Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 01, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FEDERAL HOME LOAN MORTGAGE CORP | ||
Entity Central Index Key | 1,026,214 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 1.4 | ||
Entity Common Stock, Shares Outstanding | 650,054,731 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | |||
Mortgage loans | $ 63,735 | $ 61,040 | $ 62,226 |
Investments in securities | 3,415 | 3,855 | 4,794 |
Other | 657 | 270 | 70 |
Total interest income | 67,807 | 65,165 | 67,090 |
Interest expense | (53,643) | (50,786) | (52,144) |
Net interest income | 14,164 | 14,379 | 14,946 |
Benefit (provision) for credit losses | 84 | 803 | 2,665 |
Net interest income after benefit (provision) for credit losses | 14,248 | 15,182 | 17,611 |
Non-interest income (loss) | |||
Gains (losses) on extinguishment of debt | 341 | (211) | (240) |
Derivative gains (losses) | (1,988) | (274) | (2,696) |
Net impairment of available-for-sale securities recognized in earnings | (18) | (191) | (292) |
Other gains (losses) on investment securities recognized in earnings | 1,054 | (78) | 508 |
Other income (loss) | 7,480 | 1,254 | (879) |
Non-interest income (loss) | 6,869 | 500 | (3,599) |
Non-interest expense | |||
Salaries and employee benefits | (1,098) | (989) | (975) |
Professional services | (452) | (489) | (497) |
Other administrative expense | (556) | (527) | (455) |
Total administrative expense | (2,106) | (2,005) | (1,927) |
Real estate owned operations expense | (189) | (287) | (338) |
Temporary Payroll Tax Cut Continuation Act of 2011 expense | (1,340) | (1,152) | (967) |
Other expense | (648) | (599) | (1,506) |
Non-interest expense | (4,283) | (4,043) | (4,738) |
Income before income tax expense | 16,834 | 11,639 | 9,274 |
Income tax expense | (11,209) | (3,824) | (2,898) |
Net income | 5,625 | 7,815 | 6,376 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | |||
Changes in unrealized gains (losses) related to available-for-sale securities | (253) | (825) | (806) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 124 | 141 | 182 |
Changes in defined benefit plans | 62 | (13) | 47 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (67) | (697) | (577) |
Comprehensive income | 5,558 | 7,118 | 5,799 |
Net income | 5,625 | 7,815 | 6,376 |
Undistributed net worth sweep and senior preferred stock dividends | (8,869) | (7,718) | (6,399) |
Net income (loss) attributable to common stockholders | $ (3,244) | $ 97 | $ (23) |
Net income (loss) per common share — basic and diluted | $ (1) | $ 0.03 | $ (0.01) |
Weighted average common shares outstanding (in millions) — basic and diluted | 3,234 | 3,234 | 3,235 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents (Notes 3, 14) | $ 6,848 | $ 12,369 |
Restricted cash and cash equivalents (Notes 3, 14) | 2,963 | 9,851 |
Securities purchased under agreements to resell (Notes 3, 10) | 55,903 | 51,548 |
Investments in securities, at fair value (Note 7) | 84,318 | 111,547 |
Mortgage loans held-for-sale (Notes 3, 4) (includes $20,054 and $16,255 at fair value) | 34,763 | 18,088 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $8,966 and $13,431) | 1,836,454 | 1,784,915 |
Accrued interest receivable (Note 3) | 6,355 | 6,135 |
Derivative assets, net (Notes 9, 10) | 375 | 747 |
Deferred tax assets, net (Note 12) | 8,107 | 15,818 |
Other assets (Notes 3, 18) (includes $3,353 and $2,408 at fair value) | 13,690 | 12,358 |
Total assets | 2,049,776 | 2,023,376 |
Liabilities | ||
Accrued interest payable (Note 3) | 6,221 | 6,015 |
Debt, net (Notes 3, 8) (includes $5,799 and $6,010 at fair value) | 2,034,630 | 2,002,004 |
Derivative liabilities, net (Notes 9, 10) | 269 | 795 |
Other liabilities (Notes 3, 18) | 8,968 | 9,487 |
Total liabilities | 2,050,088 | 2,018,301 |
Commitments and contingencies (Notes 5, 9 and 16) | ||
Equity (Note 11) | ||
Senior preferred stock (redemption value of $75,336 and $72,336) | 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 650,054,731 shares and 650,046,828 shares outstanding | 0 | 0 |
Additional paid-in capital | 0 | 0 |
Retained earnings (accumulated deficit) | (83,261) | (77,941) |
AOCI, net of taxes, related to: | ||
Available-for-sale securities (includes $593 and $782, related to net unrealized gains on securities for which other-than-temporary impairment has been recognized in earnings) | 662 | 915 |
Cash flow hedge relationships | (356) | (480) |
Defined benefit plans | 83 | 21 |
Total AOCI, net of taxes | 389 | 456 |
Treasury stock, at cost, 75,809,155 shares and 75,817,058 shares | (3,885) | (3,885) |
Total equity (See Note 11 for information on our dividend obligation to Treasury) | (312) | 5,075 |
Total liabilities and equity | 2,049,776 | 2,023,376 |
Consolidated Balance Sheet Line Item | ||
Mortgage loans held-for-sale (Notes 3, 4) (includes $20,054 and $16,255 at fair value) | 34,763 | 18,088 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $8,966 and $13,431) | 1,836,454 | 1,784,915 |
Total assets | 2,049,776 | 2,023,376 |
Debt, net (Notes 3, 8) (includes $5,799 and $6,010 at fair value) | 2,034,630 | 2,002,004 |
Total liabilities | 2,050,088 | 2,018,301 |
Held by consolidated trusts | ||
Assets | ||
Cash and cash equivalents (Notes 3, 14) | 0 | 0 |
Restricted cash and cash equivalents (Notes 3, 14) | 518 | 9,431 |
Securities purchased under agreements to resell (Notes 3, 10) | 16,750 | 13,550 |
Mortgage loans held-for-sale (Notes 3, 4) (includes $20,054 and $16,255 at fair value) | 0 | 0 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $8,966 and $13,431) | 1,774,286 | 1,690,218 |
Accrued interest receivable (Note 3) | 5,747 | 5,454 |
Other assets (Notes 3, 18) (includes $3,353 and $2,408 at fair value) | 2,738 | 3,827 |
Total assets | 1,800,039 | 1,722,480 |
Liabilities | ||
Accrued interest payable (Note 3) | 5,028 | 4,846 |
Debt, net (Notes 3, 8) (includes $5,799 and $6,010 at fair value) | 1,720,996 | 1,648,683 |
Other liabilities (Notes 3, 18) | 2 | 0 |
Total liabilities | 1,726,026 | 1,653,529 |
Consolidated Balance Sheet Line Item | ||
Mortgage loans held-for-sale (Notes 3, 4) (includes $20,054 and $16,255 at fair value) | 0 | 0 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $8,966 and $13,431) | 1,774,286 | 1,690,218 |
All other assets | 25,753 | 32,262 |
Total assets | 1,800,039 | 1,722,480 |
Debt, net (Notes 3, 8) (includes $5,799 and $6,010 at fair value) | 1,720,996 | 1,648,683 |
All other liabilities | 5,030 | 4,846 |
Total liabilities | $ 1,726,026 | $ 1,653,529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Mortgages Held-for-sale, Fair Value Disclosure | $ 20,054 | $ 16,255 |
Allowance for loan losses | 8,966 | 13,431 |
Debt securities recorded at fair value | 5,799 | 6,010 |
Other Assets at fair value | $ 3,353 | $ 2,408 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 4,000,000,000 | 4,000,000,000 |
Common Stock, Shares, Issued | 725,863,886 | 725,863,886 |
Senior preferred stock, at redemption value | $ 75,336 | $ 72,336 |
Common Stock, Shares, Outstanding | 650,054,731 | 650,046,828 |
Available for sale securities other-than-temporary impairment adjustment, related to net unrealized gains(losses) on securities for which other-than-temporary impairment has been recognized in earnings | $ 593 | $ 782 |
Treasury Stock, Shares | 75,809,155 | 75,817,058 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Senior Preferred Stock | 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 |
Beginning balance at Dec. 31, 2014 | $ 2,651 | $ 72,336 | $ 14,109 | $ 0 | $ 0 | $ (81,639) | $ 1,730 | $ (3,885) |
Beginning balance, Shares at Dec. 31, 2014 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income | 6,376 | 6,376 | ||||||
Other comprehensive income, net of taxes | (577) | (577) | ||||||
Comprehensive income | 5,799 | 6,376 | (577) | |||||
Senior Preferred Stock Dividends Declared | (5,510) | (5,510) | ||||||
Ending balance at Dec. 31, 2015 | 2,940 | $ 72,336 | $ 14,109 | $ 0 | 0 | (80,773) | 1,153 | (3,885) |
Ending balance, Shares at Dec. 31, 2015 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income | 7,815 | 7,815 | ||||||
Other comprehensive income, net of taxes | (697) | (697) | ||||||
Comprehensive income | 7,118 | 7,815 | (697) | |||||
Senior Preferred Stock Dividends Declared | (4,983) | (4,983) | ||||||
Ending balance at Dec. 31, 2016 | 5,075 | $ 72,336 | $ 14,109 | $ 0 | 0 | (77,941) | 456 | (3,885) |
Ending balance, Shares at Dec. 31, 2016 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income | 5,625 | 5,625 | ||||||
Other comprehensive income, net of taxes | (67) | (67) | ||||||
Comprehensive income | 5,558 | 5,625 | (67) | |||||
Senior Preferred Stock Dividends Declared | (10,945) | (10,945) | ||||||
Ending balance at Dec. 31, 2017 | $ (312) | $ 72,336 | $ 14,109 | $ 0 | $ 0 | $ (83,261) | $ 389 | $ (3,885) |
Ending balance, Shares at Dec. 31, 2017 | 1 | 464 | 650 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 5,625 | $ 7,815 | $ 6,376 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Derivative (gains) losses | 370 | (1,516) | 456 |
Asset related amortization — premiums, discounts, and basis adjustments | 6,038 | 7,089 | 5,321 |
Debt related amortization — premiums and discounts on certain debt securities and basis adjustments | (8,653) | (10,151) | (8,295) |
Losses (gains) on extinguishment of debt | (341) | 211 | 240 |
(Benefit) provision for credit losses | (84) | (803) | (2,665) |
Losses (gains) on investment activity | (3,403) | 69 | 1,878 |
Deferred income tax expense (benefit) | 7,773 | 2,787 | 1,655 |
Purchases of mortgage loans acquired as held-for-sale | (64,827) | (48,379) | (41,728) |
Sales of mortgage loans acquired as held-for-sale | 61,744 | 49,350 | 36,034 |
Repayments of mortgage loans acquired as held-for-sale | 306 | 1,259 | 150 |
Payments to servicers for pre-foreclosure expense and servicer incentive fees | (377) | (585) | (867) |
Change in: | |||
Accrued interest receivable | (220) | (61) | (40) |
Accrued interest payable | 273 | (52) | (43) |
Income taxes receivable | 1,912 | (1,230) | 1,022 |
Other, net | (674) | (944) | (428) |
Net cash provided by (used in) operating activities | 5,462 | 4,859 | (934) |
Cash flows from investing activities | |||
Purchases of trading securities | (160,333) | (104,045) | (40,614) |
Proceeds from sales of trading securities | 150,448 | 79,095 | 14,847 |
Proceeds from maturities and repayments of trading securities | 8,570 | 22,244 | 16,377 |
Purchases of available-for-sale securities | (10,549) | (28,306) | (6,818) |
Proceeds from sales of available-for-sale securities | 23,034 | 20,699 | 18,900 |
Proceeds from maturities and repayments of available-for-sale securities | 11,758 | 15,869 | 20,807 |
Purchases of held-for-investment mortgage loans | (126,162) | (169,948) | (122,082) |
Proceeds from sales of mortgage loans held-for-investment | 8,883 | 4,507 | 2,727 |
Repayments of mortgage loans held-for-investment | 277,819 | 340,348 | 302,364 |
(Increase) decrease in restricted cash | 6,888 | 4,682 | (5,998) |
Advances to lenders | (35,452) | (30,730) | (12,527) |
Net proceeds from dispositions of real estate owned and other recoveries | 1,861 | 2,519 | 3,650 |
Net (increase) decrease in securities purchased under agreements to resell | (4,355) | 12,096 | (11,741) |
Derivative premiums and terminations, swap collateral, and exchange settlement payments, net | (538) | 555 | (749) |
Changes in other assets | (428) | (357) | (197) |
Net cash provided by investing activities | 151,444 | 169,228 | 178,946 |
Cash flows from financing activities | |||
Payment of cash dividends on senior preferred stock | (10,945) | (4,983) | (5,510) |
Changes in other liabilities | (3) | (6) | (5) |
Net cash used in financing activities | (162,427) | (167,313) | (183,345) |
Net increase (decrease) in cash and cash equivalents | (5,521) | 6,774 | (5,333) |
Cash and cash equivalents at beginning of year | 12,369 | 5,595 | 10,928 |
Cash and cash equivalents at end of year | 6,848 | 12,369 | 5,595 |
Cash paid for: | |||
Debt interest | 63,574 | 60,862 | 61,120 |
Income taxes | 1,872 | 2,324 | 1,095 |
Held by Freddie Mac | |||
Cash flows from financing activities | |||
Proceeds from issuance of debt | 613,280 | 659,108 | 610,091 |
Repayments of debt | (653,255) | (720,648) | (646,176) |
Held by consolidated trusts | |||
Cash flows from financing activities | |||
Proceeds from issuance of debt | 191,638 | 254,236 | 174,561 |
Repayments of debt | (303,142) | (355,020) | $ (316,306) |
Cash and cash equivalents at beginning of year | 0 | ||
Cash and cash equivalents at end of year | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies Freddie Mac is a GSE chartered by Congress in 1970. Our public mission is to provide liquidity, stability and affordability to the U.S. housing market. We are 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 . 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. 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 includes certain adjustments to correct immaterial errors related to previously reported periods. Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and 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 for establishing the allowance for loan losses and reserve for guarantee losses, valuing financial instruments and other assets and liabilities and assessing impairments on investments. Actual results could be different from these estimates. Change in Estimate Adoption of Regulatory Guidance on Determining when a Loan is Uncollectible On January 1, 2015, we adopted regulatory guidance issued by FHFA that establishes guidelines for adverse classification and identification of specified single-family and multifamily assets, including guidelines for recognizing charge-offs on certain single-family loans. We analyze loans for collectability based on several factors, including, but not limited to: n Servicing actions that indicate the potential for near-term loss mitigation, such as whether we have achieved quality borrower contact; n Credit risk factors, such as whether the loan is in a state with foreclosure practices that prevent timely resolution of delinquencies; and n Loan characteristics that indicate whether repayment is likely to occur, such as the borrower's payment history, loan status and historical performance of loans with similar characteristics. Upon adoption, we changed the timing of when we deem certain single-family loans to be uncollectible, and we began to charge-off the amount of recorded investment in excess of the fair value of the underlying collateral for loans that have been deemed uncollectible prior to foreclosure, based on the factors identified above. This adoption resulted in a reduction to both the recorded investment of loans, held-for-investment and our allowance for loan losses of $1.9 billion on January 1, 2015. However, these additional charge-offs did not have a material impact on our comprehensive income for 2015, as we had already reserved for these losses in our allowance for loan losses in prior periods. Consolidation and Equity Method Accounting For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. We generally consolidate entities in which we have a controlling financial interest. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE. For entities that are not VIEs, we hold a controlling financial interest in entities where we hold a majority of the voting rights or where we are able to exercise control through substantive participating rights or as a general partner. We do not currently consolidate any entities which are not VIEs. We use the equity method to account for our interests in entities in which we do not have a controlling financial interest, but over which we have significant influence. Cash and Cash Equivalents Highly liquid investment securities that have an original maturity of three months or less are accounted for as 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 from servicers of the underlying assets of our consolidated trusts which are deposited into a separate custodial account. We invest the cash held in the custodial account 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. 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: n The unrealized gains and losses on available-for-sale securities; n The effective portion of derivatives accounted for as cash flow hedge relationships; and n Defined benefit plans. Other Significant Accounting Policies The table below identifies our other significant accounting policies and the related note in which information about them can be found. Note Accounting Policy Note 3 Variable Interest Entities Note 4 Mortgage Loans and Allowance for Loan Losses Note 5 Financial Guarantees Note 6 Credit Enhancements Note 7 Investments in Securities Note 8 Debt Note 9 Derivatives Note 10 Collateralized Agreements and Offsetting Arrangements Note 10 Repurchase and Resale Agreements and Dollar Roll Transactions Note 11 Earnings Per Share Note 11 Stockholders’ Equity Note 12 Income Taxes Note 13 Segment Reporting Note 15 Fair Value Measurements Recently Issued Accounting Guidance Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2016-06 , Derivatives and Hedging (Topic 815) The amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendment is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. January 1, 2017 The adoption of this amendment did not have a material effect on our consolidated financial statements. ASU 2016-17 , Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control The Board issued this Update to amend the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. January 1, 2017 The adoption of this amendment did not have a material effect on our consolidated financial statements. ASU 2017-12 , Derivatives and Hedging (Topic 815) The amendments in this Update made targeted improvements to accounting for hedging activities. The Update changes the recognition and presentation requirements of hedge accounting and provides new alternatives on how to measure and account for certain aspects of hedging activities. October 1, 2017 The adoption of the amendments did not affect the application of hedge accounting for our existing hedge strategies; however, we modified the presentation of hedge results on our consolidated statements of comprehensive income and in the financial statement notes upon adoption. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) and ASU 2015-14 The amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 defers the effective date of ASU 2014-09 for all entities by one year. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-01 , Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. January 1, 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The amendments in this Update do not change the core principle of the guidance in Topic 606. The amendments clarify the implementation guidance on principal versus agent considerations. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2016-10 , Revenue from Contracts with Customers (Topic 606) The amendments in this Update do not change the core principle of the guidance in Topic 606, but clarify two issues: i) identifying performance obligations; and ii) licensing. These clarifications are intended to reduce diversity in practice and to reduce the cost and complexity of Topic 606 at transition and on an ongoing basis. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-12 , Revenue from Contracts with Customers (Topic 606) The amendments in this Update do not change the core principle of the guidance in Topic 606, but affect aspects of the guidance and technical corrections. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The main objective of this Update is to address the diversity in practice that currently exists in regards to how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 Upon adoption, the portion of the cash payment attributable to the accreted interest related to zero-coupon debt will be presented in the operating activities section, a classification change from the financing activities section where this item is currently presented. As a result, we estimate that we will reclassify approximately $1.2 billion and $0.5 billion of cash payments from financing activities to operating activities on our consolidated statements of cash flows for the years ended December 31, 2017 and 2016, respectively, upon adoption. ASU 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) The amendments in this Update address the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230, Statement of Cash Flows. Specifically, this amendment dictates that the statement of cash flows should explain the change in the period of the total of cash, cash equivalents and restricted cash balances. January 1, 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The amendments in this Update are of a similar nature to the items typically addressed in the Technical Corrections and Improvements project. However, the Board decided to issue a separate Update for technical corrections and improvements to Topic 606 and other Topics amended by Update 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to Update 2014-09. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2018-02 , Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. 1Q 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2016-02 , Leases (Topic 842) The amendment addresses the accounting for lease arrangements. January 1, 2019 We do not expect that the adoption of this amendment will have a material effect on our consolidated financial statements. ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. January 1, 2020 While we are evaluating the effect that the adoption of this amendment will have on our consolidated financial statements, it will increase (perhaps substantially) our provision for credit losses in the period of adoption. |
Conservatorship and Related Mat
Conservatorship and Related Matters | 12 Months Ended |
Dec. 31, 2017 | |
Conservatorship and Related Matters [Abstract] | |
CONSERVATORSHIP AND RELATED MATTERS | Conservatorship and Related Matters Business Objectives We operate under the conservatorship that commenced on September 6, 2008, conducting our business under the direction of FHFA, as our Conservator. The conservatorship and related matters significantly affect our management, business activities, 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. The Conservator 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 subject to certain constraints on our business activities under the Purchase Agreement. However, 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. 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. Some of these initiatives affect our near- and long-term financial results. Given our public mission and the important role the Administration and our Conservator have placed on Freddie Mac in addressing housing and mortgage market conditions, we may be required to take actions that could have a negative impact on our business, operating results or financial condition, and thus contribute to a need for additional draws under the Purchase Agreement. In May 2014, FHFA issued its 2014 Strategic Plan, which updated FHFA's vision for implementing its obligations as Conservator of Freddie Mac and Fannie Mae and established three reformulated strategic goals. FHFA also has issued annual Conservatorship Scorecards each year between 2014 and 2018. The annual Conservatorship Scorecards establish objectives and performance targets and measures for Freddie Mac and Fannie Mae (the "Enterprises") related to the strategic goals set forth in the Strategic Plan. The 2014 Strategic Plan established three reformulated strategic goals for the conservatorships of Freddie Mac and Fannie Mae: n Maintain , in a safe and sound manner, foreclosure prevention activities and credit availability for new and refinanced loans to foster liquid, efficient, competitive and resilient national housing finance markets; n Reduce taxpayer risk through increasing the role of private capital in the mortgage market; and n Build a new single-family securitization infrastructure for use by the Enterprises and adaptable for use by other participants in the secondary market in the future. As part of the first goal, the 2014 Strategic Plan describes various steps related to increasing access to mortgage credit for credit-worthy borrowers. The 2014 Strategic Plan provides for the Enterprises to continue to play an ongoing role in supporting multifamily housing needs, particularly for low-income households. The plan states that FHFA will continue to impose a production cap on Freddie Mac’s and Fannie Mae’s multifamily businesses. However, in 2015, FHFA allowed loans in certain affordable and underserved market segments to be excluded from the production cap. This allowance was maintained in the 2016, 2017 and 2018 Conservatorship Scorecards with slight modification. The second goal focuses on ways to transfer risk to private market participants and away from the Enterprises in a responsible way that does not reduce liquidity or adversely affect the availability of mortgage credit. The second goal provides for us to increase the use of single-family credit risk transfer transactions, continue using credit risk transfer transactions in the multifamily business and continue shrinking our mortgage-related investments portfolio consistent with the requirements in the Purchase Agreement, with a focus on selling less liquid assets. The third goal includes the continued development of the common securitization platform. FHFA refined the scope of this project to focus on making the new shared system operational for Freddie Mac’s and Fannie Mae’s existing single-family securitization activities. The third goal also provides for the Enterprises to work towards the development of a single (common) security. We continue to align our resources and internal business plans to meet the goals and objectives provided to us by FHFA. As a result of the net worth sweep dividend provisions of the senior preferred stock, we cannot retain capital from the earnings generated by our business operations in excess of the applicable Capital Reserve Amount under the Purchase Agreement (which is $3.0 billion as of January 1, 2018 but will be reduced to zero if for any reason we do not pay the full dividend requirement in a future period) or return capital to stockholders other than Treasury, the holder of our senior preferred stock. Our future is uncertain, and the conservatorship has no specified termination date. We do not know what changes may occur to our business model during or following conservatorship, including whether we will continue to exist. 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 it is possible and perhaps likely that there will be significant changes beyond the near term. We have no ability to predict the outcome of these deliberations. Purchase Agreement and Warrant Overview On September 7, 2008, we, through FHFA, in its capacity as Conservator, entered into the Purchase Agreement with Treasury. The Purchase Agreement was subsequently amended and restated on September 26, 2008, and further amended on May 6, 2009, December 24, 2009, August 17, 2012, and December 21, 2017. The amount of available funding remaining under the Purchase Agreement was $140.5 billion as of December 31, 2017 and will be reduced to $140.2 billion once the draw request related to our net worth deficit as of December 31, 2017 is funded. This amount will be further 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 consolidated 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, 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 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 cash proceeds or 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. The dividends we have paid to Treasury on the senior preferred stock have been declared by, and paid at the direction of, the Conservator, acting as successor to the rights, titles, powers and privileges of the Board. 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. Under the August 2012 amendment to the Purchase Agreement and the December 2017 Letter Agreement, for each quarter from January 1, 2013 and thereafter, 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 the total assets of Freddie Mac (excluding Treasury's commitment and any unfunded amounts thereof), less 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 $0.6 billion for 2017 and, pursuant to the Letter Agreement, will be $3.0 billion for 2018 and thereafter rather than zero as previously provided. If for any reason we do not pay the net worth sweep dividend in full for any period, the applicable Capital Reserve Amount will thereafter be 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. The senior preferred stock is senior in liquidation preference to our common stock and all other series of preferred stock. 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. 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. On December 31, 2017, the aggregate liquidation preference of the senior preferred stock increased by $3.0 billion , or the amount of dividends we would have paid but for the Letter Agreement, to $75.3 billion . The liquidation preference will increase to $75.6 billion once the draw request related to our net worth deficit as of December 31, 2017 is funded and 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. 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. 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. However, Treasury's consent is required for a termination of conservatorship other than in connection with receivership. 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: n 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); n Redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant); n 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); n Terminate the conservatorship (other than in connection with a receivership); n Sell, transfer, lease or otherwise dispose of any assets, other than dispositions for fair market value: l To a limited life regulated entity (in the context of a receivership); l Of assets and properties in the ordinary course of business, consistent with past practice; l 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; l In connection with our liquidation by a receiver; l Of cash or cash equivalents for cash or cash equivalents; or l To the extent necessary to comply with the covenant described below relating to the reduction of our mortgage-related investments portfolio; n Issue any subordinated debt; n Enter into a corporate reorganization, recapitalization, merger, acquisition or similar event; or n Engage in transactions with affiliates unless the transaction is: l Pursuant to the Purchase Agreement, the senior preferred stock or the warrant; l Upon arm's length terms; or l 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 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, without the prior written consent of Treasury, 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 other VIEs 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: n 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; n 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; n We may not take any action that will result in an increase in the par value of our common stock; n 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 n 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: n The completion of our liquidation and fulfillment of Treasury’s obligations under its funding commitment at that time; n The payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guarantee obligations); and n 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 mortgage guarantee obligations. Third-party Enforcement Rights In the event of our default on payments with respect to our debt securities or 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 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: n The amount necessary to cure the payment defaults on our debt and mortgage guarantee obligations; and n The lesser of: l The deficiency amount; and l 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 For purposes of the limit imposed by the Purchase Agreement and FHFA regulation, the UPB of our mortgage-related investments portfolio could not exceed $288.4 billion at December 31, 2017 and was $253.5 billion at that date. Our Retained Portfolio Plan, which we adopted in 2014, provides for us to manage the UPB of the mortgage-related investments portfolio so that it does not exceed 90% of the annual cap established by the Purchase Agreement (subject to certain exceptions). Our mortgage-related investments portfolio cap is reduced by 15% annually until it reaches $250 billion. This amount 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 immediately preceding calendar year. Our ability to acquire and sell mortgage assets is significantly constrained by limitations of the Purchase Agreement and those imposed by FHFA. Government Support for Our Business We receive substantial support from Treasury and are dependent upon its continued support in order to continue operating our business. Our ability to access funds from Treasury under the Purchase Agreement is critical to: n Keeping us solvent; n Allowing us to focus on our primary business objectives under conservatorship; and n Avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. At September 30, 2017, 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, 2017 . Since conservatorship began through December 31, 2017 , we have paid cash dividends of $112.4 billion to Treasury at the direction of the Conservator. At December 31, 2017, our liabilities exceeded our assets under GAAP by $312 million . As a result, FHFA, as Conservator, will submit a draw request, on our behalf, to Treasury under the Purchase Agreement to eliminate our net worth deficit. Upon the funding of this draw request, the aggregate liquidation preference of the senior preferred stock will increase to $75.6 billion. Because we had a net worth deficit at December 31, 2017, no dividend will be paid to Treasury in March 2018. Additionally, in recent years, the Federal Reserve purchased significant amounts of mortgage-related securities issued by us, Fannie Mae and Ginnie Mae. See Note 8 and Note 11 for more information on the conservatorship and the Purchase Agreement. 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. During the years ended December 31, 2017, 2016 and 2015, no transactions outside of normal business activities have occurred between us and the U.S. government (or any of its related parties), except for the following: n The transactions with Treasury discussed above in Purchase Agreement and Warrant and Government Support for our Business ; n The transactions entered into whereby we and Fannie Mae, in conjunction with Treasury, provided assistance to state and local HFAs. Treasury will reimburse Freddie Mac for initial guarantee losses on these transactions; n The transactions discussed in Note 4 , Note 8 and Note 11 ; and n The allocation or transfer of 4.2 basis points of each dollar of new business purchases to certain housing funds as required under the GSE Act. 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. In October 2013, FHFA announced the formation of 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. In November 2014, we and Fannie Mae announced that a chief executive officer had been named for CSS. Additionally, we and Fannie Mae each appointed two executives to the CSS Board of Managers and signed governance and operating agreements for CSS. Therefore, CSS is also deemed a related party. During the year ended December 31, 2017 , we contributed $102 million of capital to CSS. |
Securitization Activities and C
Securitization Activities and Consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SECURITIZATION ACTIVITIES AND CONSOLIDATION | Securitization Activities and Consolidation Our primary business activities in our Single-family Guarantee and Multifamily segments involve the securitization of loans or other mortgage-related assets using trusts that are VIEs. These trusts issue beneficial interests in the loans or other mortgage-related assets that they own. We guarantee the principal and interest payments on some or all of the issued beneficial interests in substantially all of our securitization transactions. See Note 5 for additional information on our guarantee activities. We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. We are the primary beneficiary of a VIE when we have both the power to direct the activities of the VIE that most significantly impact its economic performance and exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We evaluate whether we are the primary beneficiary of VIEs in which we have interests on an ongoing basis, and our primary beneficiary determination may change over time as our interest in the VIE changes. Securitization Activities PCs PCs are pass-through debt securities that represent undivided beneficial interests in a pool of loans held by a securitization trust. We serve as both administrator and guarantor for our PC trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by the PC trusts. As guarantor, we guarantee the payment of principal and interest on our PCs in exchange for a guarantee fee, and we have the right to purchase delinquent loans from the PC trust to help improve the economic performance of the trust. We absorb all credit losses of the PC trusts through our guarantee of the principal and interest payments. The economic performance of our PC trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of our PC trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of our PC trusts and, therefore, consolidate those trusts. Loans held by our PC trusts are recognized on our consolidated balance sheets as mortgage loans held-for-investment. The corresponding PCs held by third parties are recognized on our consolidated balance sheets as debt, net. We extinguish the outstanding debt securities of the related consolidated trust and recognize gains or losses on debt extinguishment for the difference between the consideration paid and the debt carrying value when we purchase PCs as investments in our mortgage-related investments portfolio. Sales of PCs previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances. See Note 4 and Note 8 for additional information on loans and debt securities of consolidated trusts. At December 31, 2017 and 2016 , we were the primary beneficiary of, and therefore consolidated, PC trusts with assets totaling $1.8 trillion and $1.7 trillion , respectively. Substantially all of these consolidated trusts were single-family PC trusts. During the years ended December 31, 2017 and 2016 , we issued approximately $347.7 billion and $391.5 billion , respectively, of guaranteed PCs. Our exposure for guarantees to consolidated securitization trusts is generally equal to the UPB of the loans recorded on our consolidated balance sheets. Resecuritization Products We create resecuritization products primarily by using PCs or our previously issued resecuritization products as the underlying collateral. In a typical resecuritization transaction, previously issued PCs or resecuritization products are transferred to a resecuritization trust that issues beneficial interests in the underlying collateral. We establish parameters that define eligibility standards for assets that may be used as collateral for each of our resecuritization programs. Resecuritization products can then be created based on the parameters that we have established. Similar to our PCs, we guarantee the payment of principal and interest to the investors in our resecuritization products. However, because we have already guaranteed the underlying assets, we do not assume any incremental credit risk by issuing these securities. The main types of resecuritization products we create are Giant PCs, REMICs and Stripped Giant PCs. n Giant PCs - Giant PCs are direct pass-throughs of the cash flows of the underlying collateral, which may be previously issued PCs or Giant PCs. We do not consolidate Giant PCs as their resecuritization does not result in any new or incremental risk to the holders of the securities issued by the resecuritization trust and because we are not exposed to any incremental rights to receive benefits or obligations to absorb losses that could be significant to the resecuritization trust. Purchases of Giant PCs as investments in our mortgage-related investments portfolio are accounted for as debt extinguishments of a pro-rata portion of the underlying single-family PCs because Giant PCs are considered substantially the same as the underlying single-family PCs. Similarly, sales of Giant PCs previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances of a pro-rata portion of the underlying single-family PCs. n REMICs and Stripped Giant PCs - REMICs and Stripped Giant PCs are multiclass resecuritizations of the cash flows of the underlying collateral, which may be previously issued PCs, Giant PCs, or other REMICs and Stripped Giant PCs. The activity that most significantly impacts the economic performance of our multiclass resecuritization trusts is typically the initial design and structuring of the trust. Substantially all multiclass resecuritization trusts are created as part of customer-driven transactions in which an investor or dealer participates in the decisions made during the design and establishment of the trust. As a result, we do not have the unilateral ability to direct the activities of our multiclass resecuritization trusts that most significantly impact the economic performance of those trusts. In addition, we do not have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. As a result, we have concluded that we are not the primary beneficiary of our multiclass resecuritization trusts and, therefore, do not consolidate those trusts. Because we have already guaranteed the underlying assets, we do not receive any incremental guarantee fees in exchange for our guarantee, and, accordingly, we do not recognize any additional guarantee assets, guarantee obligations or reserves for guarantee losses related to multiclass resecuritization trusts. Instead, we receive a one-time transaction fee which represents compensation for both the structuring and creation of the securities and for our ongoing administrative responsibilities to service the securities. We recognize the portion of the transaction fee related to creation of the securities immediately in earnings. We defer the portion of the fee related to ongoing administrative responsibilities and amortize it over the life of the associated trust. When we purchase a REMIC or Stripped Giant PC as an investment in our mortgage-related investments portfolio, we generally record the security as an investment in debt securities rather than extinguishment of debt since we are generally investing in the debt securities of a non-consolidated entity. We do not consolidate REMIC or Stripped Giant PC trusts in which we hold variable interests, as we are not deemed to be the primary beneficiary of the trusts, unless we have the unilateral ability to collapse the trust. Similarly, sales of REMICs or Stripped Giant PCs previously held as investments in our mortgage-related investments portfolio are accounted for as sales of investments in debt securities. See Note 7 for additional information on accounting for investments in debt securities. Senior Subordinate Securitization Structures We are the primary beneficiary of and, therefore, consolidate certain of our single-family senior subordinate securitization structures because we have both the ability to direct the loss mitigation activities of the underlying loans and have the obligation to absorb credit losses through our guarantee of the issued senior securities. As a result, we consolidated certain of the trusts used in these senior subordinate securitization structures with underlying assets totaling $3.6 billion and $1.5 billion , at December 31, 2017 and 2016, respectively. We do not consolidate the other single-family senior subordinate securitization structures as we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. For those securitizations where we sell loans to the VIE, we derecognize the transferred loans and account for our guarantee to the non-consolidated VIE. We account for our investments in the beneficial interests issued by the non-consolidated VIE as investments in debt securities. During 2017 and 2016, we issued approximately $6.8 billion and $0.8 billion , respectively, of guaranteed securities in these senior subordinate securitization structures for which a guarantee asset and guarantee obligation were generally recognized. K Certificates In a K Certificate transaction, we sell multifamily loans to a non-Freddie Mac securitization trust that issues senior, mezzanine and subordinate securities, and simultaneously purchase and place the senior securities into a Freddie Mac securitization trust that issues guaranteed K Certificates. In these transactions, we guarantee the senior securities issued by the Freddie Mac securitization trust and do not issue or guarantee the mezzanine or subordinate securities issued by the non-Freddie Mac securitization trust. We receive a guarantee fee in exchange for our guarantee. We serve as guarantor of our K Certificate trusts and, from time to time, as master servicer. However, in contrast to single-family PC trusts, the rights to direct loss mitigation activities of the underlying loans and to purchase delinquent loans from the securitization trust are held by the investor in the most subordinate remaining securities issued by the non-Freddie Mac trust, and therefore we do not have any power to direct those activities unless we are the investor in the most subordinate remaining securities. The economic performance of our K Certificate trusts is most significantly affected by the performance of the underlying loans. Because our rights in a K Certificate transaction do not provide us with the power to direct the activities that most significantly affect the performance of the underlying loans, we are not the primary beneficiary of our K Certificate trusts and, therefore, do not consolidate those trusts. When we sell loans to a K Certificate trust, we derecognize the transferred loans and account for our guarantee to the non-consolidated K Certificate trust. We account for our investments in the beneficial interests issued by non-consolidated K Certificate trusts as investments in debt securities. During 2017 and 2016 , we issued approximately $48.5 billion and $40.6 billion , respectively, of K Certificates for which a guarantee asset and guarantee obligation were recognized. SB Certificates In SB Certificate transactions, we securitize multifamily small balance loans using a non-Freddie Mac SB Certificate trust that issues senior classes of securities that we guarantee, as well as subordinated classes of securities that we do not guarantee. Similar to our K Certificate transactions, we are not the primary beneficiary of and, therefore, do not consolidate our SB Certificate trusts, as we do not have the ability to direct loss mitigation activities of the underlying loans, which is the most significantly activity affecting the economic performance of the VIE. In a typical SB Certificate transaction, we sell loans to a SB Certificate trust, derecognize the transferred loans and account for our guarantee to the non-consolidated SB Certificate trust. We account for our investments in the beneficial interests issued by non-consolidated SB Certificate trusts as investments in debt securities. During 2017 and 2016 , we issued approximately $4.9 billion and $3.5 billion , respectively, of SB Certificates for which a guarantee asset and guarantee obligation were recognized. Other Securitization Products We are the primary beneficiary of and, therefore, consolidate the trusts used to issue certain of our other securitization products, including trusts that issue multifamily K Certificates without subordination and KT Certificates, as well as certain other single-family securitization products, because we have the ability to direct the activities that most significantly affect the economic performance of the trusts and we have the obligation to absorb credit losses through our guarantee of some or all of the issued securities. As a result, we consolidated trusts used to issue certain of our other securitization products with underlying assets totaling $8.5 billion and $7.5 billion at December 31, 2017 and 2016, respectively. We do not consolidate the trusts used to issue other securitization products that do not meet these conditions, including those trusts that issue multifamily M Certificates, ML Certificates and Q Certificates. For those products, we account for our guarantee to the non-consolidated VIE. During 2017 and 2016, we issued approximately $5.6 billion and $0.5 billion , respectively, of these securities for which a guarantee asset and guarantee obligation were generally recognized. Consolidated VIEs We determined we are the primary beneficiary of the VIEs used to issue our PCs, certain senior subordinate securitization structures, and certain other securitization products as previously discussed and, therefore, consolidate these VIEs. Our exposure on debt securities of consolidated trusts represents our liability to third parties that hold beneficial interests in our consolidated securitization trusts. When we consolidate a VIE, we recognize the assets and liabilities of the VIE on our consolidated balance sheets and account for those assets and liabilities based on the applicable GAAP for each specific type of asset or liability. Assets and liabilities that we transfer to a VIE at, after or shortly before the date we become the primary beneficiary of the VIE are initially measured at the same amounts that they would have been measured 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: n The sum of the fair value of the consideration paid, the fair value of any noncontrolling interests and the reported amount of any previously held interests; and n The net fair value of the assets and liabilities recognized. Guarantees to consolidated VIEs are eliminated in consolidation and are therefore not separately recognized on our consolidated balance sheets. The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on our consolidated balance sheets. (In millions) As of December 31, 2017 As of December 31, 2016 Consolidated Balance Sheet Line Item Assets: Cash and cash equivalents $— $— Restricted cash and cash equivalents 518 9,431 Securities purchased under agreements to resell 16,750 13,550 Mortgage loans held-for-investment 1,774,286 1,690,218 Accrued interest receivable 5,747 5,454 Other assets 2,738 3,827 Total assets of consolidated VIEs $1,800,039 $1,722,480 Liabilities: Accrued interest payable $5,028 $4,846 Debt, net 1,720,996 1,648,683 Other liabilities 2 — Total liabilities of consolidated VIEs $1,726,026 $1,653,529 Non-Consolidated VIEs Our involvement with VIEs for which we are not the primary beneficiary may take the form of purchasing an investment in these entities or providing a guarantee to these entities. Our maximum exposure to loss for those VIEs where 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. Our maximum exposure to loss for those VIEs where 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. See Note 6 for additional information on credit enhancement arrangements. The following table 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 with which we were involved in the design and creation and have a significant continuing involvement, as well as our maximum exposure to loss. (In millions) As of December 31, 2017 As of December 31, 2016 Assets and Liabilities Recorded on our Consolidated Balance Sheets (1) Assets: Investments in securities $51,494 $58,995 Accrued interest receivable 233 254 Derivative assets, net 7 — Other assets 2,591 1,708 Liabilities: Other liabilities 2,489 1,604 Maximum Exposure to Loss (2)(3) $200,196 $150,227 Total Assets of Non-Consolidated VIEs (3) $232,762 $175,713 (1) Includes our variable interests in REMICs and Stripped Giant PCs, K Certificates, SB Certificates, certain senior subordinate securitization structures and certain other securitization products. (2) Our maximum exposure to loss includes the guaranteed UPB of assets held by the non-consolidated VIEs as well as the UPB of unguaranteed securities that we acquired from these securitization transactions. (3) Our maximum exposure to loss and total assets of non-consolidated VIEs exclude our investments in and obligations to REMICs and Stripped Giant PCs, because we already consolidate the underlying collateral of these trusts on our consolidated balance sheets. We also obtain interests in various other VIEs created by third parties through the normal course of business, such as through our investments in certain non-Freddie Mac mortgage-related securities, purchases of multifamily loans, guarantees of multifamily housing revenue bonds, as a derivative counterparty or through other activities. To the extent that we were not involved in the design or creation of these VIEs, they are excluded from the table above. Our interests in these VIEs are generally passive in nature and are not expected to result in us obtaining a controlling financial interest in these VIEs in the future. As a result, we do not consolidate these VIEs and we account for our interests in these VIEs in the same manner that we account for our interests in other third-party transactions. See Note 7 for additional information regarding our investments in non-Freddie Mac mortgage-related securities. See Note 4 for more information regarding multifamily loans. |
Mortgage Loans and Loan Loss Re
Mortgage Loans and Loan Loss Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOANS AND LOAN LOSS RESERVES | Mortgage Loans and Loan Loss Reserves The table below provides details of the loans on our consolidated balance sheets as of December 31, 2017 and 2016 . December 31, 2017 December 31, 2016 (In millions) Held by Freddie Mac Held by Total Held by Freddie Mac Held by Total Held-for sale: Single-family $17,039 $— $17,039 $2,092 $— $2,092 Multifamily 20,537 — 20,537 16,544 — 16,544 Total UPB 37,576 — 37,576 18,636 — 18,636 Cost basis and fair value adjustments, net (2,813 ) — (2,813 ) (548 ) — (548 ) Total held-for-sale loans, net 34,763 — 34,763 18,088 — 18,088 Held-for-investment: Single-family 51,893 1,742,736 1,794,629 83,040 1,659,591 1,742,631 Multifamily 17,702 3,747 21,449 25,873 3,048 28,921 Total UPB 69,595 1,746,483 1,816,078 108,913 1,662,639 1,771,552 Cost basis adjustments (2,148 ) 31,490 29,342 (3,755 ) 30,549 26,794 Allowance for loan losses (5,279 ) (3,687 ) (8,966 ) (10,461 ) (2,970 ) (13,431 ) Total held-for-investment loans, net 62,168 1,774,286 1,836,454 94,697 1,690,218 1,784,915 Total loans, net $96,931 $1,774,286 $1,871,217 $112,785 $1,690,218 $1,803,003 On February 2, 2017, we started applying fair value hedge accounting to certain single-family mortgage loans. The fair value hedge accounting related loan basis adjustments are included in the table above. We own both single-family loans, which are secured by one to four unit residential properties, and multifamily loans, which are secured by properties with five or more residential rental units. Our single-family loans are predominantly first lien, fixed-rate loans secured by the borrower’s primary residence. Upon acquisition, we classify a loan as either held-for-sale or held-for-investment. Loans that we have the ability and intent to hold for the foreseeable future are classified as held-for-investment. Loans that we intend to securitize using an entity we will consolidate are classified as held-for-investment both prior to and subsequent to their securitization. Otherwise, they will be classified as held-for-sale. Held-for-investment 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, upfront fees and other pricing adjustments). 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 (including lower-of-cost-or-fair-value adjustments) on single-family loans classified as held-for-sale are deferred and not amortized. We elected the fair value option for certain multifamily loans that we intend to securitize and sell to investors. Therefore, these multifamily 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. Cash flows related to loans originally classified as held-for-investment 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)). Cash flows related to loans originally classified as held-for-sale are classified as operating activities. During 2017 and 2016 , we purchased $343.0 billion and $388.9 billion , respectively, in UPB of single-family loans, and $5.3 billion and $6.1 billion , respectively, in UPB of multifamily loans that were classified as held-for-investment. Our sales of multifamily loans occur primarily through the issuance of multifamily K Certificates and SB Certificates. During 2017 and 2016 , we sold $61.9 billion and $49.9 billion , respectively, of held-for-sale multifamily loans. See Note 3 for more information on our issuances of K Certificates and SB Certificates. As part of our strategy to mitigate losses and reduce our holdings of less liquid assets, we completed sales of $8.7 billion and $4.2 billion in UPB of seasoned single-family loans during 2017 and 2016, respectively. In connection with our efforts to sell certain of our single-family loans, we reclassified $26.2 billion and $4.7 billion in UPB of seasoned single-family loans from held-for-investment to held-for-sale in 2017 and 2016 , respectively. In addition, we reclassified $1.6 billion in UPB of multifamily mortgage loans from held-for-investment to held-for-sale in 2017. We did not reclassify any multifamily mortgage loans in 2016. For additional information regarding the fair value of our loans classified as held-for-sale, see Note 15 . Interest Income We recognize interest income on an accrual basis except when we believe the collection 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. Cost basis adjustments on held-for-investment loans are amortized into interest income over the contractual lives of the loans using the effective interest method. A non-accrual 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 an 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. Credit Quality The current LTV ratio is one key factor we consider when estimating our loan loss reserves for single-family loans. As current LTV ratios increase, the borrower’s equity in the home decreases, which may 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 loan. A second-lien loan 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 loans. As of December 31, 2017 and 2016 , based on data collected by us at loan delivery, approximately 9% and 11% , respectively, of loans in our single-family credit guarantee portfolio had second-lien financing by third parties at origination of the first loan. However, borrowers are free to obtain second-lien financing after origination, and we are not entitled to receive notification when a borrower does so. For further information about concentrations of risk associated with our single-family and multifamily loans, see Note 14 . We discontinued our purchases of Alt-A, interest-only and option ARM loans a number of years ago. For reporting purposes: n 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 n 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. The table below presents the recorded investment of single-family held-for-investment loans by current LTV ratios. Our current LTV ratios are estimates based on available data through the end of each respective period presented. As of December 31, 2017 As of December 31, 2016 Current LTV Ratio Total Current LTV Ratio Total (In millions) ≤ 80 > 80 to 100 > 100 (1) ≤ 80 > 80 to 100 > 100 (1) 20 and 30-year or more, amortizing fixed-rate (2) $1,240,224 $214,177 $13,303 $1,467,704 $1,120,722 $236,111 $30,063 $1,386,896 15-year amortizing fixed-rate (2) 270,266 7,351 381 277,998 274,967 11,016 887 286,870 Adjustable-rate 48,596 2,963 28 51,587 52,319 2,955 85 55,359 Alt-A, interest-only and option ARM 21,013 4,256 1,429 26,698 26,293 9,392 4,634 40,319 Total single-family loans $1,580,099 $228,747 $15,141 $1,823,987 $1,474,301 $259,474 $35,669 $1,769,444 (1) The serious delinquency rate for the total of single-family held-for-investment mortgage loans with current LTV ratios in excess of 100% was 8.43% and 6.80% as of December 31, 2017 and 2016 , respectively. (2) The majority of our loan modifications result in new terms that include fixed interest rates after modification. As of December 31, 2017 and 2016 , we have categorized UPB of approximately $22.2 billion and $32.0 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. The following table presents the recorded investment in our multifamily held-for-investment loans, by credit quality indicator as of December 31, 2017 and 2016 . The multifamily credit quality indicator is based on available data through the end of each period presented. These indicators involve significant management judgment. (In millions) As of December 31, 2017 As of December 31, 2016 Credit risk profile by internally assigned grade: (1) Pass $20,963 $27,830 Special mention 301 502 Substandard 169 570 Doubtful — — Total $21,433 $28,902 (1) A loan categorized as: "Pass" is current and adequately protected by the current financial strength and debt service capacity of the borrower; In 2017, "Special mention" has administrative issues that may affect future repayment prospects but do not have current credit weaknesses, while in 2016, "Special mention" has signs of potential financial weakness; "Substandard" has a well-defined weakness that jeopardizes the timely full repayment; and "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions. Mortgage Loan Performance The following tables present the recorded investment of our single-family and multifamily loans, held-for-investment, by payment status. As of December 31, 2017 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure (1) Total Non-accrual Single-family: 20 and 30-year or more, amortizing fixed-rate $1,431,342 $18,297 $5,660 $12,405 $1,467,704 $12,401 15-year amortizing fixed-rate 275,864 1,288 290 556 277,998 556 Adjustable-rate 50,915 383 84 205 51,587 205 Alt-A, interest-only and option ARM 23,235 1,297 509 1,657 26,698 1,656 Total single-family 1,781,356 21,265 6,543 14,823 1,823,987 14,818 Total multifamily 21,414 — — 19 21,433 64 Total single-family and multifamily $1,802,770 $21,265 $6,543 $14,842 $1,845,420 $14,882 As of December 31, 2016 (In millions) Current One Two Three Months or (1) Total Non-accrual Single-family: 20 and 30-year or more, amortizing fixed-rate $1,354,511 $16,645 $4,865 $10,875 $1,386,896 $10,868 15-year amortizing fixed-rate 285,373 1,010 178 309 286,870 309 Adjustable-rate 54,738 354 77 190 55,359 190 Alt-A, interest-only and option ARM 35,994 1,748 650 1,927 40,319 1,927 Total single-family 1,730,616 19,757 5,770 13,301 1,769,444 13,294 Total multifamily 28,902 — — — 28,902 89 Total single-family and multifamily $1,759,518 $19,757 $5,770 $13,301 $1,798,346 $13,383 (1) Includes $4.1 billion and $5.3 billion of loans that were in the process of foreclosure as of December 31, 2017 and 2016 , respectively. We have the option under our PC master trust agreement to remove 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. When we remove loans from PC trusts, we record an extinguishment of the corresponding portion of the debt securities of the consolidated trusts and we reclassify the loans from mortgage loans held-for-investment by consolidated trusts to mortgage loans held-for-investment by Freddie Mac. We removed $6.3 billion and $6.8 billion in UPB of loans from PC trusts (or purchased delinquent loans associated with other mortgage-related guarantees) during the years ended December 31, 2017 and 2016 , respectively. The table below summarizes the delinquency rates of loans within our single-family credit guarantee and multifamily mortgage portfolios. (Dollars in millions) December 31, 2017 December 31, 2016 Single-family (1) Non-credit-enhanced portfolio: Serious delinquency rate 1.16 % 1.02 % Total number of seriously delinquent loans 81,668 77,662 Credit-enhanced portfolio: (2) Primary mortgage insurance: Serious delinquency rate 1.43 % 1.46 % Total number of seriously delinquent loans 23,275 21,460 Other credit protection: (3) Serious delinquency rate 0.53 % 0.43 % Total number of seriously delinquent loans 16,259 9,455 Total Single-family Serious delinquency rate 1.08 % 1.00 % Total number of seriously delinquent loans 116,662 107,170 Multifamily (4) Non-credit-enhanced portfolio: Delinquency rate 0.06 % 0.04 % UPB of delinquent loans $24 $19 Credit-enhanced portfolio: Delinquency rate 0.01 % 0.02 % UPB of delinquent loans $16 $37 Total Multifamily Delinquency rate 0.02 % 0.03 % UPB of delinquent loans $40 $56 (1) Serious delinquencies on single-family loans underlying certain REMICs, other securitization products and other mortgage-related guarantees may be reported on a different schedule due to variances in industry practice. (2) The credit enhanced categories are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and other credit protection. (3) Consists of single-family loans covered by financial arrangements (other than primary mortgage insurance) that are designed to reduce our credit risk exposure. See Note 6 for additional information on our credit enhancements. (4) Multifamily delinquency performance is based on the UPB of loans that are two monthly payments or more past due or those in the process of foreclosure. We continue to implement a number of initiatives to refinance and modify single-family loans. As part of these initiatives, we pay various incentives to servicers and borrowers. HAMP ended in December 2016. The relief refinance program is being replaced with the high LTV relief refinance (Enhanced Relief Refinance SM ) program, which will be available in January 2019 for loans originated on or after October 1, 2017. This program provides liquidity for borrowers who are current on their mortgages but are unable to refinance because their LTV ratios exceed our standard refinance limits. In addition, the HARP program has been extended for applications through December 31, 2018 to ensure that borrowers who have a high LTV ratio and are eligible for HARP will continue to have a refinance option. Loan Loss Reserves The loan loss reserves represent estimates of probable incurred credit losses. We recognize probable incurred losses by recording a charge to the provision for credit losses in our consolidated statements of comprehensive income. The loan loss reserves include: n Our allowance for loan losses, which pertains to all single-family and multifamily loans classified as held-for-investment on our consolidated balance sheets; and n Our reserve for guarantee losses, which pertains to single-family and multifamily loans underlying our K Certificates and SB Certificates, senior subordinate securitization structures, other securitization products and other mortgage-related guarantees. A significant portion of the unsecuritized single-family loans on our consolidated balance sheets include seriously delinquent and 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. The table below presents our loan loss reserves activity. Year Ended December 31, 2017 2016 Allowance for Loan Losses Reserve for Total Allowance for Loan Losses Reserve for Total (In millions) Held by Freddie Mac Held By Held by Freddie Mac Held By Single-family: Beginning balance $10,443 $2,968 $52 $13,463 $12,517 $2,775 $56 $15,348 Provision (benefit) for credit losses (1,447 ) 1,350 — (97 ) (1,384 ) 599 4 (781 ) Charge-offs (1) (4,939 ) (108 ) (4 ) (5,051 ) (1,757 ) (173 ) (8 ) (1,938 ) Recoveries 419 6 — 425 487 10 — 497 Transfers, net (2) 540 (540 ) — — 248 (248 ) — — Other (3) 235 4 — 239 332 5 — 337 Ending balance $5,251 $3,680 $48 $8,979 $10,443 $2,968 $52 $13,463 Multifamily: Beginning balance $18 $2 $15 $35 $38 $1 $20 $59 Provision (benefit) for credit losses 15 4 (6 ) 13 (17 ) — (5 ) (22 ) Charge-offs (1) (4 ) — — (4 ) (2 ) — — (2 ) Recoveries — — — — — — — — Transfers, net (2) (1 ) 1 — — (1 ) 1 — — Other (3) — — — — — — — — Ending balance $28 $7 $9 $44 $18 $2 $15 $35 Total: Beginning balance $10,461 $2,970 $67 $13,498 $12,555 $2,776 $76 $15,407 Provision (benefit) for credit losses (1,432 ) 1,354 (6 ) (84 ) (1,401 ) 599 (1 ) (803 ) Charge-offs (1) (4,943 ) (108 ) (4 ) (5,055 ) (1,759 ) (173 ) (8 ) (1,940 ) Recoveries 419 6 — 425 487 10 — 497 Transfers, net (2) 539 (539 ) — — 247 (247 ) — — Other (3) 235 4 — 239 332 5 — 337 Ending balance $5,279 $3,687 $57 $9,023 $10,461 $2,970 $67 $13,498 (1) The year ended December 31, 2016 does not include lower-of-cost-or-fair-value adjustments and other expenses related to property taxes and insurance recognized when we transfer loans from held-for-investment to held-for-sale, which totaled $1.2 billion . The year ended December 31, 2017 includes charge-offs of $3.8 billion related to the transfer of loans from held-for-investment to held-for-sale. (2) Relates to removal of delinquent single-family loans from consolidated trusts and resecuritization after such removal . (3) Primarily includes capitalization of past due interest on modified loans. Loan Loss Reserves Determined on a Collective Basis Single-Family Loans We estimate loan loss reserves on homogeneous pools of single-family loans using a model that evaluates a variety of factors affecting collectability. We review the outputs of this model by considering qualitative factors such as macroeconomic and other factors to see whether the model outputs are consistent with our expectations. Management adjustments may be necessary to take into consideration external factors and current economic events that have occurred but that are not yet reflected in the factors used to derive the model outputs. Significant judgment is exercised in making these adjustments. The homogeneous pools of single-family loans are determined based on common underlying characteristics, including current LTV ratios, trends in home prices, loan product type and geographic region. We rely upon third-parties to service our loans. At loan delivery, the seller provides us with loan data, which includes characteristics and underwriting information. Each subsequent month, the servicers provide us with monthly loan level servicing data, including delinquency and loss information. Our single-family loan loss reserve default models produce estimates based on 12 months of loan level performance data, which includes a history of delinquency, foreclosures, foreclosure alternatives and modifications. Our loan loss reserve estimate includes projections of: n Loss mitigation activities, including loan modifications for troubled borrowers and the incidence of redefault we have experienced on similar loans that have completed a loan modification; and n Defaults we believe are likely to occur as a result of loss events that have occurred through the respective balance sheet date. 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. 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. In determining our loan loss reserves, we also consider macroeconomic and other factors that affect 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. Our single-family loan loss reserve severity is based on the repeat housing sales index and actual REO dispositions, short sales and third-party sales that incorporate the most recent: n Twelve months of sales experience realized on our distressed property dispositions; and n Twelve months of pre-foreclosure expenses on our distressed properties, including REO, short sales and third-party sales. Our single-family loan loss severity estimate also captures expectations about recoveries from primary mortgage insurance or from seller/servicers due to repurchases. We use historical trends in home prices in our single-family loan loss reserve process, primarily through the use of current 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. For loans where foreclosure is probable, we measure impairment based upon an estimate of the fair value of the underlying collateral less estimated disposition costs. Our estimate also considers the effect of historical home price changes on borrower behavior. We apply proceeds from primary mortgage insurance and from 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 received in excess of our recorded investment in loans are recorded as a decrease to REO operations expense in our consolidated statements of comprehensive income. We record benefits related to most of our credit enhancements (e.g., primary mortgage insurance and certain ACIS insurance policies) when realization of our claims is deemed probable. We record benefits for certain of our other credit enhancements (e.g., certain STACR debt notes and certain senior subordinate securitization structures) when the realized loss event occurs. We generally record repurchase recoveries on a cash basis due to the uncertainty of the timing and amount of collections of such recoveries. Multifamily Loans Multifamily loans evaluated collectively for impairment are aggregated into book year vintage portfolios. Potential impairment related to these portfolios is measured by benchmarking published historical commercial loan performance data to those vintages based upon available economic data related to multifamily real estate, including apartment vacancy and rental rates. Loan Loss Reserves Determined on an Individual Basis We consider a loan to be impaired when, based on current information, it is probable that we will not receive all amounts due (including both principal and interest) in accordance with the contractual terms of the original loan agreement. Single-family loans individually evaluated for impairment include TDRs, as well as loans acquired under our financial guarantees with deteriorated credit quality prior to 2010. Multifamily loans individually evaluated for impairment include TDRs, loans three monthly payments or more past due and loans that are impaired based on management judgment. Troubled Debt Restructurings A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. 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 an insignificant delay in payment to be a concession. We generally consider a delay in monthly amortizing payments of three months or less to be insignificant. A concession typically includes one or more of the following being granted to the borrower: n A trial period where the expected permanent modification will change our expectation of collecting all amounts due at the original contract rate; n A delay in payment that is more than insignificant; n A reduction in the contractual interest rate; n Interest forbearance for a period of time that is more than insignificant or forgiveness of accrued but uncollected interest amounts; n Principal forbearance that is more than insignificant; and n Discharge of the borrower’s obligation in Chapter 7 bankruptcy. The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs during the years ended December 31, 2017 and 2016 , 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. Year Ended December 31, 2017 2016 (Dollars in millions) Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Single-family: (1) 20 and 30-year or more, amortizing fixed-rate 33,745 $4,818 35,503 $5,092 15-year amortizing fixed-rate 4,569 356 4,623 338 Adjustable-rate 892 128 969 140 Alt-A, interest-only and option ARM 2,784 495 3,115 548 Total single-family 41,990 5,797 44,210 6,118 Multifamily 1 — 2 8 Total 41,991 $5,797 44,212 $6,126 (1) The pre-TDR recorded investment for single-family loans initially classified as TDR during the years ended December 31, 2017 and 2016 was $5.8 billion and $6.2 billion , respectively. The table below presents the volume of our TDR modifications that experienced payment defaults (i.e., loans that became two months delinquent or completed a loss event) during the applicable periods and had completed a modification during the year preceding the payment default. The table presents loans based on their original product category before modification. Year Ended December 31, 2017 2016 (Dollars in millions) Number of Loans Post-TDR Recorded Investment (1) Number of Loans Post-TDR Recorded Investment (1) Single-family 20 and 30-year or more, amortizing fixed-rate 13,973 $2,231 16,139 $2,520 15-year amortizing fixed-rate 720 57 813 66 Adjustable-rate 225 33 277 41 Alt-A, interest-only and option ARM 1,254 253 1,535 305 Total single-family 16,172 $2,574 18,764 $2,932 Multifamily (2) — $— — $— (1) 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. (2) The post-TDR recorded investment is not meaningful. 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, 2017 and 2016 , 7,090 and 8,083 , respectively, of such loans (with a post-TDR recorded investment of $0.9 billion and $1.0 billion , respectively) experienced a payment default within a year after the loss mitigation activity occurred. 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, 2017 and 2016 , 867 and 1,154 , respectively, of such loans (with a post-TDR recorded investment of $0.1 billion in both periods) experienced a payment default within a year after the borrowers' Chapter 7 bankruptcy. Single-Family Loans Impairment of a single-family 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 "Interest Income" 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. 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. Approximately 37% and 43% of single-family loan modifications completed during 2017 and 2016, respectively, that were classified as TDRs involved interest rate reductions and, in certain cases, term extensions. Approximately 14% and 16% of single-family loan modifications completed during 2017 and 2016, respectively, that were classified as TDRs involved principal forbearance in addition to interest rate reductions and, in certain cases, term extensions. During 2017 and 2016, the average term extension was 176 months and 177 months, respectively, and the average interest rate reduction was 0.6% and 0.8% , respectively, on completed single-family loan modifications classified as TDRs. Substantially all of our completed single-family loan modifications classified as a TDR during 2017 resulted in a modified loan with a fixed interest rate. However, many of these fixed-rate loans include provisions for the reduced interest rates to remain fixed for the first five years of the modification and then increase at a rate of up to one percent per year until the interest rate has been adjusted to the market rate that was in effect at the time of the modification. 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 the underlying property’s operating performance as represented by its current DSCR, available credit enhancements, 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 Interes |
Guaratee Activities
Guaratee Activities | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
GUARANTEE ACTIVITIES | Guarantee Activities We generate revenue through our guarantee activities by agreeing to absorb the credit risk associated with certain financial instruments that are owned or held by third parties. In exchange for providing this guarantee, we receive an ongoing guarantee fee that is commensurate with the risks assumed and that will, over the long-term, provide us with cash flows that are expected to exceed the credit-related and administrative expenses of the underlying financial instruments. The profitability of our guarantee activities may vary and will be dependent on our guarantee fee and the actual credit performance of the underlying financial instruments that we have guaranteed. Guarantees to consolidated entities are eliminated in consolidation and therefore are not separately recognized on our consolidated balance sheets. The accounting treatment for guarantees provided to non-consolidated entities or other third parties will depend on whether the guarantee contract qualifies as a financial guarantee. If the guarantee contract qualifies as a financial guarantee and exposes us to incremental credit risk, we will recognize both a guarantee obligation at fair value and the consideration we receive for providing the guarantee, which typically consists of a guarantee asset that represents the fair value of future guarantee fees. As a practical expedient, the measurement of the fair value of the guarantee obligation is set equal to the consideration we receive to provide the guarantee, and no gain or loss is recognized upon issuance of the guarantee. Subsequently, we recognize changes in the fair value of the guarantee asset in current period earnings and amortize the guarantee obligation into earnings as we are released from risk under the guarantee. We also recognize a reserve for guarantee losses when it is probable that a loss has been incurred under the guarantee. If the guarantee contract provided to non-consolidated entities does not qualify as a financial guarantee, that contract will generally be accounted for as a credit derivative and measured at fair value on our consolidated financial statements. Guarantee Activities Our principal guarantee activities include the following: Securitization Activity Guarantees For substantially all of our securitization transactions, we guarantee the principal and interest payments on some or all of the issued beneficial interests. Typically, these guarantees will cover the senior classes of beneficial interests issued by the securitization trust(s). Securitization activity guarantees provided to non-consolidated trusts will generally be accounted for, and qualify as, financial guarantees. Our maximum exposure on these guarantees is generally limited to the UPB of the beneficial interests that we have guaranteed. Other Mortgage-related Guarantees In certain circumstances, we provide a guarantee of mortgage-related assets held by third parties, in exchange for a guarantee fee, without securitizing those assets. These guarantees consist of the following: n Long-term standby commitments of single-family loans which obligate us to purchase the covered loans when they become seriously delinquent. Periodically, certain of our customers seek to terminate long-term standby commitments and simultaneously enter into guarantor swap transactions to obtain our PCs backed by many of the same loans. During 2017 and 2016 , we guaranteed $0.5 billion and $3.6 billion , respectively, of loans under new long-term standby commitments; and n Guarantees of multifamily bonds, including guarantees that require us to advance funds to enable others to repurchase any tendered tax-exempt and related taxable bonds that are unable to be sold. The vast majority of these guarantees were guarantees of multifamily housing revenue bonds that were issued by HFAs. No advances under these guarantees were outstanding at both December 31, 2017 and 2016 . During 2017 and 2016, we guaranteed $1.1 billion and $1.7 billion , respectively, of multifamily bonds. Our other mortgage-related guarantees will generally be accounted for, and qualify as, financial guarantees. Our maximum exposure on these guarantees is limited to the UPB of the mortgage-related assets that we have guaranteed. Other Guarantees Measured at Fair Value Other guarantees that do not qualify as financial guarantees are generally accounted for as derivative instruments and measured at fair value. These guarantees primarily include: n Certain guarantees related to our securitization activities and other mortgage-related guarantees. n Certain market value guarantees, including written options and written swaptions. n Guarantees of third party derivative instruments. 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 16 for information on ongoing litigation. These indemnification guarantees will generally be accounted for and qualify as financial guarantees. The recognized liabilities on our consolidated balance sheets related to indemnifications were not significant at both December 31, 2017 and 2016 . The table below shows our maximum exposure, recognized liability and maximum remaining term of our recognized guarantees to non-consolidated VIEs and other third parties. This table does not include our unrecognized guarantees, such as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. The maximum exposure disclosed in the table 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, including possible recoveries under credit enhancement arrangements. See Note 6 for additional information on our credit enhancement arrangements. As of December 31, 2017 As of December 31, 2016 ( Dollars in millions , terms in years) Maximum (1) Recognized (2) Maximum Maximum (1) Recognized (2) Maximum Single-Family: Securitization activity guarantees $10,817 $120 40 $5,016 $22 40 Other mortgage-related guarantees 6,264 190 31 6,713 206 32 Total single-family $17,081 $310 $11,729 $228 Multifamily: Securitization activity guarantees $188,768 $2,305 40 $145,211 $1,510 39 Other mortgage-related guarantees 9,888 466 36 9,732 473 34 Total multifamily $198,656 $2,771 $154,943 $1,983 Other guarantees measured at fair value $9,661 $141 28 $6,396 $127 29 (1) The maximum exposure represents the contractual amounts that could be lost 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. For other guarantees measured at fair value, this amount represents the notional value if it relates to our market value guarantees or guarantees of third party derivative instruments; or the UPB if it relates to a guarantee of a mortgage-related asset. For certain of our other guarantees measured at fair value, our exposure may be unlimited. We generally reduce our exposure to these guarantees with unlimited exposure through separate contracts with third parties. (2) For securitization activity guarantees and other mortgage-related guarantees, this amount represents the guarantee obligation on our consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $57 million and $67 million as of December 31, 2017 and 2016 , respectively, and is included within other liabilities on our consolidated balance sheets. For other guarantees measured at fair value, this amount represents the fair value of the contract. |
Credit Enhancements
Credit Enhancements | 12 Months Ended |
Dec. 31, 2017 | |
Credit Enhancements [Abstract] | |
CREDIT ENHANCEMENTS | Credit Enhancements In connection with many of our mortgage loans, securitization activity guarantees, other mortgage-related guarantees and other credit risk transfer transactions, we obtain various forms of credit enhancements that reduce our exposure to credit losses. These credit enhancements may be attached to the underlying mortgage loans, freestanding or embedded in debt instruments. Attached Credit Enhancements Attached credit enhancements are obtained contemporaneously with, and in contemplation of, the origination of the underlying mortgage loans. These credit enhancements are considered attached, as they effectively travel with the loan upon sale. Attached credit enhancements include primary mortgage insurance that provides us with loan-level protection up to a specified amount. Expected recoveries from attached credit enhancements are considered in determining the allowance for loan losses, resulting in a reduction in the recognized provision for credit losses by the amount of the expected credit enhancement recoveries. See Note 4 for additional information concerning the determination of our loan loss reserves. The table below presents the total current and protected UPB and maximum coverage provided by our attached credit enhancements. For information about counterparty credit risk associated with mortgage insurers, see Note 14 . As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: Primary mortgage insurance $334,189 $85,429 $291,217 $74,345 (1) Underlying loans may be covered by more than one form of credit enhancement, including freestanding credit enhancements and debt with embedded credit enhancements. (2) Represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. Freestanding Credit Enhancements Freestanding credit enhancements are contracts that are entered into separately from the origination of the mortgage loans or entered into in conjunction with some other transaction and are legally detachable and separately exercisable. Freestanding credit enhancements are accounted for separately from the underlying mortgage loans. In connection with our securitization activity guarantees, we obtain freestanding credit enhancement through the creation of unguaranteed subordinated securities. In these transactions, the securities that are subordinate to our guarantee provide protection by absorbing first losses prior to us having to perform on our guarantee of the senior securities. We recognize a reserve for guarantee losses when it is probable that a loss has been incurred under our guarantee, which occurs only when losses exceed subordination. ACIS transactions are insurance policies we purchase, generally underwritten by a group of insurers and reinsurers, that provide credit protection for certain specified credit events that occur on a reference pool of single-family mortgage loans. When specific credit events occur, we receive compensation from the insurance policy up to an aggregate limit based on actual losses. We require our counterparties to partially collateralize their exposure to reduce the risk that we will not be reimbursed for our claims under the policies. As of December 31, 2017 and 2016, our counterparties posted collateral on our ACIS transactions of $1.1 billion and $877 million , respectively. Under the ACIS contracts, we pay insurers and reinsurers direct premiums for insurance coverage. Each month, we accrue for our obligation to make such payments for all tranches covered by the ACIS contracts. Expected recoveries for credit losses covered under the ACIS contracts are recognized separately in other assets on our consolidated balance sheets, with an offset to other income when realization of our claims for recovery is deemed probable. We also have various other credit enhancements that provide credit protection on our single-family loans, where we recognize a separate credit enhancement asset in other assets on our consolidated balance sheets upon acquisition of coverage. If the coverage is acquired as part of a transaction in which we also acquire mortgage loans, the credit enhancement asset is recognized based on the relative fair values of the consideration paid for the mortgage loan and the credit enhancement. If the coverage is acquired as a standalone transaction, the credit enhancement asset is recognized at cost. Subsequent accounting for credit enhancement assets and expected recoveries assets are the same as for ACIS transactions. The Multifamily segment also has various other credit enhancements, primarily related to our mortgage loans, certain other securitization products and other mortgage-related guarantees, in the form of collateral posting requirements, indemnification, bond insurance, recourse and other similar arrangements. These credit enhancements, along with the proceeds received from the sale of the underlying mortgage collateral, are designed to recover all or a portion of our losses on our mortgage loans or the amounts paid under our financial guarantee contracts. Our historical losses paid under our guarantee contracts and related recoveries pursuant to these agreements have not been significant and therefore these other types of credit enhancements are excluded from the table below. The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to our single-family and multifamily freestanding credit enhancements. As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: Subordination (non-consolidated VIEs) $8,953 $1,734 $2,701 $522 ACIS 617,730 6,736 453,670 5,355 Other (3) 15,975 6,479 12,827 7,373 Total Single-family 14,949 13,250 Multifamily: Subordination (non-consolidated VIEs) 187,299 30,689 143,802 24,522 Other (4) 1,833 726 1,159 701 Total Multifamily 31,415 25,223 Total Single-family and Multifamily freestanding credit enhancements $46,364 $38,473 (1) Underlying loans may be covered by more than one form of credit enhancement, including attached credit enhancements and debt with embedded credit enhancements. For subordination, total current and protected UPB represents the UPB of the guaranteed securities. (2) For subordination, maximum coverage represents the UPB of the securities that are subordinate to our guarantee and held by third parties. For all other freestanding credit enhancements, maximum coverage represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. (3) Includes seller indemnification, Deep MI CRT, lender recourse and indemnification agreements, pool insurance, HFA indemnification, and other credit enhancements. (4) Consists of multifamily HFA indemnification and loss reimbursement agreements with third parties obtained in certain of our Q Certificate transactions. Debt with Embedded Credit Enhancements In addition to our attached and freestanding credit enhancements, we also transfer credit risk after acquisition or guarantee of mortgage assets by either issuing unsecured debt with embedded credit enhancements or recognizing debt of consolidated VIEs that include structural credit enhancements. Unsecured Debt with Embedded Credit Enhancements For certain of our unsecured debt issuances, we create a reference pool of mortgage assets (generally loans) to which we currently have credit risk exposure and an associated securitization-like structure with notional credit risk positions. To the extent a specified credit event occurs on the mortgage assets in the reference pool, the outstanding balance of our debt obligations is written down, thereby reducing our future principal and interest payment obligations. The principal types of unsecured debt with embedded credit enhancements are single-family STACR debt notes and multifamily SCR debt notes. Most of our STACR debt notes are recorded as other debt on our consolidated balance sheets and accounted for at amortized cost. When the realized loss events (e.g., third-party foreclosure sale, short sale, or REO disposition) occur on the underlying loans in the reference pool, the STACR debt notes are written down and the benefits are recognized as gains on extinguishment of debt on our consolidated statements of comprehensive income. The structure of Multifamily SCR debt notes is similar to STACR debt notes, although the mortgage assets within the reference pool may be loans or bonds to which we have credit exposure. While our SCR debt notes are recorded as other debt on our consolidated balance sheets, these debt obligations are measured at fair value, as we elected the fair value option for them. Fair value changes are recorded in other income in our consolidated statement of comprehensive income. Consolidated Debt with Structural Credit Enhancements Similar to our non-consolidated VIEs, we obtain credit enhancement in certain of our consolidated senior subordinate and other securitization products through the creation of unguaranteed subordinated securities. These unguaranteed subordinated securities will absorb first losses on the underlying loans prior to us performing pursuant to our guarantee obligation. The unguaranteed subordinated debt securities held by third parties are recorded as debt of consolidated trusts on our consolidated balance sheets and accounted for at amortized cost. When losses are realized on the loans underlying the securities, the subordinated debt is written down and the benefits are recognized as gains on extinguishment of debt on our consolidated statements of comprehensive income. The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to debt with embedded credit enhancements. As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: STACR debt notes $604,356 $17,788 $427,978 $14,507 Subordination (consolidated VIEs) 3,330 179 1,287 83 Total Single-family 17,967 14,590 Multifamily: SCR debt notes 2,732 137 1,898 95 Subordination (consolidated VIEs) 1,800 180 — — Total Multifamily 317 95 Total Single-family and Multifamily debt with embedded credit enhancements $18,284 $14,685 (1) Underlying loans may be covered by more than one form of credit enhancement, including attached credit enhancements and freestanding credit enhancements. For STACR debt notes and SCR debt notes, total current and protected UPB represents the UPB of the assets included in the reference pool. For subordination, total current and protected UPB represents the UPB of the guaranteed securities. (2) For STACR debt notes and SCR debt notes, maximum coverage amount represents the outstanding balance of the STACR debt notes and SCR debt notes held by third parties. For subordination, maximum coverage amount represents the UPB of the securities that are subordinate to our guarantee and held by third parties. |
Investments in Securities
Investments in Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN SECURITIES | Investments in Securities The table below summarizes the fair values of our investments in debt securities by classification. (In millions) As of December 31, 2017 As of December 31, 2016 Trading securities $40,721 $44,790 Available-for-sale securities 43,597 66,757 Total $84,318 $111,547 We currently classify and account for our securities as either available-for-sale or trading. As of December 31, 2017 and 2016, we did 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, net of income taxes and other gains (losses) on investment securities recognized in earnings, respectively. See Note 15 for more information on how we determine the fair value of securities. We generally record purchases and sales of securities on the trade date when the related forward commitments are exempt from the accounting guidance for derivatives. Alternatively, we record purchases and sales of securities on the expected settlement date, with a corresponding derivative recorded on the trade date, when the related forward commitments are not exempt from the accounting guidance for derivatives. We include interest on securities in our consolidated statements of comprehensive income. For most of our securities, interest income is recognized using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts and other basis adjustments, are amortized into interest income over the contractual lives of the securities. For certain securities, interest income is recognized using the prospective effective interest method. We apply this method to securities that: n Can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment; n Are not of high credit quality at acquisition; or n Have been determined to be other-than-temporarily impaired. Under this method, we recognize as interest income, over the life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. For securities classified as trading or available-for-sale, we classify the cash flows as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities. Trading Securities The table below presents the estimated fair values by major security type for our securities classified as trading. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities. (In millions) As of December 31, 2017 As of December 31, 2016 Mortgage-related securities: Freddie Mac $12,235 $15,343 Other agency 3,574 8,161 Non-agency RMBS 750 113 Non-agency CMBS 1,343 36 Total mortgage-related securities 17,902 23,653 Non-mortgage-related securities 22,819 21,137 Total fair value of trading securities $40,721 $44,790 For trading securities held at December 31, 2017 , 2016 and 2015, we recorded net unrealized gains (losses) of ($365) million , ($791) million and ($856) million during 2017, 2016 and 2015, respectively. Available-for-Sale Securities At December 31, 2017 and 2016, all available-for-sale securities were mortgage-related securities. The table below presents the amortized cost, gross unrealized gains and losses, and fair value by major security type for our securities classified as available-for-sale. As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $35,433 $499 $— ($462 ) $35,470 Other agency 2,008 56 — (11 ) 2,053 Non-agency RMBS 3,012 927 (5 ) (1 ) 3,933 Non-agency CMBS 1,773 22 (9 ) (2 ) 1,784 Obligations of states and political subdivisions 352 5 — — 357 Total available-for-sale securities $42,578 $1,509 ($14 ) ($476 ) $43,597 As of December 31, 2016 Amortized Cost Gross Gross Unrealized Losses Fair Value (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $43,671 $563 $— ($582 ) $43,652 Other agency 4,127 119 — (25 ) 4,221 Non-agency RMBS 10,606 1,271 (62 ) (18 ) 11,797 Non-agency CMBS 6,288 160 (3 ) (23 ) 6,422 Obligations of states and political subdivisions 657 8 — — 665 Total available-for-sale securities $65,349 $2,121 ($65 ) ($648 ) $66,757 (1) Represents the gross unrealized losses for securities for which we have previously recognized other-than-temporary impairment in earnings. (2) Represents the gross unrealized losses for securities for which we have not previously recognized other-than-temporary impairment in earnings. The fair value of our available-for-sale securities held at December 31, 2017 scheduled to contractually mature after ten years was $41.1 billion , with an additional $1.9 billion scheduled to contractually mature after five years through ten years. Available-For-Sale Securities in a Gross Unrealized Loss Position The table below presents available-for-sale securities in a gross unrealized loss position, and whether such securities have been in a gross unrealized loss position for less than 12 months, or 12 months or greater. As of December 31, 2017 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities: Freddie Mac $10,337 ($107 ) $9,251 ($355 ) Other agency 40 — 1,079 (11 ) Non-agency RMBS 5 — 105 (6 ) Non-agency CMBS 1,026 (2 ) 52 (9 ) Obligations of states and political subdivisions 12 — 21 — Total available-for-sale securities in a gross unrealized loss position $11,420 ($109 ) $10,508 ($381 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater (In millions) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Available-for-sale securities: Freddie Mac $19,786 ($559 ) $1,732 ($23 ) Other agency 542 (6 ) 2,040 (19 ) Non-agency RMBS 309 (1 ) 2,188 (79 ) Non-agency CMBS 383 (2 ) 204 (24 ) Obligations of states and political subdivisions 83 — — — Total available-for-sale securities in a gross unrealized loss position $21,103 ($568 ) $6,164 ($145 ) At December 31, 2017 , total gross unrealized losses on available-for-sale securities were $0.5 billion . The gross unrealized losses relate to 290 separate securities. 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 an individual security may be in a gross unrealized gain position, while other lots for that security may be in a gross unrealized loss position. Impairment Recognition on Investments in Securities We evaluate available-for-sale securities in an unrealized loss position as of the end of each quarter to determine whether the decline in value is other-than-temporary. An unrealized loss exists when the fair value of an individual lot is less than its amortized cost basis. As discussed further below, certain other-than-temporary impairment losses are recognized in earnings. Other-than-temporary impairment is considered to have occurred if the fair value of the security lot is less than its amortized cost basis and we either intend to sell the security or more likely than not will be required to sell the security lot prior to recovery of its amortized cost basis. Under these circumstances, 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 amortized cost basis, 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 its amortized cost basis. The present value of cash flows expected to be collected represents our estimate of future contractual cash flows that we expect to collect, discounted at the security’s original effective interest rate or, if applicable, the effective interest rate determined based on significantly improved cash flows subsequent to a prior other-than-temporary impairment. The evaluation of whether unrealized losses on available-for-sale securities are other-than-temporary requires significant management judgments, assumptions and consideration of numerous factors. We perform an evaluation on a security lot 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. Freddie Mac and Other Agency Securities The principal and interest on these securities are guaranteed. We generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we consider unrealized losses on these securities to be temporary. Non-Agency Commercial Mortgage-Backed Securities Non-agency CMBS are exposed to stresses in the commercial real estate market. We use an external model that utilizes underlying collateral performance, current and expected credit enhancements, and assumptions about the underlying collateral cash flows to identify securities that may have an increased risk of failing to make their contractual payments. While it is possible that, under certain conditions, collateral losses on our non-agency 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, 2017. Non-Agency Residential Mortgage-Backed Securities Backed by Subprime, Option ARM, Alt-A and Other Loans We believe the unrealized losses on the non-agency RMBS we hold are mainly attributable to poor underlying collateral performance, limited liquidity and risk premiums. In evaluating securities for impairment, we use an internal model that considers the credit performance of the underlying collateral, including current LTV ratio, delinquency status, servicer performance, loan modification terms and status, borrower credit information and the collectability of amounts from bond insurers. The model also incorporates assumptions about the economic environment, including future home prices and interest rates to project underlying collateral prepayment speeds, delinquency and default rates and loss severities. Circumstances in which it is expected that a principal and interest shortfall will occur and 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 in earnings. For additional information regarding bond insurers, see Note 14 . 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, 2017 . 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. Other-than-temporary Impairments We recognized $18 million , $191 million and $292 million in net impairment of available-for-sale securities in earnings during 2017, 2016 and 2015, respectively. For our available-for-sale securities in an unrealized loss position at December 31, 2017, we have asserted that we have no intent to sell and believe it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis. The ending balance of remaining credit losses on available-for-sale securities where a portion of other-than-temporary impairment was recognized in other comprehensive income was $1.1 billion , $4.1 billion and $5.3 billion as of 4Q 2017, 4Q 2016 and 4Q 2015, respectively. Realized Gains and Losses on Sales of Available-For-Sale 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. The table below summarizes the gross realized gains and gross realized losses from the sale of available-for-sale securities. Year Ended December 31, (In millions) 2017 2016 2015 Gross realized gains $1,792 $1,062 $1,371 Gross realized losses (66 ) (91 ) (33 ) Net realized gains $1,726 $971 $1,338 Non-Cash Investing and Financing Activities From time to time, we contribute PCs and Giant PCs held in our mortgage-related investments portfolio to non-consolidated REMIC trusts in exchange for beneficial interests in those same REMIC trusts. We account for this type of transaction as the acquisition of investment securities and the issuance of debt securities of consolidated trusts. During the years ended December 31, 2017 and 2015, we received investment securities as consideration for the issuance of debt securities of consolidated trusts of $0.9 billion and $0.3 billion , respectively, as a result of these transactions. We did not have such activity during the year ended December 31, 2016. In addition, from time to time, we may recombine all of the outstanding beneficial interests in a REMIC trust to effectively recreate the original Giant PC trust. In certain cases, we may receive only beneficial interests in the Giant PC trust as proceeds for our contribution of the collateral. Because the beneficial interest issued by the Giant PC is substantially the same as the PCs that ultimately collateralized the trust, we account for our interest in the Giant PC as an extinguishment of the outstanding debt securities of the underlying PC trusts. As a result, we account for this type of transaction as the transfer of investment securities in exchange for the extinguishment of debt securities of consolidated trusts. During the years ended December 31, 2017 and 2015, we extinguished debt securities of consolidated trusts as consideration for the transfer of investment securities of $0.2 billion and $0.5 billion as a result of these transactions. We did not have such activity during the year ended December 31, 2016. During the fourth quarter of 2017, the following non-cash investing activities occurred: n We purchased $2.8 billion and sold $2.9 billion of non-mortgage-related securities that were traded, but not settled. We settled our purchase obligation during the first quarter of 2018. n We transferred unguaranteed multifamily CMBS securities to a non-consolidated resecuritization trust in exchange for guaranteed multifamily CMBS securities in the amount of $2.9 billion , of which $1.3 billion was reclassified from available-for-sale to trading. |
Debt Securities and Subordinate
Debt Securities and Subordinated Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT SECURITIES AND SUBORDINATED BORROWINGS | Debt Securities and Subordinated Borrowings The table below summarizes the interest expense per our consolidated statements of comprehensive income and the balances of total debt, net per our consolidated balance sheets. Balance, Net Interest Expense As of December 31, For The Year Ended December 31, (In millions) 2017 2016 2017 2016 2015 Debt securities of consolidated trusts held by third parties $1,720,996 $1,648,683 $47,656 $44,599 $45,536 Other debt: Short-term debt 73,069 71,451 615 350 173 Long-term debt 240,565 281,870 5,372 5,837 6,435 Total other debt 313,634 353,321 5,987 6,187 6,608 Total debt, net $2,034,630 $2,002,004 $53,643 $50,786 $52,144 On November 30, 2017, we started applying fair value hedge accounting to certain debt issuances. The fair value hedge accounting related basis adjustments are included in the table above. Debt securities that we issue are classified as either debt securities of consolidated trusts held by third parties or other debt. We issue other debt to fund our operations. With the exception of certain debt for which we elected the fair value option or designated in a qualifying fair value hedge relationship, our debt is reported at amortized cost. Deferred items, including premiums, discounts, issuance costs and hedging-related basis adjustments, are reported as a component of total debt, net. 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 debt that contains embedded derivatives, including certain STACR and SCR debt notes. For additional information on STACR and SCR debt notes, see Note 6 . Changes in the fair value of these debt obligations are recorded in other income, with any upfront costs and fees incurred or received in exchange for the issuance of the debt being recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. For additional information on our election of the fair value option, see Note 15 . When we repurchase or call outstanding debt securities, we recognize the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of gains (losses) on extinguishment of 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 as incurred 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 into interest expense over the life of the modified debt security using the effective interest method and fees paid to third parties are expensed as incurred. 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. 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" generally 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 for information regarding restrictions on the amount of mortgage-related securities that we may own. Our debt cap under the Purchase Agreement was $407.2 billion in 2017 and declined to $346.1 billion on January 1, 2018. As of December 31, 2017 , our aggregate indebtedness for purposes of the debt cap was $316.7 billion . Our aggregate indebtedness primarily includes the par value of other short- and long-term debt. 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. Debt securities of consolidated trusts held by third parties are subject to prepayment risk as their payments are based upon the performance of the underlying mortgage loans that may be prepaid by the related mortgage borrower at any time without penalty. The table below summarizes the debt securities of consolidated trusts held by third parties based on underlying loan product type. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Contractual Maturity UPB Carrying Amount (1) Weighted Average Coupon (2) Contractual Maturity UPB Carrying Amount (1) Weighted Average Coupon (2) Single-family: 30-year or more, fixed-rate 2018 - 2055 $1,278,911 $1,318,350 3.68 % 2017 - 2055 $1,193,329 $1,229,849 3.71 % 20-year fixed-rate 2018 - 2038 73,866 76,022 3.43 % 2017 - 2037 74,033 76,331 3.49 % 15-year fixed-rate 2018 - 2033 260,633 266,241 2.86 % 2017 - 2032 267,739 273,978 2.90 % Adjustable-rate 2018 - 2048 47,169 48,220 2.85 % 2017 - 2047 52,991 54,205 2.69 % Interest-only 2026 - 2041 7,303 7,379 3.74 % 2026 - 2041 10,007 10,057 3.47 % FHA/VA 2018 - 2046 847 866 4.85 % 2017 - 2046 1,015 1,038 4.92 % Total Single-family 1,668,729 1,717,078 1,599,114 1,645,458 Multifamily 2019-2047 3,876 3,918 3.99 % 2019 - 2033 3,048 3,225 4.63 % Total debt securities of consolidated trusts held by third parties $1,672,605 $1,720,996 $1,602,162 $1,648,683 (1) Includes $639 million and $144 million at December 31, 2017 and 2016, respectively, of debt of consolidated trusts that represents the fair value of debt securities with the fair value option elected. (2) The effective rate for debt securities of consolidated trusts held by third parties was 2.84% and 2.63% as of December 31, 2017 and 2016, respectively. Other Short-Term Debt As indicated in the table below, a majority of other short-term debt consisted of discount notes and Reference Bills® securities, paying only principal at maturity. Discount notes, Reference Bills® securities and medium-term notes are unsecured general corporate obligations. Securities sold under agreements to repurchase are effectively collateralized borrowings where we sell securities with an agreement to repurchase such securities at a future date. 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. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Par Value Carrying Amount Weighted Average Effective Rate Par Value Carrying Amount Weighted Average Effective Rate Other short-term debt: Discount notes and Reference Bills ® $45,717 $45,596 1.19 % $61,042 $60,976 0.47 % Medium-term notes 17,792 17,792 1.03 % 7,435 7,435 0.41 % Securities sold under agreements to repurchase 9,681 9,681 1.06 % 3,040 3,040 0.42 % Total other short-term debt $73,190 $73,069 1.14 % $71,517 $71,451 0.47 % Other Long-Term Debt The table below summarizes our other long-term debt. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Par Value Carrying Amount Weighted Average Effective Rate (2) Other long-term debt: Other senior debt: Fixed-rate: Medium-term notes — callable 2018 - 2037 $86,311 $86,284 1.47 % $76,412 $76,383 1.24 % Medium-term notes — non-callable 2018 - 2028 10,839 10,973 1.40 % 13,742 13,987 1.08 % Reference Notes securities — non-callable 2018 - 2032 79,991 80,019 2.17 % 118,702 118,727 2.17 % STACR and SCR 2031 - 2042 137 140 12.77 % 95 95 13.00 % Variable-rate: Medium-term notes — callable 2018 - 2032 27,510 27,475 1.95 % 21,008 20,972 1.94 % Medium-term notes — non-callable 2018 - 2026 14,746 14,746 0.68 % 33,077 33,076 0.48 % STACR 2023 - 2042 17,788 18,198 5.00 % 14,507 14,745 4.34 % Zero-coupon: Medium-term notes — callable — — — % 1,000 296 6.17 % Medium-term notes — non-callable 2018 - 2039 5,141 2,415 5.94 % 5,792 2,925 5.01 % Other — — — — % 438 281 5.93 % Hedging-related basis adjustments N/A (79 ) N/A 15 Total other senior debt 242,463 240,171 284,773 281,502 Other subordinated debt: Fixed-rate 2018 121 121 7.83 % 121 120 7.84 % Zero-coupon 2019 332 273 10.51 % 332 248 10.51 % Total other subordinated debt 453 394 453 368 Total other long-term debt $242,916 $240,565 2.04 % $285,226 $281,870 1.81 % (1) Represents par value, net of associated discounts or premiums and issuance costs. Includes $5.2 billion and $5.9 billion at December 31, 2017 and 2016, respectively, of other long term-debt that represents the fair value of debt securities with the fair value option elected. (2) Based on carrying amount. 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. The table below summarizes the contractual maturities of other long-term debt securities at December 31, 2017 . (In millions) Par Value Annual Maturities Other long-term debt (excluding STACR and SCR): 2018 $70,557 2019 57,689 2020 38,117 2021 22,809 2022 18,538 Thereafter 17,281 Debt securities of consolidated trusts held by third parties, STACR and SCR (1) 1,690,530 Total 1,915,521 Net discounts, premiums, debt issuance costs, hedge-related and other basis adjustments (2) 46,040 Total debt securities of consolidated trusts held by third parties, STACR, SCR and other long-term debt $1,961,561 (1) Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrower at any time without penalty. (2) Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk. 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, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | Derivatives On October 1, 2017, we adopted accounting guidance that modifies the presentation of hedge accounting results disclosed in our consolidated statements of comprehensive income and in the notes to the consolidated financial statements. For qualifying fair value hedge relationships, the modifications include presenting all changes in the fair value of the derivative hedging instrument in the same consolidated statements of comprehensive income line used to present the earnings effect of the hedged item. For qualifying fair value hedge relationships, the modifications also include separate disclosures of cumulative basis adjustments and their impact to the hedged item’s carrying value. 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 not in qualifying fair value hedge relationships are recorded as derivative gains (losses) in our consolidated statements of comprehensive income. 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. We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We generally elect to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in earnings. 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. Use of Derivatives We use derivatives primarily to hedge interest-rate sensitivity mismatches between our financial assets and 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, models and economics. When we use derivatives to mitigate our exposures, we consider a number of factors, including cost, exposure to counterparty credit risk and our overall risk management strategy. We classify derivatives into three categories: n Exchange-traded derivatives; n Cleared derivatives; and n OTC derivatives. Exchange-traded derivatives include standardized interest-rate futures contracts and options on futures contracts. Cleared derivatives include 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: n LIBOR-based interest-rate swaps; n LIBOR- and Treasury-based purchased options (including swaptions); and n LIBOR- and Treasury-based exchange-traded futures. We also purchase swaptions on credit indices in order to obtain protection against adverse movements in multifamily spreads which may affect the profitability of our K Certificate or SB Certificate transactions. In addition to swaps, futures and purchased options, our derivative positions include written options and swaptions, commitments and credit derivatives. Written Options and Swaptions Written call and put swaptions are sold to counterparties allowing them the option to enter into receive-fixed 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 commitments to: n Purchase and sell investments in securities; n Purchase and sell loans; and n 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. Credit Derivatives We have purchased 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. Hedge Accounting Fair Value Hedges On February 2, 2017, we started applying fair value hedge accounting to certain single-family mortgage loans where we hedge the changes in fair value of these loans attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. The hedge period is one day, and we re-balance our hedge relationships on a daily basis. In addition, on November 30, 2017, we started applying fair value hedge accounting to certain issuances of debt where we hedge the changes in fair value of the debt attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. We apply hedge accounting to qualifying hedge relationships. A qualifying hedge relationship exists when changes in the fair value of a derivative hedging instrument are expected to be highly effective in offsetting changes in the fair value of the hedged item attributable to the risk being hedged during the term of the hedge relationship. No amounts have been excluded from the assessment of hedge effectiveness. To assess hedge effectiveness, we use a statistical regression analysis. At inception of the hedge relationship, we prepare formal contemporaneous documentation of our risk management objective and strategies for undertaking the hedge. Beginning on October 1, 2017, due to the adoption of amended hedge accounting guidance, if a hedge relationship qualifies for fair value hedge accounting, all changes in fair value of the derivative hedging instrument, including interest accruals, are recognized in the same consolidated statements of comprehensive income line item used to present the earnings effect of the hedged item. Therefore, changes in the fair value of the hedged item, mortgage loans and debt, attributable to the risk being hedged are recognized in interest income - mortgage loans and interest expense, respectively, along with the changes in the fair value of the respective derivative hedging instruments. Prior to October 1, 2017, if the hedge relationship qualified for hedge accounting, changes in fair value of the derivative hedging instrument and changes in the fair value of the hedged item attributable to the risk being hedged were recognized in other income (loss) and interest accruals on the derivative hedging instrument were included in derivative gains (losses). Changes in the fair value of the hedged item attributable to the risk being hedged are recognized as a cumulative basis adjustment against the mortgage loans and debt. The cumulative basis adjustments are amortized to the same consolidated statements of comprehensive income line item used to present the changes in fair value of the hedged item using the effective interest method considering the contractual terms of the hedged item, with amortization beginning no later than the period in which hedge accounting was discontinued. Cash Flow Hedges 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. Amounts reclassified from AOCI are recorded in interest expense. In the years ended December 31, 2017 and 2016 , we reclassified from AOCI into earnings, losses of $164 million and $192 million , respectively, related to closed cash flow hedges. See Note 11 for information about future reclassifications of deferred net losses related to closed cash flow hedges to net income. Derivative Assets and Liabilities at Fair Value The table below presents the notional value and fair value of derivatives reported on our consolidated balance sheets. As of December 31, 2017 As of December 31, 2016 Notional or Contractual Amount Derivatives at Fair Value Notional or Contractual Amount Derivatives at Fair Value (In millions) Assets Liabilities Assets Liabilities Not designated as hedges Interest-rate swaps: Receive-fixed $213,717 $2,121 ($1,224 ) $313,106 $4,337 ($2,703 ) Pay-fixed 185,400 751 (5,008 ) 271,477 2,586 (9,684 ) Basis (floating to floating) 5,244 — (2 ) 1,450 1 — Total interest-rate swaps 404,361 2,872 (6,234 ) 586,033 6,924 (12,387 ) Option-based: Call swaptions Purchased 58,975 2,709 — 60,730 2,817 — Written 4,650 — (101 ) 1,350 — (78 ) Put swaptions Purchased (1) 47,810 1,058 — 48,080 1,442 — Written 3,000 — (20 ) 3,200 — (28 ) Other option-based derivatives (2) 10,683 757 — 11,032 795 — Total option-based 125,118 4,524 (121 ) 124,392 5,054 (106 ) Futures 267,385 — — 138,294 — — Commitments 54,207 44 (64 ) 45,353 289 (151 ) Credit derivatives 3,569 7 (46 ) 2,951 1 (27 ) Other 2,906 1 (19 ) 2,879 — (21 ) Total derivatives not designated as hedging instruments 857,546 7,448 (6,484 ) 899,902 12,268 (12,692 ) Designated as fair value hedges Interest-rate swaps: Receive-fixed 83,352 2 (714 ) — — — Pay-fixed 69,402 1,388 (291 ) — — — Total derivatives designated as fair value hedges 152,754 1,390 (1,005 ) — — — Derivative interest receivable (payable) 1,407 (1,596 ) 1,442 (1,770 ) Netting adjustments (3) (9,870 ) 8,816 (12,963 ) 13,667 Total derivative portfolio, net $1,010,300 $375 ($269 ) $899,902 $747 ($795 ) (1) Includes swaptions on credit indices with a notional or contractual amount of $13.4 billion and $10.9 billion at December 31, 2017 and December 31, 2016, respectively, and a fair value of $5 million at both December 31, 2017 and December 31, 2016. (2) Primarily consists of purchased interest-rate caps and floors and options on Treasury futures. (3) Represents counterparty netting and cash collateral netting. See Note 10 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, including the accrual of periodic cash settlements, while not designated in qualifying hedge relationships and reported on our consolidated statements of comprehensive income as derivative gains (losses). In addition, for the first three quarters of 2017, the table includes the accrual of periodic cash settlements on derivatives in qualifying hedge relationships. Year Ended December 31, (In millions) 2017 2016 2015 Not designated as hedges Interest-rate swaps: Receive-fixed ($1,343 ) ($3,539 ) $35 Pay-fixed 1,972 3,717 (811 ) Basis (floating to floating) (3 ) — (2 ) Total interest-rate swaps 626 178 (778 ) Option based: Call swaptions Purchased (404 ) 234 371 Written 24 (45 ) (9 ) Put swaptions Purchased (673 ) 210 (249 ) Written 50 35 77 Other option-based derivatives (1) (38 ) (13 ) 68 Total option-based (1,041 ) 421 258 Other: Futures 144 334 (5 ) Commitments (91 ) 631 63 Credit derivatives (29 ) (75 ) (37 ) Other (7 ) (3 ) 1 Total other 17 887 22 Accrual of periodic cash settlements: Receive-fixed interest-rate swaps 1,511 2,316 2,568 Pay-fixed interest-rate swaps (3,101 ) (4,077 ) (4,768 ) Other — 1 2 Total accrual of periodic cash settlements (1,590 ) (1,760 ) (2,198 ) Total ($1,988 ) ($274 ) ($2,696 ) (1) Primarily consists of purchased interest-rate caps and floors and options on Treasury futures. The table below presents the gains and losses on derivatives and hedged items while designated in qualifying fair value hedge relationships. During 2016, there were no derivatives designated in qualifying fair value hedge relationships. Year Ended December 31, 2017 (In millions) Interest Income - Mortgage Loans Interest Expense Other Income (Loss) Total amounts of income and expense line items presented in our consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $63,735 ($53,643 ) $7,480 Gain or (loss) on fair value hedging relationships: Interest contracts on mortgage loans held-for-investment: (1) Hedged items ($107 ) $— $351 Derivatives designated as hedging instruments (2) $313 $— ($215 ) Interest contracts on debt: Hedged items $— $93 $— Derivatives designated as hedging instruments (3) $— ($53 ) $— (1) For the first three quarters of 2017, the gains or losses on derivatives and hedged items were recorded in other income (loss). Beginning in 4Q 2017, gains or losses are recorded in interest income - mortgage loans in our consolidated statements of comprehensive income due to adoption of amended hedge accounting guidance. (2) The gain or (loss) on fair value hedging relationships excludes $(83) million of interest accruals which were recorded in interest income - mortgage loans in our consolidated statements of comprehensive income. (3) The gain or (loss) on fair value hedging relationships excludes $8 million of interest accruals which were recorded in interest expense in our consolidated statements of comprehensive income. Cumulative Basis Adjustments due to Fair Value Hedging The table below presents the hedged item cumulative basis adjustments due to qualifying fair value hedging and the related hedged item carrying amounts by their respective balance sheet line item . As of December 31, 2017 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount (In millions) Total Discontinued - Hedge Related Mortgage loans held-for-investment $128,140 $198 $198 Debt ($92,277 ) $79 ($14 ) As of December 31, 2016 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount (In millions) Total Discontinued - Hedge Related Mortgage loans held-for-investment $— $— $— Debt ($8,546 ) ($15 ) ($15 ) |
Collateral and Offsetting of As
Collateral and Offsetting of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
COLLATERAL AND OFFSETTING OF ASSETS AND LIABILITIES | Collateralized Agreements and Offsetting Arrangements Derivative Portfolio Derivative Counterparties Our use of cleared derivatives, exchange-traded derivatives and OTC derivatives exposes us to counterparty credit risk. We are required to post margin in connection with our derivatives transactions. This requirement exposes us to counterparty credit risk in the event that our counterparties fail to meet their obligations. However, the use of cleared and exchange-traded derivatives decreases our credit risk exposure to individual counterparties because a central counterparty is substituted for individual counterparties. OTC derivatives expose us to the credit risk of 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 and option-based derivatives 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. Over-the-Counter Derivatives We use master netting and collateral agreements to reduce our credit risk exposure to our OTC derivative counterparties for interest-rate swap and option-based derivatives. Master netting agreements provide for the netting of amounts receivable and payable from an individual counterparty, as well as posting of collateral in the form of cash, Treasury securities or agency mortgage-related or debt securities, or a combination of both by either the counterparty or us, depending on which party is in a liability position. Although it is our practice not to repledge assets held as collateral, these agreements may allow us or our counterparties to repledge all or a portion of the collateral. We have master netting agreements in place with all of our OTC derivative counterparties. 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 the market value of derivatives in a net gain position by counterparty after giving consideration to collateral 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 sell the collateral. As a result, our use of master netting and collateral agreements reduces our exposure to our counterparties in the event of default. In the event that all of our counterparties for OTC interest-rate swaps and option-based derivatives were to have defaulted simultaneously on December 31, 2017 , our maximum loss for accounting purposes after applying netting agreements and collateral on an individual counterparty basis would have been approximately $41 million . A significant majority of our net uncollateralized exposure to OTC derivative counterparties is concentrated among four counterparties, all of which were investment grade as of December 31, 2017 . We regularly review the market value of securities pledged as collateral and derivative counterparty collateral posting thresholds, where applicable, in an effort to manage our exposure to losses. Regulations adopted by certain financial institution regulators (including FHFA) that became effective March 1, 2017 require posting of variation margin without the application of any thresholds for OTC derivative transactions executed after that date. As a result, our and the counterparties' credit ratings are no longer used in determining the amount of collateral to be posted in connection with these transactions . However, for OTC derivative transactions executed before March 1, 2017 the amount of collateral we pledge to counterparties related to our derivative instruments is determined after giving consideration to our credit rating. The aggregate fair value of our OTC derivative instruments containing credit-risk related contingent features, netted by counterparty, that were in a liability position on December 31, 2017 was $0.8 billion for which we posted cash and non-cash collateral of $0.7 billion in the normal course of business. A reduction in our credit ratings may trigger additional collateral requirements related to these OTC derivative instruments. If a reduction in our credit ratings had triggered additional collateral requirements related to these OTC derivative instruments on December 31, 2017 , we would have been required to post an additional $99 million of collateral to our counterparties. Cleared and Exchange-Traded Derivatives The majority of our interest-rate swaps are subject to the central clearing requirement. Changes in the value of open exchange-traded contracts and cleared derivatives are settled or collateralized daily via payments made through the clearinghouse. 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. A reduction in our credit ratings could cause the clearinghouses or clearing members we use for our cleared and exchange-traded derivatives to demand additional collateral. In October 2017, the CFTC issued an interpretation letter clarifying that variation margin payments for cleared swaps constitute daily settlement of exposure and not the posting of margin collateral. For certain of our cleared swaps transacted with the Chicago Mercantile Exchange (CME), during 1Q 2017 we changed the characterization of variation margin payments from posting of margin collateral to settlements, as a result of certain rule amendments made by the CME. Consistent with the CFTC interpretation letter, the LCH Group updated its rulebook during 1Q 2018 to change the characterization of variation margin payments on cleared swaps to constitute settlements. However, we do not expect this change to materially affect our financial condition or result of operations. Other Derivatives We also execute forward purchase and sale commitments of loans and mortgage-related securities, including dollar roll transactions, that are treated as derivatives for accounting purposes. The total exposure on our forward purchase and sale commitments was $44 million and $289 million at December 31, 2017 and 2016 , respectively. Many of our transactions involving forward purchase and sale commitments of mortgage-related securities 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 counterparty credit risk of the organization (including its clearing members). In the event a clearing member fails and causes losses to the MBSD/FICC clearing system, we could be subject to the loss of any or the entire margin that we have posted to the MBSD/FICC. Moreover, our exposure could exceed that amount, as members are generally required to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the MBSD/FICC may execute in the future. Securities Purchased Under Agreements to Resell As an investor, we enter into arrangements to purchase securities under agreements to subsequently resell the identical or substantially the same securities to our counterparty. Our counterparties to these transactions are required to pledge the purchased securities as collateral for their obligation to repurchase those securities at a later date. While such transactions involve the legal transfer of securities, they are accounted for as secured financings because the transferor does not relinquish effective control over the securities transferred. Although it is our practice not to repledge assets held as collateral, these agreements may allow us to repledge all or a portion of the collateral. 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 in an effort to manage our exposure to losses. Beginning in 2017, we began to utilize the GSD/FICC as a clearinghouse to transact many of our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. As a clearing member of GSD/FICC, we are required to post initial and variation margin payments and are exposed to the counterparty credit risk of GSD/FICC (including its clearing members). Although our membership provides us with the right to offset certain of our open receivable and payable positions by collateral type, we have elected not to offset these positions within our condensed consolidated balance sheets. In the event a clearing member fails and causes losses to the GSD/FICC clearing system, we could be subject to the loss of any or the entire margin that we have posted to the GSD/FICC. Moreover, our exposure could exceed that amount, as members are generally require to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the GSD/FICC may execute in the future. Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are effectively collateralized borrowings where we sell securities with an agreement to repurchase such securities at a future date. We are required to pledge the sold securities to the counterparties to these transactions as collateral for our obligation to repurchase these securities at a later date. Similar to the securities purchased under agreements to resell transactions, these transactions involve the legal transfer of securities. However, they are accounted for as secured financings because they require the identical or substantially the same securities to be subsequently repurchased. These agreements may allow our counterparties to repledge all or a portion of the collateral. Beginning in 2017, certain of our trades involving securities sold under agreements to repurchase utilized GSD/FICC as a clearinghouse. Offsetting of Financial Assets and Liabilities When we receive cash collateral, we recognize the amount received along with a corresponding obligation to return the collateral. When we post cash collateral, we derecognize the amount posted along with a corresponding asset for our right to receive the return of the collateral. We generally do not recognize or derecognize collateral received or pledged in the form of securities as the transferor in such arrangements does not relinquish effective control over the securities transferred. See Note 9 for additional information on our consolidated balance sheets presentation of collateral related to derivatives transactions. At December 31, 2017 and 2016 , all amounts of cash collateral related to derivatives with master netting and collateral agreements were offset against derivative assets, net or derivative liabilities, net, as applicable. The table below displays offsetting and collateral information related to derivatives, securities purchased under agreements to resell and securities sold under agreements to repurchase. Securities sold under agreements to repurchase are included in debt, net on our consolidated balance sheets. As of December 31, 2017 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $7,648 ($5,499 ) ($1,903 ) $246 ($205 ) $41 Cleared and exchange-traded derivatives 2,545 (2,266 ) (202 ) 77 — 77 Other 52 — — 52 — 52 Total derivatives 10,245 (7,765 ) (2,105 ) 375 (205 ) 170 Securities purchased under agreements to resell (3) 55,903 — — 55,903 (55,903 ) — Total $66,148 ($7,765 ) ($2,105 ) $56,278 ($56,108 ) $170 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($6,285 ) $5,499 $688 ($98 ) $— ($98 ) Cleared and exchange-traded derivatives (2,671 ) 2,266 363 (42 ) — (42 ) Other (129 ) — — (129 ) — (129 ) Total derivatives (9,085 ) 7,765 1,051 (269 ) — (269 ) Securities sold under agreements to repurchase (9,681 ) — — (9,681 ) 9,681 — Total ($18,766 ) $7,765 $1,051 ($9,950 ) $9,681 ($269 ) As of December 31, 2016 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $8,531 ($6,367 ) ($1,760 ) $404 ($353 ) $51 Cleared and exchange-traded derivatives 4,889 (4,674 ) (162 ) 53 — 53 Other 290 — — 290 — 290 Total derivatives 13,710 (11,041 ) (1,922 ) 747 (353 ) 394 Securities purchased under agreements to resell (3) 51,548 — — 51,548 (51,548 ) — Total $65,258 ($11,041 ) ($1,922 ) $52,295 ($51,901 ) $394 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($7,298 ) $6,367 $469 ($462 ) $274 ($188 ) Cleared and exchange-traded derivatives (6,965 ) 4,705 2,126 (134 ) — (134 ) Other (199 ) — — (199 ) — (199 ) Total derivatives (14,462 ) 11,072 2,595 (795 ) 274 (521 ) Securities sold under agreements to repurchase (3,040 ) — — (3,040 ) 3,040 — Total ($17,502 ) $11,072 $2,595 ($3,835 ) $3,314 ($521 ) (1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset. (2) Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on the consolidated balance sheets. For cleared and exchange-traded derivatives, does not include non-cash collateral posted by us as initial margin with an aggregate fair value of $3.1 billion and $3.4 billion as of December 31, 2017 and 2016 , respectively. (3) At December 31, 2017 and 2016 , we had $3.4 billion and $4.0 billion , respectively, of securities pledged to us for transactions involving securities purchased under agreements to resell that we had the right to repledge. Collateral Pledged Collateral Pledged to Freddie Mac We have cash pledged to us as collateral primarily related to OTC derivative transactions. At December 31, 2017, we had $2.4 billion pledged to us as collateral that was classified as restricted cash on our consolidated balance sheets. Collateral Pledged by Freddie Mac The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge. As of December 31, 2017 (In millions) Derivatives Securities sold under agreements to repurchase Other (2) Total Debt securities of consolidated trusts (1) $375 $— $111 $486 Trading securities 2,766 9,705 362 12,833 Total securities pledged $3,141 $9,705 $473 $13,319 (1) Represents PCs held by us in our Capital Markets segment mortgage investments portfolio which are recorded as a reduction to debt securities of consolidated trusts held by third parties on our consolidated balance sheets. (2) Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses. The table below summarizes the underlying collateral pledged and the remaining contractual maturity of our gross obligations under securities sold under agreements to repurchase. As of December 31, 2017 (In millions) Overnight and continuous 30 days or less After 30 days through 90 days Greater than 90 days Total U.S. Treasury securities $— $9,705 $— $— $9,705 |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | Stockholders’ Equity and Earnings Per Share 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. Year Ended December 31, 2017 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $915 ($480 ) $21 $456 Other comprehensive income before reclassifications (1) 857 — 63 920 Amounts reclassified from accumulated other comprehensive income (1,110 ) 124 (1 ) (987 ) Changes in AOCI by component (253 ) 124 62 (67 ) Ending balance $662 ($356 ) $83 $389 Year Ended December 31, 2016 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $1,740 ($621 ) $34 $1,153 Other comprehensive income before reclassifications (1) (318 ) — (10 ) (328 ) Amounts reclassified from accumulated other comprehensive income (507 ) 141 (3 ) (369 ) Changes in AOCI by component (825 ) 141 (13 ) (697 ) Ending balance $915 ($480 ) $21 $456 Year Ended December 31, 2015 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $2,546 ($803 ) ($13 ) $1,730 Other comprehensive income before reclassifications (1) (123 ) — 48 (75 ) Amounts reclassified from accumulated other comprehensive income (683 ) 182 (1 ) (502 ) Changes in AOCI by component (806 ) 182 47 (577 ) Ending balance $1,740 ($621 ) $34 $1,153 (1) For the years ended December 31, 2017 , 2016 and 2015, net of tax expense of $0.5 billion , ($0.2) billion and $0.1 billion , respectively, for AOCI related to available-for-sale securities. 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. Year Ended December 31, (In millions) 2017 2016 2015 AOCI related to available-for-sale securities Affected line items in the consolidated statements of comprehensive income: Other gains (losses) on investment securities recognized in earnings $1,726 $971 $1,343 Net impairment of available-for-sale securities recognized in earnings (18 ) (191 ) (292 ) Total before tax 1,708 780 1,051 Income tax (expense) or benefit (598 ) (273 ) (368 ) Net of tax 1,110 507 683 AOCI related to cash flow hedge relationships Affected line items in the consolidated statements of comprehensive income: Interest expense (164 ) (192 ) (230 ) Income tax (expense) or benefit 40 51 48 Net of tax (124 ) (141 ) (182 ) AOCI related to defined benefit plans Affected line items in the consolidated statements of comprehensive income: Salaries and employee benefits 2 4 1 Income tax (expense) or benefit (1 ) (1 ) — Net of tax 1 3 1 Total reclassifications in the period net of tax $987 $369 $502 Future Reclassifications from AOCI to Net Income Related to Closed Cash Flow Hedges The total AOCI related to derivatives designated as cash flow hedges was a loss of $0.4 billion and $0.5 billion at December 31, 2017 and 2016, 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, unless it is deemed probable that the forecasted transactions will not occur. Over the next 12 months, we estimate that approximately $111 million , net of taxes, of the $0.4 billion of cash flow hedge losses in AOCI at December 31, 2017 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 16 years. Senior Preferred Stock Pursuant to the Purchase Agreement described in Note 2 , we issued one million shares of senior preferred stock to Treasury on September 8, 2008, in partial consideration of Treasury’s commitment to provide funds to us. 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. The liquidation preference also was increased by $3.0 billion on December 31, 2017 pursuant to the Letter Agreement. 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 , 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. The dividends we have paid to Treasury on the senior preferred stock have been declared by, and paid at the direction of, the Conservator, acting as successor to the rights, titles, powers and privileges of the Board. 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. Total dividends paid in cash during 2017 , 2016 and 2015 at the direction of the Conservator were $10.9 billion , $5.0 billion and $5.5 billion , respectively. See Note 2 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, 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: n 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 n All amounts required to be paid with the net proceeds of any issuance of capital stock for cash (as described below) 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 accrued and unpaid dividends previously added to the liquidation preference and not previously paid down and 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, 2017 . ( In millions , except initial liquidation preference price per share) Shares Authorized Shares Outstanding Total Par Value Initial Liquidation Preference Price per Share Total Liquidation Preference Non-draw Adjustment Dates: September 8, 2008 1.00 1.00 $1.00 $1,000 $1,000 December 31, 2017 — — — N/A 3,000 Draw Dates: November 24, 2008 — — — N/A 13,800 March 31, 2009 — — — N/A 30,800 June 30, 2009 — — — N/A 6,100 June 30, 2010 — — — N/A 10,600 September 30, 2010 — — — N/A 1,800 December 30, 2010 — — — N/A 100 March 31, 2011 — — — N/A 500 September 30, 2011 — — — N/A 1,479 December 30, 2011 — — — N/A 5,992 March 30, 2012 — — — N/A 146 June 29, 2012 — — — N/A 19 Total, senior preferred stock 1.00 1.00 $1.00 $75,336 No cash was received from Treasury under the Purchase Agreement in 2017, because we had positive net worth at December 31, 2016, March 31, 2017, June 30, 2017, and September 30, 2017 and, consequently, FHFA did not request a draw on our behalf. Pursuant to the Letter Agreement, the aggregate liquidation preference of the senior preferred stock increased by $3.0 billion to $75.3 billion on December 31, 2017. Because we had a net worth deficit at December 31, 2017, FHFA, as Conservator, will submit a draw request, on our behalf, to Treasury under the Purchase Agreement. Upon the funding of this draw request, the aggregate liquidation preference of the senior preferred stock will increase to $75.6 billion . Since we had a net worth deficit at December 31, 2017, no dividend will be paid to Treasury in March 2018. Our quarterly senior preferred stock dividend requirement 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 $3.0 billion for 2013; gradually declined to $600 million for 2017; and will be $3.0 billion in 2018 and thereafter (unless we were not to pay a dividend requirement in full in a future period, which would cause the applicable Capital Reserve Amount to thereafter be zero ). See Note 2 for additional information. Common Stock Warrant Pursuant to the Purchase Agreement described in Note 2 , on September 7, 2008, we issued a warrant to purchase common stock to Treasury, in partial consideration of Treasury’s commitment to provide funds to us. 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 notice of exercise, payment of the exercise price of $0.00001 per share and 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 shares associated with the warrant are 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, 2017 , 2016 and 2015 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. Preferred Stock 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. 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. The table below provides a summary of our preferred stock outstanding at their redemption values at December 31, 2017 . ( In millions , except redemption price per share) Issue Date Shares Authorized Shares Outstanding Total Par Value Redemption Price per Share Total Outstanding Balance Redeemable On or After OTCQB Symbol Preferred stock: 1996 Variable-rate (1) April 26, 1996 5.00 5.00 $5.00 $50.00 $250 June 30, 2001 FMCCI 5.81% October 27, 1997 3.00 3.00 3.00 50.00 150 October 27, 1998 (2) 5% March 23, 1998 8.00 8.00 8.00 50.00 400 March 31, 2003 FMCKK 1998 Variable-rate (3) September 23 and 29, 1998 4.40 4.40 4.40 50.00 220 September 30, 2003 FMCCG 5.10% September 23, 1998 8.00 8.00 8.00 50.00 400 September 30, 2003 FMCCH 5.30% October 28, 1998 4.00 4.00 4.00 50.00 200 October 30, 2000 (2) 5.10% March 19, 1999 3.00 3.00 3.00 50.00 150 March 31, 2004 (2) 5.79% July 21, 1999 5.00 5.00 5.00 50.00 250 June 30, 2009 FMCCK 1999 Variable-rate (4) November 5, 1999 5.75 5.75 5.75 50.00 287 December 31, 2004 FMCCL 2001 Variable-rate (5) January 26, 2001 6.50 6.50 6.50 50.00 325 March 31, 2003 FMCCM 2001 Variable-rate (6) March 23, 2001 4.60 4.60 4.60 50.00 230 March 31, 2003 FMCCN 5.81% March 23, 2001 3.45 3.45 3.45 50.00 173 March 31, 2011 FMCCO 6% May 30, 2001 3.45 3.45 3.45 50.00 173 June 30, 2006 FMCCP 2001 Variable-rate (7) May 30, 2001 4.02 4.02 4.02 50.00 201 June 30, 2003 FMCCJ 5.70% October 30, 2001 6.00 6.00 6.00 50.00 300 December 31, 2006 FMCKP 5.81% January 29, 2002 6.00 6.00 6.00 50.00 300 March 31, 2007 (2) 2006 Variable-rate (8) July 17, 2006 15.00 15.00 15.00 50.00 750 June 30, 2011 FMCCS 6.42% July 17, 2006 5.00 5.00 5.00 50.00 250 June 30, 2011 FMCCT 5.90% October 16, 2006 20.00 20.00 20.00 25.00 500 September 30, 2011 FMCKO 5.57% January 16, 2007 44.00 44.00 44.00 25.00 1,100 December 31, 2011 FMCKM 5.66% April 16, 2007 20.00 20.00 20.00 25.00 500 March 31, 2012 FMCKN 6.02% July 24, 2007 20.00 20.00 20.00 25.00 500 June 30, 2012 FMCKL 6.55% September 28, 2007 20.00 20.00 20.00 25.00 500 September 30, 2017 FMCKI 2007 Fixed-to-floating rate (9) December 4, 2007 240.00 240.00 240.00 25.00 6,000 December 31, 2012 FMCKJ Total, preferred stock 464.17 464.17 $464.17 $14,109 (1) 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%. (2) Issued through private placement. (3) 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%. (4) 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. (5) 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. (6) 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. (7) 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. (8) Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%. (9) 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 and/or ceased making grants under our stock-based compensation 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 2017 and 2016, except for issuances of treasury stock as reported on our consolidated statements of equity 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 2017, the deferral period lapsed on 8,107 RSUs. At December 31, 2017 , 1,403 RSUs remained outstanding. There are no remaining restrictions on outstanding RSUs. In addition, there were 41,160 shares of restricted stock outstanding at both December 31, 2017 and 2016. At December 31, 2017 , no stock options were outstanding. Earnings Per Share Under our prior stock-based compensation plans we issued participating securities related to options and RSUs 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: n Vested options to purchase common stock; and n Vested RSUs 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. These shares are included since the warrant is unconditionally exercisable by the holder at a minimal cost. 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 stock equivalent shares outstanding: n Weighted average shares related to stock options if the average market price during the period exceeds the exercise price; and n The weighted-average of RSUs. 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. For purposes of the earnings-per-share calculation, antidilutive potential common shares excluded from the computation of dilutive potential common shares were 0 , 22,684 and 146,474 at December 31, 2017 , 2016, and 2015, respectively. Dividends Declared No common dividends were declared in 2017. During the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017 , we paid dividends of $4.5 billion , $2.2 billion $2.0 billion , and $2.2 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 2017. 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, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense Total income tax expense includes: n Current income tax expense, which represents the amount of federal tax currently payable to or receivable from the Internal Revenue Service, including interest and penalties and amounts accrued for unrecognized tax benefits, if any, and; n Deferred income tax expense, which represents the net change in the deferred tax asset or liability balance during the year, including any change in the valuation allowance. Income tax expense excludes the tax effects related to adjustments recorded to other comprehensive income, such as unrealized gains and losses on available-for-sale securities. The Tax Cuts and Jobs Act enacted in December 2017 reduced the statutory corporate income tax rate from 35% to 21% . Although not effective until January 1, 2018, accounting rules require that we measure our net deferred tax asset using the reduced rate in the period in which the legislation was enacted. Therefore, we reduced our net deferred tax asset by $5.4 billion , with a corresponding charge to deferred income tax expense. The table below presents the components of our federal income tax expense for 2017, 2016 and 2015. We are exempt from state and local income taxes. Year Ended December 31, (In millions) 2017 2016 2015 Current income tax expense ($3,436 ) ($1,037 ) ($1,243 ) Deferred income tax expense (7,773 ) (2,787 ) (1,655 ) Total income tax expense ($11,209 ) ($3,824 ) ($2,898 ) The increase in income tax expense from 2016 to 2017 is primarily due to the reduction of our net deferred tax asset as a result of the enactment of the Tax Cuts and Jobs Act. The increase in income tax expense from 2015 to 2016 is primarily due to an increase in pre-tax income. The table below presents the reconciliation between our federal statutory income tax rate and our effective tax rate for 2017 , 2016 and 2015 . Year Ended December 31, 2017 2016 2015 (Dollars in millions) Amount Percent Amount Percent Amount Percent Statutory corporate tax rate ($5,892 ) 35.0 % ($4,074 ) 35.0 % ($3,246 ) 35.0 % Tax-exempt interest 39 (0.2 )% 36 (0.3 )% 52 (0.6 )% Tax credits 135 (0.8 )% 243 (2.1 )% 346 (3.7 )% Valuation allowance (54 ) 0.3 % — — — — Revaluation of deferred tax asset to enacted rate (5,405 ) 32.1 % — — — — Other (32 ) 0.2 % (29 ) 0.3 % (50 ) 0.5 % Effective tax rate ($11,209 ) 66.6 % ($3,824 ) 32.9 % ($2,898 ) 31.2 % Deferred Tax Assets, Net 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, if any. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. The realization of our net deferred tax assets is dependent upon the generation of sufficient taxable income. The table below presents the balance of significant deferred tax assets and liabilities at December 31, 2017 and 2016. The valuation allowance relates to capital loss carryforwards included in Other Items, net that we expect to expire unused. Year Ended December 31, (In millions) 2017 2016 Deferred tax assets: Deferred fees $4,679 $6,662 Basis differences related to derivative instruments 2,041 4,006 Credit related items and allowance for loan losses 291 1,045 Basis differences related to assets held for investment 1,288 2,310 LIHTC partnerships and AMT credit carryforward — 2,156 Other items, net 55 131 Total deferred tax assets 8,354 16,310 Deferred tax liabilities: Unrealized gains related to available-for-sale securities (214 ) (492 ) Total deferred tax liabilities (214 ) (492 ) Valuation Allowance (33 ) — Deferred tax assets, net $8,107 $15,818 Valuation Allowance A valuation allowance is recorded to reduce the net deferred tax asset when it is more likely than not that all or part of our tax benefits will not be realized. On a quarterly basis, we determine whether a valuation allowance is necessary. 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 net deferred tax asset will be realized. We are not permitted to consider in our analysis the impacts proposed legislation may have on our business because the timing and certainty of those actions are unknown and beyond our control. Based on all positive and negative evidence available at December 31, 2017, we determined that it is more likely than not that our net deferred tax assets, except for a portion of the deferred tax asset related to our capital loss carryforwards, will be realized. Unrecognized Tax Benefits and IRS Examinations We recognize a tax position taken or expected to be taken (and any associated interest and penalties) if 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. We evaluated all income tax positions and determined that there were no uncertain tax positions that required reserves as of December 31, 2017 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Segment Reporting We have three reportable segments, which are based on the type of business activities each performs - Single-family Guarantee, Multifamily and Capital Markets. The chart below provides a summary of our three reportable segments and the All Other category. Segment/Category Description Activities/Items Financial Performance Measurement Basis Single-family Guarantee The Single-family Guarantee segment reflects results from our purchase, securitization and guarantee of single-family loans and the management of single-family mortgage credit risk. In most instances, we securitize the loans and guarantee the payment of principal and interest on the mortgage-related securities in exchange for guarantee fees. Segment Earnings for this segment consist primarily of guarantee fee income, less credit-related expenses, credit risk transfer expenses, administrative expenses, allocated funding costs and amounts related to net float income or expenses. • Purchase and guarantee of single-family mortgage loans • Contribution to GAAP net income (loss) • Credit risk transfer transactions • Loss mitigation activities • Managing foreclosure and REO activities • Tax expense/benefit • Allocated debt costs and administrative expenses Segment/Category Description Activities/Items Financial Performance Measurement Basis Multifamily The Multifamily segment reflects results from our purchase, sale, securitization and guarantee of multifamily loans and securities, our investments in those loans and securities and the management of multifamily mortgage credit risk and market spread risk. Our primary business model is to purchase multifamily loans for aggregation and then securitization through issuance of multifamily K Certificates and SB Certificates. We also issue and guarantee other securitization products, issue other credit risk transfer products and provide other mortgage-related guarantees. Segment Earnings for this segment consist primarily of returns on assets related to multifamily investment activities and guarantee fee income, less credit-related expenses, administrative expenses and allocated funding costs. • Multifamily loans held-for-sale and associated securitization activities (i.e., K Certificates and SB Certificates) • Contribution to GAAP comprehensive income (loss) • Investments in CMBS and multifamily loans held-for-investment • Other mortgage-related guarantees • Other securitization products • Other credit risk transfer products • Tax expense/benefit • Allocated debt costs and administrative expenses Capital Markets The Capital Markets segment reflects results from managing the company’s mortgage-related investments portfolio (excluding Multifamily segment investments, single-family seriously delinquent loans and the credit risk of single-family performing and reperforming loans), treasury function, single-family securitization activities and interest-rate risk. Segment Earnings for this segment consist primarily of the returns on these investments, less the related funding, hedging and administrative expenses. • Investments in single-family mortgage-related securities and single-family performing loans and reperforming loans • Contribution to GAAP comprehensive income (loss) • All other traded non-mortgage related instruments and securities • Debt issuances • Interest-rate risk management • Guarantee buy-ups, net of execution gains/losses • Cash and liquidity management • Settlements, including legal settlements, relating to non-agency mortgage-related securities • Tax expense/benefit • Allocated administrative expenses All Other The All Other category consists of material corporate-level activities that are infrequent in nature and based on decisions outside the control of the management of our reportable segments. • Tax settlements, as applicable N/A • Legal settlements, as applicable • Tax expense/benefit associated with changes in the deferred tax asset valuation allowance or revaluation associated with a statutory tax rate change • FHFA-mandated termination of our pension plan Segment Earnings We present Segment Earnings by reclassifying certain credit guarantee-related activities and investment-related activities between various line items on our GAAP consolidated statements of comprehensive income and allocating certain revenues and expenses, including funding costs and administrative expenses, to our three reportable segments. We do not consider our assets by segment when evaluating segment performance or allocating resources. We operate our business in the United States and its territories, and accordingly, we generate no revenue from and have no long-lived assets, other than financial instruments, in geographic locations other than the United States and its territories. 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 for information about the conservatorship. During 1Q 2017, we changed how we calculate certain components of our Segment Earnings for our Capital Markets segment. The purpose of this change is to more closely align Segment Earnings results relative to GAAP results and to better reflect how management evaluates the Capital Markets segment. Prior period results have been revised to conform to the current period presentation. The change includes: n No longer reclassifying the amortization of upfront cash associated with the acquisition or issuance of swaptions and options from derivative gains (losses) to net interest income. This change resulted in an increase to net interest income and a corresponding decrease to derivative gains (losses) for the Capital Markets segment of $1.3 billion and $763 million for 2016 and 2015, respectively. During 4Q 2017, we changed our GAAP accounting for qualifying hedges due to the adoption of amended hedge accounting guidance. As a result, we modified our investment activity-related reclassifications beginning in 4Q 2017 in order to continue to reflect Segment Earnings for our Capital Markets segment consistently with prior periods. No prior period results required updates. 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 differ significantly from those applied in preparing the comparable line items in our consolidated financial statements prepared in accordance with GAAP in order to reflect the business activities each segment performs. The significant reclassifications are discussed below. Many of the reclassifications 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 VIEs. Due to the adoption of this guidance, the results of our operating segments from a GAAP perspective do not reflect how the Segments are managed. Credit Activity-Related Reclassifications Certain credit activity-related income and costs are included in Segment Earnings guarantee fee income or provision for credit losses. n Net guarantee fees are reclassified in Segment Earnings from net interest income to guarantee fee income. n Implied guarantee fee income related to unsecuritized loans held in the mortgage investments portfolio is reclassified in Segment Earnings from net interest income to guarantee fee income. n A portion of the amount reversed for accrued but uncollected interest upon placing loans on non-accrual status is reclassified in Segment Earnings from net interest income to provision for credit losses. n The revenue and expense related to the 10 basis point increase which was legislated in the Temporary Payroll Tax Cut Continuation Act of 2011 are netted within guarantee fee income. Investment Activity-Related 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 other investments and cash 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. n The accrual of periodic cash settlements of derivatives recorded within derivative gains (losses) is reclassified in Segment Earnings from derivatives gains (losses) into net interest income to fully reflect the periodic cost associated with the protection provided by these contracts. Beginning in 4Q 2017, the accrual of periodic cash settlements of derivatives in qualifying hedge relationships is recorded directly to net interest income due to the adoption of amended hedge accounting guidance. As a result, only the accrual of periodic cash settlements of derivatives while not in qualifying hedge relationships is reclassified for Segment Earnings. n For Segment Earnings, changes in the fair value of the hedging instrument and changes in the fair value of the hedged item attributable to the risk being hedged are recorded in other income. Beginning in 4Q 2017, for qualifying hedge relationships, changes in the fair value of the derivative hedging instrument and changes in fair value of the hedged item attributable to the risk being hedged are reclassified in Segment Earnings from net interest income to other income. For periods prior to the adoption of amended hedge accounting guidance in 4Q 2017, these amounts were recorded directly to other income. As a result, no reclassification for Segment Earnings was necessary. 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 the following items in Segment Earnings from net interest income to non-interest income: n Amortization related to derivative commitment basis adjustments associated with mortgage-related and non-mortgage-related securities. n Amortization related to accretion of other-than-temporary impairments on available-for-sale securities. n Amortization related to premiums and discounts, including non-cash premiums and discounts, on single-family loans in trusts and on the associated consolidated PCs. n Amortization of discounts on loans purchased with deteriorated credit quality that are on accrual status. n Amortization related to premiums and discounts associated with PCs issued by our consolidated trusts that we previously held and subsequently transferred to third parties. Certain debt-related costs are not relevant to how we measure the effective yield earned on the securities held in our investments portfolio. Therefore, as described below, we reclassify the following items in Segment Earnings: n Costs associated with STACR debt note expenses are reclassified from net interest income to other non-interest expense. n Internally allocated costs associated with the refinancing of debt related to Multifamily segment held-for-investment loans which we securitized are reclassified from net interest income to other non-interest income. Mortgage Loan Classification-Related Reclassifications The GAAP impacts of our reclassification of mortgage loans from held-for-investment to held-for-sale affect various financial statement line items. In order to better reflect how we manage our Single-family Guarantee segment, we reclassify the impacts of these mortgage loan reclassifications from benefit (provision) for credit losses and other non-interest expense into other non-interest income (loss). 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. Net interest income for each segment includes allocated debt funding and hedging costs related to certain assets of each segment. Funding and interest rate risk is consolidated and primarily managed by the Capital Markets segment for all other business segments. In connection with this activity, the Capital Markets segment transfers a cost to the other segments. The actual costs may vary relative to these intra-company transfers. In addition, the financial statement variability associated with the use of derivatives to hedge certain assets outside the Capital Markets segment is not fully allocated to other segments. These allocations do not include the effects of dividends paid on our senior preferred stock. The table below presents Segment Earnings by segment. Year Ended December 31, (In millions) 2017 2016 2015 Segment Earnings (loss), net of taxes: Single-family Guarantee $2,501 $2,170 $1,778 Multifamily 2,014 1,818 827 Capital Markets 6,515 3,827 3,771 All Other (5,405 ) — — Total Segment Earnings, net of taxes 5,625 7,815 6,376 Net income $5,625 $7,815 $6,376 Comprehensive income (loss) of segments: Single-family Guarantee $2,541 $2,161 $1,790 Multifamily 1,937 1,582 566 Capital Markets 6,485 3,375 3,415 All Other (5,405 ) — 28 Comprehensive income of segments 5,558 7,118 5,799 Comprehensive income $5,558 $7,118 $5,799 The table below presents detailed reconciliations between our GAAP financial statements and Segment Earnings for our reportable segments and All Other. Year Ended December 31, 2017 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,206 $3,381 $— $4,587 $9,577 $14,164 Guarantee fee income (1) 6,094 676 — — 6,770 (6,108 ) 662 Benefit (Provision) for credit losses (816 ) (13 ) — — (829 ) 913 84 Net impairment of available-for-sale securities recognized in earnings — (5 ) 236 — 231 (249 ) (18 ) Derivative gains (losses) (37 ) 181 (587 ) — (443 ) (1,545 ) (1,988 ) Gains (losses) on trading securities — (102 ) (570 ) — (672 ) — (672 ) Gains (losses) on loans — (2 ) — — (2 ) 930 928 Other non-interest income 1,542 1,594 7,895 — 11,031 (3,074 ) 7,957 Administrative expense (1,381 ) (395 ) (330 ) — (2,106 ) — (2,106 ) REO operations (expense) income (203 ) — — — (203 ) 14 (189 ) Other non-interest (expense) income (1,382 ) (66 ) (82 ) — (1,530 ) (458 ) (1,988 ) Income tax expense (1,316 ) (1,060 ) (3,428 ) (5,405 ) (11,209 ) — (11,209 ) Net income (loss) 2,501 2,014 6,515 (5,405 ) 5,625 — 5,625 Changes in unrealized gains (losses) related to available-for-sale securities — (86 ) (167 ) — (253 ) — (253 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 124 — 124 — 124 Changes in defined benefit plans 40 9 13 — 62 — 62 Total other comprehensive income (loss), net of taxes 40 (77 ) (30 ) — (67 ) — (67 ) Comprehensive income (loss) $2,541 $1,937 $6,485 ($5,405 ) $5,558 $— $5,558 Referenced footnote is included after the next table. Year Ended December 31, 2016 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,022 $3,812 $— $4,834 $9,545 $14,379 Guarantee fee income (1) 6,091 511 — — 6,602 (6,089 ) 513 Benefit (Provision) for credit losses (517 ) 22 — — (495 ) 1,298 803 Net impairment of available-for-sale securities recognized in earnings — — 269 — 269 (460 ) (191 ) Derivative gains (losses) (69 ) 407 1,151 — 1,489 (1,763 ) (274 ) Gains (losses) on trading securities — 28 (1,077 ) — (1,049 ) — (1,049 ) Gains (losses) on loans — 309 — — 309 (772 ) (463 ) Other non-interest income 516 829 1,846 — 3,191 (1,227 ) 1,964 Administrative expense (1,323 ) (362 ) (320 ) — (2,005 ) — (2,005 ) REO operations (expense) income (298 ) — — — (298 ) 11 (287 ) Other non-interest (expense) income (1,169 ) (58 ) 19 — (1,208 ) (543 ) (1,751 ) Income tax expense (1,061 ) (890 ) (1,873 ) — (3,824 ) — (3,824 ) Net income (loss) 2,170 1,818 3,827 — 7,815 — 7,815 Changes in unrealized gains (losses) related to available-for-sale securities — (234 ) (591 ) — (825 ) — (825 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 141 — 141 — 141 Changes in defined benefit plans (9 ) (2 ) (2 ) — (13 ) — (13 ) Total other comprehensive income (loss), net of taxes (9 ) (236 ) (452 ) — (697 ) — (697 ) Comprehensive income (loss) $2,161 $1,582 $3,375 $— $7,118 $— $7,118 Referenced footnote is included after the next table. Year Ended December 31, 2015 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,049 $4,665 $— $5,714 $9,232 $14,946 Guarantee fee income (1) 5,152 339 — — 5,491 (5,122 ) 369 Benefit (Provision) for credit losses (283 ) 26 — — (257 ) 2,922 2,665 Net impairment of available-for-sale securities recognized in earnings — (22 ) 420 — 398 (690 ) (292 ) Derivative gains (losses) (37 ) 372 (833 ) — (498 ) (2,198 ) (2,696 ) Gains (losses) on trading securities — (98 ) (737 ) — (835 ) — (835 ) Gains (losses) on loans — (93 ) — — (93 ) (2,001 ) (2,094 ) Other non-interest income 173 15 2,292 — 2,480 (531 ) 1,949 Administrative expense (1,285 ) (325 ) (317 ) — (1,927 ) — (1,927 ) REO operations (expense) income (341 ) (4 ) — — (345 ) 7 (338 ) Other non-interest (expense) income (794 ) (56 ) (4 ) — (854 ) (1,619 ) (2,473 ) Income tax expense (807 ) (376 ) (1,715 ) — (2,898 ) — (2,898 ) Net income (loss) 1,778 827 3,771 — 6,376 — 6,376 Changes in unrealized gains (losses) related to available-for-sale securities — (264 ) (542 ) — (806 ) — (806 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 182 — 182 — 182 Changes in defined benefit plans 12 3 4 28 47 — 47 Total other comprehensive income (loss), net of taxes 12 (261 ) (356 ) 28 (577 ) — (577 ) Comprehensive income (loss) $1,790 $566 $3,415 $28 $5,799 $— $5,799 (1) Guarantee fee income is included in other income (loss) on our GAAP consolidated statements of comprehensive income. |
Concentration of Credit and Oth
Concentration of Credit and Other Risks | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT AND OTHER RISKS | Concentration of Credit and Other Risks Concentrations of credit risk may arise when we do business with a number of customers or counterparties that engage in similar activities or have similar economic characteristics that make them vulnerable in similar ways to changes in industry conditions, which could affect their ability to meet their contractual obligations. Concentrations of credit risk may also arise when there are a limited number of counterparties in a certain industry. Based on our assessment of business conditions that could affect our financial results, we have determined that concentrations of credit risk exist among certain borrowers (including geographic concentrations and loans with certain higher risk characteristics), loan sellers and servicers, mortgage insurers, bond insurers, cash, derivative and other investment counterparties and non-agency mortgage-related security issuers. In the sections below, we discuss our concentration of credit risk for each of the groups to which we are exposed. For a discussion of our derivative counterparties as well as related master netting and collateral agreements, see Note 10 . Single-Family Credit Guarantee Portfolio Regional economic conditions may affect a borrower’s ability to repay his or her loan and the property value underlying the loan. Geographic concentrations increase the exposure of our portfolio to changes in credit risk. Single-family borrowers are primarily affected by home prices, unemployment rates and interest rates. The table below summarizes the concentration by loan portfolio and geographic area of approximately $1.8 trillion UPB of our single-family credit guarantee portfolio at both December 31, 2017 and 2016 , respectively. See Note 4 and Note 7 for more information about credit risk associated with loans and mortgage-related securities that we hold or guarantee. December 31, 2017 December 31, 2016 Percent of Credit Losses Percentage of Portfolio Serious Delinquency Rate Percentage of Portfolio Serious Delinquency Rate 2017 2016 Core single-family loan portfolio 78 % 0.35 % 73 % 0.20 % 3 % 6 % Legacy and relief refinance single-family loan portfolio 22 2.59 % 27 2.28 % 97 94 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % Region (1) West 30 % 0.47 % 30 % 0.57 % 27 % 11 % Northeast 25 1.24 % 25 1.45 % 34 41 North Central 16 0.81 % 16 0.93 % 15 24 Southeast 16 1.95 % 16 1.19 % 20 19 Southwest 13 0.98 % 13 0.78 % 4 5 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % State (2)(3) California 18 % 0.41 % 18 % 0.46 % 18 % 5 % Florida 6 3.33 % 6 1.42 % 13 9 Illinois 5 1.13 % 5 1.34 % 9 10 New Jersey 3 1.78 % 3 2.26 % 9 12 New York 5 1.74 % 5 2.05 % 9 9 All other 63 0.91 % 63 0.90 % 42 55 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % (1) 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). (2) States presented based on those with the highest percentage of credit losses during the year ended December 31, 2017 . (3) On January 1, 2017, we elected a new accounting policy for reclassifications of loans from held-for-investment to held-for-sale. The charge-offs taken under the new policy affected some states more than others. See Note 4 for further information about this change. The REO balance, net at December 31, 2017 and 2016 associated with single-family properties was $0.9 billion and $1.2 billion , respectively, and the balance associated with multifamily properties was $6 million and $0 million , respectively. Our single-family REO inventory consisted of 8,299 properties and 11,418 properties at December 31, 2017 and 2016 , respectively. In recent years, the foreclosure process has been slowed in many geographic 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. Credit Performance of Certain Higher-Risk Single-Family Loan Categories Participants in the mortgage market have characterized single-family loans based upon their overall credit quality at the time of origination, including as prime or subprime. Mortgage market participants have classified single-family loans as Alt-A if these loans have credit characteristics that range between their prime and subprime categories, if they are underwritten with lower or alternative income or asset documentation requirements compared to a full documentation loan, or both. Although we discontinued new purchases of loans with lower documentation standards beginning March 1, 2009, we have continued to purchase certain amounts of these loans in cases where the loan was either: n Purchased pursuant to a previously issued other mortgage-related guarantee; n Part of our relief refinance initiative; or n In another refinance loan initiative and the pre-existing loan (including Alt-A loans) was originated under less than full documentation standards. In the event we purchase a refinance loan 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 loans we purchase or guarantee as prime or subprime, we recognize that there are a number of 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 based on UPB. 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. Percentage of Portfolio (1) Serious Delinquency Rate (1) As of December 31, As of December 31, December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest-only 1 % 1 % 4.97 % 4.34 % Alt-A 1 % 2 % 5.62 % 5.21 % Original LTV ratio greater than 90% (2) 17 % 16 % 1.70 % 1.58 % Lower credit scores at origination (less than 620) 2 % 2 % 6.34 % 5.73 % (1) Excludes loans underlying certain other securitization products for which data was not available. (2) Includes HARP loans, which we purchase as part of our participation in the MHA Program. 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 for further information on these categories and other concentrations in our investments in securities. Multifamily Mortgage Portfolio Numerous factors affect a multifamily borrower’s ability to repay the loan and the value of the property underlying the loan. The most significant factors affecting credit risk are rental rates and capitalization rates for the mortgaged property. Rental rates vary among geographic regions of the United States. The average UPB for multifamily loans is significantly larger than for single-family loans and, therefore, individual defaults for multifamily borrowers can result in more significant losses. The table below summarizes the concentration of multifamily loans in our multifamily mortgage portfolio classified by legal structure, based on UPB. As of December 31, 2017 As of December 31, 2016 (Dollars in billions) UPB Delinquency Rate (1) UPB Delinquency Rate (1) Unsecuritized loans $38.2 0.01 % $42.4 0.04 % Securitization-related products 192.5 0.02 % 147.6 0.03 % Other mortgage-related guarantees 10.0 — % 9.7 — % Total $240.7 0.02 % $199.7 0.03 % (1) Based on loans two monthly payments or more delinquent or in foreclosure. In the multifamily mortgage portfolio, the primary concentration of credit risk is based on the legal structure of the investments we hold. Our exposure to credit risk in K Certificates and SB Certificates is minimal, as the expected credit risk is absorbed by the subordinate tranches, which are generally sold to private investors. As a result, our multifamily mortgage credit risk is primarily related to loans that have not been securitized. Sellers and Servicers We acquire a significant portion of our single-family and multifamily loan purchase volume from several large sellers. The table below summarizes the concentration of single-family and multifamily sellers who provided 10% or more of our purchase volume. Single-family Sellers 2017 2016 Wells Fargo Bank, N.A. 15 % 15 % Other top 10 sellers 38 34 Top 10 single-family sellers 53 % 49 % Multifamily Sellers 2017 2016 CBRE Capital Markets, Inc. 18 % 19 % Berkadia Commercial Mortgage LLC 11 17 Walker & Dunlop, LLC 10 10 Other top 10 sellers 39 33 Top 10 multifamily sellers 78 % 79 % In recent years, there has been a shift in our single-family purchase volume from depository institutions to non-depository and smaller depository financial institutions. Some of these non-depository sellers have grown rapidly in recent years, and we purchase a significant share of our loans from them. Our top five non-depository sellers provided approximately 20% and 17% of our single-family purchase volume during 2017 and 2016, respectively. We are exposed to counterparty credit risk arising from the potential insolvency or non-performance by our sellers and servicers of their obligations to repurchase loans or (at our option) indemnify us in the event of breaches of the representations and warranties they made when they sold the loans to us or failure to comply with our servicing requirements. Our contracts require that a seller/servicer repurchase a loan 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, 2017 and 2016 , the UPB of loans subject to our repurchase requests issued to our single-family sellers and servicers was approximately $0.2 billion and $0.3 billion , respectively (these figures include repurchase requests for which appeals were pending). During 2017 and 2016 , we recovered amounts that covered losses with respect to $0.3 billion and $0.6 billion , respectively, in UPB of loans subject to our repurchase requests. At the direction of FHFA, we and Fannie Mae revised our representation and warranty framework for conventional loans purchased by the GSEs on or after January 1, 2013. The objective of the revised framework is to clarify lenders’ repurchase exposures and liability on future sales of loans to Freddie Mac and Fannie Mae. This framework does not affect seller/servicers’ obligations under their contracts with us with respect to loans sold to us prior to January 1, 2013. This framework also does not affect their obligation to service these loans in accordance with our servicing standards. Under this framework, sellers are 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 loans) of consecutive, on-time payments after we purchase them. In May 2014, we announced changes to our representation and warranty framework for loans acquired on and after July 1, 2014. These changes relieve sellers of additional representations and warranties for these loans and provide relief for loans we have fully reviewed in our quality control process and determined to be acceptable. As of December 31, 2017 , approximately 69% in UPB of loans in our single-family credit guarantee portfolio were purchased since January 1, 2013 and are subject to our revised representation and warranty framework. At the direction of FHFA, we implemented a new remedies framework for the categorization of loan origination defects for loans with settlement dates on or after January 1, 2016. Among other items, the framework provides that "significant defects" will result in a repurchase request or a repurchase alternative, such as recourse or indemnification. We may require the seller to pay us additional fees or provide us with additional data on the loan. 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 4 for further information. We are also exposed to the risk that servicers might fail to service loans in accordance with our contractual requirements, resulting in increased credit losses. For example, our servicers have an active role in our loss mitigation efforts and we therefore 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 controls, experience a failure in their controls, or experience an operating disruption in their ability to service loans, our business and financial results could be adversely affected. Significant portions of our single-family and multifamily loans are serviced by several large servicers. The table below summarizes the concentration of single-family and multifamily servicers who serviced 10% or more of our single-family credit guarantee portfolio and our multifamily mortgage portfolio, excluding loans underlying multifamily securitizations where we are not in first loss position, primarily K Certificates and SB Certificates. Single-family Servicers December 31, 2017 (1) December 31, 2016 (1) Wells Fargo Bank, N.A. 18 % 19 % Other top 10 servicers 40 41 Top 10 single-family servicers 58 % 60 % Multifamily Servicers December 31, 2017 December 31, 2016 Wells Fargo Bank, N.A. 16 % 15 % CBRE Capital Markets, Inc. 12 14 Berkadia Commercial Mortgage LLC 11 11 Other top 10 servicers 36 39 Top 10 multifamily servicers 75 % 79 % (1) Percentage of servicing volume is based on the total single-family credit guarantee portfolio, excluding loans where we do not exercise control over the associated servicing. In recent years, there has been a shift in our single-family servicing from depository institutions to non-depository servicers. Some of these non-depository servicers have grown rapidly in recent years and now service a large share of our loans. As of December 31, 2017 and 2016 , approximately 15% and 13% of our single-family credit guarantee portfolio, respectively, excluding loans where we do not exercise control over the associated servicing, was serviced by our five largest non-depository servicers, on a combined basis. One of our non-depository servicers also services a large share of the loans underlying our investments in non-agency mortgage-related securities. We routinely monitor the performance of our largest non-depository servicers. 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 counterparty credit risk relating to the potential insolvency of, or non-performance by, mortgage insurers that insure single-family loans we purchase or guarantee. We evaluate the recovery and collectability from mortgage insurers as part of the estimate of our loan loss reserves. See Note 4 for additional information. As of December 31, 2017 , mortgage insurers provided coverage with maximum loss limits of $85.5 billion , for $334.3 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 loan is covered under both primary and pool insurance. The table below summarizes the concentration of mortgage insurer counterparties who provided 10% or more of our overall mortgage insurance coverage. On January 3, 2017, Arch Capital Group Ltd. announced that it had completed its purchase of United Guaranty Corporation at the end of 2016. The table below reflects this transaction. On October 23, 2016, Genworth Financial, Inc. announced that it had entered into an agreement to be acquired by China Oceanwide Holdings Group Co., Ltd. Regulatory approvals of the acquisition are still pending. Genworth Mortgage Insurance Corporation is a subsidiary of Genworth Financial, Inc. Mortgage Insurance Coverage Mortgage Insurer Credit Rating (1) December 31, 2017 December 31, 2016 Arch Mortgage Insurance Company A- 24 % 25 % Radian Guaranty Inc. BBB- 21 21 Mortgage Guaranty Insurance Corporation BBB 19 20 Genworth Mortgage Insurance Corporation BB+ 15 15 Essent Guaranty, Inc. BBB+ 12 10 Total 91 % 91 % (1) Ratings are for the corporate entity to which we have the greatest exposure. Coverage amounts may include coverage provided by affiliates and subsidiaries of the counterparty. Latest rating available as of December 31, 2017. Represents the lower of S&P and Moody’s credit ratings stated in terms of the S&P equivalent. We received proceeds of $0.4 billion and $0.5 billion during 2017 and 2016 , respectively, 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 $0.1 billion (excluding deferred payment obligations associated with unpaid claim amounts) as of both December 31, 2017 and 2016 . The balance of these receivables, net of associated reserves, was approximately $0.1 billion at both December 31, 2017 and 2016 . PMI Mortgage Insurance Co. and Triad Guaranty Insurance Corp. are both under the control of their state regulators and are in run-off. A substantial portion of their claims is recorded by us as deferred payment obligations. These insurers no longer issue new insurance but continue to pay a portion of their respective claims in cash. In 2014, PMI began paying valid claims 67% in cash and 33% in deferred payment obligations and made a one-time cash payment to us for claims that were previously settled for 55% in cash. In 2015, PMI began paying valid claims 70% in cash and 30% in deferred payment obligations and made a one-time cash payment to us for claims that were previously settled for 67% in cash. In 2013, Triad began paying valid claims 75% in cash and 25% in deferred payment obligations and made a one-time cash payment to us for claims that were previously settled for 60% in cash. If, as we currently expect, these insurers do not pay the full amount of their deferred payment obligations in cash, we would lose a portion of the coverage from these insurers. As of both December 31, 2017 and 2016 , we had cumulative unpaid deferred payment obligations of $0.5 billion from these insurers. We reserved for all of these unpaid amounts as collectability is uncertain. It is not clear how the regulators of these companies will administer their respective deferred payment plans in the future, nor when or if those obligations will be paid. RMIC is under regulatory supervision and is no longer issuing new insurance. In 2014, RMIC resumed paying valid claims at 100% of the claim amount. Previously, RMIC had been paying all valid claims 60% in cash and 40% in deferred payment obligations. Bond Insurers Bond insurance is a credit enhancement covering certain of the non-agency mortgage-related securities that we hold or guarantee. Some policies were acquired by the securitization trust that issued the securities we purchased, while others were acquired by us. At December 31, 2017 , the maximum principal exposure to credit losses related to such policies was $3.5 billion . At December 31, 2017 , our top three bond insurers, Ambac Assurance Corporation (Ambac), 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 95% of our coverage. Of our total outstanding bond insurance coverage, approximately 77% relates to non-agency commercial mortgage-backed securities. In 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 ("rehabilitation court") put the segregated account into rehabilitation (i.e., a state insolvency proceeding). Since its entry into rehabilitation and the subsequent approval of an amended rehabilitation plan, Ambac has made one-time and periodic cash payments for certain specified securities and policy claims but has deferred a portion of its payment obligations. On January 22, 2018, the rehabilitation court approved the second amended rehabilitation exit plan. Under this exit plan, Freddie Mac expects to receive a combination of cash and notes issued by Ambac as consideration for a substantial portion of our outstanding insurance claims. We believe that we will likely receive substantially less than full payment of our claims from some of our other bond insurers, because we believe they 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 bond insurance policies as part of our impairment analysis for our investments in securities and the evaluation of our reserve for guarantee losses. The expected benefits from bond insurers, or the inability of bond insurers to perform on their obligations, is captured in the fair value of these securities. See Note 7 for further information on our investments in securities covered by bond insurance. Cash and Other Investment Counterparties We are exposed to counterparty credit risk relating to the potential insolvency of, or the non-performance by, counterparties relating to cash and other investments (including non-mortgage-related securities and cash equivalents) 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 investments counterparties are primarily major financial institutions, including other GSEs, Treasury, the Federal Reserve Bank of New York, GSD/FICC, highly-rated supranational institutions and government money market funds. As of December 31, 2017 and December 31, 2016, $239 million and $0 million of our securities purchased under agreements to resell were used to provide financing to investors in Freddie Mac securities to increase liquidity and expand the investor base for those securities. These transactions differ from the securities purchased under agreements to resell that we use for liquidity purposes as the counterparties we face may not be major financial institutions and we are exposed to the counterparty credit risk of these institutions. As of December 31, 2017 and 2016 , including amounts related to our consolidated VIEs, there were $89.3 billion and $96.2 billion , respectively, primarily of cash and securities purchased under agreements to resell invested with counterparties, U.S.Treasury securities, cash deposited with the Federal Reserve Bank of New York, or cash advanced to lenders. As of December 31, 2017 , all of our securities purchased under agreements to resell were fully collateralized. 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 matters described below. In 2011, FHFA, as Conservator for Freddie Mac and Fannie Mae, filed lawsuits against a number of corporate families of financial institutions and related defendants alleging securities laws violations and, in some cases, fraud. On July 12, 2017, FHFA reached a settlement with the Royal Bank of Scotland Group plc, related companies and specifically named individuals (collectively RBS). The settlement resolves all claims in the lawsuit filed by FHFA against RBS in the U.S. District Court for the District of Connecticut. Under the terms of the agreement, RBS paid Freddie Mac $4.5 billion . We recognized this amount within non-interest income on our consolidated statements of comprehensive income during the third quarter of 2017. The separate lawsuit filed by FHFA against Nomura Holding America, Inc. (Nomura) and RBS in the U.S. District Court for the Southern District of New York went to trial in March 2015. In May 2015, the judge ruled against the defendants and ordered them to pay an aggregate of $806 million , of which $779 million will be paid to Freddie Mac. The order also provides for Freddie Mac to transfer the mortgage-related securities at issue in this trial to the defendants. The defendants have agreed to pay for certain costs, legal fees and expenses if FHFA prevails in the litigation. This expense reimbursement payment is subject to various conditions and is capped at $33 million (half of any such payment would be made to Freddie Mac). On September 28, 2017, the Second Circuit affirmed the District Court's decision in full and, on December 11, 2017, denied the defendants' request for rehearing or a rehearing en banc. We worked with an investor consortium to enforce certain claims with JPMorgan Chase & Co. relating to a number of non-agency mortgage-related securities. A settlement agreement was entered into with respect to these claims. The settlement is subject to certain conditions, which have not yet been satisfied. Our expected benefit from the settlement, which currently totals approximately $29 million , will be recognized in earnings over the expected remaining life of the securities, unless the securities are sold, at which time the benefit would be considered in the sales price of the securities. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 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 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 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 levels of the fair value hierarchy are defined as follows in priority order: n Level 1 - inputs to the valuation techniques are based on quoted prices in active markets for identical assets or liabilities. n Level 2 - inputs to the valuation techniques are based on observable inputs other than quoted prices in active markets for identical assets or liabilities. n Level 3 - one or more inputs to the valuation techniques are unobservable and significant to the fair value measurement. 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. Valuation Risk and Controls Over Fair Value Measurements Valuation risk is the risk that fair values used for financial disclosures, risk metrics and performance measures do not reasonably reflect market conditions and prices. 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 ERM Division. The independent validation procedures performed by the ERM Division 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 daily price review and a monthly independent verification of fair value measurements through independent modeling, analytics and comparisons to other market source data, if available. 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 procedures are risk-based 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, the ERM Division provides independent risk governance over all valuation processes by establishing and maintaining a corporate-wide valuation risk policy. The ERM Division also independently reviews significant judgments, methodologies and valuation techniques to ensure compliance with established policies. Our Valuation & Finance Model Committee ("Valuation Committee"), which includes representation from our business lines, the ERM Division and the Finance Division, 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 reviewed 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 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 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: n 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 n 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 quotes from third-party pricing services or dealers and use those prices without adjustment. For a large majority of the assets and liabilities we value using pricing services and dealers, we obtain quotes 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 quotes. Significant increases (decreases) in any of the third-party quotes 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." Valuation Techniques The following table contains a description of the valuation techniques we use for fair value measurement and disclosure; the significant inputs used in those techniques (if applicable); the classification within the fair value hierarchy; and, for those measurements that we report on our consolidated balance sheets and are classified as Level 3 of the hierarchy, a narrative description of the sensitivity of the fair value measurement to changes in significant unobservable inputs. Although the sensitivities of the unobservable inputs are discussed below in isolation, interrelationships exist among the inputs such that a change in one unobservable input can result in a change to one or more of the other inputs. For example, the most common interrelationship that affects 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. Instrument Valuation Technique Classification in the Fair Value Hierarchy Securities U.S. Treasury Securities Quoted prices in active markets Level 1 Agency mortgage-related securities Fixed-rate single-class Median of external sources Level 2 Adjustable-rate single-class and majority of multi-class securities Median of external sources Predominantly Level 2 Certain multi-class securities Single external source Levels 2 and 3 Certain multi-class securities with limited market activity Discounted cash flows or risk metric pricing. Significant inputs used in the discounted cash flow technique include OAS. Significant increases (decreases) in the OAS in isolation would result in a significantly lower (higher) fair value measurement. Significant inputs used in the risk metric pricing technique include key risk metrics, such as key rate durations. Significant increases (decreases) in key rate durations in isolation would result in a significant increase (decrease) in the magnitude of change of fair value measurement in response to key rate movements. Under risk metric pricing, securities are valued by starting with a prior period price and adjusting that price for market changes in the key risk metric input used. Level 3 Commercial mortgage-related securities Single external source or, in limited circumstances, a median of external sources Predominantly Level 3 Other non-agency mortgage-related securities Median of external sources Level 3 Derivatives Exchange-traded futures Quoted prices in active markets Level 1 Interest-rate swaps Discounted cash flows. Significant inputs include market-based interest rates. Level 2 Option-based derivatives Option-pricing models. Significant inputs include interest-rate volatility matrices. Level 2 Purchase and sale commitments See Agency mortgage-related securities Level 2 Debt Debt securities of consolidated trusts held by third parties See Agency mortgage-related securities Level 2 or 3 Other debt Median of external sources Predominantly Level 2 Single external source Published yield matrices Instrument Valuation Technique Classification in the Fair Value Hierarchy Mortgage Loans Single-family loans GSE securitization market Benchmark security pricing for actively traded mortgage-related securities with similar characteristics, adjusting for the value of our guarantee fee and our credit obligation related to performing our guarantee (see Guarantee obligation). The credit obligation is based on: delivery and guarantee fees we charge under current market pricing for loans that qualify under our current underwriting standards (Level 2) and internal credit models for loans that do not qualify under our current underwriting standards (Level 3). Level 2 or 3 Whole loan market Median of external sources, referencing market activity for deeply delinquent and modified loans, where available Level 3 Impaired held-for-investment Internal models that estimate the fair value of the underlying collateral for impaired loans. Significant inputs used by our internal models include REO disposition, short sale and third-party sale values, combined with mortgage loan level characteristics using the repeat housing sales index to estimate the current fair value of the mortgage loan. Significant increases (decreases) in the historical average sales proceeds per mortgage loan in isolation would result in significantly higher (lower) fair value measurements. Level 3 Multifamily loans Held-for-sale Market prices from a third-party pricing service, using discounted cash flows based on K Certificate and SB Certificate market spreads Level 2 Held-for-investment Market prices from a third-party pricing service using discounted cash flows incorporating credit spreads for similar loans based on the loan's LTV and DSCR Level 3 Other Assets Guarantee asset Single-family Median of external sources with adjustments for specific loan characteristics Level 3 Multifamily Discounted cash flows. Significant inputs include current OAS-to-benchmark interest rates for new guarantees. Significant increases (decreases) in the OAS in isolation would result in a significantly lower (higher) fair value measurement. Level 3 Mortgage servicing rights Market prices from a third party or internally developed prices using discounted cash flows. Significant inputs include: Level 3 Estimated prepayment rates, Estimated costs to service both performing and non-accrual loans, and Estimated servicing income per loan (including ancillary income). Instrument Valuation Technique Classification in the Fair Value Hierarchy 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. Other Liabilities Guarantee obligation Single-family Delivery and guarantee fees that we charge under our current market pricing Level 2 Internal credit models. Significant inputs include loan characteristics, loan performance and status information. Level 3 Multifamily Discounted cash flows. Significant inputs are similar to those used in the valuation technique for the Multifamily guarantee asset. Level 3 HARP Loans For loans that have been refinanced under HARP, we value our guarantee obligation using the 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. The majority of our HARP loans are classified as Level 2. 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 our internal credit models or 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 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 in December 2018, the beneficial pricing afforded to HARP loans may no longer be reflected in the pricing structure of our guarantee fees. If these benefits were not reflected in the pricing for these loans, the fair value of our loans would have decreased by $2.1 billion and $5.3 billion as of December 31, 2017 and 2016, respectively. The total fair value of the loans in our portfolio that reflect the pricing afforded to HARP loans as of December 31, 2017 and 2016 was $30.2 billion and $52.8 billion , respectively. Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis The following tables present our assets and liabilities measured on 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. December 31, 2017 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $— $30,415 $5,055 $— $35,470 Other agency — 2,007 46 — 2,053 Non-agency RMBS — — 3,933 — 3,933 Non-agency CMBS — 87 1,697 — 1,784 Obligations of states and political subdivisions — — 357 — 357 Total available-for-sale securities, at fair value — 32,509 11,088 — 43,597 Trading, at fair value: Mortgage-related securities: Freddie Mac — 11,393 842 — 12,235 Other agency — 3,565 9 — 3,574 All other — 27 2,066 — 2,093 Total mortgage-related securities — 14,985 2,917 — 17,902 Non-mortgage-related securities 20,159 2,660 — — 22,819 Total trading securities, at fair value 20,159 17,645 2,917 — 40,721 Total investments in securities 20,159 50,154 14,005 — 84,318 Mortgage loans: Held-for-sale, at fair value — 20,054 — — 20,054 Derivative assets, net: Interest-rate swaps — 4,262 — — 4,262 Option-based derivatives — 4,524 — — 4,524 Other — 44 8 — 52 Subtotal, before netting adjustments — 8,830 8 — 8,838 Netting adjustments (1) — — — (8,463 ) (8,463 ) Total derivative assets, net — 8,830 8 (8,463 ) 375 Other assets: Guarantee asset, at fair value — — 3,171 — 3,171 Non-derivative held-for-sale purchase commitments, at fair value — 137 — — 137 All other, at fair value — — 45 — 45 Total other assets — 137 3,216 — 3,353 Total assets carried at fair value on a recurring basis $20,159 $79,175 $17,229 ($8,463 ) $108,100 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $9 $630 $— $639 Other debt, at fair value — 5,023 137 — 5,160 Derivative liabilities, net: Interest-rate swaps — 7,239 — — 7,239 Option-based derivatives — 121 — — 121 Other — 64 65 — 129 Subtotal, before netting adjustments — 7,424 65 — 7,489 Netting adjustments (1) — — — (7,220 ) (7,220 ) Total derivative liabilities, net — 7,424 65 (7,220 ) 269 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 4 — — 4 Total liabilities carried at fair value on a recurring basis $— $12,460 $832 ($7,220 ) $6,072 Referenced footnotes are included after the next table. December 31, 2016 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $— $33,805 $9,847 $— $43,652 Other agency — 4,155 66 — 4,221 Non-agency RMBS — — 11,797 — 11,797 Non-agency CMBS — 3,056 3,366 — 6,422 Obligations of states and political subdivisions — — 665 — 665 Total available-for-sale securities, at fair value — 41,016 25,741 — 66,757 Trading, at fair value: Mortgage-related securities: Freddie Mac — 14,248 1,095 — 15,343 Other agency — 8,149 12 — 8,161 All other — 36 113 — 149 Total mortgage-related securities — 22,433 1,220 — 23,653 Non-mortgage-related securities 19,402 1,735 — — 21,137 Total trading securities, at fair value 19,402 24,168 1,220 — 44,790 Total investments in securities 19,402 65,184 26,961 — 111,547 Mortgage loans: Held-for-sale, at fair value — 16,255 — — 16,255 Derivative assets, net: Interest-rate swaps — 6,924 — — 6,924 Option-based derivatives — 5,054 — — 5,054 Other — 287 3 — 290 Subtotal, before netting adjustments — 12,265 3 — 12,268 Netting adjustments (1) — — — (11,521 ) (11,521 ) Total derivative assets, net — 12,265 3 (11,521 ) 747 Other assets: Guarantee asset, at fair value — — 2,298 — 2,298 Non-derivative held-for-sale purchase commitments, at fair value — 108 — — 108 All other, at fair value — — 2 — 2 Total other assets — 108 2,300 — 2,408 Total assets carried at fair value on a recurring basis $19,402 $93,812 $29,264 ($11,521 ) $130,957 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $144 $— $— $144 Other debt, at fair value — 5,771 95 — 5,866 Derivative liabilities, net: Interest-rate swaps — 12,387 — — 12,387 Option-based derivatives — 106 — — 106 Other — 147 52 — 199 Subtotal, before netting adjustments — 12,640 52 — 12,692 Netting adjustments(1) — — — (11,897 ) (11,897 ) Total derivative liabilities, net — 12,640 52 (11,897 ) 795 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 37 — — 37 Total liabilities carried at fair value on a recurring basis $— $18,592 $147 ($11,897 ) $6,842 (1) Represents counterparty netting, cash collateral netting and net derivative interest receivable or payable. Assets on Our Consolidated Balance Sheets 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 the application of lower-of-cost-or-fair-value accounting or measurement of impairment based on the fair value of the underlying collateral. The table below presents assets measured on our consolidated balance sheets at fair value on a non-recurring basis. December 31, 2017 2016 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets measured at fair value on a non-recurring basis: Mortgage loans (1) $— $494 $6,199 $6,693 $— $199 $2,483 $2,682 (1) Includes loans that are classified as held-for-investment and have been measured for impairment based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. [For the year ended December 31, 2015, our transfers between Level 1 and Level 2 assets and liabilities were less than $1 million.] For the year ended December 31, 2014, 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 on our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), 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. When assets and liabilities are transferred between levels, we recognize the transfer as of the beginning of the period. Year Ended December 31, 2017 Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) (In millions) Included in Included in other Total Assets Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $9,847 ($8 ) $81 $73 $494 $— ($932 ) ($1,349 ) $17 ($3,095 ) $5,055 ($18 ) Other agency 66 — (1 ) (1 ) — — — (11 ) — (8 ) 46 — Non-agency RMBS 11,797 1,564 (270 ) 1,294 — — (7,688 ) (1,470 ) — — 3,933 124 Non-agency CMBS 3,366 343 (98 ) 245 1,681 — (3,556 ) (39 ) — — 1,697 (2 ) Obligations of states and political subdivisions 665 1 (3 ) (2 ) — — — (306 ) — — 357 — Total available-for-sale mortgage-related securities 25,741 1,900 (291 ) 1,609 2,175 — (12,176 ) (3,175 ) 17 (3,103 ) 11,088 104 Trading, at fair value: Mortgage-related securities: Freddie Mac 1,095 (171 ) — (171 ) 709 — (592 ) (8 ) 14 (205 ) 842 (155 ) Other agency 12 (3 ) — (3 ) — — — — — — 9 (3 ) All other 113 35 — 35 1,946 — — (28 ) — — 2,066 30 Total trading mortgage-related securities 1,220 (139 ) — (139 ) 2,655 — (592 ) (36 ) 14 (205 ) 2,917 (128 ) Other assets: Guarantee asset 2,298 (27 ) — (27 ) — 1,387 — (487 ) — — 3,171 (26 ) All other, at fair value 2 (10 ) — (10 ) 33 31 (11 ) — — — 45 (10 ) Total other assets $2,300 ($37 ) $— ($37 ) $33 $1,418 ($11 ) ($487 ) $— $— $3,216 ($36 ) Balance, Realized and unrealized (gains) losses Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $— $— $— $— $— $630 $— $— $— $— $630 $— Other debt, at fair value 95 — — — — 50 — (8 ) — — 137 — Net derivatives (2) $52 $40 $— $40 $— ($10 ) $— ($25 ) $— $— $57 $20 Referenced footnotes are included after the next table. Year Ended December 31, 2016 Balance, January 1, 2016 Realized and unrealized gains (losses) Purchases Issues Sales Settlements, net Transfers into Level 3 (1) Transfers out of Level 3 (1) Balance, December 31, 2016 Unrealized gains (losses) still held (3) (In millions) Included in earnings Included in other comprehensive income Total Assets Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $2,608 $10 ($71 ) ($61 ) $8,894 $— ($605 ) ($703 ) $29 ($315 ) $9,847 ($9 ) Other agency 91 — (2 ) (2 ) — — — (17 ) — (6 ) 66 — Non-agency RMBS 20,333 877 55 932 — — (6,286 ) (3,182 ) — — 11,797 236 Non-agency CMBS 3,530 2 (132 ) (130 ) — — — (34 ) — — 3,366 2 Obligations of states and political subdivisions 1,205 1 (10 ) (9 ) — — — (531 ) — — 665 — Total available-for-sale mortgage-related securities 27,767 890 (160 ) 730 8,894 — (6,891 ) (4,467 ) 29 (321 ) 25,741 229 Trading, at fair value: Mortgage-related securities: Freddie Mac 331 (21 ) — (21 ) 869 — (142 ) (3 ) 190 (129 ) 1,095 (20 ) Other agency 41 — — — — — (22 ) (7 ) — — 12 (1 ) All other 2 — — — 114 — — (3 ) — — 113 — Total trading mortgage-related securities 374 (21 ) — (21 ) 983 — (164 ) (13 ) 190 (129 ) 1,220 (21 ) Other assets: Guarantee asset 1,753 53 — 53 — 850 — (358 ) — — 2,298 54 All other, at fair value — (2 ) — (2 ) 14 — — — (10 ) — 2 (2 ) Total other assets $1,753 $51 $— $51 $14 $850 $— ($358 ) ($10 ) $— $2,300 $52 Balance, Realized and unrealized (gains) losses Purchases Issues Sales Settlements, net Transfers into Level 3 (1) Transfers out of Level 3 (1) Balance, Unrealized (gains) losses still held (3) Included in earnings Included in other comprehensive income Total Liabilities Other debt, at fair value $— $— $— $— $— $95 $— $— $— $— $95 $— Net derivatives (2) 8 68 — 68 — 2 — (26 ) — — 52 40 Other liabilities: All other, at fair value $10 $— $— $— $— $— $— $— $— ($10 ) $— $— (1) Transfers out of Level 3 during 2017 and 2016 consisted primarily of certain mortgage-related securities due to an increased volume and level of activity in the market and availability of price quotes from dealers and third-party pricing services. Certain Freddie Mac securities are classified as Level 3 at issuance and generally are classified as Level 2 when they begin trading. Transfers into Level 3 during 2017 and 2016 consisted primarily of certain mortgage-related securities due to a lack of market activity and relevant price quotes from dealers and third-party pricing services. (2) Amounts are the net of derivative assets and liabilities prior to counterparty netting, cash collateral netting, net trade/settle receivable or payable and net derivative interest receivable or payable. (3) 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, 2017 and December 31, 2016, respectively. Included in these amounts are other-than temporary impairments recorded on available-for-sale securities. The table below provides valuation techniques, the range and the weighted average of significant unobservable inputs for assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using unobservable inputs (Level 3). December 31, 2017 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Recurring fair value measurements Assets Investments in securities Available-for-sale, at fair value Mortgage-related securities Freddie Mac $4,873 Discounted cash flows OAS 27 - 501 bps 68 bps 182 Other Total Freddie Mac 5,055 Other agency 46 Other Non-agency RMBS 3,665 Median of external sources External pricing sources $75.6 - $80.8 $77.7 268 Other Total non-agency RMBS 3,933 Non-agency CMBS 1,696 Single external source External pricing sources $108.4 - $108.9 $108.7 1 Other Total non-agency CMBS 1,697 Obligations of states and political subdivisions 334 Median of external sources External pricing sources $101.2 - $101.6 $101.4 23 Other Total obligations of states and political subdivisions 357 Total available-for-sale mortgage-related securities 11,088 Trading, at fair value Mortgage-related securities Freddie Mac 582 Discounted cash flows OAS (8,905) - 27,202 bps (88) bps 243 Risk metrics Effective duration 0.00 - 55.93 years 11.76 years 17 Other Total Freddie Mac 842 Other agency 9 Other All other 2,065 Single external source External pricing sources $6.4 - $113.2 $98.0 1 Other Total all other 2,066 Total trading mortgage-related securities 2,917 Total investments in securities $14,005 Other assets: Guarantee asset, at fair value $3,171 Discounted cash flows OAS 17 - 198 bps 45 bps All other at fair value 45 Other Total other assets 3,216 Liabilities Debt securities of consolidated trusts held by third parties, at fair value 630 Single External Source External Pricing Sources $99.2 - $100.2 $100.1 Other debt, at fair value 137 Other Net derivatives 57 Other December 31, 2016 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Recurring fair value measurements Assets Investments in securities Available-for-sale, at fair value Mortgage-related securities Freddie Mac $7,619 Discounted cash flows OAS (146) - 500 bps 91 bps 129 Median of external sources External pricing sources $100.8 - $103.3 $101.8 2,099 Other Total Freddie Mac 9,847 Other agency 66 Other Non-agency RMBS 9,974 Median of external sources External pricing sources $74.0 - $78.8 $76.0 1,823 Other Total non-agency RMBS 11,797 Non-agency CMBS 3,365 Risk metrics Effective duration 2.15 - 10.02 years 8.57 years 1 Other Total non-agency CMBS 3,366 Obligations of states and political subdivisions 619 Median of external sources External pricing sources $100.9 - $101.5 $101.2 46 Other Total obligations of states and political subdivisions 665 Total available-for-sale mortgage-related securities 25,741 Trading, at fair value Mortgage-related securities Freddie Mac 452 Risk metrics Effective duration (5.07) - 46.37 years 6.94 years 311 Discounted cash flows OAS (3,346) - 2,460 bps (224) bps 332 Other Total Freddie Mac 1,095 Other agency 12 Other All other 113 Risk metrics Effective duration 0.14 - 4.08 years 2.52 years Total trading mortgage-related securities 1,220 Total investments in securities $26,961 Other assets Guarantee asset, at fair value $2,091 Discounted cash flows OAS 17 - 198 bps 50 bps 207 Other Total guarantee asset, at fair value 2,298 All other at fair value 2 Other Total other assets 2,300 Liabilities Other debt, at fair value 95 Other Net derivatives 49 Other The table below provides valuation techniques, the range and the weighted average of significant unobservable inputs for assets and liabilities measured on our consolidated balance sheets at fair value on a non-recurring basis using unobservable inputs (Level 3). Certain of the fair values in the table below were not obtained as of the period end, but were obtained during the period. December 31, 2017 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Non-recurring fair value measurements Mortgage loans $6,199 Internal model Historical sales proceeds $3,000 - $899,000 $176,558 Internal model Housing sales index 43 - 394 bps 102 bps Median of external sources External pricing sources $36.5 - $94.9 $80.9 December 31, 2016 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Non-recurring fair value measure |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL CONTINGENCIES | 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's or servicer’s eligibility to sell loans to, and/or service loans for, us. In these cases, the former seller or 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 loans. These suits typically involve claims alleging wrongful actions of sellers and servicers. Our contracts with our sellers and servicers generally provide for indemnification of Freddie Mac against liability arising from sellers' and servicers' wrongful actions with respect to loans 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. Putative Securities Class Action Lawsuit: Ohio Public Employees Retirement System 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, and the plaintiff amended its complaint on several occasions. The plaintiff alleged, among other things, 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. In October 2013, defendants filed motions to dismiss the complaint. In October 2014, the District Court granted defendants’ motions and dismissed the case in its entirety against all defendants, with prejudice. In November 2014, plaintiff filed a notice of appeal in the U.S. Court of Appeals for the Sixth Circuit. On July 20, 2016, the Court of Appeals reversed the District Court's dismissal and remanded the case to the District Court for further proceedings. 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 and the fact that the District 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. 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 depressed 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 in July 2013, and a second amended complaint in October 2014. In August 2015, the District Court dismissed the portion of our claim related to antitrust violations and fraud and we filed a motion for reconsideration. On March 31, 2016, the District Court granted a portion of our motion, finding personal jurisdiction over certain defendants, and denied the portion of our motion with respect to statutes of limitation for our fraud claims. Subsequently, in a related case, the U.S. Court of Appeals for the Second Circuit reversed the District Court’s dismissal of certain plaintiffs’ antitrust claims and remanded the case to the District Court for consideration of whether, among other things, the plaintiffs are "efficient enforcers" of the antitrust laws. On December 20, 2016, after briefing and argument on the defendants' renewed motions to dismiss on personal jurisdiction and efficient enforcer grounds, the District Court denied defendants' motions in part and granted them in part. The District Court held that Freddie Mac is an efficient enforcer of the antitrust laws, but dismissed on personal jurisdiction grounds Freddie Mac's antitrust claims against all defendants except HSBC USA, N.A. Then, in an order issued February 2, 2017, the District Court effectively dismissed Freddie Mac's remaining antitrust claim against HSBC USA, N.A. At present, Freddie Mac's breach of contract actions against Bank of America, N.A., Barclays Bank, Citibank, N.A., Credit Suisse, Deutsche Bank, Royal Bank of Scotland and UBS AG are its only claims remaining in the District Court. Litigation Concerning the Purchase Agreement Since July 2013, a number of lawsuits have been filed against us concerning the August 2012 amendment to the Purchase Agreement, which created the net worth sweep dividend provisions of the senior preferred stock. The plaintiffs in the lawsuits allege that they are holders of common stock and/or 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.) It is possible that similar lawsuits will be filed in the future. The lawsuits against us are described below. Litigation in the U.S. District Court for the District of Columbia In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations. This case is the result of the consolidation of three putative class action lawsuits: Cacciapelle and Bareiss vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and FHFA , filed on July 29, 2013; American European Insurance Company vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and FHFA , filed on July 30, 2013; and Marneu Holdings, Co. vs. FHFA, Treasury, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation , filed on September 18, 2013. (The Marneu case was also filed as a shareholder derivative lawsuit.) A consolidated amended complaint was filed in December 2013. In the consolidated amended complaint, plaintiffs allege, among other items, that the August 2012 amendment to the Purchase Agreement 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 sought unspecified damages, equitable and injunctive relief, and costs and expenses, including attorney and expert fees. 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. Arrowood Indemnity Company vs. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, FHFA and Treasury. This case was filed on September 20, 2013. The allegations and demands made by plaintiffs in this case were generally similar to those made by the plaintiffs in the In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations case described above. Plaintiffs in the Arrowood lawsuit also requested that, if injunctive relief were 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 stated to be approximately $42 million . American European Insurance Company, Cacciapalle and Miller vs. Treasury and FHFA. This case was filed as a shareholder derivative lawsuit, purportedly on behalf of Freddie Mac as a "nominal" defendant, on July 30, 2014. The complaint alleged that, through the August 2012 amendment to the Purchase Agreement, Treasury and FHFA breached their respective fiduciary duties to Freddie Mac, causing Freddie Mac to suffer damages. The plaintiffs asked that Freddie Mac be awarded compensatory damages and disgorgement, as well as attorneys’ fees, costs and other expenses. FHFA, joined by Freddie Mac and Fannie Mae, moved to dismiss the In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations case and the other related cases in January 2014. Treasury filed a motion to dismiss the same day. In September 2014, the District Court granted the motions and dismissed the plaintiffs’ claims. All plaintiffs appealed that decision, and on February 21, 2017, the U.S. Court of Appeals for the District of Columbia Circuit affirmed in part and remanded in part the decision granting the motions to dismiss. The Court of Appeals affirmed dismissal of all claims except certain claims seeking monetary damages for breach of contract and breach of implied duty of good faith and fair dealing. In March 2017, certain institutional and class plaintiffs filed petitions for panel rehearing with respect to certain claims. On July 17, 2017, the Court of Appeals granted the petitions for rehearing and issued a modified decision, which permitted the institutional plaintiffs to pursue the breach of contract and breach of implied duty of good faith and fair dealing claims that had been remanded. The Court of Appeals also removed language related to the standard to be applied to the implied duty claims, leaving that issue for the District Court to determine on remand. On October 16, 2017, certain institutional and class plaintiffs filed petitions for writ of certiorari in the U.S. Supreme Court challenging whether HERA's prohibition on injunctive relief against FHFA bars judicial review of the net worth sweep dividend provisions of the August 2012 amendment to the Purchase Agreement, as well as whether HERA bars shareholders from pursuing derivative litigation where they allege the conservator faces a conflict of interest. The Solicitor General has opposed the petitions. On November 1, 2017, certain institutional and class plaintiffs and plaintiffs in another case in which Freddie Mac was not originally a defendant, Fairholme Funds, Inc. v. FHFA, Treasury, and Federal National Mortgage Association , filed proposed amended complaints in the District Court. Each of the proposed amended complaints names Freddie Mac as a defendant for breach of contract and breach of the covenant of good faith and fair dealing claims as well as for new claims alleging breach of fiduciary duty and breach of Virginia corporate law. On January 10, 2018, FHFA, Freddie Mac, and Fannie Mae moved to dismiss the amended complaints. Litigation in the U.S. Court of Federal Claims Reid and Fisher vs. the United States of America and Federal Home Loan Mortgage Corporation. This case was filed as a derivative lawsuit, purportedly on behalf of Freddie Mac as a "nominal" defendant, on February 26, 2014. The complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation. The plaintiffs ask that Freddie Mac be awarded just compensation for the U.S. government’s alleged taking of its property, attorneys’ fees, costs and other expenses. Rafter, Rattien and Pershing Square Capital Management vs. the United States of America et al. This case was filed as a shareholder derivative lawsuit, purportedly on behalf of Freddie Mac as a "nominal" defendant, on August 14, 2014. The complaint alleges that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation, and the U.S government breached an implied-in-fact contract with Freddie Mac. In September 2015, plaintiffs filed an amended complaint, which contains one claim involving Freddie Mac. The amended complaint alleges that Freddie Mac’s charter is a contract with its common stockholders, and that, through the August 2012 amendment to the Purchase Agreement, the U.S. government breached the implied covenant of good faith and fair dealing inherent in such contract. Plaintiffs ask that they be awarded damages or other appropriate relief for the alleged breach of contract as well as attorneys’ fees, costs and expenses. Litigation in the U.S. District Court for the District of Delaware Jacobs and Hindes vs. FHFA and Treasury. This case was filed on August 17, 2015 as a putative class action lawsuit purportedly on behalf of a class of holders of preferred stock or common stock issued by Freddie Mac or Fannie Mae. The case was also filed as a shareholder derivative lawsuit, purportedly on behalf of Freddie Mac and Fannie Mae as "nominal" defendants. The complaint alleges, among other items, that the August 2012 amendment to the Purchase Agreement violated applicable state law and constituted a breach of contract, as well as a breach of covenants of good faith and fair dealing. Plaintiffs seek equitable and injunctive relief (including restitution of the monies paid by Freddie Mac and Fannie Mae to Treasury under the net worth sweep dividend), compensatory damages, attorneys’ fees, costs and expenses. On November 27, 2017, the Court dismissed the case with prejudice after defendants filed a motion to dismiss. On December 21, 2017, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Third Circuit. At present, it is not possible for us to predict the probable outcome of the lawsuits discussed above in the U.S. District Courts and the U.S. Court of Federal Claims (including the outcome of any appeal) 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 In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations case, the plaintiffs have not demanded a stated amount of damages they believe are due, and the Court has not certified a class. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Banking [Abstract] | |
REGULATORY CAPITAL | Regulatory Capital In October 2008, FHFA announced that it was suspending capital classification of us during conservatorship in light of the Purchase Agreement. FHFA continues to monitor our capital levels, but the existing statutory and FHFA regulatory capital requirements are not binding during conservatorship. We continue to provide quarterly submissions to FHFA on minimum capital. During 2017, we and Fannie Mae worked with FHFA to develop an overall risk measurement framework for evaluating our risk management and business decisions during conservatorship, known as the Conservatorship Capital Framework ("CCF"). We use both CCF and our internal capital methodologies, which are aligned, to measure risk for making economically effective decisions. We are required to submit quarterly reports to FHFA related to CCF requirements. 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. Pursuant to regulatory guidance from FHFA, our minimum capital requirement was not affected by adoption of amendments to the accounting guidance for transfers of financial assets and consolidation of VIEs effective January 1, 2010. Specifically, upon adoption of these amendments, FHFA directed us, for purposes of minimum capital, to continue reporting single-family PCs and certain other securitization products 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. 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. (In millions) December 31, 2017 December 31, 2016 GAAP net worth (deficit) ($312 ) $5,075 Core capital (deficit) (1)(2) (73,037 ) (67,717 ) Less: Minimum capital requirement (1) 18,431 18,933 Minimum capital surplus (deficit) (1) ($91,468 ) ($86,650 ) (1) Core capital and minimum capital figures are estimates and represent amounts submitted to FHFA. FHFA is the authoritative source for our regulatory capital. (2) Core capital excludes certain components of GAAP total equity (i.e., AOCI and the liquidation preference of the senior preferred stock) as these items do not meet the statutory definition of core capital. 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 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, 2017 , our liabilities exceeded our assets under GAAP by $312 million. As a result, FHFA, as Conservator, will submit a draw request, on our behalf, to Treasury under the Purchase Agreement to eliminate our net worth deficit. As of December 31, 2017 , our aggregate funding received from Treasury under the Purchase Agreement was $71.3 billion . This aggregate funding amount does not include the initial $1.0 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, nor does it include the additional $3.0 billion increase in the liquidation preference pursuant to the Letter Agreement. 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, 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 instructed otherwise. |
Selected Financial Statement Li
Selected Financial Statement Line Items | 12 Months Ended |
Dec. 31, 2017 | |
Selected Financial Statement Data [Abstract] | |
Selected Financial Statement Line Items | Selected Financial Statement Line Items The table below presents the significant components of other income (loss) and other expense on our consolidated statements of comprehensive income. Year Ended December 31, (In millions) 2017 2016 2015 Other income (loss) Non-agency mortgage-related securities settlements $4,532 $— $65 Gains (losses) on held-for-sale loan purchase commitments 1,098 663 — Gains (losses) on loans 928 (463 ) (2,094 ) All other 922 1,054 1,150 Total other income (loss) $7,480 $1,254 ($879 ) Other expense Property tax and insurance expense on held-for-sale loans $45 ($90 ) ($1,094 ) All other (693 ) (509 ) (412 ) Total other expense ($648 ) ($599 ) ($1,506 ) The table below presents the significant components of other assets and other liabilities on our consolidated balance sheets. As of December 31, (In millions) 2017 2016 Other assets Real estate owned, net $892 $1,198 Accounts and other receivables (1) 7,397 5,083 Guarantee asset 3,171 2,298 Fixed assets 798 630 Advances to lenders 796 1,278 All other 636 1,871 Total other assets $13,690 $12,358 Other liabilities Servicer liabilities $628 $730 Guarantee obligation 3,081 2,208 Accounts payable and accrued expenses 754 957 Payables related to securities 2,813 4,510 Income taxes payable 656 — All other 1,036 1,082 Total other liabilities $8,968 $9,487 (1) Primarily consists of servicer receivables and other non-interest receivables. END OF CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. 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 includes certain adjustments to correct immaterial errors related to previously reported periods. |
Use of Estimates | Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and 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 for establishing the allowance for loan losses and reserve for guarantee losses, valuing financial instruments and other assets and liabilities and assessing impairments on investments. Actual results could be different from these estimates. |
Consolidation and Equity Method of Accounting | Consolidation and Equity Method Accounting For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. We generally consolidate entities in which we have a controlling financial interest. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE. For entities that are not VIEs, we hold a controlling financial interest in entities where we hold a majority of the voting rights or where we are able to exercise control through substantive participating rights or as a general partner. We do not currently consolidate any entities which are not VIEs. We use the equity method to account for our interests in entities in which we do not have a controlling financial interest, but over which we have significant influence. |
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. |
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 from servicers of the underlying assets of our consolidated trusts which are deposited into a separate custodial account. We invest the cash held in the custodial account 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. |
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: n The unrealized gains and losses on available-for-sale securities; n The effective portion of derivatives accounted for as cash flow hedge relationships; and n Defined benefit plans. |
Recently Adopted or Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2016-06 , Derivatives and Hedging (Topic 815) The amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendment is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. January 1, 2017 The adoption of this amendment did not have a material effect on our consolidated financial statements. ASU 2016-17 , Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control The Board issued this Update to amend the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. January 1, 2017 The adoption of this amendment did not have a material effect on our consolidated financial statements. ASU 2017-12 , Derivatives and Hedging (Topic 815) The amendments in this Update made targeted improvements to accounting for hedging activities. The Update changes the recognition and presentation requirements of hedge accounting and provides new alternatives on how to measure and account for certain aspects of hedging activities. October 1, 2017 The adoption of the amendments did not affect the application of hedge accounting for our existing hedge strategies; however, we modified the presentation of hedge results on our consolidated statements of comprehensive income and in the financial statement notes upon adoption. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) and ASU 2015-14 The amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 defers the effective date of ASU 2014-09 for all entities by one year. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-01 , Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. January 1, 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The amendments in this Update do not change the core principle of the guidance in Topic 606. The amendments clarify the implementation guidance on principal versus agent considerations. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2016-10 , Revenue from Contracts with Customers (Topic 606) The amendments in this Update do not change the core principle of the guidance in Topic 606, but clarify two issues: i) identifying performance obligations; and ii) licensing. These clarifications are intended to reduce diversity in practice and to reduce the cost and complexity of Topic 606 at transition and on an ongoing basis. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-12 , Revenue from Contracts with Customers (Topic 606) The amendments in this Update do not change the core principle of the guidance in Topic 606, but affect aspects of the guidance and technical corrections. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The main objective of this Update is to address the diversity in practice that currently exists in regards to how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 Upon adoption, the portion of the cash payment attributable to the accreted interest related to zero-coupon debt will be presented in the operating activities section, a classification change from the financing activities section where this item is currently presented. As a result, we estimate that we will reclassify approximately $1.2 billion and $0.5 billion of cash payments from financing activities to operating activities on our consolidated statements of cash flows for the years ended December 31, 2017 and 2016, respectively, upon adoption. ASU 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) The amendments in this Update address the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230, Statement of Cash Flows. Specifically, this amendment dictates that the statement of cash flows should explain the change in the period of the total of cash, cash equivalents and restricted cash balances. January 1, 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The amendments in this Update are of a similar nature to the items typically addressed in the Technical Corrections and Improvements project. However, the Board decided to issue a separate Update for technical corrections and improvements to Topic 606 and other Topics amended by Update 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to Update 2014-09. January 1, 2018 The adoption of the guidance in Topic 606 will be applied retrospectively. The adoption of the amendments will not have a material effect on our consolidated financial statements or on our disclosures. ASU 2018-02 , Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. 1Q 2018 The adoption of the amendments will not have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2016-02 , Leases (Topic 842) The amendment addresses the accounting for lease arrangements. January 1, 2019 We do not expect that the adoption of this amendment will have a material effect on our consolidated financial statements. ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. January 1, 2020 While we are evaluating the effect that the adoption of this amendment will have on our consolidated financial statements, it will increase (perhaps substantially) our provision for credit losses in the period of adoption. |
Consolidation, Variable Interest Entity, Policy | Securitization Activities and Consolidation Our primary business activities in our Single-family Guarantee and Multifamily segments involve the securitization of loans or other mortgage-related assets using trusts that are VIEs. These trusts issue beneficial interests in the loans or other mortgage-related assets that they own. We guarantee the principal and interest payments on some or all of the issued beneficial interests in substantially all of our securitization transactions. See Note 5 for additional information on our guarantee activities. We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. We are the primary beneficiary of a VIE when we have both the power to direct the activities of the VIE that most significantly impact its economic performance and exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We evaluate whether we are the primary beneficiary of VIEs in which we have interests on an ongoing basis, and our primary beneficiary determination may change over time as our interest in the VIE changes. SB Certificates In SB Certificate transactions, we securitize multifamily small balance loans using a non-Freddie Mac SB Certificate trust that issues senior classes of securities that we guarantee, as well as subordinated classes of securities that we do not guarantee. Similar to our K Certificate transactions, we are not the primary beneficiary of and, therefore, do not consolidate our SB Certificate trusts, as we do not have the ability to direct loss mitigation activities of the underlying loans, which is the most significantly activity affecting the economic performance of the VIE. PCs PCs are pass-through debt securities that represent undivided beneficial interests in a pool of loans held by a securitization trust. We serve as both administrator and guarantor for our PC trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by the PC trusts. As guarantor, we guarantee the payment of principal and interest on our PCs in exchange for a guarantee fee, and we have the right to purchase delinquent loans from the PC trust to help improve the economic performance of the trust. We absorb all credit losses of the PC trusts through our guarantee of the principal and interest payments. The economic performance of our PC trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of our PC trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of our PC trusts and, therefore, consolidate those trusts. Other Securitization Products We are the primary beneficiary of and, therefore, consolidate the trusts used to issue certain of our other securitization products, including trusts that issue multifamily K Certificates without subordination and KT Certificates, as well as certain other single-family securitization products, because we have the ability to direct the activities that most significantly affect the economic performance of the trusts and we have the obligation to absorb credit losses through our guarantee of some or all of the issued securities. As a result, we consolidated trusts used to issue certain of our other securitization products with underlying assets totaling $8.5 billion and $7.5 billion at December 31, 2017 and 2016, respectively. We do not consolidate the trusts used to issue other securitization products that do not meet these conditions, including those trusts that issue multifamily M Certificates, ML Certificates and Q Certificates. For those products, we account for our guarantee to the non-consolidated VIE. n REMICs and Stripped Giant PCs - REMICs and Stripped Giant PCs are multiclass resecuritizations of the cash flows of the underlying collateral, which may be previously issued PCs, Giant PCs, or other REMICs and Stripped Giant PCs. The activity that most significantly impacts the economic performance of our multiclass resecuritization trusts is typically the initial design and structuring of the trust. Substantially all multiclass resecuritization trusts are created as part of customer-driven transactions in which an investor or dealer participates in the decisions made during the design and establishment of the trust. As a result, we do not have the unilateral ability to direct the activities of our multiclass resecuritization trusts that most significantly impact the economic performance of those trusts. In addition, we do not have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. As a result, we have concluded that we are not the primary beneficiary of our multiclass resecuritization trusts and, therefore, do not consolidate those trusts. K Certificates In a K Certificate transaction, we sell multifamily loans to a non-Freddie Mac securitization trust that issues senior, mezzanine and subordinate securities, and simultaneously purchase and place the senior securities into a Freddie Mac securitization trust that issues guaranteed K Certificates. In these transactions, we guarantee the senior securities issued by the Freddie Mac securitization trust and do not issue or guarantee the mezzanine or subordinate securities issued by the non-Freddie Mac securitization trust. We receive a guarantee fee in exchange for our guarantee. We serve as guarantor of our K Certificate trusts and, from time to time, as master servicer. However, in contrast to single-family PC trusts, the rights to direct loss mitigation activities of the underlying loans and to purchase delinquent loans from the securitization trust are held by the investor in the most subordinate remaining securities issued by the non-Freddie Mac trust, and therefore we do not have any power to direct those activities unless we are the investor in the most subordinate remaining securities. The economic performance of our K Certificate trusts is most significantly affected by the performance of the underlying loans. Because our rights in a K Certificate transaction do not provide us with the power to direct the activities that most significantly affect the performance of the underlying loans, we are not the primary beneficiary of our K Certificate trusts and, therefore, do not consolidate those trusts. Senior Subordinate Securitization Structures We are the primary beneficiary of and, therefore, consolidate certain of our single-family senior subordinate securitization structures because we have both the ability to direct the loss mitigation activities of the underlying loans and have the obligation to absorb credit losses through our guarantee of the issued senior securities. As a result, we consolidated certain of the trusts used in these senior subordinate securitization structures with underlying assets totaling $3.6 billion and $1.5 billion , at December 31, 2017 and 2016, respectively. We do not consolidate the other single-family senior subordinate securitization structures as we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. For those securitizations where we sell loans to the VIE, we derecognize the transferred loans and account for our guarantee to the non-consolidated VIE. We account for our investments in the beneficial interests issued by the non-consolidated VIE as investments in debt securities. During 2017 and 2016, we issued approximately $6.8 billion and $0.8 billion , respectively, of guaranteed securities in these senior subordinate securitization structures for which a guarantee asset and guarantee obligation were generally recognized. Resecuritization Products We create resecuritization products primarily by using PCs or our previously issued resecuritization products as the underlying collateral. In a typical resecuritization transaction, previously issued PCs or resecuritization products are transferred to a resecuritization trust that issues beneficial interests in the underlying collateral. We establish parameters that define eligibility standards for assets that may be used as collateral for each of our resecuritization programs. Resecuritization products can then be created based on the parameters that we have established. Similar to our PCs, we guarantee the payment of principal and interest to the investors in our resecuritization products. However, because we have already guaranteed the underlying assets, we do not assume any incremental credit risk by issuing these securities. The main types of resecuritization products we create are Giant PCs, REMICs and Stripped Giant PCs. n Giant PCs - Giant PCs are direct pass-throughs of the cash flows of the underlying collateral, which may be previously issued PCs or Giant PCs. We do not consolidate Giant PCs as their resecuritization does not result in any new or incremental risk to the holders of the securities issued by the resecuritization trust and because we are not exposed to any incremental rights to receive benefits or obligations to absorb losses that could be significant to the resecuritization trust. Purchases of Giant PCs as investments in our mortgage-related investments portfolio are accounted for as debt extinguishments of a pro-rata portion of the underlying single-family PCs because Giant PCs are considered substantially the same as the underlying single-family PCs. Similarly, sales of Giant PCs previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances of a pro-rata portion of the underlying single-family PCs. Consolidated VIEs We determined we are the primary beneficiary of the VIEs used to issue our PCs, certain senior subordinate securitization structures, and certain other securitization products as previously discussed and, therefore, consolidate these VIEs. Our exposure on debt securities of consolidated trusts represents our liability to third parties that hold beneficial interests in our consolidated securitization trusts. When we consolidate a VIE, we recognize the assets and liabilities of the VIE on our consolidated balance sheets and account for those assets and liabilities based on the applicable GAAP for each specific type of asset or liability. Assets and liabilities that we transfer to a VIE at, after or shortly before the date we become the primary beneficiary of the VIE are initially measured at the same amounts that they would have been measured 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: n The sum of the fair value of the consideration paid, the fair value of any noncontrolling interests and the reported amount of any previously held interests; and n The net fair value of the assets and liabilities recognized. Guarantees to consolidated VIEs are eliminated in consolidation and are therefore not separately recognized on our consolidated balance sheets. We also obtain interests in various other VIEs created by third parties through the normal course of business, such as through our investments in certain non-Freddie Mac mortgage-related securities, purchases of multifamily loans, guarantees of multifamily housing revenue bonds, as a derivative counterparty or through other activities. To the extent that we were not involved in the design or creation of these VIEs, they are excluded from the table above. Our interests in these VIEs are generally passive in nature and are not expected to result in us obtaining a controlling financial interest in these VIEs in the future. As a result, we do not consolidate these VIEs and we account for our interests in these VIEs in the same manner that we account for our interests in other third-party transactions. See Note 7 for additional information regarding our investments in non-Freddie Mac mortgage-related securities. See Note 4 for more information regarding multifamily loans. |
Transfers and Servicing of Financial Assets, Policy | When we purchase a REMIC or Stripped Giant PC as an investment in our mortgage-related investments portfolio, we generally record the security as an investment in debt securities rather than extinguishment of debt since we are generally investing in the debt securities of a non-consolidated entity. We do not consolidate REMIC or Stripped Giant PC trusts in which we hold variable interests, as we are not deemed to be the primary beneficiary of the trusts, unless we have the unilateral ability to collapse the trust. Similarly, sales of REMICs or Stripped Giant PCs previously held as investments in our mortgage-related investments portfolio are accounted for as sales of investments in debt securities. See Note 7 for additional information on accounting for investments in debt securities. Loans held by our PC trusts are recognized on our consolidated balance sheets as mortgage loans held-for-investment. The corresponding PCs held by third parties are recognized on our consolidated balance sheets as debt, net. We extinguish the outstanding debt securities of the related consolidated trust and recognize gains or losses on debt extinguishment for the difference between the consideration paid and the debt carrying value when we purchase PCs as investments in our mortgage-related investments portfolio. Sales of PCs previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances. See Note 4 and Note 8 for additional information on loans and debt securities of consolidated trusts. In a typical SB Certificate transaction, we sell loans to a SB Certificate trust, derecognize the transferred loans and account for our guarantee to the non-consolidated SB Certificate trust. We account for our investments in the beneficial interests issued by non-consolidated SB Certificate trusts as investments in debt securities. When we sell loans to a K Certificate trust, we derecognize the transferred loans and account for our guarantee to the non-consolidated K Certificate trust. We account for our investments in the beneficial interests issued by non-consolidated K Certificate trusts as investments in debt securities. |
Revenue Recognition, Multiple-deliverable Arrangements, Description | Because we have already guaranteed the underlying assets, we do not receive any incremental guarantee fees in exchange for our guarantee, and, accordingly, we do not recognize any additional guarantee assets, guarantee obligations or reserves for guarantee losses related to multiclass resecuritization trusts. Instead, we receive a one-time transaction fee which represents compensation for both the structuring and creation of the securities and for our ongoing administrative responsibilities to service the securities. We recognize the portion of the transaction fee related to creation of the securities immediately in earnings. We defer the portion of the fee related to ongoing administrative responsibilities and amortize it over the life of the associated trust. |
Mortgage Loans | We own both single-family loans, which are secured by one to four unit residential properties, and multifamily loans, which are secured by properties with five or more residential rental units. Our single-family loans are predominantly first lien, fixed-rate loans secured by the borrower’s primary residence. Upon acquisition, we classify a loan as either held-for-sale or held-for-investment. Loans that we have the ability and intent to hold for the foreseeable future are classified as held-for-investment. Loans that we intend to securitize using an entity we will consolidate are classified as held-for-investment both prior to and subsequent to their securitization. Otherwise, they will be classified as held-for-sale. Held-for-investment 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, upfront fees and other pricing adjustments). 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 (including lower-of-cost-or-fair-value adjustments) on single-family loans classified as held-for-sale are deferred and not amortized. We elected the fair value option for certain multifamily loans that we intend to securitize and sell to investors. Therefore, these multifamily 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. Cash flows related to loans originally classified as held-for-investment 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)). Cash flows related to loans originally classified as held-for-sale are classified as operating activities. We have the option under our PC master trust agreement to remove 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. When we remove loans from PC trusts, we record an extinguishment of the corresponding portion of the debt securities of the consolidated trusts and we reclassify the loans from mortgage loans held-for-investment by consolidated trusts to mortgage loans held-for-investment by Freddie Mac. |
Loans and Leases Receivable, Allowance for Loan Losses Policy | Loan Loss Reserves The loan loss reserves represent estimates of probable incurred credit losses. We recognize probable incurred losses by recording a charge to the provision for credit losses in our consolidated statements of comprehensive income. The loan loss reserves include: n Our allowance for loan losses, which pertains to all single-family and multifamily loans classified as held-for-investment on our consolidated balance sheets; and n Our reserve for guarantee losses, which pertains to single-family and multifamily loans underlying our K Certificates and SB Certificates, senior subordinate securitization structures, other securitization products and other mortgage-related guarantees. A significant portion of the unsecuritized single-family loans on our consolidated balance sheets include seriously delinquent and 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. Loan Loss Reserves Determined on a Collective Basis Single-Family Loans We estimate loan loss reserves on homogeneous pools of single-family loans using a model that evaluates a variety of factors affecting collectability. We review the outputs of this model by considering qualitative factors such as macroeconomic and other factors to see whether the model outputs are consistent with our expectations. Management adjustments may be necessary to take into consideration external factors and current economic events that have occurred but that are not yet reflected in the factors used to derive the model outputs. Significant judgment is exercised in making these adjustments. The homogeneous pools of single-family loans are determined based on common underlying characteristics, including current LTV ratios, trends in home prices, loan product type and geographic region. We rely upon third-parties to service our loans. At loan delivery, the seller provides us with loan data, which includes characteristics and underwriting information. Each subsequent month, the servicers provide us with monthly loan level servicing data, including delinquency and loss information. Our single-family loan loss reserve default models produce estimates based on 12 months of loan level performance data, which includes a history of delinquency, foreclosures, foreclosure alternatives and modifications. Our loan loss reserve estimate includes projections of: n Loss mitigation activities, including loan modifications for troubled borrowers and the incidence of redefault we have experienced on similar loans that have completed a loan modification; and n Defaults we believe are likely to occur as a result of loss events that have occurred through the respective balance sheet date. 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. 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. In determining our loan loss reserves, we also consider macroeconomic and other factors that affect 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. Our single-family loan loss reserve severity is based on the repeat housing sales index and actual REO dispositions, short sales and third-party sales that incorporate the most recent: n Twelve months of sales experience realized on our distressed property dispositions; and n Twelve months of pre-foreclosure expenses on our distressed properties, including REO, short sales and third-party sales. Our single-family loan loss severity estimate also captures expectations about recoveries from primary mortgage insurance or from seller/servicers due to repurchases. We use historical trends in home prices in our single-family loan loss reserve process, primarily through the use of current 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. For loans where foreclosure is probable, we measure impairment based upon an estimate of the fair value of the underlying collateral less estimated disposition costs. Our estimate also considers the effect of historical home price changes on borrower behavior. We apply proceeds from primary mortgage insurance and from 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 received in excess of our recorded investment in loans are recorded as a decrease to REO operations expense in our consolidated statements of comprehensive income. We record benefits related to most of our credit enhancements (e.g., primary mortgage insurance and certain ACIS insurance policies) when realization of our claims is deemed probable. We record benefits for certain of our other credit enhancements (e.g., certain STACR debt notes and certain senior subordinate securitization structures) when the realized loss event occurs. We generally record repurchase recoveries on a cash basis due to the uncertainty of the timing and amount of collections of such recoveries. Multifamily Loans Multifamily loans evaluated collectively for impairment are aggregated into book year vintage portfolios. Potential impairment related to these portfolios is measured by benchmarking published historical commercial loan performance data to those vintages based upon available economic data related to multifamily real estate, including apartment vacancy and rental rates. |
Non-Accrual Loans | We recognize interest income on an accrual basis except when we believe the collection 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. Cost basis adjustments on held-for-investment loans are amortized into interest income over the contractual lives of the loans using the effective interest method. A non-accrual 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 an 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. |
Impaired Loans | Loan Loss Reserves Determined on an Individual Basis We consider a loan to be impaired when, based on current information, it is probable that we will not receive all amounts due (including both principal and interest) in accordance with the contractual terms of the original loan agreement. Single-family loans individually evaluated for impairment include TDRs, as well as loans acquired under our financial guarantees with deteriorated credit quality prior to 2010. Multifamily loans individually evaluated for impairment include TDRs, loans three monthly payments or more past due and loans that are impaired based on management judgment. 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 the underlying property’s operating performance as represented by its current DSCR, available credit enhancements, 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 Interest Income above. |
Troubled Debt Restructurings | Troubled Debt Restructurings A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. 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 an insignificant delay in payment to be a concession. We generally consider a delay in monthly amortizing payments of three months or less to be insignificant. A concession typically includes one or more of the following being granted to the borrower: n A trial period where the expected permanent modification will change our expectation of collecting all amounts due at the original contract rate; n A delay in payment that is more than insignificant; n A reduction in the contractual interest rate; n Interest forbearance for a period of time that is more than insignificant or forgiveness of accrued but uncollected interest amounts; n Principal forbearance that is more than insignificant; and n Discharge of the borrower’s obligation in Chapter 7 bankruptcy. 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 non-troubled 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, extending the maturity for longer than one year, providing principal forbearance, or some combination of these terms. Single-Family Loans Impairment of a single-family 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 "Interest Income" 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. 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. |
Loan reclassifications charge off policy change | Change in Estimate Adoption of Regulatory Guidance on Determining when a Loan is Uncollectible On January 1, 2015, we adopted regulatory guidance issued by FHFA that establishes guidelines for adverse classification and identification of specified single-family and multifamily assets, including guidelines for recognizing charge-offs on certain single-family loans. We analyze loans for collectability based on several factors, including, but not limited to: n Servicing actions that indicate the potential for near-term loss mitigation, such as whether we have achieved quality borrower contact; n Credit risk factors, such as whether the loan is in a state with foreclosure practices that prevent timely resolution of delinquencies; and n Loan characteristics that indicate whether repayment is likely to occur, such as the borrower's payment history, loan status and historical performance of loans with similar characteristics. Upon adoption, we changed the timing of when we deem certain single-family loans to be uncollectible, and we began to charge-off the amount of recorded investment in excess of the fair value of the underlying collateral for loans that have been deemed uncollectible prior to foreclosure, based on the factors identified above. This adoption resulted in a reduction to both the recorded investment of loans, held-for-investment and our allowance for loan losses of $1.9 billion on January 1, 2015. However, these additional charge-offs did not have a material impact on our comprehensive income for 2015, as we had already reserved for these losses in our allowance for loan losses in prior periods. On January 1, 2017, we elected a new accounting policy for loan reclassifications from held-for-investment to held-for-sale. Under the new policy, when we reclassify (transfer) a loan from held-for-investment to held-for-sale, we charge off the entire difference between the loan’s recorded investment and its fair value if the loan has a history of credit-related issues. Expenses related to property taxes and insurance are included as part of the charge-off. If the charge-off amount exceeds the existing loan loss reserve amount, an additional provision for credit losses is recorded. Any declines in loan fair value after the date of transfer will be recognized as a valuation allowance, with an offset recorded to other income (loss). This new policy election was applied prospectively, as it was not practical to apply it retrospectively. The new policy election did not affect our net income; however, it affected where the loan reclassifications from held-for-investment to held-for-sale were recorded in our consolidated statements of comprehensive income. Prior to the policy change, upon a loan reclassification from held-for-investment to held-for-sale, we reversed the related allowance for loan losses to the benefit (provision) for credit losses, recorded a valuation allowance for any difference between the loan's recorded investment and its fair value to other income (loss), and recorded property taxes and insurance expenses related to the transferred loans in other expense. Under the new policy, benefit (provision) for credit losses is the only line item affected when a transfer occurs. |
Guarantees, Indemnifications and Warranties Policies | We generate revenue through our guarantee activities by agreeing to absorb the credit risk associated with certain financial instruments that are owned or held by third parties. In exchange for providing this guarantee, we receive an ongoing guarantee fee that is commensurate with the risks assumed and that will, over the long-term, provide us with cash flows that are expected to exceed the credit-related and administrative expenses of the underlying financial instruments. The profitability of our guarantee activities may vary and will be dependent on our guarantee fee and the actual credit performance of the underlying financial instruments that we have guaranteed. Guarantees to consolidated entities are eliminated in consolidation and therefore are not separately recognized on our consolidated balance sheets. The accounting treatment for guarantees provided to non-consolidated entities or other third parties will depend on whether the guarantee contract qualifies as a financial guarantee. If the guarantee contract qualifies as a financial guarantee and exposes us to incremental credit risk, we will recognize both a guarantee obligation at fair value and the consideration we receive for providing the guarantee, which typically consists of a guarantee asset that represents the fair value of future guarantee fees. As a practical expedient, the measurement of the fair value of the guarantee obligation is set equal to the consideration we receive to provide the guarantee, and no gain or loss is recognized upon issuance of the guarantee. Subsequently, we recognize changes in the fair value of the guarantee asset in current period earnings and amortize the guarantee obligation into earnings as we are released from risk under the guarantee. We also recognize a reserve for guarantee losses when it is probable that a loss has been incurred under the guarantee. If the guarantee contract provided to non-consolidated entities does not qualify as a financial guarantee, that contract will generally be accounted for as a credit derivative and measured at fair value on our consolidated financial statements. |
Credit Enhancements | Attached Credit Enhancements Attached credit enhancements are obtained contemporaneously with, and in contemplation of, the origination of the underlying mortgage loans. These credit enhancements are considered attached, as they effectively travel with the loan upon sale. Attached credit enhancements include primary mortgage insurance that provides us with loan-level protection up to a specified amount. Expected recoveries from attached credit enhancements are considered in determining the allowance for loan losses, resulting in a reduction in the recognized provision for credit losses by the amount of the expected credit enhancement recoveries. See Note 4 for additional information concerning the determination of our loan loss reserves. Freestanding Credit Enhancements Freestanding credit enhancements are contracts that are entered into separately from the origination of the mortgage loans or entered into in conjunction with some other transaction and are legally detachable and separately exercisable. Freestanding credit enhancements are accounted for separately from the underlying mortgage loans. In connection with our securitization activity guarantees, we obtain freestanding credit enhancement through the creation of unguaranteed subordinated securities. In these transactions, the securities that are subordinate to our guarantee provide protection by absorbing first losses prior to us having to perform on our guarantee of the senior securities. We recognize a reserve for guarantee losses when it is probable that a loss has been incurred under our guarantee, which occurs only when losses exceed subordination. Under the ACIS contracts, we pay insurers and reinsurers direct premiums for insurance coverage. Each month, we accrue for our obligation to make such payments for all tranches covered by the ACIS contracts. Expected recoveries for credit losses covered under the ACIS contracts are recognized separately in other assets on our consolidated balance sheets, with an offset to other income when realization of our claims for recovery is deemed probable. We also have various other credit enhancements that provide credit protection on our single-family loans, where we recognize a separate credit enhancement asset in other assets on our consolidated balance sheets upon acquisition of coverage. If the coverage is acquired as part of a transaction in which we also acquire mortgage loans, the credit enhancement asset is recognized based on the relative fair values of the consideration paid for the mortgage loan and the credit enhancement. If the coverage is acquired as a standalone transaction, the credit enhancement asset is recognized at cost. Subsequent accounting for credit enhancement assets and expected recoveries assets are the same as for ACIS transactions. Unsecured Debt with Embedded Credit Enhancements For certain of our unsecured debt issuances, we create a reference pool of mortgage assets (generally loans) to which we currently have credit risk exposure and an associated securitization-like structure with notional credit risk positions. To the extent a specified credit event occurs on the mortgage assets in the reference pool, the outstanding balance of our debt obligations is written down, thereby reducing our future principal and interest payment obligations. The principal types of unsecured debt with embedded credit enhancements are single-family STACR debt notes and multifamily SCR debt notes. Most of our STACR debt notes are recorded as other debt on our consolidated balance sheets and accounted for at amortized cost. When the realized loss events (e.g., third-party foreclosure sale, short sale, or REO disposition) occur on the underlying loans in the reference pool, the STACR debt notes are written down and the benefits are recognized as gains on extinguishment of debt on our consolidated statements of comprehensive income. The structure of Multifamily SCR debt notes is similar to STACR debt notes, although the mortgage assets within the reference pool may be loans or bonds to which we have credit exposure. While our SCR debt notes are recorded as other debt on our consolidated balance sheets, these debt obligations are measured at fair value, as we elected the fair value option for them. Fair value changes are recorded in other income in our consolidated statement of comprehensive income. Consolidated Debt with Structural Credit Enhancements Similar to our non-consolidated VIEs, we obtain credit enhancement in certain of our consolidated senior subordinate and other securitization products through the creation of unguaranteed subordinated securities. These unguaranteed subordinated securities will absorb first losses on the underlying loans prior to us performing pursuant to our guarantee obligation. The unguaranteed subordinated debt securities held by third parties are recorded as debt of consolidated trusts on our consolidated balance sheets and accounted for at amortized cost. When losses are realized on the loans underlying the securities, the subordinated debt is written down and the benefits are recognized as gains on extinguishment of debt on our consolidated statements of comprehensive income. |
Investments in Securities | We currently classify and account for our securities as either available-for-sale or trading. As of December 31, 2017 and 2016, we did 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, net of income taxes and other gains (losses) on investment securities recognized in earnings, respectively. See Note 15 for more information on how we determine the fair value of securities. We generally record purchases and sales of securities on the trade date when the related forward commitments are exempt from the accounting guidance for derivatives. Alternatively, we record purchases and sales of securities on the expected settlement date, with a corresponding derivative recorded on the trade date, when the related forward commitments are not exempt from the accounting guidance for derivatives. We include interest on securities in our consolidated statements of comprehensive income. For most of our securities, interest income is recognized using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts and other basis adjustments, are amortized into interest income over the contractual lives of the securities. For certain securities, interest income is recognized using the prospective effective interest method. We apply this method to securities that: n Can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment; n Are not of high credit quality at acquisition; or n Have been determined to be other-than-temporarily impaired. Under this method, we recognize as interest income, over the life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. For securities classified as trading or available-for-sale, we classify the cash flows as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities. Impairment Recognition on Investments in Securities We evaluate available-for-sale securities in an unrealized loss position as of the end of each quarter to determine whether the decline in value is other-than-temporary. An unrealized loss exists when the fair value of an individual lot is less than its amortized cost basis. As discussed further below, certain other-than-temporary impairment losses are recognized in earnings. Other-than-temporary impairment is considered to have occurred if the fair value of the security lot is less than its amortized cost basis and we either intend to sell the security or more likely than not will be required to sell the security lot prior to recovery of its amortized cost basis. Under these circumstances, 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 amortized cost basis, 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 its amortized cost basis. The present value of cash flows expected to be collected represents our estimate of future contractual cash flows that we expect to collect, discounted at the security’s original effective interest rate or, if applicable, the effective interest rate determined based on significantly improved cash flows subsequent to a prior other-than-temporary impairment. The evaluation of whether unrealized losses on available-for-sale securities are other-than-temporary requires significant management judgments, assumptions and consideration of numerous factors. We perform an evaluation on a security lot 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. Realized Gains and Losses on Sales of Available-For-Sale 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. |
Debt Securities Issued | With the exception of certain debt for which we elected the fair value option or designated in a qualifying fair value hedge relationship, our debt is reported at amortized cost. Deferred items, including premiums, discounts, issuance costs and hedging-related basis adjustments, are reported as a component of total debt, net. 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 debt that contains embedded derivatives, including certain STACR and SCR debt notes. For additional information on STACR and SCR debt notes, see Note 6 . Changes in the fair value of these debt obligations are recorded in other income, with any upfront costs and fees incurred or received in exchange for the issuance of the debt being recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. For additional information on our election of the fair value option, see Note 15 . When we repurchase or call outstanding debt securities, we recognize the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of gains (losses) on extinguishment of 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 as incurred 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 into interest expense over the life of the modified debt security using the effective interest method and fees paid to third parties are expensed as incurred. 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. |
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 not in qualifying fair value hedge relationships are recorded as derivative gains (losses) in our consolidated statements of comprehensive income. 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. We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We generally elect to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in earnings. 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. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | On October 1, 2017, we adopted accounting guidance that modifies the presentation of hedge accounting results disclosed in our consolidated statements of comprehensive income and in the notes to the consolidated financial statements. For qualifying fair value hedge relationships, the modifications include presenting all changes in the fair value of the derivative hedging instrument in the same consolidated statements of comprehensive income line used to present the earnings effect of the hedged item. For qualifying fair value hedge relationships, the modifications also include separate disclosures of cumulative basis adjustments and their impact to the hedged item’s carrying value. Fair Value Hedges On February 2, 2017, we started applying fair value hedge accounting to certain single-family mortgage loans where we hedge the changes in fair value of these loans attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. The hedge period is one day, and we re-balance our hedge relationships on a daily basis. In addition, on November 30, 2017, we started applying fair value hedge accounting to certain issuances of debt where we hedge the changes in fair value of the debt attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. We apply hedge accounting to qualifying hedge relationships. A qualifying hedge relationship exists when changes in the fair value of a derivative hedging instrument are expected to be highly effective in offsetting changes in the fair value of the hedged item attributable to the risk being hedged during the term of the hedge relationship. No amounts have been excluded from the assessment of hedge effectiveness. To assess hedge effectiveness, we use a statistical regression analysis. At inception of the hedge relationship, we prepare formal contemporaneous documentation of our risk management objective and strategies for undertaking the hedge. Beginning on October 1, 2017, due to the adoption of amended hedge accounting guidance, if a hedge relationship qualifies for fair value hedge accounting, all changes in fair value of the derivative hedging instrument, including interest accruals, are recognized in the same consolidated statements of comprehensive income line item used to present the earnings effect of the hedged item. Therefore, changes in the fair value of the hedged item, mortgage loans and debt, attributable to the risk being hedged are recognized in interest income - mortgage loans and interest expense, respectively, along with the changes in the fair value of the respective derivative hedging instruments. Prior to October 1, 2017, if the hedge relationship qualified for hedge accounting, changes in fair value of the derivative hedging instrument and changes in the fair value of the hedged item attributable to the risk being hedged were recognized in other income (loss) and interest accruals on the derivative hedging instrument were included in derivative gains (losses). Changes in the fair value of the hedged item attributable to the risk being hedged are recognized as a cumulative basis adjustment against the mortgage loans and debt. The cumulative basis adjustments are amortized to the same consolidated statements of comprehensive income line item used to present the changes in fair value of the hedged item using the effective interest method considering the contractual terms of the hedged item, with amortization beginning no later than the period in which hedge accounting was discontinued. Cash Flow Hedges 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. Amounts reclassified from AOCI are recorded in interest expense. |
Derivatives, Offsetting Fair Value Amounts, Policy | Offsetting of Financial Assets and Liabilities When we receive cash collateral, we recognize the amount received along with a corresponding obligation to return the collateral. When we post cash collateral, we derecognize the amount posted along with a corresponding asset for our right to receive the return of the collateral. We generally do not recognize or derecognize collateral received or pledged in the form of securities as the transferor in such arrangements does not relinquish effective control over the securities transferred. |
Repurchase and Resale Agreements and Dollar Roll Transactions | Securities Purchased Under Agreements to Resell As an investor, we enter into arrangements to purchase securities under agreements to subsequently resell the identical or substantially the same securities to our counterparty. Our counterparties to these transactions are required to pledge the purchased securities as collateral for their obligation to repurchase those securities at a later date. While such transactions involve the legal transfer of securities, they are accounted for as secured financings because the transferor does not relinquish effective control over the securities transferred. Although it is our practice not to repledge assets held as collateral, these agreements may allow us to repledge all or a portion of the collateral. 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 in an effort to manage our exposure to losses. Beginning in 2017, we began to utilize the GSD/FICC as a clearinghouse to transact many of our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. As a clearing member of GSD/FICC, we are required to post initial and variation margin payments and are exposed to the counterparty credit risk of GSD/FICC (including its clearing members). Although our membership provides us with the right to offset certain of our open receivable and payable positions by collateral type, we have elected not to offset these positions within our condensed consolidated balance sheets. In the event a clearing member fails and causes losses to the GSD/FICC clearing system, we could be subject to the loss of any or the entire margin that we have posted to the GSD/FICC. Moreover, our exposure could exceed that amount, as members are generally require to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the GSD/FICC may execute in the future. Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are effectively collateralized borrowings where we sell securities with an agreement to repurchase such securities at a future date. We are required to pledge the sold securities to the counterparties to these transactions as collateral for our obligation to repurchase these securities at a later date. Similar to the securities purchased under agreements to resell transactions, these transactions involve the legal transfer of securities. However, they are accounted for as secured financings because they require the identical or substantially the same securities to be subsequently repurchased. These agreements may allow our counterparties to repledge all or a portion of the collateral. |
Stockholders' Equity | 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. The dividends we have paid to Treasury on the senior preferred stock have been declared by, and paid at the direction of, the Conservator, acting as successor to the rights, titles, powers and privileges of the Board. 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. Total dividends paid in cash during 2017 , 2016 and 2015 at the direction of the Conservator were $10.9 billion , $5.0 billion and $5.5 billion , respectively. See Note 2 for a discussion of our net worth sweep dividend. 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, unless it is deemed probable that the forecasted transactions will not occur. Over the next 12 months, we estimate that approximately $111 million , net of taxes, of the $0.4 billion of cash flow hedge losses in AOCI at December 31, 2017 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 16 years. 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 shares associated with the warrant are 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, 2017 , 2016 and 2015 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. |
Stockholders' Equity Note, Redeemable Preferred Stock, Issue, Policy | 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. 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. |
Earnings Per Common Share | Under our prior stock-based compensation plans we issued participating securities related to options and RSUs 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: n Vested options to purchase common stock; and n Vested RSUs 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. These shares are included since the warrant is unconditionally exercisable by the holder at a minimal cost. 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 stock equivalent shares outstanding: n Weighted average shares related to stock options if the average market price during the period exceeds the exercise price; and n The weighted-average of RSUs. 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. |
Segment Reporting | We have three reportable segments, which are based on the type of business activities each performs - Single-family Guarantee, Multifamily and Capital Markets. The chart below provides a summary of our three reportable segments and the All Other category. Segment/Category Description Activities/Items Financial Performance Measurement Basis Single-family Guarantee The Single-family Guarantee segment reflects results from our purchase, securitization and guarantee of single-family loans and the management of single-family mortgage credit risk. In most instances, we securitize the loans and guarantee the payment of principal and interest on the mortgage-related securities in exchange for guarantee fees. Segment Earnings for this segment consist primarily of guarantee fee income, less credit-related expenses, credit risk transfer expenses, administrative expenses, allocated funding costs and amounts related to net float income or expenses. • Purchase and guarantee of single-family mortgage loans • Contribution to GAAP net income (loss) • Credit risk transfer transactions • Loss mitigation activities • Managing foreclosure and REO activities • Tax expense/benefit • Allocated debt costs and administrative expenses Segment/Category Description Activities/Items Financial Performance Measurement Basis Multifamily The Multifamily segment reflects results from our purchase, sale, securitization and guarantee of multifamily loans and securities, our investments in those loans and securities and the management of multifamily mortgage credit risk and market spread risk. Our primary business model is to purchase multifamily loans for aggregation and then securitization through issuance of multifamily K Certificates and SB Certificates. We also issue and guarantee other securitization products, issue other credit risk transfer products and provide other mortgage-related guarantees. Segment Earnings for this segment consist primarily of returns on assets related to multifamily investment activities and guarantee fee income, less credit-related expenses, administrative expenses and allocated funding costs. • Multifamily loans held-for-sale and associated securitization activities (i.e., K Certificates and SB Certificates) • Contribution to GAAP comprehensive income (loss) • Investments in CMBS and multifamily loans held-for-investment • Other mortgage-related guarantees • Other securitization products • Other credit risk transfer products • Tax expense/benefit • Allocated debt costs and administrative expenses Capital Markets The Capital Markets segment reflects results from managing the company’s mortgage-related investments portfolio (excluding Multifamily segment investments, single-family seriously delinquent loans and the credit risk of single-family performing and reperforming loans), treasury function, single-family securitization activities and interest-rate risk. Segment Earnings for this segment consist primarily of the returns on these investments, less the related funding, hedging and administrative expenses. • Investments in single-family mortgage-related securities and single-family performing loans and reperforming loans • Contribution to GAAP comprehensive income (loss) • All other traded non-mortgage related instruments and securities • Debt issuances • Interest-rate risk management • Guarantee buy-ups, net of execution gains/losses • Cash and liquidity management • Settlements, including legal settlements, relating to non-agency mortgage-related securities • Tax expense/benefit • Allocated administrative expenses All Other The All Other category consists of material corporate-level activities that are infrequent in nature and based on decisions outside the control of the management of our reportable segments. • Tax settlements, as applicable N/A • Legal settlements, as applicable • Tax expense/benefit associated with changes in the deferred tax asset valuation allowance or revaluation associated with a statutory tax rate change • FHFA-mandated termination of our pension plan |
Fair Value Measurements | 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 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 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 levels of the fair value hierarchy are defined as follows in priority order: n Level 1 - inputs to the valuation techniques are based on quoted prices in active markets for identical assets or liabilities. n Level 2 - inputs to the valuation techniques are based on observable inputs other than quoted prices in active markets for identical assets or liabilities. n Level 3 - one or more inputs to the valuation techniques are unobservable and significant to the fair value measurement. 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. |
Income Taxes | Income Tax Expense Total income tax expense includes: n Current income tax expense, which represents the amount of federal tax currently payable to or receivable from the Internal Revenue Service, including interest and penalties and amounts accrued for unrecognized tax benefits, if any, and; n Deferred income tax expense, which represents the net change in the deferred tax asset or liability balance during the year, including any change in the valuation allowance. Income tax expense excludes the tax effects related to adjustments recorded to other comprehensive income, such as unrealized gains and losses on available-for-sale securities. The Tax Cuts and Jobs Act enacted in December 2017 reduced the statutory corporate income tax rate from 35% to 21% . Although not effective until January 1, 2018, accounting rules require that we measure our net deferred tax asset using the reduced rate in the period in which the legislation was enacted. Therefore, we reduced our net deferred tax asset by $5.4 billion , with a corresponding charge to deferred income tax expense. Deferred Tax Assets, Net 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, if any. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. The realization of our net deferred tax assets is dependent upon the generation of sufficient taxable income. We recognize a tax position taken or expected to be taken (and any associated interest and penalties) if 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. |
Securitization Activities and26
Securitization Activities and Consolidation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Table - Schedule of Various Interest Entities | The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on our consolidated balance sheets. (In millions) As of December 31, 2017 As of December 31, 2016 Consolidated Balance Sheet Line Item Assets: Cash and cash equivalents $— $— Restricted cash and cash equivalents 518 9,431 Securities purchased under agreements to resell 16,750 13,550 Mortgage loans held-for-investment 1,774,286 1,690,218 Accrued interest receivable 5,747 5,454 Other assets 2,738 3,827 Total assets of consolidated VIEs $1,800,039 $1,722,480 Liabilities: Accrued interest payable $5,028 $4,846 Debt, net 1,720,996 1,648,683 Other liabilities 2 — Total liabilities of consolidated VIEs $1,726,026 $1,653,529 The following table 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 with which we were involved in the design and creation and have a significant continuing involvement, as well as our maximum exposure to loss. (In millions) As of December 31, 2017 As of December 31, 2016 Assets and Liabilities Recorded on our Consolidated Balance Sheets (1) Assets: Investments in securities $51,494 $58,995 Accrued interest receivable 233 254 Derivative assets, net 7 — Other assets 2,591 1,708 Liabilities: Other liabilities 2,489 1,604 Maximum Exposure to Loss (2)(3) $200,196 $150,227 Total Assets of Non-Consolidated VIEs (3) $232,762 $175,713 (1) Includes our variable interests in REMICs and Stripped Giant PCs, K Certificates, SB Certificates, certain senior subordinate securitization structures and certain other securitization products. (2) Our maximum exposure to loss includes the guaranteed UPB of assets held by the non-consolidated VIEs as well as the UPB of unguaranteed securities that we acquired from these securitization transactions. (3) Our maximum exposure to loss and total assets of non-consolidated VIEs exclude our investments in and obligations to REMICs and Stripped Giant PCs, because we already consolidate the underlying collateral of these trusts on our consolidated balance sheets. |
Mortgage Loans and Loan Loss 27
Mortgage Loans and Loan Loss Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Table - Mortgage Loans | The table below provides details of the loans on our consolidated balance sheets as of December 31, 2017 and 2016 . December 31, 2017 December 31, 2016 (In millions) Held by Freddie Mac Held by Total Held by Freddie Mac Held by Total Held-for sale: Single-family $17,039 $— $17,039 $2,092 $— $2,092 Multifamily 20,537 — 20,537 16,544 — 16,544 Total UPB 37,576 — 37,576 18,636 — 18,636 Cost basis and fair value adjustments, net (2,813 ) — (2,813 ) (548 ) — (548 ) Total held-for-sale loans, net 34,763 — 34,763 18,088 — 18,088 Held-for-investment: Single-family 51,893 1,742,736 1,794,629 83,040 1,659,591 1,742,631 Multifamily 17,702 3,747 21,449 25,873 3,048 28,921 Total UPB 69,595 1,746,483 1,816,078 108,913 1,662,639 1,771,552 Cost basis adjustments (2,148 ) 31,490 29,342 (3,755 ) 30,549 26,794 Allowance for loan losses (5,279 ) (3,687 ) (8,966 ) (10,461 ) (2,970 ) (13,431 ) Total held-for-investment loans, net 62,168 1,774,286 1,836,454 94,697 1,690,218 1,784,915 Total loans, net $96,931 $1,774,286 $1,871,217 $112,785 $1,690,218 $1,803,003 |
Table - Recorded Investment of Held-For-Invstment Mortgage Loans, by LTV Ratio and Credit Classification | The table below presents the recorded investment of single-family held-for-investment loans by current LTV ratios. Our current LTV ratios are estimates based on available data through the end of each respective period presented. As of December 31, 2017 As of December 31, 2016 Current LTV Ratio Total Current LTV Ratio Total (In millions) ≤ 80 > 80 to 100 > 100 (1) ≤ 80 > 80 to 100 > 100 (1) 20 and 30-year or more, amortizing fixed-rate (2) $1,240,224 $214,177 $13,303 $1,467,704 $1,120,722 $236,111 $30,063 $1,386,896 15-year amortizing fixed-rate (2) 270,266 7,351 381 277,998 274,967 11,016 887 286,870 Adjustable-rate 48,596 2,963 28 51,587 52,319 2,955 85 55,359 Alt-A, interest-only and option ARM 21,013 4,256 1,429 26,698 26,293 9,392 4,634 40,319 Total single-family loans $1,580,099 $228,747 $15,141 $1,823,987 $1,474,301 $259,474 $35,669 $1,769,444 (1) The serious delinquency rate for the total of single-family held-for-investment mortgage loans with current LTV ratios in excess of 100% was 8.43% and 6.80% as of December 31, 2017 and 2016 , respectively. (2) The majority of our loan modifications result in new terms that include fixed interest rates after modification. As of December 31, 2017 and 2016 , we have categorized UPB of approximately $22.2 billion and $32.0 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. The following table presents the recorded investment in our multifamily held-for-investment loans, by credit quality indicator as of December 31, 2017 and 2016 . The multifamily credit quality indicator is based on available data through the end of each period presented. These indicators involve significant management judgment. (In millions) As of December 31, 2017 As of December 31, 2016 Credit risk profile by internally assigned grade: (1) Pass $20,963 $27,830 Special mention 301 502 Substandard 169 570 Doubtful — — Total $21,433 $28,902 (1) A loan categorized as: "Pass" is current and adequately protected by the current financial strength and debt service capacity of the borrower; In 2017, "Special mention" has administrative issues that may affect future repayment prospects but do not have current credit weaknesses, while in 2016, "Special mention" has signs of potential financial weakness; "Substandard" has a well-defined weakness that jeopardizes the timely full repayment; and "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions. |
Table - Payment Status of Mortgage Loans | The following tables present the recorded investment of our single-family and multifamily loans, held-for-investment, by payment status. As of December 31, 2017 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure (1) Total Non-accrual Single-family: 20 and 30-year or more, amortizing fixed-rate $1,431,342 $18,297 $5,660 $12,405 $1,467,704 $12,401 15-year amortizing fixed-rate 275,864 1,288 290 556 277,998 556 Adjustable-rate 50,915 383 84 205 51,587 205 Alt-A, interest-only and option ARM 23,235 1,297 509 1,657 26,698 1,656 Total single-family 1,781,356 21,265 6,543 14,823 1,823,987 14,818 Total multifamily 21,414 — — 19 21,433 64 Total single-family and multifamily $1,802,770 $21,265 $6,543 $14,842 $1,845,420 $14,882 As of December 31, 2016 (In millions) Current One Two Three Months or (1) Total Non-accrual Single-family: 20 and 30-year or more, amortizing fixed-rate $1,354,511 $16,645 $4,865 $10,875 $1,386,896 $10,868 15-year amortizing fixed-rate 285,373 1,010 178 309 286,870 309 Adjustable-rate 54,738 354 77 190 55,359 190 Alt-A, interest-only and option ARM 35,994 1,748 650 1,927 40,319 1,927 Total single-family 1,730,616 19,757 5,770 13,301 1,769,444 13,294 Total multifamily 28,902 — — — 28,902 89 Total single-family and multifamily $1,759,518 $19,757 $5,770 $13,301 $1,798,346 $13,383 (1) Includes $4.1 billion and $5.3 billion of loans that were in the process of foreclosure as of December 31, 2017 and 2016 , respectively. |
Table - Delinquency Rates | The table below summarizes the delinquency rates of loans within our single-family credit guarantee and multifamily mortgage portfolios. (Dollars in millions) December 31, 2017 December 31, 2016 Single-family (1) Non-credit-enhanced portfolio: Serious delinquency rate 1.16 % 1.02 % Total number of seriously delinquent loans 81,668 77,662 Credit-enhanced portfolio: (2) Primary mortgage insurance: Serious delinquency rate 1.43 % 1.46 % Total number of seriously delinquent loans 23,275 21,460 Other credit protection: (3) Serious delinquency rate 0.53 % 0.43 % Total number of seriously delinquent loans 16,259 9,455 Total Single-family Serious delinquency rate 1.08 % 1.00 % Total number of seriously delinquent loans 116,662 107,170 Multifamily (4) Non-credit-enhanced portfolio: Delinquency rate 0.06 % 0.04 % UPB of delinquent loans $24 $19 Credit-enhanced portfolio: Delinquency rate 0.01 % 0.02 % UPB of delinquent loans $16 $37 Total Multifamily Delinquency rate 0.02 % 0.03 % UPB of delinquent loans $40 $56 (1) Serious delinquencies on single-family loans underlying certain REMICs, other securitization products and other mortgage-related guarantees may be reported on a different schedule due to variances in industry practice. (2) The credit enhanced categories are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and other credit protection. (3) Consists of single-family loans covered by financial arrangements (other than primary mortgage insurance) that are designed to reduce our credit risk exposure. See Note 6 for additional information on our credit enhancements. (4) Multifamily delinquency performance is based on the UPB of loans that are two monthly payments or more past due or those in the process of foreclosure. |
Table - Detail of Loan Loss Reserves | The table below presents our loan loss reserves activity. Year Ended December 31, 2017 2016 Allowance for Loan Losses Reserve for Total Allowance for Loan Losses Reserve for Total (In millions) Held by Freddie Mac Held By Held by Freddie Mac Held By Single-family: Beginning balance $10,443 $2,968 $52 $13,463 $12,517 $2,775 $56 $15,348 Provision (benefit) for credit losses (1,447 ) 1,350 — (97 ) (1,384 ) 599 4 (781 ) Charge-offs (1) (4,939 ) (108 ) (4 ) (5,051 ) (1,757 ) (173 ) (8 ) (1,938 ) Recoveries 419 6 — 425 487 10 — 497 Transfers, net (2) 540 (540 ) — — 248 (248 ) — — Other (3) 235 4 — 239 332 5 — 337 Ending balance $5,251 $3,680 $48 $8,979 $10,443 $2,968 $52 $13,463 Multifamily: Beginning balance $18 $2 $15 $35 $38 $1 $20 $59 Provision (benefit) for credit losses 15 4 (6 ) 13 (17 ) — (5 ) (22 ) Charge-offs (1) (4 ) — — (4 ) (2 ) — — (2 ) Recoveries — — — — — — — — Transfers, net (2) (1 ) 1 — — (1 ) 1 — — Other (3) — — — — — — — — Ending balance $28 $7 $9 $44 $18 $2 $15 $35 Total: Beginning balance $10,461 $2,970 $67 $13,498 $12,555 $2,776 $76 $15,407 Provision (benefit) for credit losses (1,432 ) 1,354 (6 ) (84 ) (1,401 ) 599 (1 ) (803 ) Charge-offs (1) (4,943 ) (108 ) (4 ) (5,055 ) (1,759 ) (173 ) (8 ) (1,940 ) Recoveries 419 6 — 425 487 10 — 497 Transfers, net (2) 539 (539 ) — — 247 (247 ) — — Other (3) 235 4 — 239 332 5 — 337 Ending balance $5,279 $3,687 $57 $9,023 $10,461 $2,970 $67 $13,498 (1) The year ended December 31, 2016 does not include lower-of-cost-or-fair-value adjustments and other expenses related to property taxes and insurance recognized when we transfer loans from held-for-investment to held-for-sale, which totaled $1.2 billion . The year ended December 31, 2017 includes charge-offs of $3.8 billion related to the transfer of loans from held-for-investment to held-for-sale. (2) Relates to removal of delinquent single-family loans from consolidated trusts and resecuritization after such removal . (3) Primarily includes capitalization of past due interest on modified loans |
Table - TDR Activity, by Segment | The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs during the years ended December 31, 2017 and 2016 , 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. Year Ended December 31, 2017 2016 (Dollars in millions) Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Single-family: (1) 20 and 30-year or more, amortizing fixed-rate 33,745 $4,818 35,503 $5,092 15-year amortizing fixed-rate 4,569 356 4,623 338 Adjustable-rate 892 128 969 140 Alt-A, interest-only and option ARM 2,784 495 3,115 548 Total single-family 41,990 5,797 44,210 6,118 Multifamily 1 — 2 8 Total 41,991 $5,797 44,212 $6,126 (1) The pre-TDR recorded investment for single-family loans initially classified as TDR during the years ended December 31, 2017 and 2016 was $5.8 billion and $6.2 billion , respectively. |
Table - Payment Defaults of Completed TDR Modifications, by Segment | The table below presents the volume of our TDR modifications that experienced payment defaults (i.e., loans that became two months delinquent or completed a loss event) during the applicable periods and had completed a modification during the year preceding the payment default. The table presents loans based on their original product category before modification. Year Ended December 31, 2017 2016 (Dollars in millions) Number of Loans Post-TDR Recorded Investment (1) Number of Loans Post-TDR Recorded Investment (1) Single-family 20 and 30-year or more, amortizing fixed-rate 13,973 $2,231 16,139 $2,520 15-year amortizing fixed-rate 720 57 813 66 Adjustable-rate 225 33 277 41 Alt-A, interest-only and option ARM 1,254 253 1,535 305 Total single-family 16,172 $2,574 18,764 $2,932 Multifamily (2) — $— — $— (1) 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. (2) The post-TDR recorded investment is not meaningful. |
Table - Individually Impaired Loans | The tables below present the UPB, recorded investment, the related allowance for loan losses, average recorded investment and interest income recognized for individually impaired loans. Balance at December 31, 2017 Balance at December 31, 2016 (In millions) UPB Recorded Investment Associated Allowance UPB Recorded Investment Associated Allowance Single-family — With no specific allowance recorded: (1) 20 and 30-year or more, amortizing fixed-rate $3,768 $2,908 N/A $4,963 $3,746 N/A 15-year amortizing fixed-rate 24 21 N/A 31 26 N/A Adjustable-rate 259 256 N/A 292 289 N/A Alt-A, interest-only and option ARM 1,558 1,297 N/A 1,935 1,561 N/A Total with no specific allowance recorded 5,609 4,482 N/A 7,221 5,622 N/A With specific allowance recorded: (2) 20 and 30-year or more, amortizing fixed-rate 47,897 46,783 ($5,505 ) 67,853 66,143 ($9,678 ) 15-year amortizing fixed-rate 752 757 (24 ) 847 851 (25 ) Adjustable-rate 232 228 (14 ) 319 312 (19 ) Alt-A, interest-only and option ARM 7,407 6,987 (1,087 ) 12,699 12,105 (2,258 ) Total with specific allowance recorded 56,288 54,755 (6,630 ) 81,718 79,411 (11,980 ) Combined single-family: 20 and 30-year or more, amortizing fixed-rate 51,665 49,691 (5,505 ) 72,816 69,889 (9,678 ) 15-year amortizing fixed-rate 776 778 (24 ) 878 877 (25 ) Adjustable-rate 491 484 (14 ) 611 601 (19 ) Alt-A, interest-only and option ARM 8,965 8,284 (1,087 ) 14,634 13,666 (2,258 ) Total single-family 61,897 59,237 (6,630 ) 88,939 85,033 (11,980 ) Multifamily — With no specific allowance recorded 106 97 N/A 321 308 N/A With specific allowance recorded 35 35 (7 ) 44 42 (9 ) Total multifamily 141 132 (7 ) 365 350 (9 ) Total single-family and multifamily $62,038 $59,369 ($6,637 ) $89,304 $85,383 ($11,989 ) Referenced footnotes are included after the next table. Year Ended December 31, 2017 2016 (In millions) Average Recorded Investment Interest Income Recognized Interest Income Recognized On Cash Basis (3) Average Recorded Investment Interest Income Recognized Interest Income Recognized On Cash Basis (3) Single-family — With no specific allowance recorded: (1) 20 and 30-year or more, amortizing fixed-rate $3,556 $399 $16 $4,033 $447 $14 15-year amortizing fixed-rate 25 1 — 33 5 — Adjustable rate 292 11 — 259 9 — Alt-A, interest-only and option ARM 1,471 110 5 1,417 117 3 Total with no specific allowance recorded 5,344 521 21 5,742 578 17 With specific allowance recorded: (2) 20 and 30-year or more, amortizing fixed-rate 44,057 2,513 248 68,402 2,668 251 15-year amortizing fixed-rate 599 32 6 884 39 7 Adjustable rate 261 9 3 384 14 3 Alt-A, interest-only and option ARM 7,366 378 33 12,916 437 34 Total with specific allowance recorded 52,283 2,932 290 82,586 3,158 295 Combined single-family: 20 and 30-year or more, amortizing fixed-rate 47,613 2,912 264 72,435 3,115 265 15-year amortizing fixed-rate 624 33 6 917 44 7 Adjustable rate 553 20 3 643 23 3 Alt-A, interest-only and option ARM 8,837 488 38 14,333 554 37 Total single-family 57,627 3,453 311 88,328 3,736 312 Multifamily — With no specific allowance recorded 286 9 3 356 15 4 With specific allowance recorded 45 1 1 63 3 2 Total multifamily 331 10 4 419 18 6 Total single-family and multifamily $57,958 $3,463 $315 $88,747 $3,754 $318 (1) Individually impaired 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. (2) Consists primarily of loans classified as TDRs. (3) Consists of income recognized during the period related to loans on non-accrual status. |
Table - Net Investment in Mortgage Loans | The table below presents our allowance for loan losses and our recorded investment in loans, held-for-investment, by impairment evaluation methodology. December 31, 2017 December 31, 2016 (In millions) Single-family Multifamily Total Single-family Multifamily Total Recorded investment: Collectively evaluated $1,764,750 $21,301 $1,786,051 $1,684,411 $28,552 $1,712,963 Individually evaluated 59,237 132 59,369 85,033 350 85,383 Total recorded investment 1,823,987 21,433 1,845,420 1,769,444 28,902 1,798,346 Ending balance of the allowance for loan losses: Collectively evaluated (2,301 ) (28 ) (2,329 ) (1,431 ) (11 ) (1,442 ) Individually evaluated (6,630 ) (7 ) (6,637 ) (11,980 ) (9 ) (11,989 ) Total ending balance of the allowance (8,931 ) (35 ) (8,966 ) (13,411 ) (20 ) (13,431 ) Net investment in loans $1,815,056 $21,398 $1,836,454 $1,756,033 $28,882 $1,784,915 |
Guaranee Activities (Tables)
Guaranee Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Table - Financial Guarantees | The table below shows our maximum exposure, recognized liability and maximum remaining term of our recognized guarantees to non-consolidated VIEs and other third parties. This table does not include our unrecognized guarantees, such as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. The maximum exposure disclosed in the table 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, including possible recoveries under credit enhancement arrangements. See Note 6 for additional information on our credit enhancement arrangements. As of December 31, 2017 As of December 31, 2016 ( Dollars in millions , terms in years) Maximum (1) Recognized (2) Maximum Maximum (1) Recognized (2) Maximum Single-Family: Securitization activity guarantees $10,817 $120 40 $5,016 $22 40 Other mortgage-related guarantees 6,264 190 31 6,713 206 32 Total single-family $17,081 $310 $11,729 $228 Multifamily: Securitization activity guarantees $188,768 $2,305 40 $145,211 $1,510 39 Other mortgage-related guarantees 9,888 466 36 9,732 473 34 Total multifamily $198,656 $2,771 $154,943 $1,983 Other guarantees measured at fair value $9,661 $141 28 $6,396 $127 29 (1) The maximum exposure represents the contractual amounts that could be lost 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. For other guarantees measured at fair value, this amount represents the notional value if it relates to our market value guarantees or guarantees of third party derivative instruments; or the UPB if it relates to a guarantee of a mortgage-related asset. For certain of our other guarantees measured at fair value, our exposure may be unlimited. We generally reduce our exposure to these guarantees with unlimited exposure through separate contracts with third parties. (2) For securitization activity guarantees and other mortgage-related guarantees, this amount represents the guarantee obligation on our consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $57 million and $67 million as of December 31, 2017 and 2016 , respectively, and is included within other liabilities on our consolidated balance sheets. For other guarantees measured at fair value, this amount represents the fair value of the contract. |
Credit Enhancements (Tables)
Credit Enhancements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Credit Enhancements [Abstract] | |
Attached Credit Enhancements | The table below presents the total current and protected UPB and maximum coverage provided by our attached credit enhancements. For information about counterparty credit risk associated with mortgage insurers, see Note 14 . As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: Primary mortgage insurance $334,189 $85,429 $291,217 $74,345 (1) Underlying loans may be covered by more than one form of credit enhancement, including freestanding credit enhancements and debt with embedded credit enhancements. (2) Represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. |
Freestanding Credit Enhancements | The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to our single-family and multifamily freestanding credit enhancements. As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: Subordination (non-consolidated VIEs) $8,953 $1,734 $2,701 $522 ACIS 617,730 6,736 453,670 5,355 Other (3) 15,975 6,479 12,827 7,373 Total Single-family 14,949 13,250 Multifamily: Subordination (non-consolidated VIEs) 187,299 30,689 143,802 24,522 Other (4) 1,833 726 1,159 701 Total Multifamily 31,415 25,223 Total Single-family and Multifamily freestanding credit enhancements $46,364 $38,473 (1) Underlying loans may be covered by more than one form of credit enhancement, including attached credit enhancements and debt with embedded credit enhancements. For subordination, total current and protected UPB represents the UPB of the guaranteed securities. (2) For subordination, maximum coverage represents the UPB of the securities that are subordinate to our guarantee and held by third parties. For all other freestanding credit enhancements, maximum coverage represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. (3) Includes seller indemnification, Deep MI CRT, lender recourse and indemnification agreements, pool insurance, HFA indemnification, and other credit enhancements. (4) Consists of multifamily HFA indemnification and loss reimbursement agreements with third parties obtained in certain of our Q Certificate transactions. |
Debt with Embedded Credit Enhancement | The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to debt with embedded credit enhancements. As of December 31, 2017 As of December 31, 2016 (In millions) Total Current and Protected UPB (1) Maximum Coverage (2) Total Current and Protected UPB (1) Maximum Coverage (2) Single-family: STACR debt notes $604,356 $17,788 $427,978 $14,507 Subordination (consolidated VIEs) 3,330 179 1,287 83 Total Single-family 17,967 14,590 Multifamily: SCR debt notes 2,732 137 1,898 95 Subordination (consolidated VIEs) 1,800 180 — — Total Multifamily 317 95 Total Single-family and Multifamily debt with embedded credit enhancements $18,284 $14,685 (1) Underlying loans may be covered by more than one form of credit enhancement, including attached credit enhancements and freestanding credit enhancements. For STACR debt notes and SCR debt notes, total current and protected UPB represents the UPB of the assets included in the reference pool. For subordination, total current and protected UPB represents the UPB of the guaranteed securities. (2) For STACR debt notes and SCR debt notes, maximum coverage amount represents the outstanding balance of the STACR debt notes and SCR debt notes held by third parties. For subordination, maximum coverage amount represents the UPB of the securities that are subordinate to our guarantee and held by third parties. |
Investments in Securities (Tabl
Investments in Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Table - Investments in Securities | The table below summarizes the fair values of our investments in debt securities by classification. (In millions) As of December 31, 2017 As of December 31, 2016 Trading securities $40,721 $44,790 Available-for-sale securities 43,597 66,757 Total $84,318 $111,547 |
Table - Trading Securities | The table below presents the estimated fair values by major security type for our securities classified as trading. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities. (In millions) As of December 31, 2017 As of December 31, 2016 Mortgage-related securities: Freddie Mac $12,235 $15,343 Other agency 3,574 8,161 Non-agency RMBS 750 113 Non-agency CMBS 1,343 36 Total mortgage-related securities 17,902 23,653 Non-mortgage-related securities 22,819 21,137 Total fair value of trading securities $40,721 $44,790 |
Table - Available-For-Sale Securities | The table below presents the amortized cost, gross unrealized gains and losses, and fair value by major security type for our securities classified as available-for-sale. As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $35,433 $499 $— ($462 ) $35,470 Other agency 2,008 56 — (11 ) 2,053 Non-agency RMBS 3,012 927 (5 ) (1 ) 3,933 Non-agency CMBS 1,773 22 (9 ) (2 ) 1,784 Obligations of states and political subdivisions 352 5 — — 357 Total available-for-sale securities $42,578 $1,509 ($14 ) ($476 ) $43,597 As of December 31, 2016 Amortized Cost Gross Gross Unrealized Losses Fair Value (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $43,671 $563 $— ($582 ) $43,652 Other agency 4,127 119 — (25 ) 4,221 Non-agency RMBS 10,606 1,271 (62 ) (18 ) 11,797 Non-agency CMBS 6,288 160 (3 ) (23 ) 6,422 Obligations of states and political subdivisions 657 8 — — 665 Total available-for-sale securities $65,349 $2,121 ($65 ) ($648 ) $66,757 (1) Represents the gross unrealized losses for securities for which we have previously recognized other-than-temporary impairment in earnings. (2) Represents the gross unrealized losses for securities for which we have not previously recognized other-than-temporary impairment in earnings. |
Table - Available-For-Sale Securities in a Gross Unrealized Loss Position | The table below presents available-for-sale securities in a gross unrealized loss position, and whether such securities have been in a gross unrealized loss position for less than 12 months, or 12 months or greater. As of December 31, 2017 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities: Freddie Mac $10,337 ($107 ) $9,251 ($355 ) Other agency 40 — 1,079 (11 ) Non-agency RMBS 5 — 105 (6 ) Non-agency CMBS 1,026 (2 ) 52 (9 ) Obligations of states and political subdivisions 12 — 21 — Total available-for-sale securities in a gross unrealized loss position $11,420 ($109 ) $10,508 ($381 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater (In millions) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Available-for-sale securities: Freddie Mac $19,786 ($559 ) $1,732 ($23 ) Other agency 542 (6 ) 2,040 (19 ) Non-agency RMBS 309 (1 ) 2,188 (79 ) Non-agency CMBS 383 (2 ) 204 (24 ) Obligations of states and political subdivisions 83 — — — Total available-for-sale securities in a gross unrealized loss position $21,103 ($568 ) $6,164 ($145 ) |
Table - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities | The table below summarizes the gross realized gains and gross realized losses from the sale of available-for-sale securities. Year Ended December 31, (In millions) 2017 2016 2015 Gross realized gains $1,792 $1,062 $1,371 Gross realized losses (66 ) (91 ) (33 ) Net realized gains $1,726 $971 $1,338 |
Debt Securities and Subordina31
Debt Securities and Subordinated Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Table - Total Debt, Net | The table below summarizes the interest expense per our consolidated statements of comprehensive income and the balances of total debt, net per our consolidated balance sheets. Balance, Net Interest Expense As of December 31, For The Year Ended December 31, (In millions) 2017 2016 2017 2016 2015 Debt securities of consolidated trusts held by third parties $1,720,996 $1,648,683 $47,656 $44,599 $45,536 Other debt: Short-term debt 73,069 71,451 615 350 173 Long-term debt 240,565 281,870 5,372 5,837 6,435 Total other debt 313,634 353,321 5,987 6,187 6,608 Total debt, net $2,034,630 $2,002,004 $53,643 $50,786 $52,144 |
Table - Debt Securities of Consolidated Trusts Held by Third Parties | The table below summarizes the debt securities of consolidated trusts held by third parties based on underlying loan product type. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Contractual Maturity UPB Carrying Amount (1) Weighted Average Coupon (2) Contractual Maturity UPB Carrying Amount (1) Weighted Average Coupon (2) Single-family: 30-year or more, fixed-rate 2018 - 2055 $1,278,911 $1,318,350 3.68 % 2017 - 2055 $1,193,329 $1,229,849 3.71 % 20-year fixed-rate 2018 - 2038 73,866 76,022 3.43 % 2017 - 2037 74,033 76,331 3.49 % 15-year fixed-rate 2018 - 2033 260,633 266,241 2.86 % 2017 - 2032 267,739 273,978 2.90 % Adjustable-rate 2018 - 2048 47,169 48,220 2.85 % 2017 - 2047 52,991 54,205 2.69 % Interest-only 2026 - 2041 7,303 7,379 3.74 % 2026 - 2041 10,007 10,057 3.47 % FHA/VA 2018 - 2046 847 866 4.85 % 2017 - 2046 1,015 1,038 4.92 % Total Single-family 1,668,729 1,717,078 1,599,114 1,645,458 Multifamily 2019-2047 3,876 3,918 3.99 % 2019 - 2033 3,048 3,225 4.63 % Total debt securities of consolidated trusts held by third parties $1,672,605 $1,720,996 $1,602,162 $1,648,683 (1) Includes $639 million and $144 million at December 31, 2017 and 2016, respectively, of debt of consolidated trusts that represents the fair value of debt securities with the fair value option elected. (2) The effective rate for debt securities of consolidated trusts held by third parties was 2.84% and 2.63% as of December 31, 2017 and 2016, respectively. |
Table - Other Short-term Debt | The table below summarizes the balances and effective interest rates for other short-term debt. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Par Value Carrying Amount Weighted Average Effective Rate Par Value Carrying Amount Weighted Average Effective Rate Other short-term debt: Discount notes and Reference Bills ® $45,717 $45,596 1.19 % $61,042 $60,976 0.47 % Medium-term notes 17,792 17,792 1.03 % 7,435 7,435 0.41 % Securities sold under agreements to repurchase 9,681 9,681 1.06 % 3,040 3,040 0.42 % Total other short-term debt $73,190 $73,069 1.14 % $71,517 $71,451 0.47 % |
Table - Other Long-term Debt | The table below summarizes our other long-term debt. As of December 31, 2017 As of December 31, 2016 (Dollars in millions) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Par Value Carrying Amount Weighted Average Effective Rate (2) Other long-term debt: Other senior debt: Fixed-rate: Medium-term notes — callable 2018 - 2037 $86,311 $86,284 1.47 % $76,412 $76,383 1.24 % Medium-term notes — non-callable 2018 - 2028 10,839 10,973 1.40 % 13,742 13,987 1.08 % Reference Notes securities — non-callable 2018 - 2032 79,991 80,019 2.17 % 118,702 118,727 2.17 % STACR and SCR 2031 - 2042 137 140 12.77 % 95 95 13.00 % Variable-rate: Medium-term notes — callable 2018 - 2032 27,510 27,475 1.95 % 21,008 20,972 1.94 % Medium-term notes — non-callable 2018 - 2026 14,746 14,746 0.68 % 33,077 33,076 0.48 % STACR 2023 - 2042 17,788 18,198 5.00 % 14,507 14,745 4.34 % Zero-coupon: Medium-term notes — callable — — — % 1,000 296 6.17 % Medium-term notes — non-callable 2018 - 2039 5,141 2,415 5.94 % 5,792 2,925 5.01 % Other — — — — % 438 281 5.93 % Hedging-related basis adjustments N/A (79 ) N/A 15 Total other senior debt 242,463 240,171 284,773 281,502 Other subordinated debt: Fixed-rate 2018 121 121 7.83 % 121 120 7.84 % Zero-coupon 2019 332 273 10.51 % 332 248 10.51 % Total other subordinated debt 453 394 453 368 Total other long-term debt $242,916 $240,565 2.04 % $285,226 $281,870 1.81 % (1) Represents par value, net of associated discounts or premiums and issuance costs. Includes $5.2 billion and $5.9 billion at December 31, 2017 and 2016, respectively, of other long term-debt that represents the fair value of debt securities with the fair value option elected. (2) Based on carrying amount. |
Table - Contractual Maturity of Other Long-term Debt and Debt Securities of Consolidated Trusts Held by Third Parties | The table below summarizes the contractual maturities of other long-term debt securities at December 31, 2017 . (In millions) Par Value Annual Maturities Other long-term debt (excluding STACR and SCR): 2018 $70,557 2019 57,689 2020 38,117 2021 22,809 2022 18,538 Thereafter 17,281 Debt securities of consolidated trusts held by third parties, STACR and SCR (1) 1,690,530 Total 1,915,521 Net discounts, premiums, debt issuance costs, hedge-related and other basis adjustments (2) 46,040 Total debt securities of consolidated trusts held by third parties, STACR, SCR and other long-term debt $1,961,561 (1) Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrower at any time without penalty. (2) Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Table - Derivative Assets and Liabilities at Fair Value | The table below presents the notional value and fair value of derivatives reported on our consolidated balance sheets. As of December 31, 2017 As of December 31, 2016 Notional or Contractual Amount Derivatives at Fair Value Notional or Contractual Amount Derivatives at Fair Value (In millions) Assets Liabilities Assets Liabilities Not designated as hedges Interest-rate swaps: Receive-fixed $213,717 $2,121 ($1,224 ) $313,106 $4,337 ($2,703 ) Pay-fixed 185,400 751 (5,008 ) 271,477 2,586 (9,684 ) Basis (floating to floating) 5,244 — (2 ) 1,450 1 — Total interest-rate swaps 404,361 2,872 (6,234 ) 586,033 6,924 (12,387 ) Option-based: Call swaptions Purchased 58,975 2,709 — 60,730 2,817 — Written 4,650 — (101 ) 1,350 — (78 ) Put swaptions Purchased (1) 47,810 1,058 — 48,080 1,442 — Written 3,000 — (20 ) 3,200 — (28 ) Other option-based derivatives (2) 10,683 757 — 11,032 795 — Total option-based 125,118 4,524 (121 ) 124,392 5,054 (106 ) Futures 267,385 — — 138,294 — — Commitments 54,207 44 (64 ) 45,353 289 (151 ) Credit derivatives 3,569 7 (46 ) 2,951 1 (27 ) Other 2,906 1 (19 ) 2,879 — (21 ) Total derivatives not designated as hedging instruments 857,546 7,448 (6,484 ) 899,902 12,268 (12,692 ) Designated as fair value hedges Interest-rate swaps: Receive-fixed 83,352 2 (714 ) — — — Pay-fixed 69,402 1,388 (291 ) — — — Total derivatives designated as fair value hedges 152,754 1,390 (1,005 ) — — — Derivative interest receivable (payable) 1,407 (1,596 ) 1,442 (1,770 ) Netting adjustments (3) (9,870 ) 8,816 (12,963 ) 13,667 Total derivative portfolio, net $1,010,300 $375 ($269 ) $899,902 $747 ($795 ) (1) Includes swaptions on credit indices with a notional or contractual amount of $13.4 billion and $10.9 billion at December 31, 2017 and December 31, 2016, respectively, and a fair value of $5 million at both December 31, 2017 and December 31, 2016. (2) Primarily consists of purchased interest-rate caps and floors and options on Treasury futures. (3) Represents counterparty netting and cash collateral netting. |
Table - Gains and Losses on Derivatives | The table below presents the gains and losses on derivatives, including the accrual of periodic cash settlements, while not designated in qualifying hedge relationships and reported on our consolidated statements of comprehensive income as derivative gains (losses). In addition, for the first three quarters of 2017, the table includes the accrual of periodic cash settlements on derivatives in qualifying hedge relationships. Year Ended December 31, (In millions) 2017 2016 2015 Not designated as hedges Interest-rate swaps: Receive-fixed ($1,343 ) ($3,539 ) $35 Pay-fixed 1,972 3,717 (811 ) Basis (floating to floating) (3 ) — (2 ) Total interest-rate swaps 626 178 (778 ) Option based: Call swaptions Purchased (404 ) 234 371 Written 24 (45 ) (9 ) Put swaptions Purchased (673 ) 210 (249 ) Written 50 35 77 Other option-based derivatives (1) (38 ) (13 ) 68 Total option-based (1,041 ) 421 258 Other: Futures 144 334 (5 ) Commitments (91 ) 631 63 Credit derivatives (29 ) (75 ) (37 ) Other (7 ) (3 ) 1 Total other 17 887 22 Accrual of periodic cash settlements: Receive-fixed interest-rate swaps 1,511 2,316 2,568 Pay-fixed interest-rate swaps (3,101 ) (4,077 ) (4,768 ) Other — 1 2 Total accrual of periodic cash settlements (1,590 ) (1,760 ) (2,198 ) Total ($1,988 ) ($274 ) ($2,696 ) (1) Primarily consists of purchased interest-rate caps and floors and options on Treasury futures. |
Table - Gains and Losses on Fair Value Hedge | The table below presents the gains and losses on derivatives and hedged items while designated in qualifying fair value hedge relationships. During 2016, there were no derivatives designated in qualifying fair value hedge relationships. Year Ended December 31, 2017 (In millions) Interest Income - Mortgage Loans Interest Expense Other Income (Loss) Total amounts of income and expense line items presented in our consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $63,735 ($53,643 ) $7,480 Gain or (loss) on fair value hedging relationships: Interest contracts on mortgage loans held-for-investment: (1) Hedged items ($107 ) $— $351 Derivatives designated as hedging instruments (2) $313 $— ($215 ) Interest contracts on debt: Hedged items $— $93 $— Derivatives designated as hedging instruments (3) $— ($53 ) $— (1) For the first three quarters of 2017, the gains or losses on derivatives and hedged items were recorded in other income (loss). Beginning in 4Q 2017, gains or losses are recorded in interest income - mortgage loans in our consolidated statements of comprehensive income due to adoption of amended hedge accounting guidance. (2) The gain or (loss) on fair value hedging relationships excludes $(83) million of interest accruals which were recorded in interest income - mortgage loans in our consolidated statements of comprehensive income. (3) The gain or (loss) on fair value hedging relationships excludes $8 million of interest accruals which were recorded in interest expense in our consolidated statements of comprehensive income. |
Table - Cumulative Basis Adjustment on Fair Value Hedges | The table below presents the hedged item cumulative basis adjustments due to qualifying fair value hedging and the related hedged item carrying amounts by their respective balance sheet line item . As of December 31, 2017 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount (In millions) Total Discontinued - Hedge Related Mortgage loans held-for-investment $128,140 $198 $198 Debt ($92,277 ) $79 ($14 ) As of December 31, 2016 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount (In millions) Total Discontinued - Hedge Related Mortgage loans held-for-investment $— $— $— Debt ($8,546 ) ($15 ) ($15 ) |
Collateral and Offsetting of 33
Collateral and Offsetting of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Table - Offsetting of Financial Assets and Liabilities | The table below displays offsetting and collateral information related to derivatives, securities purchased under agreements to resell and securities sold under agreements to repurchase. Securities sold under agreements to repurchase are included in debt, net on our consolidated balance sheets. As of December 31, 2017 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $7,648 ($5,499 ) ($1,903 ) $246 ($205 ) $41 Cleared and exchange-traded derivatives 2,545 (2,266 ) (202 ) 77 — 77 Other 52 — — 52 — 52 Total derivatives 10,245 (7,765 ) (2,105 ) 375 (205 ) 170 Securities purchased under agreements to resell (3) 55,903 — — 55,903 (55,903 ) — Total $66,148 ($7,765 ) ($2,105 ) $56,278 ($56,108 ) $170 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($6,285 ) $5,499 $688 ($98 ) $— ($98 ) Cleared and exchange-traded derivatives (2,671 ) 2,266 363 (42 ) — (42 ) Other (129 ) — — (129 ) — (129 ) Total derivatives (9,085 ) 7,765 1,051 (269 ) — (269 ) Securities sold under agreements to repurchase (9,681 ) — — (9,681 ) 9,681 — Total ($18,766 ) $7,765 $1,051 ($9,950 ) $9,681 ($269 ) As of December 31, 2016 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $8,531 ($6,367 ) ($1,760 ) $404 ($353 ) $51 Cleared and exchange-traded derivatives 4,889 (4,674 ) (162 ) 53 — 53 Other 290 — — 290 — 290 Total derivatives 13,710 (11,041 ) (1,922 ) 747 (353 ) 394 Securities purchased under agreements to resell (3) 51,548 — — 51,548 (51,548 ) — Total $65,258 ($11,041 ) ($1,922 ) $52,295 ($51,901 ) $394 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($7,298 ) $6,367 $469 ($462 ) $274 ($188 ) Cleared and exchange-traded derivatives (6,965 ) 4,705 2,126 (134 ) — (134 ) Other (199 ) — — (199 ) — (199 ) Total derivatives (14,462 ) 11,072 2,595 (795 ) 274 (521 ) Securities sold under agreements to repurchase (3,040 ) — — (3,040 ) 3,040 — Total ($17,502 ) $11,072 $2,595 ($3,835 ) $3,314 ($521 ) (1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset. (2) Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on the consolidated balance sheets. For cleared and exchange-traded derivatives, does not include non-cash collateral posted by us as initial margin with an aggregate fair value of $3.1 billion and $3.4 billion as of December 31, 2017 and 2016 , respectively. (3) At December 31, 2017 and 2016 , we had $3.4 billion and $4.0 billion , respectively, of securities pledged to us for transactions involving securities purchased under agreements to resell that we had the right to repledge. |
Table - Offsetting of Financial Assets and Liabilities | The table below displays offsetting and collateral information related to derivatives, securities purchased under agreements to resell and securities sold under agreements to repurchase. Securities sold under agreements to repurchase are included in debt, net on our consolidated balance sheets. As of December 31, 2017 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $7,648 ($5,499 ) ($1,903 ) $246 ($205 ) $41 Cleared and exchange-traded derivatives 2,545 (2,266 ) (202 ) 77 — 77 Other 52 — — 52 — 52 Total derivatives 10,245 (7,765 ) (2,105 ) 375 (205 ) 170 Securities purchased under agreements to resell (3) 55,903 — — 55,903 (55,903 ) — Total $66,148 ($7,765 ) ($2,105 ) $56,278 ($56,108 ) $170 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($6,285 ) $5,499 $688 ($98 ) $— ($98 ) Cleared and exchange-traded derivatives (2,671 ) 2,266 363 (42 ) — (42 ) Other (129 ) — — (129 ) — (129 ) Total derivatives (9,085 ) 7,765 1,051 (269 ) — (269 ) Securities sold under agreements to repurchase (9,681 ) — — (9,681 ) 9,681 — Total ($18,766 ) $7,765 $1,051 ($9,950 ) $9,681 ($269 ) As of December 31, 2016 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets (2) Net Amount (In millions) Counterparty Netting Cash Collateral Netting (1) Assets: Derivatives: OTC derivatives $8,531 ($6,367 ) ($1,760 ) $404 ($353 ) $51 Cleared and exchange-traded derivatives 4,889 (4,674 ) (162 ) 53 — 53 Other 290 — — 290 — 290 Total derivatives 13,710 (11,041 ) (1,922 ) 747 (353 ) 394 Securities purchased under agreements to resell (3) 51,548 — — 51,548 (51,548 ) — Total $65,258 ($11,041 ) ($1,922 ) $52,295 ($51,901 ) $394 Liabilities: Derivatives: OTC interest-rate swaps and option-based derivatives ($7,298 ) $6,367 $469 ($462 ) $274 ($188 ) Cleared and exchange-traded derivatives (6,965 ) 4,705 2,126 (134 ) — (134 ) Other (199 ) — — (199 ) — (199 ) Total derivatives (14,462 ) 11,072 2,595 (795 ) 274 (521 ) Securities sold under agreements to repurchase (3,040 ) — — (3,040 ) 3,040 — Total ($17,502 ) $11,072 $2,595 ($3,835 ) $3,314 ($521 ) (1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset. (2) Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on the consolidated balance sheets. For cleared and exchange-traded derivatives, does not include non-cash collateral posted by us as initial margin with an aggregate fair value of $3.1 billion and $3.4 billion as of December 31, 2017 and 2016 , respectively. (3) At December 31, 2017 and 2016 , we had $3.4 billion and $4.0 billion , respectively, of securities pledged to us for transactions involving securities purchased under agreements to resell that we had the right to repledge. |
Table - Collateral in the Form of Securities Pledged | The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge. As of December 31, 2017 (In millions) Derivatives Securities sold under agreements to repurchase Other (2) Total Debt securities of consolidated trusts (1) $375 $— $111 $486 Trading securities 2,766 9,705 362 12,833 Total securities pledged $3,141 $9,705 $473 $13,319 (1) Represents PCs held by us in our Capital Markets segment mortgage investments portfolio which are recorded as a reduction to debt securities of consolidated trusts held by third parties on our consolidated balance sheets. (2) Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses. |
Table - Contractual maturity of collateral pledged | The table below summarizes the underlying collateral pledged and the remaining contractual maturity of our gross obligations under securities sold under agreements to repurchase. As of December 31, 2017 (In millions) Overnight and continuous 30 days or less After 30 days through 90 days Greater than 90 days Total U.S. Treasury securities $— $9,705 $— $— $9,705 |
Stockholders' Equity and Earn34
Stockholders' Equity and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Table - Changes in AOCI by Component, Net of Tax | 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. Year Ended December 31, 2017 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $915 ($480 ) $21 $456 Other comprehensive income before reclassifications (1) 857 — 63 920 Amounts reclassified from accumulated other comprehensive income (1,110 ) 124 (1 ) (987 ) Changes in AOCI by component (253 ) 124 62 (67 ) Ending balance $662 ($356 ) $83 $389 Year Ended December 31, 2016 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $1,740 ($621 ) $34 $1,153 Other comprehensive income before reclassifications (1) (318 ) — (10 ) (328 ) Amounts reclassified from accumulated other comprehensive income (507 ) 141 (3 ) (369 ) Changes in AOCI by component (825 ) 141 (13 ) (697 ) Ending balance $915 ($480 ) $21 $456 Year Ended December 31, 2015 (In millions) AOCI Related to Available- For-Sale Securities AOCI Related to Cash Flow Hedge Relationships AOCI Related to Defined Benefit Plans Total Beginning balance $2,546 ($803 ) ($13 ) $1,730 Other comprehensive income before reclassifications (1) (123 ) — 48 (75 ) Amounts reclassified from accumulated other comprehensive income (683 ) 182 (1 ) (502 ) Changes in AOCI by component (806 ) 182 47 (577 ) Ending balance $1,740 ($621 ) $34 $1,153 (1) For the years ended December 31, 2017 , 2016 and 2015, net of tax expense of $0.5 billion , ($0.2) billion and $0.1 billion , respectively, for AOCI related to available-for-sale securities. |
Table - 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. Year Ended December 31, (In millions) 2017 2016 2015 AOCI related to available-for-sale securities Affected line items in the consolidated statements of comprehensive income: Other gains (losses) on investment securities recognized in earnings $1,726 $971 $1,343 Net impairment of available-for-sale securities recognized in earnings (18 ) (191 ) (292 ) Total before tax 1,708 780 1,051 Income tax (expense) or benefit (598 ) (273 ) (368 ) Net of tax 1,110 507 683 AOCI related to cash flow hedge relationships Affected line items in the consolidated statements of comprehensive income: Interest expense (164 ) (192 ) (230 ) Income tax (expense) or benefit 40 51 48 Net of tax (124 ) (141 ) (182 ) AOCI related to defined benefit plans Affected line items in the consolidated statements of comprehensive income: Salaries and employee benefits 2 4 1 Income tax (expense) or benefit (1 ) (1 ) — Net of tax 1 3 1 Total reclassifications in the period net of tax $987 $369 $502 |
Table - Senior Preferred Stock | The table below provides a summary of our senior preferred stock outstanding at December 31, 2017 . ( In millions , except initial liquidation preference price per share) Shares Authorized Shares Outstanding Total Par Value Initial Liquidation Preference Price per Share Total Liquidation Preference Non-draw Adjustment Dates: September 8, 2008 1.00 1.00 $1.00 $1,000 $1,000 December 31, 2017 — — — N/A 3,000 Draw Dates: November 24, 2008 — — — N/A 13,800 March 31, 2009 — — — N/A 30,800 June 30, 2009 — — — N/A 6,100 June 30, 2010 — — — N/A 10,600 September 30, 2010 — — — N/A 1,800 December 30, 2010 — — — N/A 100 March 31, 2011 — — — N/A 500 September 30, 2011 — — — N/A 1,479 December 30, 2011 — — — N/A 5,992 March 30, 2012 — — — N/A 146 June 29, 2012 — — — N/A 19 Total, senior preferred stock 1.00 1.00 $1.00 $75,336 |
Table - Preferred Stock | The table below provides a summary of our preferred stock outstanding at their redemption values at December 31, 2017 . ( In millions , except redemption price per share) Issue Date Shares Authorized Shares Outstanding Total Par Value Redemption Price per Share Total Outstanding Balance Redeemable On or After OTCQB Symbol Preferred stock: 1996 Variable-rate (1) April 26, 1996 5.00 5.00 $5.00 $50.00 $250 June 30, 2001 FMCCI 5.81% October 27, 1997 3.00 3.00 3.00 50.00 150 October 27, 1998 (2) 5% March 23, 1998 8.00 8.00 8.00 50.00 400 March 31, 2003 FMCKK 1998 Variable-rate (3) September 23 and 29, 1998 4.40 4.40 4.40 50.00 220 September 30, 2003 FMCCG 5.10% September 23, 1998 8.00 8.00 8.00 50.00 400 September 30, 2003 FMCCH 5.30% October 28, 1998 4.00 4.00 4.00 50.00 200 October 30, 2000 (2) 5.10% March 19, 1999 3.00 3.00 3.00 50.00 150 March 31, 2004 (2) 5.79% July 21, 1999 5.00 5.00 5.00 50.00 250 June 30, 2009 FMCCK 1999 Variable-rate (4) November 5, 1999 5.75 5.75 5.75 50.00 287 December 31, 2004 FMCCL 2001 Variable-rate (5) January 26, 2001 6.50 6.50 6.50 50.00 325 March 31, 2003 FMCCM 2001 Variable-rate (6) March 23, 2001 4.60 4.60 4.60 50.00 230 March 31, 2003 FMCCN 5.81% March 23, 2001 3.45 3.45 3.45 50.00 173 March 31, 2011 FMCCO 6% May 30, 2001 3.45 3.45 3.45 50.00 173 June 30, 2006 FMCCP 2001 Variable-rate (7) May 30, 2001 4.02 4.02 4.02 50.00 201 June 30, 2003 FMCCJ 5.70% October 30, 2001 6.00 6.00 6.00 50.00 300 December 31, 2006 FMCKP 5.81% January 29, 2002 6.00 6.00 6.00 50.00 300 March 31, 2007 (2) 2006 Variable-rate (8) July 17, 2006 15.00 15.00 15.00 50.00 750 June 30, 2011 FMCCS 6.42% July 17, 2006 5.00 5.00 5.00 50.00 250 June 30, 2011 FMCCT 5.90% October 16, 2006 20.00 20.00 20.00 25.00 500 September 30, 2011 FMCKO 5.57% January 16, 2007 44.00 44.00 44.00 25.00 1,100 December 31, 2011 FMCKM 5.66% April 16, 2007 20.00 20.00 20.00 25.00 500 March 31, 2012 FMCKN 6.02% July 24, 2007 20.00 20.00 20.00 25.00 500 June 30, 2012 FMCKL 6.55% September 28, 2007 20.00 20.00 20.00 25.00 500 September 30, 2017 FMCKI 2007 Fixed-to-floating rate (9) December 4, 2007 240.00 240.00 240.00 25.00 6,000 December 31, 2012 FMCKJ Total, preferred stock 464.17 464.17 $464.17 $14,109 (1) 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%. (2) Issued through private placement. (3) 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%. (4) 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. (5) 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. (6) 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. (7) 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. (8) Dividend rate resets quarterly and is equal to the sum of three-month LIBOR plus 0.50% but not less than 4.00%. (9) 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Table - Federal Income Tax (Expense) Benefit | The table below presents the components of our federal income tax expense for 2017, 2016 and 2015. We are exempt from state and local income taxes. Year Ended December 31, (In millions) 2017 2016 2015 Current income tax expense ($3,436 ) ($1,037 ) ($1,243 ) Deferred income tax expense (7,773 ) (2,787 ) (1,655 ) Total income tax expense ($11,209 ) ($3,824 ) ($2,898 ) |
Table - Reconciliation of Statutory to Effective Tax Rate | The table below presents the reconciliation between our federal statutory income tax rate and our effective tax rate for 2017 , 2016 and 2015 . Year Ended December 31, 2017 2016 2015 (Dollars in millions) Amount Percent Amount Percent Amount Percent Statutory corporate tax rate ($5,892 ) 35.0 % ($4,074 ) 35.0 % ($3,246 ) 35.0 % Tax-exempt interest 39 (0.2 )% 36 (0.3 )% 52 (0.6 )% Tax credits 135 (0.8 )% 243 (2.1 )% 346 (3.7 )% Valuation allowance (54 ) 0.3 % — — — — Revaluation of deferred tax asset to enacted rate (5,405 ) 32.1 % — — — — Other (32 ) 0.2 % (29 ) 0.3 % (50 ) 0.5 % Effective tax rate ($11,209 ) 66.6 % ($3,824 ) 32.9 % ($2,898 ) 31.2 % |
Table - Deferred Tax Assets and Liabilities | Year Ended December 31, (In millions) 2017 2016 Deferred tax assets: Deferred fees $4,679 $6,662 Basis differences related to derivative instruments 2,041 4,006 Credit related items and allowance for loan losses 291 1,045 Basis differences related to assets held for investment 1,288 2,310 LIHTC partnerships and AMT credit carryforward — 2,156 Other items, net 55 131 Total deferred tax assets 8,354 16,310 Deferred tax liabilities: Unrealized gains related to available-for-sale securities (214 ) (492 ) Total deferred tax liabilities (214 ) (492 ) Valuation Allowance (33 ) — Deferred tax assets, net $8,107 $15,818 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Table - Summary of Segment Earnings and Comprehensive Income (Loss) | The table below presents Segment Earnings by segment. Year Ended December 31, (In millions) 2017 2016 2015 Segment Earnings (loss), net of taxes: Single-family Guarantee $2,501 $2,170 $1,778 Multifamily 2,014 1,818 827 Capital Markets 6,515 3,827 3,771 All Other (5,405 ) — — Total Segment Earnings, net of taxes 5,625 7,815 6,376 Net income $5,625 $7,815 $6,376 Comprehensive income (loss) of segments: Single-family Guarantee $2,541 $2,161 $1,790 Multifamily 1,937 1,582 566 Capital Markets 6,485 3,375 3,415 All Other (5,405 ) — 28 Comprehensive income of segments 5,558 7,118 5,799 Comprehensive income $5,558 $7,118 $5,799 |
Table - Segment Earnings and Reconciliation to GAAP Results | The table below presents detailed reconciliations between our GAAP financial statements and Segment Earnings for our reportable segments and All Other. Year Ended December 31, 2017 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,206 $3,381 $— $4,587 $9,577 $14,164 Guarantee fee income (1) 6,094 676 — — 6,770 (6,108 ) 662 Benefit (Provision) for credit losses (816 ) (13 ) — — (829 ) 913 84 Net impairment of available-for-sale securities recognized in earnings — (5 ) 236 — 231 (249 ) (18 ) Derivative gains (losses) (37 ) 181 (587 ) — (443 ) (1,545 ) (1,988 ) Gains (losses) on trading securities — (102 ) (570 ) — (672 ) — (672 ) Gains (losses) on loans — (2 ) — — (2 ) 930 928 Other non-interest income 1,542 1,594 7,895 — 11,031 (3,074 ) 7,957 Administrative expense (1,381 ) (395 ) (330 ) — (2,106 ) — (2,106 ) REO operations (expense) income (203 ) — — — (203 ) 14 (189 ) Other non-interest (expense) income (1,382 ) (66 ) (82 ) — (1,530 ) (458 ) (1,988 ) Income tax expense (1,316 ) (1,060 ) (3,428 ) (5,405 ) (11,209 ) — (11,209 ) Net income (loss) 2,501 2,014 6,515 (5,405 ) 5,625 — 5,625 Changes in unrealized gains (losses) related to available-for-sale securities — (86 ) (167 ) — (253 ) — (253 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 124 — 124 — 124 Changes in defined benefit plans 40 9 13 — 62 — 62 Total other comprehensive income (loss), net of taxes 40 (77 ) (30 ) — (67 ) — (67 ) Comprehensive income (loss) $2,541 $1,937 $6,485 ($5,405 ) $5,558 $— $5,558 Referenced footnote is included after the next table. Year Ended December 31, 2016 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,022 $3,812 $— $4,834 $9,545 $14,379 Guarantee fee income (1) 6,091 511 — — 6,602 (6,089 ) 513 Benefit (Provision) for credit losses (517 ) 22 — — (495 ) 1,298 803 Net impairment of available-for-sale securities recognized in earnings — — 269 — 269 (460 ) (191 ) Derivative gains (losses) (69 ) 407 1,151 — 1,489 (1,763 ) (274 ) Gains (losses) on trading securities — 28 (1,077 ) — (1,049 ) — (1,049 ) Gains (losses) on loans — 309 — — 309 (772 ) (463 ) Other non-interest income 516 829 1,846 — 3,191 (1,227 ) 1,964 Administrative expense (1,323 ) (362 ) (320 ) — (2,005 ) — (2,005 ) REO operations (expense) income (298 ) — — — (298 ) 11 (287 ) Other non-interest (expense) income (1,169 ) (58 ) 19 — (1,208 ) (543 ) (1,751 ) Income tax expense (1,061 ) (890 ) (1,873 ) — (3,824 ) — (3,824 ) Net income (loss) 2,170 1,818 3,827 — 7,815 — 7,815 Changes in unrealized gains (losses) related to available-for-sale securities — (234 ) (591 ) — (825 ) — (825 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 141 — 141 — 141 Changes in defined benefit plans (9 ) (2 ) (2 ) — (13 ) — (13 ) Total other comprehensive income (loss), net of taxes (9 ) (236 ) (452 ) — (697 ) — (697 ) Comprehensive income (loss) $2,161 $1,582 $3,375 $— $7,118 $— $7,118 Referenced footnote is included after the next table. Year Ended December 31, 2015 Single-family Guarantee Multifamily Capital Markets All Other Total Segment Earnings (Loss) Reclassifications Total per Consolidated Statements of Comprehensive Income (In millions) Net interest income $— $1,049 $4,665 $— $5,714 $9,232 $14,946 Guarantee fee income (1) 5,152 339 — — 5,491 (5,122 ) 369 Benefit (Provision) for credit losses (283 ) 26 — — (257 ) 2,922 2,665 Net impairment of available-for-sale securities recognized in earnings — (22 ) 420 — 398 (690 ) (292 ) Derivative gains (losses) (37 ) 372 (833 ) — (498 ) (2,198 ) (2,696 ) Gains (losses) on trading securities — (98 ) (737 ) — (835 ) — (835 ) Gains (losses) on loans — (93 ) — — (93 ) (2,001 ) (2,094 ) Other non-interest income 173 15 2,292 — 2,480 (531 ) 1,949 Administrative expense (1,285 ) (325 ) (317 ) — (1,927 ) — (1,927 ) REO operations (expense) income (341 ) (4 ) — — (345 ) 7 (338 ) Other non-interest (expense) income (794 ) (56 ) (4 ) — (854 ) (1,619 ) (2,473 ) Income tax expense (807 ) (376 ) (1,715 ) — (2,898 ) — (2,898 ) Net income (loss) 1,778 827 3,771 — 6,376 — 6,376 Changes in unrealized gains (losses) related to available-for-sale securities — (264 ) (542 ) — (806 ) — (806 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 182 — 182 — 182 Changes in defined benefit plans 12 3 4 28 47 — 47 Total other comprehensive income (loss), net of taxes 12 (261 ) (356 ) 28 (577 ) — (577 ) Comprehensive income (loss) $1,790 $566 $3,415 $28 $5,799 $— $5,799 (1) Guarantee fee income is included in other income (loss) on our GAAP consolidated statements of comprehensive income. |
Concentration of Credit and O37
Concentration of Credit and Other Risks (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Table - Concentration of Credit Risk | The table below summarizes the concentration by loan portfolio and geographic area of approximately $1.8 trillion UPB of our single-family credit guarantee portfolio at both December 31, 2017 and 2016 , respectively. See Note 4 and Note 7 for more information about credit risk associated with loans and mortgage-related securities that we hold or guarantee. December 31, 2017 December 31, 2016 Percent of Credit Losses Percentage of Portfolio Serious Delinquency Rate Percentage of Portfolio Serious Delinquency Rate 2017 2016 Core single-family loan portfolio 78 % 0.35 % 73 % 0.20 % 3 % 6 % Legacy and relief refinance single-family loan portfolio 22 2.59 % 27 2.28 % 97 94 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % Region (1) West 30 % 0.47 % 30 % 0.57 % 27 % 11 % Northeast 25 1.24 % 25 1.45 % 34 41 North Central 16 0.81 % 16 0.93 % 15 24 Southeast 16 1.95 % 16 1.19 % 20 19 Southwest 13 0.98 % 13 0.78 % 4 5 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % State (2)(3) California 18 % 0.41 % 18 % 0.46 % 18 % 5 % Florida 6 3.33 % 6 1.42 % 13 9 Illinois 5 1.13 % 5 1.34 % 9 10 New Jersey 3 1.78 % 3 2.26 % 9 12 New York 5 1.74 % 5 2.05 % 9 9 All other 63 0.91 % 63 0.90 % 42 55 Total 100 % 1.08 % 100 % 1.00 % 100 % 100 % (1) 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). (2) States presented based on those with the highest percentage of credit losses during the year ended December 31, 2017 . (3) On January 1, 2017, we elected a new accounting policy for reclassifications of loans from held-for-investment to held-for-sale. The charge-offs taken under the new policy affected some states more than others. See Note 4 for further information about this change. The table below summarizes the concentration of multifamily loans in our multifamily mortgage portfolio classified by legal structure, based on UPB. As of December 31, 2017 As of December 31, 2016 (Dollars in billions) UPB Delinquency Rate (1) UPB Delinquency Rate (1) Unsecuritized loans $38.2 0.01 % $42.4 0.04 % Securitization-related products 192.5 0.02 % 147.6 0.03 % Other mortgage-related guarantees 10.0 — % 9.7 — % Total $240.7 0.02 % $199.7 0.03 % (1) Based on loans two monthly payments or more delinquent or in foreclosure. The table below summarizes the concentration of single-family and multifamily sellers who provided 10% or more of our purchase volume. Single-family Sellers 2017 2016 Wells Fargo Bank, N.A. 15 % 15 % Other top 10 sellers 38 34 Top 10 single-family sellers 53 % 49 % Multifamily Sellers 2017 2016 CBRE Capital Markets, Inc. 18 % 19 % Berkadia Commercial Mortgage LLC 11 17 Walker & Dunlop, LLC 10 10 Other top 10 sellers 39 33 Top 10 multifamily sellers 78 % 79 % The table below summarizes the concentration of mortgage insurer counterparties who provided 10% or more of our overall mortgage insurance coverage. On January 3, 2017, Arch Capital Group Ltd. announced that it had completed its purchase of United Guaranty Corporation at the end of 2016. The table below reflects this transaction. On October 23, 2016, Genworth Financial, Inc. announced that it had entered into an agreement to be acquired by China Oceanwide Holdings Group Co., Ltd. Regulatory approvals of the acquisition are still pending. Genworth Mortgage Insurance Corporation is a subsidiary of Genworth Financial, Inc. Mortgage Insurance Coverage Mortgage Insurer Credit Rating (1) December 31, 2017 December 31, 2016 Arch Mortgage Insurance Company A- 24 % 25 % Radian Guaranty Inc. BBB- 21 21 Mortgage Guaranty Insurance Corporation BBB 19 20 Genworth Mortgage Insurance Corporation BB+ 15 15 Essent Guaranty, Inc. BBB+ 12 10 Total 91 % 91 % (1) Ratings are for the corporate entity to which we have the greatest exposure. Coverage amounts may include coverage provided by affiliates and subsidiaries of the counterparty. Latest rating available as of December 31, 2017. Represents the lower of S&P and Moody’s credit ratings stated in terms of the S&P equivalent. The table below summarizes the concentration of single-family and multifamily servicers who serviced 10% or more of our single-family credit guarantee portfolio and our multifamily mortgage portfolio, excluding loans underlying multifamily securitizations where we are not in first loss position, primarily K Certificates and SB Certificates. Single-family Servicers December 31, 2017 (1) December 31, 2016 (1) Wells Fargo Bank, N.A. 18 % 19 % Other top 10 servicers 40 41 Top 10 single-family servicers 58 % 60 % Multifamily Servicers December 31, 2017 December 31, 2016 Wells Fargo Bank, N.A. 16 % 15 % CBRE Capital Markets, Inc. 12 14 Berkadia Commercial Mortgage LLC 11 11 Other top 10 servicers 36 39 Top 10 multifamily servicers 75 % 79 % (1) Percentage of servicing volume is based on the total single-family credit guarantee portfolio, excluding loans where we do not exercise control over the associated servicing. |
Certain Higher Risk Categories In The Single Family Credit Guarantee Portfolio [Table Text Block] | 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 based on UPB. 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. Percentage of Portfolio (1) Serious Delinquency Rate (1) As of December 31, As of December 31, December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest-only 1 % 1 % 4.97 % 4.34 % Alt-A 1 % 2 % 5.62 % 5.21 % Original LTV ratio greater than 90% (2) 17 % 16 % 1.70 % 1.58 % Lower credit scores at origination (less than 620) 2 % 2 % 6.34 % 5.73 % (1) Excludes loans underlying certain other securitization products for which data was not available. (2) Includes HARP loans, which we purchase as part of our participation in the MHA Program. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Table - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis | December 31, 2017 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $— $30,415 $5,055 $— $35,470 Other agency — 2,007 46 — 2,053 Non-agency RMBS — — 3,933 — 3,933 Non-agency CMBS — 87 1,697 — 1,784 Obligations of states and political subdivisions — — 357 — 357 Total available-for-sale securities, at fair value — 32,509 11,088 — 43,597 Trading, at fair value: Mortgage-related securities: Freddie Mac — 11,393 842 — 12,235 Other agency — 3,565 9 — 3,574 All other — 27 2,066 — 2,093 Total mortgage-related securities — 14,985 2,917 — 17,902 Non-mortgage-related securities 20,159 2,660 — — 22,819 Total trading securities, at fair value 20,159 17,645 2,917 — 40,721 Total investments in securities 20,159 50,154 14,005 — 84,318 Mortgage loans: Held-for-sale, at fair value — 20,054 — — 20,054 Derivative assets, net: Interest-rate swaps — 4,262 — — 4,262 Option-based derivatives — 4,524 — — 4,524 Other — 44 8 — 52 Subtotal, before netting adjustments — 8,830 8 — 8,838 Netting adjustments (1) — — — (8,463 ) (8,463 ) Total derivative assets, net — 8,830 8 (8,463 ) 375 Other assets: Guarantee asset, at fair value — — 3,171 — 3,171 Non-derivative held-for-sale purchase commitments, at fair value — 137 — — 137 All other, at fair value — — 45 — 45 Total other assets — 137 3,216 — 3,353 Total assets carried at fair value on a recurring basis $20,159 $79,175 $17,229 ($8,463 ) $108,100 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $9 $630 $— $639 Other debt, at fair value — 5,023 137 — 5,160 Derivative liabilities, net: Interest-rate swaps — 7,239 — — 7,239 Option-based derivatives — 121 — — 121 Other — 64 65 — 129 Subtotal, before netting adjustments — 7,424 65 — 7,489 Netting adjustments (1) — — — (7,220 ) (7,220 ) Total derivative liabilities, net — 7,424 65 (7,220 ) 269 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 4 — — 4 Total liabilities carried at fair value on a recurring basis $— $12,460 $832 ($7,220 ) $6,072 Referenced footnotes are included after the next table. December 31, 2016 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $— $33,805 $9,847 $— $43,652 Other agency — 4,155 66 — 4,221 Non-agency RMBS — — 11,797 — 11,797 Non-agency CMBS — 3,056 3,366 — 6,422 Obligations of states and political subdivisions — — 665 — 665 Total available-for-sale securities, at fair value — 41,016 25,741 — 66,757 Trading, at fair value: Mortgage-related securities: Freddie Mac — 14,248 1,095 — 15,343 Other agency — 8,149 12 — 8,161 All other — 36 113 — 149 Total mortgage-related securities — 22,433 1,220 — 23,653 Non-mortgage-related securities 19,402 1,735 — — 21,137 Total trading securities, at fair value 19,402 24,168 1,220 — 44,790 Total investments in securities 19,402 65,184 26,961 — 111,547 Mortgage loans: Held-for-sale, at fair value — 16,255 — — 16,255 Derivative assets, net: Interest-rate swaps — 6,924 — — 6,924 Option-based derivatives — 5,054 — — 5,054 Other — 287 3 — 290 Subtotal, before netting adjustments — 12,265 3 — 12,268 Netting adjustments (1) — — — (11,521 ) (11,521 ) Total derivative assets, net — 12,265 3 (11,521 ) 747 Other assets: Guarantee asset, at fair value — — 2,298 — 2,298 Non-derivative held-for-sale purchase commitments, at fair value — 108 — — 108 All other, at fair value — — 2 — 2 Total other assets — 108 2,300 — 2,408 Total assets carried at fair value on a recurring basis $19,402 $93,812 $29,264 ($11,521 ) $130,957 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $144 $— $— $144 Other debt, at fair value — 5,771 95 — 5,866 Derivative liabilities, net: Interest-rate swaps — 12,387 — — 12,387 Option-based derivatives — 106 — — 106 Other — 147 52 — 199 Subtotal, before netting adjustments — 12,640 52 — 12,692 Netting adjustments(1) — — — (11,897 ) (11,897 ) Total derivative liabilities, net — 12,640 52 (11,897 ) 795 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 37 — — 37 Total liabilities carried at fair value on a recurring basis $— $18,592 $147 ($11,897 ) $6,842 (1) Represents counterparty netting, cash collateral netting and net derivative interest receivable or payable. |
Table - Assets on Our Consolidated Balance Sheets Measured at Fair Value on a Non-Recurring Basis | The table below presents assets measured on our consolidated balance sheets at fair value on a non-recurring basis. December 31, 2017 2016 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets measured at fair value on a non-recurring basis: Mortgage loans (1) $— $494 $6,199 $6,693 $— $199 $2,483 $2,682 (1) Includes loans that are classified as held-for-investment and have been measured for impairment based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. |
Table - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | Level 3 Fair Value Measurements The table below presents a reconciliation of all assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), 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. When assets and liabilities are transferred between levels, we recognize the transfer as of the beginning of the period. Year Ended December 31, 2017 Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) (In millions) Included in Included in other Total Assets Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $9,847 ($8 ) $81 $73 $494 $— ($932 ) ($1,349 ) $17 ($3,095 ) $5,055 ($18 ) Other agency 66 — (1 ) (1 ) — — — (11 ) — (8 ) 46 — Non-agency RMBS 11,797 1,564 (270 ) 1,294 — — (7,688 ) (1,470 ) — — 3,933 124 Non-agency CMBS 3,366 343 (98 ) 245 1,681 — (3,556 ) (39 ) — — 1,697 (2 ) Obligations of states and political subdivisions 665 1 (3 ) (2 ) — — — (306 ) — — 357 — Total available-for-sale mortgage-related securities 25,741 1,900 (291 ) 1,609 2,175 — (12,176 ) (3,175 ) 17 (3,103 ) 11,088 104 Trading, at fair value: Mortgage-related securities: Freddie Mac 1,095 (171 ) — (171 ) 709 — (592 ) (8 ) 14 (205 ) 842 (155 ) Other agency 12 (3 ) — (3 ) — — — — — — 9 (3 ) All other 113 35 — 35 1,946 — — (28 ) — — 2,066 30 Total trading mortgage-related securities 1,220 (139 ) — (139 ) 2,655 — (592 ) (36 ) 14 (205 ) 2,917 (128 ) Other assets: Guarantee asset 2,298 (27 ) — (27 ) — 1,387 — (487 ) — — 3,171 (26 ) All other, at fair value 2 (10 ) — (10 ) 33 31 (11 ) — — — 45 (10 ) Total other assets $2,300 ($37 ) $— ($37 ) $33 $1,418 ($11 ) ($487 ) $— $— $3,216 ($36 ) Balance, Realized and unrealized (gains) losses Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $— $— $— $— $— $630 $— $— $— $— $630 $— Other debt, at fair value 95 — — — — 50 — (8 ) — — 137 — Net derivatives (2) $52 $40 $— $40 $— ($10 ) $— ($25 ) $— $— $57 $20 Referenced footnotes are included after the next table. Year Ended December 31, 2016 Balance, January 1, 2016 Realized and unrealized gains (losses) Purchases Issues Sales Settlements, net Transfers into Level 3 (1) Transfers out of Level 3 (1) Balance, December 31, 2016 Unrealized gains (losses) still held (3) (In millions) Included in earnings Included in other comprehensive income Total Assets Investments in securities: Available-for-sale, at fair value: Mortgage-related securities: Freddie Mac $2,608 $10 ($71 ) ($61 ) $8,894 $— ($605 ) ($703 ) $29 ($315 ) $9,847 ($9 ) Other agency 91 — (2 ) (2 ) — — — (17 ) — (6 ) 66 — Non-agency RMBS 20,333 877 55 932 — — (6,286 ) (3,182 ) — — 11,797 236 Non-agency CMBS 3,530 2 (132 ) (130 ) — — — (34 ) — — 3,366 2 Obligations of states and political subdivisions 1,205 1 (10 ) (9 ) — — — (531 ) — — 665 — Total available-for-sale mortgage-related securities 27,767 890 (160 ) 730 8,894 — (6,891 ) (4,467 ) 29 (321 ) 25,741 229 Trading, at fair value: Mortgage-related securities: Freddie Mac 331 (21 ) — (21 ) 869 — (142 ) (3 ) 190 (129 ) 1,095 (20 ) Other agency 41 — — — — — (22 ) (7 ) — — 12 (1 ) All other 2 — — — 114 — — (3 ) — — 113 — Total trading mortgage-related securities 374 (21 ) — (21 ) 983 — (164 ) (13 ) 190 (129 ) 1,220 (21 ) Other assets: Guarantee asset 1,753 53 — 53 — 850 — (358 ) — — 2,298 54 All other, at fair value — (2 ) — (2 ) 14 — — — (10 ) — 2 (2 ) Total other assets $1,753 $51 $— $51 $14 $850 $— ($358 ) ($10 ) $— $2,300 $52 Balance, Realized and unrealized (gains) losses Purchases Issues Sales Settlements, net Transfers into Level 3 (1) Transfers out of Level 3 (1) Balance, Unrealized (gains) losses still held (3) Included in earnings Included in other comprehensive income Total Liabilities Other debt, at fair value $— $— $— $— $— $95 $— $— $— $— $95 $— Net derivatives (2) 8 68 — 68 — 2 — (26 ) — — 52 40 Other liabilities: All other, at fair value $10 $— $— $— $— $— $— $— $— ($10 ) $— $— (1) Transfers out of Level 3 during 2017 and 2016 consisted primarily of certain mortgage-related securities due to an increased volume and level of activity in the market and availability of price quotes from dealers and third-party pricing services. Certain Freddie Mac securities are classified as Level 3 at issuance and generally are classified as Level 2 when they begin trading. Transfers into Level 3 during 2017 and 2016 consisted primarily of certain mortgage-related securities due to a lack of market activity and relevant price quotes from dealers and third-party pricing services. (2) Amounts are the net of derivative assets and liabilities prior to counterparty netting, cash collateral netting, net trade/settle receivable or payable and net derivative interest receivable or payable. (3) 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, 2017 and December 31, 2016, respectively. Included in these amounts are other-than temporary impairments recorded on available-for-sale securities. |
Table - Quantitative Information about Recurring Level 3 Fair Value Measurements | The table below provides valuation techniques, the range and the weighted average of significant unobservable inputs for assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using unobservable inputs (Level 3). December 31, 2017 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Recurring fair value measurements Assets Investments in securities Available-for-sale, at fair value Mortgage-related securities Freddie Mac $4,873 Discounted cash flows OAS 27 - 501 bps 68 bps 182 Other Total Freddie Mac 5,055 Other agency 46 Other Non-agency RMBS 3,665 Median of external sources External pricing sources $75.6 - $80.8 $77.7 268 Other Total non-agency RMBS 3,933 Non-agency CMBS 1,696 Single external source External pricing sources $108.4 - $108.9 $108.7 1 Other Total non-agency CMBS 1,697 Obligations of states and political subdivisions 334 Median of external sources External pricing sources $101.2 - $101.6 $101.4 23 Other Total obligations of states and political subdivisions 357 Total available-for-sale mortgage-related securities 11,088 Trading, at fair value Mortgage-related securities Freddie Mac 582 Discounted cash flows OAS (8,905) - 27,202 bps (88) bps 243 Risk metrics Effective duration 0.00 - 55.93 years 11.76 years 17 Other Total Freddie Mac 842 Other agency 9 Other All other 2,065 Single external source External pricing sources $6.4 - $113.2 $98.0 1 Other Total all other 2,066 Total trading mortgage-related securities 2,917 Total investments in securities $14,005 Other assets: Guarantee asset, at fair value $3,171 Discounted cash flows OAS 17 - 198 bps 45 bps All other at fair value 45 Other Total other assets 3,216 Liabilities Debt securities of consolidated trusts held by third parties, at fair value 630 Single External Source External Pricing Sources $99.2 - $100.2 $100.1 Other debt, at fair value 137 Other Net derivatives 57 Other December 31, 2016 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Recurring fair value measurements Assets Investments in securities Available-for-sale, at fair value Mortgage-related securities Freddie Mac $7,619 Discounted cash flows OAS (146) - 500 bps 91 bps 129 Median of external sources External pricing sources $100.8 - $103.3 $101.8 2,099 Other Total Freddie Mac 9,847 Other agency 66 Other Non-agency RMBS 9,974 Median of external sources External pricing sources $74.0 - $78.8 $76.0 1,823 Other Total non-agency RMBS 11,797 Non-agency CMBS 3,365 Risk metrics Effective duration 2.15 - 10.02 years 8.57 years 1 Other Total non-agency CMBS 3,366 Obligations of states and political subdivisions 619 Median of external sources External pricing sources $100.9 - $101.5 $101.2 46 Other Total obligations of states and political subdivisions 665 Total available-for-sale mortgage-related securities 25,741 Trading, at fair value Mortgage-related securities Freddie Mac 452 Risk metrics Effective duration (5.07) - 46.37 years 6.94 years 311 Discounted cash flows OAS (3,346) - 2,460 bps (224) bps 332 Other Total Freddie Mac 1,095 Other agency 12 Other All other 113 Risk metrics Effective duration 0.14 - 4.08 years 2.52 years Total trading mortgage-related securities 1,220 Total investments in securities $26,961 Other assets Guarantee asset, at fair value $2,091 Discounted cash flows OAS 17 - 198 bps 50 bps 207 Other Total guarantee asset, at fair value 2,298 All other at fair value 2 Other Total other assets 2,300 Liabilities Other debt, at fair value 95 Other Net derivatives 49 Other |
Table - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The table below provides valuation techniques, the range and the weighted average of significant unobservable inputs for assets and liabilities measured on our consolidated balance sheets at fair value on a non-recurring basis using unobservable inputs (Level 3). Certain of the fair values in the table below were not obtained as of the period end, but were obtained during the period. December 31, 2017 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Non-recurring fair value measurements Mortgage loans $6,199 Internal model Historical sales proceeds $3,000 - $899,000 $176,558 Internal model Housing sales index 43 - 394 bps 102 bps Median of external sources External pricing sources $36.5 - $94.9 $80.9 December 31, 2016 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Non-recurring fair value measurements Mortgage loans $2,483 Internal model Historical sales proceeds $3,000 - $770,000 $167,137 Internal model Housing sales index 42 - 374 bps 96 bps Median of external sources External pricing sources $37.0 - $94.3 $75.0 |
Table - Fair Value of Financial Instruments | The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, restricted cash and cash equivalents, securities purchased under agreements to resell, advances to lenders and certain other debt, the carrying value on our GAAP balance sheets approximates fair value, as these assets are short-term in nature and have limited market value volatility. December 31, 2017 GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (1) Total Financial Assets Cash and cash equivalents $6,848 $6,848 $— $— $— $6,848 Restricted cash and cash equivalents 2,963 2,963 — — — 2,963 Securities purchased under agreements to resell 55,903 — 55,903 — — 55,903 Investments in securities: Available-for-sale, at fair value 43,597 — 32,509 11,088 — 43,597 Trading, at fair value 40,721 20,159 17,645 2,917 — 40,721 Total investments in securities 84,318 20,159 50,154 14,005 — 84,318 Mortgage loans: Loans held by consolidated trusts 1,774,286 — 1,635,137 145,911 — 1,781,048 Loans held by Freddie Mac 96,931 — 32,169 67,932 — 100,101 Total mortgage loans 1,871,217 — 1,667,306 213,843 — 1,881,149 Derivative assets, net 375 — 8,830 8 (8,463 ) 375 Guarantee asset 3,171 — — 3,359 — 3,359 Non-derivative purchase commitments 137 — 137 55 — 192 Advances to lenders and other secured lending 1,269 — 473 796 — 1,269 Total financial assets $2,026,201 $29,970 $1,782,803 $232,066 ($8,463 ) $2,036,376 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,720,996 $— $1,721,091 $2,679 $— $1,723,770 Other debt 313,634 — 313,688 3,892 — 317,580 Total debt, net 2,034,630 — 2,034,779 6,571 — 2,041,350 Derivative liabilities, net 269 — 7,424 65 (7,220 ) 269 Guarantee obligation 3,081 — — 3,742 — 3,742 Non-derivative purchase commitments 4 — 4 15 — 19 Total financial liabilities $2,037,984 $— $2,042,207 $10,393 ($7,220 ) $2,045,380 Referenced footnotes are included after the next table. December 31, 2016 GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (1) Total Financial Assets Cash and cash equivalents $12,369 $12,369 $— $— $— $12,369 Restricted cash and cash equivalents 9,851 9,851 — — — 9,851 Securities purchased under agreements to resell 51,548 — 51,548 — — 51,548 Investments in securities: Available-for-sale, at fair value 66,757 — 41,016 25,741 — 66,757 Trading, at fair value 44,790 19,402 24,168 1,220 — 44,790 Total investments in securities 111,547 19,402 65,184 26,961 — 111,547 Mortgage loans: Loans held by consolidated trusts 1,690,218 — 1,554,143 142,121 — 1,696,264 Loans held by Freddie Mac 112,785 — 31,004 84,227 — 115,231 Total mortgage loans 1,803,003 — 1,585,147 226,348 — 1,811,495 Derivative assets, net 747 — 12,265 3 (11,521 ) 747 Guarantee asset 2,298 — — 2,490 — 2,490 Non-derivative purchase commitments 108 108 18 — 126 Advances to lenders and other secured lending 1,278 — — 1,278 — 1,278 Total financial assets $1,992,749 $41,622 $1,714,252 $257,098 ($11,521 ) $2,001,451 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,648,683 $— $1,651,313 $605 $— $1,651,918 Other debt 353,321 — 352,837 4,809 — 357,646 Total debt, net 2,002,004 — 2,004,150 5,414 — 2,009,564 Derivative liabilities, net 795 — 12,640 52 (11,897 ) 795 Guarantee obligation 2,208 — — 3,399 — 3,399 Non-derivative purchase commitments 37 — 37 45 — 82 Total financial liabilities $2,005,044 $— $2,016,827 $8,910 ($11,897 ) $2,013,840 (1) Represents counterparty netting, cash collateral netting and net derivative interest receivable or payable. |
Table - Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected | The table below presents the fair value and UPB related to certain items for which we have elected the fair value option. December 31, 2017 2016 (In millions) Multifamily Held-For-Sale Loans Other Debt - Long Term Debt securities of consolidated trusts held by third parties (1) Multifamily Held-For-Sale Loans Other Debt - Long Term Debt securities of consolidated trusts held by third parties (1) Fair value $20,054 $5,160 $630 $16,255 $5,866 $— Unpaid principal balance 19,762 4,666 630 16,231 5,584 — Difference $292 $494 $— $24 $282 $— (1) Does not include interest-only securities with fair value of $9 million and $144 million as of December 31, 2017 and December 31, 2016, respectively. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Banking [Abstract] | |
Table - Net Worth and Minimum Capital | The table below summarizes our minimum capital requirements and deficits and net worth. (In millions) December 31, 2017 December 31, 2016 GAAP net worth (deficit) ($312 ) $5,075 Core capital (deficit) (1)(2) (73,037 ) (67,717 ) Less: Minimum capital requirement (1) 18,431 18,933 Minimum capital surplus (deficit) (1) ($91,468 ) ($86,650 ) (1) Core capital and minimum capital figures are estimates and represent amounts submitted to FHFA. FHFA is the authoritative source for our regulatory capital. (2) Core capital excludes certain components of GAAP total equity (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 40
Selected Financial Statement Line Items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Financial Statement Data [Abstract] | |
Table - Significant Components of Other Income (Loss) on Our Consolidated Statements of Comprehensive Income | The table below presents the significant components of other income (loss) and other expense on our consolidated statements of comprehensive income. Year Ended December 31, (In millions) 2017 2016 2015 Other income (loss) Non-agency mortgage-related securities settlements $4,532 $— $65 Gains (losses) on held-for-sale loan purchase commitments 1,098 663 — Gains (losses) on loans 928 (463 ) (2,094 ) All other 922 1,054 1,150 Total other income (loss) $7,480 $1,254 ($879 ) Other expense Property tax and insurance expense on held-for-sale loans $45 ($90 ) ($1,094 ) All other (693 ) (509 ) (412 ) Total other expense ($648 ) ($599 ) ($1,506 ) |
Table - Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets | The table below presents the significant components of other assets and other liabilities on our consolidated balance sheets. As of December 31, (In millions) 2017 2016 Other assets Real estate owned, net $892 $1,198 Accounts and other receivables (1) 7,397 5,083 Guarantee asset 3,171 2,298 Fixed assets 798 630 Advances to lenders 796 1,278 All other 636 1,871 Total other assets $13,690 $12,358 Other liabilities Servicer liabilities $628 $730 Guarantee obligation 3,081 2,208 Accounts payable and accrued expenses 754 957 Payables related to securities 2,813 4,510 Income taxes payable 656 — All other 1,036 1,082 Total other liabilities $8,968 $9,487 (1) Primarily consists of servicer receivables and other non-interest receivables. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - USD ($) $ in Billions | Jan. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Regulatory guidance AB 2012-02 | |||
Change in Accounting Estimate [Line Items] | |||
Loan Loss Reserves Write Offs | $ 1.9 | ||
Accounting Standards Update 2016-15 | |||
Change in Accounting Estimate [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1.2 | $ 0.5 |
Conservatorship and Related M42
Conservatorship and Related Matters (Details) | Jun. 29, 2012USD ($) | Mar. 30, 2012USD ($) | Dec. 30, 2011USD ($) | Sep. 30, 2011USD ($) | Mar. 31, 2011USD ($) | Dec. 30, 2010USD ($) | Sep. 30, 2010USD ($) | Jun. 30, 2010USD ($) | Jun. 30, 2009USD ($) | Mar. 31, 2009USD ($) | Nov. 24, 2008USD ($) | Sep. 08, 2008USD ($)shares | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)numberofstrategicgoals | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)numberofstrategicgoals | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2013USD ($) |
Conservatorship and related matters line items | |||||||||||||||||||||||
Number of strategic goals | numberofstrategicgoals | 3 | 3 | |||||||||||||||||||||
Applicable capital reserve amount | $ 600,000,000 | $ 600,000,000 | $ 3,000,000,000 | ||||||||||||||||||||
Applicable capital reserve amount if we don't pay the full dividend requirement in a future period | 0 | 0 | |||||||||||||||||||||
Remaining funding available under Purchase Agreement | $ 140,500,000,000 | $ 140,500,000,000 | |||||||||||||||||||||
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% | |||||||||||||||||||||
Cash Proceeds Received Upon Issuing The Senior Preferred Stock | $ 0 | $ 0 | |||||||||||||||||||||
Increase in liquidation preference | 0 | 0 | |||||||||||||||||||||
Increase in Senior Preferred Stock | 3,000,000,000 | 3,000,000,000 | |||||||||||||||||||||
Aggregate liquidation preference on senior preferred stock | 75,336,000,000 | 75,336,000,000 | $ 72,336,000,000 | ||||||||||||||||||||
Allowance of non-ordinary course asset sales | 250,000,000 | 250,000,000 | |||||||||||||||||||||
Maximum limit of the UPB of mortgage-related investments portfolio | $ 288,400,000,000 | $ 288,400,000,000 | $ 650,000,000,000 | ||||||||||||||||||||
Annual maximum percentage of mortgage-related investments portfolio Limit | 85.00% | 85.00% | |||||||||||||||||||||
Maximum percentage of annual cap established by the Purchase Agreement | 90.00% | 90.00% | |||||||||||||||||||||
Minimum limit of the UPB of mortgage-related investments portfolio | $ 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 | $ 253,500,000,000 | $ 253,500,000,000 | |||||||||||||||||||||
Annual percentage reduction of the mortgage-related investments portfolio | 15.00% | ||||||||||||||||||||||
Aggregate dividend payments since conservatorship began | 112,400,000,000 | $ 112,400,000,000 | |||||||||||||||||||||
Expected Draw Request To Treasury Under Purchase Agreement | $ 312,000,000 | $ 312,000,000 | |||||||||||||||||||||
Basis points of each dollar of new business purchases required by GSE Act. | 0.042% | 0.042% | |||||||||||||||||||||
Payment For Cash Dividends On Senior Preferred Stock | $ 2,200,000,000 | $ 2,000,000,000 | $ 2,200,000,000 | $ 4,500,000,000 | $ 10,945,000,000 | 4,983,000,000 | $ 5,510,000,000 | ||||||||||||||||
Subsequent Event | |||||||||||||||||||||||
Conservatorship and related matters line items | |||||||||||||||||||||||
Applicable capital reserve amount | $ 3,000,000,000 | ||||||||||||||||||||||
Remaining funding available under Purchase Agreement | $ 140,200,000,000 | ||||||||||||||||||||||
Aggregate liquidation preference on senior preferred stock | 75,600,000,000 | ||||||||||||||||||||||
Payment For Cash Dividends On Senior Preferred Stock | $ 0 | ||||||||||||||||||||||
U.S. Government | |||||||||||||||||||||||
Conservatorship and related matters line items | |||||||||||||||||||||||
Amount of related party transaction | 0 | $ 0 | $ 0 | ||||||||||||||||||||
CSS | |||||||||||||||||||||||
Conservatorship and related matters line items | |||||||||||||||||||||||
Amount of related party transaction | 102,000,000 | ||||||||||||||||||||||
Senior Preferred Stock | |||||||||||||||||||||||
Conservatorship and related matters line items | |||||||||||||||||||||||
Senior preferred stock, shares issued | shares | 1,000,000 | ||||||||||||||||||||||
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | ||||||||||||||||||||||
Senior Preferred Stock, Dividend Rate | 10.00% | ||||||||||||||||||||||
Increase in liquidation preference | $ 19,000,000 | $ 146,000,000 | $ 5,992,000,000 | $ 1,479,000,000 | $ 500,000,000 | $ 100,000,000 | $ 1,800,000,000 | $ 10,600,000,000 | $ 6,100,000,000 | $ 30,800,000,000 | $ 13,800,000,000 | ||||||||||||
Increase in Senior Preferred Stock | 3,000,000,000 | 3,000,000,000 | |||||||||||||||||||||
Aggregate liquidation preference on senior preferred stock | $ 75,336,000,000 | $ 75,336,000,000 |
Securitization Activities and43
Securitization Activities and Consolidation (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Securitization Products | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | $ 3.6 | $ 1.5 |
PC Trusts | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 1,800 | 1,700 |
UPB of Issuances and Guarantees | 347.7 | 391.5 |
Other Securitization Trust | Other Securitization Products | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 8.5 | 7.5 |
Variable Interest Entity, Not Primary Beneficiary | K Certificates | ||
Variable Interest Entity [Line Items] | ||
UPB of Issuances and Guarantees | 48.5 | 40.6 |
Variable Interest Entity, Not Primary Beneficiary | SB Certificate | ||
Variable Interest Entity [Line Items] | ||
UPB of Issuances and Guarantees | 4.9 | 3.5 |
Variable Interest Entity, Not Primary Beneficiary | Senior Subordinate Securitization Products [Member] | ||
Variable Interest Entity [Line Items] | ||
UPB of Issuances and Guarantees | 6.8 | 0.8 |
Variable Interest Entity, Not Primary Beneficiary | Other Securitization Products | ||
Variable Interest Entity [Line Items] | ||
UPB of Issuances and Guarantees | $ 5.6 | $ 0.5 |
Securitization Activities and44
Securitization Activities and Consolidation - Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets [Abstract] | ||||
Cash and cash equivalents (Notes 3, 14) | $ 6,848 | $ 12,369 | $ 5,595 | $ 10,928 |
Restricted cash and cash equivalents (Notes 3, 14) | 2,963 | 9,851 | ||
Securities purchased under agreements to resell (Notes 3, 10) | 55,903 | 51,548 | ||
Mortgage loans held-for-sale | 34,763 | 18,088 | ||
Mortgage loans held-for-investment | 1,836,454 | 1,784,915 | ||
Accrued interest receivable | 6,355 | 6,135 | ||
Other assets | 13,690 | 12,358 | ||
Total assets | 2,049,776 | 2,023,376 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities [Abstract] | ||||
Accrued interest payable | 6,221 | 6,015 | ||
Debt, net | 2,034,630 | 2,002,004 | ||
Other Liabilities | 8,968 | 9,487 | ||
Total liabilities | 2,050,088 | 2,018,301 | ||
Held by consolidated trusts | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets [Abstract] | ||||
Cash and cash equivalents (Notes 3, 14) | 0 | 0 | ||
Restricted cash and cash equivalents (Notes 3, 14) | 518 | 9,431 | ||
Securities purchased under agreements to resell (Notes 3, 10) | 16,750 | 13,550 | ||
Mortgage loans held-for-sale | 0 | 0 | ||
Mortgage loans held-for-investment | 1,774,286 | 1,690,218 | ||
Accrued interest receivable | 5,747 | 5,454 | ||
Other assets | 2,738 | 3,827 | ||
Total assets | 1,800,039 | 1,722,480 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities [Abstract] | ||||
Accrued interest payable | 5,028 | 4,846 | ||
Debt, net | 1,720,996 | 1,648,683 | ||
Other Liabilities | 2 | 0 | ||
Total liabilities | $ 1,726,026 | $ 1,653,529 |
Securitization Activities and45
Securitization Activities and Consolidation - Non-Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Investments in securities | $ 84,318 | $ 111,547 |
Accrued interest receivable | 6,355 | 6,135 |
Derivative Assets, net | 375 | 747 |
Other Assets | 13,690 | 12,358 |
Liabilities [Abstract] | ||
Other Liabilities | 8,968 | 9,487 |
Variable Interest Entity, Not Primary Beneficiary | ||
Assets [Abstract] | ||
Investments in securities | 51,494 | 58,995 |
Accrued interest receivable | 233 | 254 |
Derivative Assets, net | 7 | 0 |
Other Assets | 2,591 | 1,708 |
Liabilities [Abstract] | ||
Other Liabilities | 2,489 | 1,604 |
Maximum Exposure to Loss | 200,196 | 150,227 |
Total Assets of Non-Consolidated VIEs | $ 232,762 | $ 175,713 |
Mortgage Loans and Loan Loss 46
Mortgage Loans and Loan Loss Reserves (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)numberofloans | Dec. 31, 2016USD ($)numberofloans | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Percent of Single-Family Credit Guarantee portfolio with second lien financing by third parties at origination | 9.00% | 11.00% | |
Noncash acquisition, mortgage loans held-for-investment acquired | $ 229,200 | $ 234,600 | $ 237,500 |
Transfers from advances to lenders to loans HFI | 35,900 | 30,300 | 11,600 |
REO acquired in non-cash transfer | $ 1,100 | $ 1,500 | $ 2,000 |
Held by Freddie Mac | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Allowance for loan losses as a percentage of recorded investment of mortgage loans, held for investment | 7.80% | 9.90% | |
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% | 0.20% | |
Other loss mitigation activities | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Number of Loans, Modifications, Subsequent Default | numberofloans | 7,090 | 8,083 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 900 | $ 1,000 | |
Loans discharged from Chapter 7 bankruptcy | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Number of Loans, Modifications, Subsequent Default | numberofloans | 867 | 1,154 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 100 | $ 100 | |
Single-family | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Financing Receivable, Significant Purchases | 343,000 | 388,900 | |
Financing Receivable, Significant Sales | 8,700 | 4,200 | |
Amount of mortgage loans reclassified to held-for-sale | 26,200 | 4,700 | |
SF UPB removed from Consolidated Trust | $ 6,300 | $ 6,800 | |
Number of Loans, Modifications, Subsequent Default | numberofloans | 16,172 | 18,764 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 2,574 | $ 2,932 | |
Interest rate reduction and term extension types, percentage of completed modifications | 37.00% | 43.00% | |
Principal forebearance and interest rate reductions and term extension types, percentage of completed modifications | 14.00% | 16.00% | |
Average term extension, number of months of completed modifications | 176 months | 177 months | |
Average interest rate reduction, percentage of completed modifications | 0.60% | 0.80% | |
Multifamily | |||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||
Financing Receivable, Significant Purchases | $ 5,300 | $ 6,100 | |
Financing Receivable, Significant Sales | 61,900 | 49,900 | |
Amount of mortgage loans reclassified to held-for-sale | $ 1,600 | $ 0 | |
Number of Loans, Modifications, Subsequent Default | numberofloans | 0 | 0 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 0 | $ 0 |
Mortgage Loans and Loan Loss 47
Mortgage Loans and Loan Loss Reserves - Mortgage Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | $ 37,576 | $ 18,636 |
Cost basis and fair value adjustments, net HFS | (2,813) | (548) |
Total held-for-sale loans, net | 34,763 | 18,088 |
UPB of mortgage loans - HFI | 1,816,078 | 1,771,552 |
Cost basis adjustment HFI | 29,342 | 26,794 |
Allowance for loan losses on mortgage loans held-for-investment | (8,966) | (13,431) |
Total held-for-investment mortgage loans, net | 1,836,454 | 1,784,915 |
Total loans, net | 1,871,217 | 1,803,003 |
Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 17,039 | 2,092 |
UPB of mortgage loans - HFI | 1,794,629 | 1,742,631 |
Allowance for loan losses on mortgage loans held-for-investment | (8,931) | (13,411) |
Total held-for-investment mortgage loans, net | 1,815,056 | 1,756,033 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 20,537 | 16,544 |
UPB of mortgage loans - HFI | 21,449 | 28,921 |
Allowance for loan losses on mortgage loans held-for-investment | (35) | (20) |
Total held-for-investment mortgage loans, net | 21,398 | 28,882 |
Held by Freddie Mac | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 37,576 | 18,636 |
Cost basis and fair value adjustments, net HFS | (2,813) | (548) |
Total held-for-sale loans, net | 34,763 | 18,088 |
UPB of mortgage loans - HFI | 69,595 | 108,913 |
Cost basis adjustment HFI | (2,148) | (3,755) |
Allowance for loan losses on mortgage loans held-for-investment | (5,279) | (10,461) |
Total held-for-investment mortgage loans, net | 62,168 | 94,697 |
Total loans, net | 96,931 | 112,785 |
Held by Freddie Mac | Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 17,039 | 2,092 |
UPB of mortgage loans - HFI | 51,893 | 83,040 |
Held by Freddie Mac | Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 20,537 | 16,544 |
UPB of mortgage loans - HFI | 17,702 | 25,873 |
Held by consolidated trusts | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 0 | 0 |
Cost basis and fair value adjustments, net HFS | 0 | 0 |
Total held-for-sale loans, net | 0 | 0 |
UPB of mortgage loans - HFI | 1,746,483 | 1,662,639 |
Cost basis adjustment HFI | 31,490 | 30,549 |
Allowance for loan losses on mortgage loans held-for-investment | (3,687) | (2,970) |
Total held-for-investment mortgage loans, net | 1,774,286 | 1,690,218 |
Total loans, net | 1,774,286 | 1,690,218 |
Held by consolidated trusts | Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 0 | 0 |
UPB of mortgage loans - HFI | 1,742,736 | 1,659,591 |
Held by consolidated trusts | Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 0 | 0 |
UPB of mortgage loans - HFI | $ 3,747 | $ 3,048 |
Mortgage Loans and Loan Loss 48
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,845,420 | $ 1,798,346 |
Single-Family serious delinquency rate | 1.08% | 1.00% |
UPB for Single-family reduced interest rate provision | $ 22,200 | $ 32,000 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 1,467,704 | 1,386,896 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 277,998 | 286,870 |
Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 51,587 | 55,359 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 26,698 | 40,319 |
Single Family Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,823,987 | $ 1,769,444 |
Single-Family serious delinquency rate | 1.08% | 1.00% |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,240,224 | $ 1,120,722 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 270,266 | 274,967 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 48,596 | 52,319 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 21,013 | 26,293 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 1,580,099 | 1,474,301 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 214,177 | 236,111 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 7,351 | 11,016 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 2,963 | 2,955 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 4,256 | 9,392 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 228,747 | 259,474 |
Greater Than 100 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 13,303 | 30,063 |
Greater Than 100 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 381 | 887 |
Greater Than 100 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 28 | 85 |
Greater Than 100 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 1,429 | 4,634 |
Greater Than 100 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 15,141 | $ 35,669 |
Single-Family serious delinquency rate | 8.43% | 6.80% |
Mortgage Loans and Loan Loss 49
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Multifamily Mortgage Loans, by Credit Classification (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,845,420 | $ 1,798,346 |
Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 21,433 | 28,902 |
Pass | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 20,963 | 27,830 |
Special Mention | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 301 | 502 |
Substandard | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | 169 | 570 |
Doubtful | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of held-for-investment loans | $ 0 | $ 0 |
Mortgage Loans and Loan Loss 50
Mortgage Loans and Loan Loss Reserves - Payment Status of Mortgage Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,802,770 | $ 1,759,518 |
Total recorded investment | 1,845,420 | 1,798,346 |
Non-Accrual | 14,882 | 13,383 |
Mortgage Loans in Process of Foreclosure, Amount | 4,100 | 5,300 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,431,342 | 1,354,511 |
Total recorded investment | 1,467,704 | 1,386,896 |
Non-Accrual | 12,401 | 10,868 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 275,864 | 285,373 |
Total recorded investment | 277,998 | 286,870 |
Non-Accrual | 556 | 309 |
Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 50,915 | 54,738 |
Total recorded investment | 51,587 | 55,359 |
Non-Accrual | 205 | 190 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 23,235 | 35,994 |
Total recorded investment | 26,698 | 40,319 |
Non-Accrual | 1,656 | 1,927 |
Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,781,356 | 1,730,616 |
Total recorded investment | 1,823,987 | 1,769,444 |
Non-Accrual | 14,818 | 13,294 |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 21,414 | 28,902 |
Total recorded investment | 21,433 | 28,902 |
Non-Accrual | 64 | 89 |
One month past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 21,265 | 19,757 |
One month past due | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 18,297 | 16,645 |
One month past due | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,288 | 1,010 |
One month past due | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 383 | 354 |
One month past due | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,297 | 1,748 |
One month past due | Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 21,265 | 19,757 |
One month past due | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Two months past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,543 | 5,770 |
Two months past due | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5,660 | 4,865 |
Two months past due | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 290 | 178 |
Two months past due | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 84 | 77 |
Two months past due | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 509 | 650 |
Two months past due | Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,543 | 5,770 |
Two months past due | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Three months or more past due or in foreclosure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14,842 | 13,301 |
Three months or more past due or in foreclosure | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12,405 | 10,875 |
Three months or more past due or in foreclosure | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 556 | 309 |
Three months or more past due or in foreclosure | Single-family Adjustable-rate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 205 | 190 |
Three months or more past due or in foreclosure | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,657 | 1,927 |
Three months or more past due or in foreclosure | Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14,823 | 13,301 |
Three months or more past due or in foreclosure | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 19 | $ 0 |
Mortgage Loans and Loan Loss 51
Mortgage Loans and Loan Loss Reserves - Delinquency Rates (Details) $ in Millions | Dec. 31, 2017USD ($)numberofloans | Dec. 31, 2016USD ($)numberofloans |
Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 1.08% | 1.00% |
Delinquency Rate | 0.02% | 0.03% |
Single-family | ||
Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 1.08% | 1.00% |
Total number of seriously delinquent loans | 116,662 | 107,170 |
Single-family | Non-credit-enhanced portfolio | ||
Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 1.16% | 1.02% |
Total number of seriously delinquent loans | 81,668 | 77,662 |
Single-family | Credit-enhanced portfolio | Primary mortgage insurance | ||
Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 1.43% | 1.46% |
Total number of seriously delinquent loans | 23,275 | 21,460 |
Single-family | Credit-enhanced portfolio | Other credit protection | ||
Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.53% | 0.43% |
Total number of seriously delinquent loans | 16,259 | 9,455 |
Multifamily | ||
Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.02% | 0.03% |
UPB of delinquent loans | $ | $ 40 | $ 56 |
Multifamily | Non-credit-enhanced portfolio | ||
Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.06% | 0.04% |
UPB of delinquent loans | $ | $ 24 | $ 19 |
Multifamily | Credit-enhanced portfolio | ||
Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.01% | 0.02% |
UPB of delinquent loans | $ | $ 16 | $ 37 |
Mortgage Loans and Loan Loss 52
Mortgage Loans and Loan Loss Reserves - Detail of Loan Loss Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward of Allowance for Loan Losses | ||
Beginning balance | $ 13,498 | $ 15,407 |
Provision (benefit) for credit losses | (84) | (803) |
Charge-offs | (5,055) | (1,940) |
Recoveries | 425 | 497 |
Transfers, net | 0 | 0 |
Other | 239 | 337 |
Ending balance | 9,023 | 13,498 |
Lower-of-cost-or-fair-value adjustments and expenses related to property taxes and insurance recognized when transferring loans from HFI to HFS which are not included in charge-offs | 1,200 | |
Charge-offs related to the transfer of loans from HFI to HFS | 3,800 | |
Reserve for guarantee losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 67 | 76 |
Provision (benefit) for credit losses | (6) | (1) |
Charge-offs | (4) | (8) |
Recoveries | 0 | 0 |
Transfers, net | 0 | 0 |
Other | 0 | 0 |
Ending balance | 57 | 67 |
Held by Freddie Mac | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 10,461 | 12,555 |
Provision (benefit) for credit losses | (1,432) | (1,401) |
Charge-offs | (4,943) | (1,759) |
Recoveries | 419 | 487 |
Transfers, net | 539 | 247 |
Other | 235 | 332 |
Ending balance | 5,279 | 10,461 |
Held by consolidated trusts | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 2,970 | 2,776 |
Provision (benefit) for credit losses | 1,354 | 599 |
Charge-offs | (108) | (173) |
Recoveries | 6 | 10 |
Transfers, net | (539) | (247) |
Other | 4 | 5 |
Ending balance | 3,687 | 2,970 |
Single-family | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 13,463 | 15,348 |
Provision (benefit) for credit losses | (97) | (781) |
Charge-offs | (5,051) | (1,938) |
Recoveries | 425 | 497 |
Transfers, net | 0 | 0 |
Other | 239 | 337 |
Ending balance | 8,979 | 13,463 |
Single-family | Reserve for guarantee losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 52 | 56 |
Provision (benefit) for credit losses | 0 | 4 |
Charge-offs | (4) | (8) |
Recoveries | 0 | 0 |
Transfers, net | 0 | 0 |
Other | 0 | 0 |
Ending balance | 48 | 52 |
Single-family | Held by Freddie Mac | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 10,443 | 12,517 |
Provision (benefit) for credit losses | (1,447) | (1,384) |
Charge-offs | (4,939) | (1,757) |
Recoveries | 419 | 487 |
Transfers, net | 540 | 248 |
Other | 235 | 332 |
Ending balance | 5,251 | 10,443 |
Single-family | Held by consolidated trusts | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 2,968 | 2,775 |
Provision (benefit) for credit losses | 1,350 | 599 |
Charge-offs | (108) | (173) |
Recoveries | 6 | 10 |
Transfers, net | (540) | (248) |
Other | 4 | 5 |
Ending balance | 3,680 | 2,968 |
Multifamily | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 35 | 59 |
Provision (benefit) for credit losses | 13 | (22) |
Charge-offs | (4) | (2) |
Recoveries | 0 | 0 |
Transfers, net | 0 | 0 |
Other | 0 | 0 |
Ending balance | 44 | 35 |
Multifamily | Reserve for guarantee losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 15 | 20 |
Provision (benefit) for credit losses | (6) | (5) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Transfers, net | 0 | 0 |
Other | 0 | 0 |
Ending balance | 9 | 15 |
Multifamily | Held by Freddie Mac | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 18 | 38 |
Provision (benefit) for credit losses | 15 | (17) |
Charge-offs | (4) | (2) |
Recoveries | 0 | 0 |
Transfers, net | (1) | (1) |
Other | 0 | 0 |
Ending balance | 28 | 18 |
Multifamily | Held by consolidated trusts | Allowance for loan losses | ||
Rollforward of Allowance for Loan Losses | ||
Beginning balance | 2 | 1 |
Provision (benefit) for credit losses | 4 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Transfers, net | 1 | 1 |
Other | 0 | 0 |
Ending balance | $ 7 | $ 2 |
Mortgage Loans and Loan Loss 53
Mortgage Loans and Loan Loss Reserves - TDR Activity, By Segment (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)numberofloans | Dec. 31, 2016USD ($)numberofloans | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 41,991 | 44,212 |
Post TDR Recorded Investments | $ 5,797 | $ 6,126 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 33,745 | 35,503 |
Post TDR Recorded Investments | $ 4,818 | $ 5,092 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 4,569 | 4,623 |
Post TDR Recorded Investments | $ 356 | $ 338 |
Single-family Adjustable-rate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 892 | 969 |
Post TDR Recorded Investments | $ 128 | $ 140 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 2,784 | 3,115 |
Post TDR Recorded Investments | $ 495 | $ 548 |
Single-family | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 41,990 | 44,210 |
Post TDR Recorded Investments | $ 5,797 | $ 6,118 |
Pre-TDR Recorded Investments | $ 5,800 | $ 6,200 |
Multifamily | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | numberofloans | 1 | 2 |
Post TDR Recorded Investments | $ 0 | $ 8 |
Mortgage Loans and Loan Loss 54
Mortgage Loans and Loan Loss Reserves - Payment Defaults of Completed TDR Modifications, by Segment (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)numberofloans | Dec. 31, 2016USD ($)numberofloans | |
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 | numberofloans | 13,973 | 16,139 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 2,231 | $ 2,520 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||
Number of Loans, Modifications, Subsequent Default | numberofloans | 720 | 813 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 57 | $ 66 |
Single-family Adjustable-rate | ||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||
Number of Loans, Modifications, Subsequent Default | numberofloans | 225 | 277 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 33 | $ 41 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||
Number of Loans, Modifications, Subsequent Default | numberofloans | 1,254 | 1,535 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 253 | $ 305 |
Single-family | ||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||
Number of Loans, Modifications, Subsequent Default | numberofloans | 16,172 | 18,764 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 2,574 | $ 2,932 |
Multifamily | ||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||
Number of Loans, Modifications, Subsequent Default | numberofloans | 0 | 0 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 0 | $ 0 |
Mortgage Loans and Loan Loss 55
Mortgage Loans and Loan Loss Reserves - Individially Impaired Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | $ 62,038 | $ 89,304 |
Recorded Investment | 59,369 | 85,383 |
Associated Allowance | (6,637) | (11,989) |
Average Recorded Investment | 57,958 | 88,747 |
Interest Income Recognized | 3,463 | 3,754 |
Interest Income Recognized On Cash Basis | 315 | 318 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
With no specific allowance recorded [Abstract] | ||
UPB | 3,768 | 4,963 |
Recorded Investment | 2,908 | 3,746 |
Average Recorded Investment | 3,556 | 4,033 |
Interest Income Recognized | 399 | 447 |
Interest Income Recognized On Cash Basis | 16 | 14 |
With specific allowance recorded [Abstract] | ||
UPB | 47,897 | 67,853 |
Recorded Investment | 46,783 | 66,143 |
Average Recorded Investment | 44,057 | 68,402 |
Interest Income Recognized | 2,513 | 2,668 |
Interest Income Recognized On Cash Basis | 248 | 251 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 51,665 | 72,816 |
Recorded Investment | 49,691 | 69,889 |
Associated Allowance | (5,505) | (9,678) |
Average Recorded Investment | 47,613 | 72,435 |
Interest Income Recognized | 2,912 | 3,115 |
Interest Income Recognized On Cash Basis | 264 | 265 |
Single-family 15-year amortizing fixed-rate | ||
With no specific allowance recorded [Abstract] | ||
UPB | 24 | 31 |
Recorded Investment | 21 | 26 |
Average Recorded Investment | 25 | 33 |
Interest Income Recognized | 1 | 5 |
Interest Income Recognized On Cash Basis | 0 | 0 |
With specific allowance recorded [Abstract] | ||
UPB | 752 | 847 |
Recorded Investment | 757 | 851 |
Average Recorded Investment | 599 | 884 |
Interest Income Recognized | 32 | 39 |
Interest Income Recognized On Cash Basis | 6 | 7 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 776 | 878 |
Recorded Investment | 778 | 877 |
Associated Allowance | (24) | (25) |
Average Recorded Investment | 624 | 917 |
Interest Income Recognized | 33 | 44 |
Interest Income Recognized On Cash Basis | 6 | 7 |
Single-family Adjustable-rate | ||
With no specific allowance recorded [Abstract] | ||
UPB | 259 | 292 |
Recorded Investment | 256 | 289 |
Average Recorded Investment | 292 | 259 |
Interest Income Recognized | 11 | 9 |
Interest Income Recognized On Cash Basis | 0 | 0 |
With specific allowance recorded [Abstract] | ||
UPB | 232 | 319 |
Recorded Investment | 228 | 312 |
Average Recorded Investment | 261 | 384 |
Interest Income Recognized | 9 | 14 |
Interest Income Recognized On Cash Basis | 3 | 3 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 491 | 611 |
Recorded Investment | 484 | 601 |
Associated Allowance | (14) | (19) |
Average Recorded Investment | 553 | 643 |
Interest Income Recognized | 20 | 23 |
Interest Income Recognized On Cash Basis | 3 | 3 |
Single-family Alt-A, interest-only, and option ARM | ||
With no specific allowance recorded [Abstract] | ||
UPB | 1,558 | 1,935 |
Recorded Investment | 1,297 | 1,561 |
Average Recorded Investment | 1,471 | 1,417 |
Interest Income Recognized | 110 | 117 |
Interest Income Recognized On Cash Basis | 5 | 3 |
With specific allowance recorded [Abstract] | ||
UPB | 7,407 | 12,699 |
Recorded Investment | 6,987 | 12,105 |
Average Recorded Investment | 7,366 | 12,916 |
Interest Income Recognized | 378 | 437 |
Interest Income Recognized On Cash Basis | 33 | 34 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 8,965 | 14,634 |
Recorded Investment | 8,284 | 13,666 |
Associated Allowance | (1,087) | (2,258) |
Average Recorded Investment | 8,837 | 14,333 |
Interest Income Recognized | 488 | 554 |
Interest Income Recognized On Cash Basis | 38 | 37 |
Single-family | ||
With no specific allowance recorded [Abstract] | ||
UPB | 5,609 | 7,221 |
Recorded Investment | 4,482 | 5,622 |
Average Recorded Investment | 5,344 | 5,742 |
Interest Income Recognized | 521 | 578 |
Interest Income Recognized On Cash Basis | 21 | 17 |
With specific allowance recorded [Abstract] | ||
UPB | 56,288 | 81,718 |
Recorded Investment | 54,755 | 79,411 |
Average Recorded Investment | 52,283 | 82,586 |
Interest Income Recognized | 2,932 | 3,158 |
Interest Income Recognized On Cash Basis | 290 | 295 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 61,897 | 88,939 |
Recorded Investment | 59,237 | 85,033 |
Associated Allowance | (6,630) | (11,980) |
Average Recorded Investment | 57,627 | 88,328 |
Interest Income Recognized | 3,453 | 3,736 |
Interest Income Recognized On Cash Basis | 311 | 312 |
Multifamily | ||
With no specific allowance recorded [Abstract] | ||
UPB | 106 | 321 |
Recorded Investment | 97 | 308 |
Average Recorded Investment | 286 | 356 |
Interest Income Recognized | 9 | 15 |
Interest Income Recognized On Cash Basis | 3 | 4 |
With specific allowance recorded [Abstract] | ||
UPB | 35 | 44 |
Recorded Investment | 35 | 42 |
Average Recorded Investment | 45 | 63 |
Interest Income Recognized | 1 | 3 |
Interest Income Recognized On Cash Basis | 1 | 2 |
Individually Impaired Mortgage Loans [Abstract] | ||
UPB | 141 | 365 |
Recorded Investment | 132 | 350 |
Associated Allowance | (7) | (9) |
Average Recorded Investment | 331 | 419 |
Interest Income Recognized | 10 | 18 |
Interest Income Recognized On Cash Basis | $ 4 | $ 6 |
Mortgage Loans and Loan Loss 56
Mortgage Loans and Loan Loss Reserves - Net Investment in Mortgage Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment, collectively evaluated | $ 1,786,051 | $ 1,712,963 |
Recorded investment, individually evaluated | 59,369 | 85,383 |
Total recorded investment | 1,845,420 | 1,798,346 |
Allowance for loan losses, collectively evaluated | (2,329) | (1,442) |
Allowance for loan losses, individually evaluated | (6,637) | (11,989) |
Total ending balance of the allowance | (8,966) | (13,431) |
Total held-for-investment mortgage loans, net | 1,836,454 | 1,784,915 |
Single-family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment, collectively evaluated | 1,764,750 | 1,684,411 |
Recorded investment, individually evaluated | 59,237 | 85,033 |
Total recorded investment | 1,823,987 | 1,769,444 |
Allowance for loan losses, collectively evaluated | (2,301) | (1,431) |
Allowance for loan losses, individually evaluated | (6,630) | (11,980) |
Total ending balance of the allowance | (8,931) | (13,411) |
Total held-for-investment mortgage loans, net | 1,815,056 | 1,756,033 |
Multifamily | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment, collectively evaluated | 21,301 | 28,552 |
Recorded investment, individually evaluated | 132 | 350 |
Total recorded investment | 21,433 | 28,902 |
Allowance for loan losses, collectively evaluated | (28) | (11) |
Allowance for loan losses, individually evaluated | (7) | (9) |
Total ending balance of the allowance | (35) | (20) |
Total held-for-investment mortgage loans, net | $ 21,398 | $ 28,882 |
Guaranee Activities (Details)
Guaranee Activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guarantor Obligations [Line Items] | ||
Cash advances related to multifamily liquidity guarantees | $ 0 | $ 0 |
Single-family long-term standby commitments | ||
Guarantor Obligations [Line Items] | ||
UPB of issuances and guarantees | 500,000,000 | 3,600,000,000 |
Multifamily housing revenue bonds | ||
Guarantor Obligations [Line Items] | ||
UPB of issuances and guarantees | $ 1,100,000,000 | $ 1,700,000,000 |
Guarantee Activities - Financia
Guarantee Activities - Financial Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantor Obligations [Line Items] | |||
Recognized Liability | $ 3,081 | $ 2,208 | |
Reserve for guarantee losses | 9,023 | 13,498 | $ 15,407 |
Payment Guarantee | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | 9,661 | 6,396 | |
Recognized Liability | $ 141 | $ 127 | |
Maximum Remaining Term | 28 years | 29 years | |
Single-family | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | $ 17,081 | $ 11,729 | |
Recognized Liability | 310 | 228 | |
Reserve for guarantee losses | 8,979 | 13,463 | 15,348 |
Single-family | Securitization activity guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | 10,817 | 5,016 | |
Recognized Liability | $ 120 | $ 22 | |
Maximum Remaining Term | 40 years | 40 years | |
Single-family | Other mortgage-related guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | $ 6,264 | $ 6,713 | |
Recognized Liability | $ 190 | $ 206 | |
Maximum Remaining Term | 31 years | 32 years | |
Multifamily | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | $ 198,656 | $ 154,943 | |
Recognized Liability | 2,771 | 1,983 | |
Reserve for guarantee losses | 44 | 35 | 59 |
Multifamily | Securitization activity guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | 188,768 | 145,211 | |
Recognized Liability | $ 2,305 | $ 1,510 | |
Maximum Remaining Term | 40 years | 39 years | |
Multifamily | Other mortgage-related guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum Exposure | $ 9,888 | $ 9,732 | |
Recognized Liability | $ 466 | $ 473 | |
Maximum Remaining Term | 36 years | 34 years | |
Reserve for guarantee losses | |||
Guarantor Obligations [Line Items] | |||
Reserve for guarantee losses | $ 57 | $ 67 | 76 |
Reserve for guarantee losses | Single-family | |||
Guarantor Obligations [Line Items] | |||
Reserve for guarantee losses | 48 | 52 | 56 |
Reserve for guarantee losses | Multifamily | |||
Guarantor Obligations [Line Items] | |||
Reserve for guarantee losses | $ 9 | $ 15 | $ 20 |
Credit Enhancements (Details)
Credit Enhancements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Single-family | ||
Credit Enhancement [Line Items] | ||
Collateral posted by counterparties on ACIS transactions | $ 1,100 | $ 877 |
Credit Enhancements - Attached
Credit Enhancements - Attached Credit Enhancements (Details) - Attached credit enhancements - Single-family - Primary mortgage insurance - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Enhancement [Line Items] | ||
Total current and protected UPB | $ 334,189 | $ 291,217 |
Maximum coverage | $ 85,429 | $ 74,345 |
Credit Enhancements - Freestand
Credit Enhancements - Freestanding Credit Enhancements (Details) - Freestanding credit enhancements - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Enhancement [Line Items] | ||
Maximum coverage | $ 46,364 | $ 38,473 |
Single-family | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 14,949 | 13,250 |
Single-family | Non-consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 8,953 | 2,701 |
Maximum coverage | 1,734 | 522 |
Single-family | ACIS | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 617,730 | 453,670 |
Maximum coverage | 6,736 | 5,355 |
Single-family | Other | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 15,975 | 12,827 |
Maximum coverage | 6,479 | 7,373 |
Multifamily | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 31,415 | 25,223 |
Multifamily | Non-consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 187,299 | 143,802 |
Maximum coverage | 30,689 | 24,522 |
Multifamily | Other | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 1,833 | 1,159 |
Maximum coverage | $ 726 | $ 701 |
Credit Enhancements - Debt with
Credit Enhancements - Debt with Embedded Credit Enhancements (Details) - Debt with Embedded Credit Enhancements - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Enhancement [Line Items] | ||
Maximum coverage | $ 18,284 | $ 14,685 |
Single-family | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 17,967 | 14,590 |
Single-family | Consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 3,330 | 1,287 |
Maximum coverage | 179 | 83 |
Single-family | STACR debt notes | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 604,356 | 427,978 |
Maximum coverage | 17,788 | 14,507 |
Multifamily | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 317 | 95 |
Multifamily | Consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 1,800 | 0 |
Maximum coverage | 180 | 0 |
Multifamily | SCR debt notes | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 2,732 | 1,898 |
Maximum coverage | $ 137 | $ 95 |
Investments in Securities (Deta
Investments in Securities (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)numberofsecurities | Dec. 31, 2017USD ($)numberofsecurities | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Held-to-maturity securities | $ 0 | $ 0 | $ 0 | |
Net unrealized gains (losses) on trading securities held at balance sheets date | (365,000,000) | (791,000,000) | $ (856,000,000) | |
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value | 41,100,000,000 | 41,100,000,000 | ||
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value | 1,900,000,000 | 1,900,000,000 | ||
Total gross unrealized losses | $ 500,000,000 | $ 500,000,000 | ||
Separate securities in gross unrealized loss position | numberofsecurities | 290 | 290 | ||
Net impairment of available-for-sale securities recognized in earnings | $ 18,000,000 | 191,000,000 | 292,000,000 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 1,100,000,000 | 1,100,000,000 | 4,100,000,000 | 5,300,000,000 |
Transfer to investments | 900,000,000 | 0 | 300,000,000 | |
Transfer from investments | $ 200,000,000 | $ 0 | $ 500,000,000 | |
Purchase of trading securities on account | 2,800,000,000 | |||
Assets incurred but not yet received | 2,900,000,000 | |||
Non-agency CMBS | Multifamily [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Reclassification of available-for-sale securities to trading securities | 1,300,000,000 | |||
Transfer securities to trust in exchange for other securities | $ 2,900,000,000 |
Investments in Securities - Inv
Investments in Securities - Investments in Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading Securities | $ 40,721 | $ 44,790 |
Available-for-sale Securities | 43,597 | 66,757 |
Total | $ 84,318 | $ 111,547 |
Investments in Securities - Tra
Investments in Securities - Trading Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trading Securities [Line Items] | ||
Trading, at fair value | $ 40,721 | $ 44,790 |
Mortage-related securities | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 17,902 | 23,653 |
Freddie Mac | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 12,235 | 15,343 |
Other agency | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 3,574 | 8,161 |
Non-agency RMBS | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 750 | 113 |
Non-agency CMBS | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 1,343 | 36 |
Non-mortgage-related securities | ||
Trading Securities [Line Items] | ||
Trading, at fair value | $ 22,819 | $ 21,137 |
Investments in Securities - Ava
Investments in Securities - Available-For-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 18 | $ 191 | $ 292 |
Amortized Cost | 42,578 | 65,349 | |
Gross Unrealized Gains | 1,509 | 2,121 | |
Available-for-sale, at fair value | 43,597 | 66,757 | |
Freddie Mac | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 35,433 | 43,671 | |
Gross Unrealized Gains | 499 | 563 | |
Available-for-sale, at fair value | 35,470 | 43,652 | |
Other agency | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,008 | 4,127 | |
Gross Unrealized Gains | 56 | 119 | |
Available-for-sale, at fair value | 2,053 | 4,221 | |
Non-agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,012 | 10,606 | |
Gross Unrealized Gains | 927 | 1,271 | |
Available-for-sale, at fair value | 3,933 | 11,797 | |
Non-agency CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,773 | 6,288 | |
Gross Unrealized Gains | 22 | 160 | |
Available-for-sale, at fair value | 1,784 | 6,422 | |
Obligations of states and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 352 | 657 | |
Gross Unrealized Gains | 5 | 8 | |
Available-for-sale, at fair value | 357 | 665 | |
Other-than-temporary impairment | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (14) | (65) | |
Other-than-temporary impairment | Freddie Mac | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | 0 | 0 | |
Other-than-temporary impairment | Other agency | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | 0 | 0 | |
Other-than-temporary impairment | Non-agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (5) | (62) | |
Other-than-temporary impairment | Non-agency CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (9) | (3) | |
Other-than-temporary impairment | Obligations of states and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | 0 | 0 | |
Temporary impairment | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (476) | (648) | |
Temporary impairment | Freddie Mac | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (462) | (582) | |
Temporary impairment | Other agency | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (11) | (25) | |
Temporary impairment | Non-agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (1) | (18) | |
Temporary impairment | Non-agency CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | (2) | (23) | |
Temporary impairment | Obligations of states and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Losses | $ 0 | $ 0 |
Investments in Securities - A67
Investments in Securities - Available-For-Sale Securities in a Gross Unrealized Loss Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | $ 11,420 | $ 21,103 |
Less than 12 Months Gross Unrealized Losses | (109) | (568) |
12 Months or Greater Fair Value | 10,508 | 6,164 |
12 Months or Greater Gross Unrealized Losses | (381) | (145) |
Freddie Mac | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | 10,337 | 19,786 |
Less than 12 Months Gross Unrealized Losses | (107) | (559) |
12 Months or Greater Fair Value | 9,251 | 1,732 |
12 Months or Greater Gross Unrealized Losses | (355) | (23) |
Other agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | 40 | 542 |
Less than 12 Months Gross Unrealized Losses | 0 | (6) |
12 Months or Greater Fair Value | 1,079 | 2,040 |
12 Months or Greater Gross Unrealized Losses | (11) | (19) |
Non-agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | 5 | 309 |
Less than 12 Months Gross Unrealized Losses | 0 | (1) |
12 Months or Greater Fair Value | 105 | 2,188 |
12 Months or Greater Gross Unrealized Losses | (6) | (79) |
Non-agency CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | 1,026 | 383 |
Less than 12 Months Gross Unrealized Losses | (2) | (2) |
12 Months or Greater Fair Value | 52 | 204 |
12 Months or Greater Gross Unrealized Losses | (9) | (24) |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months Fair Value | 12 | 83 |
Less than 12 Months Gross Unrealized Losses | 0 | 0 |
12 Months or Greater Fair Value | 21 | 0 |
12 Months or Greater Gross Unrealized Losses | $ 0 | $ 0 |
Investments in Securities - Gro
Investments in Securities - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains | $ 1,792 | $ 1,062 | $ 1,371 |
Gross realized losses | (66) | (91) | (33) |
Net realized gains (losses) | $ 1,726 | $ 971 | $ 1,338 |
Debt Securities and Subordina69
Debt Securities and Subordinated Borrowings (Details) $ in Billions | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Debt limit as percentage of mortgage assets | 120.00% |
Debt cap under Purchase Agreement for the current year | $ 407.2 |
Debt cap under Purchase Agreement for the following year | 346.1 |
Debt cap aggregate indebtedness | $ 316.7 |
Debt Securities and Subordina70
Debt Securities and Subordinated Borrowings - Total Debt, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 1,100 | $ 4,100 | $ 5,300 |
Debt Net [Abstract] | |||
Long-term Debt Balance, Net | 1,961,561 | ||
Total Debt, Net | 2,034,630 | 2,002,004 | |
Interest Expense [Abstract] | |||
Interest Expense, Total | 53,643 | 50,786 | 52,144 |
Held by consolidated trusts | |||
Debt Net [Abstract] | |||
Total Debt, Net | 1,720,996 | 1,648,683 | |
Interest Expense [Abstract] | |||
Interest Expense, Total | 47,656 | 44,599 | 45,536 |
Held by Freddie Mac | |||
Debt Net [Abstract] | |||
Short-term Debt Balance Net | 73,069 | 71,451 | |
Long-term Debt Balance, Net | 240,565 | 281,870 | |
Total Debt, Net | 313,634 | 353,321 | |
Interest Expense [Abstract] | |||
Interest Expense, Short-term Borrowings | 615 | 350 | 173 |
Interest Expense, Long-term Debt | 5,372 | 5,837 | 6,435 |
Interest Expense, Total | $ 5,987 | $ 6,187 | $ 6,608 |
Debt Securities and Subordina71
Debt Securities and Subordinated Borrowings - Debt Securities of Consolidated Trusts Held by Third Parties (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt, Net | $ 2,034,630 | $ 2,002,004 |
Debt securities recorded at fair value | 5,799 | 6,010 |
Held by consolidated trusts | ||
Debt Instrument [Line Items] | ||
UPB | 1,672,605 | 1,602,162 |
Debt, Net | $ 1,720,996 | $ 1,648,683 |
Effective rate for debt securities of consolidated trusts held by third parties | 2.84% | 2.63% |
Debt securities recorded at fair value | $ 639 | $ 144 |
Held by consolidated trusts | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | 1,668,729 | 1,599,114 |
Debt, Net | 1,717,078 | 1,645,458 |
Held by consolidated trusts | Multifamily | ||
Debt Instrument [Line Items] | ||
UPB | 3,876 | 3,048 |
Debt, Net | $ 3,918 | $ 3,225 |
Weighted Average Coupon | 3.99% | 4.63% |
Held by consolidated trusts | Single-family 30-year or more, fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 1,278,911 | $ 1,193,329 |
Debt, Net | $ 1,318,350 | $ 1,229,849 |
Weighted Average Coupon | 3.68% | 3.71% |
Held by consolidated trusts | Single-family 20-year fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 73,866 | $ 74,033 |
Debt, Net | $ 76,022 | $ 76,331 |
Weighted Average Coupon | 3.43% | 3.49% |
Held by consolidated trusts | Single-family 15-year fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 260,633 | $ 267,739 |
Debt, Net | $ 266,241 | $ 273,978 |
Weighted Average Coupon | 2.86% | 2.90% |
Held by consolidated trusts | Single-family Adjustable-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 47,169 | $ 52,991 |
Debt, Net | $ 48,220 | $ 54,205 |
Weighted Average Coupon | 2.85% | 2.69% |
Held by consolidated trusts | Single-family Interest-only | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 7,303 | $ 10,007 |
Debt, Net | $ 7,379 | $ 10,057 |
Weighted Average Coupon | 3.74% | 3.47% |
Held by consolidated trusts | FHA/VA | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 847 | $ 1,015 |
Debt, Net | $ 866 | $ 1,038 |
Weighted Average Coupon | 4.85% | 4.92% |
Debt Securities and Subordina72
Debt Securities and Subordinated Borrowings - Other Short-Term Debt (Details) - Held by Freddie Mac - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Other short-term debt par value | $ 73,190 | $ 71,517 |
Other short-term debt carrying amount | $ 73,069 | $ 71,451 |
Other short-term debt weighted average effective rate | 1.14% | 0.47% |
Discount notes and Reference Bills | ||
Short-term Debt [Line Items] | ||
Other short-term debt par value | $ 45,717 | $ 61,042 |
Other short-term debt carrying amount | $ 45,596 | $ 60,976 |
Other short-term debt weighted average effective rate | 1.19% | 0.47% |
Medium-term notes | ||
Short-term Debt [Line Items] | ||
Other short-term debt par value | $ 17,792 | $ 7,435 |
Other short-term debt carrying amount | $ 17,792 | $ 7,435 |
Other short-term debt weighted average effective rate | 1.03% | 0.41% |
Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Other short-term debt par value | $ 9,681 | $ 3,040 |
Other short-term debt carrying amount | $ 9,681 | $ 3,040 |
Other short-term debt weighted average effective rate | 1.06% | 0.42% |
Debt Securities and Subordina73
Debt Securities and Subordinated Borrowings - Other Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Other long-term debt carrying amount | $ 1,961,561 | |
Held by Freddie Mac | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 242,916 | $ 285,226 |
Other long-term debt carrying amount | $ 240,565 | $ 281,870 |
Other long-term debt weighted average effective rate | 2.04% | 1.81% |
Long-term Debt, Fair Value | $ 5,160 | $ 5,866 |
Held by Freddie Mac | Other senior debt: | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 242,463 | 284,773 |
Other long-term debt carrying amount | 240,171 | 281,502 |
Held by Freddie Mac | Hedging-related basis adjustment | ||
Debt Instrument [Line Items] | ||
Other long-term debt carrying amount | (79) | 15 |
Held by Freddie Mac | Other | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 0 | 438 |
Other long-term debt carrying amount | $ 0 | $ 281 |
Other long-term debt weighted average effective rate | 0.00% | 5.93% |
Held by Freddie Mac | Other subordinated debt: | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 453 | $ 453 |
Other long-term debt carrying amount | 394 | 368 |
Held by Freddie Mac | Fixed-rate | Medium-term notes - callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 86,311 | 76,412 |
Other long-term debt carrying amount | $ 86,284 | $ 76,383 |
Other long-term debt weighted average effective rate | 1.47% | 1.24% |
Held by Freddie Mac | Fixed-rate | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 10,839 | $ 13,742 |
Other long-term debt carrying amount | $ 10,973 | $ 13,987 |
Other long-term debt weighted average effective rate | 1.40% | 1.08% |
Held by Freddie Mac | Fixed-rate | Reference Notes securities - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 79,991 | $ 118,702 |
Other long-term debt carrying amount | $ 80,019 | $ 118,727 |
Other long-term debt weighted average effective rate | 2.17% | 2.17% |
Held by Freddie Mac | Fixed-rate | STACR and SCR | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 137 | $ 95 |
Other long-term debt carrying amount | $ 140 | $ 95 |
Other long-term debt weighted average effective rate | 12.77% | 13.00% |
Held by Freddie Mac | Fixed-rate | Other subordinated debt: | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 121 | $ 121 |
Other long-term debt carrying amount | $ 121 | $ 120 |
Other long-term debt weighted average effective rate | 7.83% | 7.84% |
Held by Freddie Mac | Variable-rate | Medium-term notes - callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 27,510 | $ 21,008 |
Other long-term debt carrying amount | $ 27,475 | $ 20,972 |
Other long-term debt weighted average effective rate | 1.95% | 1.94% |
Held by Freddie Mac | Variable-rate | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 14,746 | $ 33,077 |
Other long-term debt carrying amount | $ 14,746 | $ 33,076 |
Other long-term debt weighted average effective rate | 0.68% | 0.48% |
Held by Freddie Mac | Variable-rate | STACR and SCR | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 17,788 | $ 14,507 |
Other long-term debt carrying amount | $ 18,198 | $ 14,745 |
Other long-term debt weighted average effective rate | 5.00% | 4.34% |
Held by Freddie Mac | Zero-coupon | Medium-term notes - callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 0 | $ 1,000 |
Other long-term debt carrying amount | $ 0 | $ 296 |
Other long-term debt weighted average effective rate | 0.00% | 6.17% |
Held by Freddie Mac | Zero-coupon | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 5,141 | $ 5,792 |
Other long-term debt carrying amount | $ 2,415 | $ 2,925 |
Other long-term debt weighted average effective rate | 5.94% | 5.01% |
Held by Freddie Mac | Zero-coupon | Other subordinated debt: | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 332 | $ 332 |
Other long-term debt carrying amount | $ 273 | $ 248 |
Other long-term debt weighted average effective rate | 10.51% | 10.51% |
Debt Securities and Subordina74
Debt Securities and Subordinated Borrowings - Contractual Maturity of Other Long-term Debt and Debt Securities of Consolidated Trusts Held by Third Parties (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Contractual maturities of long term debt and debt securities of consolidated trusts held by third parties | ||
Debt securities of consolidated trusts held by third parties, STACR and SCR | $ 1,690,530 | |
Total | 1,915,521 | |
Net discounts, premiums, hedge-related and other basis adjustments | 46,040 | |
Long-term Debt | 1,961,561 | |
Held by Freddie Mac | ||
Contractual maturities of long term debt and debt securities of consolidated trusts held by third parties | ||
Other long-term debt - 2018 | 70,557 | |
Other long-term debt - 2019 | 57,689 | |
Other long-term debt - 2020 | 38,117 | |
Other long-term debt - 2021 | 22,809 | |
Other long-term debt - 2022 | 18,538 | |
Other long-term debt - Thereafter | 17,281 | |
Long-term Debt | $ 240,565 | $ 281,870 |
Derivatives (Details)
Derivatives (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)category | Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of derivative categories | category | 3 | |
Derivative Instruments, Losses Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ | $ 164 | $ 192 |
Derivatives - Derivative Assets
Derivatives - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional or contractual amount | $ 1,010,300 | $ 899,902 |
Derivative interest receivable | 1,407 | 1,442 |
Netting adjustments to derivative assets | (9,870) | (12,963) |
Derivative Assets, net | 375 | 747 |
Derivative interest payable | (1,596) | (1,770) |
Netting adjustments to derivative liabilities | 8,816 | 13,667 |
Derivative liabilities, net | (269) | (795) |
Commitments | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 44 | 289 |
Other | ||
Derivative [Line Items] | ||
Derivative Assets, net | 52 | 290 |
Derivative liabilities, net | (129) | (199) |
Not Designated as Hedging Instrument, Economic Hedge | ||
Derivative [Line Items] | ||
Notional or contractual amount | 857,546 | 899,902 |
Derivative assets at fair value | 7,448 | 12,268 |
Derivative liabilities at fair value | (6,484) | (12,692) |
Not Designated as Hedging Instrument, Economic Hedge | CDX Swaption | ||
Derivative [Line Items] | ||
Notional or contractual amount | 13,400 | 10,900 |
Derivative assets at fair value | 5 | 5 |
Not Designated as Hedging Instrument, Economic Hedge | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional or contractual amount | 404,361 | 586,033 |
Derivative assets at fair value | 2,872 | 6,924 |
Derivative liabilities at fair value | (6,234) | (12,387) |
Not Designated as Hedging Instrument, Economic Hedge | Receive-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 213,717 | 313,106 |
Derivative assets at fair value | 2,121 | 4,337 |
Derivative liabilities at fair value | (1,224) | (2,703) |
Not Designated as Hedging Instrument, Economic Hedge | Pay-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 185,400 | 271,477 |
Derivative assets at fair value | 751 | 2,586 |
Derivative liabilities at fair value | (5,008) | (9,684) |
Not Designated as Hedging Instrument, Economic Hedge | Basis (floating to floating) | ||
Derivative [Line Items] | ||
Notional or contractual amount | 5,244 | 1,450 |
Derivative assets at fair value | 0 | 1 |
Derivative liabilities at fair value | (2) | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Option-based | ||
Derivative [Line Items] | ||
Notional or contractual amount | 125,118 | 124,392 |
Derivative assets at fair value | 4,524 | 5,054 |
Derivative liabilities at fair value | (121) | (106) |
Not Designated as Hedging Instrument, Economic Hedge | Call swaptions | Purchased | ||
Derivative [Line Items] | ||
Notional or contractual amount | 58,975 | 60,730 |
Derivative assets at fair value | 2,709 | 2,817 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Call swaptions | Written | ||
Derivative [Line Items] | ||
Notional or contractual amount | 4,650 | 1,350 |
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | (101) | (78) |
Not Designated as Hedging Instrument, Economic Hedge | Put swaptions | Purchased | ||
Derivative [Line Items] | ||
Notional or contractual amount | 47,810 | 48,080 |
Derivative assets at fair value | 1,058 | 1,442 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Put swaptions | Written | ||
Derivative [Line Items] | ||
Notional or contractual amount | 3,000 | 3,200 |
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | (20) | (28) |
Not Designated as Hedging Instrument, Economic Hedge | Other option-based derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 10,683 | 11,032 |
Derivative assets at fair value | 757 | 795 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Futures | ||
Derivative [Line Items] | ||
Notional or contractual amount | 267,385 | 138,294 |
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Commitments | ||
Derivative [Line Items] | ||
Notional or contractual amount | 54,207 | 45,353 |
Derivative assets at fair value | 44 | 289 |
Derivative liabilities at fair value | (64) | (151) |
Not Designated as Hedging Instrument, Economic Hedge | Credit derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 3,569 | 2,951 |
Derivative assets at fair value | 7 | 1 |
Derivative liabilities at fair value | (46) | (27) |
Not Designated as Hedging Instrument, Economic Hedge | Other | ||
Derivative [Line Items] | ||
Notional or contractual amount | 2,906 | 2,879 |
Derivative assets at fair value | 1 | 0 |
Derivative liabilities at fair value | (19) | (21) |
Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional or contractual amount | 152,754 | 0 |
Derivative assets at fair value | 1,390 | 0 |
Derivative liabilities at fair value | (1,005) | 0 |
Designated as Hedging Instrument | Fair Value Hedging | Receive-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 83,352 | 0 |
Derivative assets at fair value | 2 | 0 |
Derivative liabilities at fair value | (714) | 0 |
Designated as Hedging Instrument | Fair Value Hedging | Pay-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 69,402 | 0 |
Derivative assets at fair value | 1,388 | 0 |
Derivative liabilities at fair value | $ (291) | $ 0 |
Derivatives - Gains and Losses
Derivatives - Gains and Losses on Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | $ (1,988) | $ (274) | $ (2,696) |
Accrual of periodic settlements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (1,590) | (1,760) | (2,198) |
Accrual of periodic settlements | Receive-fixed | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 1,511 | 2,316 | 2,568 |
Accrual of periodic settlements | Pay-fixed | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (3,101) | (4,077) | (4,768) |
Accrual of periodic settlements | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 0 | 1 | 2 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 626 | 178 | (778) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Receive-fixed | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (1,343) | (3,539) | 35 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Pay-fixed | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 1,972 | 3,717 | (811) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Basis (floating to floating) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (3) | 0 | (2) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Option-based | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (1,041) | 421 | 258 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Call swaptions | Purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (404) | 234 | 371 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Call swaptions | Written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 24 | (45) | (9) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Put swaptions | Purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (673) | 210 | (249) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Put swaptions | Written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 50 | 35 | 77 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Other option-based derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (38) | (13) | 68 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Other Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 17 | 887 | 22 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 144 | 334 | (5) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (91) | 631 | 63 |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Credit derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (29) | (75) | (37) |
Not Designated as Hedging Instrument, Economic Hedge | Derivative gains (losses) excluding accrual of periodic settlements | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | $ (7) | $ (3) | $ 1 |
Derivatives - Gains and Losse78
Derivatives - Gains and Losses on Fair Value Hedge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income, Mortgage Loans | $ 63,735 | $ 61,040 | $ 62,226 |
Interest Expense | 53,643 | 50,786 | 52,144 |
Other Income | 7,480 | $ 1,254 | $ (879) |
Interest rate risk on held-for-investment mortgage loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest accruals on fair value hedging derivatives for held-for-investment loans | (83) | ||
Interest rate risk on held-for-investment mortgage loans | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (107) | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 313 | ||
Interest rate risk on held-for-investment mortgage loans | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | ||
Interest rate risk on held-for-investment mortgage loans | Other income (loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 351 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (215) | ||
Interest rate risk on debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest accrual on fair value hedging derivatives for debt | 8 | ||
Interest rate risk on debt | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | ||
Interest rate risk on debt | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 93 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (53) | ||
Interest rate risk on debt | Other income (loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0 |
Derivatives - Cumulative Basis
Derivatives - Cumulative Basis Adjustment on Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount mortgage loans held-for-investment hedged asset | $ 128,140 | $ 0 |
Carrying amount debt hedged liability | (92,277) | (8,546) |
Total basis adjustment cumulative amount for hedged asset | 198 | 0 |
Total basis adjustment cumulative amount for hedged liability | 79 | (15) |
Basis adjustment amount for hedged asset - discontinued hedge | 198 | 0 |
Basis adjustment amount for hedged liability - discontinued hedge | $ (14) | $ (15) |
Collateral and Offsetting of 80
Collateral and Offsetting of Assets and Liabilities (Details) $ in Millions | Dec. 31, 2017USD ($)numberofcounterparties | Dec. 31, 2016USD ($) |
Offsetting Assets [Line Items] | ||
Maximum loss after applying netting agreements and collateral | $ 170 | $ 394 |
Commitments | ||
Offsetting Assets [Line Items] | ||
Total exposure on our commitments | 44 | 289 |
OTC derivatives | ||
Offsetting Assets [Line Items] | ||
Maximum loss after applying netting agreements and collateral | 41 | $ 51 |
Derivatives in a net liability position | 800 | |
Collateral already posted, aggregate fair value | 700 | |
Additional Collateral, Aggregate Fair Value | 99 | |
Cash pledged to us as collateral that was classified as restricted cash on BS | $ 2,400 | |
OTC derivatives | Net uncollateralized exposure to derivative counterparties | S&P equivalent investment grade rating | ||
Offsetting Assets [Line Items] | ||
Number of counterparties | numberofcounterparties | 4 |
Collateral and Offsetting of 81
Collateral and Offsetting of Assets and Liabilities - Offsetting of Financial Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Assets: | ||
Gross Amount Recognized | $ 10,245 | $ 13,710 |
Derivative Asset, Fair Value, Gross Liability | (7,765) | (11,041) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (2,105) | (1,922) |
Derivative Assets, net | 375 | 747 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (205) | (353) |
Net Amount | 170 | 394 |
Securities purchased under agreements to resell: | ||
Gross Amount Recognized | 55,903 | 51,548 |
Counterparty netting | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | 55,903 | 51,548 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (55,903) | (51,548) |
Net Amount | 0 | 0 |
Total: | ||
Gross Amount Recognized | 66,148 | 65,258 |
Counterparty netting | (7,765) | (11,041) |
Cash Collateral Received For Derivatives And Securities Purchased Under Agreements To Resell | (2,105) | (1,922) |
Net Amount Presented in the Consolidated Balance Sheets | 56,278 | 52,295 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (56,108) | (51,901) |
Net Amount | 170 | 394 |
Other | ||
Derivative Assets: | ||
Gross Amount Recognized | 52 | 290 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 |
Derivative Assets, net | 52 | 290 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 52 | 290 |
OTC derivatives | ||
Derivative Assets: | ||
Gross Amount Recognized | 7,648 | 8,531 |
Derivative Asset, Fair Value, Gross Liability | (5,499) | (6,367) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (1,903) | (1,760) |
Derivative Assets, net | 246 | 404 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (205) | (353) |
Net Amount | 41 | 51 |
Cleared and exchange-traded derivatives | ||
Derivative Assets: | ||
Gross Amount Recognized | 2,545 | 4,889 |
Derivative Asset, Fair Value, Gross Liability | (2,266) | (4,674) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (202) | (162) |
Derivative Assets, net | 77 | 53 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 77 | 53 |
Securities purchased under agreements to resell | ||
Securities purchased under agreements to resell: | ||
Cash Collateral Netting | 0 | 0 |
Total: | ||
Securities Held as Collateral, at Fair Value | $ 3,400 | $ 4,000 |
Collateral and Offsetting of 82
Collateral and Offsetting of Assets and Liabilities - Offsetting of Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Liabilities: | ||
Gross Amount Recognized | $ (9,085) | $ (14,462) |
Counterparty netting | 7,765 | 11,072 |
Cash collateral netting | 1,051 | 2,595 |
Derivative liabilities, net | (269) | (795) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 274 |
Net Amount | (269) | (521) |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Gross Amount Recognized | (9,681) | (3,040) |
Counterparty netting | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | (9,681) | (3,040) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 9,681 | 3,040 |
Net Amount | 0 | 0 |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Gross Amount Recognized | (18,766) | (17,502) |
Counterparty netting | 7,765 | 11,072 |
Cash collateral netting | 1,051 | 2,595 |
Net Amount Presented in the Consolidated Balance Sheets | (9,950) | (3,835) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 9,681 | 3,314 |
Net Amount | (269) | (521) |
Other | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (129) | (199) |
Counterparty netting | 0 | 0 |
Cash collateral netting | 0 | 0 |
Derivative liabilities, net | (129) | (199) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (129) | (199) |
OTC derivatives | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (6,285) | (7,298) |
Counterparty netting | 5,499 | 6,367 |
Cash collateral netting | 688 | 469 |
Derivative liabilities, net | (98) | (462) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 274 |
Net Amount | (98) | (188) |
Cleared and exchange-traded derivatives | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (2,671) | (6,965) |
Counterparty netting | 2,266 | 4,705 |
Cash collateral netting | 363 | 2,126 |
Derivative liabilities, net | (42) | (134) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (42) | (134) |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Aggregate fair value of securities posted | 3,100 | 3,400 |
Securities Sold under Agreements to Repurchase | ||
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Cash collateral netting | $ 0 | $ 0 |
Collateral and Offsetting of 83
Collateral and Offsetting of Assets and Liabilities - Collateral in the Form of Securities Pledged (Details) $ in Millions | Dec. 31, 2017USD ($) |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | $ 13,319 |
Derivatives | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 3,141 |
Securities Sold under Agreements to Repurchase | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 9,705 |
Other | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 473 |
Debt Securities Of Consolidated Trusts | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 486 |
Debt Securities Of Consolidated Trusts | Derivatives | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 375 |
Debt Securities Of Consolidated Trusts | Securities Sold under Agreements to Repurchase | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 0 |
Debt Securities Of Consolidated Trusts | Other | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 111 |
Trading securities | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 12,833 |
Trading securities | Derivatives | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 2,766 |
Trading securities | Securities Sold under Agreements to Repurchase | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | 9,705 |
Trading securities | Other | |
Collateral in the Form of Securities Pledged [Line Items] | |
Securities pledged with the ability for the secured party to repledge | $ 362 |
Collateral and Offsetting of 84
Collateral and Offsetting of Assets and Liabilities - Contractual Maturity of Collateral Pledged (Details) - Securities Sold under Agreements to Repurchase $ in Millions | Dec. 31, 2017USD ($) |
Collateral in the Form of Securities Pledged [Line Items] | |
U.S. Treasury securities | $ 9,705 |
Overnight and continuous | |
Collateral in the Form of Securities Pledged [Line Items] | |
U.S. Treasury securities | 0 |
30 days or less | |
Collateral in the Form of Securities Pledged [Line Items] | |
U.S. Treasury securities | 9,705 |
After 30 days through 90 days | |
Collateral in the Form of Securities Pledged [Line Items] | |
U.S. Treasury securities | 0 |
Greater than 90 days | |
Collateral in the Form of Securities Pledged [Line Items] | |
U.S. Treasury securities | $ 0 |
Stockholders' Equity and Earn85
Stockholders' Equity and Earnings per Share (Details) | Jan. 01, 2018USD ($) | Jun. 29, 2012USD ($) | Mar. 30, 2012USD ($) | Dec. 30, 2011USD ($) | Sep. 30, 2011USD ($) | Mar. 31, 2011USD ($) | Dec. 30, 2010USD ($) | Sep. 30, 2010USD ($) | Jun. 30, 2010USD ($) | Jun. 30, 2009USD ($) | Mar. 31, 2009USD ($) | Nov. 24, 2008USD ($) | Sep. 08, 2008USD ($)shares | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)numberofsecurities$ / sharesshares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)numberofsecurities$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2013USD ($) | Jul. 08, 2010numberofsecurities |
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 | $ (356,000,000) | $ (356,000,000) | $ (480,000,000) | ||||||||||||||||||||
Cash flow hedge gain (loss) to be reclassified over the next 12 months | $ 111,000,000 | ||||||||||||||||||||||
Maximum remaining length of time hedged in cash flow hedge | 16 years | ||||||||||||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||||||||||||
Cash dividends paid on senior preferred stock | 2,200,000,000 | $ 2,000,000,000 | $ 2,200,000,000 | $ 4,500,000,000 | $ 10,945,000,000 | 4,983,000,000 | $ 5,510,000,000 | ||||||||||||||||
Increase in Senior Preferred Stock | 3,000,000,000 | 3,000,000,000 | |||||||||||||||||||||
Increase in liquidation preference | 0 | 0 | |||||||||||||||||||||
Senior preferred stock, at redemption value | 75,336,000,000 | 75,336,000,000 | 72,336,000,000 | ||||||||||||||||||||
Expected Draw Request To Treasury Under Purchase Agreement | 312,000,000 | 312,000,000 | |||||||||||||||||||||
Applicable capital reserve amount | 600,000,000 | 600,000,000 | $ 3,000,000,000 | ||||||||||||||||||||
Applicable capital reserve amount if we don't pay the full dividend requirement in a future period | $ 0 | $ 0 | |||||||||||||||||||||
Common stock warrant, exercise price per share | $ / shares | $ 0.00001 | $ 0.00001 | |||||||||||||||||||||
Common stock warrant, amount outstanding | $ 2,300,000,000 | $ 2,300,000,000 | |||||||||||||||||||||
Number of preferred stock classes | numberofsecurities | 24 | 24 | |||||||||||||||||||||
Common shares or non-cumulative preferred stock repurchased | $ 0 | 0 | |||||||||||||||||||||
Common shares or non-cumulative preferred stock issued | $ 0 | $ 0 | |||||||||||||||||||||
Antidilutive potential common shares | shares | 0 | 22,684 | 146,474 | ||||||||||||||||||||
Common dividends declared | $ 0 | ||||||||||||||||||||||
Dividends declared on preferred stock | 0 | ||||||||||||||||||||||
Dividends paid on preferred stock | $ 0 | ||||||||||||||||||||||
Number of preferred stock classes delisted | numberofsecurities | 20 | ||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
Federal statutory tax rate | 21.00% | ||||||||||||||||||||||
Cash dividends paid on senior preferred stock | $ 0 | ||||||||||||||||||||||
Senior preferred stock, at redemption value | $ 75,600,000,000 | ||||||||||||||||||||||
Applicable capital reserve amount | $ 3,000,000,000 | ||||||||||||||||||||||
Senior Preferred Stock | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
Senior preferred stock, shares issued | shares | 1,000,000 | ||||||||||||||||||||||
Senior preferred stock, par value per share | $ / shares | $ 1 | $ 1 | |||||||||||||||||||||
Initial Liquidation Preference Price Per Share | $ / shares | $ 1,000 | $ 1,000 | |||||||||||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||||||||||||
Increase in Senior Preferred Stock | $ 3,000,000,000 | $ 3,000,000,000 | |||||||||||||||||||||
Increase in liquidation preference | $ 19,000,000 | $ 146,000,000 | $ 5,992,000,000 | $ 1,479,000,000 | $ 500,000,000 | $ 100,000,000 | $ 1,800,000,000 | $ 10,600,000,000 | $ 6,100,000,000 | $ 30,800,000,000 | $ 13,800,000,000 | ||||||||||||
Senior preferred stock, at redemption value | $ 75,336,000,000 | $ 75,336,000,000 | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
OTCQB Symbol | FMCC | ||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
Restricted stock units lapsed | shares | 8,107 | ||||||||||||||||||||||
Restricted stock outstanding | shares | 1,403 | 1,403 | |||||||||||||||||||||
Restricted stock | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
Restricted stock outstanding | shares | 41,160 | 41,160 | 41,160 | ||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Stockholders Equity Text [Line Items] | |||||||||||||||||||||||
Stock options outstanding | shares | 0 | 0 |
Stockholders' Equity and Earn86
Stockholders' Equity and Earnings per Share - Changes in AOCI by Component, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 5,075 | $ 2,940 | $ 2,651 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (67) | (697) | (577) |
Ending balance | (312) | 5,075 | 2,940 |
Total | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 456 | 1,153 | 1,730 |
Other comprehensive income (loss) before reclassifications | 920 | (328) | (75) |
Amounts reclassified from accumulated other comprehensive income | (987) | (369) | (502) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (67) | (697) | (577) |
Ending balance | 389 | 456 | 1,153 |
AOCI related to available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 915 | 1,740 | 2,546 |
Other comprehensive income (loss) before reclassifications | 857 | (318) | (123) |
Amounts reclassified from accumulated other comprehensive income | (1,110) | (507) | (683) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (253) | (825) | (806) |
Ending balance | 662 | 915 | 1,740 |
Tax expense related to AFS - other comprehensive income before reclassifications | 500 | (200) | 100 |
AOCI related to cash flow hedge relationships | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (480) | (621) | (803) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 124 | 141 | 182 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 124 | 141 | 182 |
Ending balance | (356) | (480) | (621) |
AOCI related to defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 21 | 34 | (13) |
Other comprehensive income (loss) before reclassifications | 63 | (10) | 48 |
Amounts reclassified from accumulated other comprehensive income | (1) | (3) | (1) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 62 | (13) | 47 |
Ending balance | $ 83 | $ 21 | $ 34 |
Stockholders' Equity and Earn87
Stockholders' Equity and Earnings per Share - Reclassifications from AOCI to Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Other gains (losses) on investment securities recognized in earnings | $ 1,054 | $ (78) | $ 508 |
Net impairment of available-for-sale securities recognized in earnings | (18) | (191) | (292) |
Income before income tax (expense) benefit | 16,834 | 11,639 | 9,274 |
Interest expense | (53,643) | (50,786) | (52,144) |
Income tax (expense) benefit | (11,209) | (3,824) | (2,898) |
Salaries and employee benefits | (1,098) | (989) | (975) |
Net income | 5,625 | 7,815 | 6,376 |
Held by Freddie Mac | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (5,987) | (6,187) | (6,608) |
Total reclassifications in the period | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 987 | 369 | 502 |
AOCI related to available-for-sale securities | Total reclassifications in the period | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Other gains (losses) on investment securities recognized in earnings | 1,726 | 971 | 1,343 |
Net impairment of available-for-sale securities recognized in earnings | (18) | (191) | (292) |
Income before income tax (expense) benefit | 1,708 | 780 | 1,051 |
Income tax (expense) benefit | (598) | (273) | (368) |
Net income | 1,110 | 507 | 683 |
AOCI related to cash flow hedge relationships | Total reclassifications in the period | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax (expense) benefit | 40 | 51 | 48 |
Net income | (124) | (141) | (182) |
AOCI related to cash flow hedge relationships | Total reclassifications in the period | Held by Freddie Mac | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (164) | (192) | (230) |
AOCI related to defined benefit plans | Total reclassifications in the period | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax (expense) benefit | (1) | (1) | 0 |
Salaries and employee benefits | 2 | 4 | 1 |
Net income | $ 1 | $ 3 | $ 1 |
Stockholders' Equity and Earn88
Stockholders' Equity and Earnings per Share - Senior Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Thousands | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 30, 2011 | Mar. 31, 2011 | Dec. 30, 2010 | Sep. 30, 2010 | Jun. 30, 2010 | Jun. 30, 2009 | Mar. 31, 2009 | Nov. 24, 2008 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 08, 2008 |
Class of Stock [Line Items] | |||||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||||
Increase in Senior Preferred Stock | $ 3,000,000,000 | $ 3,000,000,000 | |||||||||||||
Increase in liquidation preference | 0 | 0 | |||||||||||||
Aggregate liquidation preference on senior preferred stock | $ 75,336,000,000 | $ 75,336,000,000 | $ 72,336,000,000 | ||||||||||||
Senior Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares Authorized | 1,000 | 1,000 | |||||||||||||
Shares Outstanding | 1,000 | 1,000 | |||||||||||||
Total Par Value | $ 1,000,000 | $ 1,000,000 | |||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||||
Initial Liquidation Preference Price Per Share | $ 1,000 | $ 1,000 | |||||||||||||
Increase in Senior Preferred Stock | $ 3,000,000,000 | $ 3,000,000,000 | |||||||||||||
Increase in liquidation preference | $ 19,000,000 | $ 146,000,000 | $ 5,992,000,000 | $ 1,479,000,000 | $ 500,000,000 | $ 100,000,000 | $ 1,800,000,000 | $ 10,600,000,000 | $ 6,100,000,000 | $ 30,800,000,000 | $ 13,800,000,000 | ||||
Aggregate liquidation preference on senior preferred stock | $ 75,336,000,000 | $ 75,336,000,000 |
Stockholders' Equity and Earn89
Stockholders' Equity and Earnings per Share - Preferred Stock (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2012 | Dec. 31, 2016USD ($) | |
Class of Stock [Line Items] | |||
Total Outstanding Balance | $ 14,109,000 | $ 14,109,000 | |
Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 464,170 | ||
Shares Outstanding | shares | 464,170 | ||
Total Par Value | $ 464,170 | ||
Total Outstanding Balance | $ 14,109,000 | ||
Class 1 - 1996 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 5,000 | ||
Shares Outstanding | shares | 5,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 9.00% | ||
Class 2 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 3,000 | ||
Shares Outstanding | shares | 3,000 | ||
Total Par Value | $ 3,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 150,000 | ||
Class 3 - 5% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.00% | ||
Shares Authorized | shares | 8,000 | ||
Shares Outstanding | shares | 8,000 | ||
Total Par Value | $ 8,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 400,000 | ||
OTCQB Symbol | FMCKK | ||
Class 4 - 1998 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 4,400 | ||
Shares Outstanding | shares | 4,400 | ||
Total Par Value | $ 4,400 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 220,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 7.50% | ||
Class 5 - 5.10% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.10% | ||
Shares Authorized | shares | 8,000 | ||
Shares Outstanding | shares | 8,000 | ||
Total Par Value | $ 8,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 400,000 | ||
OTCQB Symbol | FMCCH | ||
Class 6 - 5.30% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.30% | ||
Shares Authorized | shares | 4,000 | ||
Shares Outstanding | shares | 4,000 | ||
Total Par Value | $ 4,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 200,000 | ||
Class 7 - 5.10% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.10% | ||
Shares Authorized | shares | 3,000 | ||
Shares Outstanding | shares | 3,000 | ||
Total Par Value | $ 3,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 150,000 | ||
Class 8 - 5.79% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.79% | ||
Shares Authorized | shares | 5,000 | ||
Shares Outstanding | shares | 5,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
OTCQB Symbol | FMCCK | ||
Class 9 - 1999 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 5,750 | ||
Shares Outstanding | shares | 5,750 | ||
Total Par Value | $ 5,750 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 287,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11.00% | ||
Class 10 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 6,500 | ||
Shares Outstanding | shares | 6,500 | ||
Total Par Value | $ 6,500 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 325,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11.00% | ||
Class 11 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 4,600 | ||
Shares Outstanding | shares | 4,600 | ||
Total Par Value | $ 4,600 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 230,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11.00% | ||
Class 12 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 3,450 | ||
Shares Outstanding | shares | 3,450 | ||
Total Par Value | $ 3,450 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 173,000 | ||
OTCQB Symbol | FMCCO | ||
Class 13 - 6% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.00% | ||
Shares Authorized | shares | 3,450 | ||
Shares Outstanding | shares | 3,450 | ||
Total Par Value | $ 3,450 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 173,000 | ||
OTCQB Symbol | FMCCP | ||
Class 14 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 4,020 | ||
Shares Outstanding | shares | 4,020 | ||
Total Par Value | $ 4,020 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 201,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11.00% | ||
Class 15 - 5.70% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.70% | ||
Shares Authorized | shares | 6,000 | ||
Shares Outstanding | shares | 6,000 | ||
Total Par Value | $ 6,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 300,000 | ||
OTCQB Symbol | FMCKP | ||
Class 16 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 6,000 | ||
Shares Outstanding | shares | 6,000 | ||
Total Par Value | $ 6,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 300,000 | ||
Class 17 - 2006 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 15,000 | ||
Shares Outstanding | shares | 15,000 | ||
Total Par Value | $ 15,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 750,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 4.00% | ||
Class 18 - 6.42% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.42% | ||
Shares Authorized | shares | 5,000 | ||
Shares Outstanding | shares | 5,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
OTCQB Symbol | FMCCT | ||
Class 19 - 5.90% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.90% | ||
Shares Authorized | shares | 20,000 | ||
Shares Outstanding | shares | 20,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKO | ||
Class 20 - 5.57% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.57% | ||
Shares Authorized | shares | 44,000 | ||
Shares Outstanding | shares | 44,000 | ||
Total Par Value | $ 44,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 1,100,000 | ||
OTCQB Symbol | FMCKM | ||
Class 21 - 5.66% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.66% | ||
Shares Authorized | shares | 20,000 | ||
Shares Outstanding | shares | 20,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKN | ||
Class 22 - 6.02% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.02% | ||
Shares Authorized | shares | 20,000 | ||
Shares Outstanding | shares | 20,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKL | ||
Class 23 - 6.55% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.55% | ||
Shares Authorized | shares | 20,000 | ||
Shares Outstanding | shares | 20,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKI | ||
Class 24 - 2007 Fixed-to-floating rate | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 8.375% | ||
Shares Authorized | shares | 240,000 | ||
Shares Outstanding | shares | 240,000 | ||
Total Par Value | $ 240,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 6,000,000 | ||
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 | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 7.875% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 5,405,000,000 | $ 0 | $ 0 | |
Unrecognized Tax Benefits | $ 0 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Income Taxes - Federal Income T
Income Taxes - Federal Income Tax (Expense) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Income Tax (Expense) Benefit | $ (3,436) | $ (1,037) | $ (1,243) |
Deferred Income Tax (Expense) Benefit | (7,773) | (2,787) | (1,655) |
Income Tax (Expense) benefit | $ (11,209) | $ (3,824) | $ (2,898) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income Tax Benefit (Expense), at Statutory Corporate Tax Rate | $ (5,892) | $ (4,074) | $ (3,246) |
Tax-Exempt Interest | 39 | 36 | 52 |
Tax Credits | 135 | 243 | 346 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (54) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (5,405) | 0 | 0 |
Other | (32) | (29) | (50) |
Income Tax (Expense) benefit | $ (11,209) | $ (3,824) | $ (2,898) |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Tax-Exempt Interest (Percent) | (0.20%) | (0.30%) | (0.60%) |
Tax Credits (Percent) | (0.80%) | (2.10%) | (3.70%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.30% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 32.10% | 0.00% | 0.00% |
Other (Percent) | 0.20% | 0.30% | 0.50% |
Effective Tax Rate | 66.60% | 32.90% | 31.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets, Gross [Abstract] | ||
Deferred fees | $ 4,679 | $ 6,662 |
Basis differences related to derivative instruments | 2,041 | 4,006 |
Credit related items and allowance for loan losses | 291 | 1,045 |
Basis differences related to assets held for investment | 1,288 | 2,310 |
LIHTC and AMT credit carryforwards | 0 | 2,156 |
Other items, net | 55 | 131 |
Total deferred tax assets | 8,354 | 16,310 |
Deferred Tax Liabilities [Abstract] | ||
Unrealized gains related to Available-for-Sale Securities | (214) | (492) |
Total deferred tax liabilities | (214) | (492) |
Deferred Tax Assets, Valuation Allowance | (33) | 0 |
Deferred tax assets, net | $ 8,107 | $ 15,818 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Capital Markets | |||
Segment Reporting Information [Line Items] | |||
Increase to net interest income and a corresponding decrease to derivative gains (losses) | $ 1,300 | $ 763 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Earnings and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net income | $ 5,625 | $ 7,815 | $ 6,376 |
Comprehensive income (loss) | 5,558 | 7,118 | 5,799 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Net income | (5,405) | 0 | 0 |
Comprehensive income (loss) | (5,405) | 0 | 28 |
Single-family Guarantee | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net income | 2,501 | 2,170 | 1,778 |
Comprehensive income (loss) | 2,541 | 2,161 | 1,790 |
Multifamily | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net income | 2,014 | 1,818 | 827 |
Comprehensive income (loss) | 1,937 | 1,582 | 566 |
Capital Markets | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net income | 6,515 | 3,827 | 3,771 |
Comprehensive income (loss) | 6,485 | 3,375 | 3,415 |
Operating segments and All Other | |||
Segment Reporting Information [Line Items] | |||
Net income | 5,625 | 7,815 | 6,376 |
Comprehensive income (loss) | $ 5,558 | $ 7,118 | $ 5,799 |
Segment Reporting - Segment Ear
Segment Reporting - Segment Earnings and Reconciliation to GAAP Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | $ 14,164 | $ 14,379 | $ 14,946 |
Guarantee fee income | 662 | 513 | 369 |
Benefit (provision) for credit losses | 84 | 803 | 2,665 |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | (18) | (191) | (292) |
Derivative gains (losses) | (1,988) | (274) | (2,696) |
Gains (losses) on trading securities | (672) | (1,049) | (835) |
Gains (losses) on loans | 928 | (463) | (2,094) |
Other non-interest income (loss) | 7,957 | 1,964 | 1,949 |
Non-interest expense | |||
Administrative expenses | (2,106) | (2,005) | (1,927) |
Real estate owned operations expense | (189) | (287) | (338) |
Other non interest (expense) income includes adjustments | (1,988) | (1,751) | (2,473) |
Income tax expense | (11,209) | (3,824) | (2,898) |
Net income | 5,625 | 7,815 | 6,376 |
Changes in unrealized gains (losses) related to available-for-sale securities | (253) | (825) | (806) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 124 | 141 | 182 |
Changes in defined benefit plans | 62 | (13) | 47 |
Total other comprehensive income (loss), net of tax | (67) | (697) | (577) |
Comprehensive income (loss) | 5,558 | 7,118 | 5,799 |
All Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | 0 | 0 | 0 |
Guarantee fee income | 0 | 0 | 0 |
Benefit (provision) for credit losses | 0 | 0 | 0 |
Non-interest income (loss) | |||
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 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 | 0 | 0 | 0 |
Other non interest (expense) income includes adjustments | 0 | 0 | 0 |
Income tax expense | (5,405) | 0 | 0 |
Net income | (5,405) | 0 | 0 |
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 | 0 | 0 | 28 |
Total other comprehensive income (loss), net of tax | 0 | 0 | 28 |
Comprehensive income (loss) | (5,405) | 0 | 28 |
Reclassifications | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | 9,577 | 9,545 | 9,232 |
Guarantee fee income | (6,108) | (6,089) | (5,122) |
Benefit (provision) for credit losses | 913 | 1,298 | 2,922 |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | (249) | (460) | (690) |
Derivative gains (losses) | (1,545) | (1,763) | (2,198) |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on loans | 930 | (772) | (2,001) |
Other non-interest income (loss) | (3,074) | (1,227) | (531) |
Non-interest expense | |||
Administrative expenses | 0 | 0 | 0 |
Real estate owned operations expense | 14 | 11 | 7 |
Other non interest (expense) income includes adjustments | (458) | (543) | (1,619) |
Income tax expense | 0 | 0 | 0 |
Net income | 0 | 0 | 0 |
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 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 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 | 0 | 0 | 0 |
Guarantee fee income | 6,094 | 6,091 | 5,152 |
Benefit (provision) for credit losses | (816) | (517) | (283) |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | 0 | 0 | 0 |
Derivative gains (losses) | (37) | (69) | (37) |
Gains (losses) on trading securities | 0 | 0 | 0 |
Gains (losses) on loans | 0 | 0 | 0 |
Other non-interest income (loss) | 1,542 | 516 | 173 |
Non-interest expense | |||
Administrative expenses | (1,381) | (1,323) | (1,285) |
Real estate owned operations expense | (203) | (298) | (341) |
Other non interest (expense) income includes adjustments | (1,382) | (1,169) | (794) |
Income tax expense | (1,316) | (1,061) | (807) |
Net income | 2,501 | 2,170 | 1,778 |
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 | 40 | (9) | 12 |
Total other comprehensive income (loss), net of tax | 40 | (9) | 12 |
Comprehensive income (loss) | 2,541 | 2,161 | 1,790 |
Multifamily | Operating segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | 1,206 | 1,022 | 1,049 |
Guarantee fee income | 676 | 511 | 339 |
Benefit (provision) for credit losses | (13) | 22 | 26 |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | (5) | 0 | (22) |
Derivative gains (losses) | 181 | 407 | 372 |
Gains (losses) on trading securities | (102) | 28 | (98) |
Gains (losses) on loans | (2) | 309 | (93) |
Other non-interest income (loss) | 1,594 | 829 | 15 |
Non-interest expense | |||
Administrative expenses | (395) | (362) | (325) |
Real estate owned operations expense | 0 | 0 | (4) |
Other non interest (expense) income includes adjustments | (66) | (58) | (56) |
Income tax expense | (1,060) | (890) | (376) |
Net income | 2,014 | 1,818 | 827 |
Changes in unrealized gains (losses) related to available-for-sale securities | (86) | (234) | (264) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 |
Changes in defined benefit plans | 9 | (2) | 3 |
Total other comprehensive income (loss), net of tax | (77) | (236) | (261) |
Comprehensive income (loss) | 1,937 | 1,582 | 566 |
Capital Markets | Operating segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | 3,381 | 3,812 | 4,665 |
Guarantee fee income | 0 | 0 | 0 |
Benefit (provision) for credit losses | 0 | 0 | 0 |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | 236 | 269 | 420 |
Derivative gains (losses) | (587) | 1,151 | (833) |
Gains (losses) on trading securities | (570) | (1,077) | (737) |
Gains (losses) on loans | 0 | 0 | 0 |
Other non-interest income (loss) | 7,895 | 1,846 | 2,292 |
Non-interest expense | |||
Administrative expenses | (330) | (320) | (317) |
Real estate owned operations expense | 0 | 0 | 0 |
Other non interest (expense) income includes adjustments | (82) | 19 | (4) |
Income tax expense | (3,428) | (1,873) | (1,715) |
Net income | 6,515 | 3,827 | 3,771 |
Changes in unrealized gains (losses) related to available-for-sale securities | (167) | (591) | (542) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 124 | 141 | 182 |
Changes in defined benefit plans | 13 | (2) | 4 |
Total other comprehensive income (loss), net of tax | (30) | (452) | (356) |
Comprehensive income (loss) | 6,485 | 3,375 | 3,415 |
Operating segments and All Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Interest Income (Expense), Net | 4,587 | 4,834 | 5,714 |
Guarantee fee income | 6,770 | 6,602 | 5,491 |
Benefit (provision) for credit losses | (829) | (495) | (257) |
Non-interest income (loss) | |||
Net impairment of available-for-sale securities recognized in earnings | 231 | 269 | 398 |
Derivative gains (losses) | (443) | 1,489 | (498) |
Gains (losses) on trading securities | (672) | (1,049) | (835) |
Gains (losses) on loans | (2) | 309 | (93) |
Other non-interest income (loss) | 11,031 | 3,191 | 2,480 |
Non-interest expense | |||
Administrative expenses | (2,106) | (2,005) | (1,927) |
Real estate owned operations expense | (203) | (298) | (345) |
Other non interest (expense) income includes adjustments | (1,530) | (1,208) | (854) |
Income tax expense | (11,209) | (3,824) | (2,898) |
Net income | 5,625 | 7,815 | 6,376 |
Changes in unrealized gains (losses) related to available-for-sale securities | (253) | (825) | (806) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 124 | 141 | 182 |
Changes in defined benefit plans | 62 | (13) | 47 |
Total other comprehensive income (loss), net of tax | (67) | (697) | (577) |
Comprehensive income (loss) | $ 5,558 | $ 7,118 | $ 5,799 |
Concentration of Credit and O97
Concentration of Credit and Other Risks (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2015USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)numberofcounterpartiesnumberofproperties | Dec. 31, 2016USD ($)numberofproperties | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||||||
Real estate owned, net | $ 892,000,000 | $ 1,198,000,000 | |||||
UPB of single-family credit guarantee portfolio | 1,800,000,000,000 | 1,800,000,000,000 | |||||
Securities purchased under agreements to resell used to provide financing to investors | 239,000,000 | $ 0 | |||||
Judicial Ruling | Nomura And RBS Securities Inc. | |||||||
Concentration Risk [Line Items] | |||||||
Total settlement awarded to Freddie Mac and Fannie Mae | $ 806,000,000 | ||||||
Judicial Ruling | RBS Securities Inc. | |||||||
Concentration Risk [Line Items] | |||||||
Litigation Settlement, Amount Awarded from Other Party | $ 4,500,000,000 | ||||||
FHFA VS Nomura and RBS | Judicial Ruling | |||||||
Concentration Risk [Line Items] | |||||||
Litigation Settlement, Amount Awarded from Other Party | $ 779,000,000 | ||||||
Payment Cap The Litigation Defendant Agreed To Pay | 33,000,000 | ||||||
Positive Outcome of Litigation | JPMorgan | |||||||
Concentration Risk [Line Items] | |||||||
Litigation Settlement, Amount Awarded from Other Party | $ 29,000,000 | ||||||
Single-family UPB | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 100.00% | 100.00% | |||||
Single-family Credit Losses | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 100.00% | 100.00% | |||||
PMI | |||||||
Concentration Risk [Line Items] | |||||||
Percent of Subsequent Partial Claim Payment Cash | 70.00% | 67.00% | |||||
Percent of Subsequent Partial Claim Payment Deferred Payment Obligation | 30.00% | 33.00% | |||||
Percent of partial claim payment previously made in cash | 67.00% | 55.00% | |||||
Triad | |||||||
Concentration Risk [Line Items] | |||||||
Percent of Subsequent Partial Claim Payment Cash | 75.00% | ||||||
Percent of Subsequent Partial Claim Payment Deferred Payment Obligation | 25.00% | ||||||
Percent of partial claim payment previously made in cash | 60.00% | ||||||
RMIC | |||||||
Concentration Risk [Line Items] | |||||||
Percent of claim payment in cash | 100.00% | ||||||
Percent of partial claim payment previously made in cash | 60.00% | ||||||
Percent of partial claim payment previously made in deferred payment obligations | 40.00% | ||||||
PMI and Triad | |||||||
Concentration Risk [Line Items] | |||||||
Amount Of Cumulative Unpaid Deferred Payment Obligation | $ 500,000,000 | $ 500,000,000 | |||||
Non-agency CMBS | Bond insurance coverage | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 77.00% | ||||||
Seller/Servicers | |||||||
Concentration Risk [Line Items] | |||||||
UPB of loans subject to repurchase requests issued to Single-family Seller/Servicers | $ 200,000,000 | 300,000,000 | |||||
UPB of loans related to recovered losses from repurchase requests to Single-family Seller/Servicer | $ 300,000,000 | $ 600,000,000 | |||||
2013 to current | Single-family UPB | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 69.00% | ||||||
Top five non-depository seller | Single-family loan purchase volume | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 20.00% | 17.00% | |||||
Five largest non-depository servicers | Single-family UPB | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 15.00% | 13.00% | |||||
Counterparties accounted for 10% or more | Bond insurance coverage | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk percentage | 95.00% | ||||||
Number of counterparties | numberofcounterparties | 3 | ||||||
Mortgage Insurers | |||||||
Concentration Risk [Line Items] | |||||||
UPB of single-family credit guarantee portfolio with mortgage insurance coverage | $ 334,300,000,000 | ||||||
Maximum loss limit from mortgage insurers for single-family credit guarantee portfolio | 85,500,000,000 | ||||||
Cash proceeds received from mortgage insurers | 400,000,000 | $ 500,000,000 | |||||
Receivables outstanding from mortgage Insurers | 100,000,000 | 100,000,000 | |||||
Receivables outstanding, net of reserves, from mortgage insurers | 100,000,000 | 100,000,000 | |||||
Bond Insurers | |||||||
Concentration Risk [Line Items] | |||||||
Maximum principal exposure - bond insurance | 3,500,000,000 | ||||||
Cash and Other Investment Counterparties | |||||||
Concentration Risk [Line Items] | |||||||
Cash and other non-mortgage investments | 89,300,000,000 | 96,200,000,000 | |||||
Single-family | |||||||
Concentration Risk [Line Items] | |||||||
Real estate owned, net | $ 900,000,000 | $ 1,200,000,000 | |||||
Real Estate Acquired Through Foreclosure Number Of Properties | numberofproperties | 8,299 | 11,418 | |||||
Multifamily | |||||||
Concentration Risk [Line Items] | |||||||
Real estate owned, net | $ 6,000,000 | $ 0 |
Concentration of Credit and O98
Concentration of Credit and Other Risks - Concentration of Credit Risk - Single-Family Credit Guarantee Portfolio (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.08% | 1.00% |
West | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.47% | 0.57% |
Northeast | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.24% | 1.45% |
North Central | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.81% | 0.93% |
Southeast | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.95% | 1.19% |
Southwest | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.98% | 0.78% |
CALIFORNIA | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.41% | 0.46% |
FLORIDA | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 3.33% | 1.42% |
ILLINOIS | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.13% | 1.34% |
NEW JERSEY | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.78% | 2.26% |
NEW YORK | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.74% | 2.05% |
All Other | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.91% | 0.90% |
Core single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.35% | 0.20% |
Legacy and relief refinance single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 2.59% | 2.28% |
Single-family UPB | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Single-family UPB | West | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 30.00% | 30.00% |
Single-family UPB | Northeast | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 25.00% | 25.00% |
Single-family UPB | North Central | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 16.00% |
Single-family UPB | Southeast | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 16.00% |
Single-family UPB | Southwest | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13.00% | 13.00% |
Single-family UPB | CALIFORNIA | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 18.00% |
Single-family UPB | FLORIDA | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 6.00% | 6.00% |
Single-family UPB | ILLINOIS | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5.00% | 5.00% |
Single-family UPB | NEW JERSEY | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 3.00% | 3.00% |
Single-family UPB | NEW YORK | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5.00% | 5.00% |
Single-family UPB | All Other | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 63.00% | 63.00% |
Single-family UPB | Core single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 78.00% | 73.00% |
Single-family UPB | Legacy and relief refinance single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 22.00% | 27.00% |
Single-family Credit Losses | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Single-family Credit Losses | West | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 27.00% | 11.00% |
Single-family Credit Losses | Northeast | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 34.00% | 41.00% |
Single-family Credit Losses | North Central | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 24.00% |
Single-family Credit Losses | Southeast | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 20.00% | 19.00% |
Single-family Credit Losses | Southwest | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4.00% | 5.00% |
Single-family Credit Losses | CALIFORNIA | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 5.00% |
Single-family Credit Losses | FLORIDA | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13.00% | 9.00% |
Single-family Credit Losses | ILLINOIS | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 10.00% |
Single-family Credit Losses | NEW JERSEY | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 12.00% |
Single-family Credit Losses | NEW YORK | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 9.00% |
Single-family Credit Losses | All Other | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 42.00% | 55.00% |
Single-family Credit Losses | Core single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 3.00% | 6.00% |
Single-family Credit Losses | Legacy and relief refinance single-family loan portfolio | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 97.00% | 94.00% |
Concentration of Credit and O99
Concentration of Credit and Other Risks - Certain Higher-Risk Categories in the Single-Family Credit Guarantee Portfolio (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.08% | 1.00% |
Interest-only | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 4.97% | 4.34% |
Alt-A | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 5.62% | 5.21% |
Original LTV ratio greater than 90% | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 1.70% | 1.58% |
Lower credit scores at origination (less than 620) | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 6.34% | 5.73% |
Single-family UPB | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 100.00% | 100.00% |
Single-family UPB | Interest-only | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 1.00% | 1.00% |
Single-family UPB | Alt-A | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 1.00% | 2.00% |
Single-family UPB | Original LTV ratio greater than 90% | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 17.00% | 16.00% |
Single-family UPB | Lower credit scores at origination (less than 620) | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 2.00% | 2.00% |
Concentration of Credit and 100
Concentration of Credit and Other Risks - Concentration of Credit Risk - Multifamily Mortgage Portfolio (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | ||
Multifamily Mortgage Portfolio UPB | $ 240.7 | $ 199.7 |
Multifamily Delinquency Rate | 0.02% | 0.03% |
Unsecuritized Loans | ||
Concentration Risk [Line Items] | ||
Multifamily Mortgage Portfolio UPB | $ 38.2 | $ 42.4 |
Multifamily Delinquency Rate | 0.01% | 0.04% |
Securitization related products | ||
Concentration Risk [Line Items] | ||
Multifamily Mortgage Portfolio UPB | $ 192.5 | $ 147.6 |
Multifamily Delinquency Rate | 0.02% | 0.03% |
Other mortgage-related guarantees | ||
Concentration Risk [Line Items] | ||
Multifamily Mortgage Portfolio UPB | $ 10 | $ 9.7 |
Multifamily Delinquency Rate | 0.00% | 0.00% |
Concentration of Credit and 101
Concentration of Credit and Other Risks - Seller Concentration (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Top ten Single-family sellers | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 53.00% | 49.00% |
Wells Fargo Bank, N.A. | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 15.00% |
Other top 10 sellers | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 38.00% | 34.00% |
Top ten multifamily sellers | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 78.00% | 79.00% |
CBRE Capital Market, Inc. | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 19.00% |
Berkadia Commercial Mortgage LLC | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 17.00% |
Walker & Dunlop, LLC | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Other top 10 sellers | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 39.00% | 33.00% |
Concentration of Credit and 102
Concentration of Credit and Other Risks - Servicer Concentration (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Single-family loan serviced | Top ten Single-family servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 58.00% | 60.00% |
Single-family loan serviced | Wells Fargo Bank, N.A. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 19.00% |
Single-family loan serviced | Other top 10 servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 40.00% | 41.00% |
Multifamily loan serviced | Top ten multifamily servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 75.00% | 79.00% |
Multifamily loan serviced | Wells Fargo Bank, N.A. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 15.00% |
Multifamily loan serviced | CBRE Capital Markets, Inc. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 12.00% | 14.00% |
Multifamily loan serviced | Berkadia Commercial Mortgage LLC | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 11.00% |
Multifamily loan serviced | Other top 10 servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 36.00% | 39.00% |
Concentration of Credit and 103
Concentration of Credit and Other Risks - Mortgage Insurer Concentration (Details) - Mortgage insurance coverage | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Arch Mortgage Insurance Company | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 24.00% | 25.00% |
Radian Guaranty Inc. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 21.00% | 21.00% |
Mortgage Guaranty Insurance Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 19.00% | 20.00% |
Genworth Mortgage Insurance Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 15.00% |
Essent Guaranty Inc. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 12.00% | 10.00% |
Total | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 91.00% | 91.00% |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Decrease (Increase) Of Fair Value Of Mortgage Loans Without Benefits Reflected In The Pricing Of HARP Loans | $ 2,100 | $ 5,300 | |
Total Fair Value Of The HARP Loans Presented In Consolidated Fair Value Balance Sheets | 30,200 | 52,800 | |
Multifamily held-for-sale loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 2 | 250 | $ (38) |
Debt securities with fair value option elected | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (190) | 63 | (9) |
HFS loan purchase commitments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 1,098 | $ 663 | $ 0 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | $ 20,054 | $ 16,255 |
Derivative Assets Net [Abstract] | ||
Derivative Assets, net | 375 | 747 |
Other Assets [Abstract] | ||
Total other assets | 3,353 | 2,408 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 5,799 | 6,010 |
Derivative Liabilities Net [Abstract] | ||
Total Derivative Liabilities, net | 269 | 795 |
Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 639 | 144 |
Other Derivative [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative Assets, net | 52 | 290 |
Derivative Liabilities Net [Abstract] | ||
Total Derivative Liabilities, net | 129 | 199 |
Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 43,597 | 66,757 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 40,721 | 44,790 |
Total investments in securities | 84,318 | 111,547 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 20,054 | 16,255 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 8,838 | 12,268 |
Netting Adjustment | (8,463) | (11,521) |
Derivative Assets, net | 375 | 747 |
Other Assets [Abstract] | ||
Guarantee Assets | 3,171 | 2,298 |
Non Derivative HFS Purchase Commitments Assets | 137 | 108 |
All Other Assets Fair Value Disclosure | 45 | 2 |
Total other assets | 3,353 | 2,408 |
Total Assets at Fair value | 108,100 | 130,957 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 7,489 | 12,692 |
Netting Adjustment | (7,220) | (11,897) |
Total Derivative Liabilities, net | 269 | 795 |
Other Liabilities [Abstract] | ||
Non Derivative HFS Purchase Commitment Liabilities | 4 | 37 |
Total liabilities carried at fair value on a recurring basis | 6,072 | 6,842 |
Fair Value, Measurements, Recurring | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 639 | 144 |
Fair Value, Measurements, Recurring | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 5,160 | 5,866 |
Fair Value, Measurements, Recurring | Interest Rate Swap [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 4,262 | 6,924 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 7,239 | 12,387 |
Fair Value, Measurements, Recurring | Option-Based Derivatives [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 4,524 | 5,054 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 121 | 106 |
Fair Value, Measurements, Recurring | Other Derivative [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 52 | 290 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 129 | 199 |
Fair Value, Measurements, Recurring | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 17,902 | 23,653 |
Fair Value, Measurements, Recurring | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 35,470 | 43,652 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 12,235 | 15,343 |
Fair Value, Measurements, Recurring | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 2,053 | 4,221 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 3,574 | 8,161 |
Fair Value, Measurements, Recurring | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,933 | 11,797 |
Fair Value, Measurements, Recurring | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1,784 | 6,422 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 357 | 665 |
Fair Value, Measurements, Recurring | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,093 | 149 |
Fair Value, Measurements, Recurring | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 22,819 | 21,137 |
Fair Value, Measurements, Recurring | Level 1 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 20,159 | 19,402 |
Total investments in securities | 20,159 | 19,402 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 0 | 0 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Assets, net | 0 | 0 |
Other Assets [Abstract] | ||
Guarantee Assets | 0 | 0 |
Non Derivative HFS Purchase Commitments Assets | 0 | 0 |
All Other Assets Fair Value Disclosure | 0 | 0 |
Total other assets | 0 | 0 |
Total Assets at Fair value | 20,159 | 19,402 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Total Derivative Liabilities, net | 0 | 0 |
Other Liabilities [Abstract] | ||
Non Derivative HFS Purchase Commitment Liabilities | 0 | 0 |
Total liabilities carried at fair value on a recurring basis | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Swap [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Option-Based Derivatives [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other Derivative [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | 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 | Level 1 | Other agency | ||
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 | Level 1 | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | 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 | Level 1 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 20,159 | 19,402 |
Fair Value, Measurements, Recurring | Level 2 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 32,509 | 41,016 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 17,645 | 24,168 |
Total investments in securities | 50,154 | 65,184 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 20,054 | 16,255 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 8,830 | 12,265 |
Derivative Assets, net | 8,830 | 12,265 |
Other Assets [Abstract] | ||
Guarantee Assets | 0 | 0 |
Non Derivative HFS Purchase Commitments Assets | 137 | 108 |
All Other Assets Fair Value Disclosure | 0 | 0 |
Total other assets | 137 | 108 |
Total Assets at Fair value | 79,175 | 93,812 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 7,424 | 12,640 |
Total Derivative Liabilities, net | 7,424 | 12,640 |
Other Liabilities [Abstract] | ||
Non Derivative HFS Purchase Commitment Liabilities | 4 | 37 |
Total liabilities carried at fair value on a recurring basis | 12,460 | 18,592 |
Fair Value, Measurements, Recurring | Level 2 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 9 | 144 |
Fair Value, Measurements, Recurring | Level 2 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 5,023 | 5,771 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 4,262 | 6,924 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 7,239 | 12,387 |
Fair Value, Measurements, Recurring | Level 2 | Option-Based Derivatives [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 4,524 | 5,054 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 121 | 106 |
Fair Value, Measurements, Recurring | Level 2 | Other Derivative [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 44 | 287 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 64 | 147 |
Fair Value, Measurements, Recurring | Level 2 | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 14,985 | 22,433 |
Fair Value, Measurements, Recurring | Level 2 | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 30,415 | 33,805 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 11,393 | 14,248 |
Fair Value, Measurements, Recurring | Level 2 | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 2,007 | 4,155 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 3,565 | 8,149 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 87 | 3,056 |
Fair Value, Measurements, Recurring | Level 2 | 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 | Level 2 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 27 | 36 |
Fair Value, Measurements, Recurring | Level 2 | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,660 | 1,735 |
Fair Value, Measurements, Recurring | Level 3 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 11,088 | 25,741 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,917 | 1,220 |
Total investments in securities | 14,005 | 26,961 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 0 | 0 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 8 | 3 |
Derivative Assets, net | 8 | 3 |
Other Assets [Abstract] | ||
Guarantee Assets | 3,171 | 2,298 |
Non Derivative HFS Purchase Commitments Assets | 0 | 0 |
All Other Assets Fair Value Disclosure | 45 | 2 |
Total other assets | 3,216 | 2,300 |
Total Assets at Fair value | 17,229 | 29,264 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 65 | 52 |
Total Derivative Liabilities, net | 65 | 52 |
Other Liabilities [Abstract] | ||
Non Derivative HFS Purchase Commitment Liabilities | 0 | 0 |
Total liabilities carried at fair value on a recurring basis | 832 | 147 |
Fair Value, Measurements, Recurring | Level 3 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 630 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt securities recorded at fair value | 137 | 95 |
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Swap [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Option-Based Derivatives [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other Derivative [Member] | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 8 | 3 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 65 | 52 |
Fair Value, Measurements, Recurring | Level 3 | Mortage-related securities | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 11,088 | 25,741 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,917 | 1,220 |
Total investments in securities | 14,005 | 26,961 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,055 | 9,847 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 842 | 1,095 |
Fair Value, Measurements, Recurring | Level 3 | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 46 | 66 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 9 | 12 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,933 | 11,797 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1,697 | 3,366 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states and political subdivisions | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 357 | 665 |
Fair Value, Measurements, Recurring | Level 3 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,066 | 113 |
Fair Value, Measurements, Recurring | Level 3 | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Disclosures - Ass106
Fair Value Disclosures - Assets on Our Consolidated Balance Sheets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | $ 6,693 | $ 2,682 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | 494 | 199 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | $ 6,199 | $ 2,483 |
Fair Value Disclosures - Ass107
Fair Value Disclosures - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt | Held by Freddie Mac | ||
Liabilities: | ||
Begining Balance | $ 95 | $ 0 |
Included in Earnings | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized (gains) losses | 0 | 0 |
Purchases | 0 | 0 |
Issues | 50 | 95 |
Sales | 0 | 0 |
Settlements, Net | (8) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 137 | 95 |
Unrealized (Gains) Losses Still Held - Liabilities | 0 | 0 |
Debt | Held by consolidated trusts | ||
Liabilities: | ||
Begining Balance | 0 | |
Included in Earnings | 0 | |
Included in Other Comprehensive Income | 0 | |
Total realized and unrealized (gains) losses | 0 | |
Purchases | 0 | |
Issues | 630 | |
Sales | 0 | |
Settlements, Net | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending Balance | 630 | 0 |
Unrealized (Gains) Losses Still Held - Liabilities | 0 | |
Net Derivatives | ||
Net Derivative Liability | ||
Beginning Balance | 52 | 8 |
Included in Earnings | 40 | 68 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized (gains) losses | 40 | 68 |
Purchases | 0 | 0 |
Issues | (10) | 2 |
Sales | 0 | 0 |
Settlements, Net | (25) | (26) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 57 | 52 |
Unrealized (Gains) Losses Still Held - Net Derivative Liability | 20 | 40 |
All Other Liabilities | ||
Liabilities: | ||
Begining Balance | 0 | 10 |
Included in Earnings | 0 | |
Included in Other Comprehensive Income | 0 | |
Total realized and unrealized (gains) losses | 0 | |
Purchases | 0 | |
Issues | 0 | |
Sales | 0 | |
Settlements, Net | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (10) | |
Ending Balance | 0 | |
Unrealized (Gains) Losses Still Held - Liabilities | 0 | |
Available-for-sale securities | ||
Assets: | ||
Beginning Balance | 25,741 | 27,767 |
Included in Earnings | 1,900 | 890 |
Included in Other Comprehensive Income | (291) | (160) |
Total realized and unrealized gains (losses) | 1,609 | 730 |
Purchases | 2,175 | 8,894 |
Issues | 0 | 0 |
Sales | (12,176) | (6,891) |
Settlements, net | (3,175) | (4,467) |
Transfers into Level 3 | 17 | 29 |
Transfers out of Level 3 | (3,103) | (321) |
Ending Balance | 11,088 | 25,741 |
Unrealized Gains (Losses) Still Held - Assets | 104 | 229 |
Available-for-sale securities | Freddie Mac | ||
Assets: | ||
Beginning Balance | 9,847 | 2,608 |
Included in Earnings | (8) | 10 |
Included in Other Comprehensive Income | 81 | (71) |
Total realized and unrealized gains (losses) | 73 | (61) |
Purchases | 494 | 8,894 |
Issues | 0 | 0 |
Sales | (932) | (605) |
Settlements, net | (1,349) | (703) |
Transfers into Level 3 | 17 | 29 |
Transfers out of Level 3 | (3,095) | (315) |
Ending Balance | 5,055 | 9,847 |
Unrealized Gains (Losses) Still Held - Assets | (18) | (9) |
Available-for-sale securities | Other agency | ||
Assets: | ||
Beginning Balance | 66 | 91 |
Included in Earnings | 0 | 0 |
Included in Other Comprehensive Income | (1) | (2) |
Total realized and unrealized gains (losses) | (1) | (2) |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | (11) | (17) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (8) | (6) |
Ending Balance | 46 | 66 |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Available-for-sale securities | Non-agency RMBS | ||
Assets: | ||
Beginning Balance | 11,797 | 20,333 |
Included in Earnings | 1,564 | 877 |
Included in Other Comprehensive Income | (270) | 55 |
Total realized and unrealized gains (losses) | 1,294 | 932 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | (7,688) | (6,286) |
Settlements, net | (1,470) | (3,182) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 3,933 | 11,797 |
Unrealized Gains (Losses) Still Held - Assets | 124 | 236 |
Available-for-sale securities | Non-agency CMBS | ||
Assets: | ||
Beginning Balance | 3,366 | 3,530 |
Included in Earnings | 343 | 2 |
Included in Other Comprehensive Income | (98) | (132) |
Total realized and unrealized gains (losses) | 245 | (130) |
Purchases | 1,681 | 0 |
Issues | 0 | 0 |
Sales | (3,556) | 0 |
Settlements, net | (39) | (34) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 1,697 | 3,366 |
Unrealized Gains (Losses) Still Held - Assets | (2) | 2 |
Available-for-sale securities | Obligations of states and political subdivisions | ||
Assets: | ||
Beginning Balance | 665 | 1,205 |
Included in Earnings | 1 | 1 |
Included in Other Comprehensive Income | (3) | (10) |
Total realized and unrealized gains (losses) | (2) | (9) |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | (306) | (531) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 357 | 665 |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 |
Trading securities | ||
Assets: | ||
Beginning Balance | 1,220 | 374 |
Included in Earnings | (139) | (21) |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (139) | (21) |
Purchases | 2,655 | 983 |
Issues | 0 | 0 |
Sales | (592) | (164) |
Settlements, net | (36) | (13) |
Transfers into Level 3 | 14 | 190 |
Transfers out of Level 3 | (205) | (129) |
Ending Balance | 2,917 | 1,220 |
Unrealized Gains (Losses) Still Held - Assets | (128) | (21) |
Trading securities | Freddie Mac | ||
Assets: | ||
Beginning Balance | 1,095 | 331 |
Included in Earnings | (171) | (21) |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (171) | (21) |
Purchases | 709 | 869 |
Issues | 0 | 0 |
Sales | (592) | (142) |
Settlements, net | (8) | (3) |
Transfers into Level 3 | 14 | 190 |
Transfers out of Level 3 | (205) | (129) |
Ending Balance | 842 | 1,095 |
Unrealized Gains (Losses) Still Held - Assets | (155) | (20) |
Trading securities | Other agency | ||
Assets: | ||
Beginning Balance | 12 | 41 |
Included in Earnings | (3) | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (3) | 0 |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | (22) |
Settlements, net | 0 | (7) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 9 | 12 |
Unrealized Gains (Losses) Still Held - Assets | (3) | (1) |
Trading securities | All other | ||
Assets: | ||
Beginning Balance | 113 | 2 |
Included in Earnings | 35 | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | 35 | 0 |
Purchases | 1,946 | 114 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements, net | (28) | (3) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 2,066 | 113 |
Unrealized Gains (Losses) Still Held - Assets | 30 | 0 |
Other Asset [Member] | ||
Assets: | ||
Beginning Balance | 2,300 | 1,753 |
Included in Earnings | (37) | 51 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (37) | 51 |
Purchases | 33 | 14 |
Issues | 1,418 | 850 |
Sales | (11) | 0 |
Settlements, net | (487) | (358) |
Transfers into Level 3 | 0 | (10) |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 3,216 | 2,300 |
Unrealized Gains (Losses) Still Held - Assets | (36) | 52 |
Guarantee Asset | ||
Assets: | ||
Beginning Balance | 2,298 | 1,753 |
Included in Earnings | (27) | 53 |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (27) | 53 |
Purchases | 0 | 0 |
Issues | 1,387 | 850 |
Sales | 0 | 0 |
Settlements, net | (487) | (358) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 3,171 | 2,298 |
Unrealized Gains (Losses) Still Held - Assets | (26) | 54 |
All Other Assets [Member] | ||
Assets: | ||
Beginning Balance | 2 | 0 |
Included in Earnings | (10) | (2) |
Included in Other Comprehensive Income | 0 | 0 |
Total realized and unrealized gains (losses) | (10) | (2) |
Purchases | 33 | 14 |
Issues | 31 | 0 |
Sales | (11) | 0 |
Settlements, net | 0 | 0 |
Transfers into Level 3 | 0 | (10) |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 45 | 2 |
Unrealized Gains (Losses) Still Held - Assets | $ (10) | $ (2) |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Recurring Level 3 Fair Value Measurements for Assets and Liabilities Measured on Our Consolidated Balance Sheets at Fair Value (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Liabilities [Abstract] | ||
Debt securities recorded at fair value | $ 5,799 | $ 6,010 |
Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 43,597 | 66,757 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 40,721 | 44,790 |
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 3,171 | 2,298 |
All Other Assets Fair Value Disclosure | 45 | 2 |
Investments, Fair Value Disclosure | 84,318 | 111,547 |
Fair Value, Measurements, Recurring | Mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 17,902 | 23,653 |
Fair Value, Measurements, Recurring | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 35,470 | 43,652 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 12,235 | 15,343 |
Fair Value, Measurements, Recurring | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 2,053 | 4,221 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 3,574 | 8,161 |
Fair Value, Measurements, Recurring | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,933 | 11,797 |
Fair Value, Measurements, Recurring | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1,784 | 6,422 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 357 | 665 |
Fair Value, Measurements, Recurring | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,093 | 149 |
Fair Value, Measurements, Recurring | Level 3 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 11,088 | 25,741 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,917 | 1,220 |
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 3,171 | 2,298 |
All Other Assets Fair Value Disclosure | 45 | 2 |
Investments, Fair Value Disclosure | 14,005 | 26,961 |
Fair Value, Measurements, Recurring | Level 3 | Net Derivatives | Other | ||
Liabilities [Abstract] | ||
Net Derivative Liability (Asset) | 57 | 49 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage-related securities | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 11,088 | 25,741 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,917 | 1,220 |
Other assets: | ||
Investments, Fair Value Disclosure | 14,005 | 26,961 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,055 | 9,847 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 842 | 1,095 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | Risk Metrics | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 243 | 452 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | Median of External Sources | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 129 | |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | Discounted Cash Flows | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 4,873 | 7,619 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 582 | 311 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 182 | 2,099 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 17 | 332 |
Fair Value, Measurements, Recurring | Level 3 | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 46 | 66 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 9 | 12 |
Fair Value, Measurements, Recurring | Level 3 | Other agency | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 46 | 66 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 9 | 12 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency RMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,933 | 11,797 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency RMBS | Median of External Sources | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,665 | 9,974 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency RMBS | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 268 | 1,823 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMBS | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1,697 | 3,366 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMBS | Risk Metrics | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 3,365 | |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMBS | Single External Source | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1,696 | |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMBS | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states and political subdivisions | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 357 | 665 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states and political subdivisions | Median of External Sources | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 334 | 619 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states and political subdivisions | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale Securities, Fair Value Disclosure | 23 | 46 |
Fair Value, Measurements, Recurring | Level 3 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,066 | 113 |
Fair Value, Measurements, Recurring | Level 3 | All other | Risk Metrics | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | $ 113 | |
Fair Value, Measurements, Recurring | Level 3 | All other | Single External Source | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,065 | |
Fair Value, Measurements, Recurring | Level 3 | All other | Other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | $ 1 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Minimum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 100.8 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Minimum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 0.27% | (1.46%) |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Weighted Average | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 101.8 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Weighted Average | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 0.68% | 0.91% |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Maximum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 103.3 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Freddie Mac | Maximum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 5.01% | 5.00% |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency RMBS | Minimum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 75.6 | 74 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency RMBS | Weighted Average | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 77.7 | 76 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency RMBS | Maximum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 80.8 | 78.8 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Minimum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 2 years 1 month 24 days | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Minimum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 108.4 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Weighted Average | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 8 years 6 months 26 days | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Weighted Average | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 108.7 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Maximum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 10 years 7 days | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Non-agency CMBS | Maximum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 108.9 | |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Obligations of states and political subdivisions | Minimum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 101.2 | 100.9 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Obligations of states and political subdivisions | Weighted Average | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 101.4 | 101.2 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | Obligations of states and political subdivisions | Maximum | Median of External Sources | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 101.6 | 101.5 |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Minimum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
EffectiveDurationPastYears | 5 years 26 days | |
Fair Value Inputs Effective Duration | 0 years | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Minimum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | (89.05%) | (33.46%) |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Weighted Average | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 11 years 9 months 4 days | 6 years 11 months 9 days |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Weighted Average | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | (0.88%) | (2.24%) |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Maximum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 55 years 11 months 5 days | 46 years 4 months 13 days |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | Freddie Mac | Maximum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 272.02% | 24.60% |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Minimum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 1 month 21 days | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Minimum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 6.4 | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Weighted Average | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 2 years 6 months 7 days | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Weighted Average | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 98 | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Maximum | Risk Metrics | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Fair Value Inputs Effective Duration | 4 years 29 days | |
Fair Value, Measurements, Recurring | Level 3 | Trading securities | All other | Maximum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 113.2 | |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | ||
Other assets: | ||
Guarantee Assets Fair Value Disclosure | $ 2,298 | |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | Discounted Cash Flows | ||
Other assets: | ||
Guarantee Assets Fair Value Disclosure | $ 3,171 | 2,091 |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | Other | ||
Other assets: | ||
Guarantee Assets Fair Value Disclosure | $ 207 | |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | Minimum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 0.17% | 0.17% |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | Weighted Average | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 0.45% | 0.50% |
Fair Value, Measurements, Recurring | Level 3 | Guarantee Asset | Maximum | Discounted Cash Flows | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
OAS | 1.98% | 1.98% |
Fair Value, Measurements, Recurring | Level 3 | All Other Assets [Member] | ||
Other assets: | ||
All Other Assets Fair Value Disclosure | $ 3,216 | $ 2,300 |
Fair Value, Measurements, Recurring | Level 3 | All Other Assets [Member] | Other | ||
Other assets: | ||
All Other Assets Fair Value Disclosure | 45 | 2 |
Held by Freddie Mac | Fair Value, Measurements, Recurring | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 5,160 | 5,866 |
Held by Freddie Mac | Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 137 | 95 |
Held by Freddie Mac | Fair Value, Measurements, Recurring | Level 3 | Other | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 137 | 95 |
Held by consolidated trusts | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 639 | 144 |
Held by consolidated trusts | Fair Value, Measurements, Recurring | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 639 | 144 |
Held by consolidated trusts | Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | 630 | $ 0 |
Held by consolidated trusts | Fair Value, Measurements, Recurring | Level 3 | Single External Source | ||
Liabilities [Abstract] | ||
Debt securities recorded at fair value | $ 630 | |
Held by consolidated trusts | Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 100.1 | |
Held by consolidated trusts | Fair Value, Measurements, Recurring | Level 3 | Debt | Minimum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 99.2 | |
Held by consolidated trusts | Fair Value, Measurements, Recurring | Level 3 | Debt | Maximum | Single External Source | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
External Pricing Source(s) | 100.2 |
Fair Value Disclosures - Qua109
Fair Value Disclosures - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements for Assets and Liabilities Measured on Our Consolidated Balance Sheets at Fair Value (Details) - Fair Value, Measurements, Nonrecurring | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage Loans Fair Value Disclosure | $ 6,693,000,000 | $ 2,682,000,000 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage Loans Fair Value Disclosure | 6,199,000,000 | 2,483,000,000 |
Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage Loans Fair Value Disclosure | 6,199,000,000 | 2,483,000,000 |
Minimum | Internal model | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 3,000 | $ 3,000 |
Housing Sales Index | 0.43% | 0.42% |
Minimum | Median of External Sources | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 36.5 | 37 |
Maximum | Internal model | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 899,000 | $ 770,000 |
Housing Sales Index | 3.94% | 3.74% |
Maximum | Median of External Sources | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 94.9 | 94.3 |
Weighted Average | Internal model | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 176,558 | $ 167,137 |
Housing Sales Index | 1.02% | 0.96% |
Weighted Average | Median of External Sources | Mortgage loans | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 80.9 | 75 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Securities purchased under agreement to resell | $ 55,903 | $ 51,548 |
Mortgage Loans [Abstract] | ||
Derivative Assets, net | 375 | 747 |
Debt, net | ||
Debt, net | 5,799 | 6,010 |
Derivative Liabilities | 269 | 795 |
Held by consolidated trusts | ||
Financial Assets | ||
Securities purchased under agreement to resell | 16,750 | 13,550 |
Debt, net | ||
Debt, net | 639 | 144 |
GAAP Carrying Amount | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,848 | 12,369 |
Restricted Cash and Cash Equivalents | 2,963 | 9,851 |
Securities purchased under agreement to resell | 55,903 | 51,548 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 43,597 | 66,757 |
Trading, at fair value | 40,721 | 44,790 |
Total investments in securities | 84,318 | 111,547 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,871,217 | 1,803,003 |
Derivative Assets, net | 375 | 747 |
Guarantee Assets | 3,171 | 2,298 |
Non Derivative HFS Purchase Commitments Assets | 137 | 108 |
Advances To Lenders and Other Secured Lendings | 1,269 | 1,278 |
Total financial assets | 2,026,201 | 1,992,749 |
Debt, net | ||
Debt, net | 2,034,630 | 2,002,004 |
Derivative Liabilities | 269 | 795 |
Guarantee obligation | 3,081 | 2,208 |
Non Derivative HFS Purchase Commitment Liabilities | 4 | 37 |
Total Financial Liabilities | 2,037,984 | 2,005,044 |
GAAP Carrying Amount | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,774,286 | 1,690,218 |
Debt, net | ||
Debt, net | 1,720,996 | 1,648,683 |
GAAP Carrying Amount | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 96,931 | 112,785 |
Debt, net | ||
Debt, net | 313,634 | 353,321 |
Fair Value | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,848 | 12,369 |
Restricted Cash and Cash Equivalents | 2,963 | 9,851 |
Securities purchased under agreement to resell | 55,903 | 51,548 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 43,597 | 66,757 |
Trading, at fair value | 40,721 | 44,790 |
Total investments in securities | 84,318 | 111,547 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,881,149 | 1,811,495 |
Derivative Assets, net | 375 | 747 |
Netting Adjustment | (8,463) | (11,521) |
Guarantee Assets | 3,359 | 2,490 |
Non Derivative HFS Purchase Commitments Assets | 192 | 126 |
Advances To Lenders and Other Secured Lendings | 1,269 | 1,278 |
Total financial assets | 2,036,376 | 2,001,451 |
Debt, net | ||
Debt, net | 2,041,350 | 2,009,564 |
Derivative Liabilities | 269 | 795 |
Netting Adjustment | (7,220) | (11,897) |
Guarantee obligation | 3,742 | 3,399 |
Non Derivative HFS Purchase Commitment Liabilities | 19 | 82 |
Total Financial Liabilities | 2,045,380 | 2,013,840 |
Fair Value | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,781,048 | 1,696,264 |
Debt, net | ||
Debt, net | 1,723,770 | 1,651,918 |
Fair Value | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 100,101 | 115,231 |
Debt, net | ||
Debt, net | 317,580 | 357,646 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,848 | 12,369 |
Restricted Cash and Cash Equivalents | 2,963 | 9,851 |
Securities purchased under agreement to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 0 | 0 |
Trading, at fair value | 20,159 | 19,402 |
Total investments in securities | 20,159 | 19,402 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 0 | 0 |
Derivative assets at fair value | 0 | 0 |
Guarantee Assets | 0 | 0 |
Non Derivative HFS Purchase Commitments Assets | 0 | |
Advances To Lenders and Other Secured Lendings | 0 | 0 |
Total financial assets | 29,970 | 41,622 |
Debt, net | ||
Debt, net | 0 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Guarantee obligation | 0 | 0 |
Non Derivative HFS Purchase Commitment Liabilities | 0 | 0 |
Total Financial Liabilities | 0 | 0 |
Fair Value | Level 1 | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 0 | 0 |
Debt, net | ||
Debt, net | 0 | 0 |
Fair Value | Level 1 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 0 | 0 |
Debt, net | ||
Debt, net | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Securities purchased under agreement to resell | 55,903 | 51,548 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 32,509 | 41,016 |
Trading, at fair value | 17,645 | 24,168 |
Total investments in securities | 50,154 | 65,184 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,667,306 | 1,585,147 |
Derivative assets at fair value | 8,830 | 12,265 |
Guarantee Assets | 0 | 0 |
Non Derivative HFS Purchase Commitments Assets | 137 | 108 |
Advances To Lenders and Other Secured Lendings | 473 | 0 |
Total financial assets | 1,782,803 | 1,714,252 |
Debt, net | ||
Debt, net | 2,034,779 | 2,004,150 |
Derivative liabilities at fair value | 7,424 | 12,640 |
Guarantee obligation | 0 | 0 |
Non Derivative HFS Purchase Commitment Liabilities | 4 | 37 |
Total Financial Liabilities | 2,042,207 | 2,016,827 |
Fair Value | Level 2 | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,635,137 | 1,554,143 |
Debt, net | ||
Debt, net | 1,721,091 | 1,651,313 |
Fair Value | Level 2 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 32,169 | 31,004 |
Debt, net | ||
Debt, net | 313,688 | 352,837 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 11,088 | 25,741 |
Trading, at fair value | 2,917 | 1,220 |
Total investments in securities | 14,005 | 26,961 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 213,843 | 226,348 |
Derivative assets at fair value | 8 | 3 |
Guarantee Assets | 3,359 | 2,490 |
Non Derivative HFS Purchase Commitments Assets | 55 | 18 |
Advances To Lenders and Other Secured Lendings | 796 | 1,278 |
Total financial assets | 232,066 | 257,098 |
Debt, net | ||
Debt, net | 6,571 | 5,414 |
Derivative liabilities at fair value | 65 | 52 |
Guarantee obligation | 3,742 | 3,399 |
Non Derivative HFS Purchase Commitment Liabilities | 15 | 45 |
Total Financial Liabilities | 10,393 | 8,910 |
Fair Value | Level 3 | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 145,911 | 142,121 |
Debt, net | ||
Debt, net | 2,679 | 605 |
Fair Value | Level 3 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 67,932 | 84,227 |
Debt, net | ||
Debt, net | $ 3,892 | $ 4,809 |
Fair Value Disclosures - Differ
Fair Value Disclosures - Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans Held For Sale, Fair Value | $ 20,054 | $ 16,255 |
Loans Held For Sale, Unpaid Principal Balance, With Fair Value Option Elected | 19,762 | 16,231 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 292 | 24 |
Held by Freddie Mac | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | 5,160 | 5,866 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 4,666 | 5,584 |
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | 494 | 282 |
Held by consolidated trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | 630 | 0 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 630 | 0 |
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | 0 | 0 |
Held by consolidated trusts | Interest-Only-Strip | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | $ 9 | $ 144 |
Legal Contingencies (Details)
Legal Contingencies (Details) $ in Millions | Mar. 14, 2013numberofdefendants | Sep. 20, 2013USD ($) |
LIBOR Lawsuit | ||
Loss Contingencies [Line Items] | ||
Number of defendants | numberofdefendants | 16 | |
Arrowood lawsuit | Arrowood Indemnity Company | ||
Loss Contingencies [Line Items] | ||
Preferred Stock, Value, Outstanding | $ | $ 42 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Sep. 08, 2008 | |
Mortgage Banking [Abstract] | ||
Capital Requirement For On Balance Sheet Assets | 2.50% | |
Capital Requirement For Off Balance Sheet Obligations | 0.45% | |
Critical Capital Requirement For On Balance Sheet Assets | 1.25% | |
Critical Capital Requirement For Off Balance Sheet Obligations | 0.25% | |
Number of days of net worth deficit requiring FHFA to place us into receivership | 60 days | |
Expected Draw Request To Treasury Under Purchase Agreement | $ 312,000,000 | |
Aggregate Funding Received From Treasury Under Purchase Agreement | 71,300,000,000 | |
Cash amount received as a result of issuing the initial liquidation preference | 0 | |
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | |
Increase in Senior Preferred Stock | $ 3,000,000,000 |
Regulatory Capital - Net Worth
Regulatory Capital - Net Worth and Minimum Capital (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Net Worth and Minimum Capital [Abstract] | ||||
GAAP net worth (deficit) | $ (312) | $ 5,075 | $ 2,940 | $ 2,651 |
Core capital (deficit) | (73,037) | (67,717) | ||
Minimum capital requirement | 18,431 | 18,933 | ||
Minimum capital surplus (deficit) | $ (91,468) | $ (86,650) |
Selected Financial Statement115
Selected Financial Statement Line Items - Significant Components of Other Income (Loss) on Our Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other income (loss): | |||
Non-agency mortgage-related securities settlements | $ 4,532 | $ 0 | $ 65 |
Gains (losses) on loans | 928 | (463) | (2,094) |
All other | 922 | 1,054 | 1,150 |
Other income (loss) | 7,480 | 1,254 | (879) |
Other Expense | |||
Property tax and insurance on held for sale loans | 45 | (90) | (1,094) |
All other | (693) | (509) | (412) |
Total other (expense) income | (648) | (599) | (1,506) |
HFS loan purchase commitments | |||
Other income (loss): | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 1,098 | $ 663 | $ 0 |
Selected Financial Statement116
Selected Financial Statement Line Items - Significant Components of Other Assets and Other Liabilities on Our Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other assets: | ||
Real estate owned, net | $ 892 | $ 1,198 |
Accounts and other receivables | 7,397 | 5,083 |
Guarantee asset | 3,171 | 2,298 |
Fixed Assets | 798 | 630 |
Advances to lenders receivables | 796 | 1,278 |
All Other | 636 | 1,871 |
Total other assets | 13,690 | 12,358 |
Other liabilities: | ||
Servicer liabilities | 628 | 730 |
Guarantee obligation | 3,081 | 2,208 |
Accounts payable and accrued expenses | 754 | 957 |
Payables related to securities | 2,813 | 4,510 |
Income Tax Payable | 656 | 0 |
All Other | 1,036 | 1,082 |
Other Liabilities | $ 8,968 | $ 9,487 |