or payable. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Assets Measured at Fair Value on a Non-Recurring Basis | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.3 — Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value at December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | Quoted Prices | Significant Other | Significant | Total | |||||||||||||||||||||||||||||||||||||||||
in Active Markets | Observable | Unobservable | in Active Markets | Observable | Unobservable | |||||||||||||||||||||||||||||||||||||||||||
for Identical | Inputs | Inputs | for Identical | Inputs (Level 2) | Inputs | |||||||||||||||||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | — | $ | — | $ | 515 | $ | 515 | $ | — | $ | — | $ | 1,025 | $ | 1,025 | ||||||||||||||||||||||||||||||||
REO, net(2) | — | — | 1,837 | 1,837 | — | — | 776 | 776 | ||||||||||||||||||||||||||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | — | $ | — | $ | 2,352 | $ | 2,352 | $ | — | $ | — | $ | 1,801 | $ | 1,801 | ||||||||||||||||||||||||||||||||
Total Gains (Losses)(3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 22 | $ | (49 | ) | $ | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
REO, net(2) | (50 | ) | (22 | ) | (118 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) | $ | (28 | ) | $ | (71 | ) | $ | (134 | ) | |||||||||||||||||||||||||||||||||||||||
-1 | Represents carrying value and related write-downs of loans for which adjustments are based on the fair value amounts. These loans consist of impaired multifamily mortgage loans that are classified as held-for-investment and have a related valuation allowance. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Represents the fair value and related losses of foreclosed properties that were measured at fair value subsequent to their initial classification as REO, net. The carrying amount of REO, net was written down to fair value of $1.8 billion, less estimated costs to sell of $118 million (or approximately $1.7 billion) at December 31, 2013. The carrying amount of REO, net was written down to fair value of $0.8 billion , less estimated costs to sell of $50 million (or approximately $0.7 billion) at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Represents the total net gains (losses) recorded on items measured at fair value on a non-recurring basis for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Quantitative Information about Recurring Level 3 Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.4 — Quantitative Information about Recurring Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,547 | Risk metric | Effective duration(2) | 2.25 - 5.17 years | 2.44 years | ||||||||||||||||||||||||||||||||||||||||||
133 | Single external source | External pricing source | $99.3 - $99.3 | $ | 99.3 | |||||||||||||||||||||||||||||||||||||||||||
259 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | $ | 40,659 | 1,939 | |||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 91 | Single external source | External pricing source | $110.5 - $110.5 | $ | 110.5 | ||||||||||||||||||||||||||||||||||||||||||
26 | Median of external sources | External pricing sources | $104.1 - $105.3 | $ | 104.7 | |||||||||||||||||||||||||||||||||||||||||||
14 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 10,797 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 6 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
6 | Discounted cash flows | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 167 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 2,942 | Single external source | External pricing source | $90.9 - $90.9 | $ | 90.9 | ||||||||||||||||||||||||||||||||||||||||||
167 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total CMBS | 30,338 | 3,109 | ||||||||||||||||||||||||||||||||||||||||||||||
Subprime, option ARM, and Alt-A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime | 25,367 | Median of external sources | External pricing sources | $64.5 - $73.8 | $ | 68.7 | ||||||||||||||||||||||||||||||||||||||||||
2,132 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total subprime | 27,499 | 27,499 | ||||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 4,995 | Median of external sources | External pricing sources | $60.8- $67.0 | $ | 64.4 | ||||||||||||||||||||||||||||||||||||||||||
705 | Discounted cash flows | OAS | 461 - 944 bps | 729 bps | ||||||||||||||||||||||||||||||||||||||||||||
874 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total option ARM | 6,574 | 6,574 | ||||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 4,028 | Single external source | External pricing source | $83.4 - $83.4 | $ | 83.4 | ||||||||||||||||||||||||||||||||||||||||||
3,503 | Median of external sources | External pricing sources | $72.5 - $79.1 | $ | 75.7 | |||||||||||||||||||||||||||||||||||||||||||
1,175 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Alt-A and other | 8,706 | 8,706 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 3,067 | Median of external sources | External pricing sources | $98.7 - $99.7 | $ | 99.2 | ||||||||||||||||||||||||||||||||||||||||||
428 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total obligations of states and political subdivisions | 3,495 | 3,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 577 | Median of external sources | External pricing sources | $86.7 - $92.8 | $ | 89.7 | ||||||||||||||||||||||||||||||||||||||||||
107 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing | 684 | 684 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 128,919 | 52,149 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 297 | Discounted cash flows | OAS | (5) - 9,441 bps | 364 bps | |||||||||||||||||||||||||||||||||||||||||||
46 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | 9,349 | 343 | ||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 191 | Discounted cash flows | OAS | (2,257) - 2,295 bps | 199 bps | |||||||||||||||||||||||||||||||||||||||||||
30 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 7,180 | 221 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 74 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 98 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | Single external source | ||||||||||||||||||||||||||||||||||||||||||||||
1 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | 141 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 16,768 | 646 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | $ | 145,687 | $ | 52,795 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | 1,163 | Discounted cash flows | OAS | 16 - 202 bps | 53 bps | |||||||||||||||||||||||||||||||||||||||||||
448 | Median of external sources | External pricing sources | $11.6 - $25.4 | $ | 19.2 | |||||||||||||||||||||||||||||||||||||||||||
Total guarantee asset, at fair value | 1,611 | 1,611 | ||||||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | 9 | Other | ||||||||||||||||||||||||||||||||||||||||||||||
Total all other, at fair value | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Total other assets | 1,620 | 1,620 | ||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | 1,000 | Single external source | External pricing source | $100.0 - $100.0 | $ | 100 | ||||||||||||||||||||||||||||||||||||||||||
528 | Median of external sources | External pricing sources | $100.0 - $100.1 | 100 | ||||||||||||||||||||||||||||||||||||||||||||
Total other debt recorded at fair value | 2,683 | 1,528 | ||||||||||||||||||||||||||||||||||||||||||||||
Net derivatives | 283 | Single external source | External pricing source | $0.8 - $0.8 | $ | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
37 | Discounted cash flows | |||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total net derivatives | (883 | ) | 325 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | $ | 1,477 | Risk metric | Effective duration(2) | 0.89 -1.98 years | 0.89 years | ||||||||||||||||||||||||||||||||||||||||||
325 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | $ | 58,515 | 1,802 | |||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 78 | Median of external sources | External pricing sources | $103.9 - $106.0 | $ | 105.2 | ||||||||||||||||||||||||||||||||||||||||||
65 | Single external source | External pricing source | $116.0 - $116.0 | $ | 116 | |||||||||||||||||||||||||||||||||||||||||||
20 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 15,280 | 163 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 8 | Discounted cash flows | ||||||||||||||||||||||||||||||||||||||||||||||
8 | Median of external sources | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 209 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 2,462 | Single external source | External pricing source | $99.4 - $99.4 | $ | 99.4 | ||||||||||||||||||||||||||||||||||||||||||
432 | Risk metric | Effective duration(2) | 9.3 -14.8 years | 12.0 years | ||||||||||||||||||||||||||||||||||||||||||||
535 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total CMBS | 51,307 | 3,429 | ||||||||||||||||||||||||||||||||||||||||||||||
Subprime, option ARM, and Alt-A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Subprime | 24,890 | Median of external sources | External pricing sources | $54.4 - $64.4 | $ | 59.2 | ||||||||||||||||||||||||||||||||||||||||||
1,567 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total subprime | 26,457 | 26,457 | ||||||||||||||||||||||||||||||||||||||||||||||
Option ARM | 5,631 | Median of external sources | External pricing sources | $43.8 - $52.6 | $ | 47.9 | ||||||||||||||||||||||||||||||||||||||||||
86 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total option ARM | 5,717 | 5,717 | ||||||||||||||||||||||||||||||||||||||||||||||
Alt-A and other | 8,562 | Median of external sources | External pricing sources | $69.6 - $77.9 | $ | 73.8 | ||||||||||||||||||||||||||||||||||||||||||
1,901 | Single external source | External pricing source | $71.8 - $71.8 | $ | 71.8 | |||||||||||||||||||||||||||||||||||||||||||
441 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Alt-A and other | 10,904 | 10,904 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 5,533 | Median of external sources | External pricing sources | $102.3 - $103.2 | $ | 102.7 | ||||||||||||||||||||||||||||||||||||||||||
265 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total obligations of states and political subdivisions | 5,798 | 5,798 | ||||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 693 | Median of external sources | External pricing sources | $80.0 - $85.5 | $ | 82.8 | ||||||||||||||||||||||||||||||||||||||||||
16 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing | 709 | 709 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale mortgage-related securities | 174,896 | 54,995 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 1,112 | Discounted cash flows | OAS | (33,702) - 3,251 bps | 502 bps | |||||||||||||||||||||||||||||||||||||||||||
53 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Freddie Mac | 10,354 | 1,165 | ||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | 312 | Discounted cash flows | OAS | (1,263) - 3,251 bps | 810 bps | |||||||||||||||||||||||||||||||||||||||||||
Total Fannie Mae | 10,338 | 312 | ||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 87 | Median of external sources | ||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total Ginnie Mae | 131 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 12 | Discounted cash flows | ||||||||||||||||||||||||||||||||||||||||||||||
9 | Median of external sources | |||||||||||||||||||||||||||||||||||||||||||||||
Total other | 156 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading mortgage-related securities | 20,979 | 1,590 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | $ | 195,875 | $ | 56,585 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale, at fair value | $ | 14,238 | $ | 14,238 | Discounted cash flows | DSCR | 1.25 - 6.88 | 1.97 | ||||||||||||||||||||||||||||||||||||||||
Current LTV | 19% - 80% | 69 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Guarantee asset, at fair value | 870 | Discounted cash flows | OAS | 0 - 368 bps | 55 bps | |||||||||||||||||||||||||||||||||||||||||||
159 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total guarantee asset, at fair value | 1,029 | 1,029 | ||||||||||||||||||||||||||||||||||||||||||||||
All other, at fair value | 112 | Discounted cash flows | Prepayment rate | 7.73% -39.87% | 21.23 | % | ||||||||||||||||||||||||||||||||||||||||||
Servicing income per loan | 0.19% - 0.52% | 0.25 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost to service per loan | $78 - $354 | $ | 141 | |||||||||||||||||||||||||||||||||||||||||||||
2 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total all other, at fair value | 114 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||
Total other assets | 1,143 | 1,143 | ||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other debt, at fair value | 1,188 | Median of external sources | External pricing sources | $101.7 - $102.0 | $ | 101.7 | ||||||||||||||||||||||||||||||||||||||||||
999 | Single external source | External pricing source | $99.9 - $99.9 | $ | 99.9 | |||||||||||||||||||||||||||||||||||||||||||
Total other debt recorded at fair value | 2,187 | 2,187 | ||||||||||||||||||||||||||||||||||||||||||||||
Net derivatives | (479 | ) | 47 | Other | ||||||||||||||||||||||||||||||||||||||||||||
-1 | Certain unobservable input types, range, and weighted average data are not disclosed in this table if they are associated with a class: (a) that has a Level 3 fair value measurement that is not considered material; or (b) where we have disclosed the predominant valuation technique with related unobservable inputs for the most significant portion of that class. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | Effective duration is used as a proxy to represent the aggregate impact of key rate durations. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.5 — Quantitative Information about Non-Recurring Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 298 | Income capitalization | Capitalization rates(2) | 6% - 9% | 7% | ||||||||||||||||||||||||||||||||||||||||||
217 | Third-party appraisal | Property value | $4 million - $44 million | $27 million | ||||||||||||||||||||||||||||||||||||||||||||
Total held-for-investment | $ | 515 | 515 | |||||||||||||||||||||||||||||||||||||||||||||
REO, net | 1,837 | Internal model(3) | Historical average sales | $17,500 - $318,391 | $ | 105,508 | ||||||||||||||||||||||||||||||||||||||||||
proceeds per property | ||||||||||||||||||||||||||||||||||||||||||||||||
by state(4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total REO, net | 1,837 | 1,837 | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 3 | Predominant | Unobservable Inputs(1) | |||||||||||||||||||||||||||||||||||||||||||||
Fair | Fair | Valuation | ||||||||||||||||||||||||||||||||||||||||||||||
Value | Value | Technique(s) | Type | Range | Weighted | |||||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-recurring fair value measurements | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-investment | $ | 711 | Income capitalization | Capitalization rates(2) | 5% - 9% | 7% | ||||||||||||||||||||||||||||||||||||||||||
314 | Third-party appraisal | Property value | $2 million - $43 million | $21 million | ||||||||||||||||||||||||||||||||||||||||||||
Total held-for-investment | $ | 1,025 | 1,025 | |||||||||||||||||||||||||||||||||||||||||||||
REO, net | 771 | Internal model(3) | Historical average sales | $32,186 - $356,397 | $102,697 | |||||||||||||||||||||||||||||||||||||||||||
proceeds per property | ||||||||||||||||||||||||||||||||||||||||||||||||
by state(4) | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | Other | |||||||||||||||||||||||||||||||||||||||||||||||
Total REO, net | 776 | 776 | ||||||||||||||||||||||||||||||||||||||||||||||
-1 | Certain unobservable input types, range, and weighted average data are not disclosed in this table if they are associated with a class: (a) that has a Level 3 fair value measurement that is not considered material; or (b) where we have disclosed the predominant valuation technique with related unobservable inputs for the most significant portion of that class. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The capitalization rate “Range” and “Weighted Average” represent those loans that are valued using the Income Capitalization approach, which is the predominant valuation technique used for this population. Certain loans in this population are valued using other techniques, and the capitalization rate for those is not represented in the “Range” or “Weighted Average” above. | |||||||||||||||||||||||||||||||||||||||||||||||
-3 | Represents an internal model that uses actual REO disposition prices for the prior three months, calibrated to the most recent month's disposition prices, to determine the average sales proceeds per property at the state level, expressed as a fixed percentage based on the ratio of the disposition price to the UPB of the associated loan. This valuation technique is used to measure both the initial value of REO and the subsequent write-down to current fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
-4 | Represents the average of three months of REO sales proceeds by state. The national average REO disposition severity ratio for our REO properties was 35.8% and 39.5% for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.6 — Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount(1) | Level 1 | Level 2 | Level 3 | Netting Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 11,281 | $ | 7,360 | $ | 3,921 | $ | — | $ | — | $ | 11,281 | ||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 12,265 | 12,264 | 1 | — | — | 12,265 | ||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 62,383 | — | 62,383 | — | — | 62,383 | ||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | 128,919 | — | 76,770 | 52,149 | — | 128,919 | ||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | 23,404 | 6,636 | 16,122 | 646 | — | 23,404 | ||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 152,323 | 6,636 | 92,892 | 52,795 | — | 152,323 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held by consolidated trusts | 1,529,905 | — | 1,258,049 | 249,693 | — | 1,507,742 | ||||||||||||||||||||||||||||||||||||||||||
Unsecuritized mortgage loans | 154,885 | — | 16,145 | 122,065 | — | 138,210 | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans(2) | 1,684,790 | — | 1,274,194 | 371,758 | — | 1,645,952 | ||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net | 1,063 | — | 14,220 | 11 | (13,168 | ) | 1,063 | |||||||||||||||||||||||||||||||||||||||||
Guarantee asset | 1,611 | — | — | 1,879 | — | 1,879 | ||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,925,716 | $ | 26,260 | $ | 1,447,611 | $ | 426,443 | $ | (13,168 | ) | $ | 1,887,146 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties | $ | 1,433,984 | $ | — | $ | 1,435,894 | $ | 1,004 | $ | — | $ | 1,436,898 | ||||||||||||||||||||||||||||||||||||
Other debt | 506,767 | — | 499,756 | 13,089 | — | 512,845 | ||||||||||||||||||||||||||||||||||||||||||
Total debt, net | 1,940,751 | — | 1,935,650 | 14,093 | — | 1,949,743 | ||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net | 180 | — | 13,291 | 336 | (13,447 | ) | 180 | |||||||||||||||||||||||||||||||||||||||||
Guarantee obligation | 1,522 | — | — | 3,067 | — | 3,067 | ||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 1,942,453 | $ | — | $ | 1,948,941 | $ | 17,496 | $ | (13,447 | ) | $ | 1,952,990 | |||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount(1) | Level 1 | Level 2 | Level 3 | Netting Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 8,513 | $ | 8,513 | $ | — | $ | — | $ | — | $ | 8,513 | ||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | 14,592 | 14,576 | 16 | — | — | 14,592 | ||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 37,563 | — | 37,563 | — | — | 37,563 | ||||||||||||||||||||||||||||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale, at fair value | 174,896 | — | 119,901 | 54,995 | — | 174,896 | ||||||||||||||||||||||||||||||||||||||||||
Trading, at fair value | 41,492 | 20,221 | 19,681 | 1,590 | — | 41,492 | ||||||||||||||||||||||||||||||||||||||||||
Total investments in securities | 216,388 | 20,221 | 139,582 | 56,585 | — | 216,388 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held by consolidated trusts | 1,495,932 | — | 1,130,438 | 409,722 | — | 1,540,160 | ||||||||||||||||||||||||||||||||||||||||||
Unsecuritized mortgage loans | 190,415 | — | 16,428 | 151,175 | — | 167,603 | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | 1,686,347 | — | 1,146,866 | 560,897 | — | 1,707,763 | ||||||||||||||||||||||||||||||||||||||||||
Derivative assets, net | 657 | 64 | 24,109 | 20 | (23,536 | ) | 657 | |||||||||||||||||||||||||||||||||||||||||
Guarantee asset | 1,029 | — | — | 1,325 | — | 1,325 | ||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,965,089 | $ | 43,374 | $ | 1,348,136 | $ | 618,827 | $ | (23,536 | ) | $ | 1,986,801 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities of consolidated trusts held by third parties | $ | 1,419,524 | $ | — | $ | 1,484,228 | $ | 2,867 | $ | — | $ | 1,487,095 | ||||||||||||||||||||||||||||||||||||
Other debt | 547,518 | — | 546,955 | 18,646 | — | 565,601 | ||||||||||||||||||||||||||||||||||||||||||
Total debt, net | 1,967,042 | — | 2,031,183 | 21,513 | — | 2,052,696 | ||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities, net | 178 | 8 | 31,014 | 67 | (30,911 | ) | 178 | |||||||||||||||||||||||||||||||||||||||||
Guarantee obligation | 1,004 | — | — | 2,487 | — | 2,487 | ||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 1,968,224 | $ | 8 | $ | 2,062,197 | $ | 24,067 | $ | (30,911 | ) | $ | 2,055,361 | |||||||||||||||||||||||||||||||||||
-1 | Equals the amount reported on our GAAP consolidated balance sheets. | |||||||||||||||||||||||||||||||||||||||||||||||
-2 | The fair value of single-family mortgage loans as of December 31, 2013 includes the effect of a change in estimate related to enhancements implemented to align our economic capital methodology with external capital benchmarks. | |||||||||||||||||||||||||||||||||||||||||||||||
Table - Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Table 16.7 — Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | Other Debt - | Multifamily | Other Debt - | |||||||||||||||||||||||||||||||||||||||||||||
Held-For-Sale | Long Term | Held-For-Sale | Long Term | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 8,727 | $ | 2,683 | $ | 14,238 | $ | 2,187 | ||||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | 8,721 | 2,635 | 13,972 | 2,167 | ||||||||||||||||||||||||||||||||||||||||||||
Difference | $ | 6 | $ | 48 | $ | 266 | $ | 20 | ||||||||||||||||||||||||||||||||||||||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Mortgage Banking [Abstract] | ' | |||||||
Table - Net Worth and Minimum Capital | ' | |||||||
Table 18.1 — Net Worth and Minimum Capital | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(in millions) | ||||||||
GAAP net worth(1) | $ | 12,835 | $ | 8,827 | ||||
Core capital (deficit)(2)(3) | $ | (59,495 | ) | $ | (60,571 | ) | ||
Less: Minimum capital requirement(2) | 21,404 | 22,063 | ||||||
Minimum capital surplus (deficit)(2) | $ | (80,899 | ) | $ | (82,634 | ) | ||
-1 | Net worth (deficit) represents the difference between our assets and liabilities under GAAP. | |||||||
-2 | Core capital and minimum capital figures for December 31, 2013 are estimates. FHFA is the authoritative source for our regulatory capital. | |||||||
-3 | Core capital excludes certain components of GAAP total equity (deficit) (i.e., AOCI and the liquidation preference of the senior preferred stock) as these items do not meet the statutory definition of core capital. |
Selected_Financial_Statement_L1
Selected Financial Statement Line Items (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Selected Financial Statement Data [Abstract] | ' | |||||||
Table - Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets | ' | |||||||
Table 19.1 — Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(in millions) | ||||||||
Other assets: | ||||||||
Accounts and other receivables(1) | $ | 4,367 | $ | 10,091 | ||||
Guarantee asset | 1,611 | 1,029 | ||||||
All other | 2,561 | 2,645 | ||||||
Total other assets | $ | 8,539 | $ | 13,765 | ||||
Other liabilities: | ||||||||
Servicer liabilities | $ | 2,277 | $ | 3,304 | ||||
Guarantee obligation | 1,522 | 1,004 | ||||||
Accounts payable and accrued expenses | 886 | 984 | ||||||
All other | 807 | 807 | ||||||
Total other liabilities | $ | 5,492 | $ | 6,099 | ||||
-1 | Primarily consists of servicer receivables. | |||||||
END OF CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
numberofreportablesegments | |||||
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 3 | ' |
Immaterial Error Correction | ' | ' | ' | 'not material | ' |
Look Back Period For Estimating Loan Loss Severity Based on Sales Experience On Distressed Property Dispositions | '3 months | '3 months | '6 months | ' | ' |
Loans Receivable Held For Sale At Lower Of Cost Or Fair Value | $0 | ' | ' | $0 | $0 |
Look Back Period for Estimating Loan Loss Reserve | '12 months | ' | ' | ' | ' |
Look Back Period For Estimating Loan Loss Severity Based on Mortgage Insurance Recoveries and Preforeclosure Expenses on Distressed Properties | '6 months | ' | ' | ' | ' |
Held-to-maturity Securities | 0 | ' | ' | 0 | ' |
Derivatives in Hedge Accounting Relationships | 0 | ' | ' | 0 | 0 |
Impairments of available-for-sale securities recognized in earnings [Member] | ' | ' | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Change In Accounting Estimate, Financial Effect, Quantification | $700,000,000 | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 |
Accounting Standards Update 2011-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Provision for credit losses | ($2,465) | $1,890 | $10,702 | $200 |
Conservatorship_and_Related_Ma1
Conservatorship and Related Matters (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Apr. 01, 2012 | Dec. 23, 2011 | Dec. 31, 2009 | Sep. 30, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 08, 2008 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
numberofstrategicgoals | numberofstrategicgoals | U.S. government | U.S. government | U.S. government | Senior Preferred Stock | Senior Preferred Stock | Year 2014 | Year 2018 | ||||||||
Conservatorship And Related Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of strategic goals | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of down payment requirement | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Announced increase in guarantee fees on single family mortgages as directed by FHFA | ' | ' | ' | ' | 0.10% | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in guarantee fees to be remitted to Treasury | ' | ' | 0.10% | ' | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of funding commitment from Treasury under Purchase Agreement. | ' | ' | $200,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding available under Purchase Agreement | 140,500,000,000 | 140,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Initial liquidation preference of Senior Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock warrant, percentage of common stock shares that can be purchased | 79.90% | 79.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Applicable capital reserve amount | 3,000,000,000 | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000,000 | 0 |
Annual reduction of capital reserve amount | 600,000,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance of non-ordinary course asset sales | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB of mortgage-related investments portfolio limit | 553,000,000,000 | 553,000,000,000 | 650,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual maximum percentage of mortgage-related investments portfolio limit | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of the mortgage-related investments portfolio limit | 250,000,000,000 | 250,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt limit as percentage of mortgage assets | 120.00% | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB of mortgage-related investments portfolio | 461,000,000,000 | 461,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual percentage reduction of the mortgage-related investments portfolio | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of mandatory asset sales from the mortgage-related investments portfolio | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Draw received | 0 | 0 | 165,000,000 | 7,971,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate dividend payments since conservatorship began | 71,300,000,000 | 71,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected draw request from Treasury | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TCFLP - credit and liquidity support for HFA | ' | ' | ' | ' | ' | ' | ' | 8,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
NIBP - financing support for HFA | ' | ' | ' | ' | ' | ' | ' | 15,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
TCLFP and NIBP - % of inital losses of total principal born by Treasury | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of related party transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
numberofloans | numberofloans | |
Variable Interest Entity [Line Items] | ' | ' |
Purchased Percentage Of Value Of Underlying Property For Unsecuritized Multifamily Loans | 80.00% | ' |
Remaining Percentage Of Value Not Funded Through Unsecuritized Multifamily Loans Freddie Mac Acquired | 20.00% | ' |
Volume Of Unsecuritized Multifamily Loans Held | 5,000 | 6,000 |
UPB of Mortgage Loans | $1,690,474,000,000 | $1,698,791,000,000 |
Multifamily Loan Product | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
UPB of Mortgage Loans | 59,615,000,000 | 77,017,000,000 |
Single-family PC Trusts | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets of VIEs | 1,500,000,000,000 | 1,500,000,000,000 |
REMIC Trust | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Consolidated UPB of VIE | 3,500,000,000 | 4,200,000,000 |
Other Guarantee Transactions | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets of VIEs | 8,900,000,000 | 11,000,000,000 |
Credit Enhanced Multifamily Housing Revenue Bonds | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Number Of credit-enhanced multifamily housing revenue bonds that Freddie Mac was the primary beneficiary | 1 | 2 |
Parent Company [Member] | Multifamily Loan Product | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
UPB of Mortgage Loans | $59,200,000,000 | $76,600,000,000 |
Variable_Interest_Entities_Var
Variable Interest Entities - Variable Interests in VIEs for which We are not the Primary Beneficiary (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents related to consolidated VIEs | $11,281 | $8,513 | $28,442 | $37,012 |
Restricted Cash and Cash Equivalents | 12,265 | 14,592 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 128,919 | 174,896 | ' | ' |
Trading Securities, Debt | 23,404 | 41,492 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 1,676,063 | 1,672,109 | ' | ' |
Mortgage loans held-for-sale | 8,727 | 14,238 | ' | ' |
Accrued interest receivable | 6,150 | 6,875 | ' | ' |
Derivative assets, net | 1,063 | 657 | ' | ' |
Other Assets | 8,539 | 13,765 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | -180 | -178 | ' | ' |
Other Liabilities | -5,492 | -6,099 | ' | ' |
Asset Backed Investment Trusts | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 0 | 0 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 | ' | ' |
Trading Securities, Debt | 0 | 292 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 0 | 0 | ' | ' |
Mortgage loans held-for-sale | 0 | 0 | ' | ' |
Accrued interest receivable | 0 | 0 | ' | ' |
Derivative assets, net | ' | 0 | ' | ' |
Other Assets | 0 | 0 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | 0 | 0 | ' | ' |
Other Liabilities | 0 | 0 | ' | ' |
Maximum Exposure to Loss | 0 | 292 | ' | ' |
Total Assets of Non-Consolidated VIEs | 0 | 10,901 | ' | ' |
Freddie Mac Securities | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 6 | 24 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 40,659 | 58,515 | ' | ' |
Trading Securities, Debt | 9,349 | 10,354 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 0 | 0 | ' | ' |
Mortgage loans held-for-sale | 0 | 0 | ' | ' |
Accrued interest receivable | 232 | 324 | ' | ' |
Derivative assets, net | ' | 0 | ' | ' |
Other Assets | 833 | 558 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | -3 | -1 | ' | ' |
Other Liabilities | -875 | -667 | ' | ' |
Maximum Exposure to Loss | 72,072 | 51,045 | ' | ' |
Total Assets of Non-Consolidated VIEs | 84,731 | 59,302 | ' | ' |
Non Freddie Mac Securities | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 0 | 0 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 84,765 | 110,583 | ' | ' |
Trading Securities, Debt | 7,414 | 10,617 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 0 | 0 | ' | ' |
Mortgage loans held-for-sale | 0 | 0 | ' | ' |
Accrued interest receivable | 226 | 350 | ' | ' |
Derivative assets, net | ' | 0 | ' | ' |
Other Assets | 14 | 2 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | 0 | 0 | ' | ' |
Other Liabilities | -2 | -2 | ' | ' |
Maximum Exposure to Loss | 92,559 | 128,475 | ' | ' |
Total Assets of Non-Consolidated VIEs | 506,699 | 768,704 | ' | ' |
Unsecuritized Multifamily Loans | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 8 | 22 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 | ' | ' |
Trading Securities, Debt | 0 | 0 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 50,306 | 62,245 | ' | ' |
Mortgage loans held-for-sale | 8,727 | 14,238 | ' | ' |
Accrued interest receivable | 261 | 326 | ' | ' |
Derivative assets, net | ' | 0 | ' | ' |
Other Assets | 407 | 381 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | 0 | 0 | ' | ' |
Other Liabilities | -12 | -29 | ' | ' |
Maximum Exposure to Loss | 59,710 | 77,213 | ' | ' |
Total Assets of Non-Consolidated VIEs | 105,120 | 130,512 | ' | ' |
Other VIE | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 58 | 119 | ' | ' |
Investments in Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 | ' | ' |
Trading Securities, Debt | 0 | 0 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' | ' |
Mortgage loans held-for-investment | 0 | 0 | ' | ' |
Mortgage loans held-for-sale | 0 | 0 | ' | ' |
Accrued interest receivable | 7 | 7 | ' | ' |
Derivative assets, net | ' | 1 | ' | ' |
Other Assets | 477 | 482 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Derivative liabilities, net | -35 | -40 | ' | ' |
Other Liabilities | -558 | -635 | ' | ' |
Maximum Exposure to Loss | 10,415 | 10,871 | ' | ' |
Total Assets of Non-Consolidated VIEs | $23,707 | $25,004 | ' | ' |
Mortgage_Loans_and_Loan_Loss_R2
Mortgage Loans and Loan Loss Reserves (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' |
Percent of Single-Family Credit Guarantee portfolio with second lien financing by third parties at origination | 14.00% | 14.00% |
Pool insurance purchased since March 2008, single-family loans | $0 | ' |
Mortgage loan UPB covered by federal agency issued insurance or partial guarantee | 3,900,000,000 | 4,300,000,000 |
Unsecuritized | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' |
Allowance for loan losses as a percentage of recorded investment of mortgage loans, held for investment | 12.90% | 12.80% |
Held by consolidated trusts | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' |
Allowance for loan losses as a percentage of recorded investment of mortgage loans, held for investment | 0.20% | 0.30% |
Single Family Loan Product | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' |
Financing Receivable, Significant Purchases | 412,900,000,000 | 420,000,000,000 |
Multifamily Loan Product | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' |
Financing Receivable, Significant Purchases | 1,300,000,000 | 1,100,000,000 |
Financing Receivable, Significant Sales | $28,300,000,000 | $20,800,000,000 |
Mortgage_Loans_and_Loan_Loss_R3
Mortgage Loans and Loan Loss Reserves - Mortgage Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | $1,690,474 | $1,698,791 | ' |
Deferred fees, unamortized premiums, discounts and other cost basis adjustments | 18,928 | 17,997 | ' |
Fair value adjustments on loans held-for-sale | 6 | 266 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -24,618 | -30,707 | ' |
Total mortgage loans, net | 1,684,790 | 1,686,347 | ' |
Mortgage loans held-for-investment | 1,676,063 | 1,672,109 | ' |
Mortgage loans held-for-sale | 8,727 | 14,238 | ' |
Total mortgage loans, net | 1,684,790 | 1,686,347 | ' |
Single Family Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,630,859 | 1,621,774 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -24,493 | -30,367 | ' |
Mortgage loans held-for-investment | 1,625,314 | 1,609,417 | ' |
Single Family Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,522,740 | 1,498,410 | ' |
Single Family Loan Product | Fixed-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,516,438 | 1,487,091 | ' |
Single Family Loan Product | Fixed-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 6,302 | 11,319 | ' |
Single Family Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 95,781 | 108,610 | ' |
Single Family Loan Product | Adjustable-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 67,364 | 69,697 | ' |
Single Family Loan Product | Adjustable-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 28,417 | 38,913 | ' |
Single Family Loan Product | Other Guarantee Transactions | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 8,431 | 10,407 | ' |
Single Family Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 3,907 | 4,347 | ' |
Multifamily Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 59,615 | 77,017 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -125 | -340 | ' |
Mortgage loans held-for-investment | 50,749 | 62,692 | ' |
Multifamily Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 51,145 | 66,832 | ' |
Multifamily Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 8,467 | 10,182 | ' |
Multifamily Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 3 | 3 | ' |
Unsecuritized | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 181,308 | 221,313 | ' |
Deferred fees, unamortized premiums, discounts and other cost basis adjustments | -4,817 | -5,376 | ' |
Fair value adjustments on loans held-for-sale | 6 | 266 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -21,612 | -25,788 | -30,912 |
Total mortgage loans, net | 154,885 | 190,415 | ' |
Mortgage loans held-for-investment | 146,158 | 176,177 | ' |
Mortgage loans held-for-sale | 8,727 | 14,238 | ' |
Total mortgage loans, net | 154,885 | 190,415 | ' |
Unsecuritized | Single Family Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 122,137 | 144,744 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -21,487 | -25,449 | -30,406 |
Unsecuritized | Single Family Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 115,073 | 133,506 | ' |
Unsecuritized | Single Family Loan Product | Fixed-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 113,597 | 131,061 | ' |
Unsecuritized | Single Family Loan Product | Fixed-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,476 | 2,445 | ' |
Unsecuritized | Single Family Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 6,511 | 9,953 | ' |
Unsecuritized | Single Family Loan Product | Adjustable-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,935 | 2,630 | ' |
Unsecuritized | Single Family Loan Product | Adjustable-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 4,576 | 7,323 | ' |
Unsecuritized | Single Family Loan Product | Other Guarantee Transactions | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 0 | 0 | ' |
Unsecuritized | Single Family Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 553 | 1,285 | ' |
Unsecuritized | Multifamily Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 59,171 | 76,569 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -125 | -339 | -506 |
Unsecuritized | Multifamily Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 50,701 | 66,384 | ' |
Unsecuritized | Multifamily Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 8,467 | 10,182 | ' |
Unsecuritized | Multifamily Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 3 | 3 | ' |
Held by consolidated trusts | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,509,166 | 1,477,478 | ' |
Deferred fees, unamortized premiums, discounts and other cost basis adjustments | 23,745 | 23,373 | ' |
Fair value adjustments on loans held-for-sale | 0 | 0 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -3,006 | -4,919 | -8,351 |
Total mortgage loans, net | 1,529,905 | 1,495,932 | ' |
Mortgage loans held-for-investment | 1,529,905 | 1,495,932 | ' |
Mortgage loans held-for-sale | 0 | 0 | ' |
Total mortgage loans, net | 1,529,905 | 1,495,932 | ' |
Held by consolidated trusts | Single Family Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,508,722 | 1,477,030 | ' |
Allowance for loan losses on mortgage loans held-for-investment | -3,006 | -4,918 | -8,351 |
Held by consolidated trusts | Single Family Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,407,667 | 1,364,904 | ' |
Held by consolidated trusts | Single Family Loan Product | Fixed-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 1,402,841 | 1,356,030 | ' |
Held by consolidated trusts | Single Family Loan Product | Fixed-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 4,826 | 8,874 | ' |
Held by consolidated trusts | Single Family Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 89,270 | 98,657 | ' |
Held by consolidated trusts | Single Family Loan Product | Adjustable-rate amortizing | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 65,429 | 67,067 | ' |
Held by consolidated trusts | Single Family Loan Product | Adjustable-rate interest-only | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 23,841 | 31,590 | ' |
Held by consolidated trusts | Single Family Loan Product | Other Guarantee Transactions | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 8,431 | 10,407 | ' |
Held by consolidated trusts | Single Family Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 3,354 | 3,062 | ' |
Held by consolidated trusts | Multifamily Loan Product | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 444 | 448 | ' |
Allowance for loan losses on mortgage loans held-for-investment | 0 | -1 | 0 |
Held by consolidated trusts | Multifamily Loan Product | Fixed-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 444 | 448 | ' |
Held by consolidated trusts | Multifamily Loan Product | Adjustable-rate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | 0 | 0 | ' |
Held by consolidated trusts | Multifamily Loan Product | FHA/VA and other governmental | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ' | ' | ' |
UPB of Mortgage Loans | $0 | $0 | ' |
Mortgage_Loans_and_Loan_Loss_R4
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | $1,700,681,000,000 | $1,702,816,000,000 |
UPB for Single-family reduced interest rate provision | 43,800,000,000 | 43,400,000,000 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 1,213,110,000,000 | 1,196,533,000,000 |
Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 295,617,000,000 | 273,572,000,000 |
Single-family Adjustable-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 64,500,000,000 | 65,950,000,000 |
Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 76,580,000,000 | 103,729,000,000 |
Single Family Loan Product | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 1,649,807,000,000 | 1,639,784,000,000 |
Single-Family serious delinquency rate | 2.39% | 3.25% |
Multifamily Loan Product | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 50,874,000,000 | 63,032,000,000 |
Less Than Or Equal To 80 Loan To Value Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 819,509,000,000 | 699,386,000,000 |
Less Than Or Equal To 80 Loan To Value Ratio | Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 270,211,000,000 | 249,666,000,000 |
Less Than Or Equal To 80 Loan To Value Ratio | Single-family Adjustable-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 56,208,000,000 | 50,764,000,000 |
Less Than Or Equal To 80 Loan To Value Ratio | Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 29,927,000,000 | 27,642,000,000 |
Less Than Or Equal To 80 Loan To Value Ratio | Single Family Loan Product | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 1,175,855,000,000 | 1,027,458,000,000 |
Greater Than 80 Through 100 Loan To Value Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 269,110,000,000 | 309,099,000,000 |
Greater Than 80 Through 100 Loan To Value Ratio | Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 19,658,000,000 | 18,473,000,000 |
Greater Than 80 Through 100 Loan To Value Ratio | Single-family Adjustable-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 6,714,000,000 | 10,341,000,000 |
Greater Than 80 Through 100 Loan To Value Ratio | Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 21,564,000,000 | 24,030,000,000 |
Greater Than 80 Through 100 Loan To Value Ratio | Single Family Loan Product | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 317,046,000,000 | 361,943,000,000 |
Greater Than 100 Loan To Value Ratio | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Single-Family serious delinquency rate | 9.90% | 12.70% |
Greater Than 100 Loan To Value Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 124,491,000,000 | 188,048,000,000 |
Greater Than 100 Loan To Value Ratio | Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 5,748,000,000 | 5,433,000,000 |
Greater Than 100 Loan To Value Ratio | Single-family Adjustable-rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 1,578,000,000 | 4,845,000,000 |
Greater Than 100 Loan To Value Ratio | Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | 25,089,000,000 | 52,057,000,000 |
Greater Than 100 Loan To Value Ratio | Single Family Loan Product | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment in mortgage loans | $156,906,000,000 | $250,383,000,000 |
Mortgage_Loans_and_Loan_Loss_R5
Mortgage Loans and Loan Loss Reserves - Detail of Loan Loss Reserves (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | $30,707 | ' | ' |
Ending balance | 24,618 | 30,707 | ' |
Reserve For Guarantee Losses Rollforward | ' | ' | ' |
Beginning balance | 183 | 198 | ' |
(Benefit) provision for credit losses | -51 | 9 | ' |
Charge-offs | -10 | -13 | ' |
Recoveries | 0 | 2 | ' |
Transfers, net | -11 | -13 | ' |
Ending balance | 111 | 183 | 198 |
Rollforward of Total loan loss reserves | ' | ' | ' |
Beginning balance | 30,890 | 39,461 | ' |
(Benefit) provision for credit losses | -2,465 | 1,890 | 10,702 |
Charge-offs | -9,002 | -13,556 | ' |
Recoveries | 4,314 | 2,264 | ' |
Transfers, net | 992 | 831 | ' |
Ending balance | 24,729 | 30,890 | 39,461 |
Loan loss reserve as a percentage of the total mortgage portfolio | 1.37% | 1.71% | ' |
Losses on loans purchased and certain fair value losses excluded from charge offs | 252 | 308 | ' |
Reclassified reserves | ' | ' | ' |
Rollforward of Total loan loss reserves | ' | ' | ' |
Transfers, net | 3,400 | 7,800 | ' |
Capitalization of past due interest on modified loans | ' | ' | ' |
Rollforward of Total loan loss reserves | ' | ' | ' |
Transfers, net | 1,000 | 800 | ' |
Single Family Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 30,367 | ' | ' |
Ending balance | 24,493 | 30,367 | ' |
Reserve For Guarantee Losses Rollforward | ' | ' | ' |
Beginning balance | 141 | 159 | ' |
(Benefit) provision for credit losses | -42 | 0 | ' |
Charge-offs | -10 | -11 | ' |
Recoveries | 0 | 0 | ' |
Transfers, net | -4 | -7 | ' |
Ending balance | 85 | 141 | ' |
Rollforward of Total loan loss reserves | ' | ' | ' |
Beginning balance | 30,508 | 38,916 | ' |
(Benefit) provision for credit losses | -2,247 | 2,013 | ' |
Charge-offs | -8,995 | -13,520 | ' |
Recoveries | 4,313 | 2,262 | ' |
Transfers, net | 999 | 837 | ' |
Ending balance | 24,578 | 30,508 | ' |
Multifamily Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 340 | ' | ' |
Ending balance | 125 | 340 | ' |
Reserve For Guarantee Losses Rollforward | ' | ' | ' |
Beginning balance | 42 | 39 | ' |
(Benefit) provision for credit losses | -9 | 9 | ' |
Charge-offs | 0 | -2 | ' |
Recoveries | 0 | 2 | ' |
Transfers, net | -7 | -6 | ' |
Ending balance | 26 | 42 | ' |
Rollforward of Total loan loss reserves | ' | ' | ' |
Beginning balance | 382 | 545 | ' |
(Benefit) provision for credit losses | -218 | -123 | ' |
Charge-offs | -7 | -36 | ' |
Recoveries | 1 | 2 | ' |
Transfers, net | -7 | -6 | ' |
Ending balance | 151 | 382 | ' |
Unsecuritized | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 25,788 | 30,912 | ' |
(Benefit) provision for credit losses | -4,203 | -3,318 | ' |
Charge-offs | -8,188 | -12,593 | ' |
Recoveries | 3,811 | 2,136 | ' |
Transfers, net | 4,404 | 8,651 | ' |
Ending balance | 21,612 | 25,788 | ' |
Unsecuritized | Single Family Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 25,449 | 30,406 | ' |
(Benefit) provision for credit losses | -3,995 | -3,186 | ' |
Charge-offs | -8,181 | -12,559 | ' |
Recoveries | 3,810 | 2,136 | ' |
Transfers, net | 4,404 | 8,652 | ' |
Ending balance | 21,487 | 25,449 | ' |
Unsecuritized | Multifamily Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 339 | 506 | ' |
(Benefit) provision for credit losses | -208 | -132 | ' |
Charge-offs | -7 | -34 | ' |
Recoveries | 1 | 0 | ' |
Transfers, net | 0 | -1 | ' |
Ending balance | 125 | 339 | ' |
Held by consolidated trusts | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 4,919 | 8,351 | ' |
(Benefit) provision for credit losses | 1,789 | 5,199 | ' |
Charge-offs | -804 | -950 | ' |
Recoveries | 503 | 126 | ' |
Transfers, net | -3,401 | -7,807 | ' |
Ending balance | 3,006 | 4,919 | ' |
Held by consolidated trusts | Single Family Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 4,918 | 8,351 | ' |
(Benefit) provision for credit losses | 1,790 | 5,199 | ' |
Charge-offs | -804 | -950 | ' |
Recoveries | 503 | 126 | ' |
Transfers, net | -3,401 | -7,808 | ' |
Ending balance | 3,006 | 4,918 | ' |
Held by consolidated trusts | Multifamily Loan Product | ' | ' | ' |
Rollforward of loan loss reserves | ' | ' | ' |
Beginning balance | 1 | 0 | ' |
(Benefit) provision for credit losses | -1 | 0 | ' |
Charge-offs | 0 | 0 | ' |
Recoveries | 0 | 0 | ' |
Transfers, net | 0 | 1 | ' |
Ending balance | $0 | $1 | ' |
Mortgage_Loans_and_Loan_Loss_R6
Mortgage Loans and Loan Loss Reserves - Net Investment in Mortgage Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment, collectively evaluated | $1,601,265 | $1,611,329 |
Recorded investment, individually evaluated | 99,416 | 91,487 |
Total recorded investment | 1,700,681 | 1,702,816 |
Allowance for loan losses, collectively evaluated | -5,984 | -12,567 |
Allowance for loan losses, individually evaluated | -18,634 | -18,140 |
Allowance for loan losses | -24,618 | -30,707 |
Total held-for-investment mortgage loans, net | 1,676,063 | 1,672,109 |
Single Family Loan Product | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment, collectively evaluated | 1,551,667 | 1,550,493 |
Recorded investment, individually evaluated | 98,140 | 89,291 |
Total recorded investment | 1,649,807 | 1,639,784 |
Allowance for loan losses, collectively evaluated | -5,939 | -12,432 |
Allowance for loan losses, individually evaluated | -18,554 | -17,935 |
Allowance for loan losses | -24,493 | -30,367 |
Total held-for-investment mortgage loans, net | 1,625,314 | 1,609,417 |
Multifamily Loan Product | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment, collectively evaluated | 49,598 | 60,836 |
Recorded investment, individually evaluated | 1,276 | 2,196 |
Total recorded investment | 50,874 | 63,032 |
Allowance for loan losses, collectively evaluated | -45 | -135 |
Allowance for loan losses, individually evaluated | -80 | -205 |
Allowance for loan losses | -125 | -340 |
Total held-for-investment mortgage loans, net | $50,749 | $62,692 |
Mortgage_Loans_and_Loan_Loss_R7
Mortgage Loans and Loan Loss Reserves - Recourse and Other Forms of Credit Protection (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Excluded credit protected mortgage loans UPB underlying Other Guarantee Transactions | $11,500,000,000 | $13,800,000,000 |
Excluded credit protected mortgage loans UPB with primary mortgage insurance | 1,800,000,000 | 3,300,000,000 |
First loss percentage borne by Treasury | 35.00% | ' |
Single Family Loan Product | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 278,908,000,000 | 212,893,000,000 |
Credit protected maximum coverage - loans | 63,678,000,000 | 59,646,000,000 |
Single Family Loan Product | Primary Mortgage Insurance | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 203,470,000,000 | 188,419,000,000 |
Credit protected maximum coverage - loans | 50,823,000,000 | 46,685,000,000 |
Single Family Loan Product | Risk transfer transactions | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 56,903,000,000 | 0 |
Credit protected maximum coverage - loans | 1,183,000,000 | 0 |
Single Family Loan Product | Lender Recourse And Indemnification | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 7,119,000,000 | 7,875,000,000 |
Credit protected maximum coverage - loans | 6,726,000,000 | 7,718,000,000 |
Single Family Loan Product | Pool Insurance | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 4,683,000,000 | 7,307,000,000 |
Credit protected maximum coverage - loans | 1,186,000,000 | 1,355,000,000 |
Single Family Loan Product | HFA indemnification | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 4,051,000,000 | 6,270,000,000 |
Credit protected maximum coverage - loans | 3,323,000,000 | 3,323,000,000 |
Single Family Loan Product | Subordination | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 2,644,000,000 | 2,960,000,000 |
Credit protected maximum coverage - loans | 399,000,000 | 503,000,000 |
Single Family Loan Product | Other Credit Enhancements | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 38,000,000 | 62,000,000 |
Credit protected maximum coverage - loans | 38,000,000 | 62,000,000 |
Multifamily Loan Product | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 71,332,000,000 | 48,896,000,000 |
Credit protected maximum coverage - loans | 13,890,000,000 | 9,660,000,000 |
Multifamily Loan Product | K Certificates | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 59,326,000,000 | 36,732,000,000 |
Credit protected maximum coverage - loans | 10,601,000,000 | 6,256,000,000 |
Multifamily Loan Product | HFA indemnification | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 905,000,000 | 1,112,000,000 |
Credit protected maximum coverage - loans | 699,000,000 | 699,000,000 |
Multifamily Loan Product | Subordination | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 4,435,000,000 | 3,817,000,000 |
Credit protected maximum coverage - loans | 756,000,000 | 442,000,000 |
Multifamily Loan Product | Other Credit Enhancements | ' | ' |
Recourse And Other Forms Of Credit Protection [Line Items] | ' | ' |
Credit Protected Mortgage Loans UPB | 6,666,000,000 | 7,235,000,000 |
Credit protected maximum coverage - loans | $1,834,000,000 | $2,263,000,000 |
Individually_Impaired_and_NonP2
Individually Impaired and Non-Performing Loans - Individially Impaired Loans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | $104,202,000,000 | $97,126,000,000 | ' |
Recorded Investment | 99,416,000,000 | 91,487,000,000 | ' |
Associated Allowance | -18,634,000,000 | -18,140,000,000 | ' |
Net Investment | 80,782,000,000 | 73,347,000,000 | ' |
Average Recorded Investment | 94,803,000,000 | 77,886,000,000 | ' |
Interest Income Recognized | 3,130,000,000 | 2,540,000,000 | ' |
Interest Income Recognized On Cash Basis | 460,000,000 | 520,000,000 | ' |
Impaired Financing Receivable, Interest Income foregone | 2,700,000,000 | 2,300,000,000 | 1,600,000,000 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 5,927,000,000 | 6,582,000,000 | ' |
Recorded Investment, With No Related Allowance | 3,355,000,000 | 3,236,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 3,355,000,000 | 3,236,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 3,370,000,000 | 3,136,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 394,000,000 | 339,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 34,000,000 | 46,000,000 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 75,633,000,000 | 67,473,000,000 | ' |
Recorded Investment, With Related Allowance | 74,554,000,000 | 66,501,000,000 | ' |
Associated Allowance, With Related Allowance | -14,431,000,000 | -13,522,000,000 | ' |
Net Investment, With Related Allowance | 60,123,000,000 | 52,979,000,000 | ' |
Average Recorded Investment, With Related Allowance | 69,922,000,000 | 55,431,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 2,127,000,000 | 1,632,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 282,000,000 | 279,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 81,560,000,000 | 74,055,000,000 | ' |
Recorded Investment | 77,909,000,000 | 69,737,000,000 | ' |
Associated Allowance | -14,431,000,000 | -13,522,000,000 | ' |
Net Investment | 63,478,000,000 | 56,215,000,000 | ' |
Average Recorded Investment | 73,292,000,000 | 58,567,000,000 | ' |
Interest Income Recognized | 2,521,000,000 | 1,971,000,000 | ' |
Interest Income Recognized On Cash Basis | 316,000,000 | 325,000,000 | ' |
Single-family 15-year amortizing fixed-rate | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 62,000,000 | 64,000,000 | ' |
Recorded Investment, With No Related Allowance | 34,000,000 | 30,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 34,000,000 | 30,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 31,000,000 | 25,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 6,000,000 | 6,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 1,000,000 | 1,000,000 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 1,324,000,000 | 1,134,000,000 | ' |
Recorded Investment, With Related Allowance | 1,324,000,000 | 1,125,000,000 | ' |
Associated Allowance, With Related Allowance | -43,000,000 | -55,000,000 | ' |
Net Investment, With Related Allowance | 1,281,000,000 | 1,070,000,000 | ' |
Average Recorded Investment, With Related Allowance | 1,109,000,000 | 714,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 50,000,000 | 31,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 11,000,000 | 8,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 1,386,000,000 | 1,198,000,000 | ' |
Recorded Investment | 1,358,000,000 | 1,155,000,000 | ' |
Associated Allowance | -43,000,000 | -55,000,000 | ' |
Net Investment | 1,315,000,000 | 1,100,000,000 | ' |
Average Recorded Investment | 1,140,000,000 | 739,000,000 | ' |
Interest Income Recognized | 56,000,000 | 37,000,000 | ' |
Interest Income Recognized On Cash Basis | 12,000,000 | 9,000,000 | ' |
Single-family Adjustable-rate | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 19,000,000 | 19,000,000 | ' |
Recorded Investment, With No Related Allowance | 13,000,000 | 12,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 13,000,000 | 12,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 13,000,000 | 7,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 1,000,000 | 0 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 0 | 0 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 967,000,000 | 883,000,000 | ' |
Recorded Investment, With Related Allowance | 962,000,000 | 874,000,000 | ' |
Associated Allowance, With Related Allowance | -84,000,000 | -107,000,000 | ' |
Net Investment, With Related Allowance | 878,000,000 | 767,000,000 | ' |
Average Recorded Investment, With Related Allowance | 855,000,000 | 558,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 22,000,000 | 14,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 6,000,000 | 5,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 986,000,000 | 902,000,000 | ' |
Recorded Investment | 975,000,000 | 886,000,000 | ' |
Associated Allowance | -84,000,000 | -107,000,000 | ' |
Net Investment | 891,000,000 | 779,000,000 | ' |
Average Recorded Investment | 868,000,000 | 565,000,000 | ' |
Interest Income Recognized | 23,000,000 | 14,000,000 | ' |
Interest Income Recognized On Cash Basis | 6,000,000 | 5,000,000 | ' |
Single-family Alt-A, interest-only, and option ARM | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 1,758,000,000 | 1,799,000,000 | ' |
Recorded Investment, With No Related Allowance | 1,038,000,000 | 857,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 1,038,000,000 | 857,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 978,000,000 | 847,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 72,000,000 | 63,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 6,000,000 | 11,000,000 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 17,210,000,000 | 16,946,000,000 | ' |
Recorded Investment, With Related Allowance | 16,860,000,000 | 16,656,000,000 | ' |
Associated Allowance, With Related Allowance | -3,996,000,000 | -4,251,000,000 | ' |
Net Investment, With Related Allowance | 12,864,000,000 | 12,405,000,000 | ' |
Average Recorded Investment, With Related Allowance | 16,526,000,000 | 14,278,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 369,000,000 | 326,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 69,000,000 | 82,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 18,968,000,000 | 18,745,000,000 | ' |
Recorded Investment | 17,898,000,000 | 17,513,000,000 | ' |
Associated Allowance | -3,996,000,000 | -4,251,000,000 | ' |
Net Investment | 13,902,000,000 | 13,262,000,000 | ' |
Average Recorded Investment | 17,504,000,000 | 15,125,000,000 | ' |
Interest Income Recognized | 441,000,000 | 389,000,000 | ' |
Interest Income Recognized On Cash Basis | 75,000,000 | 93,000,000 | ' |
Single Family Loan Product | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 7,766,000,000 | 8,464,000,000 | ' |
Recorded Investment, With No Related Allowance | 4,440,000,000 | 4,135,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 4,440,000,000 | 4,135,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 4,392,000,000 | 4,015,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 473,000,000 | 408,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 41,000,000 | 58,000,000 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 95,134,000,000 | 86,436,000,000 | ' |
Recorded Investment, With Related Allowance | 93,700,000,000 | 85,156,000,000 | ' |
Associated Allowance, With Related Allowance | -18,554,000,000 | -17,935,000,000 | ' |
Net Investment, With Related Allowance | 75,146,000,000 | 67,221,000,000 | ' |
Average Recorded Investment, With Related Allowance | 88,412,000,000 | 70,981,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 2,568,000,000 | 2,003,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 368,000,000 | 374,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 102,900,000,000 | 94,900,000,000 | ' |
Recorded Investment | 98,140,000,000 | 89,291,000,000 | ' |
Associated Allowance | -18,554,000,000 | -17,935,000,000 | ' |
Net Investment | 79,586,000,000 | 71,356,000,000 | ' |
Average Recorded Investment | 92,804,000,000 | 74,996,000,000 | ' |
Interest Income Recognized | 3,041,000,000 | 2,411,000,000 | ' |
Interest Income Recognized On Cash Basis | 409,000,000 | 432,000,000 | ' |
Multifamily Loan Product | ' | ' | ' |
With no specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With No Related Allowance | 694,000,000 | 978,000,000 | ' |
Recorded Investment, With No Related Allowance | 681,000,000 | 966,000,000 | ' |
Associated Allowance, With No Related Allowance | 0 | 0 | ' |
Net Investment, With No Related Allowance | 681,000,000 | 966,000,000 | ' |
Average Recorded Investment, With No Related Allowance | 1,108,000,000 | 1,420,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Accrual Method | 48,000,000 | 61,000,000 | ' |
Interest Income Recognized, With No Related Allowance, Cash Basis Method | 20,000,000 | 37,000,000 | ' |
With specific allowance recorded [Abstract] | ' | ' | ' |
UPB, With Related Allowance | 608,000,000 | 1,248,000,000 | ' |
Recorded Investment, With Related Allowance | 595,000,000 | 1,230,000,000 | ' |
Associated Allowance, With Related Allowance | -80,000,000 | -205,000,000 | ' |
Net Investment, With Related Allowance | 515,000,000 | 1,025,000,000 | ' |
Average Recorded Investment, With Related Allowance | 891,000,000 | 1,470,000,000 | ' |
Interest Income Recognized, With Related Allowance, Accrual Method | 41,000,000 | 68,000,000 | ' |
Interest Income Recognized, With Related Allowance, Cash Basis Method | 31,000,000 | 51,000,000 | ' |
Individually Impaired Mortgage Loans [Abstract] | ' | ' | ' |
UPB | 1,302,000,000 | 2,226,000,000 | ' |
Recorded Investment | 1,276,000,000 | 2,196,000,000 | ' |
Associated Allowance | -80,000,000 | -205,000,000 | ' |
Net Investment | 1,196,000,000 | 1,991,000,000 | ' |
Average Recorded Investment | 1,999,000,000 | 2,890,000,000 | ' |
Interest Income Recognized | 89,000,000 | 129,000,000 | ' |
Interest Income Recognized On Cash Basis | $51,000,000 | $88,000,000 | ' |
Individually_Impaired_and_NonP3
Individually Impaired and Non-Performing Loans - Payment Status of Mortgage Loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | $1,626,513,000,000 | $1,605,900,000,000 |
One Month Past Due | 24,332,000,000 | 26,882,000,000 |
Two Months Past Due | 8,271,000,000 | 10,185,000,000 |
Three Months or More Past Due, or in Foreclosure | 41,565,000,000 | 59,849,000,000 |
Total recorded investment | 1,700,681,000,000 | 1,702,816,000,000 |
Non-Accrual Mortgage Loans | 42,143,000,000 | 61,087,000,000 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 1,157,057,000,000 | 1,125,996,000,000 |
One Month Past Due | 19,743,000,000 | 21,509,000,000 |
Two Months Past Due | 6,675,000,000 | 8,051,000,000 |
Three Months or More Past Due, or in Foreclosure | 29,635,000,000 | 40,977,000,000 |
Total recorded investment | 1,213,110,000,000 | 1,196,533,000,000 |
Non-Accrual Mortgage Loans | 29,620,000,000 | 40,833,000,000 |
Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 293,286,000,000 | 270,730,000,000 |
One Month Past Due | 1,196,000,000 | 1,320,000,000 |
Two Months Past Due | 271,000,000 | 338,000,000 |
Three Months or More Past Due, or in Foreclosure | 864,000,000 | 1,184,000,000 |
Total recorded investment | 295,617,000,000 | 273,572,000,000 |
Non-Accrual Mortgage Loans | 863,000,000 | 1,177,000,000 |
Single-family Adjustable-rate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 62,987,000,000 | 63,736,000,000 |
One Month Past Due | 495,000,000 | 614,000,000 |
Two Months Past Due | 147,000,000 | 212,000,000 |
Three Months or More Past Due, or in Foreclosure | 871,000,000 | 1,388,000,000 |
Total recorded investment | 64,500,000,000 | 65,950,000,000 |
Non-Accrual Mortgage Loans | 871,000,000 | 1,383,000,000 |
Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 62,356,000,000 | 82,438,000,000 |
One Month Past Due | 2,898,000,000 | 3,439,000,000 |
Two Months Past Due | 1,157,000,000 | 1,582,000,000 |
Three Months or More Past Due, or in Foreclosure | 10,169,000,000 | 16,270,000,000 |
Total recorded investment | 76,580,000,000 | 103,729,000,000 |
Non-Accrual Mortgage Loans | 10,162,000,000 | 16,237,000,000 |
Single Family Loan Product | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 1,575,686,000,000 | 1,542,900,000,000 |
One Month Past Due | 24,332,000,000 | 26,882,000,000 |
Two Months Past Due | 8,250,000,000 | 10,183,000,000 |
Three Months or More Past Due, or in Foreclosure | 41,539,000,000 | 59,819,000,000 |
Total recorded investment | 1,649,807,000,000 | 1,639,784,000,000 |
Non-Accrual Mortgage Loans | 41,516,000,000 | 59,630,000,000 |
SF UPB not removed from Consolidated Trust for loans 120 days or more delinquent | 1,100,000,000 | ' |
SF UPB removed from Consolidated Trust | 18,200,000,000 | 29,600,000,000 |
Multifamily Loan Product | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 50,827,000,000 | 63,000,000,000 |
One Month Past Due | 0 | 0 |
Two Months Past Due | 21,000,000 | 2,000,000 |
Three Months or More Past Due, or in Foreclosure | 26,000,000 | 30,000,000 |
Total recorded investment | 50,874,000,000 | 63,032,000,000 |
Non-Accrual Mortgage Loans | $627,000,000 | $1,457,000,000 |
Individually_Impaired_and_NonP4
Individually Impaired and Non-Performing Loans - Delinquency Rates (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | numberofloans | numberofloans |
Single Family Loan Product | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Single-Family serious delinquency rate | 2.39% | 3.25% |
Single-family seriously delinquent mortgage loans, count of contracts | 255,325 | 352,860 |
Single Family Loan Product | Non-credit-enhanced loans | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Single-Family serious delinquency rate | 1.99% | 2.62% |
Single-family seriously delinquent mortgage loans, count of contracts | 183,822 | 244,533 |
Single Family Loan Product | Credit-enhanced loans | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Single-Family serious delinquency rate | 4.34% | 6.83% |
Single-family seriously delinquent mortgage loans, count of contracts | 56,794 | 90,747 |
Single Family Loan Product | Other Guarantee Transactions | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Single-Family serious delinquency rate | 10.91% | 10.60% |
Single-family seriously delinquent mortgage loans, count of contracts | 14,709 | 17,580 |
Multifamily Loan Product | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Multifamily Delinquency Rate | 0.09% | 0.19% |
Mortgage loans on Real Estate, principal amount of delinquent loans | 121 | 248 |
Multifamily Loan Product | Non-credit-enhanced loans | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Multifamily Delinquency Rate | 0.07% | 0.10% |
Mortgage loans on Real Estate, principal amount of delinquent loans | 46 | 76 |
Multifamily Loan Product | Credit-enhanced loans | ' | ' |
Delinquent Mortgage Loan Attributes [Line Items] | ' | ' |
Multifamily Delinquency Rate | 0.11% | 0.36% |
Mortgage loans on Real Estate, principal amount of delinquent loans | 75 | 172 |
Individually_Impaired_and_NonP5
Individually Impaired and Non-Performing Loans - TDR Activity, By Segment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
numberofcontracts | numberofcontracts | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 134,591 | 237,007 |
Post TDR Recorded Investments | $21,452,000,000 | $37,265,000,000 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 101,538 | 177,930 |
Post TDR Recorded Investments | 16,014,000,000 | 27,076,000,000 |
Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 11,671 | 17,549 |
Post TDR Recorded Investments | 825,000,000 | 1,176,000,000 |
Single-family Adjustable-rate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 3,604 | 6,496 |
Post TDR Recorded Investments | 574,000,000 | 977,000,000 |
Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 17,770 | 35,012 |
Post TDR Recorded Investments | 3,941,000,000 | 7,834,000,000 |
Single Family Loan Product | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 134,583 | 236,987 |
Post TDR Recorded Investments | 21,354,000,000 | 37,063,000,000 |
Pre-TDR Recorded Investments | 21,200,000,000 | 37,000,000,000 |
Interest rate reduction and term extension types, percentage of completed modifications | 56.00% | ' |
Principal forebearance and interest rate reductions and term extension types, percentage of completed modifications | 36.00% | ' |
Average term extension, number of months of completed modifications | '161 months | ' |
Average interest rate reduction, percentage of completed modifications | 2.20% | ' |
Multifamily Loan Product | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans | 8 | 20 |
Post TDR Recorded Investments | $98,000,000 | $202,000,000 |
Individually_Impaired_and_NonP6
Individually Impaired and Non-Performing Loans - Payment Defaults of Completed TDR Modifications, by Segment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
numberofcontracts | numberofcontracts | |
Single-family 20 and 30-year or more, amortizing fixed-rate | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 14,964 | 15,718 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $2,766,000,000 | $2,905,000,000 |
Single-family 15-year amortizing fixed-rate | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 471 | 716 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | 52,000,000 | 73,000,000 |
Single-family Adjustable-rate | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 237 | 331 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | 50,000,000 | 71,000,000 |
Single-family Alt-A, interest-only, and option ARM | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 2,256 | 3,042 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | 587,000,000 | 805,000,000 |
Single Family Loan Product | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 17,928 | 19,807 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | 3,455,000,000 | 3,854,000,000 |
Financing Receivable, Other Loss Mitigation Activities, Subsequent Default, Number Of Contracts | 8,473 | 5,220 |
Financing Receivable, Other Loss Mitigation Activities, Subsequent Default, Recorded Investment | 1,400,000,000 | 900,000,000 |
Multifamily Loan Product | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 0 | 6 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | 0 | 82,000,000 |
Loans Discharged From Chapter 7 Bankruptcy | ' | ' |
Financing Receivable, Modifications and Other Loss Mitigation Activities | ' | ' |
Number of Loans, Modifications, Subsequent Default | 17,225 | 9,390 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $2,800,000,000 | $1,500,000,000 |
Real_Estate_Owned_Details
Real Estate Owned (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Real Estate Acquired Through Foreclosure Data [Line Items] | ' | ' | ' |
Real estate owned, net | $4,551,000,000 | $4,378,000,000 | $5,680,000,000 |
Gain (Loss) on disposition of REO, net | 761,000,000 | 693,000,000 | -165,000,000 |
Increase (Decrease) in REO valuation allowance, inventory | 58,000,000 | -7,000,000 | 304,000,000 |
REO acquired in non-cash transfer | 6,100,000,000 | 6,800,000,000 | 8,700,000,000 |
Single Family | ' | ' | ' |
Real Estate Acquired Through Foreclosure Data [Line Items] | ' | ' | ' |
Real estate owned, net | 4,500,000,000 | 4,300,000,000 | ' |
REO, number of properties | 47,307 | 49,071 | ' |
Single Family | Southeast | ' | ' | ' |
Real Estate Acquired Through Foreclosure Data [Line Items] | ' | ' | ' |
Single-Family REO, percentage of additions | 34.00% | 29.00% | ' |
Single Family | North Central | ' | ' | ' |
Real Estate Acquired Through Foreclosure Data [Line Items] | ' | ' | ' |
Single-Family REO, percentage of additions | 29.00% | 33.00% | ' |
Multifamily | ' | ' | ' |
Real Estate Acquired Through Foreclosure Data [Line Items] | ' | ' | ' |
Real estate owned, net | $10,000,000 | $64,000,000 | ' |
Real_Estate_Owned_REO_Details
Real Estate Owned - REO (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REO | ' | ' | ' |
Beginning balance - REO | $4,407 | $5,827 | $7,368 |
Additions | 6,498 | 7,029 | 8,970 |
Dispositions | -6,303 | -8,449 | -10,511 |
Ending balance - REO | 4,602 | 4,407 | 5,827 |
REO, valuation allowance | ' | ' | ' |
Beginning balance, valuation allowance | -29 | -147 | -300 |
Change in valuation allowance | -22 | 118 | 153 |
Ending balance, valuation allowance | -51 | -29 | -147 |
Ending Balance | $4,551 | $4,378 | $5,680 |
Investments_in_Securities_Deta
Investments in Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
numberofsecurities | |||
numberoflots | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Total Gross Unrealized Losses | $3,899,000,000 | $12,384,000,000 | ' |
Individual lots in gross unrealized loss position | 994 | ' | ' |
Separate securities in gross unrealized loss position | 956 | ' | ' |
Net unrealized gains (losses) on trading securities held at balance sheets date | ($1,600,000,000) | ($1,700,000,000) | ($1,000,000,000) |
Investments_in_Securities_Avai
Investments in Securities - Available-For-Sale Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $127,439 | $177,118 |
Gross Unrealized Gains | 5,379 | 10,162 |
Gross Unrealized Losses | -3,899 | -12,384 |
Fair Value | 128,919 | 174,896 |
Freddie Mac | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 39,001 | 53,965 |
Gross Unrealized Gains | 1,847 | 4,602 |
Gross Unrealized Losses | -189 | -52 |
Fair Value | 40,659 | 58,515 |
Fannie Mae | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 10,140 | 14,183 |
Gross Unrealized Gains | 660 | 1,099 |
Gross Unrealized Losses | -3 | -2 |
Fair Value | 10,797 | 15,280 |
Ginnie Mae | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 149 | 183 |
Gross Unrealized Gains | 18 | 26 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 167 | 209 |
CMBS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 29,151 | 47,606 |
Gross Unrealized Gains | 1,524 | 3,882 |
Gross Unrealized Losses | -337 | -181 |
Fair Value | 30,338 | 51,307 |
Subprime | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 29,897 | 35,503 |
Gross Unrealized Gains | 382 | 83 |
Gross Unrealized Losses | -2,780 | -9,129 |
Fair Value | 27,499 | 26,457 |
Option ARM | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 6,617 | 7,454 |
Gross Unrealized Gains | 338 | 48 |
Gross Unrealized Losses | -381 | -1,785 |
Fair Value | 6,574 | 5,717 |
Alt-A and other | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 8,322 | 11,861 |
Gross Unrealized Gains | 526 | 244 |
Gross Unrealized Losses | -142 | -1,201 |
Fair Value | 8,706 | 10,904 |
Obligations of states and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 3,533 | 5,647 |
Gross Unrealized Gains | 23 | 154 |
Gross Unrealized Losses | -61 | -3 |
Fair Value | 3,495 | 5,798 |
Manufactured housing | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 629 | 716 |
Gross Unrealized Gains | 61 | 24 |
Gross Unrealized Losses | -6 | -31 |
Fair Value | $684 | $709 |
Investments_in_Securities_Avai1
Investments in Securities - Available-For-Sale Securities in a Gross Unrealized Loss Position (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | $12,048 | $2,834 |
12 Months or Greater Fair Value | 26,314 | 44,415 |
Total Fair Value | 38,362 | 47,249 |
Less than 12 Months Gross Unrealized Losses | -313 | -59 |
12 Months or Greater Gross Unrealized Losses | -3,586 | -12,325 |
Total Gross Unrealized Losses | -3,899 | -12,384 |
Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -40 | -30 |
12 Months or Greater Gross Unrealized Losses | -2,955 | -10,598 |
Total Gross Unrealized Losses | -2,995 | -10,628 |
Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -273 | -29 |
12 Months or Greater Gross Unrealized Losses | -631 | -1,727 |
Total Gross Unrealized Losses | -904 | -1,756 |
Freddie Mac | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 7,957 | 1,811 |
12 Months or Greater Fair Value | 649 | 1,872 |
Total Fair Value | 8,606 | 3,683 |
Less than 12 Months Gross Unrealized Losses | -144 | -25 |
12 Months or Greater Gross Unrealized Losses | -45 | -27 |
Total Gross Unrealized Losses | -189 | -52 |
Freddie Mac | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | 0 | 0 |
Total Gross Unrealized Losses | 0 | 0 |
Freddie Mac | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -144 | -25 |
12 Months or Greater Gross Unrealized Losses | -45 | -27 |
Total Gross Unrealized Losses | -189 | -52 |
Fannie Mae | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 248 | 170 |
12 Months or Greater Fair Value | 19 | 55 |
Total Fair Value | 267 | 225 |
Less than 12 Months Gross Unrealized Losses | -2 | 0 |
12 Months or Greater Gross Unrealized Losses | -1 | -2 |
Total Gross Unrealized Losses | -3 | -2 |
Fannie Mae | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | 0 | 0 |
Total Gross Unrealized Losses | 0 | 0 |
Fannie Mae | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -2 | 0 |
12 Months or Greater Gross Unrealized Losses | -1 | -2 |
Total Gross Unrealized Losses | -3 | -2 |
CMBS | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,147 | 340 |
12 Months or Greater Fair Value | 1,992 | 3,425 |
Total Fair Value | 3,139 | 3,765 |
Less than 12 Months Gross Unrealized Losses | -85 | -3 |
12 Months or Greater Gross Unrealized Losses | -252 | -178 |
Total Gross Unrealized Losses | -337 | -181 |
CMBS | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -7 | 0 |
12 Months or Greater Gross Unrealized Losses | -16 | -22 |
Total Gross Unrealized Losses | -23 | -22 |
CMBS | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -78 | -3 |
12 Months or Greater Gross Unrealized Losses | -236 | -156 |
Total Gross Unrealized Losses | -314 | -159 |
Subprime | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 472 | 298 |
12 Months or Greater Fair Value | 19,103 | 25,676 |
Total Fair Value | 19,575 | 25,974 |
Less than 12 Months Gross Unrealized Losses | -19 | -23 |
12 Months or Greater Gross Unrealized Losses | -2,761 | -9,106 |
Total Gross Unrealized Losses | -2,780 | -9,129 |
Subprime | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -19 | -23 |
12 Months or Greater Gross Unrealized Losses | -2,448 | -7,830 |
Total Gross Unrealized Losses | -2,467 | -7,853 |
Subprime | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -313 | -1,276 |
Total Gross Unrealized Losses | -313 | -1,276 |
Option ARM | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 77 | 82 |
12 Months or Greater Fair Value | 2,608 | 5,182 |
Total Fair Value | 2,685 | 5,264 |
Less than 12 Months Gross Unrealized Losses | -2 | -3 |
12 Months or Greater Gross Unrealized Losses | -379 | -1,782 |
Total Gross Unrealized Losses | -381 | -1,785 |
Option ARM | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -2 | -3 |
12 Months or Greater Gross Unrealized Losses | -374 | -1,759 |
Total Gross Unrealized Losses | -376 | -1,762 |
Option ARM | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -5 | -23 |
Total Gross Unrealized Losses | -5 | -23 |
Alt-A and other | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 262 | 50 |
12 Months or Greater Fair Value | 1,854 | 7,938 |
Total Fair Value | 2,116 | 7,988 |
Less than 12 Months Gross Unrealized Losses | -5 | -4 |
12 Months or Greater Gross Unrealized Losses | -137 | -1,197 |
Total Gross Unrealized Losses | -142 | -1,201 |
Alt-A and other | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -5 | -4 |
12 Months or Greater Gross Unrealized Losses | -113 | -961 |
Total Gross Unrealized Losses | -118 | -965 |
Alt-A and other | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -24 | -236 |
Total Gross Unrealized Losses | -24 | -236 |
Obligations of states and political subdivisions | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,885 | 37 |
12 Months or Greater Fair Value | 24 | 45 |
Total Fair Value | 1,909 | 82 |
Less than 12 Months Gross Unrealized Losses | -56 | -1 |
12 Months or Greater Gross Unrealized Losses | -5 | -2 |
Total Gross Unrealized Losses | -61 | -3 |
Obligations of states and political subdivisions | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -7 | 0 |
12 Months or Greater Gross Unrealized Losses | 0 | 0 |
Total Gross Unrealized Losses | -7 | 0 |
Obligations of states and political subdivisions | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | -49 | -1 |
12 Months or Greater Gross Unrealized Losses | -5 | -2 |
Total Gross Unrealized Losses | -54 | -3 |
Manufactured housing | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Fair Value | 0 | 46 |
12 Months or Greater Fair Value | 65 | 222 |
Total Fair Value | 65 | 268 |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -6 | -31 |
Total Gross Unrealized Losses | -6 | -31 |
Manufactured housing | Other-than-temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -4 | -26 |
Total Gross Unrealized Losses | -4 | -26 |
Manufactured housing | Temporary impairment | ' | ' |
Available For Sale Securities With Gross Unrealized Losses [Line Items] | ' | ' |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Gross Unrealized Losses | -2 | -5 |
Total Gross Unrealized Losses | ($2) | ($5) |
Investments_in_Securities_Sign
Investments in Securities - Significant Modeled Attributes for Certain Available-For-Sale Non-Agency Mortgage-Related Securities (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Subprime First Lien | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | $39,417 |
Weighted Average Collateral Defaults | 52.00% |
Weighted Average Collateral Severities | 61.00% |
Weighted Average Voluntary Prepayment Rates | 2.00% |
Average Credit Enhancement | 9.00% |
Option ARM | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 10,426 |
Weighted Average Collateral Defaults | 42.00% |
Weighted Average Collateral Severities | 52.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | 0.00% |
Alt-A Fixed Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 1,747 |
Weighted Average Collateral Defaults | 22.00% |
Weighted Average Collateral Severities | 47.00% |
Weighted Average Voluntary Prepayment Rates | 9.00% |
Average Credit Enhancement | 4.00% |
Alt-A Variable Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 2,858 |
Weighted Average Collateral Defaults | 43.00% |
Weighted Average Collateral Severities | 51.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | -4.00% |
Alt-A Hybrid Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 4,542 |
Weighted Average Collateral Defaults | 25.00% |
Weighted Average Collateral Severities | 41.00% |
Weighted Average Voluntary Prepayment Rates | 9.00% |
Average Credit Enhancement | 1.00% |
2004 and prior | Subprime First Lien | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 896 |
Weighted Average Collateral Defaults | 37.00% |
Weighted Average Collateral Severities | 58.00% |
Weighted Average Voluntary Prepayment Rates | 7.00% |
Average Credit Enhancement | 38.00% |
2004 and prior | Option ARM | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 49 |
Weighted Average Collateral Defaults | 23.00% |
Weighted Average Collateral Severities | 46.00% |
Weighted Average Voluntary Prepayment Rates | 8.00% |
Average Credit Enhancement | 4.00% |
2004 and prior | Alt-A Fixed Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 498 |
Weighted Average Collateral Defaults | 13.00% |
Weighted Average Collateral Severities | 47.00% |
Weighted Average Voluntary Prepayment Rates | 11.00% |
Average Credit Enhancement | 15.00% |
2004 and prior | Alt-A Variable Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 336 |
Weighted Average Collateral Defaults | 31.00% |
Weighted Average Collateral Severities | 43.00% |
Weighted Average Voluntary Prepayment Rates | 7.00% |
Average Credit Enhancement | 15.00% |
2004 and prior | Alt-A Hybrid Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 342 |
Weighted Average Collateral Defaults | 19.00% |
Weighted Average Collateral Severities | 37.00% |
Weighted Average Voluntary Prepayment Rates | 8.00% |
Average Credit Enhancement | 12.00% |
2005 | Subprime First Lien | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 3,687 |
Weighted Average Collateral Defaults | 46.00% |
Weighted Average Collateral Severities | 60.00% |
Weighted Average Voluntary Prepayment Rates | 4.00% |
Average Credit Enhancement | 46.00% |
2005 | Option ARM | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 2,221 |
Weighted Average Collateral Defaults | 34.00% |
Weighted Average Collateral Severities | 51.00% |
Weighted Average Voluntary Prepayment Rates | 7.00% |
Average Credit Enhancement | 3.00% |
2005 | Alt-A Fixed Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 714 |
Weighted Average Collateral Defaults | 20.00% |
Weighted Average Collateral Severities | 46.00% |
Weighted Average Voluntary Prepayment Rates | 9.00% |
Average Credit Enhancement | 0.00% |
2005 | Alt-A Variable Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 591 |
Weighted Average Collateral Defaults | 40.00% |
Weighted Average Collateral Severities | 48.00% |
Weighted Average Voluntary Prepayment Rates | 7.00% |
Average Credit Enhancement | 21.00% |
2005 | Alt-A Hybrid Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 3,068 |
Weighted Average Collateral Defaults | 24.00% |
Weighted Average Collateral Severities | 41.00% |
Weighted Average Voluntary Prepayment Rates | 9.00% |
Average Credit Enhancement | 2.00% |
2006 | Subprime First Lien | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 16,547 |
Weighted Average Collateral Defaults | 54.00% |
Weighted Average Collateral Severities | 61.00% |
Weighted Average Voluntary Prepayment Rates | 2.00% |
Average Credit Enhancement | 5.00% |
2006 | Option ARM | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 4,870 |
Weighted Average Collateral Defaults | 44.00% |
Weighted Average Collateral Severities | 53.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | -5.00% |
2006 | Alt-A Fixed Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 397 |
Weighted Average Collateral Defaults | 28.00% |
Weighted Average Collateral Severities | 47.00% |
Weighted Average Voluntary Prepayment Rates | 8.00% |
Average Credit Enhancement | 0.00% |
2006 | Alt-A Variable Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 846 |
Weighted Average Collateral Defaults | 47.00% |
Weighted Average Collateral Severities | 53.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | -9.00% |
2006 | Alt-A Hybrid Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 907 |
Weighted Average Collateral Defaults | 26.00% |
Weighted Average Collateral Severities | 40.00% |
Weighted Average Voluntary Prepayment Rates | 10.00% |
Average Credit Enhancement | -3.00% |
2007 | Subprime First Lien | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 18,287 |
Weighted Average Collateral Defaults | 53.00% |
Weighted Average Collateral Severities | 61.00% |
Weighted Average Voluntary Prepayment Rates | 2.00% |
Average Credit Enhancement | 4.00% |
2007 | Option ARM | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 3,286 |
Weighted Average Collateral Defaults | 44.00% |
Weighted Average Collateral Severities | 52.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | 4.00% |
2007 | Alt-A Fixed Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 138 |
Weighted Average Collateral Defaults | 47.00% |
Weighted Average Collateral Severities | 52.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | -1.00% |
2007 | Alt-A Variable Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | 1,085 |
Weighted Average Collateral Defaults | 46.00% |
Weighted Average Collateral Severities | 52.00% |
Weighted Average Voluntary Prepayment Rates | 6.00% |
Average Credit Enhancement | -20.00% |
2007 | Alt-A Hybrid Rate | ' |
Significant Modeled Attributes For Certain Available-For-Sale Non-Agency Mortgage-Related Securities [Line Items] | ' |
UPB | $225 |
Weighted Average Collateral Defaults | 43.00% |
Weighted Average Collateral Severities | 48.00% |
Weighted Average Voluntary Prepayment Rates | 7.00% |
Average Credit Enhancement | 0.00% |
Investments_in_Securities_Net_
Investments in Securities - Net Impairment of Available-For-Sale Securities Recognized in Earnings (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | ($1,510) | ($2,168) | ($2,301) |
Net impairment charge in earnings due to change from intent to keep to sell | 568 | 0 | 181 |
CMBS | ' | ' | ' |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | -14 | -138 | -353 |
Subprime | ' | ' | ' |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | -1,258 | -1,274 | -1,315 |
Option ARM | ' | ' | ' |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | -58 | -556 | -424 |
Alt-A and other | ' | ' | ' |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | -179 | -196 | -198 |
Manufactured housing | ' | ' | ' |
Net Impairment Of Available-For-Sale Securities Recognized In Earnings [Line Items] | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | ($1) | ($4) | ($11) |
Investments_in_Securities_Othe
Investments in Securities - Other-Than-Temporary Impairments Related to Credit Losses on Available-For-Sale Securities (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Credit-related other-than-temporary impairments on available-for-sale securities recognized in earnings: | ' | ' |
Beginning balance - remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings | $16,745 | $15,988 |
Amounts related to credit losses for which an other-than-temporary impairment was not previously recognized | 46 | 141 |
Amounts related to credit losses for which an other-than-temporary impairment was previously recognized | 896 | 2,027 |
Amounts related to securities which were sold, written off or matured | -1,193 | -1,289 |
Amounts for which we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis | -1,536 | -15 |
Amounts related to amortization resulting from significant increases in cash flows expected to be collected and/or due to the passage of time that are recognized over the remaining life of the security | -495 | -107 |
Ending balance - remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized in earnings | $14,463 | $16,745 |
Investments_in_Securities_Gros
Investments in Securities - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | $1,950 | $152 | $139 |
Gross realized losses | -51 | 0 | -81 |
Net realized gains (losses) | 1,899 | 152 | 58 |
Mortage-related securities | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 1,950 | 152 | 139 |
Gross realized losses | -51 | 0 | -81 |
Freddie Mac | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 547 | 34 | 77 |
Gross realized losses | -25 | 0 | 0 |
Fannie Mae | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 17 | 14 | 14 |
CMBS | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 1,301 | 82 | 37 |
Gross realized losses | 0 | 0 | -81 |
Option ARM | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 1 | 3 | 0 |
Gross realized losses | -4 | 0 | 0 |
Alt-A and other | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 70 | 0 | 0 |
Gross realized losses | -19 | 0 | 0 |
Obligations of states and political subdivisions | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 13 | 19 | 11 |
Subprime | ' | ' | ' |
Gross Realized Gains And Gross Realized Losses On Sales Of Available-For-Sale Securities [Line Items] | ' | ' | ' |
Gross realized gains | 1 | 0 | 0 |
Gross realized losses | ($3) | $0 | $0 |
Investments_in_Securities_Matu
Investments in Securities - Maturities of Available-For-Sale Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due within 1 year or less | $13 | ' |
Due after 1 through 5 years | 1,639 | ' |
Due after 5 through 10 years | 906 | ' |
Due after 10 years | 124,881 | ' |
Amortized Cost | 127,439 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 14 | ' |
Due after 1 through 5 years | 1,745 | ' |
Due after 5 through 10 years | 964 | ' |
Due after 10 years | 126,196 | ' |
Fair Value | 128,919 | 174,896 |
Weighted Average Yield | ' | ' |
Due within 1 year or less | 5.62% | ' |
Due after 1 through 5 years | 5.19% | ' |
Due after 5 through 10 years | 5.16% | ' |
Due after 10 years | 2.95% | ' |
Weighted Average Yield | 2.99% | ' |
Freddie Mac | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 4 | ' |
Due after 1 through 5 years | 570 | ' |
Due after 5 through 10 years | 613 | ' |
Due after 10 years | 37,814 | ' |
Amortized Cost | 39,001 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 4 | ' |
Due after 1 through 5 years | 599 | ' |
Due after 5 through 10 years | 654 | ' |
Due after 10 years | 39,402 | ' |
Fair Value | 40,659 | 58,515 |
Fannie Mae | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 3 | ' |
Due after 1 through 5 years | 275 | ' |
Due after 5 through 10 years | 163 | ' |
Due after 10 years | 9,699 | ' |
Amortized Cost | 10,140 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 3 | ' |
Due after 1 through 5 years | 291 | ' |
Due after 5 through 10 years | 177 | ' |
Due after 10 years | 10,326 | ' |
Fair Value | 10,797 | 15,280 |
Ginnie Mae | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 7 | ' |
Due after 5 through 10 years | 12 | ' |
Due after 10 years | 130 | ' |
Amortized Cost | 149 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 8 | ' |
Due after 5 through 10 years | 14 | ' |
Due after 10 years | 145 | ' |
Fair Value | 167 | 209 |
CMBS | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 677 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 28,474 | ' |
Amortized Cost | 29,151 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 735 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 29,603 | ' |
Fair Value | 30,338 | 51,307 |
Subprime | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 29,897 | ' |
Amortized Cost | 29,897 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 27,499 | ' |
Fair Value | 27,499 | 26,457 |
Option ARM | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 6,617 | ' |
Amortized Cost | 6,617 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 6,574 | ' |
Fair Value | 6,574 | 5,717 |
Alt-A and other | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 1 | ' |
Due after 1 through 5 years | 71 | ' |
Due after 5 through 10 years | 12 | ' |
Due after 10 years | 8,238 | ' |
Amortized Cost | 8,322 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 2 | ' |
Due after 1 through 5 years | 70 | ' |
Due after 5 through 10 years | 12 | ' |
Due after 10 years | 8,622 | ' |
Fair Value | 8,706 | 10,904 |
Obligations of states and political subdivisions | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 5 | ' |
Due after 1 through 5 years | 39 | ' |
Due after 5 through 10 years | 106 | ' |
Due after 10 years | 3,383 | ' |
Amortized Cost | 3,533 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 5 | ' |
Due after 1 through 5 years | 42 | ' |
Due after 5 through 10 years | 107 | ' |
Due after 10 years | 3,341 | ' |
Fair Value | 3,495 | 5,798 |
Manufactured housing | ' | ' |
Amortized Cost | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 629 | ' |
Amortized Cost | 629 | ' |
Fair Value | ' | ' |
Due within 1 year or less | 0 | ' |
Due after 1 through 5 years | 0 | ' |
Due after 5 through 10 years | 0 | ' |
Due after 10 years | 684 | ' |
Fair Value | $684 | $709 |
Investments_in_Securities_Trad
Investments in Securities - Trading Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | $23,404 | $41,492 |
Mortage-related securities | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 16,768 | 20,979 |
Freddie Mac | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 9,349 | 10,354 |
Fannie Mae | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 7,180 | 10,338 |
Ginnie Mae | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 98 | 131 |
Other | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 141 | 156 |
Non-mortgage-related securities | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 6,636 | 20,513 |
Asset-backed securities | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 0 | 292 |
Treasury bills | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | 2,254 | 1,160 |
Treasury notes | ' | ' |
Trading Securities [Line Items] | ' | ' |
Total fair value of trading securities | $4,382 | $19,061 |
Debt_Securities_and_Subordinat2
Debt Securities and Subordinated Borrowings (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
numberoflinesofcredit | numberoflinesofcredit | ||
Debt Securities and Subordinated Borrowings Text [Line Items] | ' | ' | ' |
Debt limit as percentage of mortgage assets | 120.00% | ' | ' |
Debt limit under Purchase Agreement | $780,000,000,000 | ' | ' |
Par value of our aggregate indebtness | 511,300,000,000 | ' | ' |
Difference between aggregate indebtedness and applicable debt cap | 268,700,000,000 | ' | ' |
Fair value gains (losses) on foreign-currency denominated debt | -11,000,000 | 16,000,000 | 91,000,000 |
Gains (losses) related to our foreign-currency translation | -31,000,000 | -7,000,000 | 40,000,000 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | ' |
Number of secured, uncommitted intraday line of credit | 1 | 1 | ' |
The face amount of secured, uncommited lines of credit | 10,000,000,000 | 10,000,000,000 | ' |
Amounts drawn on lines of credit | 0 | 0 | ' |
Year 2014 | ' | ' | ' |
Debt Securities and Subordinated Borrowings Text [Line Items] | ' | ' | ' |
Debt limit under Purchase Agreement | $663,000,000,000 | ' | ' |
Debt_Securities_and_Subordinat3
Debt Securities and Subordinated Borrowings - Other Short-Term Debt (Details) (Freddie Mac parent, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Other short-term debt par value | $141,767 | $117,930 |
Other short-term debt balance, net | 141,712 | 117,889 |
Other short-term debt weighted average effective rate | 0.13% | 0.15% |
Reference Bills securites and discount notes | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Other short-term debt par value | 137,767 | 117,930 |
Other short-term debt balance, net | 137,712 | 117,889 |
Other short-term debt weighted average effective rate | 0.13% | 0.15% |
Medium-term notes | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Other short-term debt par value | 4,000 | 0 |
Other short-term debt balance, net | $4,000 | $0 |
Other short-term debt weighted average effective rate | 0.16% | 0.00% |
Debt_Securities_and_Subordinat4
Debt Securities and Subordinated Borrowings - Other Long-Term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt, fair value | $2,683,000,000 | $2,187,000,000 |
Freddie Mac parent | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 369,578,000,000 | 434,542,000,000 |
Other long-term debt balance, net | 365,055,000,000 | 429,629,000,000 |
Other long-term debt weighted average effective rate | 2.08% | 2.15% |
Other long-term debt, fair value | 2,600,000,000 | 2,200,000,000 |
Freddie Mac parent | Other senior debt: | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 369,025,000,000 | 433,989,000,000 |
Other long-term debt balance, net | 364,653,000,000 | 429,245,000,000 |
Freddie Mac parent | Hedging-related basis adjustment | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt balance, net | 41,000,000 | 57,000,000 |
Freddie Mac parent | Other subordinated debt: | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 553,000,000 | 553,000,000 |
Other long-term debt balance, net | 402,000,000 | 384,000,000 |
Freddie Mac parent | Fixed-rate | Medium-term notes - callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 101,190,000,000 | 94,655,000,000 |
Other long-term debt balance, net | 101,236,000,000 | 94,842,000,000 |
Other long-term debt weighted average effective rate | 1.51% | 1.62% |
Freddie Mac parent | Fixed-rate | Medium-term notes - non-callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 37,878,000,000 | 42,623,000,000 |
Other long-term debt balance, net | 38,107,000,000 | 42,877,000,000 |
Other long-term debt weighted average effective rate | 0.99% | 1.08% |
Freddie Mac parent | Fixed-rate | U.S. dollar Reference Notes securities - non-callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 190,371,000,000 | 225,857,000,000 |
Other long-term debt balance, net | 190,406,000,000 | 225,885,000,000 |
Other long-term debt weighted average effective rate | 2.71% | 2.82% |
Freddie Mac parent | Fixed-rate | Euro Reference Notes securities - non-callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 528,000,000 | 1,167,000,000 |
Other long-term debt balance, net | 529,000,000 | 1,187,000,000 |
Other long-term debt weighted average effective rate | 4.38% | 4.58% |
Freddie Mac parent | Fixed-rate | Other subordinated debt: | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 221,000,000 | 221,000,000 |
Other long-term debt balance, net | 218,000,000 | 218,000,000 |
Other long-term debt weighted average effective rate | 6.60% | 6.59% |
Freddie Mac parent | Fixed-rate | Callable FreddieNotes securities | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Balance, net for callable other long-term debt | 800,000,000 | 1,200,000,000 |
Freddie Mac parent | Variable-rate | Medium-term notes - callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 6,001,000,000 | 6,953,000,000 |
Other long-term debt balance, net | 6,001,000,000 | 6,953,000,000 |
Other long-term debt weighted average effective rate | 1.66% | 2.57% |
Freddie Mac parent | Variable-rate | Medium-term notes - non-callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 18,533,000,000 | 46,194,000,000 |
Other long-term debt balance, net | 18,533,000,000 | 46,197,000,000 |
Other long-term debt weighted average effective rate | 0.22% | 0.27% |
Freddie Mac parent | Variable-rate | STACR | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 1,107,000,000 | 0 |
Other long-term debt balance, net | 1,155,000,000 | 0 |
Other long-term debt weighted average effective rate | 4.29% | 0.00% |
Freddie Mac parent | Zero-coupon | Medium-term notes - callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 1,200,000,000 | 1,300,000,000 |
Other long-term debt balance, net | 311,000,000 | 324,000,000 |
Other long-term debt weighted average effective rate | 5.82% | 5.71% |
Freddie Mac parent | Zero-coupon | Medium-term notes - non-callable | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 12,217,000,000 | 15,240,000,000 |
Other long-term debt balance, net | 8,334,000,000 | 10,923,000,000 |
Other long-term debt weighted average effective rate | 3.08% | 4.03% |
Freddie Mac parent | Zero-coupon | Other subordinated debt: | ' | ' |
Long-term Debt [Line Items] | ' | ' |
Other long-term debt par value | 332,000,000 | 332,000,000 |
Other long-term debt balance, net | $184,000,000 | $166,000,000 |
Other long-term debt weighted average effective rate | 10.51% | 10.51% |
Debt_Securities_and_Subordinat5
Debt Securities and Subordinated Borrowings - Debt Securities of Consolidated Trusts Held by Third Parties (Details) (Variable Interest Entity Primary Beneficiary, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | $1,399,456 | $1,387,259 |
Balance, Net | 1,433,984 | 1,419,524 |
Effective rate for debt securities of consolidated trusts held by third parties | 3.39% | 3.49% |
Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 1,399,012 | 1,386,811 |
Balance, Net | 1,433,476 | 1,418,995 |
Multifamily Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 444 | 448 |
Balance, Net | 508 | 529 |
Weighted Average Coupon | 4.96% | 4.96% |
Single-family 30-year or more, fixed-rate | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 969,270 | 960,176 |
Balance, Net | 993,683 | 982,718 |
Weighted Average Coupon | 4.14% | 4.53% |
Single-family 20-year fixed-rate | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 75,910 | 73,902 |
Balance, Net | 78,252 | 76,079 |
Weighted Average Coupon | 3.81% | 4.09% |
Single-family 15-year fixed-rate | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 270,513 | 257,083 |
Balance, Net | 277,018 | 263,244 |
Weighted Average Coupon | 3.23% | 3.59% |
Single-family Adjustable-rate | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 60,683 | 62,424 |
Balance, Net | 61,830 | 63,649 |
Weighted Average Coupon | 2.64% | 2.88% |
Single-family Interest-only | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 21,352 | 31,588 |
Balance, Net | 21,390 | 31,642 |
Weighted Average Coupon | 3.70% | 4.37% |
FHA/VA | Single Family Loan Product | ' | ' |
Debt Securities Of Consolidated Trusts Held By Third Parties [Line Items] | ' | ' |
UPB | 1,284 | 1,638 |
Balance, Net | $1,303 | $1,663 |
Weighted Average Coupon | 5.67% | 5.67% |
Debt_Securities_and_Subordinat6
Debt Securities and Subordinated Borrowings - Contractual Maturity of Other Long-term Debt and Debt Securities of Consolidated Trusts Held by Third Parties (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Annual Maturities - Par Value | ' | ' |
Total | $1,769,034 | ' |
Net discounts, premiums, hedge-related and other basis adjustments | 30,005 | ' |
Total debt securities of consolidated trusts held by third parties and other long-term debt | 1,799,039 | ' |
Freddie Mac parent | ' | ' |
Annual Maturities - Par Value | ' | ' |
Other long-term debt - 2014 | 78,115 | ' |
Other long-term debt - 2015 | 70,303 | ' |
Other long-term debt - 2016 | 63,564 | ' |
Other long-term debt - 2017 | 51,908 | ' |
Other long-term debt - 2018 | 33,418 | ' |
Other long-term debt - Thereafter | 72,270 | ' |
Variable Interest Entity Primary Beneficiary | ' | ' |
Annual Maturities - Par Value | ' | ' |
Debt securities of consolidated trusts held by third parties | $1,399,456 | $1,387,259 |
Derivatives_Details
Derivatives (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
category | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Number of derivative categories | 3 | ' |
Derivatives in Hedge Accounting Relationships | $0 | $0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ($460) | ($612) |
Derivatives_Derivative_Assets_
Derivatives - Derivative Assets and Liabilities at Fair Value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Assets [Abstract] | ' | ' |
Netting adjustments to derivative assets | ($14,411) | ($24,945) |
Derivative assets, net | 1,063 | 657 |
Derivative Liabilities [Abstract] | ' | ' |
Netting adjustments to derivative liabilities | 15,282 | 33,150 |
Derivative liabilities, net | -180 | -178 |
Net cash collateral posted (held) | 871 | 8,200 |
Commitments | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 61 | 20 |
Derivatives | ' | ' |
Derivative Liabilities [Abstract] | ' | ' |
Net cash collateral posted (held) | 871 | 8,200 |
Not Designated as Hedging Instrument | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 725,026 | 745,831 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 14,231 | 24,193 |
Derivative interest receivable | 1,243 | 1,409 |
Netting adjustments to derivative assets | -14,411 | -24,945 |
Derivative assets, net | 1,063 | 657 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -13,627 | -31,089 |
Derivative interest payable | -1,835 | -2,239 |
Netting adjustments to derivative liabilities | 15,282 | 33,150 |
Derivative liabilities, net | -180 | -178 |
Not Designated as Hedging Instrument | Interest Rate Swaps | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 524,624 | 547,491 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 10,019 | 13,965 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -13,317 | -30,244 |
Not Designated as Hedging Instrument | Receive-fixed | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 281,727 | 275,099 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 4,475 | 13,782 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -2,438 | -97 |
Not Designated as Hedging Instrument | Pay-fixed | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 242,597 | 270,092 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 5,540 | 177 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -10,879 | -30,147 |
Not Designated as Hedging Instrument | Basis (floating to floating) | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 300 | 2,300 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 4 | 6 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Option-based | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 122,010 | 118,585 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 4,112 | 10,097 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -204 | -750 |
Not Designated as Hedging Instrument | Call swaptions | Purchased | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 59,290 | 37,650 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 2,373 | 7,360 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Call swaptions | Written | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 5,945 | 6,195 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -201 | -749 |
Not Designated as Hedging Instrument | Put swaptions | Purchased | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 33,410 | 43,200 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 698 | 288 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Other option-based derivatives | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 23,365 | 31,540 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 1,041 | 2,449 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -3 | -1 |
Not Designated as Hedging Instrument | Futures | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 50,270 | 41,123 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 37 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | -2 |
Not Designated as Hedging Instrument | Foreign-currency swaps | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 528 | 1,167 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 39 | 73 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | -6 |
Not Designated as Hedging Instrument | Commitments | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 18,731 | 25,530 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 61 | 20 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -69 | -47 |
Not Designated as Hedging Instrument | Credit derivatives | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 5,386 | 8,307 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 1 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -6 | -5 |
Not Designated as Hedging Instrument | Swap guarantee derivatives | ' | ' |
Derivative Assets And Liabilities At Fair Value [Line Items] | ' | ' |
Notional or Contractual Amount | 3,477 | 3,628 |
Derivative Assets [Abstract] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liabilities [Abstract] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | ($31) | ($35) |
Derivatives_Gains_and_Losses_o
Derivatives - Gains and Losses on Derivatives (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | $2,632 | ($2,448) | ($9,752) |
Not Designated as Hedging Instrument | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 2,632 | -2,448 | -9,752 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 6,099 | 1,354 | -4,720 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Interest Rate Swaps | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 8,598 | -204 | -10,367 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Receive-fixed | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -10,421 | 2,653 | 12,637 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Foreign-currency denominated | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -21 | -33 | -49 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | U.S. dollar denominated | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -10,400 | 2,686 | 12,686 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Pay-fixed | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 19,021 | -2,865 | -22,999 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Basis (floating to floating) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -2 | 8 | -5 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Option-based | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -2,422 | 1,250 | 7,176 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Call swaptions | Purchased | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -2,547 | 1,365 | 10,234 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Call swaptions | Written | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 546 | -38 | -2,337 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Put swaptions | Purchased | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -8 | -273 | -1,614 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Put swaptions | Written | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 0 | 6 | 14 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Other option-based derivatives | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -413 | 190 | 879 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Futures | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 21 | 12 | -150 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Foreign-currency swaps | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 30 | -8 | -41 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Commitments | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -131 | 298 | -1,340 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Credit derivatives | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -3 | 0 | 0 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Swap guarantee derivatives | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 9 | 7 | 3 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Other | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -3 | -1 | -1 |
Not Designated as Hedging Instrument | Derivative gains (losses) excluding accrual of periodic settlements | Lehman Bankruptcy | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | ' | ' | 3 |
Not Designated as Hedging Instrument | Accrual of periodic settlements | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -3,467 | -3,802 | -5,032 |
Not Designated as Hedging Instrument | Accrual of periodic settlements | Receive-fixed | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 3,764 | 3,511 | 4,173 |
Not Designated as Hedging Instrument | Accrual of periodic settlements | Pay-fixed | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | -7,233 | -7,318 | -9,241 |
Not Designated as Hedging Instrument | Accrual of periodic settlements | Foreign-currency swaps | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | 0 | 4 | 22 |
Not Designated as Hedging Instrument | Accrual of periodic settlements | Other | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative gains (losses) | $2 | $1 | $14 |
Collateral_and_Offsetting_of_A2
Collateral and Offsetting of Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
numberoflinesofcredit | numberoflinesofcredit | Securities purchased under agreements to resell | Securities purchased under agreements to resell | Multifamily guarantees and mortgage loans | Multifamily guarantees and mortgage loans | Secured uncommitted line of credit | Secured uncommitted line of credit | Derivatives and securities | Derivatives | Clearing members | Clearing members | Commitments | Commitments | OTC derivatives | OTC derivatives | OTC derivatives | Cleared and exchange-traded derivatives | Cleared and exchange-traded derivatives | |
Counterparties accounted for greater than 10% | |||||||||||||||||||
Net uncollateralized exposure to derivative counterparties | |||||||||||||||||||
numberofcounterparties | |||||||||||||||||||
Offsetting Of Assets And Liabilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative collateral, obligation to return cash | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative collateral, right to reclaim cash | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net uncollateralized exposure after applying netting agreements and collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 188,000,000 | 69,000,000 | ' | 382,000,000 | 66,000,000 |
Maximum loss after applying netting agreements and collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 188,000,000 | ' | ' | ' | ' |
Number of derivative counterparties with higher than 10% of total net uncollateralized exposure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56.00% | ' | ' |
Total exposure on our commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,000,000 | 20,000,000 | ' | ' | ' | ' | ' |
Collateral pledged to Freddie Mac in form of cash | ' | ' | ' | ' | 66,000,000 | 158,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | 1,500,000,000 | ' | 646,000,000 | ' |
Securities collateral pledged to Freddie Mac offsetting our exposure | 432,000,000 | 501,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 432,000,000 | 501,000,000 | ' | 0 | 0 |
Collateral pledged to Freddie Mac in form of securities | ' | ' | 5,000,000,000 | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of secured, uncommitted intraday line of credit | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal funds sold | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities pledged by Freddie Mac with the ability for the secured party to repledge | 11,100,000,000 | 10,500,000,000 | ' | ' | ' | ' | 10,500,000,000 | 10,500,000,000 | 600,000,000 | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities pledged by Freddie Mac without the ability for the secured party to repledge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 148,000,000 | ' | ' | ' | ' | ' | ' | ' |
Collateral pledged by Freddie Mac in form of cash | 3,400,000,000 | 9,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | 110,000,000 | ' | ' | 3,200,000,000 | 9,700,000,000 | ' | ' | ' |
Derivatives in a net liability position | 3,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000,000 | 9,700,000,000 | ' | ' | ' |
Collateral already posted, aggregate fair value | 3,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional collateral, aggregate fair value | $42,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral_and_Offsetting_of_A3
Collateral and Offsetting of Assets and Liabilities - Offsetting of Financial Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Assets: | ' | ' |
Gross Amount Recognized | $15,474 | $25,602 |
Amount Offset in the Consolidated Balance Sheets | -14,411 | -24,945 |
Derivative assets, net | 1,063 | 657 |
Gross Amount Not Offset in the Consolidated Balance Sheets | -432 | -501 |
Net Amount | 631 | 156 |
Securities purchased under agreements to resell | ' | ' |
Gross Amount Recognized | 62,383 | 37,563 |
Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | 62,383 | 37,563 |
Gross Amount Not Offset in the Consolidated Balance Sheets | -62,383 | -37,563 |
Net Amount | 0 | 0 |
Total | ' | ' |
Gross Amount Recognized | 77,857 | 63,165 |
Amount Offset in the Consolidated Balance Sheets | -14,411 | -24,945 |
Net Amount Presented in the Consolidated Balance Sheets | 63,446 | 38,220 |
Gross Amount Not Offset in the Consolidated Balance Sheets | -62,815 | -38,064 |
Net Amount | 631 | 156 |
Derivative Liabilities: | ' | ' |
Gross Amount Recognized | -15,462 | -33,328 |
Amount Offset in the Consolidated Balance Sheets | 15,282 | 33,150 |
Derivative liabilities, net | -180 | -178 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | -180 | -178 |
Over-the-counter interest-rate and foreign-currency swaps, and option-based derivatives | ' | ' |
Derivative Assets: | ' | ' |
Gross Amount Recognized | 13,886 | 25,515 |
Amount Offset in the Consolidated Balance Sheets | -13,266 | -24,945 |
Derivative assets, net | 620 | 570 |
Gross Amount Not Offset in the Consolidated Balance Sheets | -432 | -501 |
Net Amount | 188 | 69 |
Derivative Liabilities: | ' | ' |
Gross Amount Recognized | -14,616 | -33,233 |
Amount Offset in the Consolidated Balance Sheets | 14,545 | 33,150 |
Derivative liabilities, net | -71 | -83 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | -71 | -83 |
Cleared and exchange-traded derivatives | ' | ' |
Derivative Assets: | ' | ' |
Gross Amount Recognized | 1,527 | 66 |
Amount Offset in the Consolidated Balance Sheets | -1,145 | 0 |
Derivative assets, net | 382 | 66 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 382 | 66 |
Derivative Liabilities: | ' | ' |
Gross Amount Recognized | -737 | -8 |
Amount Offset in the Consolidated Balance Sheets | 737 | 0 |
Derivative liabilities, net | 0 | -8 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 0 | -8 |
Other | ' | ' |
Derivative Assets: | ' | ' |
Gross Amount Recognized | 61 | 21 |
Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative assets, net | 61 | 21 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 61 | 21 |
Derivative Liabilities: | ' | ' |
Gross Amount Recognized | -109 | -87 |
Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative liabilities, net | -109 | -87 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | ($109) | ($87) |
Collateral_and_Offsetting_of_A4
Collateral and Offsetting of Assets and Liabilities - Collateral in the Form of Securities Pledged (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Collateral in the Form of Securities Pledged [Line Items] | ' | ' |
Securities pledged by Freddie Mac with the ability for the secured party to repledge | $11,100 | $10,500 |
Total securities pledged | 11,089 | 10,670 |
Debt securities of consolidated trusts held by third parties | ' | ' |
Collateral in the Form of Securities Pledged [Line Items] | ' | ' |
Securities pledged by Freddie Mac with the ability for the secured party to repledge | 10,654 | 10,390 |
Securities pledged by Freddie Mac without the ability for the secured party to repledge | 0 | 148 |
Available-for-sale securities | ' | ' |
Collateral in the Form of Securities Pledged [Line Items] | ' | ' |
Securities pledged by Freddie Mac with the ability for the secured party to repledge | 70 | 132 |
Trading securities | ' | ' |
Collateral in the Form of Securities Pledged [Line Items] | ' | ' |
Securities pledged by Freddie Mac with the ability for the secured party to repledge | $365 | $0 |
Stockholders_Equity_Deficit_De
Stockholders' Equity (Deficit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 08, 2010 | Sep. 08, 2008 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
numberofsecurities | numberofsecurities | numberofsecurities | Senior Preferred Stock | Senior Preferred Stock | Senior Preferred Stock | Common Stock | Year 2018 | Restricted stock units | Restricted stock | Restricted stock | Stock options | ||||||
Stockholders Equity Text [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal statutory tax rate | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total AOCI related to derivatives designated as cash flow hedges | ($1,000,000,000) | ' | ' | ' | ($1,000,000,000) | ($1,316,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedge gain (loss) to be reclassified over the next 12 months | ' | ' | ' | ' | -214,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum remaining length of time hedged in cash flow hedge | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of AOCI related to closed cash flow hedges expected to be reclassified to earnings over the next 5 years | ' | ' | ' | ' | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of AOCI related to closed cash flow hedges expected to be reclassified to earnings over the next 10 years | ' | ' | ' | ' | 89.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior preferred stock, par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' |
Initial Liquidation Preference Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Cash dividends paid on senior preferred stock | 30,400,000,000 | 4,400,000,000 | 7,000,000,000 | 5,800,000,000 | 47,591,000,000 | 7,233,000,000 | 6,495,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Draw received from Treasury | ' | ' | ' | ' | 0 | 165,000,000 | 7,971,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected draw request from Treasury | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable capital reserve amount | 3,000,000,000 | ' | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Senior preferred stock dividend payable to Treasury in the following quarter | 10,400,000,000 | ' | ' | ' | 10,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate liquidation preference on senior preferred stock | 72,336,000,000 | ' | ' | ' | 72,336,000,000 | 72,336,000,000 | ' | ' | ' | ' | 72,336,000,000 | ' | ' | ' | ' | ' | ' |
Common stock warrant, percentage of common stock shares that can be purchased | 79.90% | ' | ' | ' | 79.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock warrant, exercise price per share | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock warrant, amount outstanding | 2,300,000,000 | ' | ' | ' | 2,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of preferred stock classes | 24 | ' | ' | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares or non-cumulative preferred stock repurchased | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares or non-cumulative preferred stock issued | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units lapsed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,976 | ' | ' | ' |
Restricted stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,341 | 41,160 | 41,160 | ' |
Stock options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Stock options forfeited or expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 492,861 |
Stock options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 816,435 |
Antidilutive potential common shares | ' | ' | ' | ' | 998,707 | 1,606,097 | 3,383,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common dividends declared | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared on preferred stock | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid on preferred stock | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of preferred stock classes delisted | ' | ' | ' | ' | ' | ' | ' | '20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OTCQB Symbol | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'FMCC | ' | ' | ' | ' | ' |
Stockholders_Equity_Deficit_Ch
Stockholders' Equity (Deficit) - Changes in AOCI by Component, Net of Tax (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | ($2,938,000,000) | ' | ' |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 2,932,000,000 | 5,057,000,000 | 4,036,000,000 |
Ending balance | -6,000,000 | -2,938,000,000 | ' |
Total | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | -2,938,000,000 | -7,995,000,000 | ' |
Other comprehensive income (loss) before reclassifications | 2,828,000,000 | 3,327,000,000 | ' |
Amounts reclassified from accumulated other comprehensive income | 104,000,000 | 1,730,000,000 | ' |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 2,932,000,000 | 5,057,000,000 | 4,036,000,000 |
Ending balance | -6,000,000 | -2,938,000,000 | -7,995,000,000 |
AOCI related to available-for-sale securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | -1,444,000,000 | -6,213,000,000 | ' |
Other comprehensive income (loss) before reclassifications | 2,659,000,000 | 3,458,000,000 | ' |
Amounts reclassified from accumulated other comprehensive income | -253,000,000 | 1,311,000,000 | ' |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 2,406,000,000 | 4,769,000,000 | ' |
Ending balance | 962,000,000 | -1,444,000,000 | ' |
Tax expense related to AFS - other comprehensive income before reclassifications | 1,400,000,000 | 1,900,000,000 | ' |
Tax benefit related to amounts reclassified from accumulated other comprehensive income | ' | 706,000,000 | ' |
AOCI related to cash flow hedge relationships | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | -1,316,000,000 | -1,730,000,000 | ' |
Other comprehensive income (loss) before reclassifications | 0 | 0 | ' |
Amounts reclassified from accumulated other comprehensive income | 316,000,000 | 414,000,000 | ' |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 316,000,000 | 414,000,000 | ' |
Ending balance | -1,000,000,000 | -1,316,000,000 | ' |
Tax benefit related to amounts reclassified from accumulated other comprehensive income | ' | 198,000,000 | ' |
AOCI related to defined benefit plans | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | -178,000,000 | -52,000,000 | ' |
Other comprehensive income (loss) before reclassifications | 169,000,000 | -131,000,000 | ' |
Amounts reclassified from accumulated other comprehensive income | 41,000,000 | 5,000,000 | ' |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 210,000,000 | -126,000,000 | ' |
Ending balance | $32,000,000 | ($178,000,000) | ' |
Stockholders_Equity_Deficit_Re
Stockholders' Equity (Deficit) - Reclassifications from AOCI to Net Income (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Total reclassifications in the period | Total reclassifications in the period | AOCI related to available-for-sale securities | AOCI related to available-for-sale securities | AOCI related to cash flow hedge relationships | AOCI related to cash flow hedge relationships | AOCI related to cash flow hedge relationships | AOCI related to cash flow hedge relationships | AOCI related to defined benefit plans | AOCI related to defined benefit plans | ||||
Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | Total reclassifications in the period | ||||||
Freddie Mac parent | Freddie Mac parent | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other gains (losses) on investment securities recognized in earnings | $301 | ($1,522) | ($896) | ' | ' | $717 | $1,899 | ' | ' | ' | ' | ' | ' |
Net impairment of available-for-sale securities recognized in earnings | -1,510 | -2,168 | -2,301 | ' | ' | -1,297 | -1,510 | ' | ' | ' | ' | ' | ' |
Total interest expense | -55,779 | -66,502 | -79,988 | ' | ' | ' | ' | ' | ' | -1 | -5 | ' | ' |
Expense related to derivatives | -455 | -605 | -755 | ' | ' | ' | ' | -94 | -455 | ' | ' | ' | ' |
Salaries and employee benefits | -833 | -810 | -832 | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 2 |
Income (loss) before income tax benefit (expense) | 25,363 | 9,445 | -5,666 | ' | ' | -580 | 389 | -95 | -460 | ' | ' | ' | ' |
Income tax benefit (expense) | 23,305 | 1,537 | 400 | ' | ' | 203 | -136 | 29 | 144 | ' | ' | -43 | -43 |
Net income (loss) | $48,668 | $10,982 | ($5,266) | ($478) | ($104) | ($377) | $253 | ($66) | ($316) | ' | ' | ($35) | ($41) |
Stockholders_Equity_Deficit_Se
Stockholders' Equity (Deficit) - Senior Preferred Stock (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2008 | |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Increase in liquidation preference | $0 | $165,000,000 | $7,971,000,000 | ' |
Aggregate liquidation preference on senior preferred stock | 72,336,000,000 | 72,336,000,000 | ' | ' |
Cash amount received as a result of issuing the initial liquidation preference | ' | ' | ' | 0 |
Senior Preferred Stock | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | ' | 10.00% | ' | ' |
Shares Authorized | 1,000,000 | ' | ' | ' |
Shares Outstanding | 1,000,000 | ' | ' | ' |
Total Par Value | 1,000,000 | ' | ' | ' |
Initial Liquidation Preference Price Per Share | $1,000 | ' | ' | ' |
Aggregate liquidation preference on senior preferred stock | 72,336,000,000 | ' | ' | ' |
Draw 1 - September 8, 2008 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Shares Authorized | 1,000,000 | ' | ' | ' |
Shares Outstanding | 1,000,000 | ' | ' | ' |
Total Par Value | 1,000,000 | ' | ' | ' |
Initial Liquidation Preference Price Per Share | $1,000 | ' | ' | ' |
Increase in liquidation preference | 1,000,000,000 | ' | ' | ' |
Cash amount received as a result of issuing the initial liquidation preference | 0 | ' | ' | ' |
Draw 2 - November 24, 2008 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 13,800,000,000 | ' | ' | ' |
Draw 3 - March 31, 2009 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 30,800,000,000 | ' | ' | ' |
Draw 4 - June 30, 2009 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 6,100,000,000 | ' | ' | ' |
Draw 5 - June 30, 2010 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 10,600,000,000 | ' | ' | ' |
Draw 6 - September 30, 2010 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 1,800,000,000 | ' | ' | ' |
Draw 7 - December 30, 2010 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 100,000,000 | ' | ' | ' |
Draw 8 - March 31, 2011 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 500,000,000 | ' | ' | ' |
Draw 9 - September 30, 2011 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 1,479,000,000 | ' | ' | ' |
Draw 10 - December 30, 2011 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 5,992,000,000 | ' | ' | ' |
Draw 11 - March 30, 2012 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | 146,000,000 | ' | ' | ' |
Draw 12 - June 29, 2012 | ' | ' | ' | ' |
Senior Preferred Stock [Line Items] | ' | ' | ' | ' |
Senior Preferred Stock, Dividend Rate | 10.00% | ' | ' | ' |
Increase in liquidation preference | $19,000,000 | ' | ' | ' |
Stockholders_Equity_Deficit_Pr
Stockholders' Equity (Deficit) - Preferred Stock (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Preferred Stock [Line Items] | ' | ' |
Total Outstanding Balance | $14,109,000,000 | 14,109,000,000 |
Preferred Stock | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 464,170,000 | ' |
Shares Outstanding | 464,170,000 | ' |
Total Par Value | 464,170,000 | ' |
Total Outstanding Balance | 14,109,000,000 | ' |
Class 1 - 1996 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 5,000,000 | ' |
Shares Outstanding | 5,000,000 | ' |
Total Par Value | 5,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 250,000,000 | ' |
OTCQB Symbol | 'FMCCI | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 9.00%. | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 1.00% | ' |
Denominator amount in dividend rate reset calculation | 1.377 | ' |
Class 1 - 1996 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 9.00% | ' |
Class 2 - 5.81% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.81% | ' |
Shares Authorized | 3,000,000 | ' |
Shares Outstanding | 3,000,000 | ' |
Total Par Value | 3,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 150,000,000 | ' |
Class 3 - 5% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.00% | ' |
Shares Authorized | 8,000,000 | ' |
Shares Outstanding | 8,000,000 | ' |
Total Par Value | 8,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 400,000,000 | ' |
OTCQB Symbol | 'FMCKK | ' |
Class 4 - 1998 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 4,400,000 | ' |
Shares Outstanding | 4,400,000 | ' |
Total Par Value | 4,400,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 220,000,000 | ' |
OTCQB Symbol | 'FMCCG | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 1% divided by 1.377, and is capped at 7.50% | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 1.00% | ' |
Denominator amount in dividend rate reset calculation | 1.377 | ' |
Class 4 - 1998 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 7.50% | ' |
Class 5 - 5.10% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.10% | ' |
Shares Authorized | 8,000,000 | ' |
Shares Outstanding | 8,000,000 | ' |
Total Par Value | 8,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 400,000,000 | ' |
OTCQB Symbol | 'FMCCH | ' |
Class 6 - 5.30% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.30% | ' |
Shares Authorized | 4,000,000 | ' |
Shares Outstanding | 4,000,000 | ' |
Total Par Value | 4,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 200,000,000 | ' |
Class 7 - 5.10% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.10% | ' |
Shares Authorized | 3,000,000 | ' |
Shares Outstanding | 3,000,000 | ' |
Total Par Value | 3,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 150,000,000 | ' |
Class 8 - 5.79% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.79% | ' |
Shares Authorized | 5,000,000 | ' |
Shares Outstanding | 5,000,000 | ' |
Total Par Value | 5,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 250,000,000 | ' |
OTCQB Symbol | 'FMCCK | ' |
Class 9 - 1999 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 5,750,000 | ' |
Shares Outstanding | 5,750,000 | ' |
Total Par Value | 5,750,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 287,000,000 | ' |
OTCQB Symbol | 'FMCCL | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. | ' |
Preferred Stock, Redemption Terms | 'Optional redemption on December 31, 2004 and on December 31 every five years thereafter. | ' |
Preferred stock dividend rate reset period | '5 years | ' |
Class 9 - 1999 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 11.00% | ' |
Class 10 - 2001 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 6,500,000 | ' |
Shares Outstanding | 6,500,000 | ' |
Total Par Value | 6,500,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 325,000,000 | ' |
OTCQB Symbol | 'FMCCM | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00% | ' |
Preferred Stock, Redemption Terms | ' Optional redemption on March 31, 2003 and on March 31 every two years thereafter. | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 0.10% | ' |
Preferred stock dividend rate reset period | '2 years | ' |
Class 10 - 2001 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 11.00% | ' |
Class 11 - 2001 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 4,600,000 | ' |
Shares Outstanding | 4,600,000 | ' |
Total Par Value | 4,600,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 230,000,000 | ' |
OTCQB Symbol | 'FMCCN | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets on April 1 every year based on 12-month LIBOR minus 0.20%, and is capped at 11.00%. | ' |
Preferred Stock, Redemption Terms | 'Optional redemption on March 31, 2003 and on March 31 every year thereafter. | ' |
Percentage deducted from benchmark rate in dividend rate reset calculation | 0.20% | ' |
Class 11 - 2001 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 11.00% | ' |
Class 12 - 5.81% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.81% | ' |
Shares Authorized | 3,450,000 | ' |
Shares Outstanding | 3,450,000 | ' |
Total Par Value | 3,450,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 173,000,000 | ' |
OTCQB Symbol | 'FMCCO | ' |
Class 13 - 6% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 6.00% | ' |
Shares Authorized | 3,450,000 | ' |
Shares Outstanding | 3,450,000 | ' |
Total Par Value | 3,450,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 173,000,000 | ' |
OTCQB Symbol | 'FMCCP | ' |
Class 14 - 2001 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 4,020,000 | ' |
Shares Outstanding | 4,020,000 | ' |
Total Par Value | 4,020,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 201,000,000 | ' |
OTCQB Symbol | 'FMCCJ | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. | ' |
Preferred Stock, Redemption Terms | 'Optional redemption on June 30, 2003 and on June 30 every two years thereafter. | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 0.20% | ' |
Preferred stock dividend rate reset period | '2 years | ' |
Class 14 - 2001 Variable-rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 11.00% | ' |
Class 15 - 5.70% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.70% | ' |
Shares Authorized | 6,000,000 | ' |
Shares Outstanding | 6,000,000 | ' |
Total Par Value | 6,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 300,000,000 | ' |
OTCQB Symbol | 'FMCKP | ' |
Class 16 - 5.81% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.81% | ' |
Shares Authorized | 6,000,000 | ' |
Shares Outstanding | 6,000,000 | ' |
Total Par Value | 6,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 300,000,000 | ' |
Class 17 - 2006 Variable-rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Shares Authorized | 15,000,000 | ' |
Shares Outstanding | 15,000,000 | ' |
Total Par Value | 15,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 750,000,000 | ' |
OTCQB Symbol | 'FMCCS | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%. | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 0.50% | ' |
Class 17 - 2006 Variable-rate | Minimum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 4.00% | ' |
Class 18 - 6.42% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 6.42% | ' |
Shares Authorized | 5,000,000 | ' |
Shares Outstanding | 5,000,000 | ' |
Total Par Value | 5,000,000 | ' |
Redemption Price Per Share | $50 | ' |
Total Outstanding Balance | 250,000,000 | ' |
OTCQB Symbol | 'FMCCT | ' |
Class 19 - 5.90% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.90% | ' |
Shares Authorized | 20,000,000 | ' |
Shares Outstanding | 20,000,000 | ' |
Total Par Value | 20,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | 500,000,000 | ' |
OTCQB Symbol | 'FMCKO | ' |
Class 20 - 5.57% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.57% | ' |
Shares Authorized | 44,000,000 | ' |
Shares Outstanding | 44,000,000 | ' |
Total Par Value | 44,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | 1,100,000,000 | ' |
OTCQB Symbol | 'FMCKM | ' |
Class 21 - 5.66% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 5.66% | ' |
Shares Authorized | 20,000,000 | ' |
Shares Outstanding | 20,000,000 | ' |
Total Par Value | 20,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | 500,000,000 | ' |
OTCQB Symbol | 'FMCKN | ' |
Class 22 - 6.02% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 6.02% | ' |
Shares Authorized | 20,000,000 | ' |
Shares Outstanding | 20,000,000 | ' |
Total Par Value | 20,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | 500,000,000 | ' |
OTCQB Symbol | 'FMCKL | ' |
Class 23 - 6.55% | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 6.55% | ' |
Shares Authorized | 20,000,000 | ' |
Shares Outstanding | 20,000,000 | ' |
Total Par Value | 20,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | 500,000,000 | ' |
OTCQB Symbol | 'FMCKI | ' |
Class 24 - 2007 Fixed-to-floating rate | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | ' | 8.38% |
Shares Authorized | 240,000,000 | ' |
Shares Outstanding | 240,000,000 | ' |
Total Par Value | 240,000,000 | ' |
Redemption Price Per Share | $25 | ' |
Total Outstanding Balance | $6,000,000,000 | ' |
OTCQB Symbol | 'FMCKJ | ' |
Preferred Stock, Dividend Payment Terms | 'Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of three-month LIBOR plus 4.16% per annum; or (b) 7.875% per annum. | ' |
Preferred Stock, Redemption Terms | 'Optional redemption on December 31, 2012, and on December 31 every five years thereafter. | ' |
Percentage added to benchmark rate in dividend rate reset calculation | 4.16% | ' |
Class 24 - 2007 Fixed-to-floating rate | Maximum [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock, dividend rate | 7.88% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | ' |
Operating Loss Carryforwards | $11,400,000,000 | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 3,600,000,000 | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 445,000,000 | ' | ' | ' |
Unrecognized Tax Benefits | 0 | 0 | 1,355,000,000 | 1,220,000,000 |
Accrued interest receivable (payable) on Income taxes | $529,000,000 | $523,000,000 | ' | ' |
Income_Taxes_Federal_Income_Ta
Income Taxes - Federal Income Tax Benefit (Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current Income Tax Benefit (Expense) | ($117) | $1,540 | $283 |
Deferred Income Tax Benefit (Expense) | 23,422 | -3 | 117 |
Income Tax Benefit (Expense) | $23,305 | $1,537 | $400 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory to Effective Tax Rate (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' |
Income Tax Benefit (Expense), at Statutory Corporate Tax Rate | ($8,877) | ($3,306) | $1,983 |
Tax-Exempt Interest | 101 | 133 | 179 |
Tax Credits | 495 | 536 | 566 |
Valuation Allowance [Abstract] | ' | ' | ' |
Current year activities | 5,156 | 2,637 | -2,728 |
Release of valuation allowance | 26,369 | 0 | 0 |
Unrecognized tax benefits | 0 | 1,205 | -21 |
Other | 138 | 45 | 403 |
Valutation Allowance | 31,663 | 3,887 | -2,346 |
Other | -77 | 287 | 18 |
Income Tax Benefit (Expense) | $23,305 | $1,537 | $400 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Tax-Exempt Interest (Percent) | -0.40% | -1.40% | 3.20% |
Tax Credits (Percent) | -2.00% | -5.70% | 10.00% |
Valuation Allowance Percent [Abstract] | ' | ' | ' |
Current Year Activity (Percent) | -20.30% | -27.90% | -48.20% |
Release of valuation allowance (percent) | -104.00% | 0.00% | 0.00% |
Unrecognized Tax Benefits (Percent) | 0.00% | -12.80% | -0.40% |
Other (Percent) | -0.50% | -0.50% | 7.20% |
Valuation Allowance (Percent) | -124.80% | -41.20% | -41.40% |
Other (Percent) | 0.30% | -3.00% | 0.30% |
Effective Tax Rate | -91.90% | -16.30% | 7.10% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ' | ' |
Deferred fees | $5,035 | $4,330 |
Basis differences related to derivative instruments | 6,946 | 10,294 |
Credit related items and allowance for loan losses | 3,648 | 6,785 |
Unrealized (gains) losses related to available-for-sale securities | 0 | 778 |
LIHTC and AMT credit carryforwards | 3,997 | 3,408 |
Net operating loss carryforward | 3,978 | 11,479 |
Other items, net | 40 | 146 |
Total deferred tax assets | 23,644 | 37,220 |
Deferred Tax Liabilities [Abstract] | ' | ' |
Basis differences related to assets held for investment | -375 | -4,609 |
Unrealized (Gains) Losses related to Available-for-Sale Securities | -518 | 0 |
Basis differences related to debt | -35 | -149 |
Total deferred tax liabilities | -928 | -4,758 |
Valuation allowance | 0 | -31,684 |
Deferred tax assets, net | $22,716 | $778 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrecognized Tax Benefits | ' | ' | ' |
Unrecognized Tax Benefits, Beginning balance | $0 | $1,355 | $1,220 |
Changes based on tax positions in prior years | 0 | -41 | 130 |
Changes based on tax positions in current years | 0 | -28 | 6 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | -1,286 | -1 |
Unrecognized Tax Benefits, Ending balance | $0 | $0 | $1,355 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
numberofreportablesegments | |||
Note Text Segment Reporting [Line Items] | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Single-family Guarantee | ' | ' | ' |
Note Text Segment Reporting [Line Items] | ' | ' | ' |
Unamortized balance of buy-up (buy-down) fees | -0.4 | ' | ' |
Unamortized balance of delivery fees | 0.9 | ' | ' |
Investments | ' | ' | ' |
Note Text Segment Reporting [Line Items] | ' | ' | ' |
Unamortized balance of cash premiums and discounts, net | 3.2 | ' | ' |
Unamortized balance of buy-up (buy-down) fees | 0.5 | ' | ' |
Segment_Reporting_Summary_of_S
Segment Reporting - Summary of Segment Earnings and Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | $48,668 | $10,982 | ($5,266) |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
All Other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | 23,892 | 788 | 49 |
Comprehensive income (loss) | 24,013 | 788 | 49 |
Operating segments and corporate non-segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | 48,668 | 10,982 | -5,266 |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
Single-family Guarantee | Operating segments | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | 5,796 | -164 | -10,000 |
Comprehensive income (loss) | 5,845 | -227 | -9,970 |
Investments | Operating segments | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | 16,602 | 8,212 | 3,366 |
Comprehensive income (loss) | 20,287 | 11,397 | 6,473 |
Multifamily | Operating segments | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net income (loss) | 2,378 | 2,146 | 1,319 |
Comprehensive income (loss) | $1,455 | $4,081 | $2,218 |
Segment_Reporting_Segment_Earn
Segment Reporting - Segment Earnings and Reconciliation to GAAP Results (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | $16,468 | $17,611 | $18,397 |
Benefit (provision) for credit losses | 2,465 | -1,890 | -10,702 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 271 | 201 | 170 |
Net impairment of available-for-sale securities recognized in earnings | -1,510 | -2,168 | -2,301 |
Derivative gains (losses) | 2,632 | -2,448 | -9,752 |
Gains (losses) on trading securities | -1,598 | -1,674 | -954 |
Gains (losses) on mortgage loans | -336 | 1,010 | 829 |
Other non-interest income (loss) | 9,060 | 996 | 1,130 |
Non-interest expense | ' | ' | ' |
Administrative expenses | -1,805 | -1,561 | -1,506 |
Real estate owned operations (expense) income | 140 | -59 | -585 |
Other expenses | -424 | -573 | -392 |
Segment Adjustments | 0 | 0 | 0 |
Income tax benefit (expense) | 23,305 | 1,537 | 400 |
Net income (loss) | 48,668 | 10,982 | -5,266 |
Total other comprehensive income (loss), net of taxes | 2,932 | 5,057 | 4,036 |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
All Other | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 0 | 0 | 0 |
Benefit (provision) for credit losses | 0 | 0 | 0 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 0 | 0 | 0 |
Net impairment of available-for-sale securities recognized in earnings | 0 | 0 | 0 |
Derivative gains (losses) | 0 | 0 | 0 |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on mortgage loans | 0 | 0 | 0 |
Other non-interest income (loss) | 0 | 0 | 0 |
Non-interest expense | ' | ' | ' |
Administrative expenses | 0 | 0 | 0 |
Real estate owned operations (expense) income | 0 | 0 | 0 |
Other expenses | -37 | -50 | 0 |
Segment Adjustments | 0 | 0 | 0 |
Income tax benefit (expense) | 23,929 | 838 | 49 |
Net income (loss) | 23,892 | 788 | 49 |
Total other comprehensive income (loss), net of taxes | 121 | 0 | 0 |
Comprehensive income (loss) | 24,013 | 788 | 49 |
Operating segments and corporate non-segment | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 5,031 | 6,870 | 8,345 |
Benefit (provision) for credit losses | 1,627 | -3,045 | -12,098 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 5,136 | 4,540 | 3,774 |
Net impairment of available-for-sale securities recognized in earnings | -989 | -1,954 | -2,186 |
Derivative gains (losses) | 6,821 | 1,977 | -3,594 |
Gains (losses) on trading securities | -1,598 | -1,674 | -954 |
Gains (losses) on mortgage loans | -336 | 1,010 | 829 |
Other non-interest income (loss) | 11,417 | 3,947 | 2,739 |
Non-interest expense | ' | ' | ' |
Administrative expenses | -1,805 | -1,561 | -1,506 |
Real estate owned operations (expense) income | 140 | -59 | -585 |
Other expenses | -424 | -573 | -392 |
Segment Adjustments | 343 | -33 | -38 |
Income tax benefit (expense) | 23,305 | 1,537 | 400 |
Net income (loss) | 48,668 | 10,982 | -5,266 |
Total other comprehensive income (loss), net of taxes | 2,932 | 5,057 | 4,036 |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
Reconciling Items | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 11,437 | 10,741 | 10,052 |
Benefit (provision) for credit losses | 838 | 1,155 | 1,396 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | -4,865 | -4,339 | -3,604 |
Net impairment of available-for-sale securities recognized in earnings | -521 | -214 | -115 |
Derivative gains (losses) | -4,189 | -4,425 | -6,158 |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on mortgage loans | 0 | 0 | 0 |
Other non-interest income (loss) | -2,357 | -2,951 | -1,609 |
Non-interest expense | ' | ' | ' |
Administrative expenses | 0 | 0 | 0 |
Real estate owned operations (expense) income | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 |
Segment Adjustments | -343 | 33 | 38 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 |
Reclassifications | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 10,400 | 9,942 | 9,391 |
Benefit (provision) for credit losses | 838 | 1,155 | 1,396 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | -4,171 | -3,507 | -2,905 |
Net impairment of available-for-sale securities recognized in earnings | -521 | -214 | -115 |
Derivative gains (losses) | -4,189 | -4,425 | -6,158 |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on mortgage loans | 0 | 0 | 0 |
Other non-interest income (loss) | -2,357 | -2,951 | -1,609 |
Non-interest expense | ' | ' | ' |
Administrative expenses | 0 | 0 | 0 |
Real estate owned operations (expense) income | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 |
Segment Adjustments | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 |
Segment Adjustments | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 1,037 | 799 | 661 |
Benefit (provision) for credit losses | 0 | 0 | 0 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | -694 | -832 | -699 |
Net impairment of available-for-sale securities recognized in earnings | 0 | 0 | 0 |
Derivative gains (losses) | 0 | 0 | 0 |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on mortgage loans | 0 | 0 | 0 |
Other non-interest income (loss) | 0 | 0 | 0 |
Non-interest expense | ' | ' | ' |
Administrative expenses | 0 | 0 | 0 |
Real estate owned operations (expense) income | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 |
Segment Adjustments | -343 | 33 | 38 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 |
Single-family Guarantee | Operating segments | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 320 | -147 | -23 |
Benefit (provision) for credit losses | 1,409 | -3,168 | -12,294 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 4,930 | 4,389 | 3,647 |
Net impairment of available-for-sale securities recognized in earnings | 0 | 0 | 0 |
Derivative gains (losses) | -3 | 0 | 0 |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on mortgage loans | 0 | 0 | 0 |
Other non-interest income (loss) | 1,165 | 931 | 1,216 |
Non-interest expense | ' | ' | ' |
Administrative expenses | -1,025 | -890 | -888 |
Real estate owned operations (expense) income | 124 | -62 | -596 |
Other expenses | -712 | -393 | -321 |
Segment Adjustments | -694 | -832 | -699 |
Income tax benefit (expense) | 282 | 8 | -42 |
Net income (loss) | 5,796 | -164 | -10,000 |
Total other comprehensive income (loss), net of taxes | 49 | -63 | 30 |
Comprehensive income (loss) | 5,845 | -227 | -9,970 |
Investments | Operating segments | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 3,525 | 5,726 | 7,168 |
Benefit (provision) for credit losses | 0 | 0 | 0 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 0 | 0 | 0 |
Net impairment of available-for-sale securities recognized in earnings | -974 | -1,831 | -1,833 |
Derivative gains (losses) | 6,806 | 1,970 | -3,597 |
Gains (losses) on trading securities | -1,588 | -1,755 | -993 |
Gains (losses) on mortgage loans | -817 | 303 | 529 |
Other non-interest income (loss) | 9,612 | 2,741 | 1,437 |
Non-interest expense | ' | ' | ' |
Administrative expenses | -523 | -430 | -398 |
Real estate owned operations (expense) income | 0 | 0 | 0 |
Other expenses | 349 | -1 | -2 |
Segment Adjustments | 1,037 | 799 | 661 |
Income tax benefit (expense) | -825 | 690 | 394 |
Net income (loss) | 16,602 | 8,212 | 3,366 |
Total other comprehensive income (loss), net of taxes | 3,685 | 3,185 | 3,107 |
Comprehensive income (loss) | 20,287 | 11,397 | 6,473 |
Multifamily | Operating segments | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Interest Income (Expense), Net | 1,186 | 1,291 | 1,200 |
Benefit (provision) for credit losses | 218 | 123 | 196 |
Non-interest income (loss) | ' | ' | ' |
Management and guarantee income | 206 | 151 | 127 |
Net impairment of available-for-sale securities recognized in earnings | -15 | -123 | -353 |
Derivative gains (losses) | 18 | 7 | 3 |
Gains (losses) on trading securities | -10 | 81 | 39 |
Gains (losses) on mortgage loans | 481 | 707 | 300 |
Other non-interest income (loss) | 640 | 275 | 86 |
Non-interest expense | ' | ' | ' |
Administrative expenses | -257 | -241 | -220 |
Real estate owned operations (expense) income | 16 | 3 | 11 |
Other expenses | -24 | -129 | -69 |
Segment Adjustments | 0 | 0 | 0 |
Income tax benefit (expense) | -81 | 1 | -1 |
Net income (loss) | 2,378 | 2,146 | 1,319 |
Total other comprehensive income (loss), net of taxes | -923 | 1,935 | 899 |
Comprehensive income (loss) | $1,455 | $4,081 | $2,218 |
Segment_Reporting_Comprehensiv
Segment Reporting - Comprehensive Income (Loss) of Segments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Comprehensive Income Loss Of Segments [Line Items] | ' | ' | ' |
Net income (loss) | $48,668 | $10,982 | ($5,266) |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | 2,406 | 4,769 | 3,465 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 316 | 414 | 509 |
Changes in defined benefit plans | 210 | -126 | 62 |
Total other comprehensive income (loss), net of taxes | 2,932 | 5,057 | 4,036 |
Comprehensive income (loss) | 51,600 | 16,039 | -1,230 |
All Other | ' | ' | ' |
Comprehensive Income Loss Of Segments [Line Items] | ' | ' | ' |
Net income (loss) | 23,892 | 788 | 49 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 |
Changes in defined benefit plans | 121 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 121 | 0 | 0 |
Comprehensive income (loss) | 24,013 | 788 | 49 |
Single-family Guarantee | Operating segments | ' | ' | ' |
Comprehensive Income Loss Of Segments [Line Items] | ' | ' | ' |
Net income (loss) | 5,796 | -164 | -10,000 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 |
Changes in defined benefit plans | 49 | -63 | 30 |
Total other comprehensive income (loss), net of taxes | 49 | -63 | 30 |
Comprehensive income (loss) | 5,845 | -227 | -9,970 |
Investments | Operating segments | ' | ' | ' |
Comprehensive Income Loss Of Segments [Line Items] | ' | ' | ' |
Net income (loss) | 16,602 | 8,212 | 3,366 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | 3,338 | 2,821 | 2,573 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 316 | 414 | 508 |
Changes in defined benefit plans | 31 | -50 | 26 |
Total other comprehensive income (loss), net of taxes | 3,685 | 3,185 | 3,107 |
Comprehensive income (loss) | 20,287 | 11,397 | 6,473 |
Multifamily | Operating segments | ' | ' | ' |
Comprehensive Income Loss Of Segments [Line Items] | ' | ' | ' |
Net income (loss) | 2,378 | 2,146 | 1,319 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ' | ' | ' |
Changes in unrealized gains (losses) related to available-for-sale securities | -932 | 1,948 | 892 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 1 |
Changes in defined benefit plans | 9 | -13 | 6 |
Total other comprehensive income (loss), net of taxes | -923 | 1,935 | 899 |
Comprehensive income (loss) | $1,455 | $4,081 | $2,218 |
Financial_Guarantees_Details
Financial Guarantees (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Related Securities Backed By Single Family Loans | Mortgage Related Securities Backed By Single Family Loans | Other Guarantee Commitments | Other Guarantee Commitments | Single Family Long Term Standby Commitments | Single Family Long Term Standby Commitments | Credit Enhanced Multifamily Housing Revenue Bonds | Credit Enhanced Multifamily Housing Revenue Bonds | HFA initiative | HFA initiative | Guarantees On Derivative Instruments | Guarantees On Derivative Instruments | Servicing Related Premium Guarantees | Servicing Related Premium Guarantees | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | ||||
Payment Guarantee | Payment Guarantee | Mortgage Related Securities Backed By Multifamily Mortgage Loans | Mortgage Related Securities Backed By Multifamily Mortgage Loans | ||||||||||||||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB of Issuances and Guarantees | ' | ' | ' | $425,600,000,000 | $439,300,000,000 | ' | ' | $9,900,000,000 | $6,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23,700,000,000 | $17,500,000,000 |
Maximum Exposure | ' | ' | ' | ' | ' | 29,160,000,000 | 23,455,000,000 | ' | ' | ' | ' | ' | ' | 9,856,000,000 | 10,306,000,000 | 281,000,000 | 210,000,000 | 71,809,000,000 | 50,715,000,000 | ' | ' |
Recognized Liability | 1,522,000,000 | 1,004,000,000 | ' | ' | ' | 791,000,000 | 575,000,000 | ' | ' | ' | ' | ' | ' | 239,000,000 | 789,000,000 | 0 | 0 | 731,000,000 | 430,000,000 | ' | ' |
Maximum Remaining Term | ' | ' | ' | ' | ' | '36 years | '37 years | ' | ' | ' | ' | ' | ' | '32 years | '33 years | '5 years | '5 years | '40 years | '41 years | ' | ' |
Reserve for Guarantee Losses | 111,000,000 | 183,000,000 | 198,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB of Guarantees | ' | ' | ' | ' | ' | ' | ' | 19,200,000,000 | 12,400,000,000 | 9,100,000,000 | 9,400,000,000 | 900,000,000 | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Advances Related To Multifamily Liquidity Guarantees | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration_of_Credit_and_Ot2
Concentration of Credit and Other Risks (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
numberofcorporatefamilies | Subsequent Event | Subsequent Event | Subsequent Event | Estimated Current Loan To Value Ratio Greater Than 100 Percent | Estimated Current Loan To Value Ratio Greater Than 100 Percent | Estimated Current Loan To Value Ratio Greater Than 100 Percent | Estimated Current Loan To Value Ratio Greater Than 100 Percent | Estimated Current Loan To Value Ratio Greater Than 100 Percent | Estimated Current Loan To Value Ratio Greater Than 100 Percent | 2005 to 2008 Legacy single-family book | 2005 to 2008 Legacy single-family book | 2005 to 2008 Legacy single-family book | 2005 to 2008 Legacy single-family book | 2005 to 2008 Legacy single-family book | 2005 to 2008 Legacy single-family book | Current Debt Service Coverage Ratio Less Than One | Current Debt Service Coverage Ratio Less Than One | Current Debt Service Coverage Ratio Less Than One | Current Debt Service Coverage Ratio Less Than One | Seller/Servicers | Seller/Servicers | Top Single-family Seller/Servicers | Wells Fargo Bank, N.A. | JPMorgan Chase Bank, N.A. | Largest Seller/Servicers based on UPB of aggregate repurchase requests outstanding | Top Single-family servicers based on loans serviced | Wells Fargo Bank, N.A. | JPMorgan Chase Bank, N.A. | Originated in 2013 | Top Multifamily servicers that serviced more than 10% of our multifamilly mortgage portfolio | Top Multifamily servicers that serviced more than 10% of our multifamilly mortgage portfolio | Mortgage Insurers | Mortgage Insurers | Mortgage insurer with S&P equivalent B rating | Mortgage insurer with S&P equivalent BBBplus rating | Mortgage insurer with no credit rating | MGIC | MGIC | Radian Guaranty Inc. | Radian Guaranty Inc. | Republic Mortgage Insurance Company | Republic Mortgage Insurance Company | Triad Guaranty Insurance Corporation | Triad Guaranty Insurance Corporation | Top Mortgage insurers each accounted for more than 10% of our Mortgage insurance coverage | Top Mortgage insurers each accounted for more than 10% of our Mortgage insurance coverage | PMI | PMI | Bond Insurers | Top Bond Insurers each accounted for more than 10% of our Bond insurance coverage | Top Bond Insurers each accounted for more than 10% of our Bond insurance coverage | FGIC | Cash and Other Investment Counterparties | Cash and Other Investment Counterparties | S&P short-term credit ratings of A-1 or above | S&P short-term credit ratings of A-1 or above | S&P short-term credit rating of A-2 | S&P short-term credit rating of A-2 | No third party credit rating | No third party credit rating | Federal Resrve Bank of New York | US Treasury | Non-Agency Mortgage-Related Security Issuers | ||||
Lehman Brothers Holdings, Inc. | Lehman Brothers Holdings, Inc. | Morgan Stanley | Single-family Unpaid Principal Balance | Single-family Unpaid Principal Balance | Multifamily Unpaid Principal Balance | Multifamily Unpaid Principal Balance | Single-family Unpaid Principal Balance | Single-family Unpaid Principal Balance | Single-family Credit Losses | Single-family Credit Losses | Multifamily Unpaid Principal Balance | Multifamily Unpaid Principal Balance | Single-family Loan Purchase Volume | Single-family Loan Purchase Volume | Single-family Loan Purchase Volume | Single-family Loan Purchase Volume | Single-family Loan Serviced | Single-family Loan Serviced | Single-family Loan Serviced | Single-family Unpaid Principal Balance | numberofcounterparties | Multifamily Loan Serviced | numberofcounterparties | numberofcounterparties | numberofcounterparties | numberofloans | numberofcounterparties | Mortgage insurance coverage | numberofcounterparties | Bond insurance coverage | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | ||||||||||||||||||||||||||||||||||
numberofcounterparties | numberofcounterparties | numberofcounterparties | numberofcounterparties | numberofcounterparties | numberofcounterparties | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid Principal Balance Related To Single-Family Credit Guarantee Portfolio | $1,700,000,000,000 | $1,600,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 15.00% | 2.00% | 3.00% | ' | ' | 16.00% | 24.00% | 81.00% | 87.00% | ' | ' | 3.00% | 3.00% | ' | ' | 64.00% | 17.00% | 13.00% | ' | 37.00% | 24.00% | 13.00% | 24.00% | ' | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78.00% | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Single Family Serious Delinquency Rate | ' | ' | ' | ' | ' | ' | ' | 9.90% | 12.70% | ' | ' | ' | ' | 8.80% | 9.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Average Debt Service Coverage Ratio For Multifamily Loans | ' | ' | ' | ' | ' | ' | ' | 0.95 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Current Loan To Value Ratio For Multifamily Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | 111.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Counterparties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | 2 | 2 | ' | ' | ' | 3 | ' | ' | ' | 3 | 1 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | 11 | ' | 1 | ' | 1 | ' | ' | ' |
UPB of loans subject to repurchase requests issued to Single-family Seller/Servicers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000,000 | 3,000,000,000 | ' | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of repurchase requests that were outstanding for four months Or More to Single-family Seller/Servicers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27.00% | 41.00% | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered losses from repurchase requests to Single-family Seller/Servicer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000,000 | 3,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans unpaid principal balance covered by counterparty agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 280,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of counterparty agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow Deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit (provision) for credit losses | 2,465,000,000 | -1,890,000,000 | -10,702,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB Of SFCGP Released From Repurchase Obligation | 389,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent Of SFCGP Released From Repurchase Obligations | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans covered by counterparty agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum loss limit from Mortgage Insurers for Single-family Credit Guarantee Portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPB of Single-family Credit Guarantee Portfolio with Mortgage insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 209,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount Of Difference In Recoveries For Loss On MGIC Pool Insurance Policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal Settlement Deferred Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds received from Mortgage Insurers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables outstanding from Mortgage Insurers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables Outstanding, Net of reserves, from Mortgage Insurers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Partial Claim Payment, Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 60.00% | ' | ' | ' | 50.00% | ' | ' | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Partial Claim Payment, Deferred Payment Obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Subsequent Partial Claim Payment Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | 75.00% | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Subsequent Partial Claim Payment Deferred Payment Obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Principal Exposure - Bond Insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Other Non-Mortgage Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,900,000,000 | 60,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities purchased under agreement to resell | 62,383,000,000 | 37,563,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,300,000,000 | ' | 6,100,000,000 | ' | 6,000,000,000 | ' | ' | ' | ' |
Cash and cash equivalents | 11,281,000,000 | 8,513,000,000 | 28,442,000,000 | 37,012,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,400,000,000 | 3,900,000,000 | ' |
Number of Corporate Families | ' | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment for estimated receivable related to Lehman settlement | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-interest income (loss) | 8,519,000,000 | -4,083,000,000 | -10,878,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000,000 |
Litigation settlement amount | ' | ' | ' | ' | $767,000,000 | ' | $625,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration_of_Credit_and_Ot3
Concentration of Credit and Other Risks - Concentration of Credit Risk - Single-Family Credit Guarantee Portfolio (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Year Of Origination | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 2.40% | 3.30% |
Originated in 2013 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.00% | ' |
Originated in 2012 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.00% | 0.00% |
Originated in 2011 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.20% | 0.10% |
Originated in 2010 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.40% | 0.30% |
Originated in 2009 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.90% | 0.70% |
Subtotal - New single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.20% | 0.30% |
HARP And Other Relief Refinance Loans | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 0.60% | 0.70% |
2005 to 2008 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 8.80% | 9.60% |
Pre-2005 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 3.20% | 3.20% |
Region | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 2.40% | 3.30% |
West | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 1.70% | 2.80% |
Northeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 3.20% | 3.80% |
North Central | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 1.80% | 2.50% |
Southeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 3.40% | 5.00% |
Southwest | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 1.40% | 1.70% |
States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 2.40% | 3.30% |
Arizona, California, Florida, Nevada | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 3.00% | 5.00% |
Illinois, Michigan, Ohio | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 2.10% | 3.00% |
New York, New Jersey | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 5.10% | 5.50% |
All Other | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 1.90% | 2.40% |
Single-family Unpaid Principal Balance | Year Of Origination | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Unpaid Principal Balance | Originated in 2013 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | ' |
Single-family Unpaid Principal Balance | Originated in 2012 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | 14.00% |
Single-family Unpaid Principal Balance | Originated in 2011 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 8.00% | 10.00% |
Single-family Unpaid Principal Balance | Originated in 2010 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 7.00% | 10.00% |
Single-family Unpaid Principal Balance | Originated in 2009 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 7.00% | 11.00% |
Single-family Unpaid Principal Balance | Subtotal - New single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 54.00% | 45.00% |
Single-family Unpaid Principal Balance | HARP And Other Relief Refinance Loans | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 21.00% | 18.00% |
Single-family Unpaid Principal Balance | 2005 to 2008 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | 24.00% |
Single-family Unpaid Principal Balance | Pre-2005 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 9.00% | 13.00% |
Single-family Unpaid Principal Balance | Region | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Unpaid Principal Balance | West | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 28.00% | 28.00% |
Single-family Unpaid Principal Balance | Northeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 26.00% | 25.00% |
Single-family Unpaid Principal Balance | North Central | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 18.00% | 18.00% |
Single-family Unpaid Principal Balance | Southeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | 17.00% |
Single-family Unpaid Principal Balance | Southwest | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 12.00% | 12.00% |
Single-family Unpaid Principal Balance | States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Unpaid Principal Balance | Arizona, California, Florida, Nevada | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 26.00% | 25.00% |
Single-family Unpaid Principal Balance | Illinois, Michigan, Ohio | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 11.00% | 11.00% |
Single-family Unpaid Principal Balance | New York, New Jersey | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 9.00% | 9.00% |
Single-family Unpaid Principal Balance | All Other | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 54.00% | 55.00% |
Single-family Credit Losses | Year Of Origination | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Credit Losses | Originated in 2013 | Concentration Risk Less Than One Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | ' |
Single-family Credit Losses | Originated in 2012 | Concentration Risk Less Than One Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | 1.00% |
Single-family Credit Losses | Originated in 2011 | Concentration Risk Less Than One Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | 1.00% |
Single-family Credit Losses | Originated in 2010 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | 1.00% |
Single-family Credit Losses | Originated in 2009 | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 2.00% | 1.00% |
Single-family Credit Losses | Subtotal - New single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 2.00% |
Single-family Credit Losses | HARP And Other Relief Refinance Loans | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 7.00% | 2.00% |
Single-family Credit Losses | 2005 to 2008 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 81.00% | 87.00% |
Single-family Credit Losses | Pre-2005 Legacy single-family book | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 9.00% | 9.00% |
Single-family Credit Losses | Region | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Credit Losses | West | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 24.00% | 44.00% |
Single-family Credit Losses | Northeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 15.00% | 8.00% |
Single-family Credit Losses | North Central | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 23.00% | 20.00% |
Single-family Credit Losses | Southeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 35.00% | 24.00% |
Single-family Credit Losses | Southwest | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 4.00% |
Single-family Credit Losses | States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 100.00% | 100.00% |
Single-family Credit Losses | Arizona, California, Florida, Nevada | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 47.00% | 54.00% |
Single-family Credit Losses | Illinois, Michigan, Ohio | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 19.00% | 15.00% |
Single-family Credit Losses | New York, New Jersey | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 2.00% |
Single-family Credit Losses | All Other | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 31.00% | 29.00% |
Concentration_of_Credit_and_Ot4
Concentration of Credit and Other Risks - Certain Higher-Risk Categories in the Single-Family Credit Guarantee Portfolio (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Interest Only | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 12.50% | 16.30% |
Option ARM | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 12.30% | 16.30% |
Alt-A | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 10.10% | 11.40% |
Original Loan To Value Ratio Greater Than 90 Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 3.20% | 4.80% |
Lower FICO scores at origination (less than 620) | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Single Family Serious Delinquency Rate | 10.00% | 12.20% |
Single-family Unpaid Principal Balance | Interest Only | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 2.00% | 3.00% |
Single-family Unpaid Principal Balance | Option ARM | Concentration Risk Less Than One Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | 1.00% |
Single-family Unpaid Principal Balance | Alt-A | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 5.00% |
Single-family Unpaid Principal Balance | Original Loan To Value Ratio Greater Than 90 Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | 13.00% |
Single-family Unpaid Principal Balance | Lower FICO scores at origination (less than 620) | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 3.00% |
Concentration_of_Credit_and_Ot5
Concentration of Credit and Other Risks - Concentration of Credit Risk - Multifamily Mortgage Portfolio (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Billions, unless otherwise specified | ||
States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | $132.80 | $127.40 |
Multifamily Delinquency Rate | 0.09% | 0.19% |
California | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 22.4 | 21.1 |
Multifamily Delinquency Rate | 0.03% | 0.12% |
Texas | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 16.7 | 15.9 |
Multifamily Delinquency Rate | 0.02% | 0.13% |
New York | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 11.4 | 10.7 |
Multifamily Delinquency Rate | 0.12% | 0.09% |
Florida | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 9.3 | 8.4 |
Multifamily Delinquency Rate | 0.28% | 0.12% |
Virginia | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 7 | 6.6 |
Multifamily Delinquency Rate | 0.37% | 0.00% |
Maryland | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 6.7 | 6.9 |
Multifamily Delinquency Rate | 0.00% | 0.00% |
All Other States Excluding Top Six States Based On Highest Unpaid Principal Balance | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 59.3 | 57.8 |
Multifamily Delinquency Rate | 0.08% | 0.32% |
Region | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 132.8 | 127.4 |
Multifamily Delinquency Rate | 0.09% | 0.19% |
Northeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 37.5 | 36.1 |
Multifamily Delinquency Rate | 0.10% | 0.04% |
West | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 33.8 | 31.8 |
Multifamily Delinquency Rate | 0.07% | 0.09% |
Southwest | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 26.2 | 25.4 |
Multifamily Delinquency Rate | 0.05% | 0.22% |
Southeast | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 24.1 | 23.4 |
Multifamily Delinquency Rate | 0.16% | 0.54% |
North Central | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 11.2 | 10.7 |
Multifamily Delinquency Rate | 0.07% | 0.19% |
Original Loan To Value Ratio Greater Than 80 Percent | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | 5.6 | 5.8 |
Multifamily Delinquency Rate | 0.19% | 2.31% |
Original Debt Service Coverage Ratio Below One Point One | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Unpaid Principal Balance Of Multifamily Mortgage Portfolio | $2.20 | $2.30 |
Multifamily Delinquency Rate | 0.00% | 2.97% |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value Disclosures [Line Items] | ' | ' | ' |
Net transfer in (out) between Level 1 and Level 2 fair value assets | ($27,000,000) | $1,000,000 | ' |
Net transfer in (out) between Level 1 and Level 2 fair value liabilities | -5,000,000 | 1,000,000 | ' |
Unpaid Principal Balance Of Loans Where Whole Loan Market Is Principal Market | 101,200,000,000 | 110,000,000,000 | ' |
Unpaid Principal Balance Of Loans Where GSE Securitization Market Is Principal Market | 1,500,000,000,000 | 1,500,000,000,000 | ' |
Decrease (Increase) Of Fair Value Of Mortgage Loans Without Benefits Reflected In The Pricing Of HARP Loans | 18,500,000,000 | 11,200,000,000 | ' |
Total Fair Value Of The HARP Loans Presented In Consolidated Fair Value Balance Sheets | 145,000,000,000 | 153,100,000,000 | ' |
Multifamily Held-For-Sale Loans with Fair Value Option Elected | ' | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' | ' |
Fair Value, Option, Changes in Fair Value, Gain (Loss) | -300,000,000 | 1,000,000,000 | 800,000,000 |
Debt securities with Fair Value Option Elected | ' | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' | ' |
Fair Value, Option, Changes in Fair Value, Gain (Loss) | ($37,000,000) | $16,000,000 | $91,000,000 |
Fair_Value_Disclosures_Assets_
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | $8,727,000,000 | $14,238,000,000 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 1,063,000,000 | 657,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 180,000,000 | 178,000,000 |
Net Cash Pledged As Collateral | 871,000,000 | 8,200,000,000 |
Net interest receivable (payable) of derivative assets/liabilities | -600,000,000 | -800,000,000 |
Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 59,000,000 | 70,000,000 |
Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 2,683,000,000 | 2,187,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 128,919,000,000 | 174,896,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 23,404,000,000 | 41,492,000,000 |
Total investments in securities | 152,323,000,000 | 216,388,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | 8,727,000,000 | 14,238,000,000 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 1,063,000,000 | 657,000,000 |
Other Assets [Abstract] | ' | ' |
Guarantee Assets | 1,611,000,000 | 1,029,000,000 |
All other, at fair value | 9,000,000 | 114,000,000 |
Total other assets | 1,620,000,000 | 1,143,000,000 |
Total Assets at Fair value | 163,733,000,000 | 232,426,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 180,000,000 | 178,000,000 |
Total liabilities carried at fair value on a recurring basis | 2,922,000,000 | 2,435,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 59,000,000 | 70,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 2,683,000,000 | 2,187,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Total Derivatives Before Netting Adjustments [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 14,231,000,000 | 24,193,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 13,627,000,000 | 31,089,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 10,019,000,000 | 13,965,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 13,317,000,000 | 30,244,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Option-Based Derivatives [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 4,112,000,000 | 10,097,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 204,000,000 | 750,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other Derivative [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 100,000,000 | 131,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 106,000,000 | 95,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Netting Adjustments | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | -13,168,000,000 | -23,536,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | -13,447,000,000 | -30,911,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Mortage-related securities | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 128,919,000,000 | 174,896,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 16,768,000,000 | 20,979,000,000 |
Total investments in securities | 145,687,000,000 | 195,875,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 40,659,000,000 | 58,515,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 9,349,000,000 | 10,354,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 10,797,000,000 | 15,280,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 7,180,000,000 | 10,338,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 167,000,000 | 209,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 98,000,000 | 131,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 30,338,000,000 | 51,307,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 27,499,000,000 | 26,457,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,574,000,000 | 5,717,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8,706,000,000 | 10,904,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,495,000,000 | 5,798,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 684,000,000 | 709,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 141,000,000 | 156,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Non-Mortgage-Related Securities [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 6,636,000,000 | 20,513,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Asset-backed securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 292,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Treasury bills | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 2,254,000,000 | 1,160,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Treasury notes | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 4,382,000,000 | 19,061,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 6,636,000,000 | 20,221,000,000 |
Total investments in securities | 6,636,000,000 | 20,221,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | 0 | 0 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 64,000,000 |
Other Assets [Abstract] | ' | ' |
Guarantee Assets | 0 | 0 |
All other, at fair value | 0 | 0 |
Total other assets | 0 | 0 |
Total Assets at Fair value | 6,636,000,000 | 20,285,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 8,000,000 |
Total liabilities carried at fair value on a recurring basis | 0 | 8,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Total Derivatives Before Netting Adjustments [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 64,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 8,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 27,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 5,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Option-Based Derivatives [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Derivative [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 37,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 3,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Netting Adjustments | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortage-related securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Non-Mortgage-Related Securities [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 6,636,000,000 | 20,221,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset-backed securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Treasury bills | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 2,254,000,000 | 1,160,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Treasury notes | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 4,382,000,000 | 19,061,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 76,770,000,000 | 119,901,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 16,122,000,000 | 19,681,000,000 |
Total investments in securities | 92,892,000,000 | 139,582,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | 8,727,000,000 | 0 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 14,220,000,000 | 24,109,000,000 |
Other Assets [Abstract] | ' | ' |
Guarantee Assets | 0 | 0 |
All other, at fair value | 0 | 0 |
Total other assets | 0 | 0 |
Total Assets at Fair value | 115,839,000,000 | 163,691,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 13,291,000,000 | 31,014,000,000 |
Total liabilities carried at fair value on a recurring basis | 14,505,000,000 | 31,084,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 59,000,000 | 70,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 1,155,000,000 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Total Derivatives Before Netting Adjustments [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 14,220,000,000 | 24,109,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 13,291,000,000 | 31,014,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 10,009,000,000 | 13,920,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 13,022,000,000 | 30,213,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Option-Based Derivatives [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 4,112,000,000 | 10,097,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 201,000,000 | 749,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Derivative [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 99,000,000 | 92,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 68,000,000 | 52,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Netting Adjustments | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortage-related securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 16,122,000,000 | 19,389,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 38,720,000,000 | 56,713,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 9,006,000,000 | 9,189,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 10,666,000,000 | 15,117,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 6,959,000,000 | 10,026,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 155,000,000 | 193,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 24,000,000 | 39,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 27,229,000,000 | 47,878,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 133,000,000 | 135,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Non-Mortgage-Related Securities [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 292,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 292,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Treasury bills | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Treasury notes | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 52,149,000,000 | 54,995,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 646,000,000 | 1,590,000,000 |
Total investments in securities | 52,795,000,000 | 56,585,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | 0 | 14,238,000,000 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 11,000,000 | 20,000,000 |
Other Assets [Abstract] | ' | ' |
Guarantee Assets | 1,611,000,000 | 1,029,000,000 |
All other, at fair value | 9,000,000 | 114,000,000 |
Total other assets | 1,620,000,000 | 1,143,000,000 |
Total Assets at Fair value | 54,426,000,000 | 71,986,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 336,000,000 | 67,000,000 |
Total liabilities carried at fair value on a recurring basis | 1,864,000,000 | 2,254,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 1,528,000,000 | 2,187,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Total Derivatives Before Netting Adjustments [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 11,000,000 | 20,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 336,000,000 | 67,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 10,000,000 | 18,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 295,000,000 | 26,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option-Based Derivatives [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 3,000,000 | 1,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Derivative [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 1,000,000 | 2,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 38,000,000 | 40,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Netting Adjustments | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortage-related securities | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 52,149,000,000 | 54,995,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 646,000,000 | 1,590,000,000 |
Total investments in securities | 52,795,000,000 | 56,585,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 1,939,000,000 | 1,802,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 343,000,000 | 1,165,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 131,000,000 | 163,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 221,000,000 | 312,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 12,000,000 | 16,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 74,000,000 | 92,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,109,000,000 | 3,429,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 27,499,000,000 | 26,457,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,574,000,000 | 5,717,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8,706,000,000 | 10,904,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,495,000,000 | 5,798,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 684,000,000 | 709,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 8,000,000 | 21,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Non-Mortgage-Related Securities [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-backed securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Treasury bills | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Treasury notes | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Total investments in securities | 0 | 0 |
Mortgage Loans [Abstract] | ' | ' |
Mortgage loans, held for sale, at fair value | 0 | 0 |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | -13,168,000,000 | -23,536,000,000 |
Other Assets [Abstract] | ' | ' |
Guarantee Assets | 0 | 0 |
All other, at fair value | 0 | 0 |
Total other assets | 0 | 0 |
Total Assets at Fair value | -13,168,000,000 | -23,536,000,000 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | -13,447,000,000 | -30,911,000,000 |
Total liabilities carried at fair value on a recurring basis | -13,447,000,000 | -30,911,000,000 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Held by consolidated trusts | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Freddie Mac parent | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Other debt at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Total Derivatives Before Netting Adjustments [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Option-Based Derivatives [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Other Derivative [Member] | ' | ' |
Derivative Assets Net [Abstract] | ' | ' |
Derivative Assets | 0 | 0 |
Derivative Liabilities Net [Abstract] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Mortage-related securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Non-Mortgage-Related Securities [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Asset-backed securities | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Treasury bills | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Netting and Collateral [Member] | Treasury notes | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | $0 | $0 |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Securities Recorded At Fair Value [Member] | ' | ' |
Liabilities: | ' | ' |
Begining Balance | $2,187 | $0 |
Included in Earnings | 11 | -16 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized (gains) losses | 11 | -16 |
Purchases | 0 | 0 |
Issues | 1,130 | 0 |
Sales | 0 | 0 |
Settlements, Net | -670 | -812 |
Transfers into Level 3 | 0 | 3,015 |
Transfers out of Level 3 | -1,130 | 0 |
Ending Balance | 1,528 | 2,187 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized (Gains) Losses Still Held - Liabilities | 4 | -6 |
Net Derivatives [Member] | ' | ' |
Liabilities: | ' | ' |
Begining Balance | 47 | -17 |
Included in Earnings | 301 | 30 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized (gains) losses | 301 | 30 |
Purchases | 0 | 0 |
Issues | 12 | 3 |
Sales | 0 | 0 |
Settlements, Net | -35 | -2 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 33 |
Ending Balance | 325 | 47 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized (Gains) Losses Still Held - Liabilities | 274 | 15 |
Available-For-Sale Mortgage-Related Securities [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 54,995 | 59,310 |
Included in Earnings | -1,429 | -1,931 |
Included in Other Comprehensive Income | 9,397 | 7,676 |
Total realized and unrealized gains (losses) | 7,968 | 5,745 |
Purchases | 229 | 0 |
Issues | 0 | 0 |
Sales | -3,134 | -828 |
Settlements, net | -7,934 | -9,152 |
Transfers into Level 3 | 25 | 40 |
Transfers out of Level 3 | 0 | -120 |
Ending Balance | 52,149 | 54,995 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -1,496 | -2,030 |
Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | ' | ' |
Assets: | ' | ' |
Beginning Balance | 1,802 | 2,048 |
Included in Earnings | 2 | 0 |
Included in Other Comprehensive Income | 109 | 18 |
Total realized and unrealized gains (losses) | 111 | 18 |
Purchases | 239 | 0 |
Issues | 0 | 0 |
Sales | -86 | 0 |
Settlements, net | -152 | -144 |
Transfers into Level 3 | 25 | 0 |
Transfers out of Level 3 | 0 | -120 |
Ending Balance | 1,939 | 1,802 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | ' | ' |
Assets: | ' | ' |
Beginning Balance | 163 | 172 |
Included in Earnings | 0 | 0 |
Included in Other Comprehensive Income | -3 | 1 |
Total realized and unrealized gains (losses) | -3 | 1 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | -29 | -31 |
Transfers into Level 3 | 0 | 21 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 131 | 163 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-For-Sale Mortgage-Related Securities [Member] | Ginnie Mae | ' | ' |
Assets: | ' | ' |
Beginning Balance | 16 | 12 |
Included in Earnings | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | -4 | -4 |
Transfers into Level 3 | 0 | 8 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 12 | 16 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-For-Sale Mortgage-Related Securities [Member] | CMBS | ' | ' |
Assets: | ' | ' |
Beginning Balance | 3,429 | 3,756 |
Included in Earnings | 6 | 76 |
Included in Other Comprehensive Income | -266 | -38 |
Total realized and unrealized gains (losses) | -260 | 38 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | -36 | -331 |
Settlements, net | -24 | -34 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 3,109 | 3,429 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-For-Sale Mortgage-Related Securities [Member] | Subprime | ' | ' |
Assets: | ' | ' |
Beginning Balance | 26,457 | 27,999 |
Included in Earnings | -1,260 | -1,274 |
Included in Other Comprehensive Income | 6,648 | 4,301 |
Total realized and unrealized gains (losses) | 5,388 | 3,027 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | -403 | 0 |
Settlements, net | -3,943 | -4,569 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 27,499 | 26,457 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -1,258 | -1,274 |
Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | ' | ' |
Assets: | ' | ' |
Beginning Balance | 5,717 | 5,865 |
Included in Earnings | -61 | -552 |
Included in Other Comprehensive Income | 1,694 | 1,417 |
Total realized and unrealized gains (losses) | 1,633 | 865 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | -75 | -15 |
Settlements, net | -701 | -998 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 6,574 | 5,717 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -58 | -556 |
Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | ' | ' |
Assets: | ' | ' |
Beginning Balance | 10,904 | 10,868 |
Included in Earnings | -128 | -196 |
Included in Other Comprehensive Income | 1,341 | 1,822 |
Total realized and unrealized gains (losses) | 1,213 | 1,626 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | -2,001 | 0 |
Settlements, net | -1,410 | -1,601 |
Transfers into Level 3 | 0 | 11 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 8,706 | 10,904 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -179 | -196 |
Available-For-Sale Mortgage-Related Securities [Member] | Obligations of states and political subdivisions | ' | ' |
Assets: | ' | ' |
Beginning Balance | 5,798 | 7,824 |
Included in Earnings | 13 | 19 |
Included in Other Comprehensive Income | -188 | 108 |
Total realized and unrealized gains (losses) | -175 | 127 |
Purchases | -10 | 0 |
Issues | 0 | 0 |
Sales | -533 | -482 |
Settlements, net | -1,585 | -1,671 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 3,495 | 5,798 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-For-Sale Mortgage-Related Securities [Member] | Manufactured housing | ' | ' |
Assets: | ' | ' |
Beginning Balance | 709 | 766 |
Included in Earnings | -1 | -4 |
Included in Other Comprehensive Income | 62 | 47 |
Total realized and unrealized gains (losses) | 61 | 43 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | -86 | -100 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 684 | 709 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -1 | -4 |
Trading Mortgage Related Securities [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 1,590 | 2,516 |
Included in Earnings | -93 | -519 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | -93 | -519 |
Purchases | 1,276 | 20 |
Issues | 269 | 113 |
Sales | -1,478 | -81 |
Settlements, net | -107 | -260 |
Transfers into Level 3 | 44 | 190 |
Transfers out of Level 3 | -855 | -389 |
Ending Balance | 646 | 1,590 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -96 | -521 |
Trading Mortgage Related Securities [Member] | Freddie Mac | ' | ' |
Assets: | ' | ' |
Beginning Balance | 1,165 | 1,866 |
Included in Earnings | -50 | -389 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | -50 | -389 |
Purchases | 1,271 | 25 |
Issues | 269 | 95 |
Sales | -1,476 | -76 |
Settlements, net | -64 | -206 |
Transfers into Level 3 | 1 | 92 |
Transfers out of Level 3 | -773 | -242 |
Ending Balance | 343 | 1,165 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -53 | -390 |
Trading Mortgage Related Securities [Member] | Fannie Mae | ' | ' |
Assets: | ' | ' |
Beginning Balance | 312 | 538 |
Included in Earnings | -42 | -131 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | -42 | -131 |
Purchases | 2 | -5 |
Issues | 0 | 0 |
Sales | -2 | 5 |
Settlements, net | -25 | -35 |
Transfers into Level 3 | 43 | 0 |
Transfers out of Level 3 | -67 | -60 |
Ending Balance | 221 | 312 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -42 | -131 |
Trading Mortgage Related Securities [Member] | Ginnie Mae | ' | ' |
Assets: | ' | ' |
Beginning Balance | 92 | 22 |
Included in Earnings | -1 | 1 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | -1 | 1 |
Purchases | 3 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | -15 | -16 |
Transfers into Level 3 | 0 | 98 |
Transfers out of Level 3 | -5 | -13 |
Ending Balance | 74 | 92 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | -1 | 1 |
Trading Mortgage Related Securities [Member] | Other | ' | ' |
Assets: | ' | ' |
Beginning Balance | 21 | 90 |
Included in Earnings | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Purchases | 0 | 0 |
Issues | 0 | 18 |
Sales | 0 | -10 |
Settlements, net | -3 | -3 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -10 | -74 |
Ending Balance | 8 | 21 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | -1 |
Loans Receivable [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 14,238 | 9,710 |
Included in Earnings | 0 | 1,011 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 1,011 |
Purchases | 0 | 25,340 |
Issues | 0 | 0 |
Sales | 0 | -21,764 |
Settlements, net | 0 | -59 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -14,238 | 0 |
Ending Balance | 0 | 14,238 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 0 | 263 |
Other Asset [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 1,143 | 903 |
Included in Earnings | 34 | -60 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 34 | -60 |
Purchases | 0 | 0 |
Issues | 688 | 382 |
Sales | -135 | 0 |
Settlements, net | -110 | -82 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 1,620 | 1,143 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 11 | -60 |
Guarantee Asset [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 1,029 | 752 |
Included in Earnings | 4 | -23 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 4 | -23 |
Purchases | 0 | 0 |
Issues | 688 | 382 |
Sales | 0 | 0 |
Settlements, net | -110 | -82 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 1,611 | 1,029 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | 4 | -23 |
All Other Assets [Member] | ' | ' |
Assets: | ' | ' |
Beginning Balance | 114 | 151 |
Included in Earnings | 30 | -37 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 30 | -37 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | -135 | 0 |
Settlements, net | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 9 | 114 |
Unrealized Gains (Losses) Still Held: | ' | ' |
Unrealized Gains (Losses) Still Held - Assets | $7 | ($37) |
Fair_Value_Disclosures_Assets_1
Fair Value Disclosures - Assets Measured at Fair Value on a Non-Recurring Basis (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Gains (Losses) On Assets Measured At Fair Value On A Non Recurring Basis | ($28,000,000) | ($71,000,000) | ($134,000,000) |
Carrying Amount Of REO Written Down To Fair Value | 1,700,000,000 | 700,000,000 | ' |
Estimated Cost To Sell | 118,000,000 | 50,000,000 | ' |
Held For Investment Mortgage Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Gains (Losses) On Assets Measured At Fair Value On A Non Recurring Basis | 22,000,000 | -49,000,000 | -16,000,000 |
Reo Net At Fair Value [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Gains (Losses) On Assets Measured At Fair Value On A Non Recurring Basis | -50,000,000 | -22,000,000 | -118,000,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Held-For-Investment Mortgage Loans | 0 | 0 | ' |
REO, net | 0 | 0 | ' |
Total Assets at Fair value | 0 | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Held-For-Investment Mortgage Loans | 0 | 0 | ' |
REO, net | 0 | 0 | ' |
Total Assets at Fair value | 0 | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 | ' |
REO, net | 1,837,000,000 | 776,000,000 | ' |
Total Assets at Fair value | 2,352,000,000 | 1,801,000,000 | ' |
Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 | ' |
Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
REO, net | 1,837,000,000 | 776,000,000 | ' |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 | ' |
REO, net | 1,837,000,000 | 776,000,000 | ' |
Total Assets at Fair value | $2,352,000,000 | $1,801,000,000 | ' |
Fair_Value_Disclosures_Quantit
Fair Value Disclosures - Quantitative Information about Level 3 Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Mortgage Loans [Abstract] | ' | ' |
Loans Held-for-sale, Fair Value Disclosure | $8,727,000,000 | $14,238,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 128,919,000,000 | 174,896,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 23,404,000,000 | 41,492,000,000 |
Investments, Fair Value Disclosure | 152,323,000,000 | 216,388,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Loans Held-for-sale, Fair Value Disclosure | 8,727,000,000 | 14,238,000,000 |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | 1,611,000,000 | 1,029,000,000 |
All Other Assets Fair Value Disclosure | 9,000,000 | 114,000,000 |
Total other assets | 1,620,000,000 | 1,143,000,000 |
Net Derivative Asset | -883,000,000 | -479,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Debt Securities Recorded At Fair Value [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Debt Securities Recorded at Fair Value | 2,683,000,000 | 2,187,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Mortgage-related securities | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 128,919,000,000 | 174,896,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 16,768,000,000 | 20,979,000,000 |
Investments, Fair Value Disclosure | 145,687,000,000 | 195,875,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 40,659,000,000 | 58,515,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 9,349,000,000 | 10,354,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 10,797,000,000 | 15,280,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 7,180,000,000 | 10,338,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 167,000,000 | 209,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 98,000,000 | 131,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 30,338,000,000 | 51,307,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 27,499,000,000 | 26,457,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,574,000,000 | 5,717,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8,706,000,000 | 10,904,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,495,000,000 | 5,798,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 684,000,000 | 709,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 141,000,000 | 156,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 52,149,000,000 | 54,995,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 646,000,000 | 1,590,000,000 |
Investments, Fair Value Disclosure | 52,795,000,000 | 56,585,000,000 |
Mortgage Loans [Abstract] | ' | ' |
Loans Held-for-sale, Fair Value Disclosure | 0 | 14,238,000,000 |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | 1,611,000,000 | 1,029,000,000 |
All Other Assets Fair Value Disclosure | 9,000,000 | 114,000,000 |
Total other assets | 1,620,000,000 | 1,143,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Debt Securities Recorded at Fair Value | 1,528,000,000 | 2,187,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Median of External Sources [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Debt Securities Recorded at Fair Value | 528,000,000 | 1,188,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Single External Source [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Debt Securities Recorded at Fair Value | 1,000,000,000 | 999,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100 | 101.7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100 | 99.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100 | 101.7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100 | 99.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100.1 | 102 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities Recorded At Fair Value [Member] | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 100 | 99.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Net Derivative Liability | 325,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Single External Source [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Net Derivative Liability | 283,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Discounted Cash Flows [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Net Derivative Liability | 37,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Other | ' | ' |
Liabilities [Abstract] | ' | ' |
Net Derivative Liability | 5,000,000 | 47,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 0.8 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 0.8 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Net Derivatives [Member] | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 0.8 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-related securities | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 52,149,000,000 | 54,995,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 646,000,000 | 1,590,000,000 |
Investments, Fair Value Disclosure | 52,795,000,000 | 56,585,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 1,939,000,000 | 1,802,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 343,000,000 | 1,165,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | Risk Metric [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 1,547,000,000 | 1,477,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | Single External Source [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 133,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | Discounted Cash Flows [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 297,000,000 | 1,112,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Freddie Mac | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 259,000,000 | 325,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 46,000,000 | 53,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 131,000,000 | 163,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 221,000,000 | 312,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 26,000,000 | 78,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | Single External Source [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 91,000,000 | 65,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | Discounted Cash Flows [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 191,000,000 | 312,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Fannie Mae | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 14,000,000 | 20,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 30,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Ginnie Mae | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 12,000,000 | 16,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 74,000,000 | 92,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Ginnie Mae | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,000,000 | 8,000,000 |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 74,000,000 | 87,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Ginnie Mae | Discounted Cash Flows [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,000,000 | 8,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Ginnie Mae | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 5,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | CMBS | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,109,000,000 | 3,429,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | CMBS | Risk Metric [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 432,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | CMBS | Single External Source [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 2,942,000,000 | 2,462,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | CMBS | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 167,000,000 | 535,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Subprime | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 27,499,000,000 | 26,457,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Subprime | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 25,367,000,000 | 24,890,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Subprime | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 2,132,000,000 | 1,567,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option ARM | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,574,000,000 | 5,717,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option ARM | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 4,995,000,000 | 5,631,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option ARM | Discounted Cash Flows [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 705,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Option ARM | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 874,000,000 | 86,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Alt-A and other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8,706,000,000 | 10,904,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Alt-A and other | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,503,000,000 | 8,562,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Alt-A and other | Single External Source [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 4,028,000,000 | 1,901,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Alt-A and other | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 1,175,000,000 | 441,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of states and political subdivisions | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,495,000,000 | 5,798,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of states and political subdivisions | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 3,067,000,000 | 5,533,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of states and political subdivisions | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 428,000,000 | 265,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Manufactured housing | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 684,000,000 | 709,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Manufactured housing | Median of External Sources [Member] | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 577,000,000 | 693,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Manufactured housing | Other | ' | ' |
Available-For-Sale, at Fair Value: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 107,000,000 | 16,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 8,000,000 | 21,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | Median of External Sources [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 9,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | Single External Source [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 7,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | Discounted Cash Flows [Member] | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | ' | 12,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other | Other | ' | ' |
Trading, at Fair Value: | ' | ' |
Trading Securities, Fair Value Disclosure | 1,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Weighted Average [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | '2 years 5 months 9 days | '10 months 21 days |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 99.3 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Minimum [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | '2 years 3 months | '10 months 21 days |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 99.3 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Maximum [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | '5 years 2 months 1 day | '1 year 11 months 23 days |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Freddie Mac | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 99.3 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 104.7 | 105.2 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 110.5 | 116 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 104.1 | 103.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 110.5 | 116 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 105.3 | 106 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Fannie Mae | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 110.5 | 116 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Weighted Average [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | ' | '12 years |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 90.9 | 99.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Minimum [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | ' | '9 years 3 months 18 days |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 90.9 | 99.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Maximum [Member] | Risk Metric [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Effective Duration | ' | '14 years 9 months 18 days |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | CMBS | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 90.9 | 99.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Subprime | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 68.7 | 59.2 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Subprime | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 64.5 | 54.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Subprime | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 73.8 | 64.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 64.4 | 47.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 7.29% | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 60.8 | 43.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 4.61% | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 67 | 52.6 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Option ARM | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 9.44% | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 75.7 | 73.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Weighted Average [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 83.4 | 71.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 72.5 | 69.6 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Minimum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 83.4 | 71.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 79.1 | 77.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Alt-A and other | Maximum [Member] | Single External Source [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 83.4 | 71.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Obligations of states and political subdivisions | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 99.2 | 102.7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Obligations of states and political subdivisions | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 98.7 | 102.3 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Obligations of states and political subdivisions | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 99.7 | 103.2 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Manufactured housing | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 89.7 | 82.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Manufactured housing | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 86.7 | 80 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-For-Sale Mortgage-Related Securities [Member] | Manufactured housing | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 92.8 | 85.5 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Freddie Mac | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 3.64% | 5.02% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Freddie Mac | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | -0.05% | -337.02% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Freddie Mac | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 94.41% | 32.51% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Fannie Mae | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 1.99% | 8.10% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Fannie Mae | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | -22.57% | -12.63% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trading Mortgage Related Securities [Member] | Fannie Mae | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 22.95% | 32.51% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Loans, Held-for-sale, at fair value | Discounted Cash Flows [Member] | ' | ' |
Mortgage Loans [Abstract] | ' | ' |
Loans Held-for-sale, Fair Value Disclosure | ' | 14,238,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Loans, Held-for-sale, at fair value | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
DSCR | ' | 1.97 |
Current LTV | ' | 69.00% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Loans, Held-for-sale, at fair value | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
DSCR | ' | 1.25 |
Current LTV | ' | 19.00% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Loans, Held-for-sale, at fair value | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
DSCR | ' | 6.88 |
Current LTV | ' | 80.00% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Asset [Member] | ' | ' |
Other assets: | ' | ' |
Total other assets | 1,620,000,000 | 1,143,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | ' | ' |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | 1,611,000,000 | 1,029,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Median of External Sources [Member] | ' | ' |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | 448,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Discounted Cash Flows [Member] | ' | ' |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | 1,163,000,000 | 870,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Other | ' | ' |
Other assets: | ' | ' |
Guarantee Assets Fair Value Disclosure | ' | 159,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Weighted Average [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 19.2 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 0.53% | 0.55% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Minimum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 11.6 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 0.16% | 0.00% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Maximum [Member] | Median of External Sources [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
External Pricing Source(s) | 25.4 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Guarantee Asset [Member] | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
OAS | 2.02% | 3.68% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | ' | ' |
Other assets: | ' | ' |
All Other Assets Fair Value Disclosure | 9,000,000 | 114,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | Discounted Cash Flows [Member] | ' | ' |
Other assets: | ' | ' |
All Other Assets Fair Value Disclosure | ' | 112,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | Other | ' | ' |
Other assets: | ' | ' |
All Other Assets Fair Value Disclosure | 9,000,000 | 2,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | Weighted Average [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Prepayment rate | ' | 21.23% |
Servicing income per loan | ' | 0.25% |
Cost to service per loan | ' | 141 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | Minimum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Prepayment rate | ' | 7.73% |
Servicing income per loan | ' | 0.19% |
Cost to service per loan | ' | 78 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | All Other Assets [Member] | Maximum [Member] | Discounted Cash Flows [Member] | ' | ' |
Fair Value Inputs, Quantitative Information [Abstract] | ' | ' |
Prepayment rate | ' | 39.87% |
Servicing income per loan | ' | 0.52% |
Cost to service per loan | ' | $354 |
Fair_Value_Disclosures_Fair_Va1
Fair Value Disclosures Fair Value Disclosures - Quantitative Information about Non-Recurring Level 3 Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
REO Disposition Severity Ratio | 35.80% | 39.50% |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 |
Reo Net Fair Value Disclosure | 1,837,000,000 | 776,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Income Capitalization [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Held-For-Investment Mortgage Loans | 298,000,000 | 711,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Third-Party Appraisal [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Held-For-Investment Mortgage Loans | 217,000,000 | 314,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Minimum [Member] | Income Capitalization [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Capitalization rates | 6.00% | 5.00% |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Minimum [Member] | Third-Party Appraisal [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Property Value | 4,000,000 | 2,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Maximum [Member] | Income Capitalization [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Capitalization rates | 9.00% | 9.00% |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Maximum [Member] | Third-Party Appraisal [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Property Value | 44,000,000 | 43,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Weighted Average [Member] | Income Capitalization [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Capitalization rates | 7.00% | 7.00% |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Held For Investment Mortgage Loans [Member] | Weighted Average [Member] | Third-Party Appraisal [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Property Value | 27,000,000 | 21,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Reo Net Fair Value Disclosure | 1,837,000,000 | 776,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | Internal Model [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Reo Net Fair Value Disclosure | 1,837,000,000 | 771,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | Other Valuation Techniques [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Reo Net Fair Value Disclosure | ' | 5,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | Minimum [Member] | Internal Model [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Fair Value Inputs Historical Average Sale Proceeds By State Per Property | 17,500 | 32,186 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | Maximum [Member] | Internal Model [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Fair Value Inputs Historical Average Sale Proceeds By State Per Property | 318,391 | 356,397 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Reo Net At Fair Value [Member] | Weighted Average [Member] | Internal Model [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Fair Value Inputs Historical Average Sale Proceeds By State Per Property | 105,508 | 102,697 |
Fair Value, Measurements, Nonrecurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Held-For-Investment Mortgage Loans | 515,000,000 | 1,025,000,000 |
Reo Net Fair Value Disclosure | 1,837,000,000 | 776,000,000 |
Fair_Value_Disclosures_Fair_Va2
Fair Value Disclosures - Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mortgage loans: | ' | ' |
Derivative Assets | $1,063 | $657 |
Debt, net: | ' | ' |
Derivative liabilities, net | 180 | 178 |
Held by consolidated trusts | ' | ' |
Debt, net: | ' | ' |
Debt, Net | 59 | 70 |
Freddie Mac parent | ' | ' |
Debt, net: | ' | ' |
Debt, Net | 2,683 | 2,187 |
Carrying Amount | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 11,281 | 8,513 |
Restricted Cash and Cash Equivalents | 12,265 | 14,592 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 62,383 | 37,563 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 128,919 | 174,896 |
Trading, at fair value | 23,404 | 41,492 |
Total investments in securities | 152,323 | 216,388 |
Mortgage loans: | ' | ' |
Mortgage loans | 1,684,790 | 1,686,347 |
Derivative Assets | 1,063 | 657 |
Guarantee Assets | 1,611 | 1,029 |
Total financial assets | 1,925,716 | 1,965,089 |
Debt, net: | ' | ' |
Debt, Net | 1,940,751 | 1,967,042 |
Derivative liabilities, net | 180 | 178 |
Guarantee obligation | 1,522 | 1,004 |
Total financial liabilities | 1,942,453 | 1,968,224 |
Carrying Amount | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 1,529,905 | 1,495,932 |
Debt, net: | ' | ' |
Debt, Net | 1,433,984 | 1,419,524 |
Carrying Amount | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 154,885 | 190,415 |
Debt, net: | ' | ' |
Debt, Net | 506,767 | 547,518 |
Fair Value | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 11,281 | 8,513 |
Restricted Cash and Cash Equivalents | 12,265 | 14,592 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 62,383 | 37,563 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 128,919 | 174,896 |
Trading, at fair value | 23,404 | 41,492 |
Total investments in securities | 152,323 | 216,388 |
Mortgage loans: | ' | ' |
Mortgage loans | 1,645,952 | 1,707,763 |
Derivative Assets | 1,063 | 657 |
Guarantee Assets | 1,879 | 1,325 |
Total financial assets | 1,887,146 | 1,986,801 |
Debt, net: | ' | ' |
Debt, Net | 1,949,743 | 2,052,696 |
Derivative liabilities, net | 180 | 178 |
Guarantee obligation | 3,067 | 2,487 |
Total financial liabilities | 1,952,990 | 2,055,361 |
Fair Value | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 1,507,742 | 1,540,160 |
Debt, net: | ' | ' |
Debt, Net | 1,436,898 | 1,487,095 |
Fair Value | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 138,210 | 167,603 |
Debt, net: | ' | ' |
Debt, Net | 512,845 | 565,601 |
Fair Value | Level 1 | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 7,360 | 8,513 |
Restricted Cash and Cash Equivalents | 12,264 | 14,576 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 0 | 0 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 0 | 0 |
Trading, at fair value | 6,636 | 20,221 |
Total investments in securities | 6,636 | 20,221 |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Derivative Assets | 0 | 64 |
Guarantee Assets | 0 | 0 |
Total financial assets | 26,260 | 43,374 |
Debt, net: | ' | ' |
Debt, Net | 0 | 0 |
Derivative liabilities, net | 0 | 8 |
Guarantee obligation | 0 | 0 |
Total financial liabilities | 0 | 8 |
Fair Value | Level 1 | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Debt, net: | ' | ' |
Debt, Net | 0 | 0 |
Fair Value | Level 1 | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Debt, net: | ' | ' |
Debt, Net | 0 | 0 |
Fair Value | Level 2 | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 3,921 | 0 |
Restricted Cash and Cash Equivalents | 1 | 16 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 62,383 | 37,563 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 76,770 | 119,901 |
Trading, at fair value | 16,122 | 19,681 |
Total investments in securities | 92,892 | 139,582 |
Mortgage loans: | ' | ' |
Mortgage loans | 1,274,194 | 1,146,866 |
Derivative Assets | 14,220 | 24,109 |
Guarantee Assets | 0 | 0 |
Total financial assets | 1,447,611 | 1,348,136 |
Debt, net: | ' | ' |
Debt, Net | 1,935,650 | 2,031,183 |
Derivative liabilities, net | 13,291 | 31,014 |
Guarantee obligation | 0 | 0 |
Total financial liabilities | 1,948,941 | 2,062,197 |
Fair Value | Level 2 | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 1,258,049 | 1,130,438 |
Debt, net: | ' | ' |
Debt, Net | 1,435,894 | 1,484,228 |
Fair Value | Level 2 | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 16,145 | 16,428 |
Debt, net: | ' | ' |
Debt, Net | 499,756 | 546,955 |
Fair Value | Level 3 | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 0 | 0 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 52,149 | 54,995 |
Trading, at fair value | 646 | 1,590 |
Total investments in securities | 52,795 | 56,585 |
Mortgage loans: | ' | ' |
Mortgage loans | 371,758 | 560,897 |
Derivative Assets | 11 | 20 |
Guarantee Assets | 1,879 | 1,325 |
Total financial assets | 426,443 | 618,827 |
Debt, net: | ' | ' |
Debt, Net | 14,093 | 21,513 |
Derivative liabilities, net | 336 | 67 |
Guarantee obligation | 3,067 | 2,487 |
Total financial liabilities | 17,496 | 24,067 |
Fair Value | Level 3 | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 249,693 | 409,722 |
Debt, net: | ' | ' |
Debt, Net | 1,004 | 2,867 |
Fair Value | Level 3 | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 122,065 | 151,175 |
Debt, net: | ' | ' |
Debt, Net | 13,089 | 18,646 |
Fair Value | Netting Adjustments | ' | ' |
Financial Assets | ' | ' |
Cash and Cash Equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 0 | 0 |
Investments in Securities [Abstract] | ' | ' |
Available-for-sale, at fair value | 0 | 0 |
Trading, at fair value | 0 | 0 |
Total investments in securities | 0 | 0 |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Derivative Assets | -13,168 | -23,536 |
Guarantee Assets | 0 | 0 |
Total financial assets | -13,168 | -23,536 |
Debt, net: | ' | ' |
Debt, Net | 0 | 0 |
Derivative liabilities, net | -13,447 | -30,911 |
Guarantee obligation | 0 | 0 |
Total financial liabilities | -13,447 | -30,911 |
Fair Value | Netting Adjustments | Held by consolidated trusts | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Debt, net: | ' | ' |
Debt, Net | 0 | 0 |
Fair Value | Netting Adjustments | Freddie Mac parent | ' | ' |
Mortgage loans: | ' | ' |
Mortgage loans | 0 | 0 |
Debt, net: | ' | ' |
Debt, Net | $0 | $0 |
Fair_Value_Disclosures_Differe
Fair Value Disclosures - Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Loans Held For Sale, Fair Value | $8,727 | $14,238 |
Loans Held For Sale, Unpaid Principal Balance, With Fair Value Option Elected | 8,721 | 13,972 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 6 | 266 |
Long-Term Debt, Fair Value | 2,683 | 2,187 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 2,635 | 2,167 |
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | $48 | $20 |
Legal_Contingencies_Details
Legal Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 28, 2014 | Dec. 16, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 22, 2009 | Feb. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 14-May-10 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 14, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 03, 2013 | Jan. 07, 2014 | |
Lehman Bankruptcy | Related Third Party Litigation And Indemnification Requests | Related Third Party Litigation And Indemnification Requests | Related Third Party Litigation And Indemnification Requests | Proof of claim | Proof of claim | Priority claim | General unsecured claim | Senior unsecured claim | Unasserted claim | Unasserted claim | IRS Litigation | IRS Litigation | Lawsuits involving Real Estate Transfer Taxes | LIBOR Lawsuit | Litigation Concerning the Purchase Agreement | Litigation Concerning the Purchase Agreement | Litigation Concerning the Purchase Agreement | Litigation Concerning the Purchase Agreement | |||||
Subsequent Event | SEC litigation | Year 2007 fixed-to-floating rate preferred stock | Year 2007 fixed-to-floating rate preferred stock | Lehman Bankruptcy | Lehman Bankruptcy | Lehman Bankruptcy, Short-term lending transactions | Lehman Bankruptcy, Repurchase obligations | Lehman Bankruptcy, Short-term lending transactions | TBW Bankruptcy, Ocala Subsidiary | TBW Bankruptcy, Underwriters | numberofstates | numberofdefendants | numberofpendinglawsuits | Arrowood lawsuit | In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations | In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations | |||||||
numberofdefendants | NumberOfOtherLawsuits | Mark and Keysar litigation | Subsequent Event | numberofpendinglawsuits | letter | letter | |||||||||||||||||
numberofdefendants | NumberOfAffirmedRulings | ||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal fees and expenses of former officers for indemnification obligations | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defendants | ' | ' | ' | ' | ' | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' |
Preferred Stock, Value, Outstanding | ' | ' | ' | ' | ' | ' | ' | 6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,297,500 | ' | ' |
Preferred stock, dividend rate | ' | ' | ' | ' | ' | ' | ' | 8.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other lawsuits | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Freddie Mac proofs of claim, total in the Lehman bankruptcies | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowed claims per bankruptcy plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | 869,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of distribution payments based on allowed claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.90% | 21.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of distribution payments based on allowed claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of bankruptcy claims settled | ' | ' | ' | ' | 767,000,000 | ' | ' | ' | ' | 767,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of possible claim against Freddie Mac | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 805,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of mortgage bankers bonds to be rescinded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of additional income taxes and penalties assessed in statutory notices 1998 To 2007 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' |
Amount of tax paid in the statutory notices received for the years 2006 and 2007 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | $0 | $0 | $1,355,000,000 | $1,220,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Number of pending lawsuits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | 4 | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | 3 | ' |
Number of appeals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' | ' |
Number of favorable rulings received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' |
Number of rulings affirmed on appeal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' |
Number of additional letters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Regulatory_Capital_Details
Regulatory Capital (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2008 | |
Mortgage Banking [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Requirement For On Balance Sheet Assets | 2.50% | ' | ' | ' | 2.50% | ' | ' | ' | ' |
Capital Requirement For Off Balance Sheet Obligations | 0.45% | ' | ' | ' | 0.45% | ' | ' | ' | ' |
Critical Capital Requirement For On Balance Sheet Assets | 1.25% | ' | ' | ' | 1.25% | ' | ' | ' | ' |
Critical Capital Requirement For Off Balance Sheet Obligations | 0.25% | ' | ' | ' | 0.25% | ' | ' | ' | ' |
Net Worth and Minimum Capital [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GAAP net worth (deficit) | $12,835,000,000 | ' | ' | ' | $12,835,000,000 | $8,827,000,000 | ($146,000,000) | ($401,000,000) | ' |
Core capital (deficit) | -59,495,000,000 | ' | ' | ' | -59,495,000,000 | -60,571,000,000 | ' | ' | ' |
Minimum capital requirement | 21,404,000,000 | ' | ' | ' | 21,404,000,000 | 22,063,000,000 | ' | ' | ' |
Minimum capital surplus (deficit) | -80,899,000,000 | ' | ' | ' | -80,899,000,000 | -82,634,000,000 | ' | ' | ' |
Number of days of net worth deficit requiring FHFA to place us into receivership | '60 days | ' | ' | ' | '60 days | ' | ' | ' | ' |
Expected Draw Request To Treasury Under Purchase Agreement | 0 | ' | ' | ' | 0 | ' | ' | ' | ' |
Aggregate Funding Received From Treasury Under Purchase Agreement | 71,300,000,000 | ' | ' | ' | 71,300,000,000 | ' | ' | ' | ' |
Initial liquidation preference of Senior Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 |
Cash amount received as a result of issuing the initial liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Cash dividends paid on senior preferred stock | $30,400,000,000 | $4,400,000,000 | $7,000,000,000 | $5,800,000,000 | $47,591,000,000 | $7,233,000,000 | $6,495,000,000 | ' | ' |
Selected_Financial_Statement_L2
Selected Financial Statement Line Items - Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other assets: | ' | ' |
Accounts and other receivables | $4,367 | $10,091 |
Guarantee asset | 1,611 | 1,029 |
All other | 2,561 | 2,645 |
Total other assets | 8,539 | 13,765 |
Other liabilities: | ' | ' |
Servicer liabilities | 2,277 | 3,304 |
Guarantee obligation | 1,522 | 1,004 |
Accounts payable and accrued expenses | 886 | 984 |
All other | 807 | 807 |
Total other liabilities | $5,492 | $6,099 |