Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 15, 2019 | |
Cover page. | ||
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-34139 | |
Entity Registrant Name | Federal Home Loan Mortgage Corporation | |
Entity Incorporation, State or Country Code | X1 | |
Entity Tax Identification Number | 52-0904874 | |
Entity Address, Address Line One | 8200 Jones Branch Drive | |
Entity Address, City or Town | McLean, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102-3110 | |
City Area Code | (703) | |
Local Phone Number | 903-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 650,059,033 | |
Entity Central Index Key | 0001026214 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Mortgage loans | $ 16,428 | $ 16,787 | $ 51,732 | $ 49,082 |
Investments in securities | 686 | 755 | 2,059 | 2,295 |
Other | 426 | 261 | 1,197 | 703 |
Total interest income | 17,540 | 17,803 | 54,988 | 52,080 |
Interest expense | (15,130) | (14,546) | (46,498) | (42,802) |
Net interest income | 2,410 | 3,257 | 8,490 | 9,278 |
Benefit (provision) for credit losses | 179 | 380 | 474 | 377 |
Net interest income after benefit (provision) for credit losses | 2,589 | 3,637 | 8,964 | 9,655 |
Non-interest income (loss) | ||||
Guarantee fee income | 231 | 209 | 670 | 603 |
Mortgage loans gains (losses) | 1,702 | 94 | 4,174 | 233 |
Investment securities gains (losses) | 164 | (443) | 728 | (1,024) |
Debt gains (losses) | (56) | 158 | 8 | 445 |
Derivative gains (losses) | (1,217) | 728 | (4,912) | 2,974 |
Other income (loss) | 146 | 79 | 389 | 648 |
Non-interest income (loss) | 970 | 825 | 1,057 | 3,879 |
Non-interest expense | ||||
Salaries and employee benefits | (333) | (301) | (983) | (890) |
Professional services | (115) | (120) | (342) | (335) |
Other administrative expense | (172) | (148) | (492) | (422) |
Total administrative expense | (620) | (569) | (1,817) | (1,647) |
Real estate owned operations expense | (58) | (38) | (172) | (87) |
Temporary Payroll Tax Cut Continuation Act of 2011 expense | (408) | (375) | (1,197) | (1,100) |
Other expense | (337) | (218) | (1,036) | (619) |
Non-interest expense | (1,423) | (1,200) | (4,222) | (3,453) |
Income (loss) before income tax (expense) benefit | 2,136 | 3,262 | 5,799 | 10,081 |
Income tax (expense) benefit | (427) | (556) | (1,177) | (1,946) |
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ||||
Changes in unrealized gains (losses) related to available-for-sale securities | 124 | (169) | 674 | (1,065) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 19 | 25 | 57 | 87 |
Changes in defined benefit plans | (4) | (3) | (14) | (13) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 139 | (147) | 717 | (991) |
Comprehensive income (loss) | 1,848 | 2,559 | 5,339 | 7,144 |
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Undistributed net worth sweep, senior preferred stock dividends, or future increase in senior preferred stock liquidation preference | (1,848) | (2,559) | (5,339) | (4,144) |
Net income (loss) attributable to common stockholders | $ (139) | $ 147 | $ (717) | $ 3,991 |
Net income (loss) per common share — basic and diluted | $ (0.04) | $ 0.05 | $ (0.22) | $ 1.23 |
Weighted average common shares outstanding (in millions) — basic and diluted | 3,234 | 3,234 | 3,234 | 3,234 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents (Notes 1, 3, 14) (includes $3,560 and $596 of restricted cash and cash equivalents) | $ 8,708 | $ 7,273 |
Securities purchased under agreements to resell (Notes 3, 10) | 51,187 | 34,771 |
Investments in securities, at fair value (Note 7) | 72,982 | 69,111 |
Mortgage loans held-for-sale (Notes 3, 4) (includes $21,538 and $23,106 at fair value) | 41,118 | 41,622 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $4,854 and $6,139) | 1,956,372 | 1,885,356 |
Accrued interest receivable (Note 3) | 6,790 | 6,728 |
Derivative assets, net (Notes 9, 10) | 1,592 | 335 |
Deferred tax assets, net (Note 12) | 5,784 | 6,888 |
Other assets (Notes 3, 18) (includes $4,590 and $3,929 at fair value) | 25,713 | 10,976 |
Total assets | 2,170,246 | 2,063,060 |
Liabilities | ||
Accrued interest payable (Note 3) | 6,688 | 6,652 |
Debt, net (Notes 3, 8) (includes $4,600 and $5,112 at fair value) | 2,149,259 | 2,044,950 |
Derivative liabilities, net (Notes 9, 10) | 355 | 583 |
Other liabilities (Notes 3, 18) | 7,270 | 6,398 |
Total liabilities | 2,163,572 | 2,058,583 |
Commitments and contingencies (Notes 5, 9, 16) | ||
Equity (Note 11) | ||
Senior preferred stock (redemption value of $77,474 and $75,648) | 72,648 | 72,648 |
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 650,059,033 shares and 650,058,775 shares outstanding | 0 | 0 |
Additional paid-in capital | 0 | 0 |
Retained earnings (accumulated deficit) | (76,780) | (78,260) |
AOCI, net of taxes, related to: | ||
Available-for-sale securities (includes $243 and $221, related to net unrealized gains on securities for which other-than-temporary impairment has been recognized in earnings) | 757 | 83 |
Cash flow hedge relationships | (258) | (315) |
Defined benefit plans | 83 | 97 |
Total AOCI, net of taxes | 582 | (135) |
Treasury stock, at cost, 75,804,853 shares and 75,805,111 shares | (3,885) | (3,885) |
Total equity (See Note 11 for information on our dividend requirement to Treasury) | 6,674 | 4,477 |
Total liabilities and equity | 2,170,246 | 2,063,060 |
Consolidated Balance Sheet Line Item | ||
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $4,854 and $6,139) | 1,956,372 | 1,885,356 |
Total assets | 2,170,246 | 2,063,060 |
Debt, net (Notes 3, 8) (includes $4,600 and $5,112 at fair value) | 2,149,259 | 2,044,950 |
Total liabilities | 2,163,572 | 2,058,583 |
Held by consolidated trusts | ||
Assets | ||
Cash and cash equivalents (Notes 1, 3, 14) (includes $3,560 and $596 of restricted cash and cash equivalents) | 3,495 | 567 |
Securities purchased under agreements to resell (Notes 3, 10) | 21,400 | 12,125 |
Investments in securities, at fair value (Note 7) | 766 | 0 |
Mortgage loans held-for-sale (Notes 3, 4) (includes $21,538 and $23,106 at fair value) | 0 | 0 |
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $4,854 and $6,139) | 1,905,633 | 1,842,850 |
Accrued interest receivable (Note 3) | 6,109 | 5,914 |
Other assets (Notes 3, 18) (includes $4,590 and $3,929 at fair value) | 12,093 | 1,631 |
Total assets | 1,949,496 | 1,863,087 |
Liabilities | ||
Accrued interest payable (Note 3) | 5,519 | 5,335 |
Debt, net (Notes 3, 8) (includes $4,600 and $5,112 at fair value) | 1,869,308 | 1,792,677 |
Total liabilities | 1,874,827 | 1,798,012 |
Consolidated Balance Sheet Line Item | ||
Mortgage loans held-for-investment (Notes 3, 4) (net of allowance for loan losses of $4,854 and $6,139) | 1,905,633 | 1,842,850 |
All other assets | 43,863 | 20,237 |
Total assets | 1,949,496 | 1,863,087 |
Debt, net (Notes 3, 8) (includes $4,600 and $5,112 at fair value) | 1,869,308 | 1,792,677 |
All other liabilities | 5,519 | 5,335 |
Total liabilities | $ 1,874,827 | $ 1,798,012 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 3,560,000,000 | $ 596,000,000 |
Mortgages Held-for-sale, Fair Value Disclosure | 21,538,000,000 | 23,106,000,000 |
Allowance for loan losses | 4,854,000,000 | 6,139,000,000 |
Other Assets, Fair Value Disclosure | 4,590,000,000 | 3,929,000,000 |
Debt instrument recorded at fair value | 4,600,000,000 | 5,112,000,000 |
Senior preferred stock, at redemption value | $ 77,474,000,000 | $ 75,648,000,000 |
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 |
Common Stock, Shares, Outstanding | 650,059,033 | 650,058,775 |
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 | $ 243,000,000 | $ 221,000,000 |
Treasury Stock, Shares | 75,804,853 | 75,805,111 |
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, 2017 | $ (312) | $ 72,336 | $ 14,109 | $ 0 | $ 0 | $ (83,261) | $ 389 | $ (3,885) |
Beginning balance, Shares at Dec. 31, 2017 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income (loss) | 8,135 | 8,135 | ||||||
Other comprehensive income, net of taxes | (991) | (991) | ||||||
Comprehensive income (loss) | 7,144 | 8,135 | (991) | |||||
Cumulative effect of change in accounting principle | 0 | (89) | 89 | |||||
Increase in liquidation preference | 312 | $ 312 | ||||||
Senior Preferred Stock Dividends Paid | (1,585) | (1,585) | ||||||
Ending balance at Sep. 30, 2018 | 5,559 | $ 72,648 | $ 14,109 | $ 0 | 0 | (76,800) | (513) | (3,885) |
Ending balance, Shares at Sep. 30, 2018 | 1 | 464 | 650 | |||||
Beginning balance at Jun. 30, 2018 | 4,585 | $ 72,648 | $ 14,109 | $ 0 | 0 | (77,921) | (366) | (3,885) |
Beginning balance, Shares at Jun. 30, 2018 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income (loss) | 2,706 | 2,706 | ||||||
Other comprehensive income, net of taxes | (147) | (147) | ||||||
Comprehensive income (loss) | 2,559 | 2,706 | (147) | |||||
Senior Preferred Stock Dividends Paid | (1,585) | (1,585) | ||||||
Ending balance at Sep. 30, 2018 | 5,559 | $ 72,648 | $ 14,109 | $ 0 | 0 | (76,800) | (513) | (3,885) |
Ending balance, Shares at Sep. 30, 2018 | 1 | 464 | 650 | |||||
Beginning balance at Dec. 31, 2018 | 4,477 | $ 72,648 | $ 14,109 | $ 0 | 0 | (78,260) | (135) | (3,885) |
Beginning balance, Shares at Dec. 31, 2018 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income (loss) | 4,622 | 4,622 | ||||||
Other comprehensive income, net of taxes | 717 | 717 | ||||||
Comprehensive income (loss) | 5,339 | 4,622 | 717 | |||||
Senior Preferred Stock Dividends Paid | (3,142) | (3,142) | ||||||
Ending balance at Sep. 30, 2019 | 6,674 | $ 72,648 | $ 14,109 | $ 0 | 0 | (76,780) | 582 | (3,885) |
Ending balance, Shares at Sep. 30, 2019 | 1 | 464 | 650 | |||||
Beginning balance at Jun. 30, 2019 | 4,826 | $ 72,648 | $ 14,109 | $ 0 | 0 | (78,489) | 443 | (3,885) |
Beginning balance, Shares at Jun. 30, 2019 | 1 | 464 | 650 | |||||
Comprehensive income: | ||||||||
Net income (loss) | 1,709 | 1,709 | ||||||
Other comprehensive income, net of taxes | 139 | 139 | ||||||
Comprehensive income (loss) | 1,848 | 1,709 | 139 | |||||
Ending balance at Sep. 30, 2019 | $ 6,674 | $ 72,648 | $ 14,109 | $ 0 | $ 0 | $ (76,780) | $ 582 | $ (3,885) |
Ending balance, Shares at Sep. 30, 2019 | 1 | 464 | 650 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net Cash Provided by (Used in) Operating Activities | $ 3,404,000,000 | $ 2,895,000,000 |
Cash flows from investing activities | ||
Purchases of trading securities | (76,091,000,000) | (101,700,000,000) |
Proceeds from sales of trading securities | 61,398,000,000 | 94,934,000,000 |
Proceeds from maturities and repayments of trading securities | 10,733,000,000 | 5,276,000,000 |
Purchases of available-for-sale securities | (6,440,000,000) | (14,308,000,000) |
Proceeds from sales of available-for-sale securities | 9,407,000,000 | 16,976,000,000 |
Proceeds from maturities and repayments of available-for-sale securities | 3,201,000,000 | 4,740,000,000 |
Purchases of held-for-investment mortgage loans | (154,441,000,000) | (113,083,000,000) |
Proceeds from sales of mortgage loans held-for-investment | 11,063,000,000 | 7,121,000,000 |
Repayments of mortgage loans held-for-investment | 232,374,000,000 | 190,264,000,000 |
Advances under secured lending arrangements | (34,627,000,000) | (19,407,000,000) |
Repayments of secured lending arrangements | 1,022,000,000 | 0 |
Net proceeds from dispositions of real estate owned and other recoveries | 891,000,000 | 1,054,000,000 |
Net (increase) decrease in securities purchased under agreements to resell | (16,416,000,000) | 7,363,000,000 |
Derivative premiums and terminations, swap collateral, and exchange settlement payments, net | (10,536,000,000) | 5,418,000,000 |
Other, net | (424,000,000) | (321,000,000) |
Net Cash Provided by (Used in) Investing Activities | 31,114,000,000 | 84,327,000,000 |
Cash flows from financing activities | ||
Increase in liquidation preference of senior preferred stock | 0 | 312,000,000 |
Payment of cash dividends on senior preferred stock | (3,142,000,000) | (1,585,000,000) |
Other, net | (84,000,000) | (2,000,000) |
Net Cash Provided by (Used in) Financing Activities | (33,083,000,000) | (89,995,000,000) |
Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents) | 1,435,000,000 | (2,773,000,000) |
Cash and cash equivalents (includes restricted cash and cash equivalents) at beginning of year | 7,273,000,000 | 9,811,000,000 |
Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period | 8,708,000,000 | 7,038,000,000 |
Cash paid for: | ||
Debt interest | 52,720,000,000 | 48,915,000,000 |
Income taxes | 306,000,000 | 2,125,000,000 |
Held by Freddie Mac | ||
Cash flows from financing activities | ||
Proceeds from issuance of debt | 631,628,000,000 | 444,809,000,000 |
Repayments of debt | (605,323,000,000) | (480,625,000,000) |
Held by consolidated trusts | ||
Cash flows from financing activities | ||
Proceeds from issuance of debt | 178,248,000,000 | 158,825,000,000 |
Repayments of debt | (234,410,000,000) | $ (211,729,000,000) |
Cash and cash equivalents (includes restricted cash and cash equivalents) at beginning of year | 567,000,000 | |
Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period | $ 3,495,000,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2018, or 2018 Annual Report. Throughout our unaudited condensed consolidated financial statements and related notes, we use certain acronyms and terms which are defined in the Glossary of our 2018 Annual Report. Throughout this Form 10-Q, we refer to the three months ended September 30, 2019, the three months ended June 30, 2019, the three months ended March 31, 2019, the three months ended December 31, 2018, the three months ended September 30, 2018, the three months ended June 30, 2018, the three months ended March 31, 2018, and the three months ended December 31, 2017 as "3Q 2019," "2Q 2019," "1Q 2019," "4Q 2018," "3Q 2018," "2Q 2018," "1Q 2018," and "4Q 2017," respectively. We refer to the nine months ended September 30, 2019 and the nine months ended September 30, 2018 as "YTD 2019" and "YTD 2018," respectively. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our 2018 Annual Report. Basis of Presentation The accompanying unaudited condensed 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 authority provided by FHFA to our Board of Directors to oversee management's conduct of our business operations. Certain amounts in prior periods' condensed consolidated financial statements have been reclassified to conform to the current presentation. In the opinion of management, our unaudited condensed consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our results. 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, expenses, gains, and losses during the reporting period. Management has made significant estimates in preparing the financial statements for establishing the allowance for credit losses and valuing financial instruments and other assets and liabilities. Actual results could be different from these estimates. Recently Issued Accounting Guidance Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Condensed Consolidated Financial Statements ASU 2016-02 , Leases (Topic 842) The amendment in this Update addresses the accounting for lease arrangements. January 1, 2019 The adoption of the amendment did not have a material effect on our condensed consolidated financial statements or on our disclosures. ASU 2018-16 , Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes The amendments in this Update permit the OIS rate based on SOFR, as an eligible U.S. benchmark interest rate for purposes of applying hedge accounting under Topic 815. January 1, 2019 The adoption of the amendment did not have a material effect on our condensed consolidated financial statements or on our disclosures. ASU 2018-20 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The amendments in this Update address certain ASU 2016-02 implementation issues including the recognition of taxes collected from lessees, lessor costs paid directly by a lessee, and recognition of variable payments for contracts with lease and non-lease components. January 1, 2019 The adoption of the amendments did not have a material effect on our condensed consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Condensed Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on 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 We have developed our models to estimate lifetime expected credit losses on our financial instruments measured at amortized cost primarily using a discounted cash flow methodology. We are using these models to execute our process for estimating the allowance for credit losses under the new standard in parallel with our existing process for estimating the allowance for credit losses under current GAAP and are developing an appropriate governance process for our estimate of expected credit losses under the new standard. The amendments will be applied through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. While we continue to evaluate the effect that ASU 2016-13, Financial Instruments - Credit Losses, and related amendments will have on our consolidated financial statements, we expect the transition impact to result in an immaterial change in retained earnings. The increase in the allowance for credit losses from incorporating lifetime losses is generally offset by recoveries and a positive impact from including forecasts of economic conditions. The actual impact at adoption will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added. January 1, 2020 On October 1, 2018, we early adopted the amendments to remove or modify certain disclosures, which did not have a material effect on our consolidated financial statements. We are delaying adoption of the amendments to add certain disclosures until their effective date. We do not expect that the adoption of the additional disclosures will have a material effect on our consolidated financial statements. ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. ASU 2018-17 , Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities The amendments in this Update require that indirect interests held through related parties under common control be considered on a proportional basis when determining whether fees paid to decision makers or service providers are variable interests. These amendments align with the determination of whether a reporting entity within a related party group is the primary beneficiary of a VIE. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Condensed Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2019-01 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The amendments in this Update provide guidance for the: (1) lessor's fair value determination of the lease's underlying asset; (2) lessor's statement of cash flows presentation of cash received from sales-type and direct financing leases; and (3) removal of interim transition disclosure requirements related to changes in accounting principles. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. ASU 2019-04 , Codification Improvements to Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825) The amendments in this Update clarify certain aspects of Topic 326 guidance issued in ASU 2016-13 including the scope of the credit losses standard and issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments. The other amendments in this update clarify certain aspects of Topic 815 and Topic 825. January 1, 2020 We are assessing the impact of adopting the Topic 326 amendments as part of our assessment of the adoption impact of ASU 2016-13, Financial Instruments-Credit Losses. We do not expect that the adoption of the Topic 815 and Topic 825 amendments will have a material effect on our consolidated financial statements. ASU 2019-05 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments in this Update provides entities with transition relief upon the adoption of ASU 2016-13 by providing an option to elect fair value option on certain financial instruments measured at amortized cost. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. |
Conservatorship and Related Mat
Conservatorship and Related Matters | 9 Months Ended |
Sep. 30, 2019 | |
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 provided for the Board of Directors to perform certain functions and to oversee management, and the Board delegated to management authority to conduct business operations so that the company can continue to operate in the ordinary course. The directors serve on behalf of, and perform such functions as provided 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. Purchase Agreement 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. Under the August 2012 amendment to the Purchase 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. Pursuant to the September 2019 Letter Agreement, the applicable Capital Reserve Amount is $20.0 billion . 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. In addition, pursuant to the September 2019 Letter Agreement, the liquidation preference of the senior preferred stock will be increased, at the end of each fiscal quarter, beginning on September 30, 2019, by an amount equal to the increase in the Net Worth Amount, if any, during the immediately prior fiscal quarter, until the liquidation preference has increased by $17.0 billion . As a result, the liquidation preference of the senior preferred stock increased from $75.6 billion to $77.5 billion on September 30, 2019 based on the $1.8 billion increase in our Net Worth Amount during 2Q 2019, and will increase to $79.3 billion on December 31, 2019 based on the $1.8 billion increase in our Net Worth Amount during 3Q 2019. Under the September 2019 Letter Agreement, Freddie Mac and Treasury also agreed to negotiate and execute an amendment to the Purchase Agreement that further enhances taxpayer protections by adopting covenants broadly consistent with recommendations for administrative reform contained in the Treasury's September 2019 Housing Reform Plan. Impact of Conservatorship and Related Developments on the Mortgage-Related Investments Portfolio In February 2019, FHFA directed us to maintain the UPB of our mortgage-related investments portfolio at or below $225 billion at all times. The UPB of this portfolio was $221.6 billion at September 30, 2019 . Our ability to acquire and sell mortgage assets continues to be significantly constrained by limitations imposed by the Purchase Agreement and FHFA. Government Support for Our Business We receive substantial support from Treasury and are dependent upon its continued support 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 June 30, 2019, our assets exceeded our liabilities under GAAP; therefore, FHFA, as Conservator, 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 3Q 2019. The amount of available funding remaining under the Purchase Agreement is $140.2 billion and will be reduced by any future draws. See Note 8 and Note 11 for more information on the conservatorship and the Purchase Agreement. Related Parties As a Result of Conservatorship We are deemed related parties with Fannie Mae as both we and Fannie Mae have the same relationships with FHFA and Treasury. CSS was formed in 2013 as a limited liability company equally-owned by Freddie Mac and Fannie Mae and is also deemed a related party. In connection with the formation of CSS, we entered into a limited liability company agreement with Fannie Mae. We and Fannie Mae have each appointed two executives to the CSS Board of Managers and signed governance and operating agreements for CSS, including an updated customer services agreement with Fannie Mae and CSS in May of 2019. In June of 2019, we entered into an agreement with Fannie Mae regarding the commingling of certain of our mortgage securities under the Single Security Initiative and related indemnification obligations. During YTD 2019, we contributed $84 million of capital to CSS, and we have contributed $548 million |
Securitization Activities and C
Securitization Activities and Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
Securitization Activities and Consolidation [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | 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. We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. See Note 5 for additional information on our guarantee activities. Consolidated VIEs The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on our condensed consolidated balance sheets. Table 3.1 - Consolidated VIEs (In millions) As of September 30, 2019 As of December 31, 2018 Condensed Consolidated Balance Sheet Line Item Assets: Cash and cash equivalents (includes $3,494 and $566 of restricted cash and cash equivalents) $3,495 $567 Securities purchased under agreements to resell 21,400 12,125 Investments in securities, at fair value 766 — Mortgage loans held-for-investment 1,905,633 1,842,850 Accrued interest receivable 6,109 5,914 Other assets 12,093 1,631 Total assets of consolidated VIEs $1,949,496 $1,863,087 Liabilities: Accrued interest payable $5,519 $5,335 Debt, net 1,869,308 1,792,677 Total liabilities of consolidated VIEs $1,874,827 $1,798,012 Non-Consolidated VIEs Our involvement with VIEs for which we are not the primary beneficiary takes one or both of two forms - purchasing an investment in these entities or providing a guarantee to these entities. As part of the Single Security Initiative, we have the ability to commingle TBA-eligible Fannie Mae collateral in certain of our resecuritization products that we do not consolidate. We extend our guarantee of these products to cover principal and interest that are payable from the underlying Fannie Mae collateral. See Note 5 for additional information on our guarantee of Fannie Mae securities. The following table presents the carrying amounts and classification of the assets and liabilities recorded on our condensed consolidated balance sheets related to 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 and total assets of the VIEs. Our maximum exposure to loss includes the guaranteed UPB of assets held by the non-consolidated VIEs, the UPB of unguaranteed securities that we acquired from these securitization transactions, and the UPB of guarantor advances made to the holders of the guaranteed securities. Our maximum exposure to loss and total assets of non-consolidated VIEs excludes our investments in and obligations to non-consolidated Freddie Mac resecuritization trusts because we already consolidate the underlying Freddie Mac collateral of these trusts on our condensed consolidated balance sheets and for commingled resecuritization trusts, we view the likelihood of being required to perform on our guarantee of the underlying Fannie Mae collateral as remote. Our maximum exposure to loss also excludes our interest rate exposure on certain securitization activity and other mortgage-related guarantees measured at fair value where our interest rate exposure may be unlimited. We generally reduce our exposure to these guarantees with unlimited interest rate exposure through separate contracts with third parties. 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. Table 3.2 - Non-Consolidated VIEs (In millions) As of September 30, 2019 As of December 31, 2018 Assets and Liabilities Recorded on our Condensed Consolidated Balance Sheets (1) Assets: Investments in securities, at fair value $39,091 $44,020 Accrued interest receivable 214 235 Derivative assets, net 12 1 Other assets 3,737 3,119 Liabilities: Derivative liabilities, net 89 88 Other liabilities 3,511 3,049 Maximum Exposure to Loss 268,269 241,055 Total Assets of Non-Consolidated VIEs 320,221 284,724 (1) Includes our variable interests in REMICs and Strips, commingled Supers, K Certificates, SB Certificates, certain senior subordinate securitization structures, other securitization products, and other risk transfer securitizations that we do not consolidate. |
Mortgage Loans and Loan Loss Re
Mortgage Loans and Loan Loss Reserves | 9 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOANS AND LOAN LOSS RESERVES | Mortgage Loans and Allowance for Credit Losses The table below provides details of the loans on our condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. Table 4.1 - Mortgage Loans September 30, 2019 December 31, 2018 (In millions) Held by Freddie Mac Held by Total Held by Freddie Mac Held by Total Held-for-sale: Single-family $17,249 $— $17,249 $20,946 $— $20,946 Multifamily 25,397 — 25,397 23,959 — 23,959 Total UPB 42,646 — 42,646 44,905 — 44,905 Cost basis and fair value adjustments, net (1,528 ) — (1,528 ) (3,283 ) — (3,283 ) Total held-for-sale loans, net 41,118 — 41,118 41,622 — 41,622 Held-for-investment: Single-family 41,886 1,867,906 1,909,792 35,885 1,814,008 1,849,893 Multifamily 11,291 5,591 16,882 10,828 4,220 15,048 Total UPB 53,177 1,873,497 1,926,674 46,713 1,818,228 1,864,941 Cost basis adjustments (421 ) 34,973 34,552 (1,198 ) 27,752 26,554 Allowance for loan losses (2,017 ) (2,837 ) (4,854 ) (3,009 ) (3,130 ) (6,139 ) Total held-for-investment loans, net 50,739 1,905,633 1,956,372 42,506 1,842,850 1,885,356 Total mortgage loans, net $91,857 $1,905,633 $1,997,490 $84,128 $1,842,850 $1,926,978 The table below provides details of the UPB of loans we purchased, reclassified from held-for-investment to held-for-sale, and sold. Table 4.2 - Loans Purchased, Reclassified from Held-for-Investment to Held-for-Sale, and Sold (In billions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Single-family: Purchases Held-for-investment loans $133.8 $81.6 $305.0 $231.5 Reclassified from held-for-investment to held-for-sale (1) 3.0 13.3 8.1 17.6 Sale of held-for-sale loans (2) 3.7 2.3 9.4 6.5 Multifamily: Purchases Held-for-investment loans 4.4 0.9 6.8 2.6 Held-for-sale loans 23.1 16.3 50.6 42.5 Reclassified from held-for-investment to held-for-sale (1) 0.4 0.2 1.2 0.7 Sale of held-for-sale loans (3) 19.7 14.4 49.5 44.8 (1) We reclassify loans from held-for-investment to held-for-sale when we no longer have the intent or ability to hold for the foreseeable future. For additional information regarding the fair value of our loans classified as held-for-sale, see Note 15 . (2) Our sales of single-family loans reflect the sale of seasoned single-family mortgage loans. The sale of seasoned single-family mortgage loans is part of our strategy to mitigate and reduce our holdings of less liquid assets. (3) Credit Quality Single-Family The current LTV ratio is one key factor we consider when estimating our allowance for credit losses 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 the Enhanced Relief Refinance program) 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. 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 . 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. Table 4.3 - Recorded Investment of Single-Family Held-for-Investment Loans by Current LTV Ratios September 30, 2019 December 31, 2018 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 $1,388,311 $255,880 $4,689 $1,648,880 $1,336,310 $214,703 $6,654 $1,557,667 15-year amortizing fixed-rate 235,185 5,604 103 240,892 251,152 4,522 157 255,831 Adjustable-rate 37,659 1,660 6 39,325 42,117 1,883 7 44,007 Alt-A, interest-only, and option ARM 13,743 1,198 289 15,230 16,498 1,903 559 18,960 Total single-family loans $1,674,898 $264,342 $5,087 $1,944,327 $1,646,077 $223,011 $7,377 $1,876,465 (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 5.18% and 7.24% as of September 30, 2019 and December 31, 2018 , respectively. 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. Multifamily The table below presents the recorded investment in our multifamily held-for-investment loans, by credit quality indicator based on available data through the end of each period presented. These indicators involve significant management judgment. Table 4.4 - Recorded Investment of Multifamily Held-for-Investment Loans by Credit Quality Indicator (In millions) September 30, 2019 December 31, 2018 Credit risk profile by internally assigned grade: (1) Pass $16,684 $14,648 Special mention 66 201 Substandard 149 181 Doubtful — — Total $16,899 $15,030 (1) A loan categorized as: "Pass" is current and adequately protected by the current financial strength and debt service capacity of the borrower; "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses; "Substandard" has a 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 tables below present the recorded investment of our single-family and multifamily loans, held-for-investment, by payment status. Table 4.5 - Recorded Investment of Held-for-Investment Loans by Payment Status September 30, 2019 (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 $1,624,964 $14,846 $3,495 $5,575 $1,648,880 $5,573 15-year amortizing fixed-rate 239,460 1,025 170 237 240,892 237 Adjustable-rate 38,928 249 53 95 39,325 95 Alt-A, interest-only, and option ARM 13,855 608 228 539 15,230 538 Total single-family 1,917,207 16,728 3,946 6,446 1,944,327 6,443 Total multifamily 16,896 3 — — 16,899 13 Total single-family and multifamily $1,934,103 $16,731 $3,946 $6,446 $1,961,226 $6,456 December 31, 2018 (In millions) Current One Two Three Months or (1) Total Non-accrual Single-family: 20- and 30-year or more, amortizing fixed-rate $1,532,499 $14,683 $3,602 $6,883 $1,557,667 $6,881 15-year amortizing fixed-rate 254,376 1,021 171 263 255,831 263 Adjustable-rate 43,549 287 58 113 44,007 113 Alt-A, interest-only, and option ARM 16,975 793 327 865 18,960 864 Total single-family 1,847,399 16,784 4,158 8,124 1,876,465 8,121 Total multifamily 15,030 — — — 15,030 17 Total single-family and multifamily $1,862,429 $16,784 $4,158 $8,124 $1,891,495 $8,138 (1) Includes $1.9 billion and $2.9 billion of single-family loans that were in the process of foreclosure as of September 30, 2019 and December 31, 2018 , respectively. The table below summarizes the delinquency rates of loans within our single-family credit guarantee and multifamily mortgage portfolios. Table 4.6 - Delinquency Rates (Dollars in millions) September 30, 2019 December 31, 2018 Single-family: Non-credit-enhanced portfolio Serious delinquency rate 0.72 % 0.83 % Total number of seriously delinquent loans 42,758 51,197 Credit-enhanced portfolio: (1) Primary mortgage insurance: Serious delinquency rate 0.76 % 0.86 % Total number of seriously delinquent loans 14,358 15,287 Other credit protection: (2) Serious delinquency rate 0.34 % 0.31 % Total number of seriously delinquent loans 15,736 12,920 Total single-family: Serious delinquency rate 0.61 % 0.69 % Total number of seriously delinquent loans 67,991 75,649 Multifamily: (3) Non-credit-enhanced portfolio: Delinquency rate 0.01 % — % UPB of delinquent loans $3 $2 Credit-enhanced portfolio: Delinquency rate 0.04 % 0.01 % UPB of delinquent loans $103 $28 Total multifamily: Delinquency rate 0.04 % 0.01 % UPB of delinquent loans $106 $30 (1) The credit-enhanced categories are not mutually exclusive, as a single loan may be covered by both primary mortgage insurance and other credit protection. (2) 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. (3) Allowance for Credit Losses The allowance for credit losses represents estimates of probable incurred credit losses which we recognize by recording a charge to the provision for credit losses on our condensed consolidated statements of comprehensive income. The allowance for credit losses includes: n Our allowance for loan losses, which pertains to all single-family and multifamily loans classified as held-for-investment on our condensed consolidated balance sheets and n Our reserve for guarantee losses, which pertains to single-family and multifamily loans underlying our senior subordinate securitization structures (non-consolidated), other securitization products, and other mortgage-related guarantees. Table 4.7 - Details of Allowance for Credit Losses The table below summarizes changes in our allowance for credit losses. 3Q 2019 3Q 2018 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 $2,238 $3,042 $46 $5,326 $4,887 $3,497 $49 $8,433 Provision (benefit) for credit losses (84 ) (97 ) 1 (180 ) (522 ) 143 1 (378 ) Charge-offs (394 ) (12 ) (1 ) (407 ) (1,262 ) (13 ) (2 ) (1,277 ) Recoveries 104 3 — 107 117 2 — 119 Transfers, net (1) 103 (103 ) — — 306 (306 ) — — Other (2) 41 — — 41 76 11 — 87 Single-family ending balance 2,008 2,833 46 4,887 3,602 3,334 48 6,984 Multifamily ending balance 9 4 5 18 8 2 8 18 Total ending balance $2,017 $2,837 $51 $4,905 $3,610 $3,336 $56 $7,002 YTD 2019 YTD 2018 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 $3,003 $3,127 $46 $6,176 $5,251 $3,680 $48 $8,979 Provision (benefit) for credit losses (509 ) 29 3 (477 ) (629 ) 266 6 (357 ) Charge-offs (1,208 ) (45 ) (3 ) (1,256 ) (2,198 ) (44 ) (6 ) (2,248 ) Recoveries 331 10 — 341 336 5 — 341 Transfers, net (1) 291 (291 ) — — 597 (597 ) — — Other (2) 100 3 — 103 245 24 — 269 Single-family ending balance 2,008 2,833 46 4,887 3,602 3,334 48 6,984 Multifamily ending balance 9 4 5 18 8 2 8 18 Total ending balance $2,017 $2,837 $51 $4,905 $3,610 $3,336 $56 $7,002 (1) Relates to removal of delinquent loans from consolidated trusts and resecuritization after such removal. (2) Primarily includes capitalization of past due interest on modified loans. A significant number of unsecuritized single-family loans on our condensed consolidated balance sheets are individually evaluated for impairment while substantially all single-family loans held by our consolidated trusts are collectively evaluated for impairment. The allowance for loan losses associated with our held-for-investment unsecuritized loans represented approximately 3.8% and 6.6% of the recorded investment in such loans at September 30, 2019 and December 31, 2018 , respectively, and a substantial portion of the allowance associated with these loans represented interest rate concessions provided to borrowers as part of loan modifications. The allowance for loan losses associated with loans held by our consolidated trusts represented approximately 0.1% and 0.2% of the recorded investment in such loans as of September 30, 2019 and December 31, 2018 , respectively. The table below presents our allowance for loan losses and our recorded investment in loans, held-for-investment, by impairment evaluation methodology. Table 4.8 - Net Investment in Loans September 30, 2019 December 31, 2018 (In millions) Single-family Multifamily Total Single-family Multifamily Total Recorded investment: Collectively evaluated $1,904,203 $16,818 $1,921,021 $1,830,044 $14,945 $1,844,989 Individually evaluated 40,124 81 40,205 46,421 85 46,506 Total recorded investment 1,944,327 16,899 1,961,226 1,876,465 15,030 1,891,495 Ending balance of the allowance for loan losses: Collectively evaluated (1,515 ) (13 ) (1,528 ) (1,761 ) (9 ) (1,770 ) Individually evaluated (3,326 ) — (3,326 ) (4,369 ) — (4,369 ) Total ending balance of the allowance (4,841 ) (13 ) (4,854 ) (6,130 ) (9 ) (6,139 ) Net investment in loans $1,939,486 $16,886 $1,956,372 $1,870,335 $15,021 $1,885,356 Allowance for Loan Losses Determined on an Individual Basis Impaired Loans The tables below present the UPB, recorded investment, related allowance for loan losses, average recorded investment, and interest income recognized for individually impaired loans. Table 4.9 - Individually Impaired Loans September 30, 2019 December 31, 2018 (In millions) UPB Recorded Investment Associated Allowance UPB Recorded Investment Associated Single-family: With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $3,008 $2,390 N/A $3,335 $2,666 N/A 15-year amortizing fixed-rate 20 20 N/A 23 22 N/A Adjustable-rate 183 182 N/A 227 226 N/A Alt-A, interest-only, and option ARM 1,004 853 N/A 1,286 1,083 N/A Total with no allowance recorded 4,215 3,445 N/A 4,871 3,997 N/A With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 32,441 32,118 ($2,784 ) 37,579 36,959 ($3,660 ) 15-year amortizing fixed-rate 641 650 (14 ) 703 713 (19 ) Adjustable-rate 133 132 (7 ) 164 162 (8 ) Alt-A, interest-only, and option ARM 3,962 3,779 (521 ) 4,867 4,590 (682 ) Total with an allowance recorded 37,177 36,679 (3,326 ) 43,313 42,424 (4,369 ) Combined single-family: 20- and 30-year or more, amortizing fixed-rate 35,449 34,508 (2,784 ) 40,914 39,625 (3,660 ) 15-year amortizing fixed-rate 661 670 (14 ) 726 735 (19 ) Adjustable-rate 316 314 (7 ) 391 388 (8 ) Alt-A, interest-only, and option ARM 4,966 4,632 (521 ) 6,153 5,673 (682 ) Total single-family 41,392 40,124 (3,326 ) 48,184 46,421 (4,369 ) Multifamily: With no allowance recorded (1) 87 81 N/A 89 82 N/A With an allowance recorded — — — 3 3 — Total multifamily 87 81 — 92 85 — Total single-family and multifamily $41,479 $40,205 ($3,326 ) $48,276 $46,506 ($4,369 ) Referenced footnotes are included after the last table in the Impaired Loans section. 3Q 2019 3Q 2018 (In millions) Average Interest Interest Income Recognized On Cash Basis (3) Average Recorded Investment Interest Income Recognized Interest Income Recognized On Cash Basis (3) Single-family: With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $2,450 $59 $1 $3,142 $83 $3 15-year amortizing fixed-rate 19 1 — 20 — — Adjustable rate 191 3 — 238 3 — Alt-A, interest-only, and option ARM 880 16 — 1,159 21 1 Total with no allowance recorded 3,540 79 1 4,559 107 4 With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 32,618 412 47 42,393 520 52 15-year amortizing fixed-rate 641 5 1 740 7 2 Adjustable rate 129 2 — 183 2 — Alt-A, interest-only, and option ARM 3,866 55 9 5,622 72 7 Total with an allowance recorded 37,254 474 57 48,938 601 61 Combined single-family: 20- and 30-year or more, amortizing fixed-rate 35,068 471 48 45,535 603 55 15-year amortizing fixed-rate 660 6 1 760 7 2 Adjustable rate 320 5 — 421 5 — Alt-A, interest-only, and option ARM 4,746 71 9 6,781 93 8 Total single-family 40,794 553 58 53,497 708 65 Multifamily: With no allowance recorded (1) 81 1 1 112 2 1 With an allowance recorded — — — 3 — — Total multifamily 81 1 1 115 2 1 Total single-family and multifamily $40,875 $554 $59 $53,612 $710 $66 Referenced footnotes are included after the last table in the Impaired Loans section YTD 2019 YTD 2018 (In millions) Average Interest Interest Income Recognized On Cash Basis (3) Average Interest Interest Income Recognized On Cash Basis (3) Single-family — With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $2,573 $207 $6 $3,399 $268 $13 15-year amortizing fixed-rate 20 1 — 21 3 — Adjustable rate 209 9 — 255 9 — Alt-A, interest-only, and option ARM 932 52 1 1,319 68 3 Total with no allowance recorded 3,734 269 7 4,994 348 16 With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 34,051 1,394 138 46,140 1,621 217 15-year amortizing fixed-rate 665 17 3 830 21 8 Adjustable rate 139 5 1 210 4 2 Alt-A, interest-only, and option ARM 4,097 180 18 6,357 205 24 Total with an allowance recorded 38,952 1,596 160 53,537 1,851 251 Combined single-family: 20- and 30-year or more, amortizing fixed-rate 36,624 1,601 144 49,539 1,889 230 15-year amortizing fixed-rate 685 18 3 851 24 8 Adjustable rate 348 14 1 465 13 2 Alt-A, interest-only, and option ARM 5,029 232 19 7,676 273 27 Total single-family 42,686 1,865 167 58,531 2,199 267 Multifamily: With no allowance recorded (1) 83 3 1 132 5 2 With an allowance recorded — — — 3 — — Total multifamily 83 3 1 135 5 2 Total single-family and multifamily $42,769 $1,868 $168 $58,666 $2,204 $269 (1) Individually impaired loans with no 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. Troubled Debt Restructurings (TDRs) The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs, based on the original product category of the loan before the loan was classified as a TDR. Loans classified as a TDR in one period may be subject to further action (such as a modification or remodification) in a subsequent period. In such cases, the subsequent action would not be reflected in the table below since the loan would already have been classified as a TDR. Table 4.10 - TDR Activity 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (Dollars in millions) Number of Post-TDR Number of Post-TDR 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 5,908 $998 7,157 $1,091 19,668 $3,262 37,847 $6,159 15-year amortizing fixed-rate 693 69 909 83 2,364 230 5,194 514 Adjustable-rate 128 22 197 27 403 64 773 122 Alt-A, interest-only, and option ARM 285 45 414 65 1,331 190 2,294 379 Total single-family 7,014 1,134 8,677 1,266 23,766 3,746 46,108 7,174 Multifamily — $— — $— — $— 1 $15 (1) The pre-TDR recorded investment for single-family loans initially classified as TDR during 3Q 2019 and YTD 2019 was $1.1 billion and $3.7 billion , respectively, compared to $1.3 billion and $7.2 billion during 3Q 2018 and YTD 2018, respectively. Of the single-family loan modifications that were classified as TDRs during 3Q 2019, 3Q 2018, YTD 2019 and YTD 2018, respectively: n 9% , 9% , 8% , and 12% involved interest rate reductions and, in certain cases, term extensions; n 23% , 21% , 24% , and 24% involved principal forbearance in addition to interest rate reductions and, in certain cases, term extensions; n The average term extension was 188 , 110 , 177 , and 126 months; and n The average interest rate reduction was 0.2% , 0.2% , 0.1% , and 0.3% . 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. Table 4.11 - Payment Defaults of Completed TDR Modifications 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (Dollars in millions) Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Single-family: 20- and 30-year or more, amortizing fixed-rate 3,256 $407 3,584 $512 10,533 $1,237 9,671 $1,435 15-year amortizing fixed-rate 96 9 116 10 329 24 435 36 Adjustable-rate 33 3 53 9 95 10 139 21 Alt-A, interest-only, and option ARM 178 24 302 55 687 96 827 154 Total single-family 3,563 443 4,055 586 11,644 1,367 11,072 1,646 Multifamily — $— — $— — $— — $— In addition to modifications, loans may be classified as TDRs as a result of other loss mitigation activities (i.e., repayment plans, forbearance agreements, or trial period modifications). During YTD 2019 and YTD 2018, 3,983 and 6,487 , respectively, of such loans (with a post-TDR recorded investment of $0.4 billion and $0.8 billion , respectively) experienced a payment default within a year after the loss mitigation activity occurred. Non-Cash Investing and Financing Activities During YTD 2019 and YTD 2018, we acquired $162.7 billion and $122.6 billion , respectively, of loans held-for-investment in exchange for the issuance of debt securities of consolidated trusts in guarantor swap transactions. We received approximately $28.6 billion and $18.8 billion of loans from sellers in guarantor swap transactions and $1.6 billion and $0.1 billion |
Guarantee Activities
Guarantee Activities | 9 Months Ended |
Sep. 30, 2019 | |
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. 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 part of the Single Security Initiative, we have the ability to commingle TBA-eligible Fannie Mae collateral in certain of our resecuritization products. We extend our guarantee of these products to cover principal and interest that are payable from the underlying Fannie Mae collateral. Because both Freddie Mac and Fannie Mae are under the common control of FHFA, and due to Fannie Mae’s status as a GSE and the funding commitment available to it through its senior preferred stock purchase agreement with Treasury, we view the likelihood of being required to perform on our guarantee of Fannie Mae collateral as remote and do not charge an incremental guarantee fee to include Fannie Mae securities in our resecuritization products. Thus, we do not record a guarantee obligation with respect to Fannie Mae securities backing Freddie Mac resecuritization products, and we exclude from the following table approximately $17 billion of Fannie Mae securities backing Freddie Mac resecuritization products as of September 30, 2019. Table 5.1 - Financial Guarantees September 30, 2019 December 31, 2018 ( Dollars in millions , terms in years) Maximum (1) Recognized (2) Maximum Maximum (1) Recognized (2) Maximum Single-family: Securitization activity guarantees $24,387 $317 40 $17,783 $220 40 Other mortgage-related guarantees 7,139 180 30 6,139 167 30 Total single-family $31,526 $497 $23,922 $387 Multifamily: Securitization activity guarantees $241,853 $3,128 40 $221,245 $2,746 40 Other mortgage-related guarantees 10,122 430 35 9,779 428 35 Total multifamily $251,975 $3,558 $231,024 $3,174 Other guarantees measured at fair value $24,976 $183 30 $16,251 $242 30 (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 condensed consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $51 million and $52 million as of September 30, 2019 and December 31, 2018 , respectively, and is included within other liabilities on our condensed consolidated balance sheets. For other guarantees measured at fair value, this amount represents the fair value of the contract. |
Credit Enhancements
Credit Enhancements | 9 Months Ended |
Sep. 30, 2019 | |
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 associated with mortgage loans or guarantees recognized on our condensed consolidated balance sheets or embedded in debt instruments recognized on our condensed consolidated balance sheets. Mortgage Loan Credit Enhancements The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to our mortgage loan credit enhancements. For information about counterparty credit risk associated with credit enhancement providers, see Note 14 . Table 6.1 - Mortgage Loan Credit Enhancements September 30, 2019 December 31, 2018 (In millions) Total Current and Protected UPB (1) Maximum Coverage Total Current and Protected UPB (1) Maximum Coverage Single-family: Primary mortgage insurance $410,999 $105,171 $378,594 $96,996 ACIS transactions (2) 869,148 10,081 807,885 9,123 STACR Trust transactions 280,889 9,154 161,152 5,026 Other 28,347 6,070 18,136 5,389 Total mortgage loan credit enhancements $130,476 $116,534 (1) Underlying loans may be covered by more than one form of credit enhancement. (2) As of September 30, 2019 and December 31, 2018, our counterparties posted collateral on our ACIS transactions of $2.0 billion and $1.5 billion , respectively. Guarantee 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 guarantee credit enhancements. Table 6.2 - Guarantee Credit Enhancements September 30, 2019 December 31, 2018 (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) $22,876 $4,076 $16,271 $2,933 Other 1,129 1,129 1,226 1,226 Total single-family 5,205 4,159 Multifamily: Subordination (non-consolidated VIEs) 240,485 38,645 220,733 35,661 Other 3,204 919 2,349 815 Total multifamily 39,564 36,476 Total guarantee credit enhancements $44,769 $40,635 (1) Underlying loans may be covered by more than one form of credit enhancement. For subordination, total current and protected UPB includes the UPB of the guaranteed securities, which represents the UPB of the assets included in the trust net of the protection provided by the subordinated securities, and the UPB of guarantor advances made to the holders of the guaranteed securities. (2) For subordination, maximum coverage represents the outstanding UPB of the securities that are subordinate to Freddie Mac guaranteed securities and held by third parties. For all other credit enhancements, maximum coverage represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. Debt with Embedded Credit Enhancements The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to debt with embedded credit enhancements. Table 6.3 - Debt with Embedded Credit Enhancements September 30, 2019 December 31, 2018 (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 $554,572 $15,962 $605,263 $17,596 Subordination (consolidated VIEs) 21,843 943 25,006 1,036 Total single-family 16,905 18,632 Multifamily: SCR notes 2,523 126 2,667 133 Subordination (consolidated VIEs) 2,700 280 2,700 280 Total multifamily 406 413 Total debt with embedded credit enhancements $17,311 $19,045 (1) Underlying loans may be covered by more than one form of credit enhancement. For STACR debt notes and SCR 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, which represents the UPB of the assets included in the trust net of the protection provided by the subordinated securities. (2) For STACR debt notes and SCR notes, maximum coverage amount represents the outstanding balance of the STACR debt notes and SCR notes held by third parties. For subordination, maximum coverage amount represents the outstanding UPB of the securities that are subordinate to Freddie Mac guaranteed securities and held by third parties. Other Credit Enhancements The Multifamily segment also has other credit enhancements in the form of collateral posting requirements, indemnification, pool insurance, 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 and related recoveries pursuant to these agreements have not been significant and therefore these other types of credit enhancements are excluded from the tables above. |
Investments in Securities
Investments in Securities | 9 Months Ended |
Sep. 30, 2019 | |
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. Table 7.1 - Investments in Securities (In millions) September 30, 2019 December 31, 2018 Trading securities $44,449 $35,548 Available-for-sale securities 28,533 33,563 Total fair value of investments in securities $72,982 $69,111 As of September 30, 2019 and December 31, 2018, we did not classify any securities as held-to-maturity, although we may elect to do so in the future. Trading Securities The table below presents the estimated fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities. Table 7.2 - Trading Securities (In millions) September 30, 2019 December 31, 2018 Mortgage-related securities: Freddie Mac $12,972 $13,821 Other agency 7,194 2,551 Non-agency 1 1 Total mortgage-related securities 20,167 16,373 Non-mortgage-related securities 24,282 19,175 Total fair value of trading securities $44,449 $35,548 For trading securities held at September 30, 2019 , we recorded net unrealized gains (losses) of $27 million and $310 million during 3Q 2019 and YTD 2019, respectively. For trading securities held at September 30, 2018, we recorded net unrealized gains (losses) of ($305) million and ($951) million during 3Q 2018 and YTD 2018, respectively. Available-for-Sale Securities At September 30, 2019 and December 31, 2018, all available-for-sale securities were mortgage-related securities. The tables below present the amortized cost, gross unrealized gains and losses, and fair value by major security type for our securities classified as available-for-sale. Table 7.3 - Available-for-Sale Securities September 30, 2019 Amortized Gross Gross Unrealized Losses Fair (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $25,492 $707 $— ($80 ) $26,119 Other agency 1,005 26 — (5 ) 1,026 Non-agency and other 1,078 310 — — 1,388 Total available-for-sale securities $27,575 $1,043 $— ($85 ) $28,533 December 31, 2018 Amortized Gross Gross Unrealized Losses Fair (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $30,407 $320 $— ($528 ) $30,199 Other agency 1,675 38 — (7 ) 1,706 Non-agency and other 1,378 282 — (2 ) 1,658 Total available-for-sale securities $33,460 $640 $— ($537 ) $33,563 (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 September 30, 2019 scheduled to contractually mature after ten years was $24.0 billion , with an additional $4.1 billion scheduled to contractually mature after five years through ten years. Available-for-Sale Securities in a Gross Unrealized Loss Position The tables below present available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater. Table 7.4 - Available-for-Sale Securities in a Gross Unrealized Loss Position September 30, 2019 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 $5,312 ($41 ) $2,951 ($39 ) Other agency 56 — 531 (5 ) Non-agency and other — — — — Total available-for-sale securities in a gross unrealized loss position $5,368 ($41 ) $3,482 ($44 ) December 31, 2018 Less than 12 Months 12 Months or Greater (In millions) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Available-for-sale securities: Freddie Mac $4,259 ($38 ) $14,751 ($490 ) Other agency 351 (1 ) 638 (6 ) Non-agency and other 43 (1 ) 6 (1 ) Total available-for-sale securities in a gross unrealized loss position $4,653 ($40 ) $15,395 ($497 ) At September 30, 2019, the gross unrealized losses relate to 150 Realized Gains and 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. Table 7.5 - Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Gross realized gains $68 $69 $169 $544 Gross realized losses (6 ) (131 ) (40 ) (232 ) Net realized gains (losses) $62 ($62 ) $129 $312 |
Debt Securities and Subordinate
Debt Securities and Subordinated Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT SECURITIES AND SUBORDINATED BORROWINGS | Debt Securities and Subordinated Borrowings The table below summarizes the balances of total debt, net per our condensed consolidated balance sheets and the interest expense per our condensed consolidated statements of comprehensive income. Table 8.1 - Total Debt, Net Balance, Net Interest Expense (In millions) September 30, 2019 December 31, 2018 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Debt securities of consolidated trusts held by third parties $1,869,308 $1,792,677 $13,324 $12,827 $41,001 $37,996 Other debt: Short-term debt 94,344 51,080 499 361 1,419 832 Long-term debt 185,607 201,193 1,307 1,358 4,078 3,974 Total other debt 279,951 252,273 1,806 1,719 5,497 4,806 Total debt, net $2,149,259 $2,044,950 $15,130 $14,546 $46,498 $42,802 As of September 30, 2019, our aggregate indebtedness was $282.3 billion , which was below the $300.0 billion debt cap limit imposed by the Purchase Agreement for 2019. Our aggregate indebtedness calculation primarily includes the par value of other short- and long-term debt. 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. Table 8.2 - Debt Securities of Consolidated Trusts Held by Third Parties September 30, 2019 December 31, 2018 (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 2019 - 2057 $1,487,105 $1,525,505 3.69 % 2019 - 2057 $1,389,113 $1,426,060 3.72 % 20-year fixed-rate 2019 - 2039 69,068 70,764 3.42 2019 - 2039 70,547 72,354 3.43 15-year fixed-rate 2019 - 2034 224,190 227,915 2.89 2019 - 2034 240,310 244,587 2.89 Adjustable-rate 2019 - 2049 32,837 33,474 3.28 2019 - 2049 38,361 39,153 3.12 Interest-only 2026 - 2041 4,608 4,677 4.72 2026 - 2048 5,322 5,386 4.41 FHA/VA 2020 - 2049 665 680 4.69 2019 - 2046 720 736 4.78 Total single-family 1,818,473 1,863,015 1,744,373 1,788,276 Multifamily 2020-2049 6,233 6,293 3.14 2019 - 2047 4,365 4,401 4.02 Total debt securities of consolidated trusts held by third parties $1,824,706 $1,869,308 $1,748,738 $1,792,677 (1) Includes $737 million and $755 million at September 30, 2019 and December 31, 2018, respectively, of debt of consolidated trusts that represents the fair value of debt securities with the fair value option elected. (2) The effective interest rate for debt securities of consolidated trusts held by third parties was 2.81% and 3.07% as of September 30, 2019 and December 31, 2018, respectively. Other Debt Table 8.3 - Total Other Debt September 30, 2019 December 31, 2018 (Dollars in millions) Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Other short-term debt: Discount notes and Reference Bills $42,719 $42,550 2.09 % $28,787 $28,621 2.36 % Medium-term notes 43,098 43,094 2.34 16,440 16,440 2.10 Securities sold under agreements to repurchase 8,700 8,700 2.06 6,019 6,019 2.40 Total other short-term debt 94,517 94,344 2.20 51,246 51,080 2.28 Other long-term debt: Original maturities on or before December 31, 2019 12,442 12,435 1.63 58,002 57,968 1.54 2020 48,348 48,337 2.00 42,296 42,275 1.78 2021 36,669 36,669 2.05 30,898 30,901 2.06 2022 26,044 26,022 2.34 20,802 20,775 2.46 2023 10,064 10,045 2.65 15,929 15,906 3.09 Thereafter 37,392 34,994 3.68 18,068 15,579 5.91 STACR and SCR debt (3) 16,088 16,257 6.03 17,729 18,004 6.04 Hedging-related basis adjustments N/A 848 N/A (215 ) Total other long-term debt 187,047 185,607 2.74 203,724 201,193 2.58 Total other debt (4) $281,564 $279,951 $254,970 $252,273 (1) Represents par value, net of associated discounts or premiums and issuance cost. Includes $3.9 billion and $4.4 billion at September 30, 2019 and December 31, 2018, 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. (3) 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 generally without penalty. (4) Carrying amount for other debt includes callable debt of $105.5 billion and $107.2 billion at September 30, 2019 and December 31, 2018, respectively. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | Derivatives 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 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 refer to those interest-rate swaps that the U.S. Commodity Futures Trading Commission has determined are subject to the central clearing requirement of the Dodd-Frank Act. OTC derivatives refer to those derivatives that are neither exchange-traded derivatives nor cleared derivatives. Types of Derivatives We principally use the following types of derivatives: n LIBOR- and SOFR-based interest-rate swaps; n LIBOR- and Treasury-based purchased options (including swaptions); and n LIBOR-, Treasury-, and SOFR-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. Hedge Accounting Fair Value Hedges We apply fair value hedge accounting to certain single-family mortgage loans and certain issuances of debt where we hedge the changes in fair value of these items attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. Beginning in September 2019, we implemented a new fair value hedge accounting strategy for single-family mortgage loans that applies certain hedge accounting elections, including the last-of-layer method, allowable under amended hedge accounting guidance we adopted during 4Q 2017. Under the last-of-layer method, we hedge the changes in fair value of a portion of a closed pool of single-family mortgage loans that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flows. As part of this new strategy, we have also elected to measure the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at the hedge inception and by assuming the hedged item has a term that reflects only the designated cash flows being hedged. 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 condensed 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. 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. Amounts reclassified from AOCI are recorded in interest expense. During YTD 2019 and YTD 2018, we reclassified from AOCI into earnings, pre-tax losses of $72 million and $106 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 condensed consolidated balance sheets. Table 9.1 - Derivative Assets and Liabilities at Fair Value September 30, 2019 December 31, 2018 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 $217,377 $2,346 ($10 ) $145,386 $1,380 ($181 ) Pay-fixed 246,557 6 (4,381 ) 170,899 476 (2,287 ) Basis (floating to floating) 5,924 — — 5,404 1 — Total interest-rate swaps 469,858 2,352 (4,391 ) 321,689 1,857 (2,468 ) Option-based: Call swaptions Purchased 61,275 3,963 — 43,625 2,007 — Written 2,500 — (37 ) 4,400 — (133 ) Put swaptions Purchased (1) 63,600 512 — 88,075 1,565 — Written 8,700 — (41 ) 1,750 — (4 ) Other option-based derivatives (2) 10,368 721 — 10,481 628 — Total option-based 146,443 5,196 (78 ) 148,331 4,200 (137 ) Futures 181,479 — — 161,185 — — Commitments 152,300 195 (171 ) 36,044 90 (179 ) Credit derivatives 1,822 1 (23 ) 2,030 — (35 ) Other 16,991 12 (103 ) 12,212 1 (103 ) Total derivatives not designated as hedges 968,893 7,756 (4,766 ) 681,491 6,148 (2,922 ) Designated as fair value hedges Interest-rate swaps: Receive-fixed 113,425 145 (91 ) 117,038 23 (935 ) Pay-fixed 78,966 7 (1,620 ) 77,513 247 (571 ) Total derivatives designated as fair value hedges 192,391 152 (1,711 ) 194,551 270 (1,506 ) Derivative interest and other receivable (payable) 912 (872 ) 889 (1,096 ) Netting adjustments (3) (7,228 ) 6,994 (6,972 ) 4,941 Total derivative portfolio, net $1,161,284 $1,592 ($355 ) $876,042 $335 ($583 ) (1) Includes swaptions on credit indices with a notional or contractual amount of $17.3 billion and $45.9 billion at September 30, 2019 and December 31, 2018 , respectively, and a fair value of $6.0 million and $113.0 million at September 30, 2019 and December 31, 2018 , respectively. (2) Primarily consists of purchased interest-rate caps and floors. (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 condensed consolidated statements of comprehensive income as derivative gains (losses). Table 9.2 - Gains and Losses on Derivatives (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Not designated as hedges Interest-rate swaps: Receive-fixed $2,060 ($1,004 ) $7,580 ($5,080 ) Pay-fixed (3,866 ) 1,721 (12,152 ) 7,922 Basis (floating to floating) (3 ) 19 7 (9 ) Total interest-rate swaps (1,809 ) 736 (4,565 ) 2,833 Option-based: Call swaptions Purchased 1,398 (402 ) 2,981 (1,392 ) Written (109 ) 35 (343 ) 76 Put swaptions Purchased (355 ) 136 (1,406 ) 524 Written 19 (2 ) 83 (23 ) Other option-based derivatives (1) (6 ) (73 ) 93 (205 ) Total option-based 947 (306 ) 1,408 (1,020 ) Other: Futures (262 ) 277 (1,283 ) 728 Commitments (54 ) 69 (366 ) 672 Credit derivatives 6 (4 ) 1 (14 ) Other 2 (71 ) 36 (64 ) Total other (308 ) 271 (1,612 ) 1,322 Accrual of periodic cash settlements: Receive-fixed interest-rate swaps 39 39 (32 ) 335 Pay-fixed interest-rate swaps (126 ) (50 ) (220 ) (536 ) Other 40 38 109 40 Total accrual of periodic cash settlements (47 ) 27 (143 ) (161 ) Total ($1,217 ) $728 ($4,912 ) $2,974 (1) Primarily consists of purchased interest-rate caps and floors. Fair Value Hedges The tables below present the effects of fair value hedge accounting by condensed consolidated statements of comprehensive income line, including the gains and losses on derivatives and hedged items designated in qualifying hedge relationships and other components due to the application of hedge accounting. Table 9.3 - Gains and Losses on Fair Value Hedges 3Q 2019 3Q 2018 (In millions) Interest Income - Mortgage Loans Interest Expense Interest Income - Mortgage Loans Interest Expense Total amounts of income and expense line items presented in our condensed consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $16,428 ($15,130 ) $16,787 ($14,546 ) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 1,298 — (755 ) — Derivatives designated as hedging instruments (1,588 ) — 776 — Interest accruals on hedging instruments (48 ) — (96 ) — Discontinued hedge-related basis adjustments amortization (210 ) — 38 — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (36 ) — 121 Derivatives designated as hedging instruments — 91 — (50 ) Interest accruals on hedging instruments — (18 ) — (96 ) Discontinued hedge-related basis adjustments amortization — 18 — (1 ) YTD 2019 YTD 2018 (In millions) Interest Income - Mortgage Loans Interest Expense Interest Income - Mortgage Loans Interest Expense Total amounts of income and expense line items presented in our condensed consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $51,732 ($46,498 ) $49,082 ($42,802 ) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 5,691 — (3,441 ) — Derivatives designated as hedging instruments (5,609 ) — 3,087 — Interest accruals on hedging instruments (4 ) — (373 ) — Discontinued hedge-related basis adjustments amortization (229 ) — 86 — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (1,141 ) — 931 Derivatives designated as hedging instruments — 1,288 — (728 ) Interest accruals on hedging instruments — (230 ) — (219 ) Discontinued hedge-related basis adjustments amortization — 43 — (2 ) Cumulative Basis Adjustments Due to Fair Value Hedging The tables below present 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. Table 9.4 - Cumulative Basis Adjustments Due to Fair Value Hedging September 30, 2019 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Last-of-Layer Method (In millions) Total Under the Last-of-Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $470,584 $4,225 ($379 ) $4,604 $266,975 $20,472 Debt (130,653 ) (848 ) — (114 ) — — December 31, 2018 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Last-of-Later Method (In millions) Total Under the Last-of-Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $193,547 ($1,237 ) $— ($1,237 ) $— $— Debt (127,215 ) 216 — (8 ) — — |
Collateral and Offsetting of As
Collateral and Offsetting of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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. 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. In the event that all of our counterparties for OTC derivatives were to default simultaneously on September 30, 2019 , our maximum loss for accounting purposes after applying netting agreements and collateral on an individual counterparty basis would have been approximately $44 million . Cleared and Exchange-Traded Derivatives The majority of our interest-rate swaps are subject to the central clearing requirement of the Dodd-Frank Act. 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. 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 net exposure on our forward purchase and sale commitments, which are treated as derivatives, was $195 million and $90 million at September 30, 2019 and December 31, 2018 , 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). 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. These agreements may allow us to repledge all or a portion of the collateral pledged to us, and we may repledge such collateral periodically, although it is not typically our practice to repledge collateral that has been pledged to us. 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. 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. Offsetting of Financial Assets and Liabilities At September 30, 2019 and December 31, 2018, 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 tables below display offsetting and collateral information related to derivatives, securities purchased under agreements to resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or similar arrangements. Securities sold under agreements to repurchase are included in debt, net on our condensed consolidated balance sheets. Table 10.1 - Offsetting and Collateral Information of Financial Assets and Liabilities September 30, 2019 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 $8,583 ($5,373 ) ($1,975 ) $1,235 ($1,191 ) $44 Cleared and exchange-traded derivatives 29 (1 ) 121 149 — 149 Other 208 — — 208 — 208 Total derivatives 8,820 (5,374 ) (1,854 ) 1,592 (1,191 ) 401 Securities purchased under agreements to resell (3) 51,187 — — 51,187 (51,187 ) — Total $60,007 ($5,374 ) ($1,854 ) $52,779 ($52,378 ) $401 Liabilities: Derivatives: OTC derivatives ($7,029 ) $5,373 $1,601 ($55 ) $— ($55 ) Cleared and exchange-traded derivatives (23 ) 1 19 (3 ) — (3 ) Other (297 ) — — (297 ) — (297 ) Total derivatives (7,349 ) 5,374 1,620 (355 ) — (355 ) Securities sold under agreements to repurchase (3) (8,700 ) — — (8,700 ) 8,700 — Total ($16,049 ) $5,374 $1,620 ($9,055 ) $8,700 ($355 ) Referenced footnotes are included after the next table. December 31, 2018 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 $7,213 ($4,544 ) ($2,448 ) $221 ($173 ) $48 Cleared and exchange-traded derivatives 3 — 20 23 — 23 Other 91 — — 91 — 91 Total derivatives 7,307 (4,544 ) (2,428 ) 335 (173 ) 162 Securities purchased under agreements to resell (3) 34,771 — — 34,771 (34,771 ) — Total $42,078 ($4,544 ) ($2,428 ) $35,106 ($34,944 ) $162 Liabilities: Derivatives: OTC derivatives ($4,963 ) $4,544 $296 ($123 ) $— ($123 ) Cleared and exchange-traded derivatives (244 ) — 101 (143 ) — (143 ) Other (317 ) — — (317 ) — (317 ) Total derivatives (5,524 ) 4,544 397 (583 ) — (583 ) Securities sold under agreements to repurchase (3) (6,019 ) — — (6,019 ) 6,019 — Total ($11,543 ) $4,544 $397 ($6,602 ) $6,019 ($583 ) (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 condensed 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 $4.0 billion and $2.5 billion as of September 30, 2019 and December 31, 2018 , respectively. (3) Does not include the impacts of netting by central clearing organizations. We primarily execute securities purchased under agreements to resell transactions with central clearing organizations where we have the right to repledge the collateral that has been pledged to us, either with the central clearing organization or with other counterparties. At September 30, 2019 , and December 31, 2018 , we had $27.6 billion and $20.1 billion , respectively, of securities pledged to us in these transactions. In addition, at September 30, 2019 and December 31, 2018 , we had $2.2 billion and $2.5 billion Collateral Pledged Collateral Pledged to Freddie Mac We have cash pledged to us as collateral primarily related to OTC derivative transactions. At September 30, 2019 , we had $3.1 billion pledged to us as collateral that was invested as part of our liquidity and contingency operating portfolio. Collateral Pledged by Freddie Mac The tables below summarize 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. Table 10.2 - Collateral in the Form of Securities Pledged September 30, 2019 (In millions) Derivatives Securities sold under agreements to repurchase Other (3) Total Cash equivalents (1) $— $284 $— $284 Debt securities of consolidated trusts (2) 747 — 169 916 Available-for-sale securities — — 3 3 Trading securities 3,228 8,429 57 11,714 Total securities pledged $3,975 $8,713 $229 $12,917 December 31, 2018 (In millions) Derivatives Securities sold under agreements to repurchase Other (3) Total Cash equivalents (1) $— $2,595 $— $2,595 Debt securities of consolidated trusts (2) 362 — 179 541 Available-for-sale securities — — 1 1 Trading securities 2,160 3,432 73 5,665 Total securities pledged $2,522 $6,027 $253 $8,802 (1) Represents U.S. Treasury securities accounted for as cash equivalents. (2) Represents debt securities of consolidated trusts 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 condensed consolidated balance sheets. (3) 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. Table 10.3 - Underlying Collateral Pledged September 30, 2019 (In millions) Overnight and continuous 30 days or less After 30 days through 90 days Greater than 90 days Total U.S. Treasury securities and other $2,684 $5,112 $917 $— $8,713 |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | Stockholders' Equity and Earnings Per Share Accumulated Other Comprehensive Income The tables below present changes in AOCI after the effects of our federal statutory tax rate of 21% Table 11.1 - Changes in AOCI by Component, Net of Taxes YTD 2019 (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 $83 ($315 ) $97 ($135 ) Other comprehensive income before reclassifications 776 — (2 ) 774 Amounts reclassified from accumulated other comprehensive income (102 ) 57 (12 ) (57 ) Changes in AOCI by component 674 57 (14 ) 717 Ending balance $757 ($258 ) $83 $582 YTD 2018 (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 $662 ($356 ) $83 $389 Other comprehensive income before reclassifications (821 ) — (1 ) (822 ) Amounts reclassified from accumulated other comprehensive income (244 ) 87 (12 ) (169 ) Changes in AOCI by component (1,065 ) 87 (13 ) (991 ) Cumulative effect of change in accounting principle (1) 143 (73 ) 19 89 Ending balance ($260 ) ($342 ) $89 ($513 ) (1) Includes the effect of adopting the accounting guidance on reclassification of stranded tax effects of the Tax Cuts and Jobs Act in 1Q 2018. Reclassifications from AOCI to Net Income The table below presents reclassifications from AOCI to net income, including the affected line item in our condensed consolidated statements of comprehensive income. Table 11.2 - Reclassifications from AOCI to Net Income (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 AOCI related to available-for-sale securities Affected line items in the consolidated statements of comprehensive income: Investment securities gains (losses) $62 ($64 ) $129 $309 Income tax (expense) or benefit (13 ) 13 (27 ) (65 ) Net of tax 49 (51 ) 102 244 AOCI related to cash flow hedge relationships Affected line items in the consolidated statements of comprehensive income: Interest expense (24 ) (31 ) (72 ) (106 ) Income tax (expense) or benefit 5 6 15 19 Net of tax (19 ) (25 ) (57 ) (87 ) AOCI related to defined benefit plans Affected line items in the consolidated statements of comprehensive income: Salaries and employee benefits 5 5 15 15 Income tax (expense) or benefit (1 ) (1 ) (3 ) (3 ) Net of tax 4 4 12 12 Total reclassifications in the period net of tax $34 ($72 ) $57 $169 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 $0.3 billion at both September 30, 2019 and September 30, 2018 , 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 $49 million , net of taxes, of the $0.3 billion of cash flow hedge losses in AOCI at September 30, 2019 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 14 years. Senior Preferred Stock Pursuant to the September 2019 Letter Agreement, for each dividend period from July 1, 2019 and thereafter, the applicable Capital Reserve Amount used in determining the dividend payable to Treasury will be $20.0 billion , rather than $3.0 billion as previously provided. As a result of this change, we did not have a dividend requirement to Treasury in September 2019, as our Net Worth Amount of $4.8 billion as of June 30, 2019 was lower than the $20.0 billion applicable Capital Reserve Amount. As of September 30, 2019 , our assets exceeded our liabilities under GAAP; therefore, no draw is being requested from Treasury under the Purchase Agreement. Based on our Net Worth Amount of $6.7 billion as of September 30, 2019 and the applicable Capital Reserve Amount of $20.0 billion , we will not have a dividend requirement to Treasury in December 2019. See Note 2 for additional information. Our cumulative senior preferred stock dividend payments remain at $119.7 billion as of September 30, 2019. The aggregate liquidation preference of the senior preferred stock owned by Treasury was $75.6 billion as of June 30, 2019. Pursuant to the September 2019 Letter Agreement, the liquidation preference of the senior preferred stock will be increased, at the end of each fiscal quarter, beginning on September 30, 2019, by an amount equal to the increase in the Net Worth Amount, if any, during the immediately prior fiscal quarter, until the liquidation preference has increased by $17.0 billion . During 2Q 2019, our Net Worth Amount increased by $1.8 billion . As a result, the liquidation preference of the senior preferred stock increased to $77.5 billion on September 30, 2019 , and will increase to $79.3 billion on December 31, 2019 based on the $1.8 billion The table below provides a summary of our senior preferred stock outstanding at September 30, 2019 . Table 11.3 - Senior Preferred Stock ( 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 September 30, 2019 — — — N/A 1,826 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 March 30, 2018 — — — N/A 312 Total senior preferred stock 1.00 1.00 $1.00 $77,474 Stock Issuances and Repurchases We did not repurchase or issue any of our common shares or non-cumulative preferred stock during 3Q 2019. Earnings Per Share We have participating securities related to restricted stock units with dividend equivalent rights that receive dividends as declared on an equal basis with common shares but are not obligated to participate in undistributed net losses. These participating securities consist of 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 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. There were no stock options outstanding at both September 30, 2019 and September 30, 2018 . Dividends and Dividend Restrictions No common dividends were declared during YTD 2019. At the direction of our Conservator, we paid dividends of $1.5 billion and $1.7 billion on the senior preferred stock during 1Q 2019 and 2Q 2019, respectively. As a result of the increase in the applicable Capital Reserve Amount pursuant to the September 2019 Letter Agreement, we did not declare or pay a dividend on the senior preferred stock during 3Q 2019. We also did not declare or pay dividends on any other series of Freddie Mac preferred stock outstanding during YTD 2019. Our payment of dividends on Freddie Mac common stock or any series of Freddie Mac preferred stock (other than senior preferred stock) is subject to certain restrictions as described in Note 11 in our 2018 Annual Report. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes Income Tax Expense For 3Q 2019 and 3Q 2018, we reported income tax expense of $0.4 billion and $0.6 billion , respectively, resulting in effective tax rates of 20.0% and 17.0% , respectively. For YTD 2019 and YTD 2018, we reported income tax expense of $1.2 billion and $1.9 billion , respectively, resulting in effective tax rates of 20.3% and 19.3% , respectively. Our effective tax rates differed from the statutory tax rate of 21% in these periods primarily due to our recognition of low income housing tax credits and tax-exempt interest income. Deferred Tax Assets, Net We had net deferred tax assets of $5.8 billion and $6.9 billion as of September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 , our net deferred tax assets consisted primarily of basis differences related to derivative instruments and deferred fees. Based on all positive and negative evidence available at September 30, 2019 , 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 carryforward, will be realized. As of September 30, 2019 , we have a $37 million valuation allowance recorded against our capital loss carryforward deferred tax asset. Unrecognized Tax Benefits We evaluated all income tax positions and determined that there were no uncertain tax positions that required reserves as of September 30, 2019 . We are under IRS examination for tax years 2013 through 2016 related to the carryback of 2016 capital losses to the prior three years. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
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. Material corporate-level activities that are infrequent in nature and based on decisions outside the control of the management of our reportable segments are included in the All Other category. For more information, see our 2018 Annual Report. Segment Earnings We present Segment Earnings by reclassifying certain credit guarantee-related activities and investment-related activities between various line items on our GAAP condensed consolidated statements of comprehensive income and allocating certain revenues and expenses, including certain returns on assets, funding and hedging 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 The table below presents Segment Earnings by segment. Table 13.1 - Segment Earnings (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Segment Earnings (loss), net of taxes: Single-family Guarantee $1,250 $1,183 $2,945 $2,884 Multifamily 581 549 1,294 1,572 Capital Markets (122 ) 974 383 3,679 All Other — — — — Total Segment Earnings, net of taxes 1,709 2,706 4,622 8,135 Net income (loss) $1,709 $2,706 $4,622 $8,135 Comprehensive income (loss) of segments: Single-family Guarantee $1,247 $1,181 $2,936 $2,876 Multifamily 591 505 1,426 1,436 Capital Markets 10 873 977 2,832 All Other — — — — Comprehensive income (loss) of segments 1,848 2,559 5,339 7,144 Comprehensive income (loss) $1,848 $2,559 $5,339 $7,144 The tables below present detailed reconciliations between our GAAP condensed consolidated statements of comprehensive income and Segment Earnings for our reportable segments and All Other. Table 13.2 - Segment Earnings and Reconciliations to GAAP Condensed Consolidated Statements of Comprehensive Income 3Q 2019 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 $— $292 $497 $— $789 $1,621 $2,410 Guarantee fee income 2,075 233 — — 2,308 (2,077 ) 231 Benefit (provision) for credit losses 134 (1 ) — — 133 46 179 Mortgage loans gains (losses) — 1,087 — — 1,087 615 1,702 Investment securities gains (losses) — 31 136 — 167 (3 ) 164 Debt gains (losses) 51 (69 ) (17 ) — (35 ) (21 ) (56 ) Derivative gains (losses) — (793 ) (438 ) — (1,231 ) 14 (1,217 ) Other income (loss) 318 89 (234 ) — 173 (27 ) 146 Administrative expense (399 ) (125 ) (96 ) — (620 ) — (620 ) REO operations (expense) income (61 ) — — — (61 ) 3 (58 ) Other non-interest (expense) income (554 ) (17 ) (3 ) — (574 ) (171 ) (745 ) Income tax (expense) benefit (314 ) (146 ) 33 — (427 ) — (427 ) Net income (loss) 1,250 581 (122 ) — 1,709 — 1,709 Changes in unrealized gains (losses) related to available-for-sale securities — 10 114 — 124 — 124 Changes in unrealized gains (losses) related to cash flow hedge relationships — — 19 — 19 — 19 Changes in defined benefit plans (3 ) — (1 ) — (4 ) — (4 ) Total other comprehensive income (loss), net of taxes (3 ) 10 132 — 139 — 139 Comprehensive income (loss) $1,247 $591 $10 $— $1,848 $— $1,848 YTD 2019 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 $— $805 $2,002 $— $2,807 $5,683 $8,490 Guarantee fee income 5,597 671 — — 6,268 (5,598 ) 670 Benefit (provision) for credit losses 221 (3 ) — — 218 256 474 Mortgage loans gains (losses) — 2,909 — — 2,909 1,265 4,174 Investment securities gains (losses) — 41 698 — 739 (11 ) 728 Debt gains (losses) 113 (46 ) (27 ) — 40 (32 ) 8 Derivative gains (losses) (47 ) (2,650 ) (2,095 ) — (4,792 ) (120 ) (4,912 ) Other income (loss) 836 292 198 — 1,326 (937 ) 389 Administrative expense (1,173 ) (357 ) (287 ) — (1,817 ) — (1,817 ) REO operations (expense) income (185 ) — — — (185 ) 13 (172 ) Other non-interest (expense) income (1,667 ) (38 ) (9 ) — (1,714 ) (519 ) (2,233 ) Income tax (expense) benefit (750 ) (330 ) (97 ) — (1,177 ) — (1,177 ) Net income (loss) 2,945 1,294 383 — 4,622 — 4,622 Changes in unrealized gains (losses) related to available-for-sale securities — 134 540 — 674 — 674 Changes in unrealized gains (losses) related to cash flow hedge relationships — — 57 — 57 — 57 Changes in defined benefit plans (9 ) (2 ) (3 ) — (14 ) — (14 ) Total other comprehensive income (loss), net of taxes (9 ) 132 594 — 717 — 717 Comprehensive income (loss) $2,936 $1,426 $977 $— $5,339 $— $5,339 3Q 2018 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 $— $280 $845 $— $1,125 $2,132 $3,257 Guarantee fee income 1,676 210 — — 1,886 (1,677 ) 209 Benefit (provision) for credit losses 205 2 — — 207 173 380 Mortgage loans gains (losses) — (17 ) — — (17 ) 111 94 Investment securities gains (losses) — (97 ) (336 ) — (433 ) (10 ) (443 ) Debt gains (losses) 20 5 137 — 162 (4 ) 158 Derivative gains (losses) (25 ) 375 427 — 777 (49 ) 728 Other income (loss) 387 27 179 — 593 (514 ) 79 Administrative expense (371 ) (109 ) (89 ) — (569 ) — (569 ) REO operations (expense) income (42 ) — — — (42 ) 4 (38 ) Other non-interest (expense) income (413 ) (14 ) — — (427 ) (166 ) (593 ) Income tax (expense) benefit (254 ) (113 ) (189 ) — (556 ) — (556 ) Net income (loss) 1,183 549 974 — 2,706 — 2,706 Changes in unrealized gains (losses) related to available-for-sale securities — (44 ) (125 ) — (169 ) — (169 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 25 — 25 — 25 Changes in defined benefit plans (2 ) — (1 ) — (3 ) — (3 ) Total other comprehensive income (loss), net of taxes (2 ) (44 ) (101 ) — (147 ) — (147 ) Comprehensive income (loss) $1,181 $505 $873 $— $2,559 $— $2,559 YTD 2018 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 $— $846 $2,410 $— $3,256 $6,022 $9,278 Guarantee fee income 4,932 609 — — 5,541 (4,938 ) 603 Benefit (provision) for credit losses 366 20 — — 386 (9 ) 377 Mortgage loans gains (losses) — (233 ) — — (233 ) 466 233 Investment securities gains (losses) — (353 ) (524 ) — (877 ) (147 ) (1,024 ) Debt gains (losses) 80 22 368 — 470 (25 ) 445 Derivative gains (losses) (37 ) 1,254 2,038 — 3,255 (281 ) 2,974 Other income (loss) 592 128 541 — 1,261 (613 ) 648 Administrative expense (1,070 ) (315 ) (262 ) — (1,647 ) — (1,647 ) REO operations (expense) income (101 ) 1 — — (100 ) 13 (87 ) Other non-interest (expense) income (1,192 ) (33 ) (6 ) — (1,231 ) (488 ) (1,719 ) Income tax (expense) benefit (686 ) (374 ) (886 ) — (1,946 ) — (1,946 ) Net income (loss) 2,884 1,572 3,679 — 8,135 — 8,135 Changes in unrealized gains (losses) related to available-for-sale securities — (134 ) (931 ) — (1,065 ) — (1,065 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 87 — 87 — 87 Changes in defined benefit plans (8 ) (2 ) (3 ) — (13 ) — (13 ) Total other comprehensive income (loss), net of taxes (8 ) (136 ) (847 ) — (991 ) — (991 ) Comprehensive income (loss) $2,876 $1,436 $2,832 $— $7,144 $— $7,144 |
Concentration of Credit and Oth
Concentration of Credit and Other Risks | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT AND OTHER RISKS | Concentration of Credit and Other Risks Single-Family Credit Guarantee Portfolio The table below summarizes the concentration by loan portfolio and geographic area of the approximately $2.0 trillion and $1.9 trillion UPB of our single-family credit guarantee portfolio as of September 30, 2019 and December 31, 2018, 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. Table 14.1 - Concentration of Credit Risk of Our Single-Family Credit Guarantee Portfolio September 30, 2019 December 31, 2018 Percent of Credit Losses Percentage of Portfolio Serious Delinquency Rate Percentage of Portfolio Serious Delinquency Rate YTD 2019 YTD 2018 Core single-family loan portfolio 84 % 0.24 % 82 % 0.22 % 16 % 12 % Legacy and relief refinance single-family loan portfolio 16 1.77 18 1.93 84 88 Total 100 % 0.61 100 % 0.69 100 % 100 % Region (1) West 30 % 0.35 30 % 0.38 12 % 17 % Northeast 24 0.86 24 0.96 40 40 North Central 16 0.60 16 0.63 19 18 Southeast 16 0.72 16 0.90 22 18 Southwest 14 0.51 14 0.57 7 7 Total 100 % 0.61 100 % 0.69 100 % 100 % State (2) Florida 6 % 0.75 6 % 1.01 14 % 10 % New York 5 1.20 5 1.37 12 12 New Jersey 3 1.07 3 1.24 10 10 Illinois 4 0.82 5 0.86 10 9 California 18 0.33 18 0.35 7 10 All other 64 0.57 63 0.64 47 49 Total 100 % 0.61 % 100 % 0.69 % 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 YTD 2019. 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 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 loans in our single-family credit guarantee portfolio. The table includes a presentation of each higher-risk category in isolation. A single loan may fall within more than one category (for example, an interest-only loan may also have an original LTV ratio greater than 90%). Loans with a combination of these attributes will have an even higher risk of delinquency than those with an individual attribute. Table 14.2 - Certain Higher Risk Categories in Our Single-Family Credit Guarantee Portfolio Percentage of Portfolio (1) Serious Delinquency Rate (1) (Percentage of portfolio based on UPB) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest-only 1 % 1 % 2.72 % 3.43 % Alt-A 1 1 3.75 4.13 Original LTV ratio greater than 90% (2) 18 18 0.92 1.04 Lower credit scores at origination (less than 620) 2 2 4.24 4.59 (1) Excludes loans underlying certain other securitization products for which data was not available. (2) Includes HARP loans, which we purchased as part of our participation in the MHA Program. Sellers and Servicers Sellers We acquire a significant portion of our single-family and multifamily loan purchase volume from several large sellers. The tables below summarize the concentration of single-family and multifamily sellers who provided 10% or more of our purchase volume during YTD 2019 or YTD 2018. Table 14.3 - Seller Concentration Single-family Sellers (1) YTD 2019 YTD 2018 JPMorgan Chase Bank, N.A. 16 % 5 % Wells Fargo Bank, N.A. 7 12 Other top 10 sellers 33 32 Top 10 single-family sellers 56 % 49 % Multifamily Sellers (1) YTD 2019 YTD 2018 CBRE Capital Markets, Inc. 16 % 19 % Berkadia Commercial Mortgage LLC 15 12 Other top 10 sellers 48 47 Top 10 multifamily sellers 79 % 78 % (1) Sellers presented based on those with the highest percentage of purchase volume during YTD 2019. 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 in recent years, and we purchase a significant share of our loans from them. Our top five non-depository sellers provided approximately 26% and 22% of our single-family purchase volume during YTD 2019 and YTD 2018, respectively. Servicers Significant portions of our single-family and multifamily loans are serviced by several large servicers. The tables below summarize 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 as of September 30, 2019 or December 31, 2018. For purposes of determining the concentration of servicers in the tables below, our multifamily mortgage portfolio excludes loans underlying multifamily securitizations where we are not in first loss position, primarily K Certificates and SB Certificates . Table 14.4 - Servicer Concentration Single-family Servicers (2) September 30, 2019 (1) December 31, 2018 (1) Wells Fargo Bank, N.A. 15 % 17 % JPMorgan Chase Bank, N.A. 10 8 Other top 10 servicers 31 31 Top 10 single-family servicers 56 % 56 % Multifamily Servicers (2) September 30, 2019 December 31, 2018 Wells Fargo Bank, N.A. 15 % 14 % Berkadia Commercial Mortgage LLC 11 11 CBRE Capital Markets, Inc. 11 14 Other top 10 servicers 40 36 Top 10 multifamily servicers 77 % 75 % (1) Percentage of servicing volume is based on the total single-family credit guarantee portfolio, which includes loans where we do not exercise servicing control. However, loans where we do not exercise servicing control are not included for purposes of determining the concentration of servicers who serviced more than 10% of our single-family credit guarantee portfolio because we do not know which entity serves as the primary servicer for such loans. (2) Servicers presented based on those with the highest percentage of servicing volume as of September 30, 2019. 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 in recent years and now service a large share of our loans. As of September 30, 2019 and December 31, 2018 , approximately 18% and 16% , respectively, of our single-family credit guarantee portfolio was serviced by our top five non-depository servicers. We actively manage the performance of our largest non-depository servicers. Additionally, as part of our efforts on home ownership retention and loss mitigation, we have been consolidating a portion of our default servicing with Freddie Mac selected specialty servicers. Credit Enhancement Providers 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 also have similar exposure to insurers and reinsurers through our ACIS transactions where we purchase insurance policies as part of our CRT activities. In March 2019, we implemented a set of revised Private Mortgage Insurer Eligibility Requirements (PMIERs) with enhancements to the risk-based capital requirements for mortgage insurers. In addition, we revised master policies with mortgage insurers which provide contract certainty and improve our ability to collect claims for mortgage insurance obligations. These policies were approved by FHFA and are expected to become effective during 2020. We evaluate the recovery and collectability from mortgage insurers as part of the estimate of our allowance for credit losses. See Note 4 for additional information. As of September 30, 2019 , mortgage insurers provided coverage with maximum loss limits of $105.2 billion , for $411.0 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 October 23, 2016, Genworth Financial, Inc. announced that it had entered into an agreement to be acquired by China Oceanwide Holdings Group Co., Ltd. Because Genworth Mortgage Insurance Corporation, a subsidiary of Genworth Financial, Inc., is an approved mortgage insurer, Freddie Mac has evaluated the planned acquisition and approved China Oceanwide Holdings Group's control of Genworth Mortgage Insurance Corporation. Regulatory and other approvals of the acquisition are still pending. Table 14.5 - Mortgage Insurer Concentration Mortgage Insurance Coverage (2) Mortgage Insurer Credit Rating (1) September 30, 2019 December 31, 2018 Arch Mortgage Insurance Company A- 22 % 24 % Radian Guaranty Inc. BBB 20 20 Mortgage Guaranty Insurance Corporation BBB 18 19 Genworth Mortgage Insurance Corporation BB+ 15 14 Essent Guaranty, Inc. BBB+ 15 14 Total 90 % 91 % (1) Ratings are for the corporate entity to which we have the greatest exposure. Latest rating available as of September 30, 2019. Represents the lower of S&P and Moody’s credit ratings stated in terms of the S&P equivalent. (2) Includes primary mortgage insurance and pool insurance. Coverage amounts may include coverage provided by affiliates and subsidiaries of the counterparty. We received proceeds of $0.1 billion and $0.2 billion during YTD 2019 and YTD 2018, 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 September 30, 2019 and December 31, 2018 . The balance of these receivables, net of associated reserves, was approximately $0.1 billion at both September 30, 2019 and December 31, 2018 . 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. As of both September 30, 2019 and December 31, 2018 , we had cumulative unpaid deferred payment obligations of $0.5 billion from these insurers. We have reserved substantially 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. As part of our ACIS and other CRT transactions, we regularly obtain insurance coverage from insurers and reinsurers. These transactions incorporate several features designed to increase the likelihood that we will recover on the claims we file with the insurers and reinsurers, including the following: n In each transaction, we require the individual insurers and reinsurers to post collateral to cover portions of their exposure, which helps to promote certainty and timeliness of claim payment and n While private mortgage insurance companies are required to be monoline (i.e., to participate solely in the mortgage insurance business, although the holding company may be a diversified insurer), many of our insurers and reinsurers in these transactions participate in multiple types of insurance business, which helps diversify their risk exposure. Other Investments Counterparties We are exposed to the non-performance of counterparties relating to 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 counterparty be evaluated using our internal counterparty rating model prior to our entering into such transactions. We monitor the financial strength of our counterparties to these transactions and may use collateral maintenance requirements to manage our exposure to individual counterparties. The permitted term and dollar limits for each of these transactions are also based on the counterparty's financial strength. Our other investments (including non-mortgage-related securities and cash equivalents) counterparties are primarily major financial institutions, including other GSEs, Treasury, the Federal Reserve Bank of New York, GSD/FICC, highly-rated supranational institutions, depository and non-depository institutions, brokers and dealers, and government money market funds. As of September 30, 2019 and December 31, 2018 , including amounts related to our consolidated VIEs, the balance in our other investments was $89.6 billion and $63.1 billion , respectively. The balances consist 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, and secured lending activities. As of September 30, 2019 , all of our securities purchased under agreements to resell were fully collateralized. As of September 30, 2019 and December 31, 2018, $2.2 billion and $2.5 billion |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
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 technique 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option. Table 15.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis September 30, 2019 (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 $— $23,969 $2,150 $— $26,119 Other agency — 992 34 — 1,026 Non-agency and other — 21 1,367 — 1,388 Total available-for-sale securities, at fair value — 24,982 3,551 — 28,533 Trading, at fair value: Mortgage-related securities: Freddie Mac — 10,042 2,930 — 12,972 Other agency — 7,189 5 — 7,194 All other — — 1 — 1 Total mortgage-related securities — 17,231 2,936 — 20,167 Non-mortgage-related securities 21,952 2,330 — — 24,282 Total trading securities, at fair value 21,952 19,561 2,936 — 44,449 Total investments in securities 21,952 44,543 6,487 — 72,982 Mortgage loans: Held-for-sale, at fair value — 21,538 — — 21,538 Derivative assets, net: Interest-rate swaps — 2,504 — — 2,504 Option-based derivatives — 5,196 — — 5,196 Other — 192 16 — 208 Subtotal, before netting adjustments — 7,892 16 — 7,908 Netting adjustments (1) — — — (6,316 ) (6,316 ) Total derivative assets, net — 7,892 16 (6,316 ) 1,592 Other assets: Guarantee asset, at fair value — — 4,225 — 4,225 Non-derivative held-for-sale purchase commitments, at fair value — 223 — — 223 All other, at fair value — — 142 — 142 Total other assets — 223 4,367 — 4,590 Total assets carried at fair value on a recurring basis $21,952 $74,196 $10,870 ($6,316 ) $100,702 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $4 $733 $— $737 Other debt, at fair value — 3,733 130 — 3,863 Derivative liabilities, net: Interest-rate swaps — 6,102 — — 6,102 Option-based derivatives — 78 — — 78 Other — 257 40 — 297 Subtotal, before netting adjustments — 6,437 40 — 6,477 Netting adjustments (1) — — — (6,122 ) (6,122 ) Total derivative liabilities, net — 6,437 40 (6,122 ) 355 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 1 — — 1 All other, at fair value — — 2 — 2 Total liabilities carried at fair value on a recurring basis $— $10,175 $905 ($6,122 ) $4,958 Referenced footnote is included after the next table. December 31, 2018 (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 $— $26,102 $4,097 $— $30,199 Other agency — 1,668 38 — 1,706 Non-agency and other — 18 1,640 — 1,658 Total available-for-sale securities, at fair value — 27,788 5,775 — 33,563 Trading, at fair value: Mortgage-related securities: Freddie Mac — 10,535 3,286 — 13,821 Other agency — 2,544 7 — 2,551 All other — — 1 — 1 Total mortgage-related securities — 13,079 3,294 — 16,373 Non-mortgage-related securities 15,885 3,290 — — 19,175 Total trading securities, at fair value 15,885 16,369 3,294 — 35,548 Total investments in securities 15,885 44,157 9,069 — 69,111 Mortgage loans: Held-for-sale, at fair value — 23,106 — — 23,106 Derivative assets, net: Interest-rate swaps — 2,127 — — 2,127 Option-based derivatives — 4,200 — — 4,200 Other — 90 1 — 91 Subtotal, before netting adjustments — 6,417 1 — 6,418 Netting adjustments (1) — — — (6,083 ) (6,083 ) Total derivative assets, net — 6,417 1 (6,083 ) 335 Other assets: Guarantee asset, at fair value — — 3,633 — 3,633 Non-derivative held-for-sale purchase commitments, at fair value — 159 — — 159 All other, at fair value — — 137 — 137 Total other assets — 159 3,770 — 3,929 Total assets carried at fair value on a recurring basis $15,885 $73,839 $12,840 ($6,083 ) $96,481 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $27 $728 $— $755 Other debt, at fair value — 4,223 134 — 4,357 Derivative liabilities, net: Interest-rate swaps — 3,974 — — 3,974 Option-based derivatives — 137 — — 137 Other — 225 92 — 317 Subtotal, before netting adjustments — 4,336 92 — 4,428 Netting adjustments (1) — — — (3,845 ) (3,845 ) Total derivative liabilities, net — 4,336 92 (3,845 ) 583 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 17 — — 17 Total liabilities carried at fair value on a recurring basis $— $8,603 $954 ($3,845 ) $5,712 (1) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. Level 3 Fair Value Measurements The tables below present a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The tables also present gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of comprehensive income for Level 3 assets and liabilities. Table 15.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs 3Q 2019 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 $2,744 $23 $16 $39 $— $— ($531 ) ($102 ) $— $— $2,150 $1 Other agency 36 — — — — — — (2 ) — — 34 — Non-agency and other 1,494 26 (10 ) 16 — — (87 ) (56 ) — — 1,367 3 Total available-for-sale mortgage-related securities 4,274 49 6 55 — — (618 ) (160 ) — — 3,551 4 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,028 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,930 (31 ) Other agency 5 — — — — — — — — — 5 — All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,034 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,936 (31 ) Other assets: Guarantee asset 3,941 15 — 15 — 439 — (170 ) — — 4,225 15 All other, at fair value 126 12 — 12 24 12 (27 ) (5 ) — — 142 (3 ) Total other assets $4,067 $27 $— $27 $24 $451 ($27 ) ($175 ) $— $— $4,367 $12 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 $733 $— $— $— $— $— $— $— $— $— $733 $— Other debt, at fair value 129 — — — 2 — — (1 ) — — 130 — Net derivatives (2) 40 (8 ) — (8 ) — — — (8 ) — — 24 (13 ) All other, at fair value — 2 — 2 2 — (2 ) — — — 2 — Referenced footnotes are included after the prior period tables. YTD 2019 Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (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 $4,097 $13 $115 $128 $202 $— ($1,724 ) ($290 ) $— ($263 ) $2,150 $2 Other agency 38 — 1 1 — — — (5 ) — — 34 — Non-agency and other 1,640 52 25 77 — — (174 ) (176 ) — — 1,367 12 Total available-for-sale mortgage-related securities 5,775 65 141 206 202 — (1,898 ) (471 ) — (263 ) 3,551 14 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,286 (113 ) — (113 ) 1,242 — (730 ) 95 8 (858 ) 2,930 (68 ) Other agency 7 — — — — — (2 ) — — — 5 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,294 (113 ) — (113 ) 1,242 — (732 ) 95 8 (858 ) 2,936 (69 ) Other assets: Guarantee asset 3,633 75 — 75 — 1,005 — (488 ) — — 4,225 75 All other, at fair value 137 (31 ) — (31 ) 75 29 (59 ) (9 ) — — 142 (51 ) Total other assets $3,770 $44 $— $44 $75 $1,034 ($59 ) ($497 ) $— $— $4,367 $24 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 $728 $5 $— $5 $— $— $— $— $— $— $733 $5 Other debt, at fair value 134 — — — — 2 — (6 ) — — 130 — Net derivatives (2) 91 (54 ) — (54 ) — — — (13 ) — — 24 (66 ) All other, at fair value — — — — 4 — (2 ) — — — 2 (2 ) Referenced footnotes are included after the prior period tables. 3Q 2018 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 $6,004 ($3 ) ($68 ) ($71 ) $684 $— ($237 ) ($199 ) $— ($91 ) $6,090 ($4 ) Other agency 270 — — — — — — (2 ) — (228 ) 40 — Non-agency and other 2,535 383 (66 ) 317 — — (660 ) (134 ) — — 2,058 10 Total available-for-sale mortgage-related securities 8,809 380 (134 ) 246 684 — (897 ) (335 ) — (319 ) 8,188 6 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,711 (140 ) — (140 ) 623 — (875 ) (31 ) — (108 ) 3,180 (136 ) Other agency 17 (1 ) — (1 ) — — — 1 — — 17 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,729 (141 ) — (141 ) 623 — (875 ) (30 ) — (108 ) 3,198 (137 ) Other assets: Guarantee asset 3,363 (28 ) — (28 ) — 255 — (147 ) — — 3,443 (28 ) All other, at fair value 103 1 — 1 (3 ) (11 ) — — — — 90 (4 ) Total other assets $3,466 ($27 ) $— ($27 ) ($3 ) $244 $— ($147 ) $— $— $3,533 ($32 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $629 ($1 ) $— ($1 ) $— $100 $— $— $— $— $728 ($1 ) Other debt, at fair value 135 — — — — — — (1 ) — — 134 — Net derivatives (2) 42 8 — 8 — 41 — (4 ) — — 87 3 Referenced footnotes are included after the following table. YTD 2018 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 $6,751 ($13 ) ($267 ) ($280 ) $684 $— ($293 ) ($772 ) $— $— $6,090 ($13 ) Other agency 46 — (1 ) (1 ) — — — (5 ) — — 40 — Non-agency and other 4,291 876 (538 ) 338 — — (2,160 ) (411 ) — — 2,058 31 Total available-for-sale mortgage-related securities 11,088 863 (806 ) 57 684 — (2,453 ) (1,188 ) — — 8,188 18 Trading, at fair value: Mortgage-related securities: Freddie Mac 2,907 (383 ) — (383 ) 1,027 — (863 ) (55 ) 579 (32 ) 3,180 (362 ) Other agency 9 (2 ) — (2 ) 30 — (21 ) 1 — — 17 (2 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 2,917 (385 ) — (385 ) 1,057 — (884 ) (54 ) 579 (32 ) 3,198 (364 ) Other assets: Guarantee asset 3,171 (48 ) — (48 ) — 745 — (425 ) — — 3,443 (48 ) All other, at fair value 45 31 — 31 38 (24 ) — — — — 90 11 Total other assets $3,216 ($17 ) $— ($17 ) $38 $721 $— ($425 ) $— $— $3,533 ($37 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $630 ($2 ) $— ($2 ) $— $100 $— $— $— $— $728 ($2 ) Other debt, at fair value 137 — — — — — — (3 ) — — 134 — Net derivatives (2) 57 28 — 28 — 15 — (13 ) — — 87 15 (1) Transfers out of Level 3 during 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 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 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 consisted primarily of certain mortgage-related securities due to a decrease in market activity and the availability of 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 September 30, 2019 and September 30, 2018, respectively. Included in these amounts are other-than temporary impairments recorded on available-for-sale securities. The tables below provide valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis. Table 15.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements September 30, 2019 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Assets Available-for-sale, at fair value Mortgage-related securities Freddie Mac $2,150 Discounted cash flows OAS 30 - 261 bps 81 bps Non-agency and other 979 Median of external sources External pricing sources $70.3 - $76.7 $73.5 388 Other Trading, at fair value Mortgage-related securities Freddie Mac 2,047 Single external source External pricing sources $0.0 - $102.4 $36.1 883 Discounted cash flows OAS (831) - 8,095 bps 555 bps Guarantee asset, at fair value 3,970 Discounted cash flows OAS 17-186 bps 43 bps 255 Other Insignificant Level 3 assets (1) 182 Total level 3 assets $10,854 Liabilities Debt securities of consolidated trusts held by third parties, at fair value $733 Single External Source External Pricing Sources $99.5 - $103.9 $100.4 Insignificant Level 3 liabilities (1) 156 Referenced footnote is included after the next table. December 31, 2018 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Assets Available-for-sale, at fair value Mortgage-related securities Freddie Mac $2,838 Discounted cash flows OAS 30 - 325 bps 81 bps 1,259 Single external source External pricing sources $96.1 - $104.1 $102.3 Non-agency and other 1,403 Median of external sources External pricing sources $64.3 - $71.1 $67.3 237 Single external source External pricing sources $93.1 - $110.7 $100.7 Trading, at fair value Mortgage-related securities Freddie Mac 1,587 Single external source External pricing sources $0.0 - $99.2 $56.6 1,178 Discounted cash flows OAS (21,945) - 6,639 bps 90 bps 521 Other Guarantee asset, at fair value 3,391 Discounted cash flows OAS 17-198 bps 49 bps 242 Other Insignificant Level 3 assets (1) 184 Total level 3 assets $12,840 Liabilities Debt securities of consolidated trusts held by third parties, at fair value $728 Single External Source External Pricing Sources $97.4 - $101.1 $99.6 Insignificant Level 3 liabilities (1) 226 (1) Represents the aggregate amount of Level 3 assets or liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. Assets Measured at Fair Value on a Non-Recurring Basis We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis. 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. Certain of the fair values in the tables below were not obtained as of the period end, but were obtained during the period. The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis. Table 15.4 - Assets Measured at Fair Value on a Non-Recurring Basis September 30, 2019 December 31, 2018 (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) $— $429 $3,301 $3,730 $— $24 $7,519 $7,543 (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. The tables below provide valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis. Table 15.5 - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements September 30, 2019 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 $3,301 Internal model Historical sales proceeds $3,110 - $671,825 $185,551 Internal model Housing sales index 45 - 352 bps 113 bps Median of external sources External pricing sources $30.4 - $95.0 $85.1 December 31, 2018 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 $7,519 Internal model Historical sales proceeds $3,000 - $750,500 $177,725 Internal model Housing sales index 44 - 480 bps 108 bps Median of external sources External pricing sources $36.2 - $94.6 $82.5 Fair Value of Financial Instruments The tables below present the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, secured lending and other, and certain debt, the carrying value on our GAAP balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility. Table 15.6 - Fair Value of Financial Instruments September 30, 2019 GAAP Measurement Category (1) GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $8,708 $8,693 $15 $— $— $8,708 Securities purchased under agreements to resell Amortized cost 51,187 — 51,187 — — 51,187 Investments in securities: Available-for-sale, at fair value FV - OCI 28,533 — 24,982 3,551 — 28,533 Trading, at fair value FV - NI 44,449 21,952 19,561 2,936 — 44,449 Total investments in securities 72,982 21,952 44,543 6,487 — 72,982 Mortgage loans: Loans held by consolidated trusts 1,905,633 — 1,714,292 223,324 — 1,937,616 Loans held by Freddie Mac 91,857 — 46,636 48,517 — 95,153 Total mortgage loans Various (3) 1,997,490 — 1,760,928 271,841 — 2,032,769 Derivative assets, net FV - NI 1,592 — 7,892 16 (6,316 ) 1,592 Guarantee asset FV - NI 4,225 — — 4,233 — 4,233 Non-derivative purchase commitments, at fair value FV - NI 223 — 229 1 — 230 Secured lending and other Amortized cost 5,439 — 1,728 2,745 — 4,473 Total financial assets $2,141,846 $30,645 $1,866,522 $285,323 ($6,316 ) $2,176,174 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,869,308 $— $1,898,887 $2,068 $— $1,900,955 Other debt 279,951 — 281,229 3,757 — 284,986 Total debt, net Various (4) 2,149,259 — 2,180,116 5,825 — 2,185,941 Derivative liabilities, net FV - NI 355 — 6,437 40 (6,122 ) 355 Guarantee obligation Amortized cost 4,055 — — 4,416 — 4,416 Non-derivative purchase commitments, at fair value FV - NI 1 — 1 12 — 13 Total financial liabilities $2,153,670 $— $2,186,554 $10,293 ($6,122 ) $2,190,725 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. (3) As of September 30, 2019, the GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $2.0 trillion , $19.6 billion , and $21.5 billion , respectively. (4) As of September 30, 2019, the GAAP carrying amounts measured at amortized cost and FV - NI were $2.1 trillion and $4.6 billion , respectively. December 31, 2018 GAAP Measurement Category (1) GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $7,273 $7,273 $— $— $— $7,273 Securities purchased under agreements to resell Amortized cost 34,771 — 34,771 — — 34,771 Investments in securities: Available-for-sale, at fair value FV - OCI 33,563 — 27,788 5,775 — 33,563 Trading, at fair value FV - NI 35,548 15,885 16,369 3,294 — 35,548 Total investments in securities 69,111 15,885 44,157 9,069 — 69,111 Mortgage loans: Loans held by consolidated trusts 1,842,850 — 1,605,874 209,542 — 1,815,416 Loans held by Freddie Mac 84,128 — 33,946 52,212 — 86,158 Total mortgage loans Various (3) 1,926,978 — 1,639,820 261,754 — 1,901,574 Derivative assets, net FV - NI 335 — 6,417 1 (6,083 ) 335 Guarantee asset FV - NI 3,633 — — 3,642 — 3,642 Non-derivative purchase commitments, at fair value FV - NI 159 — 159 2 — 161 Secured lending and other Amortized cost 1,805 — 195 873 — 1,068 Total financial assets $2,044,065 $23,158 $1,725,519 $275,341 ($6,083 ) $2,017,935 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,792,677 $— $1,759,911 $2,698 $— $1,762,609 Other debt 252,273 — 251,543 3,629 — 255,172 Total debt, net Various (4) 2,044,950 — 2,011,454 6,327 — 2,017,781 Derivative liabilities, net FV - NI 583 — 4,336 92 (3,845 ) 583 Guarantee obligation Amortized cost 3,561 — — 4,146 — 4,146 Non-derivative purchase commitments, at fair value FV - NI 17 — 17 11 — 28 Total financial liabilities $2,049,111 $— $2,015,807 $10,576 ($3,845 ) $2,022,538 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. (3) As of December 31, 2018, the GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $1.9 trillion , $18.5 billion , and $23.1 billion , respectively. (4) As of December 31, 2018, the GAAP carrying amounts measured at amortized cost and FV - NI were $2.0 trillion and $5.1 billion Fair Value Option The table below presents the fair value and UPB related to certain loans and long-term debt for which we have elected the fair value option. This table does not include interest-only securities related to debt securities of consolidated trusts and other debt held by third parties with a fair value of $61 million and $26 million and multifamily held-for-sale loan purchase commitments with a fair value of $222 million and $142 million , as of September 30, 2019 and December 31, 2018, respectively. Table 15.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected September 30, 2019 December 31, 2018 (In millions) Multifamily Held-For-Sale Loans Other Debt - Long Term Debt Securities Of Consolidated Trusts Held By Third Parties Multifamily Held-For-Sale Loans Other Debt - Long Term Debt Securities Of Consolidated Trusts Held By Third Parties Fair value $21,538 $3,806 $733 $23,106 $4,357 $728 UPB 20,152 3,538 730 22,693 3,998 730 Difference $1,386 $268 $3 $413 $359 ($2 ) Changes in Fair Value Under the Fair Value Option Election The table below presents the changes in fair value included in non-interest income (loss) in our condensed consolidated statements of comprehensive income, related to items for which we have elected the fair value option. Table 15.8 - Changes in Fair Value Under the Fair Value Option Election 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (In millions) Gains (Losses) Gains (Losses) Multifamily held-for-sale loans $398 ($285 ) $1,216 ($797 ) Multifamily held-for-sale loan purchase commitments 641 267 1,644 564 Other debt - long term 49 10 116 38 Debt securities of consolidated trusts held by third parties (1 ) 2 (6 ) 4 Changes in fair value attributable to instrument-specific credit risk were not material for 3Q 2019 and YTD 2019 and for 3Q 2018 and YTD 2018 for any assets or liabilities for which we elected the fair value option. |
Legal Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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. On August 14, 2018, the District Court denied the plaintiff's motion for class certification. On January 23, 2019, the Court of Appeals denied plaintiff's petition for leave to appeal that decision. 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: pre-trial litigation is inherently uncertain; while the District Court denied plaintiff's motion for class certification, this denial may be appealed upon the entry of final judgment; and the District Court has not yet ruled upon motions for summary judgment. In particular, absent a final resolution of whether a class will be certified, the identification of a class if one is certified, 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. On February 23, 2018, the Second Circuit reversed the District Court's dismissal of certain plaintiffs' state law fraud and unjust enrichment claims on statutes of limitations grounds. While Freddie Mac was not a party to the appeal, this decision could have the effect of reinstating Freddie Mac's fraud claims against the above-named defendants. The Second Circuit also reversed certain aspects of the District Court's personal jurisdiction rulings and remanded with instructions to allow the named appellant to amend its complaint. The District Court subsequently granted in part Freddie Mac's motion for leave to amend its complaint, and Freddie Mac amended its complaint on April 16, 2019. 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, Cacciapelle, 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 a 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 Supreme Court denied the petitions on February 20, 2018. 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. On September 28, 2018, the District Court dismissed all of the claims except those alleging breach of the implied covenant of good faith and fair dealing. Discovery is ongoing. Angel vs. The Federal Home Loan Mortgage Corporation et al. This case was filed pro se on May 21, 2018 against Freddie Mac, Fannie Mae, certain current and former directors of Freddie Mac and Fannie Mae, and FHFA as a nominal defendant. The complaint alleged, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing, and that defendants aided and abetted the government's "avoidance" of plaintiff's dividend rights. On March 6, 2019, the U.S. District Court for the District of Columbia granted the defendants' motion to dismiss the case. On March 18, 2019, Mr. Angel filed a motion seeking to alter or amend the judgment and for leave to file an amended complaint. On May 24, 2019, the District Court denied Mr. Angel's motion, and on June 19, 2019, Mr. Angel filed a notice of appeal to the U.S. Court of Appeals for the District of Columbia Circuit. 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. On March 8, 2018, the plaintiffs filed an amended complaint under seal, with a redacted copy filed on November 14, 2018. Defendants filed a motion to dismiss on August 1, 2018 and an amended motion to dismiss on October 1, 2018. Fairholme Funds, Inc., et al. vs. the United States of America, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. This case was originally filed on July 9, 2013 against the United States of America. On March 8, 2018, plaintiffs filed an amended complaint under seal. A redacted public version was filed on May 11, 2018 and adds Freddie Mac and Fannie Mae as nominal defendants. The amended complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking or exaction of private property for public use without just compensation, and that by enacting the net worth sweep, the government breached the fiduciary duty it owed to Freddie Mac and Fannie Mae, and implied-in-fact contracts between the United States on the one hand and Freddie Mac and Fannie Mae on the other. The plaintiffs ask that plaintiffs, Freddie Mac, and Fannie Mae be awarded (1) just compensation for the government's alleged taking or exaction of their property, (2) damages for the government's breach of fiduciary duties, and (3) damages for the government's breach of the alleged implied-in-fact contracts. In addition, plaintiffs seek pre- and post-judgment interest, attorneys' fees, costs, and other expenses. Defendants filed a motion to dismiss on August 1, 2018 and an amended motion to dismiss on October 1, 2018. Perry Capital LLC vs. the United States of America, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. This case was filed as a derivative lawsuit, purportedly on behalf of Freddie Mac and Fannie Mae as "nominal" defendants, on August 15, 2018. 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 or an illegal exaction in violation of the Fifth Amendment, and that by enacting the net worth sweep, the government breached the fiduciary duty it owed to Freddie Mac and Fannie Mae, and implied-in-fact contracts between the United States on the one hand and Freddie Mac and Fannie Mae on the other. The plaintiffs ask that plaintiffs, Freddie Mac, and Fannie Mae be awarded just compensation for the government's alleged taking of their property or damages for the illegal exaction; damages for the government's breach of fiduciary duties; and damages for the government's breach of the alleged implied-in-fact contracts. The proceedings have been stayed pending a ruling on defendants' motion to dismiss in the Fairholme Funds, Inc. litigation. 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 | 9 Months Ended |
Sep. 30, 2019 | |
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. The table below summarizes our minimum capital requirements and deficits and net worth. Table 17.1 - Net Worth and Minimum Capital (In millions) September 30, 2019 December 31, 2018 GAAP net worth (deficit) $6,674 $4,477 Core capital (deficit) (1)(2) (66,556 ) (68,036 ) Less: Minimum capital requirement (1) 18,817 17,553 Minimum capital surplus (deficit) (1) ($85,373 ) ($85,589 ) (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 Li
Selected Financial Statement Line Items | 9 Months Ended |
Sep. 30, 2019 | |
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) on our condensed consolidated statements of comprehensive income (loss). Table 18.1 - Significant Components of Other Income (Loss) (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Other income (loss): Income on guarantee obligation $206 $176 $593 $524 All other (60 ) (97 ) (204 ) 124 Total other income (loss) $146 $79 $389 $648 The table below presents the significant components of other assets and other liabilities on our condensed consolidated balance sheets. Table 18.2 - Significant Components of Other Assets and Other Liabilities (In millions) September 30, 2019 December 31, 2018 Other assets: Real estate owned, net $607 $769 Accounts and other receivables (1) 12,816 2,447 Guarantee asset 4,225 3,633 Secured lending and other 5,439 1,805 All other 2,626 2,322 Total other assets $25,713 $10,976 Other liabilities: Guarantee obligation $4,055 $3,561 All other 3,215 2,837 Total other liabilities $7,270 $6,398 (1) Primarily consists of servicer receivables and other non-interest receivables. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed 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 authority provided by FHFA to our Board of Directors to oversee management's conduct of our business operations. Certain amounts in prior periods' condensed consolidated financial statements have been reclassified to conform to the current presentation. In the opinion of management, our unaudited condensed consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our results. 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, expenses, gains, and losses during the reporting period. Management has made significant estimates in preparing the financial statements for establishing the allowance for credit losses and valuing financial instruments and other assets and liabilities. Actual results could be different from these estimates. |
Recently Adopted or Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Condensed Consolidated Financial Statements ASU 2016-02 , Leases (Topic 842) The amendment in this Update addresses the accounting for lease arrangements. January 1, 2019 The adoption of the amendment did not have a material effect on our condensed consolidated financial statements or on our disclosures. ASU 2018-16 , Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes The amendments in this Update permit the OIS rate based on SOFR, as an eligible U.S. benchmark interest rate for purposes of applying hedge accounting under Topic 815. January 1, 2019 The adoption of the amendment did not have a material effect on our condensed consolidated financial statements or on our disclosures. ASU 2018-20 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The amendments in this Update address certain ASU 2016-02 implementation issues including the recognition of taxes collected from lessees, lessor costs paid directly by a lessee, and recognition of variable payments for contracts with lease and non-lease components. January 1, 2019 The adoption of the amendments did not have a material effect on our condensed consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Condensed Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on 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 We have developed our models to estimate lifetime expected credit losses on our financial instruments measured at amortized cost primarily using a discounted cash flow methodology. We are using these models to execute our process for estimating the allowance for credit losses under the new standard in parallel with our existing process for estimating the allowance for credit losses under current GAAP and are developing an appropriate governance process for our estimate of expected credit losses under the new standard. The amendments will be applied through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. While we continue to evaluate the effect that ASU 2016-13, Financial Instruments - Credit Losses, and related amendments will have on our consolidated financial statements, we expect the transition impact to result in an immaterial change in retained earnings. The increase in the allowance for credit losses from incorporating lifetime losses is generally offset by recoveries and a positive impact from including forecasts of economic conditions. The actual impact at adoption will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added. January 1, 2020 On October 1, 2018, we early adopted the amendments to remove or modify certain disclosures, which did not have a material effect on our consolidated financial statements. We are delaying adoption of the amendments to add certain disclosures until their effective date. We do not expect that the adoption of the additional disclosures will have a material effect on our consolidated financial statements. ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. ASU 2018-17 , Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities The amendments in this Update require that indirect interests held through related parties under common control be considered on a proportional basis when determining whether fees paid to decision makers or service providers are variable interests. These amendments align with the determination of whether a reporting entity within a related party group is the primary beneficiary of a VIE. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Condensed Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2019-01 , Leases (Topic 842): Narrow-Scope Improvements for Lessors The amendments in this Update provide guidance for the: (1) lessor's fair value determination of the lease's underlying asset; (2) lessor's statement of cash flows presentation of cash received from sales-type and direct financing leases; and (3) removal of interim transition disclosure requirements related to changes in accounting principles. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. ASU 2019-04 , Codification Improvements to Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825) The amendments in this Update clarify certain aspects of Topic 326 guidance issued in ASU 2016-13 including the scope of the credit losses standard and issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments. The other amendments in this update clarify certain aspects of Topic 815 and Topic 825. January 1, 2020 We are assessing the impact of adopting the Topic 326 amendments as part of our assessment of the adoption impact of ASU 2016-13, Financial Instruments-Credit Losses. We do not expect that the adoption of the Topic 815 and Topic 825 amendments will have a material effect on our consolidated financial statements. ASU 2019-05 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments in this Update provides entities with transition relief upon the adoption of ASU 2016-13 by providing an option to elect fair value option on certain financial instruments measured at amortized cost. January 1, 2020 We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. |
Consolidation, Variable Interest Entity, Policy | Securitization Activities and Consolidation |
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. |
Derivatives, Methods of Accounting, Hedging Derivatives | Fair Value Hedges We apply fair value hedge accounting to certain single-family mortgage loans and certain issuances of debt where we hedge the changes in fair value of these items attributable to the designated benchmark interest rate (i.e., LIBOR), using LIBOR-based interest-rate swaps. Beginning in September 2019, we implemented a new fair value hedge accounting strategy for single-family mortgage loans that applies certain hedge accounting elections, including the last-of-layer method, allowable under amended hedge accounting guidance we adopted during 4Q 2017. Under the last-of-layer method, we hedge the changes in fair value of a portion of a closed pool of single-family mortgage loans that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flows. As part of this new strategy, we have also elected to measure the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at the hedge inception and by assuming the hedged item has a term that reflects only the designated cash flows being hedged. 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 condensed 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. Cash Flow Hedges |
Repurchase and Resale Agreements Policy | 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. These agreements may allow us to repledge all or a portion of the collateral pledged to us, and we may repledge such collateral periodically, although it is not typically our practice to repledge collateral that has been pledged to us. 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. 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, Policy | 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 $49 million , net of taxes, of the $0.3 billion of cash flow hedge losses in AOCI at September 30, 2019 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 14 years. |
Earnings Per Common Share | Earnings Per Share We have participating securities related to restricted stock units with dividend equivalent rights that receive dividends as declared on an equal basis with common shares but are not obligated to participate in undistributed net losses. These participating securities consist of 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 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. |
Fair Value of Financial Instruments | 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 technique 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. |
Securitization Activities and_2
Securitization Activities and Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Securitization Activities and Consolidation [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 condensed consolidated balance sheets. Table 3.1 - Consolidated VIEs (In millions) As of September 30, 2019 As of December 31, 2018 Condensed Consolidated Balance Sheet Line Item Assets: Cash and cash equivalents (includes $3,494 and $566 of restricted cash and cash equivalents) $3,495 $567 Securities purchased under agreements to resell 21,400 12,125 Investments in securities, at fair value 766 — Mortgage loans held-for-investment 1,905,633 1,842,850 Accrued interest receivable 6,109 5,914 Other assets 12,093 1,631 Total assets of consolidated VIEs $1,949,496 $1,863,087 Liabilities: Accrued interest payable $5,519 $5,335 Debt, net 1,869,308 1,792,677 Total liabilities of consolidated VIEs $1,874,827 $1,798,012 Table 3.2 - Non-Consolidated VIEs (In millions) As of September 30, 2019 As of December 31, 2018 Assets and Liabilities Recorded on our Condensed Consolidated Balance Sheets (1) Assets: Investments in securities, at fair value $39,091 $44,020 Accrued interest receivable 214 235 Derivative assets, net 12 1 Other assets 3,737 3,119 Liabilities: Derivative liabilities, net 89 88 Other liabilities 3,511 3,049 Maximum Exposure to Loss 268,269 241,055 Total Assets of Non-Consolidated VIEs 320,221 284,724 (1) Includes our variable interests in REMICs and Strips, commingled Supers, K Certificates, SB Certificates, certain senior subordinate securitization structures, other securitization products, and other risk transfer securitizations that we do not consolidate. |
Mortgage Loans and Loan Loss _2
Mortgage Loans and Loan Loss Reserves (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Table - Mortgage Loans | The table below provides details of the loans on our condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. Table 4.1 - Mortgage Loans September 30, 2019 December 31, 2018 (In millions) Held by Freddie Mac Held by Total Held by Freddie Mac Held by Total Held-for-sale: Single-family $17,249 $— $17,249 $20,946 $— $20,946 Multifamily 25,397 — 25,397 23,959 — 23,959 Total UPB 42,646 — 42,646 44,905 — 44,905 Cost basis and fair value adjustments, net (1,528 ) — (1,528 ) (3,283 ) — (3,283 ) Total held-for-sale loans, net 41,118 — 41,118 41,622 — 41,622 Held-for-investment: Single-family 41,886 1,867,906 1,909,792 35,885 1,814,008 1,849,893 Multifamily 11,291 5,591 16,882 10,828 4,220 15,048 Total UPB 53,177 1,873,497 1,926,674 46,713 1,818,228 1,864,941 Cost basis adjustments (421 ) 34,973 34,552 (1,198 ) 27,752 26,554 Allowance for loan losses (2,017 ) (2,837 ) (4,854 ) (3,009 ) (3,130 ) (6,139 ) Total held-for-investment loans, net 50,739 1,905,633 1,956,372 42,506 1,842,850 1,885,356 Total mortgage loans, net $91,857 $1,905,633 $1,997,490 $84,128 $1,842,850 $1,926,978 The table below provides details of the UPB of loans we purchased, reclassified from held-for-investment to held-for-sale, and sold. Table 4.2 - Loans Purchased, Reclassified from Held-for-Investment to Held-for-Sale, and Sold (In billions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Single-family: Purchases Held-for-investment loans $133.8 $81.6 $305.0 $231.5 Reclassified from held-for-investment to held-for-sale (1) 3.0 13.3 8.1 17.6 Sale of held-for-sale loans (2) 3.7 2.3 9.4 6.5 Multifamily: Purchases Held-for-investment loans 4.4 0.9 6.8 2.6 Held-for-sale loans 23.1 16.3 50.6 42.5 Reclassified from held-for-investment to held-for-sale (1) 0.4 0.2 1.2 0.7 Sale of held-for-sale loans (3) 19.7 14.4 49.5 44.8 (1) We reclassify loans from held-for-investment to held-for-sale when we no longer have the intent or ability to hold for the foreseeable future. For additional information regarding the fair value of our loans classified as held-for-sale, see Note 15 . (2) Our sales of single-family loans reflect the sale of seasoned single-family mortgage loans. The sale of seasoned single-family mortgage loans is part of our strategy to mitigate and reduce our holdings of less liquid assets. (3) |
Table - Recorded Investment of Held-For-Investment Mortgage Loans, by LTV Ratio and Credit Quality Indicator | 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. Table 4.3 - Recorded Investment of Single-Family Held-for-Investment Loans by Current LTV Ratios September 30, 2019 December 31, 2018 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 $1,388,311 $255,880 $4,689 $1,648,880 $1,336,310 $214,703 $6,654 $1,557,667 15-year amortizing fixed-rate 235,185 5,604 103 240,892 251,152 4,522 157 255,831 Adjustable-rate 37,659 1,660 6 39,325 42,117 1,883 7 44,007 Alt-A, interest-only, and option ARM 13,743 1,198 289 15,230 16,498 1,903 559 18,960 Total single-family loans $1,674,898 $264,342 $5,087 $1,944,327 $1,646,077 $223,011 $7,377 $1,876,465 (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 5.18% and 7.24% as of September 30, 2019 and December 31, 2018 , respectively. The table below presents the recorded investment in our multifamily held-for-investment loans, by credit quality indicator based on available data through the end of each period presented. These indicators involve significant management judgment. Table 4.4 - Recorded Investment of Multifamily Held-for-Investment Loans by Credit Quality Indicator (In millions) September 30, 2019 December 31, 2018 Credit risk profile by internally assigned grade: (1) Pass $16,684 $14,648 Special mention 66 201 Substandard 149 181 Doubtful — — Total $16,899 $15,030 (1) A loan categorized as: "Pass" is current and adequately protected by the current financial strength and debt service capacity of the borrower; "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses; "Substandard" has a 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 tables below present the recorded investment of our single-family and multifamily loans, held-for-investment, by payment status. Table 4.5 - Recorded Investment of Held-for-Investment Loans by Payment Status September 30, 2019 (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 $1,624,964 $14,846 $3,495 $5,575 $1,648,880 $5,573 15-year amortizing fixed-rate 239,460 1,025 170 237 240,892 237 Adjustable-rate 38,928 249 53 95 39,325 95 Alt-A, interest-only, and option ARM 13,855 608 228 539 15,230 538 Total single-family 1,917,207 16,728 3,946 6,446 1,944,327 6,443 Total multifamily 16,896 3 — — 16,899 13 Total single-family and multifamily $1,934,103 $16,731 $3,946 $6,446 $1,961,226 $6,456 December 31, 2018 (In millions) Current One Two Three Months or (1) Total Non-accrual Single-family: 20- and 30-year or more, amortizing fixed-rate $1,532,499 $14,683 $3,602 $6,883 $1,557,667 $6,881 15-year amortizing fixed-rate 254,376 1,021 171 263 255,831 263 Adjustable-rate 43,549 287 58 113 44,007 113 Alt-A, interest-only, and option ARM 16,975 793 327 865 18,960 864 Total single-family 1,847,399 16,784 4,158 8,124 1,876,465 8,121 Total multifamily 15,030 — — — 15,030 17 Total single-family and multifamily $1,862,429 $16,784 $4,158 $8,124 $1,891,495 $8,138 (1) Includes $1.9 billion and $2.9 billion of single-family loans that were in the process of foreclosure as of September 30, 2019 and December 31, 2018 , respectively. |
Table - Delinquency Rates | The table below summarizes the delinquency rates of loans within our single-family credit guarantee and multifamily mortgage portfolios. Table 4.6 - Delinquency Rates (Dollars in millions) September 30, 2019 December 31, 2018 Single-family: Non-credit-enhanced portfolio Serious delinquency rate 0.72 % 0.83 % Total number of seriously delinquent loans 42,758 51,197 Credit-enhanced portfolio: (1) Primary mortgage insurance: Serious delinquency rate 0.76 % 0.86 % Total number of seriously delinquent loans 14,358 15,287 Other credit protection: (2) Serious delinquency rate 0.34 % 0.31 % Total number of seriously delinquent loans 15,736 12,920 Total single-family: Serious delinquency rate 0.61 % 0.69 % Total number of seriously delinquent loans 67,991 75,649 Multifamily: (3) Non-credit-enhanced portfolio: Delinquency rate 0.01 % — % UPB of delinquent loans $3 $2 Credit-enhanced portfolio: Delinquency rate 0.04 % 0.01 % UPB of delinquent loans $103 $28 Total multifamily: Delinquency rate 0.04 % 0.01 % UPB of delinquent loans $106 $30 (1) The credit-enhanced categories are not mutually exclusive, as a single loan may be covered by both primary mortgage insurance and other credit protection. (2) 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. (3) |
Table - Detail of Allowance for Credit Losses | Table 4.7 - Details of Allowance for Credit Losses The table below summarizes changes in our allowance for credit losses. 3Q 2019 3Q 2018 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 $2,238 $3,042 $46 $5,326 $4,887 $3,497 $49 $8,433 Provision (benefit) for credit losses (84 ) (97 ) 1 (180 ) (522 ) 143 1 (378 ) Charge-offs (394 ) (12 ) (1 ) (407 ) (1,262 ) (13 ) (2 ) (1,277 ) Recoveries 104 3 — 107 117 2 — 119 Transfers, net (1) 103 (103 ) — — 306 (306 ) — — Other (2) 41 — — 41 76 11 — 87 Single-family ending balance 2,008 2,833 46 4,887 3,602 3,334 48 6,984 Multifamily ending balance 9 4 5 18 8 2 8 18 Total ending balance $2,017 $2,837 $51 $4,905 $3,610 $3,336 $56 $7,002 YTD 2019 YTD 2018 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 $3,003 $3,127 $46 $6,176 $5,251 $3,680 $48 $8,979 Provision (benefit) for credit losses (509 ) 29 3 (477 ) (629 ) 266 6 (357 ) Charge-offs (1,208 ) (45 ) (3 ) (1,256 ) (2,198 ) (44 ) (6 ) (2,248 ) Recoveries 331 10 — 341 336 5 — 341 Transfers, net (1) 291 (291 ) — — 597 (597 ) — — Other (2) 100 3 — 103 245 24 — 269 Single-family ending balance 2,008 2,833 46 4,887 3,602 3,334 48 6,984 Multifamily ending balance 9 4 5 18 8 2 8 18 Total ending balance $2,017 $2,837 $51 $4,905 $3,610 $3,336 $56 $7,002 (1) Relates to removal of delinquent loans from consolidated trusts and resecuritization after such removal. (2) Primarily includes capitalization of past due interest on modified loans. |
Table - Net Investment in Loans | The table below presents our allowance for loan losses and our recorded investment in loans, held-for-investment, by impairment evaluation methodology. Table 4.8 - Net Investment in Loans September 30, 2019 December 31, 2018 (In millions) Single-family Multifamily Total Single-family Multifamily Total Recorded investment: Collectively evaluated $1,904,203 $16,818 $1,921,021 $1,830,044 $14,945 $1,844,989 Individually evaluated 40,124 81 40,205 46,421 85 46,506 Total recorded investment 1,944,327 16,899 1,961,226 1,876,465 15,030 1,891,495 Ending balance of the allowance for loan losses: Collectively evaluated (1,515 ) (13 ) (1,528 ) (1,761 ) (9 ) (1,770 ) Individually evaluated (3,326 ) — (3,326 ) (4,369 ) — (4,369 ) Total ending balance of the allowance (4,841 ) (13 ) (4,854 ) (6,130 ) (9 ) (6,139 ) Net investment in loans $1,939,486 $16,886 $1,956,372 $1,870,335 $15,021 $1,885,356 |
Table - Individually Impaired Loans | The tables below present the UPB, recorded investment, related allowance for loan losses, average recorded investment, and interest income recognized for individually impaired loans. Table 4.9 - Individually Impaired Loans September 30, 2019 December 31, 2018 (In millions) UPB Recorded Investment Associated Allowance UPB Recorded Investment Associated Single-family: With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $3,008 $2,390 N/A $3,335 $2,666 N/A 15-year amortizing fixed-rate 20 20 N/A 23 22 N/A Adjustable-rate 183 182 N/A 227 226 N/A Alt-A, interest-only, and option ARM 1,004 853 N/A 1,286 1,083 N/A Total with no allowance recorded 4,215 3,445 N/A 4,871 3,997 N/A With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 32,441 32,118 ($2,784 ) 37,579 36,959 ($3,660 ) 15-year amortizing fixed-rate 641 650 (14 ) 703 713 (19 ) Adjustable-rate 133 132 (7 ) 164 162 (8 ) Alt-A, interest-only, and option ARM 3,962 3,779 (521 ) 4,867 4,590 (682 ) Total with an allowance recorded 37,177 36,679 (3,326 ) 43,313 42,424 (4,369 ) Combined single-family: 20- and 30-year or more, amortizing fixed-rate 35,449 34,508 (2,784 ) 40,914 39,625 (3,660 ) 15-year amortizing fixed-rate 661 670 (14 ) 726 735 (19 ) Adjustable-rate 316 314 (7 ) 391 388 (8 ) Alt-A, interest-only, and option ARM 4,966 4,632 (521 ) 6,153 5,673 (682 ) Total single-family 41,392 40,124 (3,326 ) 48,184 46,421 (4,369 ) Multifamily: With no allowance recorded (1) 87 81 N/A 89 82 N/A With an allowance recorded — — — 3 3 — Total multifamily 87 81 — 92 85 — Total single-family and multifamily $41,479 $40,205 ($3,326 ) $48,276 $46,506 ($4,369 ) Referenced footnotes are included after the last table in the Impaired Loans section. 3Q 2019 3Q 2018 (In millions) Average Interest Interest Income Recognized On Cash Basis (3) Average Recorded Investment Interest Income Recognized Interest Income Recognized On Cash Basis (3) Single-family: With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $2,450 $59 $1 $3,142 $83 $3 15-year amortizing fixed-rate 19 1 — 20 — — Adjustable rate 191 3 — 238 3 — Alt-A, interest-only, and option ARM 880 16 — 1,159 21 1 Total with no allowance recorded 3,540 79 1 4,559 107 4 With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 32,618 412 47 42,393 520 52 15-year amortizing fixed-rate 641 5 1 740 7 2 Adjustable rate 129 2 — 183 2 — Alt-A, interest-only, and option ARM 3,866 55 9 5,622 72 7 Total with an allowance recorded 37,254 474 57 48,938 601 61 Combined single-family: 20- and 30-year or more, amortizing fixed-rate 35,068 471 48 45,535 603 55 15-year amortizing fixed-rate 660 6 1 760 7 2 Adjustable rate 320 5 — 421 5 — Alt-A, interest-only, and option ARM 4,746 71 9 6,781 93 8 Total single-family 40,794 553 58 53,497 708 65 Multifamily: With no allowance recorded (1) 81 1 1 112 2 1 With an allowance recorded — — — 3 — — Total multifamily 81 1 1 115 2 1 Total single-family and multifamily $40,875 $554 $59 $53,612 $710 $66 Referenced footnotes are included after the last table in the Impaired Loans section YTD 2019 YTD 2018 (In millions) Average Interest Interest Income Recognized On Cash Basis (3) Average Interest Interest Income Recognized On Cash Basis (3) Single-family — With no allowance recorded: (1) 20- and 30-year or more, amortizing fixed-rate $2,573 $207 $6 $3,399 $268 $13 15-year amortizing fixed-rate 20 1 — 21 3 — Adjustable rate 209 9 — 255 9 — Alt-A, interest-only, and option ARM 932 52 1 1,319 68 3 Total with no allowance recorded 3,734 269 7 4,994 348 16 With an allowance recorded: (2) 20- and 30-year or more, amortizing fixed-rate 34,051 1,394 138 46,140 1,621 217 15-year amortizing fixed-rate 665 17 3 830 21 8 Adjustable rate 139 5 1 210 4 2 Alt-A, interest-only, and option ARM 4,097 180 18 6,357 205 24 Total with an allowance recorded 38,952 1,596 160 53,537 1,851 251 Combined single-family: 20- and 30-year or more, amortizing fixed-rate 36,624 1,601 144 49,539 1,889 230 15-year amortizing fixed-rate 685 18 3 851 24 8 Adjustable rate 348 14 1 465 13 2 Alt-A, interest-only, and option ARM 5,029 232 19 7,676 273 27 Total single-family 42,686 1,865 167 58,531 2,199 267 Multifamily: With no allowance recorded (1) 83 3 1 132 5 2 With an allowance recorded — — — 3 — — Total multifamily 83 3 1 135 5 2 Total single-family and multifamily $42,769 $1,868 $168 $58,666 $2,204 $269 (1) Individually impaired loans with no 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 - TDR Activity | The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs, based on the original product category of the loan before the loan was classified as a TDR. Loans classified as a TDR in one period may be subject to further action (such as a modification or remodification) in a subsequent period. In such cases, the subsequent action would not be reflected in the table below since the loan would already have been classified as a TDR. Table 4.10 - TDR Activity 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (Dollars in millions) Number of Post-TDR Number of Post-TDR 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 5,908 $998 7,157 $1,091 19,668 $3,262 37,847 $6,159 15-year amortizing fixed-rate 693 69 909 83 2,364 230 5,194 514 Adjustable-rate 128 22 197 27 403 64 773 122 Alt-A, interest-only, and option ARM 285 45 414 65 1,331 190 2,294 379 Total single-family 7,014 1,134 8,677 1,266 23,766 3,746 46,108 7,174 Multifamily — $— — $— — $— 1 $15 (1) The pre-TDR recorded investment for single-family loans initially classified as TDR during 3Q 2019 and YTD 2019 was $1.1 billion and $3.7 billion , respectively, compared to $1.3 billion and $7.2 billion during 3Q 2018 and YTD 2018, respectively. |
Table - Payment Defaults of Completed TDR Modifications | 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. Table 4.11 - Payment Defaults of Completed TDR Modifications 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (Dollars in millions) Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Number of Loans Post-TDR Recorded Investment Single-family: 20- and 30-year or more, amortizing fixed-rate 3,256 $407 3,584 $512 10,533 $1,237 9,671 $1,435 15-year amortizing fixed-rate 96 9 116 10 329 24 435 36 Adjustable-rate 33 3 53 9 95 10 139 21 Alt-A, interest-only, and option ARM 178 24 302 55 687 96 827 154 Total single-family 3,563 443 4,055 586 11,644 1,367 11,072 1,646 Multifamily — $— — $— — $— — $— |
Guarantee Activities (Tables)
Guarantee Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. Table 5.1 - Financial Guarantees September 30, 2019 December 31, 2018 ( Dollars in millions , terms in years) Maximum (1) Recognized (2) Maximum Maximum (1) Recognized (2) Maximum Single-family: Securitization activity guarantees $24,387 $317 40 $17,783 $220 40 Other mortgage-related guarantees 7,139 180 30 6,139 167 30 Total single-family $31,526 $497 $23,922 $387 Multifamily: Securitization activity guarantees $241,853 $3,128 40 $221,245 $2,746 40 Other mortgage-related guarantees 10,122 430 35 9,779 428 35 Total multifamily $251,975 $3,558 $231,024 $3,174 Other guarantees measured at fair value $24,976 $183 30 $16,251 $242 30 (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 condensed consolidated balance sheets. This amount excludes our reserve for guarantee losses, which totaled $51 million and $52 million as of September 30, 2019 and December 31, 2018 , respectively, and is included within other liabilities on our condensed 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) | 9 Months Ended |
Sep. 30, 2019 | |
Credit Enhancements [Abstract] | |
Table - Mortgage Loan Credit Enhancements | The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to our mortgage loan credit enhancements. For information about counterparty credit risk associated with credit enhancement providers, see Note 14 . Table 6.1 - Mortgage Loan Credit Enhancements September 30, 2019 December 31, 2018 (In millions) Total Current and Protected UPB (1) Maximum Coverage Total Current and Protected UPB (1) Maximum Coverage Single-family: Primary mortgage insurance $410,999 $105,171 $378,594 $96,996 ACIS transactions (2) 869,148 10,081 807,885 9,123 STACR Trust transactions 280,889 9,154 161,152 5,026 Other 28,347 6,070 18,136 5,389 Total mortgage loan credit enhancements $130,476 $116,534 (1) Underlying loans may be covered by more than one form of credit enhancement. (2) As of September 30, 2019 and December 31, 2018, our counterparties posted collateral on our ACIS transactions of $2.0 billion and $1.5 billion , respectively. |
Table - Guaranteed 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 guarantee credit enhancements. Table 6.2 - Guarantee Credit Enhancements September 30, 2019 December 31, 2018 (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) $22,876 $4,076 $16,271 $2,933 Other 1,129 1,129 1,226 1,226 Total single-family 5,205 4,159 Multifamily: Subordination (non-consolidated VIEs) 240,485 38,645 220,733 35,661 Other 3,204 919 2,349 815 Total multifamily 39,564 36,476 Total guarantee credit enhancements $44,769 $40,635 (1) Underlying loans may be covered by more than one form of credit enhancement. For subordination, total current and protected UPB includes the UPB of the guaranteed securities, which represents the UPB of the assets included in the trust net of the protection provided by the subordinated securities, and the UPB of guarantor advances made to the holders of the guaranteed securities. (2) For subordination, maximum coverage represents the outstanding UPB of the securities that are subordinate to Freddie Mac guaranteed securities and held by third parties. For all other credit enhancements, maximum coverage represents the remaining amount of loss recovery that is available subject to the terms of counterparty agreements. |
Table - Debt with Embedded Credit Enhancements | The table below presents the total current and protected UPB and maximum amounts of potential loss recovery related to debt with embedded credit enhancements. Table 6.3 - Debt with Embedded Credit Enhancements September 30, 2019 December 31, 2018 (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 $554,572 $15,962 $605,263 $17,596 Subordination (consolidated VIEs) 21,843 943 25,006 1,036 Total single-family 16,905 18,632 Multifamily: SCR notes 2,523 126 2,667 133 Subordination (consolidated VIEs) 2,700 280 2,700 280 Total multifamily 406 413 Total debt with embedded credit enhancements $17,311 $19,045 (1) Underlying loans may be covered by more than one form of credit enhancement. For STACR debt notes and SCR 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, which represents the UPB of the assets included in the trust net of the protection provided by the subordinated securities. (2) For STACR debt notes and SCR notes, maximum coverage amount represents the outstanding balance of the STACR debt notes and SCR notes held by third parties. For subordination, maximum coverage amount represents the outstanding UPB of the securities that are subordinate to Freddie Mac guaranteed securities and held by third parties. |
Investments in Securities (Tabl
Investments in Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. Table 7.1 - Investments in Securities (In millions) September 30, 2019 December 31, 2018 Trading securities $44,449 $35,548 Available-for-sale securities 28,533 33,563 Total fair value of investments in securities $72,982 $69,111 |
Table - Trading Securities | The table below presents the estimated fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities. Table 7.2 - Trading Securities (In millions) September 30, 2019 December 31, 2018 Mortgage-related securities: Freddie Mac $12,972 $13,821 Other agency 7,194 2,551 Non-agency 1 1 Total mortgage-related securities 20,167 16,373 Non-mortgage-related securities 24,282 19,175 Total fair value of trading securities $44,449 $35,548 |
Table - Available-For-Sale Securities | The tables below present the amortized cost, gross unrealized gains and losses, and fair value by major security type for our securities classified as available-for-sale. Table 7.3 - Available-for-Sale Securities September 30, 2019 Amortized Gross Gross Unrealized Losses Fair (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $25,492 $707 $— ($80 ) $26,119 Other agency 1,005 26 — (5 ) 1,026 Non-agency and other 1,078 310 — — 1,388 Total available-for-sale securities $27,575 $1,043 $— ($85 ) $28,533 December 31, 2018 Amortized Gross Gross Unrealized Losses Fair (In millions) Other-Than-Temporary Impairment (1) Temporary Impairment (2) Available-for-sale securities: Freddie Mac $30,407 $320 $— ($528 ) $30,199 Other agency 1,675 38 — (7 ) 1,706 Non-agency and other 1,378 282 — (2 ) 1,658 Total available-for-sale securities $33,460 $640 $— ($537 ) $33,563 (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 tables below present available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater. Table 7.4 - Available-for-Sale Securities in a Gross Unrealized Loss Position September 30, 2019 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 $5,312 ($41 ) $2,951 ($39 ) Other agency 56 — 531 (5 ) Non-agency and other — — — — Total available-for-sale securities in a gross unrealized loss position $5,368 ($41 ) $3,482 ($44 ) December 31, 2018 Less than 12 Months 12 Months or Greater (In millions) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Available-for-sale securities: Freddie Mac $4,259 ($38 ) $14,751 ($490 ) Other agency 351 (1 ) 638 (6 ) Non-agency and other 43 (1 ) 6 (1 ) Total available-for-sale securities in a gross unrealized loss position $4,653 ($40 ) $15,395 ($497 ) |
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. Table 7.5 - Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Gross realized gains $68 $69 $169 $544 Gross realized losses (6 ) (131 ) (40 ) (232 ) Net realized gains (losses) $62 ($62 ) $129 $312 |
Debt Securities and Subordina_2
Debt Securities and Subordinated Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Table - Total Debt, Net | The table below summarizes the balances of total debt, net per our condensed consolidated balance sheets and the interest expense per our condensed consolidated statements of comprehensive income. Table 8.1 - Total Debt, Net Balance, Net Interest Expense (In millions) September 30, 2019 December 31, 2018 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Debt securities of consolidated trusts held by third parties $1,869,308 $1,792,677 $13,324 $12,827 $41,001 $37,996 Other debt: Short-term debt 94,344 51,080 499 361 1,419 832 Long-term debt 185,607 201,193 1,307 1,358 4,078 3,974 Total other debt 279,951 252,273 1,806 1,719 5,497 4,806 Total debt, net $2,149,259 $2,044,950 $15,130 $14,546 $46,498 $42,802 |
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. Table 8.2 - Debt Securities of Consolidated Trusts Held by Third Parties September 30, 2019 December 31, 2018 (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 2019 - 2057 $1,487,105 $1,525,505 3.69 % 2019 - 2057 $1,389,113 $1,426,060 3.72 % 20-year fixed-rate 2019 - 2039 69,068 70,764 3.42 2019 - 2039 70,547 72,354 3.43 15-year fixed-rate 2019 - 2034 224,190 227,915 2.89 2019 - 2034 240,310 244,587 2.89 Adjustable-rate 2019 - 2049 32,837 33,474 3.28 2019 - 2049 38,361 39,153 3.12 Interest-only 2026 - 2041 4,608 4,677 4.72 2026 - 2048 5,322 5,386 4.41 FHA/VA 2020 - 2049 665 680 4.69 2019 - 2046 720 736 4.78 Total single-family 1,818,473 1,863,015 1,744,373 1,788,276 Multifamily 2020-2049 6,233 6,293 3.14 2019 - 2047 4,365 4,401 4.02 Total debt securities of consolidated trusts held by third parties $1,824,706 $1,869,308 $1,748,738 $1,792,677 (1) Includes $737 million and $755 million at September 30, 2019 and December 31, 2018, respectively, of debt of consolidated trusts that represents the fair value of debt securities with the fair value option elected. (2) The effective interest rate for debt securities of consolidated trusts held by third parties was 2.81% and 3.07% as of September 30, 2019 and December 31, 2018, respectively. |
Table - Other Debt | The table below summarizes the balances and effective interest rates for other debt. Table 8.3 - Total Other Debt September 30, 2019 December 31, 2018 (Dollars in millions) Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Other short-term debt: Discount notes and Reference Bills $42,719 $42,550 2.09 % $28,787 $28,621 2.36 % Medium-term notes 43,098 43,094 2.34 16,440 16,440 2.10 Securities sold under agreements to repurchase 8,700 8,700 2.06 6,019 6,019 2.40 Total other short-term debt 94,517 94,344 2.20 51,246 51,080 2.28 Other long-term debt: Original maturities on or before December 31, 2019 12,442 12,435 1.63 58,002 57,968 1.54 2020 48,348 48,337 2.00 42,296 42,275 1.78 2021 36,669 36,669 2.05 30,898 30,901 2.06 2022 26,044 26,022 2.34 20,802 20,775 2.46 2023 10,064 10,045 2.65 15,929 15,906 3.09 Thereafter 37,392 34,994 3.68 18,068 15,579 5.91 STACR and SCR debt (3) 16,088 16,257 6.03 17,729 18,004 6.04 Hedging-related basis adjustments N/A 848 N/A (215 ) Total other long-term debt 187,047 185,607 2.74 203,724 201,193 2.58 Total other debt (4) $281,564 $279,951 $254,970 $252,273 (1) Represents par value, net of associated discounts or premiums and issuance cost. Includes $3.9 billion and $4.4 billion at September 30, 2019 and December 31, 2018, 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. (3) 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 generally without penalty. (4) Carrying amount for other debt includes callable debt of $105.5 billion and $107.2 billion at September 30, 2019 and December 31, 2018, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 condensed consolidated balance sheets. Table 9.1 - Derivative Assets and Liabilities at Fair Value September 30, 2019 December 31, 2018 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 $217,377 $2,346 ($10 ) $145,386 $1,380 ($181 ) Pay-fixed 246,557 6 (4,381 ) 170,899 476 (2,287 ) Basis (floating to floating) 5,924 — — 5,404 1 — Total interest-rate swaps 469,858 2,352 (4,391 ) 321,689 1,857 (2,468 ) Option-based: Call swaptions Purchased 61,275 3,963 — 43,625 2,007 — Written 2,500 — (37 ) 4,400 — (133 ) Put swaptions Purchased (1) 63,600 512 — 88,075 1,565 — Written 8,700 — (41 ) 1,750 — (4 ) Other option-based derivatives (2) 10,368 721 — 10,481 628 — Total option-based 146,443 5,196 (78 ) 148,331 4,200 (137 ) Futures 181,479 — — 161,185 — — Commitments 152,300 195 (171 ) 36,044 90 (179 ) Credit derivatives 1,822 1 (23 ) 2,030 — (35 ) Other 16,991 12 (103 ) 12,212 1 (103 ) Total derivatives not designated as hedges 968,893 7,756 (4,766 ) 681,491 6,148 (2,922 ) Designated as fair value hedges Interest-rate swaps: Receive-fixed 113,425 145 (91 ) 117,038 23 (935 ) Pay-fixed 78,966 7 (1,620 ) 77,513 247 (571 ) Total derivatives designated as fair value hedges 192,391 152 (1,711 ) 194,551 270 (1,506 ) Derivative interest and other receivable (payable) 912 (872 ) 889 (1,096 ) Netting adjustments (3) (7,228 ) 6,994 (6,972 ) 4,941 Total derivative portfolio, net $1,161,284 $1,592 ($355 ) $876,042 $335 ($583 ) (1) Includes swaptions on credit indices with a notional or contractual amount of $17.3 billion and $45.9 billion at September 30, 2019 and December 31, 2018 , respectively, and a fair value of $6.0 million and $113.0 million at September 30, 2019 and December 31, 2018 , respectively. (2) Primarily consists of purchased interest-rate caps and floors. (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 condensed consolidated statements of comprehensive income as derivative gains (losses). Table 9.2 - Gains and Losses on Derivatives (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Not designated as hedges Interest-rate swaps: Receive-fixed $2,060 ($1,004 ) $7,580 ($5,080 ) Pay-fixed (3,866 ) 1,721 (12,152 ) 7,922 Basis (floating to floating) (3 ) 19 7 (9 ) Total interest-rate swaps (1,809 ) 736 (4,565 ) 2,833 Option-based: Call swaptions Purchased 1,398 (402 ) 2,981 (1,392 ) Written (109 ) 35 (343 ) 76 Put swaptions Purchased (355 ) 136 (1,406 ) 524 Written 19 (2 ) 83 (23 ) Other option-based derivatives (1) (6 ) (73 ) 93 (205 ) Total option-based 947 (306 ) 1,408 (1,020 ) Other: Futures (262 ) 277 (1,283 ) 728 Commitments (54 ) 69 (366 ) 672 Credit derivatives 6 (4 ) 1 (14 ) Other 2 (71 ) 36 (64 ) Total other (308 ) 271 (1,612 ) 1,322 Accrual of periodic cash settlements: Receive-fixed interest-rate swaps 39 39 (32 ) 335 Pay-fixed interest-rate swaps (126 ) (50 ) (220 ) (536 ) Other 40 38 109 40 Total accrual of periodic cash settlements (47 ) 27 (143 ) (161 ) Total ($1,217 ) $728 ($4,912 ) $2,974 (1) Primarily consists of purchased interest-rate caps and floors. |
Table - Gains and Losses on Fair Value Hedge | The tables below present the effects of fair value hedge accounting by condensed consolidated statements of comprehensive income line, including the gains and losses on derivatives and hedged items designated in qualifying hedge relationships and other components due to the application of hedge accounting. Table 9.3 - Gains and Losses on Fair Value Hedges 3Q 2019 3Q 2018 (In millions) Interest Income - Mortgage Loans Interest Expense Interest Income - Mortgage Loans Interest Expense Total amounts of income and expense line items presented in our condensed consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $16,428 ($15,130 ) $16,787 ($14,546 ) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 1,298 — (755 ) — Derivatives designated as hedging instruments (1,588 ) — 776 — Interest accruals on hedging instruments (48 ) — (96 ) — Discontinued hedge-related basis adjustments amortization (210 ) — 38 — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (36 ) — 121 Derivatives designated as hedging instruments — 91 — (50 ) Interest accruals on hedging instruments — (18 ) — (96 ) Discontinued hedge-related basis adjustments amortization — 18 — (1 ) YTD 2019 YTD 2018 (In millions) Interest Income - Mortgage Loans Interest Expense Interest Income - Mortgage Loans Interest Expense Total amounts of income and expense line items presented in our condensed consolidated statements of comprehensive income in which the effects of fair value hedges are recorded: $51,732 ($46,498 ) $49,082 ($42,802 ) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 5,691 — (3,441 ) — Derivatives designated as hedging instruments (5,609 ) — 3,087 — Interest accruals on hedging instruments (4 ) — (373 ) — Discontinued hedge-related basis adjustments amortization (229 ) — 86 — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (1,141 ) — 931 Derivatives designated as hedging instruments — 1,288 — (728 ) Interest accruals on hedging instruments — (230 ) — (219 ) Discontinued hedge-related basis adjustments amortization — 43 — (2 ) |
Cumulative Basis Adjustment on Fair Value Hedge [Table Text Block] | The tables below present 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. Table 9.4 - Cumulative Basis Adjustments Due to Fair Value Hedging September 30, 2019 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Last-of-Layer Method (In millions) Total Under the Last-of-Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $470,584 $4,225 ($379 ) $4,604 $266,975 $20,472 Debt (130,653 ) (848 ) — (114 ) — — December 31, 2018 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Last-of-Later Method (In millions) Total Under the Last-of-Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $193,547 ($1,237 ) $— ($1,237 ) $— $— Debt (127,215 ) 216 — (8 ) — — |
Collateral and Offsetting of _2
Collateral and Offsetting of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Table - Offsetting of Financial Assets and Liabilities | The tables below display offsetting and collateral information related to derivatives, securities purchased under agreements to resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or similar arrangements. Securities sold under agreements to repurchase are included in debt, net on our condensed consolidated balance sheets. Table 10.1 - Offsetting and Collateral Information of Financial Assets and Liabilities September 30, 2019 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 $8,583 ($5,373 ) ($1,975 ) $1,235 ($1,191 ) $44 Cleared and exchange-traded derivatives 29 (1 ) 121 149 — 149 Other 208 — — 208 — 208 Total derivatives 8,820 (5,374 ) (1,854 ) 1,592 (1,191 ) 401 Securities purchased under agreements to resell (3) 51,187 — — 51,187 (51,187 ) — Total $60,007 ($5,374 ) ($1,854 ) $52,779 ($52,378 ) $401 Liabilities: Derivatives: OTC derivatives ($7,029 ) $5,373 $1,601 ($55 ) $— ($55 ) Cleared and exchange-traded derivatives (23 ) 1 19 (3 ) — (3 ) Other (297 ) — — (297 ) — (297 ) Total derivatives (7,349 ) 5,374 1,620 (355 ) — (355 ) Securities sold under agreements to repurchase (3) (8,700 ) — — (8,700 ) 8,700 — Total ($16,049 ) $5,374 $1,620 ($9,055 ) $8,700 ($355 ) Referenced footnotes are included after the next table. December 31, 2018 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 $7,213 ($4,544 ) ($2,448 ) $221 ($173 ) $48 Cleared and exchange-traded derivatives 3 — 20 23 — 23 Other 91 — — 91 — 91 Total derivatives 7,307 (4,544 ) (2,428 ) 335 (173 ) 162 Securities purchased under agreements to resell (3) 34,771 — — 34,771 (34,771 ) — Total $42,078 ($4,544 ) ($2,428 ) $35,106 ($34,944 ) $162 Liabilities: Derivatives: OTC derivatives ($4,963 ) $4,544 $296 ($123 ) $— ($123 ) Cleared and exchange-traded derivatives (244 ) — 101 (143 ) — (143 ) Other (317 ) — — (317 ) — (317 ) Total derivatives (5,524 ) 4,544 397 (583 ) — (583 ) Securities sold under agreements to repurchase (3) (6,019 ) — — (6,019 ) 6,019 — Total ($11,543 ) $4,544 $397 ($6,602 ) $6,019 ($583 ) (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 condensed 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 $4.0 billion and $2.5 billion as of September 30, 2019 and December 31, 2018 , respectively. (3) Does not include the impacts of netting by central clearing organizations. |
Table - Offsetting of Financial Assets and Liabilities | The tables below display offsetting and collateral information related to derivatives, securities purchased under agreements to resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or similar arrangements. Securities sold under agreements to repurchase are included in debt, net on our condensed consolidated balance sheets. Table 10.1 - Offsetting and Collateral Information of Financial Assets and Liabilities September 30, 2019 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 $8,583 ($5,373 ) ($1,975 ) $1,235 ($1,191 ) $44 Cleared and exchange-traded derivatives 29 (1 ) 121 149 — 149 Other 208 — — 208 — 208 Total derivatives 8,820 (5,374 ) (1,854 ) 1,592 (1,191 ) 401 Securities purchased under agreements to resell (3) 51,187 — — 51,187 (51,187 ) — Total $60,007 ($5,374 ) ($1,854 ) $52,779 ($52,378 ) $401 Liabilities: Derivatives: OTC derivatives ($7,029 ) $5,373 $1,601 ($55 ) $— ($55 ) Cleared and exchange-traded derivatives (23 ) 1 19 (3 ) — (3 ) Other (297 ) — — (297 ) — (297 ) Total derivatives (7,349 ) 5,374 1,620 (355 ) — (355 ) Securities sold under agreements to repurchase (3) (8,700 ) — — (8,700 ) 8,700 — Total ($16,049 ) $5,374 $1,620 ($9,055 ) $8,700 ($355 ) Referenced footnotes are included after the next table. December 31, 2018 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 $7,213 ($4,544 ) ($2,448 ) $221 ($173 ) $48 Cleared and exchange-traded derivatives 3 — 20 23 — 23 Other 91 — — 91 — 91 Total derivatives 7,307 (4,544 ) (2,428 ) 335 (173 ) 162 Securities purchased under agreements to resell (3) 34,771 — — 34,771 (34,771 ) — Total $42,078 ($4,544 ) ($2,428 ) $35,106 ($34,944 ) $162 Liabilities: Derivatives: OTC derivatives ($4,963 ) $4,544 $296 ($123 ) $— ($123 ) Cleared and exchange-traded derivatives (244 ) — 101 (143 ) — (143 ) Other (317 ) — — (317 ) — (317 ) Total derivatives (5,524 ) 4,544 397 (583 ) — (583 ) Securities sold under agreements to repurchase (3) (6,019 ) — — (6,019 ) 6,019 — Total ($11,543 ) $4,544 $397 ($6,602 ) $6,019 ($583 ) (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 condensed 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 $4.0 billion and $2.5 billion as of September 30, 2019 and December 31, 2018 , respectively. (3) Does not include the impacts of netting by central clearing organizations. |
Table - Collateral in the Form of Securities Pledged | The tables below summarize 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. Table 10.2 - Collateral in the Form of Securities Pledged September 30, 2019 (In millions) Derivatives Securities sold under agreements to repurchase Other (3) Total Cash equivalents (1) $— $284 $— $284 Debt securities of consolidated trusts (2) 747 — 169 916 Available-for-sale securities — — 3 3 Trading securities 3,228 8,429 57 11,714 Total securities pledged $3,975 $8,713 $229 $12,917 December 31, 2018 (In millions) Derivatives Securities sold under agreements to repurchase Other (3) Total Cash equivalents (1) $— $2,595 $— $2,595 Debt securities of consolidated trusts (2) 362 — 179 541 Available-for-sale securities — — 1 1 Trading securities 2,160 3,432 73 5,665 Total securities pledged $2,522 $6,027 $253 $8,802 (1) Represents U.S. Treasury securities accounted for as cash equivalents. (2) Represents debt securities of consolidated trusts 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 condensed consolidated balance sheets. (3) Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses. |
Table - Underlying 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. Table 10.3 - Underlying Collateral Pledged September 30, 2019 (In millions) Overnight and continuous 30 days or less After 30 days through 90 days Greater than 90 days Total U.S. Treasury securities and other $2,684 $5,112 $917 $— $8,713 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Table - Changes in AOCI by Component, Net of Tax | The tables below present changes in AOCI after the effects of our federal statutory tax rate of 21% Table 11.1 - Changes in AOCI by Component, Net of Taxes YTD 2019 (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 $83 ($315 ) $97 ($135 ) Other comprehensive income before reclassifications 776 — (2 ) 774 Amounts reclassified from accumulated other comprehensive income (102 ) 57 (12 ) (57 ) Changes in AOCI by component 674 57 (14 ) 717 Ending balance $757 ($258 ) $83 $582 YTD 2018 (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 $662 ($356 ) $83 $389 Other comprehensive income before reclassifications (821 ) — (1 ) (822 ) Amounts reclassified from accumulated other comprehensive income (244 ) 87 (12 ) (169 ) Changes in AOCI by component (1,065 ) 87 (13 ) (991 ) Cumulative effect of change in accounting principle (1) 143 (73 ) 19 89 Ending balance ($260 ) ($342 ) $89 ($513 ) (1) Includes the effect of adopting the accounting guidance on reclassification of stranded tax effects of the Tax Cuts and Jobs Act in 1Q 2018. |
Table - Reclassifications from AOCI to Net Income | The table below presents reclassifications from AOCI to net income, including the affected line item in our condensed consolidated statements of comprehensive income. Table 11.2 - Reclassifications from AOCI to Net Income (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 AOCI related to available-for-sale securities Affected line items in the consolidated statements of comprehensive income: Investment securities gains (losses) $62 ($64 ) $129 $309 Income tax (expense) or benefit (13 ) 13 (27 ) (65 ) Net of tax 49 (51 ) 102 244 AOCI related to cash flow hedge relationships Affected line items in the consolidated statements of comprehensive income: Interest expense (24 ) (31 ) (72 ) (106 ) Income tax (expense) or benefit 5 6 15 19 Net of tax (19 ) (25 ) (57 ) (87 ) AOCI related to defined benefit plans Affected line items in the consolidated statements of comprehensive income: Salaries and employee benefits 5 5 15 15 Income tax (expense) or benefit (1 ) (1 ) (3 ) (3 ) Net of tax 4 4 12 12 Total reclassifications in the period net of tax $34 ($72 ) $57 $169 |
Table - Senior Preferred Stock | The table below provides a summary of our senior preferred stock outstanding at September 30, 2019 . Table 11.3 - Senior Preferred Stock ( 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 September 30, 2019 — — — N/A 1,826 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 March 30, 2018 — — — N/A 312 Total senior preferred stock 1.00 1.00 $1.00 $77,474 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Table - Segment Earnings | The table below presents Segment Earnings by segment. Table 13.1 - Segment Earnings (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Segment Earnings (loss), net of taxes: Single-family Guarantee $1,250 $1,183 $2,945 $2,884 Multifamily 581 549 1,294 1,572 Capital Markets (122 ) 974 383 3,679 All Other — — — — Total Segment Earnings, net of taxes 1,709 2,706 4,622 8,135 Net income (loss) $1,709 $2,706 $4,622 $8,135 Comprehensive income (loss) of segments: Single-family Guarantee $1,247 $1,181 $2,936 $2,876 Multifamily 591 505 1,426 1,436 Capital Markets 10 873 977 2,832 All Other — — — — Comprehensive income (loss) of segments 1,848 2,559 5,339 7,144 Comprehensive income (loss) $1,848 $2,559 $5,339 $7,144 |
Table - Segment Earnings and Reconciliation to GAAP Condensed Consolidated Statements of Comprehensive Income | The tables below present detailed reconciliations between our GAAP condensed consolidated statements of comprehensive income and Segment Earnings for our reportable segments and All Other. Table 13.2 - Segment Earnings and Reconciliations to GAAP Condensed Consolidated Statements of Comprehensive Income 3Q 2019 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 $— $292 $497 $— $789 $1,621 $2,410 Guarantee fee income 2,075 233 — — 2,308 (2,077 ) 231 Benefit (provision) for credit losses 134 (1 ) — — 133 46 179 Mortgage loans gains (losses) — 1,087 — — 1,087 615 1,702 Investment securities gains (losses) — 31 136 — 167 (3 ) 164 Debt gains (losses) 51 (69 ) (17 ) — (35 ) (21 ) (56 ) Derivative gains (losses) — (793 ) (438 ) — (1,231 ) 14 (1,217 ) Other income (loss) 318 89 (234 ) — 173 (27 ) 146 Administrative expense (399 ) (125 ) (96 ) — (620 ) — (620 ) REO operations (expense) income (61 ) — — — (61 ) 3 (58 ) Other non-interest (expense) income (554 ) (17 ) (3 ) — (574 ) (171 ) (745 ) Income tax (expense) benefit (314 ) (146 ) 33 — (427 ) — (427 ) Net income (loss) 1,250 581 (122 ) — 1,709 — 1,709 Changes in unrealized gains (losses) related to available-for-sale securities — 10 114 — 124 — 124 Changes in unrealized gains (losses) related to cash flow hedge relationships — — 19 — 19 — 19 Changes in defined benefit plans (3 ) — (1 ) — (4 ) — (4 ) Total other comprehensive income (loss), net of taxes (3 ) 10 132 — 139 — 139 Comprehensive income (loss) $1,247 $591 $10 $— $1,848 $— $1,848 YTD 2019 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 $— $805 $2,002 $— $2,807 $5,683 $8,490 Guarantee fee income 5,597 671 — — 6,268 (5,598 ) 670 Benefit (provision) for credit losses 221 (3 ) — — 218 256 474 Mortgage loans gains (losses) — 2,909 — — 2,909 1,265 4,174 Investment securities gains (losses) — 41 698 — 739 (11 ) 728 Debt gains (losses) 113 (46 ) (27 ) — 40 (32 ) 8 Derivative gains (losses) (47 ) (2,650 ) (2,095 ) — (4,792 ) (120 ) (4,912 ) Other income (loss) 836 292 198 — 1,326 (937 ) 389 Administrative expense (1,173 ) (357 ) (287 ) — (1,817 ) — (1,817 ) REO operations (expense) income (185 ) — — — (185 ) 13 (172 ) Other non-interest (expense) income (1,667 ) (38 ) (9 ) — (1,714 ) (519 ) (2,233 ) Income tax (expense) benefit (750 ) (330 ) (97 ) — (1,177 ) — (1,177 ) Net income (loss) 2,945 1,294 383 — 4,622 — 4,622 Changes in unrealized gains (losses) related to available-for-sale securities — 134 540 — 674 — 674 Changes in unrealized gains (losses) related to cash flow hedge relationships — — 57 — 57 — 57 Changes in defined benefit plans (9 ) (2 ) (3 ) — (14 ) — (14 ) Total other comprehensive income (loss), net of taxes (9 ) 132 594 — 717 — 717 Comprehensive income (loss) $2,936 $1,426 $977 $— $5,339 $— $5,339 3Q 2018 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 $— $280 $845 $— $1,125 $2,132 $3,257 Guarantee fee income 1,676 210 — — 1,886 (1,677 ) 209 Benefit (provision) for credit losses 205 2 — — 207 173 380 Mortgage loans gains (losses) — (17 ) — — (17 ) 111 94 Investment securities gains (losses) — (97 ) (336 ) — (433 ) (10 ) (443 ) Debt gains (losses) 20 5 137 — 162 (4 ) 158 Derivative gains (losses) (25 ) 375 427 — 777 (49 ) 728 Other income (loss) 387 27 179 — 593 (514 ) 79 Administrative expense (371 ) (109 ) (89 ) — (569 ) — (569 ) REO operations (expense) income (42 ) — — — (42 ) 4 (38 ) Other non-interest (expense) income (413 ) (14 ) — — (427 ) (166 ) (593 ) Income tax (expense) benefit (254 ) (113 ) (189 ) — (556 ) — (556 ) Net income (loss) 1,183 549 974 — 2,706 — 2,706 Changes in unrealized gains (losses) related to available-for-sale securities — (44 ) (125 ) — (169 ) — (169 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 25 — 25 — 25 Changes in defined benefit plans (2 ) — (1 ) — (3 ) — (3 ) Total other comprehensive income (loss), net of taxes (2 ) (44 ) (101 ) — (147 ) — (147 ) Comprehensive income (loss) $1,181 $505 $873 $— $2,559 $— $2,559 YTD 2018 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 $— $846 $2,410 $— $3,256 $6,022 $9,278 Guarantee fee income 4,932 609 — — 5,541 (4,938 ) 603 Benefit (provision) for credit losses 366 20 — — 386 (9 ) 377 Mortgage loans gains (losses) — (233 ) — — (233 ) 466 233 Investment securities gains (losses) — (353 ) (524 ) — (877 ) (147 ) (1,024 ) Debt gains (losses) 80 22 368 — 470 (25 ) 445 Derivative gains (losses) (37 ) 1,254 2,038 — 3,255 (281 ) 2,974 Other income (loss) 592 128 541 — 1,261 (613 ) 648 Administrative expense (1,070 ) (315 ) (262 ) — (1,647 ) — (1,647 ) REO operations (expense) income (101 ) 1 — — (100 ) 13 (87 ) Other non-interest (expense) income (1,192 ) (33 ) (6 ) — (1,231 ) (488 ) (1,719 ) Income tax (expense) benefit (686 ) (374 ) (886 ) — (1,946 ) — (1,946 ) Net income (loss) 2,884 1,572 3,679 — 8,135 — 8,135 Changes in unrealized gains (losses) related to available-for-sale securities — (134 ) (931 ) — (1,065 ) — (1,065 ) Changes in unrealized gains (losses) related to cash flow hedge relationships — — 87 — 87 — 87 Changes in defined benefit plans (8 ) (2 ) (3 ) — (13 ) — (13 ) Total other comprehensive income (loss), net of taxes (8 ) (136 ) (847 ) — (991 ) — (991 ) Comprehensive income (loss) $2,876 $1,436 $2,832 $— $7,144 $— $7,144 |
Concentration of Credit and O_2
Concentration of Credit and Other Risks (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Table - Concentration of Credit Risk | The table below summarizes the concentration by loan portfolio and geographic area of the approximately $2.0 trillion and $1.9 trillion UPB of our single-family credit guarantee portfolio as of September 30, 2019 and December 31, 2018, 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. Table 14.1 - Concentration of Credit Risk of Our Single-Family Credit Guarantee Portfolio September 30, 2019 December 31, 2018 Percent of Credit Losses Percentage of Portfolio Serious Delinquency Rate Percentage of Portfolio Serious Delinquency Rate YTD 2019 YTD 2018 Core single-family loan portfolio 84 % 0.24 % 82 % 0.22 % 16 % 12 % Legacy and relief refinance single-family loan portfolio 16 1.77 18 1.93 84 88 Total 100 % 0.61 100 % 0.69 100 % 100 % Region (1) West 30 % 0.35 30 % 0.38 12 % 17 % Northeast 24 0.86 24 0.96 40 40 North Central 16 0.60 16 0.63 19 18 Southeast 16 0.72 16 0.90 22 18 Southwest 14 0.51 14 0.57 7 7 Total 100 % 0.61 100 % 0.69 100 % 100 % State (2) Florida 6 % 0.75 6 % 1.01 14 % 10 % New York 5 1.20 5 1.37 12 12 New Jersey 3 1.07 3 1.24 10 10 Illinois 4 0.82 5 0.86 10 9 California 18 0.33 18 0.35 7 10 All other 64 0.57 63 0.64 47 49 Total 100 % 0.61 % 100 % 0.69 % 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 YTD 2019. The table below summarizes the concentration of mortgage insurer counterparties who provided 10% or more of our overall mortgage insurance coverage. 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. Because Genworth Mortgage Insurance Corporation, a subsidiary of Genworth Financial, Inc., is an approved mortgage insurer, Freddie Mac has evaluated the planned acquisition and approved China Oceanwide Holdings Group's control of Genworth Mortgage Insurance Corporation. Regulatory and other approvals of the acquisition are still pending. Table 14.5 - Mortgage Insurer Concentration Mortgage Insurance Coverage (2) Mortgage Insurer Credit Rating (1) September 30, 2019 December 31, 2018 Arch Mortgage Insurance Company A- 22 % 24 % Radian Guaranty Inc. BBB 20 20 Mortgage Guaranty Insurance Corporation BBB 18 19 Genworth Mortgage Insurance Corporation BB+ 15 14 Essent Guaranty, Inc. BBB+ 15 14 Total 90 % 91 % (1) Ratings are for the corporate entity to which we have the greatest exposure. Latest rating available as of September 30, 2019. Represents the lower of S&P and Moody’s credit ratings stated in terms of the S&P equivalent. (2) Includes primary mortgage insurance and pool insurance. Coverage amounts may include coverage provided by affiliates and subsidiaries of the counterparty. Table 14.3 - Seller Concentration Single-family Sellers (1) YTD 2019 YTD 2018 JPMorgan Chase Bank, N.A. 16 % 5 % Wells Fargo Bank, N.A. 7 12 Other top 10 sellers 33 32 Top 10 single-family sellers 56 % 49 % Multifamily Sellers (1) YTD 2019 YTD 2018 CBRE Capital Markets, Inc. 16 % 19 % Berkadia Commercial Mortgage LLC 15 12 Other top 10 sellers 48 47 Top 10 multifamily sellers 79 % 78 % (1) Sellers presented based on those with the highest percentage of purchase volume during YTD 2019. Servicers Significant portions of our single-family and multifamily loans are serviced by several large servicers. The tables below summarize 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 as of September 30, 2019 or December 31, 2018. For purposes of determining the concentration of servicers in the tables below, our multifamily mortgage portfolio excludes loans underlying multifamily securitizations where we are not in first loss position, primarily K Certificates and SB Certificates . Table 14.4 - Servicer Concentration Single-family Servicers (2) September 30, 2019 (1) December 31, 2018 (1) Wells Fargo Bank, N.A. 15 % 17 % JPMorgan Chase Bank, N.A. 10 8 Other top 10 servicers 31 31 Top 10 single-family servicers 56 % 56 % Multifamily Servicers (2) September 30, 2019 December 31, 2018 Wells Fargo Bank, N.A. 15 % 14 % Berkadia Commercial Mortgage LLC 11 11 CBRE Capital Markets, Inc. 11 14 Other top 10 servicers 40 36 Top 10 multifamily servicers 77 % 75 % (1) |
Table - Certain Higher Risk Categories In Our Single Family Credit Guarantee Portfolio | Presented below is a summary of the serious delinquency rates of certain higher-risk categories (based on characteristics of the loan at origination) of loans in our single-family credit guarantee portfolio. The table includes a presentation of each higher-risk category in isolation. A single loan may fall within more than one category (for example, an interest-only loan may also have an original LTV ratio greater than 90%). Loans with a combination of these attributes will have an even higher risk of delinquency than those with an individual attribute. Table 14.2 - Certain Higher Risk Categories in Our Single-Family Credit Guarantee Portfolio Percentage of Portfolio (1) Serious Delinquency Rate (1) (Percentage of portfolio based on UPB) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest-only 1 % 1 % 2.72 % 3.43 % Alt-A 1 1 3.75 4.13 Original LTV ratio greater than 90% (2) 18 18 0.92 1.04 Lower credit scores at origination (less than 620) 2 2 4.24 4.59 (1) Excludes loans underlying certain other securitization products for which data was not available. (2) Includes HARP loans, which we purchased as part of our participation in the MHA Program. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Table - Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option. Table 15.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis September 30, 2019 (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 $— $23,969 $2,150 $— $26,119 Other agency — 992 34 — 1,026 Non-agency and other — 21 1,367 — 1,388 Total available-for-sale securities, at fair value — 24,982 3,551 — 28,533 Trading, at fair value: Mortgage-related securities: Freddie Mac — 10,042 2,930 — 12,972 Other agency — 7,189 5 — 7,194 All other — — 1 — 1 Total mortgage-related securities — 17,231 2,936 — 20,167 Non-mortgage-related securities 21,952 2,330 — — 24,282 Total trading securities, at fair value 21,952 19,561 2,936 — 44,449 Total investments in securities 21,952 44,543 6,487 — 72,982 Mortgage loans: Held-for-sale, at fair value — 21,538 — — 21,538 Derivative assets, net: Interest-rate swaps — 2,504 — — 2,504 Option-based derivatives — 5,196 — — 5,196 Other — 192 16 — 208 Subtotal, before netting adjustments — 7,892 16 — 7,908 Netting adjustments (1) — — — (6,316 ) (6,316 ) Total derivative assets, net — 7,892 16 (6,316 ) 1,592 Other assets: Guarantee asset, at fair value — — 4,225 — 4,225 Non-derivative held-for-sale purchase commitments, at fair value — 223 — — 223 All other, at fair value — — 142 — 142 Total other assets — 223 4,367 — 4,590 Total assets carried at fair value on a recurring basis $21,952 $74,196 $10,870 ($6,316 ) $100,702 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $4 $733 $— $737 Other debt, at fair value — 3,733 130 — 3,863 Derivative liabilities, net: Interest-rate swaps — 6,102 — — 6,102 Option-based derivatives — 78 — — 78 Other — 257 40 — 297 Subtotal, before netting adjustments — 6,437 40 — 6,477 Netting adjustments (1) — — — (6,122 ) (6,122 ) Total derivative liabilities, net — 6,437 40 (6,122 ) 355 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 1 — — 1 All other, at fair value — — 2 — 2 Total liabilities carried at fair value on a recurring basis $— $10,175 $905 ($6,122 ) $4,958 Referenced footnote is included after the next table. December 31, 2018 (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 $— $26,102 $4,097 $— $30,199 Other agency — 1,668 38 — 1,706 Non-agency and other — 18 1,640 — 1,658 Total available-for-sale securities, at fair value — 27,788 5,775 — 33,563 Trading, at fair value: Mortgage-related securities: Freddie Mac — 10,535 3,286 — 13,821 Other agency — 2,544 7 — 2,551 All other — — 1 — 1 Total mortgage-related securities — 13,079 3,294 — 16,373 Non-mortgage-related securities 15,885 3,290 — — 19,175 Total trading securities, at fair value 15,885 16,369 3,294 — 35,548 Total investments in securities 15,885 44,157 9,069 — 69,111 Mortgage loans: Held-for-sale, at fair value — 23,106 — — 23,106 Derivative assets, net: Interest-rate swaps — 2,127 — — 2,127 Option-based derivatives — 4,200 — — 4,200 Other — 90 1 — 91 Subtotal, before netting adjustments — 6,417 1 — 6,418 Netting adjustments (1) — — — (6,083 ) (6,083 ) Total derivative assets, net — 6,417 1 (6,083 ) 335 Other assets: Guarantee asset, at fair value — — 3,633 — 3,633 Non-derivative held-for-sale purchase commitments, at fair value — 159 — — 159 All other, at fair value — — 137 — 137 Total other assets — 159 3,770 — 3,929 Total assets carried at fair value on a recurring basis $15,885 $73,839 $12,840 ($6,083 ) $96,481 Liabilities: Debt securities of consolidated trusts held by third parties, at fair value $— $27 $728 $— $755 Other debt, at fair value — 4,223 134 — 4,357 Derivative liabilities, net: Interest-rate swaps — 3,974 — — 3,974 Option-based derivatives — 137 — — 137 Other — 225 92 — 317 Subtotal, before netting adjustments — 4,336 92 — 4,428 Netting adjustments (1) — — — (3,845 ) (3,845 ) Total derivative liabilities, net — 4,336 92 (3,845 ) 583 Other liabilities: Non-derivative held-for-sale purchase commitments, at fair value — 17 — — 17 Total liabilities carried at fair value on a recurring basis $— $8,603 $954 ($3,845 ) $5,712 (1) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. |
Table - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs | The tables below present a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The tables also present gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of comprehensive income for Level 3 assets and liabilities. Table 15.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs 3Q 2019 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 $2,744 $23 $16 $39 $— $— ($531 ) ($102 ) $— $— $2,150 $1 Other agency 36 — — — — — — (2 ) — — 34 — Non-agency and other 1,494 26 (10 ) 16 — — (87 ) (56 ) — — 1,367 3 Total available-for-sale mortgage-related securities 4,274 49 6 55 — — (618 ) (160 ) — — 3,551 4 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,028 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,930 (31 ) Other agency 5 — — — — — — — — — 5 — All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,034 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,936 (31 ) Other assets: Guarantee asset 3,941 15 — 15 — 439 — (170 ) — — 4,225 15 All other, at fair value 126 12 — 12 24 12 (27 ) (5 ) — — 142 (3 ) Total other assets $4,067 $27 $— $27 $24 $451 ($27 ) ($175 ) $— $— $4,367 $12 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 $733 $— $— $— $— $— $— $— $— $— $733 $— Other debt, at fair value 129 — — — 2 — — (1 ) — — 130 — Net derivatives (2) 40 (8 ) — (8 ) — — — (8 ) — — 24 (13 ) All other, at fair value — 2 — 2 2 — (2 ) — — — 2 — Referenced footnotes are included after the prior period tables. YTD 2019 Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (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 $4,097 $13 $115 $128 $202 $— ($1,724 ) ($290 ) $— ($263 ) $2,150 $2 Other agency 38 — 1 1 — — — (5 ) — — 34 — Non-agency and other 1,640 52 25 77 — — (174 ) (176 ) — — 1,367 12 Total available-for-sale mortgage-related securities 5,775 65 141 206 202 — (1,898 ) (471 ) — (263 ) 3,551 14 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,286 (113 ) — (113 ) 1,242 — (730 ) 95 8 (858 ) 2,930 (68 ) Other agency 7 — — — — — (2 ) — — — 5 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,294 (113 ) — (113 ) 1,242 — (732 ) 95 8 (858 ) 2,936 (69 ) Other assets: Guarantee asset 3,633 75 — 75 — 1,005 — (488 ) — — 4,225 75 All other, at fair value 137 (31 ) — (31 ) 75 29 (59 ) (9 ) — — 142 (51 ) Total other assets $3,770 $44 $— $44 $75 $1,034 ($59 ) ($497 ) $— $— $4,367 $24 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 $728 $5 $— $5 $— $— $— $— $— $— $733 $5 Other debt, at fair value 134 — — — — 2 — (6 ) — — 130 — Net derivatives (2) 91 (54 ) — (54 ) — — — (13 ) — — 24 (66 ) All other, at fair value — — — — 4 — (2 ) — — — 2 (2 ) Referenced footnotes are included after the prior period tables. 3Q 2018 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 $6,004 ($3 ) ($68 ) ($71 ) $684 $— ($237 ) ($199 ) $— ($91 ) $6,090 ($4 ) Other agency 270 — — — — — — (2 ) — (228 ) 40 — Non-agency and other 2,535 383 (66 ) 317 — — (660 ) (134 ) — — 2,058 10 Total available-for-sale mortgage-related securities 8,809 380 (134 ) 246 684 — (897 ) (335 ) — (319 ) 8,188 6 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,711 (140 ) — (140 ) 623 — (875 ) (31 ) — (108 ) 3,180 (136 ) Other agency 17 (1 ) — (1 ) — — — 1 — — 17 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,729 (141 ) — (141 ) 623 — (875 ) (30 ) — (108 ) 3,198 (137 ) Other assets: Guarantee asset 3,363 (28 ) — (28 ) — 255 — (147 ) — — 3,443 (28 ) All other, at fair value 103 1 — 1 (3 ) (11 ) — — — — 90 (4 ) Total other assets $3,466 ($27 ) $— ($27 ) ($3 ) $244 $— ($147 ) $— $— $3,533 ($32 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $629 ($1 ) $— ($1 ) $— $100 $— $— $— $— $728 ($1 ) Other debt, at fair value 135 — — — — — — (1 ) — — 134 — Net derivatives (2) 42 8 — 8 — 41 — (4 ) — — 87 3 Referenced footnotes are included after the following table. YTD 2018 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 $6,751 ($13 ) ($267 ) ($280 ) $684 $— ($293 ) ($772 ) $— $— $6,090 ($13 ) Other agency 46 — (1 ) (1 ) — — — (5 ) — — 40 — Non-agency and other 4,291 876 (538 ) 338 — — (2,160 ) (411 ) — — 2,058 31 Total available-for-sale mortgage-related securities 11,088 863 (806 ) 57 684 — (2,453 ) (1,188 ) — — 8,188 18 Trading, at fair value: Mortgage-related securities: Freddie Mac 2,907 (383 ) — (383 ) 1,027 — (863 ) (55 ) 579 (32 ) 3,180 (362 ) Other agency 9 (2 ) — (2 ) 30 — (21 ) 1 — — 17 (2 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 2,917 (385 ) — (385 ) 1,057 — (884 ) (54 ) 579 (32 ) 3,198 (364 ) Other assets: Guarantee asset 3,171 (48 ) — (48 ) — 745 — (425 ) — — 3,443 (48 ) All other, at fair value 45 31 — 31 38 (24 ) — — — — 90 11 Total other assets $3,216 ($17 ) $— ($17 ) $38 $721 $— ($425 ) $— $— $3,533 ($37 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $630 ($2 ) $— ($2 ) $— $100 $— $— $— $— $728 ($2 ) Other debt, at fair value 137 — — — — — — (3 ) — — 134 — Net derivatives (2) 57 28 — 28 — 15 — (13 ) — — 87 15 (1) Transfers out of Level 3 during 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 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 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 consisted primarily of certain mortgage-related securities due to a decrease in market activity and the availability of 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 September 30, 2019 and September 30, 2018, respectively. Included in these amounts are other-than temporary impairments recorded on available-for-sale securities. |
Table - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs | The tables below present a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The tables also present gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of comprehensive income for Level 3 assets and liabilities. Table 15.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs 3Q 2019 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 $2,744 $23 $16 $39 $— $— ($531 ) ($102 ) $— $— $2,150 $1 Other agency 36 — — — — — — (2 ) — — 34 — Non-agency and other 1,494 26 (10 ) 16 — — (87 ) (56 ) — — 1,367 3 Total available-for-sale mortgage-related securities 4,274 49 6 55 — — (618 ) (160 ) — — 3,551 4 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,028 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,930 (31 ) Other agency 5 — — — — — — — — — 5 — All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,034 (30 ) — (30 ) 287 — (21 ) (35 ) — (299 ) 2,936 (31 ) Other assets: Guarantee asset 3,941 15 — 15 — 439 — (170 ) — — 4,225 15 All other, at fair value 126 12 — 12 24 12 (27 ) (5 ) — — 142 (3 ) Total other assets $4,067 $27 $— $27 $24 $451 ($27 ) ($175 ) $— $— $4,367 $12 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 $733 $— $— $— $— $— $— $— $— $— $733 $— Other debt, at fair value 129 — — — 2 — — (1 ) — — 130 — Net derivatives (2) 40 (8 ) — (8 ) — — — (8 ) — — 24 (13 ) All other, at fair value — 2 — 2 2 — (2 ) — — — 2 — Referenced footnotes are included after the prior period tables. YTD 2019 Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (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 $4,097 $13 $115 $128 $202 $— ($1,724 ) ($290 ) $— ($263 ) $2,150 $2 Other agency 38 — 1 1 — — — (5 ) — — 34 — Non-agency and other 1,640 52 25 77 — — (174 ) (176 ) — — 1,367 12 Total available-for-sale mortgage-related securities 5,775 65 141 206 202 — (1,898 ) (471 ) — (263 ) 3,551 14 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,286 (113 ) — (113 ) 1,242 — (730 ) 95 8 (858 ) 2,930 (68 ) Other agency 7 — — — — — (2 ) — — — 5 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,294 (113 ) — (113 ) 1,242 — (732 ) 95 8 (858 ) 2,936 (69 ) Other assets: Guarantee asset 3,633 75 — 75 — 1,005 — (488 ) — — 4,225 75 All other, at fair value 137 (31 ) — (31 ) 75 29 (59 ) (9 ) — — 142 (51 ) Total other assets $3,770 $44 $— $44 $75 $1,034 ($59 ) ($497 ) $— $— $4,367 $24 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 $728 $5 $— $5 $— $— $— $— $— $— $733 $5 Other debt, at fair value 134 — — — — 2 — (6 ) — — 130 — Net derivatives (2) 91 (54 ) — (54 ) — — — (13 ) — — 24 (66 ) All other, at fair value — — — — 4 — (2 ) — — — 2 (2 ) Referenced footnotes are included after the prior period tables. 3Q 2018 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 $6,004 ($3 ) ($68 ) ($71 ) $684 $— ($237 ) ($199 ) $— ($91 ) $6,090 ($4 ) Other agency 270 — — — — — — (2 ) — (228 ) 40 — Non-agency and other 2,535 383 (66 ) 317 — — (660 ) (134 ) — — 2,058 10 Total available-for-sale mortgage-related securities 8,809 380 (134 ) 246 684 — (897 ) (335 ) — (319 ) 8,188 6 Trading, at fair value: Mortgage-related securities: Freddie Mac 3,711 (140 ) — (140 ) 623 — (875 ) (31 ) — (108 ) 3,180 (136 ) Other agency 17 (1 ) — (1 ) — — — 1 — — 17 (1 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 3,729 (141 ) — (141 ) 623 — (875 ) (30 ) — (108 ) 3,198 (137 ) Other assets: Guarantee asset 3,363 (28 ) — (28 ) — 255 — (147 ) — — 3,443 (28 ) All other, at fair value 103 1 — 1 (3 ) (11 ) — — — — 90 (4 ) Total other assets $3,466 ($27 ) $— ($27 ) ($3 ) $244 $— ($147 ) $— $— $3,533 ($32 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $629 ($1 ) $— ($1 ) $— $100 $— $— $— $— $728 ($1 ) Other debt, at fair value 135 — — — — — — (1 ) — — 134 — Net derivatives (2) 42 8 — 8 — 41 — (4 ) — — 87 3 Referenced footnotes are included after the following table. YTD 2018 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 $6,751 ($13 ) ($267 ) ($280 ) $684 $— ($293 ) ($772 ) $— $— $6,090 ($13 ) Other agency 46 — (1 ) (1 ) — — — (5 ) — — 40 — Non-agency and other 4,291 876 (538 ) 338 — — (2,160 ) (411 ) — — 2,058 31 Total available-for-sale mortgage-related securities 11,088 863 (806 ) 57 684 — (2,453 ) (1,188 ) — — 8,188 18 Trading, at fair value: Mortgage-related securities: Freddie Mac 2,907 (383 ) — (383 ) 1,027 — (863 ) (55 ) 579 (32 ) 3,180 (362 ) Other agency 9 (2 ) — (2 ) 30 — (21 ) 1 — — 17 (2 ) All other 1 — — — — — — — — — 1 — Total trading mortgage-related securities 2,917 (385 ) — (385 ) 1,057 — (884 ) (54 ) 579 (32 ) 3,198 (364 ) Other assets: Guarantee asset 3,171 (48 ) — (48 ) — 745 — (425 ) — — 3,443 (48 ) All other, at fair value 45 31 — 31 38 (24 ) — — — — 90 11 Total other assets $3,216 ($17 ) $— ($17 ) $38 $721 $— ($425 ) $— $— $3,533 ($37 ) Balance, Realized and unrealized gains (losses) Purchases Issues Sales Settlements, Transfers (1) Transfers (1) Balance, Unrealized (3) Included in Included in other Total Liabilities Debt securities of consolidated trusts held by third parties, at fair value $630 ($2 ) $— ($2 ) $— $100 $— $— $— $— $728 ($2 ) Other debt, at fair value 137 — — — — — — (3 ) — — 134 — Net derivatives (2) 57 28 — 28 — 15 — (13 ) — — 87 15 (1) Transfers out of Level 3 during 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 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 3Q 2019 and YTD 2019 and 3Q 2018 and YTD 2018 consisted primarily of certain mortgage-related securities due to a decrease in market activity and the availability of 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 September 30, 2019 and September 30, 2018, 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 tables below provide valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis. Table 15.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements September 30, 2019 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Assets Available-for-sale, at fair value Mortgage-related securities Freddie Mac $2,150 Discounted cash flows OAS 30 - 261 bps 81 bps Non-agency and other 979 Median of external sources External pricing sources $70.3 - $76.7 $73.5 388 Other Trading, at fair value Mortgage-related securities Freddie Mac 2,047 Single external source External pricing sources $0.0 - $102.4 $36.1 883 Discounted cash flows OAS (831) - 8,095 bps 555 bps Guarantee asset, at fair value 3,970 Discounted cash flows OAS 17-186 bps 43 bps 255 Other Insignificant Level 3 assets (1) 182 Total level 3 assets $10,854 Liabilities Debt securities of consolidated trusts held by third parties, at fair value $733 Single External Source External Pricing Sources $99.5 - $103.9 $100.4 Insignificant Level 3 liabilities (1) 156 Referenced footnote is included after the next table. December 31, 2018 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average Assets Available-for-sale, at fair value Mortgage-related securities Freddie Mac $2,838 Discounted cash flows OAS 30 - 325 bps 81 bps 1,259 Single external source External pricing sources $96.1 - $104.1 $102.3 Non-agency and other 1,403 Median of external sources External pricing sources $64.3 - $71.1 $67.3 237 Single external source External pricing sources $93.1 - $110.7 $100.7 Trading, at fair value Mortgage-related securities Freddie Mac 1,587 Single external source External pricing sources $0.0 - $99.2 $56.6 1,178 Discounted cash flows OAS (21,945) - 6,639 bps 90 bps 521 Other Guarantee asset, at fair value 3,391 Discounted cash flows OAS 17-198 bps 49 bps 242 Other Insignificant Level 3 assets (1) 184 Total level 3 assets $12,840 Liabilities Debt securities of consolidated trusts held by third parties, at fair value $728 Single External Source External Pricing Sources $97.4 - $101.1 $99.6 Insignificant Level 3 liabilities (1) 226 (1) Represents the aggregate amount of Level 3 assets or liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. |
Table - Assets Measured at Fair Value on a Nonrecurring Basis | The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis. Table 15.4 - Assets Measured at Fair Value on a Non-Recurring Basis September 30, 2019 December 31, 2018 (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) $— $429 $3,301 $3,730 $— $24 $7,519 $7,543 (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 - Fair Value Assets Measured on Nonrecurring Basis Valuation Techniques | The tables below provide valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis. Table 15.5 - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements September 30, 2019 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 $3,301 Internal model Historical sales proceeds $3,110 - $671,825 $185,551 Internal model Housing sales index 45 - 352 bps 113 bps Median of external sources External pricing sources $30.4 - $95.0 $85.1 December 31, 2018 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 $7,519 Internal model Historical sales proceeds $3,000 - $750,500 $177,725 Internal model Housing sales index 44 - 480 bps 108 bps Median of external sources External pricing sources $36.2 - $94.6 $82.5 |
Table - Fair Value of Financial Instruments | The tables below present the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, secured lending and other, and certain debt, the carrying value on our GAAP balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility. Table 15.6 - Fair Value of Financial Instruments September 30, 2019 GAAP Measurement Category (1) GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $8,708 $8,693 $15 $— $— $8,708 Securities purchased under agreements to resell Amortized cost 51,187 — 51,187 — — 51,187 Investments in securities: Available-for-sale, at fair value FV - OCI 28,533 — 24,982 3,551 — 28,533 Trading, at fair value FV - NI 44,449 21,952 19,561 2,936 — 44,449 Total investments in securities 72,982 21,952 44,543 6,487 — 72,982 Mortgage loans: Loans held by consolidated trusts 1,905,633 — 1,714,292 223,324 — 1,937,616 Loans held by Freddie Mac 91,857 — 46,636 48,517 — 95,153 Total mortgage loans Various (3) 1,997,490 — 1,760,928 271,841 — 2,032,769 Derivative assets, net FV - NI 1,592 — 7,892 16 (6,316 ) 1,592 Guarantee asset FV - NI 4,225 — — 4,233 — 4,233 Non-derivative purchase commitments, at fair value FV - NI 223 — 229 1 — 230 Secured lending and other Amortized cost 5,439 — 1,728 2,745 — 4,473 Total financial assets $2,141,846 $30,645 $1,866,522 $285,323 ($6,316 ) $2,176,174 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,869,308 $— $1,898,887 $2,068 $— $1,900,955 Other debt 279,951 — 281,229 3,757 — 284,986 Total debt, net Various (4) 2,149,259 — 2,180,116 5,825 — 2,185,941 Derivative liabilities, net FV - NI 355 — 6,437 40 (6,122 ) 355 Guarantee obligation Amortized cost 4,055 — — 4,416 — 4,416 Non-derivative purchase commitments, at fair value FV - NI 1 — 1 12 — 13 Total financial liabilities $2,153,670 $— $2,186,554 $10,293 ($6,122 ) $2,190,725 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. (3) As of September 30, 2019, the GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $2.0 trillion , $19.6 billion , and $21.5 billion , respectively. (4) As of September 30, 2019, the GAAP carrying amounts measured at amortized cost and FV - NI were $2.1 trillion and $4.6 billion , respectively. December 31, 2018 GAAP Measurement Category (1) GAAP Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $7,273 $7,273 $— $— $— $7,273 Securities purchased under agreements to resell Amortized cost 34,771 — 34,771 — — 34,771 Investments in securities: Available-for-sale, at fair value FV - OCI 33,563 — 27,788 5,775 — 33,563 Trading, at fair value FV - NI 35,548 15,885 16,369 3,294 — 35,548 Total investments in securities 69,111 15,885 44,157 9,069 — 69,111 Mortgage loans: Loans held by consolidated trusts 1,842,850 — 1,605,874 209,542 — 1,815,416 Loans held by Freddie Mac 84,128 — 33,946 52,212 — 86,158 Total mortgage loans Various (3) 1,926,978 — 1,639,820 261,754 — 1,901,574 Derivative assets, net FV - NI 335 — 6,417 1 (6,083 ) 335 Guarantee asset FV - NI 3,633 — — 3,642 — 3,642 Non-derivative purchase commitments, at fair value FV - NI 159 — 159 2 — 161 Secured lending and other Amortized cost 1,805 — 195 873 — 1,068 Total financial assets $2,044,065 $23,158 $1,725,519 $275,341 ($6,083 ) $2,017,935 Financial Liabilities Debt, net: Debt securities of consolidated trusts held by third parties $1,792,677 $— $1,759,911 $2,698 $— $1,762,609 Other debt 252,273 — 251,543 3,629 — 255,172 Total debt, net Various (4) 2,044,950 — 2,011,454 6,327 — 2,017,781 Derivative liabilities, net FV - NI 583 — 4,336 92 (3,845 ) 583 Guarantee obligation Amortized cost 3,561 — — 4,146 — 4,146 Non-derivative purchase commitments, at fair value FV - NI 17 — 17 11 — 28 Total financial liabilities $2,049,111 $— $2,015,807 $10,576 ($3,845 ) $2,022,538 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting, cash collateral netting, and net derivative interest receivable or payable. (3) As of December 31, 2018, the GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $1.9 trillion , $18.5 billion , and $23.1 billion , respectively. (4) As of December 31, 2018, the GAAP carrying amounts measured at amortized cost and FV - NI were $2.0 trillion and $5.1 billion |
Table - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected | The table below presents the fair value and UPB related to certain loans and long-term debt for which we have elected the fair value option. This table does not include interest-only securities related to debt securities of consolidated trusts and other debt held by third parties with a fair value of $61 million and $26 million and multifamily held-for-sale loan purchase commitments with a fair value of $222 million and $142 million , as of September 30, 2019 and December 31, 2018, respectively. Table 15.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected September 30, 2019 December 31, 2018 (In millions) Multifamily Held-For-Sale Loans Other Debt - Long Term Debt Securities Of Consolidated Trusts Held By Third Parties Multifamily Held-For-Sale Loans Other Debt - Long Term Debt Securities Of Consolidated Trusts Held By Third Parties Fair value $21,538 $3,806 $733 $23,106 $4,357 $728 UPB 20,152 3,538 730 22,693 3,998 730 Difference $1,386 $268 $3 $413 $359 ($2 ) The table below presents the changes in fair value included in non-interest income (loss) in our condensed consolidated statements of comprehensive income, related to items for which we have elected the fair value option. Table 15.8 - Changes in Fair Value Under the Fair Value Option Election 3Q 2019 3Q 2018 YTD 2019 YTD 2018 (In millions) Gains (Losses) Gains (Losses) Multifamily held-for-sale loans $398 ($285 ) $1,216 ($797 ) Multifamily held-for-sale loan purchase commitments 641 267 1,644 564 Other debt - long term 49 10 116 38 Debt securities of consolidated trusts held by third parties (1 ) 2 (6 ) 4 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage Banking [Abstract] | |
Table - Net Worth and Minimum Capital | We continue to provide quarterly submissions to FHFA on minimum capital. The table below summarizes our minimum capital requirements and deficits and net worth. Table 17.1 - Net Worth and Minimum Capital (In millions) September 30, 2019 December 31, 2018 GAAP net worth (deficit) $6,674 $4,477 Core capital (deficit) (1)(2) (66,556 ) (68,036 ) Less: Minimum capital requirement (1) 18,817 17,553 Minimum capital surplus (deficit) (1) ($85,373 ) ($85,589 ) (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 _2
Selected Financial Statement Line Items (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Selected Financial Statement Data [Abstract] | |
Table - Significant Components of Other Income (Loss) | The table below presents the significant components of other income (loss) on our condensed consolidated statements of comprehensive income (loss). Table 18.1 - Significant Components of Other Income (Loss) (In millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Other income (loss): Income on guarantee obligation $206 $176 $593 $524 All other (60 ) (97 ) (204 ) 124 Total other income (loss) $146 $79 $389 $648 |
Table - Significant Components of Other Assets and Other Liabilities | The table below presents the significant components of other assets and other liabilities on our condensed consolidated balance sheets. Table 18.2 - Significant Components of Other Assets and Other Liabilities (In millions) September 30, 2019 December 31, 2018 Other assets: Real estate owned, net $607 $769 Accounts and other receivables (1) 12,816 2,447 Guarantee asset 4,225 3,633 Secured lending and other 5,439 1,805 All other 2,626 2,322 Total other assets $25,713 $10,976 Other liabilities: Guarantee obligation $4,055 $3,561 All other 3,215 2,837 Total other liabilities $7,270 $6,398 (1) Primarily consists of servicer receivables and other non-interest receivables. |
Conservatorship and Related M_2
Conservatorship and Related Matters (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 60 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||||
Applicable capital reserve amount from July 1, 2019 and thereafter | $ 20,000,000,000 | $ 20,000,000,000 | $ 20,000,000,000 | ||||
Preference liquidation maximum increase | 17,000,000,000 | 17,000,000,000 | 17,000,000,000 | ||||
Senior preferred stock, at redemption value | 77,474,000,000 | $ 75,600,000,000 | 77,474,000,000 | 77,474,000,000 | $ 75,648,000,000 | ||
Net worth increase | 1,800,000,000 | $ 1,800,000,000 | |||||
Maximum limit of the UPB of mortgage-related investments portfolio | 225,000,000,000 | 225,000,000,000 | 225,000,000,000 | ||||
UPB of mortgage-related investments portfolio | 221,600,000,000 | 221,600,000,000 | 221,600,000,000 | ||||
Increase in liquidation preference | 0 | 0 | $ 312,000,000 | ||||
Funding available under Purchase Agreement | $ 140,200,000,000 | 140,200,000,000 | 140,200,000,000 | ||||
CSS | |||||||
Related Party Transaction [Line Items] | |||||||
Amount of related party transaction | $ 84,000,000 | $ 548,000,000 | |||||
Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Senior preferred stock, at redemption value | $ 79,300,000,000 |
Securitization Activities and_3
Securitization Activities and Consolidation - Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets [Abstract] | ||||
Cash and cash equivalents | $ 8,708 | $ 7,273 | $ 7,038 | $ 9,811 |
Restricted cash and cash equivalents | 3,560 | 596 | ||
Securities purchased under agreement to resell | 51,187 | 34,771 | ||
Investments in securities, at fair value | 72,982 | 69,111 | ||
Mortgage loans held-for-investment | 1,956,372 | 1,885,356 | ||
Accrued interest receivable | 6,790 | 6,728 | ||
Other assets | 25,713 | 10,976 | ||
Total assets | 2,170,246 | 2,063,060 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities [Abstract] | ||||
Accrued interest payable | 6,688 | 6,652 | ||
Debt, net | 2,149,259 | 2,044,950 | ||
Total liabilities | 2,163,572 | 2,058,583 | ||
Held by consolidated trusts | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets [Abstract] | ||||
Cash and cash equivalents | 3,495 | 567 | ||
Restricted cash and cash equivalents | 3,494 | 566 | ||
Securities purchased under agreement to resell | 21,400 | 12,125 | ||
Investments in securities, at fair value | 766 | 0 | ||
Mortgage loans held-for-investment | 1,905,633 | 1,842,850 | ||
Accrued interest receivable | 6,109 | 5,914 | ||
Other assets | 12,093 | 1,631 | ||
Total assets | 1,949,496 | 1,863,087 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities [Abstract] | ||||
Accrued interest payable | 5,519 | 5,335 | ||
Debt, net | 1,869,308 | 1,792,677 | ||
Total liabilities | $ 1,874,827 | $ 1,798,012 |
Securitization Activities and_4
Securitization Activities and Consolidation - Non-Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Investments in securities, at fair value | $ 72,982 | $ 69,111 |
Accrued interest receivable | 6,790 | 6,728 |
Derivative Assets, net | 1,592 | 335 |
Other Assets | 25,713 | 10,976 |
Liabilities [Abstract] | ||
Derivative Liabilities, net | 355 | 583 |
Other Liabilities | 7,270 | 6,398 |
Variable Interest Entity, Not Primary Beneficiary | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 39,091 | 44,020 |
Accrued interest receivable | 214 | 235 |
Derivative Assets, net | 12 | 1 |
Other Assets | 3,737 | 3,119 |
Liabilities [Abstract] | ||
Derivative Liabilities, net | 89 | 88 |
Other Liabilities | 3,511 | 3,049 |
Maximum Exposure to Loss | 268,269 | 241,055 |
Total Assets of Non-Consolidated VIEs | $ 320,221 | $ 284,724 |
Mortgage Loans and Loan Loss _3
Mortgage Loans and Loan Loss Reserves (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)numberofloans | Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)numberofloans | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Noncash acquisition, mortgage loans held-for-investment acquired in exchange for issuance of debt securities of consolidated trusts | $ 162,700 | $ 122,600 | |||
Transfers from advances to lenders to loans HFI | 28,600 | 18,800 | |||
Credit to advances to lender cash path | $ 1,600 | $ 100 | |||
Single-family | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 3,563 | 4,055 | 11,644 | 11,072 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 443 | $ 586 | $ 1,367 | $ 1,646 | |
Interest rate reduction and term extension types, percentage of completed modifications | 9.00% | 9.00% | 8.00% | 12.00% | |
Principal forebearance and interest rate reductions and term extension types, percentage of completed modifications | 23.00% | 21.00% | 24.00% | 24.00% | |
Average term extension, number of months of completed modifications | 188 months | 110 months | 177 months | 126 months | |
Average interest rate reduction, percentage of completed modifications | 0.20% | 0.20% | 0.10% | 0.30% | |
Multifamily | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 0 | 0 | 0 | 0 | |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 0 | $ 0 | $ 0 | $ 0 | |
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 | 3.80% | 3.80% | 6.60% | ||
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 | 0.10% | 0.10% | 0.20% | ||
Other loss mitigation activities | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 3,983 | 6,487 | |||
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ 400 | $ 800 |
Mortgage Loans and Loan Loss _4
Mortgage Loans and Loan Loss Reserves - Mortgage Loans (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | $ 42,646 | $ 44,905 |
Cost basis and fair value adjustments, net HFS | (1,528) | (3,283) |
Total held-for-sale loans, net | 41,118 | 41,622 |
UPB of mortgage loans - HFI | 1,926,674 | 1,864,941 |
Cost basis adjustment HFI | 34,552 | 26,554 |
Allowance for loan losses on mortgage loans held-for-investment | (4,854) | (6,139) |
Total held-for-investment mortgage loans, net | 1,956,372 | 1,885,356 |
Total mortgage loans, net | 1,997,490 | 1,926,978 |
Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 17,249 | 20,946 |
UPB of mortgage loans - HFI | 1,909,792 | 1,849,893 |
Allowance for loan losses on mortgage loans held-for-investment | (4,841) | (6,130) |
Total held-for-investment mortgage loans, net | 1,939,486 | 1,870,335 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 25,397 | 23,959 |
UPB of mortgage loans - HFI | 16,882 | 15,048 |
Allowance for loan losses on mortgage loans held-for-investment | (13) | (9) |
Total held-for-investment mortgage loans, net | 16,886 | 15,021 |
Held by Freddie Mac | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 42,646 | 44,905 |
Cost basis and fair value adjustments, net HFS | (1,528) | (3,283) |
Total held-for-sale loans, net | 41,118 | 41,622 |
UPB of mortgage loans - HFI | 53,177 | 46,713 |
Cost basis adjustment HFI | (421) | (1,198) |
Allowance for loan losses on mortgage loans held-for-investment | (2,017) | (3,009) |
Total held-for-investment mortgage loans, net | 50,739 | 42,506 |
Total mortgage loans, net | 91,857 | 84,128 |
Held by Freddie Mac | Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 17,249 | 20,946 |
UPB of mortgage loans - HFI | 41,886 | 35,885 |
Held by Freddie Mac | Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 25,397 | 23,959 |
UPB of mortgage loans - HFI | 11,291 | 10,828 |
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 | 1,873,497 | 1,818,228 |
Cost basis adjustment HFI | 34,973 | 27,752 |
Allowance for loan losses on mortgage loans held-for-investment | (2,837) | (3,130) |
Total held-for-investment mortgage loans, net | 1,905,633 | 1,842,850 |
Total mortgage loans, net | 1,905,633 | 1,842,850 |
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 | 1,867,906 | 1,814,008 |
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 | $ 5,591 | $ 4,220 |
Mortgage Loans and Loan Loss _5
Mortgage Loans and Loan Loss Reserves Mortgage Loans and Loan Loss Reserves - Loans Purchased, Reclassified from Held-for-Investment to Held-for-Sale and Sold (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Single-family | Held-for-Investment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Purchase | $ 133.8 | $ 81.6 | $ 305 | $ 231.5 |
Financing Receivable, Reclassification to Held-for-sale | 3 | 13.3 | 8.1 | 17.6 |
Single-family | Held-for-Sale | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Sale | 3.7 | 2.3 | 9.4 | 6.5 |
Multifamily | Held-for-Investment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Purchase | 4.4 | 0.9 | 6.8 | 2.6 |
Financing Receivable, Reclassification to Held-for-sale | 0.4 | 0.2 | 1.2 | 0.7 |
Multifamily | Held-for-Sale | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing Receivable, Purchase | 23.1 | 16.3 | 50.6 | 42.5 |
Financing Receivable, Sale | $ 19.7 | $ 14.4 | $ 49.5 | $ 44.8 |
Mortgage Loans and Loan Loss _6
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Held-For-Investment Loans by Current LTV Ratio (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,961,226 | $ 1,891,495 |
Single-Family serious delinquency rate | 0.61% | 0.69% |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,648,880 | $ 1,557,667 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 240,892 | 255,831 |
Single-family Adjustable-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 39,325 | 44,007 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 15,230 | 18,960 |
Single Family Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,944,327 | $ 1,876,465 |
Single-Family serious delinquency rate | 0.61% | 0.69% |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,388,311 | $ 1,336,310 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 235,185 | 251,152 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 37,659 | 42,117 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 13,743 | 16,498 |
Less Than Or Equal To 80 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 1,674,898 | 1,646,077 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 255,880 | 214,703 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 5,604 | 4,522 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 1,660 | 1,883 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 1,198 | 1,903 |
Greater Than 80 Through 100 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 264,342 | 223,011 |
Greater Than 100 Estimated Current LTV Ratio | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 4,689 | 6,654 |
Greater Than 100 Estimated Current LTV Ratio | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 103 | 157 |
Greater Than 100 Estimated Current LTV Ratio | Single-family Adjustable-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 6 | 7 |
Greater Than 100 Estimated Current LTV Ratio | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 289 | 559 |
Greater Than 100 Estimated Current LTV Ratio | Single Family Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 5,087 | $ 7,377 |
Single-Family serious delinquency rate | 5.18% | 7.24% |
Mortgage Loans and Loan Loss _7
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Multifamily Held-for-Investment Loans by Credit Quality Indicator (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 1,961,226 | $ 1,891,495 |
Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 16,899 | 15,030 |
Pass | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 16,684 | 14,648 |
Special Mention | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 66 | 201 |
Substandard | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | 149 | 181 |
Doubtful | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment of held-for-investment loans | $ 0 | $ 0 |
Mortgage Loans and Loan Loss _8
Mortgage Loans and Loan Loss Reserves - Recorded Investment of Held-for-Investment Loans by Payment Status (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 1,934,103 | $ 1,862,429 |
Total recorded investment | 1,961,226 | 1,891,495 |
Non-Accrual | 6,456 | 8,138 |
Mortgage Loans in Process of Foreclosure, Amount | 1,900 | 2,900 |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,624,964 | 1,532,499 |
Total recorded investment | 1,648,880 | 1,557,667 |
Non-Accrual | 5,573 | 6,881 |
Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 239,460 | 254,376 |
Total recorded investment | 240,892 | 255,831 |
Non-Accrual | 237 | 263 |
Single-family Adjustable-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 38,928 | 43,549 |
Total recorded investment | 39,325 | 44,007 |
Non-Accrual | 95 | 113 |
Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 13,855 | 16,975 |
Total recorded investment | 15,230 | 18,960 |
Non-Accrual | 538 | 864 |
Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,917,207 | 1,847,399 |
Total recorded investment | 1,944,327 | 1,876,465 |
Non-Accrual | 6,443 | 8,121 |
Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 16,896 | 15,030 |
Total recorded investment | 16,899 | 15,030 |
Non-Accrual | 13 | 17 |
One month past due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16,731 | 16,784 |
One month past due | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 14,846 | 14,683 |
One month past due | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,025 | 1,021 |
One month past due | Single-family Adjustable-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 249 | 287 |
One month past due | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 608 | 793 |
One month past due | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 16,728 | 16,784 |
One month past due | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3 | 0 |
Two months past due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,946 | 4,158 |
Two months past due | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,495 | 3,602 |
Two months past due | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 170 | 171 |
Two months past due | Single-family Adjustable-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 53 | 58 |
Two months past due | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 228 | 327 |
Two months past due | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,946 | 4,158 |
Two months past due | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Three months or more past due or in foreclosure | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 6,446 | 8,124 |
Three months or more past due or in foreclosure | Single-family 20 and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 5,575 | 6,883 |
Three months or more past due or in foreclosure | Single-family 15-year amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 237 | 263 |
Three months or more past due or in foreclosure | Single-family Adjustable-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 95 | 113 |
Three months or more past due or in foreclosure | Single-family Alt-A, interest-only, and option ARM | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 539 | 865 |
Three months or more past due or in foreclosure | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 6,446 | 8,124 |
Three months or more past due or in foreclosure | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Mortgage Loans and Loan Loss _9
Mortgage Loans and Loan Loss Reserves - Delinquency Rates (Details) $ in Millions | Sep. 30, 2019USD ($)numberofloans | Dec. 31, 2018USD ($)numberofloans |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.61% | 0.69% |
Single-family | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.61% | 0.69% |
Total number of seriously delinquent loans | 67,991 | 75,649 |
Single-family | Non-credit-enhanced portfolio | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.72% | 0.83% |
Total number of seriously delinquent loans | 42,758 | 51,197 |
Single-family | Credit-enhanced portfolio | Primary mortgage insurance | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.76% | 0.86% |
Total number of seriously delinquent loans | 14,358 | 15,287 |
Single-family | Credit-enhanced portfolio | Other credit protection | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Serious delinquency rate | 0.34% | 0.31% |
Total number of seriously delinquent loans | 15,736 | 12,920 |
Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.04% | 0.01% |
UPB of delinquent loans | $ | $ 106 | $ 30 |
Multifamily | Non-credit-enhanced portfolio | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.01% | 0.00% |
UPB of delinquent loans | $ | $ 3 | $ 2 |
Multifamily | Credit-enhanced portfolio | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Delinquency Rate | 0.04% | 0.01% |
UPB of delinquent loans | $ | $ 103 | $ 28 |
Mortgage Loans and Loan Loss_10
Mortgage Loans and Loan Loss Reserves - Detail of Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Rollforward of Allowance for Loan Losses | ||||
Ending balance | $ 4,905 | $ 7,002 | $ 4,905 | $ 7,002 |
Reserve for guarantee losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Beginning balance | 52 | |||
Ending balance | 51 | 56 | 51 | 56 |
Held by Freddie Mac | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | 2,017 | 3,610 | 2,017 | 3,610 |
Held by consolidated trusts | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | 2,837 | 3,336 | 2,837 | 3,336 |
Single-family | ||||
Rollforward of Allowance for Loan Losses | ||||
Beginning balance | 5,326 | 8,433 | 6,176 | 8,979 |
Provision (benefit) for credit losses | (180) | (378) | (477) | (357) |
Charge-offs | (407) | (1,277) | (1,256) | (2,248) |
Recoveries | 107 | 119 | 341 | 341 |
Transfers, net | 0 | 0 | 0 | 0 |
Other | 41 | 87 | 103 | 269 |
Ending balance | 4,887 | 6,984 | 4,887 | 6,984 |
Single-family | Reserve for guarantee losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Beginning balance | 46 | 49 | 46 | 48 |
Provision (benefit) for credit losses | 1 | 1 | 3 | 6 |
Charge-offs | (1) | (2) | (3) | (6) |
Recoveries | 0 | 0 | 0 | 0 |
Transfers, net | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Ending balance | 46 | 48 | 46 | 48 |
Single-family | Held by Freddie Mac | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Beginning balance | 2,238 | 4,887 | 3,003 | 5,251 |
Provision (benefit) for credit losses | (84) | (522) | (509) | (629) |
Charge-offs | (394) | (1,262) | (1,208) | (2,198) |
Recoveries | 104 | 117 | 331 | 336 |
Transfers, net | 103 | 306 | 291 | 597 |
Other | 41 | 76 | 100 | 245 |
Ending balance | 2,008 | 3,602 | 2,008 | 3,602 |
Single-family | Held by consolidated trusts | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Beginning balance | 3,042 | 3,497 | 3,127 | 3,680 |
Provision (benefit) for credit losses | (97) | 143 | 29 | 266 |
Charge-offs | (12) | (13) | (45) | (44) |
Recoveries | 3 | 2 | 10 | 5 |
Transfers, net | (103) | (306) | (291) | (597) |
Other | 0 | 11 | 3 | 24 |
Ending balance | 2,833 | 3,334 | 2,833 | 3,334 |
Multifamily | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | 18 | 18 | 18 | 18 |
Multifamily | Reserve for guarantee losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | 5 | 8 | 5 | 8 |
Multifamily | Held by Freddie Mac | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | 9 | 8 | 9 | 8 |
Multifamily | Held by consolidated trusts | Allowance for loan losses | ||||
Rollforward of Allowance for Loan Losses | ||||
Ending balance | $ 4 | $ 2 | $ 4 | $ 2 |
Mortgage Loans and Loan Loss_11
Mortgage Loans and Loan Loss Reserves - Net Investment in Loans (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Recorded investment, collectively evaluated | $ 1,921,021 | $ 1,844,989 |
Recorded investment, individually evaluated | 40,205 | 46,506 |
Total recorded investment | 1,961,226 | 1,891,495 |
Allowance for loan losses, collectively evaluated | (1,528) | (1,770) |
Allowance for loan losses, individually evaluated | (3,326) | (4,369) |
Total ending balance of the allowance | (4,854) | (6,139) |
Total held-for-investment mortgage loans, net | 1,956,372 | 1,885,356 |
Single-family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Recorded investment, collectively evaluated | 1,904,203 | 1,830,044 |
Recorded investment, individually evaluated | 40,124 | 46,421 |
Total recorded investment | 1,944,327 | 1,876,465 |
Allowance for loan losses, collectively evaluated | (1,515) | (1,761) |
Allowance for loan losses, individually evaluated | (3,326) | (4,369) |
Total ending balance of the allowance | (4,841) | (6,130) |
Total held-for-investment mortgage loans, net | 1,939,486 | 1,870,335 |
Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Recorded investment, collectively evaluated | 16,818 | 14,945 |
Recorded investment, individually evaluated | 81 | 85 |
Total recorded investment | 16,899 | 15,030 |
Allowance for loan losses, collectively evaluated | (13) | (9) |
Allowance for loan losses, individually evaluated | 0 | 0 |
Total ending balance of the allowance | (13) | (9) |
Total held-for-investment mortgage loans, net | $ 16,886 | $ 15,021 |
Mortgage Loans and Loan Loss_12
Mortgage Loans and Loan Loss Reserves - Individually Impaired Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, Related Allowance | $ (3,326) | $ (3,326) | $ (4,369) | ||
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 41,479 | 41,479 | 48,276 | ||
Impaired Financing Receivable, Recorded Investment | 40,205 | 40,205 | 46,506 | ||
Average Recorded Investment | 40,875 | $ 53,612 | 42,769 | $ 58,666 | |
Interest Income Recognized | 554 | 710 | 1,868 | 2,204 | |
Interest Income Recognized On Cash Basis | 59 | 66 | 168 | 269 | |
Single-family 20 and 30-year or more, amortizing fixed-rate | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,008 | 3,008 | 3,335 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,390 | 2,390 | 2,666 | ||
Average Recorded Investment | 2,450 | 3,142 | 2,573 | 3,399 | |
Interest Income Recognized | 59 | 83 | 207 | 268 | |
Interest Income Recognized On Cash Basis | 1 | 3 | 6 | 13 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 32,441 | 32,441 | 37,579 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 32,118 | 32,118 | 36,959 | ||
Impaired Financing Receivable, Related Allowance | (2,784) | (2,784) | (3,660) | ||
Average Recorded Investment | 32,618 | 42,393 | 34,051 | 46,140 | |
Interest Income Recognized | 412 | 520 | 1,394 | 1,621 | |
Interest Income Recognized On Cash Basis | 47 | 52 | 138 | 217 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 35,449 | 35,449 | 40,914 | ||
Impaired Financing Receivable, Recorded Investment | 34,508 | 34,508 | 39,625 | ||
Average Recorded Investment | 35,068 | 45,535 | 36,624 | 49,539 | |
Interest Income Recognized | 471 | 603 | 1,601 | 1,889 | |
Interest Income Recognized On Cash Basis | 48 | 55 | 144 | 230 | |
Single-family 15-year amortizing fixed-rate | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 20 | 20 | 23 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 20 | 20 | 22 | ||
Average Recorded Investment | 19 | 20 | 20 | 21 | |
Interest Income Recognized | 1 | 0 | 1 | 3 | |
Interest Income Recognized On Cash Basis | 0 | 0 | 0 | 0 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 641 | 641 | 703 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 650 | 650 | 713 | ||
Impaired Financing Receivable, Related Allowance | (14) | (14) | (19) | ||
Average Recorded Investment | 641 | 740 | 665 | 830 | |
Interest Income Recognized | 5 | 7 | 17 | 21 | |
Interest Income Recognized On Cash Basis | 1 | 2 | 3 | 8 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 661 | 661 | 726 | ||
Impaired Financing Receivable, Recorded Investment | 670 | 670 | 735 | ||
Average Recorded Investment | 660 | 760 | 685 | 851 | |
Interest Income Recognized | 6 | 7 | 18 | 24 | |
Interest Income Recognized On Cash Basis | 1 | 2 | 3 | 8 | |
Single-family Adjustable-rate | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 183 | 183 | 227 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 182 | 182 | 226 | ||
Average Recorded Investment | 191 | 238 | 209 | 255 | |
Interest Income Recognized | 3 | 3 | 9 | 9 | |
Interest Income Recognized On Cash Basis | 0 | 0 | 0 | 0 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 133 | 133 | 164 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 132 | 132 | 162 | ||
Impaired Financing Receivable, Related Allowance | (7) | (7) | (8) | ||
Average Recorded Investment | 129 | 183 | 139 | 210 | |
Interest Income Recognized | 2 | 2 | 5 | 4 | |
Interest Income Recognized On Cash Basis | 0 | 0 | 1 | 2 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 316 | 316 | 391 | ||
Impaired Financing Receivable, Recorded Investment | 314 | 314 | 388 | ||
Average Recorded Investment | 320 | 421 | 348 | 465 | |
Interest Income Recognized | 5 | 5 | 14 | 13 | |
Interest Income Recognized On Cash Basis | 0 | 0 | 1 | 2 | |
Single-family Alt-A, interest-only, and option ARM | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,004 | 1,004 | 1,286 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 853 | 853 | 1,083 | ||
Average Recorded Investment | 880 | 1,159 | 932 | 1,319 | |
Interest Income Recognized | 16 | 21 | 52 | 68 | |
Interest Income Recognized On Cash Basis | 0 | 1 | 1 | 3 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 3,962 | 3,962 | 4,867 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,779 | 3,779 | 4,590 | ||
Impaired Financing Receivable, Related Allowance | (521) | (521) | (682) | ||
Average Recorded Investment | 3,866 | 5,622 | 4,097 | 6,357 | |
Interest Income Recognized | 55 | 72 | 180 | 205 | |
Interest Income Recognized On Cash Basis | 9 | 7 | 18 | 24 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 4,966 | 4,966 | 6,153 | ||
Impaired Financing Receivable, Recorded Investment | 4,632 | 4,632 | 5,673 | ||
Average Recorded Investment | 4,746 | 6,781 | 5,029 | 7,676 | |
Interest Income Recognized | 71 | 93 | 232 | 273 | |
Interest Income Recognized On Cash Basis | 9 | 8 | 19 | 27 | |
Single-family | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 4,215 | 4,215 | 4,871 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,445 | 3,445 | 3,997 | ||
Average Recorded Investment | 3,540 | 4,559 | 3,734 | 4,994 | |
Interest Income Recognized | 79 | 107 | 269 | 348 | |
Interest Income Recognized On Cash Basis | 1 | 4 | 7 | 16 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 37,177 | 37,177 | 43,313 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 36,679 | 36,679 | 42,424 | ||
Impaired Financing Receivable, Related Allowance | (3,326) | (3,326) | (4,369) | ||
Average Recorded Investment | 37,254 | 48,938 | 38,952 | 53,537 | |
Interest Income Recognized | 474 | 601 | 1,596 | 1,851 | |
Interest Income Recognized On Cash Basis | 57 | 61 | 160 | 251 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 41,392 | 41,392 | 48,184 | ||
Impaired Financing Receivable, Recorded Investment | 40,124 | 40,124 | 46,421 | ||
Average Recorded Investment | 40,794 | 53,497 | 42,686 | 58,531 | |
Interest Income Recognized | 553 | 708 | 1,865 | 2,199 | |
Interest Income Recognized On Cash Basis | 58 | 65 | 167 | 267 | |
Multifamily | |||||
With no specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 87 | 87 | 89 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 81 | 81 | 82 | ||
Average Recorded Investment | 81 | 112 | 83 | 132 | |
Interest Income Recognized | 1 | 2 | 3 | 5 | |
Interest Income Recognized On Cash Basis | 1 | 1 | 1 | 2 | |
With specific allowance recorded [Abstract] | |||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 | 3 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | 3 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 3 | 0 | 3 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Interest Income Recognized On Cash Basis | 0 | 0 | 0 | 0 | |
Individually Impaired Mortgage Loans [Abstract] | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 87 | 87 | 92 | ||
Impaired Financing Receivable, Recorded Investment | 81 | 81 | $ 85 | ||
Average Recorded Investment | 81 | 115 | 83 | 135 | |
Interest Income Recognized | 1 | 2 | 3 | 5 | |
Interest Income Recognized On Cash Basis | $ 1 | $ 1 | $ 1 | $ 2 |
Mortgage Loans and Loan Loss_13
Mortgage Loans and Loan Loss Reserves - TDR Activity (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)numberofloans | Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)numberofloans | |
Single-family 20 and 30-year or more, amortizing fixed-rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 5,908 | 7,157 | 19,668 | 37,847 |
Post TDR Recorded Investments | $ 998 | $ 1,091 | $ 3,262 | $ 6,159 |
Single-family 15-year amortizing fixed-rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 693 | 909 | 2,364 | 5,194 |
Post TDR Recorded Investments | $ 69 | $ 83 | $ 230 | $ 514 |
Single-family Adjustable-rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 128 | 197 | 403 | 773 |
Post TDR Recorded Investments | $ 22 | $ 27 | $ 64 | $ 122 |
Single-family Alt-A, interest-only, and option ARM | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 285 | 414 | 1,331 | 2,294 |
Post TDR Recorded Investments | $ 45 | $ 65 | $ 190 | $ 379 |
Single-family | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 7,014 | 8,677 | 23,766 | 46,108 |
Post TDR Recorded Investments | $ 1,134 | $ 1,266 | $ 3,746 | $ 7,174 |
Pre-TDR Recorded Investments | $ 1,100 | $ 1,300 | $ 3,700 | $ 7,200 |
Multifamily | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | numberofloans | 0 | 0 | 0 | 1 |
Post TDR Recorded Investments | $ 0 | $ 0 | $ 0 | $ 15 |
Mortgage Loans and Loan Loss_14
Mortgage Loans and Loan Loss Reserves - Payment Defaults of Completed TDR Modifications (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)numberofloans | Sep. 30, 2019USD ($)numberofloans | Sep. 30, 2018USD ($)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 | 3,256 | 3,584 | 10,533 | 9,671 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 407 | $ 512 | $ 1,237 | $ 1,435 |
Single-family 15-year amortizing fixed-rate | ||||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 96 | 116 | 329 | 435 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 9 | $ 10 | $ 24 | $ 36 |
Single-family Adjustable-rate | ||||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 33 | 53 | 95 | 139 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 3 | $ 9 | $ 10 | $ 21 |
Single-family Alt-A, interest-only, and option ARM | ||||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 178 | 302 | 687 | 827 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 24 | $ 55 | $ 96 | $ 154 |
Single-family | ||||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 3,563 | 4,055 | 11,644 | 11,072 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 443 | $ 586 | $ 1,367 | $ 1,646 |
Multifamily | ||||
Financing Receivable, Modifications and Other Loss Mitigation Activities | ||||
Number of Loans, Modifications, Subsequent Default | numberofloans | 0 | 0 | 0 | 0 |
Post-TDR Recorded Investment, Modifications, Subsequent Default | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantee Activities (Details)
Guarantee Activities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Investments in securities, at fair value | $ 72,982 | $ 69,111 |
Other agency | Freddie Mac resecuritization trust | ||
Guarantor Obligations [Line Items] | ||
Investments in securities, at fair value | $ 17,000 |
Guarantee Activities - Financia
Guarantee Activities - Financial Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||||||
Recognized Liability | $ 4,055 | $ 3,561 | ||||
Reserve for guarantee losses | 4,905 | $ 7,002 | ||||
Payment Guarantee | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | 24,976 | 16,251 | ||||
Recognized Liability | $ 183 | $ 242 | ||||
Maximum Remaining Term | 30 years | 30 years | ||||
Single-family | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | $ 31,526 | $ 23,922 | ||||
Recognized Liability | 497 | 387 | ||||
Reserve for guarantee losses | 4,887 | 6,176 | $ 5,326 | 6,984 | $ 8,433 | $ 8,979 |
Single-family | Securitization activity guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | 24,387 | 17,783 | ||||
Recognized Liability | $ 317 | $ 220 | ||||
Maximum Remaining Term | 40 years | 40 years | ||||
Single-family | Other mortgage-related guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | $ 7,139 | $ 6,139 | ||||
Recognized Liability | $ 180 | $ 167 | ||||
Maximum Remaining Term | 30 years | 30 years | ||||
Multifamily | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | $ 251,975 | $ 231,024 | ||||
Recognized Liability | 3,558 | 3,174 | ||||
Reserve for guarantee losses | 18 | 18 | ||||
Multifamily | Securitization activity guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | 241,853 | 221,245 | ||||
Recognized Liability | $ 3,128 | $ 2,746 | ||||
Maximum Remaining Term | 40 years | 40 years | ||||
Multifamily | Other mortgage-related guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Maximum Exposure | $ 10,122 | $ 9,779 | ||||
Recognized Liability | $ 430 | $ 428 | ||||
Maximum Remaining Term | 35 years | 35 years | ||||
Reserve for guarantee losses | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for guarantee losses | $ 51 | $ 52 | 56 | |||
Reserve for guarantee losses | Single-family | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for guarantee losses | 46 | $ 46 | $ 46 | 48 | $ 49 | $ 48 |
Reserve for guarantee losses | Multifamily | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for guarantee losses | $ 5 | $ 8 |
Credit Enhancements - Mortgage
Credit Enhancements - Mortgage Loan Credit Enhancements (Details) - Single-family - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ACIS transactions | ||
Credit Enhancement [Line Items] | ||
Collateral posted by counterparties on ACIS transactions | $ 2,000 | $ 1,500 |
Mortgage Loan Credit Enhancements | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 130,476 | 116,534 |
Mortgage Loan Credit Enhancements | Primary mortgage insurance | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 410,999 | 378,594 |
Maximum coverage | 105,171 | 96,996 |
Mortgage Loan Credit Enhancements | ACIS transactions | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 869,148 | 807,885 |
Maximum coverage | 10,081 | 9,123 |
Mortgage Loan Credit Enhancements | STACR Trust transactions | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 280,889 | 161,152 |
Maximum coverage | 9,154 | 5,026 |
Mortgage Loan Credit Enhancements | Single family other transactions | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 28,347 | 18,136 |
Maximum coverage | $ 6,070 | $ 5,389 |
Credit Enhancements - Guarantee
Credit Enhancements - Guaranteed Credit Enhancements (Details) - Guarantee Credit Enhancements - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Credit Enhancement [Line Items] | ||
Maximum coverage | $ 44,769 | $ 40,635 |
Single-family | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 5,205 | 4,159 |
Single-family | Non-consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 22,876 | 16,271 |
Maximum coverage | 4,076 | 2,933 |
Single-family | Other | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 1,129 | 1,226 |
Maximum coverage | 1,129 | 1,226 |
Multifamily | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 39,564 | 36,476 |
Multifamily | Non-consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 240,485 | 220,733 |
Maximum coverage | 38,645 | 35,661 |
Multifamily | Other | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 3,204 | 2,349 |
Maximum coverage | $ 919 | $ 815 |
Credit Enhancements - Debt with
Credit Enhancements - Debt with Embedded Credit Enhancements (Details) - Debt with Embedded Credit Enhancements - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Credit Enhancement [Line Items] | ||
Maximum coverage | $ 17,311 | $ 19,045 |
Single-family | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 16,905 | 18,632 |
Single-family | STACR debt notes | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 554,572 | 605,263 |
Maximum coverage | 15,962 | 17,596 |
Single-family | Consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 21,843 | 25,006 |
Maximum coverage | 943 | 1,036 |
Multifamily | ||
Credit Enhancement [Line Items] | ||
Maximum coverage | 406 | 413 |
Multifamily | Consolidated VIE subordination | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 2,700 | 2,700 |
Maximum coverage | 280 | 280 |
Multifamily | SCR debt notes | ||
Credit Enhancement [Line Items] | ||
Total current and protected UPB | 2,523 | 2,667 |
Maximum coverage | $ 126 | $ 133 |
Investments in Securities (Deta
Investments in Securities (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)numberofsecurities | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)numberofsecurities | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt Securities, Held-to-maturity | $ 0 | $ 0 | $ 0 | ||
Net unrealized gains (losses) on trading securities held at balance sheets date | 27 | $ (305) | 310 | $ (951) | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 24,000 | 24,000 | |||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Fair Value | $ 4,100 | $ 4,100 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | numberofsecurities | 150 | 150 |
Investments in Securities - Inv
Investments in Securities - Investments in Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading securities | $ 44,449 | $ 35,548 |
Available-for-sale, at fair value | 28,533 | 33,563 |
Total fair value of investments in securities | $ 72,982 | $ 69,111 |
Investments in Securities - Tra
Investments in Securities - Trading Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Trading Securities [Line Items] | ||
Trading, at fair value | $ 44,449 | $ 35,548 |
Mortage-related securities | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 20,167 | 16,373 |
Freddie Mac | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 12,972 | 13,821 |
Other agency | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 7,194 | 2,551 |
Non-agency | ||
Trading Securities [Line Items] | ||
Trading, at fair value | 1 | 1 |
Non-mortgage-related securities | ||
Trading Securities [Line Items] | ||
Trading, at fair value | $ 24,282 | $ 19,175 |
Investments in Securities - Ava
Investments in Securities - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 27,575 | $ 33,460 |
Gross Unrealized Gains | 1,043 | 640 |
Available-for-sale, at fair value | 28,533 | 33,563 |
Freddie Mac | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,492 | 30,407 |
Gross Unrealized Gains | 707 | 320 |
Available-for-sale, at fair value | 26,119 | 30,199 |
Other agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,005 | 1,675 |
Gross Unrealized Gains | 26 | 38 |
Available-for-sale, at fair value | 1,026 | 1,706 |
Non-agency and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,078 | 1,378 |
Gross Unrealized Gains | 310 | 282 |
Available-for-sale, at fair value | 1,388 | 1,658 |
Other-than-temporary impairment | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | 0 | 0 |
Other-than-temporary impairment | Freddie Mac | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | 0 | 0 |
Other-than-temporary impairment | Other agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | 0 | 0 |
Other-than-temporary impairment | Non-agency and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | 0 | 0 |
Temporary impairment | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (85) | (537) |
Temporary impairment | Freddie Mac | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (80) | (528) |
Temporary impairment | Other agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | (5) | (7) |
Temporary impairment | Non-agency and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | $ 0 | $ (2) |
Investments in Securities - A_2
Investments in Securities - Available-For-Sale Securities in a Gross Unrealized Loss Position (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months Fair Value | $ 5,368 | $ 4,653 |
Less than 12 Months Gross Unrealized Losses | (41) | (40) |
12 Months or Greater Fair Value | 3,482 | 15,395 |
12 Months or Greater Gross Unrealized Losses | (44) | (497) |
Freddie Mac | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months Fair Value | 5,312 | 4,259 |
Less than 12 Months Gross Unrealized Losses | (41) | (38) |
12 Months or Greater Fair Value | 2,951 | 14,751 |
12 Months or Greater Gross Unrealized Losses | (39) | (490) |
Other agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months Fair Value | 56 | 351 |
Less than 12 Months Gross Unrealized Losses | 0 | (1) |
12 Months or Greater Fair Value | 531 | 638 |
12 Months or Greater Gross Unrealized Losses | (5) | (6) |
Non-agency and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months Fair Value | 0 | 43 |
Less than 12 Months Gross Unrealized Losses | 0 | (1) |
12 Months or Greater Fair Value | 0 | 6 |
12 Months or Greater Gross Unrealized Losses | $ 0 | $ (1) |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Debt Securities, Available-for-sale, Realized Gain | $ 68 | $ 69 | $ 169 | $ 544 |
Gross realized losses | (6) | (131) | (40) | (232) |
Debt Securities, Available-for-sale, Realized Loss, Excluding Other-than-temporary Impairment | $ 62 | $ (62) | $ 129 | $ 312 |
Debt Securities and Subordina_3
Debt Securities and Subordinated Borrowings (Details) $ in Billions | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Debt cap under Purchase Agreement for the current year | $ 300 |
Aggregate indebtedness | $ 282.3 |
Debt Securities and Subordina_4
Debt Securities and Subordinated Borrowings - Total Debt, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Net [Abstract] | |||||
Total Debt, Net | $ 2,149,259 | $ 2,149,259 | $ 2,044,950 | ||
Interest Expense [Abstract] | |||||
Interest Expense, Total | 15,130 | $ 14,546 | 46,498 | $ 42,802 | |
Held by consolidated trusts | |||||
Debt Net [Abstract] | |||||
Total Debt, Net | 1,869,308 | 1,869,308 | 1,792,677 | ||
Interest Expense [Abstract] | |||||
Interest Expense, Total | 13,324 | 12,827 | 41,001 | 37,996 | |
Held by Freddie Mac | |||||
Debt Net [Abstract] | |||||
Short-term Debt Balance Net | 94,344 | 94,344 | 51,080 | ||
Long-term Debt Balance, Net | 185,607 | 185,607 | 201,193 | ||
Total Debt, Net | 279,951 | 279,951 | $ 252,273 | ||
Interest Expense [Abstract] | |||||
Interest Expense, Short-term Borrowings | 499 | 361 | 1,419 | 832 | |
Interest Expense, Long-term Debt | 1,307 | 1,358 | 4,078 | 3,974 | |
Interest Expense, Total | $ 1,806 | $ 1,719 | $ 5,497 | $ 4,806 |
Debt Securities and Subordina_5
Debt Securities and Subordinated Borrowings - Debt Securities of Consolidated Trusts Held by Third Parties (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt, Net | $ 2,149,259 | $ 2,044,950 |
Debt instrument recorded at fair value | 4,600 | 5,112 |
Held by consolidated trusts | ||
Debt Instrument [Line Items] | ||
UPB | 1,824,706 | 1,748,738 |
Debt, Net | $ 1,869,308 | $ 1,792,677 |
Effective rate for debt securities of consolidated trusts held by third parties | 2.81% | 3.07% |
Debt instrument recorded at fair value | $ 737 | $ 755 |
Held by consolidated trusts | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | 1,818,473 | 1,744,373 |
Debt, Net | 1,863,015 | 1,788,276 |
Held by consolidated trusts | Multifamily | ||
Debt Instrument [Line Items] | ||
UPB | 6,233 | 4,365 |
Debt, Net | $ 6,293 | $ 4,401 |
Weighted Average Coupon | 3.14% | 4.02% |
Held by consolidated trusts | Single-family 30-year or more, fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 1,487,105 | $ 1,389,113 |
Debt, Net | $ 1,525,505 | $ 1,426,060 |
Weighted Average Coupon | 3.69% | 3.72% |
Held by consolidated trusts | Single-family 20-year fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 69,068 | $ 70,547 |
Debt, Net | $ 70,764 | $ 72,354 |
Weighted Average Coupon | 3.42% | 3.43% |
Held by consolidated trusts | Single-family 15-year fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 224,190 | $ 240,310 |
Debt, Net | $ 227,915 | $ 244,587 |
Weighted Average Coupon | 2.89% | 2.89% |
Held by consolidated trusts | Single-family Adjustable-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 32,837 | $ 38,361 |
Debt, Net | $ 33,474 | $ 39,153 |
Weighted Average Coupon | 3.28% | 3.12% |
Held by consolidated trusts | Single-family Interest-only | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 4,608 | $ 5,322 |
Debt, Net | $ 4,677 | $ 5,386 |
Weighted Average Coupon | 4.72% | 4.41% |
Held by consolidated trusts | FHA/VA | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 665 | $ 720 |
Debt, Net | $ 680 | $ 736 |
Weighted Average Coupon | 4.69% | 4.78% |
Debt Securities and Subordina_6
Debt Securities and Subordinated Borrowings - Other Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Long-term Debt [Abstract] | ||
Debt, net | $ 2,149,259 | $ 2,044,950 |
Debt instrument recorded at fair value | 4,600 | 5,112 |
Held by Freddie Mac | ||
Short-term Debt [Abstract] | ||
Other short-term debt par value | 94,517 | 51,246 |
Other short-term debt carrying amount | $ 94,344 | $ 51,080 |
Other short-term debt weighted average effective rate | 2.20% | 2.28% |
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 187,047 | $ 203,724 |
Other long-term debt carrying amount | $ 185,607 | $ 201,193 |
Other long-term debt weighted average effective rate | 2.74% | 2.58% |
Total par value | $ 281,564 | $ 254,970 |
Debt, net | 279,951 | 252,273 |
Debt instrument recorded at fair value | 3,900 | 4,400 |
Balance Net Of Callable Other Long Term Debt | 105,500 | 107,200 |
Held by Freddie Mac | Other long-term debt | Other long-term debt - 2019 | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | 12,442 | 58,002 |
Other long-term debt carrying amount | $ 12,435 | $ 57,968 |
Other long-term debt weighted average effective rate | 1.63% | 1.54% |
Held by Freddie Mac | Other long-term debt | Other long-term debt - 2020 | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 48,348 | $ 42,296 |
Other long-term debt carrying amount | $ 48,337 | $ 42,275 |
Other long-term debt weighted average effective rate | 2.00% | 1.78% |
Held by Freddie Mac | Other long-term debt | Other long-term debt - 2021 | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 36,669 | $ 30,898 |
Other long-term debt carrying amount | $ 36,669 | $ 30,901 |
Other long-term debt weighted average effective rate | 2.05% | 2.06% |
Held by Freddie Mac | Other long-term debt | Other long-term debt - 2022 | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 26,044 | $ 20,802 |
Other long-term debt carrying amount | $ 26,022 | $ 20,775 |
Other long-term debt weighted average effective rate | 2.34% | 2.46% |
Held by Freddie Mac | Other long-term debt | Other long-term debt - 2023 | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 10,064 | $ 15,929 |
Other long-term debt carrying amount | $ 10,045 | $ 15,906 |
Other long-term debt weighted average effective rate | 2.65% | 3.09% |
Held by Freddie Mac | Other long-term debt | Other long-term debt - Thereafter | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 37,392 | $ 18,068 |
Other long-term debt carrying amount | $ 34,994 | $ 15,579 |
Other long-term debt weighted average effective rate | 3.68% | 5.91% |
Held by Freddie Mac | STACR and SCR debt | ||
Long-term Debt [Abstract] | ||
Other long-term debt par value | $ 16,088 | $ 17,729 |
Other long-term debt carrying amount | $ 16,257 | $ 18,004 |
Other long-term debt weighted average effective rate | 6.03% | 6.04% |
Held by Freddie Mac | Hedging-Related Basis Adjustments | ||
Long-term Debt [Abstract] | ||
Other long-term debt carrying amount | $ 848 | $ (215) |
Held by Freddie Mac | Discount notes and Reference Bills | ||
Short-term Debt [Abstract] | ||
Other short-term debt par value | 42,719 | 28,787 |
Other short-term debt carrying amount | $ 42,550 | $ 28,621 |
Other short-term debt weighted average effective rate | 2.09% | 2.36% |
Held by Freddie Mac | Medium-term notes | ||
Short-term Debt [Abstract] | ||
Other short-term debt par value | $ 43,098 | $ 16,440 |
Other short-term debt carrying amount | $ 43,094 | $ 16,440 |
Other short-term debt weighted average effective rate | 2.34% | 2.10% |
Held by Freddie Mac | Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Abstract] | ||
Other short-term debt par value | $ 8,700 | $ 6,019 |
Other short-term debt carrying amount | $ 8,700 | $ 6,019 |
Other short-term debt weighted average effective rate | 2.06% | 2.40% |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 72 | $ 106 |
Derivatives - Derivative Assets
Derivatives - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional or contractual amount | $ 1,161,284 | $ 876,042 |
Derivative interest receivable and other | 912 | 889 |
Netting adjustments to derivative assets | (7,228) | (6,972) |
Derivative Assets, net | 1,592 | 335 |
Derivative interest payable and other | (872) | (1,096) |
Netting adjustments to derivative liabilities | 6,994 | 4,941 |
Derivative liabilities, net | (355) | (583) |
Commitments | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 195 | 90 |
Other | ||
Derivative [Line Items] | ||
Derivative Assets, net | 208 | 91 |
Derivative liabilities, net | (297) | (317) |
Not Designated as Hedging Instrument, Economic Hedge | ||
Derivative [Line Items] | ||
Notional or contractual amount | 968,893 | 681,491 |
Derivative assets at fair value | 7,756 | 6,148 |
Derivative liabilities at fair value | (4,766) | (2,922) |
Not Designated as Hedging Instrument, Economic Hedge | CDX swaption | ||
Derivative [Line Items] | ||
Notional or contractual amount | 17,300 | 45,900 |
Derivative assets at fair value | 6 | 113 |
Not Designated as Hedging Instrument, Economic Hedge | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional or contractual amount | 469,858 | 321,689 |
Derivative assets at fair value | 2,352 | 1,857 |
Derivative liabilities at fair value | (4,391) | (2,468) |
Not Designated as Hedging Instrument, Economic Hedge | Receive-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 217,377 | 145,386 |
Derivative assets at fair value | 2,346 | 1,380 |
Derivative liabilities at fair value | (10) | (181) |
Not Designated as Hedging Instrument, Economic Hedge | Pay-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 246,557 | 170,899 |
Derivative assets at fair value | 6 | 476 |
Derivative liabilities at fair value | (4,381) | (2,287) |
Not Designated as Hedging Instrument, Economic Hedge | Basis (floating to floating) | ||
Derivative [Line Items] | ||
Notional or contractual amount | 5,924 | 5,404 |
Derivative assets at fair value | 0 | 1 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Option-based | ||
Derivative [Line Items] | ||
Notional or contractual amount | 146,443 | 148,331 |
Derivative assets at fair value | 5,196 | 4,200 |
Derivative liabilities at fair value | (78) | (137) |
Not Designated as Hedging Instrument, Economic Hedge | Call swaptions | Purchased | ||
Derivative [Line Items] | ||
Notional or contractual amount | 61,275 | 43,625 |
Derivative assets at fair value | 3,963 | 2,007 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Call swaptions | Written | ||
Derivative [Line Items] | ||
Notional or contractual amount | 2,500 | 4,400 |
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | (37) | (133) |
Not Designated as Hedging Instrument, Economic Hedge | Put swaptions | Purchased | ||
Derivative [Line Items] | ||
Notional or contractual amount | 63,600 | 88,075 |
Derivative assets at fair value | 512 | 1,565 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Put swaptions | Written | ||
Derivative [Line Items] | ||
Notional or contractual amount | 8,700 | 1,750 |
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | (41) | (4) |
Not Designated as Hedging Instrument, Economic Hedge | Other option-based derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 10,368 | 10,481 |
Derivative assets at fair value | 721 | 628 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Futures | ||
Derivative [Line Items] | ||
Notional or contractual amount | 181,479 | 161,185 |
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 | 152,300 | 36,044 |
Derivative assets at fair value | 195 | 90 |
Derivative liabilities at fair value | (171) | (179) |
Not Designated as Hedging Instrument, Economic Hedge | Credit derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 1,822 | 2,030 |
Derivative assets at fair value | 1 | 0 |
Derivative liabilities at fair value | (23) | (35) |
Not Designated as Hedging Instrument, Economic Hedge | Other | ||
Derivative [Line Items] | ||
Notional or contractual amount | 16,991 | 12,212 |
Derivative assets at fair value | 12 | 1 |
Derivative liabilities at fair value | (103) | (103) |
Designated as Hedging Instrument [Member] | Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional or contractual amount | 192,391 | 194,551 |
Derivative assets at fair value | 152 | 270 |
Derivative liabilities at fair value | (1,711) | (1,506) |
Designated as Hedging Instrument [Member] | Fair Value Hedging | Receive-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 113,425 | 117,038 |
Derivative assets at fair value | 145 | 23 |
Derivative liabilities at fair value | (91) | (935) |
Designated as Hedging Instrument [Member] | Fair Value Hedging | Pay-fixed | ||
Derivative [Line Items] | ||
Notional or contractual amount | 78,966 | 77,513 |
Derivative assets at fair value | 7 | 247 |
Derivative liabilities at fair value | $ (1,620) | $ (571) |
Derivatives - Derivative Gains
Derivatives - Derivative Gains and Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gains (losses) | $ (1,217) | $ 728 | $ (4,912) | $ 2,974 |
Accrual of periodic settlements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gains (losses) | (47) | 27 | (143) | (161) |
Accrual of periodic settlements | Receive-fixed | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gains (losses) | 39 | 39 | (32) | 335 |
Accrual of periodic settlements | Pay-fixed | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gains (losses) | (126) | (50) | (220) | (536) |
Accrual of periodic settlements | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gains (losses) | 40 | 38 | 109 | 40 |
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) | (1,809) | 736 | (4,565) | 2,833 |
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) | 2,060 | (1,004) | 7,580 | (5,080) |
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) | (3,866) | 1,721 | (12,152) | 7,922 |
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) | 19 | 7 | (9) |
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) | 947 | (306) | 1,408 | (1,020) |
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) | 1,398 | (402) | 2,981 | (1,392) |
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) | (109) | 35 | (343) | 76 |
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) | (355) | 136 | (1,406) | 524 |
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) | 19 | (2) | 83 | (23) |
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) | (6) | (73) | 93 | (205) |
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) | (308) | 271 | (1,612) | 1,322 |
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) | (262) | 277 | (1,283) | 728 |
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) | (54) | 69 | (366) | 672 |
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) | 6 | (4) | 1 | (14) |
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) | $ 2 | $ (71) | $ 36 | $ (64) |
Derivatives Derivatives - Gains
Derivatives Derivatives - Gains and Losses on Fair Value Hedge (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income - Mortgage Loans | $ 16,428 | $ 16,787 | $ 51,732 | $ 49,082 |
Interest Expense | (15,130) | (14,546) | (46,498) | (42,802) |
Interest rate risk on held-for-investment mortgage loans | Interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (1,588) | 776 | (5,609) | 3,087 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 1,298 | (755) | 5,691 | (3,441) |
Interest accrual on fair value hedging derivatives for held-for-investment loans | (48) | (96) | (4) | (373) |
Discontinued hedge related basis adjustment amortization | (210) | 38 | (229) | 86 |
Interest rate risk on debt | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 91 | (50) | 1,288 | (728) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (36) | 121 | (1,141) | 931 |
Interest accrual on fair value hedging derivatives for debt | (18) | (96) | (230) | (219) |
Discontinued hedge related basis adjustment amortization | $ 18 | $ (1) | $ 43 | $ (2) |
Derivatives Derivatives - Cumul
Derivatives Derivatives - Cumulative Basis Adjustment due to Fair Value Hedges (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount mortgage loans held-for-investment hedged asset | $ 470,584 | $ 193,547 |
Carrying amount debt hedged liability | (130,653) | (127,215) |
Total basis adjustment cumulative amount for hedged asset | 4,225 | (1,237) |
Total basis adjustment cumulative amount for hedged liability | (848) | 216 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Cumulative Increase (Decrease) | (379) | 0 |
Basis adjustment amount for hedged asset - discontinued hedge | 4,604 | (1,237) |
Basis adjustment amount for hedged liability - discontinued hedge | (114) | (8) |
Total Amount by Amortized Cost Basis Under the Last-of-Layer Method | 266,975 | 0 |
Designated Amount by UPB | $ 20,472 | $ 0 |
Collateral and Offsetting of _3
Collateral and Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Maximum loss after applying netting agreements and collateral | $ 401 | $ 162 |
Commitments | ||
Offsetting Assets [Line Items] | ||
Total exposure on our commitments | 195 | 90 |
OTC derivatives | ||
Offsetting Assets [Line Items] | ||
Maximum loss after applying netting agreements and collateral | 44 | 48 |
Cash pledged to us as collateral that was invested as part of our liquidity and contingency operating portfolio | 3,100 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell [Member] | ||
Offsetting Assets [Line Items] | ||
Securities Held as Collateral, at Fair Value | 27,600 | 20,100 |
Securities purchased under agreements to resell not executed with clearinghouse [Member] | ||
Offsetting Assets [Line Items] | ||
Securities Held as Collateral, at Fair Value | $ 2,200 | $ 2,500 |
Collateral and Offsetting of _4
Collateral and Offsetting of Assets and Liabilities - Offsetting of Financial Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Assets: | ||
Gross Amount Recognized | $ 8,820 | $ 7,307 |
Counterparty netting | (5,374) | (4,544) |
Cash Collateral netting | (1,854) | (2,428) |
Derivative Assets, net | 1,592 | 335 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (1,191) | (173) |
Net Amount | 401 | 162 |
Securities purchased under agreements to resell: | ||
Gross Amount Recognized | 51,187 | 34,771 |
Counterparty netting | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | 51,187 | 34,771 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (51,187) | (34,771) |
Net Amount | 0 | 0 |
Total: | ||
Gross Amount Recognized | 60,007 | 42,078 |
Counterparty netting | (5,374) | (4,544) |
Cash collateral netting | (1,854) | (2,428) |
Net Amount Presented in the Consolidated Balance Sheets | 52,779 | 35,106 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (52,378) | (34,944) |
Net Amount | 401 | 162 |
Other | ||
Derivative Assets: | ||
Gross Amount Recognized | 208 | 91 |
Counterparty netting | 0 | 0 |
Cash Collateral netting | 0 | 0 |
Derivative Assets, net | 208 | 91 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | 208 | 91 |
OTC derivatives | ||
Derivative Assets: | ||
Gross Amount Recognized | 8,583 | 7,213 |
Counterparty netting | (5,373) | (4,544) |
Cash Collateral netting | (1,975) | (2,448) |
Derivative Assets, net | 1,235 | 221 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (1,191) | (173) |
Net Amount | 44 | 48 |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell [Member] | ||
Securities purchased under agreements to resell: | ||
Cash Collateral Netting | 0 | 0 |
Cleared and exchange-traded derivatives | ||
Derivative Assets: | ||
Gross Amount Recognized | 29 | 3 |
Counterparty netting | (1) | 0 |
Cash Collateral netting | 121 | 20 |
Derivative Assets, net | 149 | 23 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | $ 149 | $ 23 |
Collateral and Offsetting of _5
Collateral and Offsetting of Assets and Liabilities - Offsetting of Financial Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Liabilities: | ||
Gross Amount Recognized | $ (7,349) | $ (5,524) |
Counterparty netting | 5,374 | 4,544 |
Cash collateral netting | 1,620 | 397 |
Derivative liabilities, net | (355) | (583) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (355) | (583) |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Gross Amount Recognized | (8,700) | (6,019) |
Counterparty netting | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | (8,700) | (6,019) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 8,700 | 6,019 |
Net Amount | 0 | 0 |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Gross Amount Recognized | (16,049) | (11,543) |
Counterparty netting | 5,374 | 4,544 |
Cash collateral netting | (1,620) | (397) |
Net Amount Presented in the Consolidated Balance Sheets | (9,055) | (6,602) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 8,700 | 6,019 |
Net Amount | (355) | (583) |
Other | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (297) | (317) |
Counterparty netting | 0 | 0 |
Cash collateral netting | 0 | 0 |
Derivative liabilities, net | (297) | (317) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (297) | (317) |
OTC derivatives | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (7,029) | (4,963) |
Counterparty netting | 5,373 | 4,544 |
Cash collateral netting | 1,601 | 296 |
Derivative liabilities, net | (55) | (123) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (55) | (123) |
Cleared and exchange-traded derivatives | ||
Derivative Liabilities: | ||
Gross Amount Recognized | (23) | (244) |
Counterparty netting | 1 | 0 |
Cash collateral netting | 19 | 101 |
Derivative liabilities, net | (3) | (143) |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | (3) | (143) |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Aggregate fair value of securities posted | 4,000 | 2,500 |
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 _6
Collateral and Offsetting of Assets and Liabilities - Collateral in the Form of Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | $ 12,917 | $ 8,802 |
Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 3,975 | 2,522 |
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 | 8,713 | 6,027 |
Other | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 229 | 253 |
Cash and Cash Equivalents [Member] | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 284 | 2,595 |
Cash and Cash Equivalents [Member] | Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 0 | 0 |
Cash and Cash Equivalents [Member] | 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 | 284 | 2,595 |
Cash and Cash Equivalents [Member] | Other | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 0 | 0 |
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 | 916 | 541 |
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 | 747 | 362 |
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 | 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 | 169 | 179 |
Available-for-sale Securities [Member] | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 3 | 1 |
Available-for-sale Securities [Member] | Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 0 | 0 |
Available-for-sale Securities [Member] | 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 | 0 |
Available-for-sale Securities [Member] | Other | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 3 | 1 |
Trading securities | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 11,714 | 5,665 |
Trading securities | Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 3,228 | 2,160 |
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 | 8,429 | 3,432 |
Trading securities | Other | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | $ 57 | $ 73 |
Collateral and Offsetting of _7
Collateral and Offsetting of Assets and Liabilities - Underlying Collateral Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | $ 12,917 | $ 8,802 |
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 | 8,713 | $ 6,027 |
Securities Sold under Agreements to Repurchase | Overnight and continuous | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 2,684 | |
Securities Sold under Agreements to Repurchase | 30 days or less | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 5,112 | |
Securities Sold under Agreements to Repurchase | After 30 days through 90 days | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | 917 | |
Securities Sold under Agreements to Repurchase | Greater than 90 days | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Securities pledged with the ability for the secured party to repledge | $ 0 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Stockholders Equity Text [Line Items] | ||||||||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | ||||||
Cash flow hedge relationships | $ (258,000,000) | $ (300,000,000) | $ (258,000,000) | $ (300,000,000) | $ (315,000,000) | |||||
Cash flow hedge gain (loss) to be reclassified over the next 12 months | $ (49,000,000) | |||||||||
Maximum remaining length of time hedged in cash flow hedge | 14 years | |||||||||
Applicable capital reserve amount prior to July 1, 2019 | $ 3,000,000,000 | 3,000,000,000 | ||||||||
Applicable capital reserve amount from July 1, 2019 and thereafter | 20,000,000,000 | 20,000,000,000 | ||||||||
GAAP net worth (deficit) | 6,674,000,000 | $ 4,826,000,000 | $ 5,559,000,000 | 6,674,000,000 | 5,559,000,000 | 4,477,000,000 | $ 4,585,000,000 | $ (312,000,000) | ||
Cash dividends paid on senior preferred stock | 0 | 1,700,000,000 | $ 1,500,000,000 | 3,142,000,000 | $ 1,585,000,000 | |||||
Expected draw request from Treasury | 0 | 0 | ||||||||
Dividend Requirement Amount Under Purchase Agreement | 0 | 0 | ||||||||
Aggregate Payment of Dividend to Treasury Under Purchase Agreement | 119,700,000,000 | 119,700,000,000 | ||||||||
Senior preferred stock, at redemption value | 77,474,000,000 | 75,600,000,000 | 77,474,000,000 | $ 75,648,000,000 | ||||||
Preference liquidation maximum increase | 17,000,000,000 | $ 17,000,000,000 | ||||||||
Net worth increase | $ 1,800,000,000 | $ 1,800,000,000 | ||||||||
Stock options outstanding | 0 | 0 | 0 | 0 | ||||||
Common dividends declared | $ 0 | |||||||||
Common shares or non-cumulative preferred stock repurchased | $ 0 | |||||||||
Common shares or non-cumulative preferred stock issued | $ 0 | |||||||||
Dividends declared on preferred stock | 0 | |||||||||
Dividends paid on preferred stock | $ 0 | |||||||||
Subsequent Event [Member] | ||||||||||
Stockholders Equity Text [Line Items] | ||||||||||
Senior preferred stock, at redemption value | $ 79,300,000,000 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Share - Changes in AOCI by Component, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 4,826 | $ 4,585 | $ 4,477 | $ (312) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 139 | (147) | 717 | (991) |
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | 6,674 | 5,559 | 6,674 | 5,559 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 443 | (366) | (135) | 389 |
Other comprehensive income (loss) before reclassifications | 774 | (822) | ||
Amounts reclassified from accumulated other comprehensive income | (57) | (169) | ||
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 139 | (147) | 717 | (991) |
Cumulative effect of change in accounting principle | 89 | |||
Ending balance | 582 | (513) | 582 | (513) |
AOCI related to available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 83 | 662 | ||
Other comprehensive income (loss) before reclassifications | 776 | (821) | ||
Amounts reclassified from accumulated other comprehensive income | (102) | (244) | ||
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 674 | (1,065) | ||
Cumulative effect of change in accounting principle | 143 | |||
Ending balance | 757 | (260) | 757 | (260) |
AOCI related to cash flow hedge relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (315) | (356) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 57 | 87 | ||
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 57 | 87 | ||
Cumulative effect of change in accounting principle | (73) | |||
Ending balance | (258) | (342) | (258) | (342) |
AOCI related to defined benefit plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 97 | 83 | ||
Other comprehensive income (loss) before reclassifications | (2) | (1) | ||
Amounts reclassified from accumulated other comprehensive income | (12) | (12) | ||
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (14) | (13) | ||
Cumulative effect of change in accounting principle | 19 | |||
Ending balance | $ 83 | $ 89 | $ 83 | $ 89 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Share - Reclassifications from AOCI to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment securities gains (losses) | $ 164 | $ (443) | $ 728 | $ (1,024) |
Interest expense | (15,130) | (14,546) | (46,498) | (42,802) |
Salaries and employee benefits | (333) | (301) | (983) | (890) |
Income before income tax (expense) benefit | 2,136 | 3,262 | 5,799 | 10,081 |
Income tax (expense) benefit | (427) | (556) | (1,177) | (1,946) |
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Held by Freddie Mac | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (1,806) | (1,719) | (5,497) | (4,806) |
Total reclassifications in the period | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | 34 | (72) | 57 | 169 |
AOCI related to available-for-sale securities | Total reclassifications in the period | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment securities gains (losses) | 62 | (64) | 129 | 309 |
Income tax (expense) benefit | (13) | 13 | (27) | (65) |
Net income (loss) | 49 | (51) | 102 | 244 |
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 | 5 | 6 | 15 | 19 |
Net income (loss) | (19) | (25) | (57) | (87) |
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 | (24) | (31) | (72) | (106) |
AOCI related to defined benefit plans | Total reclassifications in the period | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | 5 | 5 | 15 | 15 |
Income tax (expense) benefit | (1) | (1) | (3) | (3) |
Net income (loss) | $ 4 | $ 4 | $ 12 | $ 12 |
Stockholders' Equity and Earn_6
Stockholders' Equity and Earnings per Share - Senior Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Thousands | Mar. 30, 2018 | 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 | Sep. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 08, 2008 |
Class of Stock [Line Items] | ||||||||||||||||||
Increase in liquidation preference | $ 312,000,000 | |||||||||||||||||
Aggregate liquidation preference on senior preferred stock | $ 77,474,000,000 | $ 75,600,000,000 | $ 75,648,000,000 | |||||||||||||||
Senior Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares Authorized | 1,000 | |||||||||||||||||
Shares Outstanding | 1,000 | |||||||||||||||||
Total Par Value | $ 1,000,000 | |||||||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | |||||||||||||||||
Initial Liquidation Preference Price Per Share | $ 1,000 | |||||||||||||||||
Increase in Senior Preferred Stock | $ 3,000,000,000 | |||||||||||||||||
Increase in liquidation preference due to net worth increase | $ 1,826,000,000 | |||||||||||||||||
Increase in liquidation preference | $ 312,000,000 | $ 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 | $ 77,474,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 427,000,000 | $ 556,000,000 | $ 1,177,000,000 | $ 1,946,000,000 | |
Effective Tax Rate | 20.00% | 17.00% | 20.30% | 19.30% | |
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Deferred Tax Assets, Net | $ 5,800,000,000 | $ 5,800,000,000 | $ 6,900,000,000 | ||
Deferred Tax Assets, Valuation Allowance | 37,000,000 | 37,000,000 | |||
Unrecognized Tax Benefits | $ 0 | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Segment Reporting - Segment Ear
Segment Reporting - Segment Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 1,709 | $ 2,706 | $ 4,622 | $ 8,135 |
Comprehensive income (loss) | 1,848 | 2,559 | 5,339 | 7,144 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 | 0 |
Single-family Guarantee | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 1,250 | 1,183 | 2,945 | 2,884 |
Comprehensive income (loss) | 1,247 | 1,181 | 2,936 | 2,876 |
Multifamily | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 581 | 549 | 1,294 | 1,572 |
Comprehensive income (loss) | 591 | 505 | 1,426 | 1,436 |
Capital Markets | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (122) | 974 | 383 | 3,679 |
Comprehensive income (loss) | 10 | 873 | 977 | 2,832 |
Operating segments and All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Comprehensive income (loss) | $ 1,848 | $ 2,559 | $ 5,339 | $ 7,144 |
Segment Reporting - Segment E_2
Segment Reporting - Segment Earnings and Reconciliation to GAAP Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | $ 2,410 | $ 3,257 | $ 8,490 | $ 9,278 |
Benefit (provision) for credit losses | 179 | 380 | 474 | 377 |
Non-interest income (loss) | ||||
Guarantee fee income | 231 | 209 | 670 | 603 |
Mortgage loans gains (losses) | 1,702 | 94 | 4,174 | 233 |
Investment securities gains (losses) | 164 | (443) | 728 | (1,024) |
Debt gains (losses) | (56) | 158 | 8 | 445 |
Derivative gains (losses) | (1,217) | 728 | (4,912) | 2,974 |
Other income (loss) | 146 | 79 | 389 | 648 |
Non-interest expense | ||||
Administrative expense | (620) | (569) | (1,817) | (1,647) |
REO operations (expense) income | (58) | (38) | (172) | (87) |
Other non interest (expense) income | (745) | (593) | (2,233) | (1,719) |
Income tax (expense) benefit | (427) | (556) | (1,177) | (1,946) |
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Changes in unrealized gains (losses) related to available-for-sale securities | 124 | (169) | 674 | (1,065) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 19 | 25 | 57 | 87 |
Changes in defined benefit plans | (4) | (3) | (14) | (13) |
Total other comprehensive income (loss), net of taxes | 139 | (147) | 717 | (991) |
Comprehensive income (loss) | 1,848 | 2,559 | 5,339 | 7,144 |
All Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 0 | 0 | 0 | 0 |
Benefit (provision) for credit losses | 0 | 0 | 0 | 0 |
Non-interest income (loss) | ||||
Guarantee fee income | 0 | 0 | 0 | 0 |
Mortgage loans gains (losses) | 0 | 0 | 0 | 0 |
Investment securities gains (losses) | 0 | 0 | 0 | 0 |
Debt gains (losses) | 0 | 0 | 0 | 0 |
Derivative gains (losses) | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Non-interest expense | ||||
Administrative expense | 0 | 0 | 0 | 0 |
REO operations (expense) income | 0 | 0 | 0 | 0 |
Other non interest (expense) income | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to available-for-sale securities | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 | 0 |
Changes in defined benefit plans | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 | 0 |
Reclassifications | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 1,621 | 2,132 | 5,683 | 6,022 |
Benefit (provision) for credit losses | 46 | 173 | 256 | (9) |
Non-interest income (loss) | ||||
Guarantee fee income | (2,077) | (1,677) | (5,598) | (4,938) |
Mortgage loans gains (losses) | 615 | 111 | 1,265 | 466 |
Investment securities gains (losses) | (3) | (10) | (11) | (147) |
Debt gains (losses) | (21) | (4) | (32) | (25) |
Derivative gains (losses) | 14 | (49) | (120) | (281) |
Other income (loss) | (27) | (514) | (937) | (613) |
Non-interest expense | ||||
Administrative expense | 0 | 0 | 0 | 0 |
REO operations (expense) income | 3 | 4 | 13 | 13 |
Other non interest (expense) income | (171) | (166) | (519) | (488) |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to available-for-sale securities | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 | 0 |
Changes in defined benefit plans | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 | 0 |
Single-family Guarantee | Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 0 | 0 | 0 | 0 |
Benefit (provision) for credit losses | 134 | 205 | 221 | 366 |
Non-interest income (loss) | ||||
Guarantee fee income | 2,075 | 1,676 | 5,597 | 4,932 |
Mortgage loans gains (losses) | 0 | 0 | 0 | 0 |
Investment securities gains (losses) | 0 | 0 | 0 | 0 |
Debt gains (losses) | 51 | 20 | 113 | 80 |
Derivative gains (losses) | 0 | (25) | (47) | (37) |
Other income (loss) | 318 | 387 | 836 | 592 |
Non-interest expense | ||||
Administrative expense | (399) | (371) | (1,173) | (1,070) |
REO operations (expense) income | (61) | (42) | (185) | (101) |
Other non interest (expense) income | (554) | (413) | (1,667) | (1,192) |
Income tax (expense) benefit | (314) | (254) | (750) | (686) |
Net income (loss) | 1,250 | 1,183 | 2,945 | 2,884 |
Changes in unrealized gains (losses) related to available-for-sale securities | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 | 0 |
Changes in defined benefit plans | (3) | (2) | (9) | (8) |
Total other comprehensive income (loss), net of taxes | (3) | (2) | (9) | (8) |
Comprehensive income (loss) | 1,247 | 1,181 | 2,936 | 2,876 |
Multifamily | Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 292 | 280 | 805 | 846 |
Benefit (provision) for credit losses | (1) | 2 | (3) | 20 |
Non-interest income (loss) | ||||
Guarantee fee income | 233 | 210 | 671 | 609 |
Mortgage loans gains (losses) | 1,087 | (17) | 2,909 | (233) |
Investment securities gains (losses) | 31 | (97) | 41 | (353) |
Debt gains (losses) | (69) | 5 | (46) | 22 |
Derivative gains (losses) | (793) | 375 | (2,650) | 1,254 |
Other income (loss) | 89 | 27 | 292 | 128 |
Non-interest expense | ||||
Administrative expense | (125) | (109) | (357) | (315) |
REO operations (expense) income | 0 | 0 | 0 | 1 |
Other non interest (expense) income | (17) | (14) | (38) | (33) |
Income tax (expense) benefit | (146) | (113) | (330) | (374) |
Net income (loss) | 581 | 549 | 1,294 | 1,572 |
Changes in unrealized gains (losses) related to available-for-sale securities | 10 | (44) | 134 | (134) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 0 | 0 | 0 | 0 |
Changes in defined benefit plans | 0 | 0 | (2) | (2) |
Total other comprehensive income (loss), net of taxes | 10 | (44) | 132 | (136) |
Comprehensive income (loss) | 591 | 505 | 1,426 | 1,436 |
Capital Markets | Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 497 | 845 | 2,002 | 2,410 |
Benefit (provision) for credit losses | 0 | 0 | 0 | 0 |
Non-interest income (loss) | ||||
Guarantee fee income | 0 | 0 | 0 | 0 |
Mortgage loans gains (losses) | 0 | 0 | 0 | 0 |
Investment securities gains (losses) | 136 | (336) | 698 | (524) |
Debt gains (losses) | (17) | 137 | (27) | 368 |
Derivative gains (losses) | (438) | 427 | (2,095) | 2,038 |
Other income (loss) | (234) | 179 | 198 | 541 |
Non-interest expense | ||||
Administrative expense | (96) | (89) | (287) | (262) |
REO operations (expense) income | 0 | 0 | 0 | 0 |
Other non interest (expense) income | (3) | 0 | (9) | (6) |
Income tax (expense) benefit | 33 | (189) | (97) | (886) |
Net income (loss) | (122) | 974 | 383 | 3,679 |
Changes in unrealized gains (losses) related to available-for-sale securities | 114 | (125) | 540 | (931) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 19 | 25 | 57 | 87 |
Changes in defined benefit plans | (1) | (1) | (3) | (3) |
Total other comprehensive income (loss), net of taxes | 132 | (101) | 594 | (847) |
Comprehensive income (loss) | 10 | 873 | 977 | 2,832 |
Operating segments and All Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net interest Income | 789 | 1,125 | 2,807 | 3,256 |
Benefit (provision) for credit losses | 133 | 207 | 218 | 386 |
Non-interest income (loss) | ||||
Guarantee fee income | 2,308 | 1,886 | 6,268 | 5,541 |
Mortgage loans gains (losses) | 1,087 | (17) | 2,909 | (233) |
Investment securities gains (losses) | 167 | (433) | 739 | (877) |
Debt gains (losses) | (35) | 162 | 40 | 470 |
Derivative gains (losses) | (1,231) | 777 | (4,792) | 3,255 |
Other income (loss) | 173 | 593 | 1,326 | 1,261 |
Non-interest expense | ||||
Administrative expense | (620) | (569) | (1,817) | (1,647) |
REO operations (expense) income | (61) | (42) | (185) | (100) |
Other non interest (expense) income | (574) | (427) | (1,714) | (1,231) |
Income tax (expense) benefit | (427) | (556) | (1,177) | (1,946) |
Net income (loss) | 1,709 | 2,706 | 4,622 | 8,135 |
Changes in unrealized gains (losses) related to available-for-sale securities | 124 | (169) | 674 | (1,065) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 19 | 25 | 57 | 87 |
Changes in defined benefit plans | (4) | (3) | (14) | (13) |
Total other comprehensive income (loss), net of taxes | 139 | (147) | 717 | (991) |
Comprehensive income (loss) | $ 1,848 | $ 2,559 | $ 5,339 | $ 7,144 |
Concentration of Credit and O_3
Concentration of Credit and Other Risks (Details) - USD ($) $ in Billions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Unpaid principal balance related to single-family credit guarantee portfolio | $ 2,000 | $ 1,900 | |
Securities purchased under agreements to resell used to provide financing to investors | $ 2.2 | $ 2.5 | |
Single-family UPB | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | |
Top five non-depository seller | Single-family loan purchase volume | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 26.00% | 22.00% | |
Five largest non-depository servicers | Single-family UPB | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 16.00% | |
Mortgage Insurers | |||
Concentration Risk [Line Items] | |||
Unpaid principal balance of single family credit guarantee portfolio With mortgage insurance coverage | $ 411 | ||
Credit protection coverage from mortgage insurers for single family credit guarantee portfolio | 105.2 | ||
Cash proceeds received from mortgage insurers | 0.1 | $ 0.2 | |
Receivables outstanding from mortgage Insurers | 0.1 | $ 0.1 | |
Receivables outstanding, net of reserves, from mortgage insurers | 0.1 | 0.1 | |
Amount of cumulative unpaid deferred payment obligation | 0.5 | 0.5 | |
Cash And Other Investment Counterparties | |||
Concentration Risk [Line Items] | |||
Cash and other non-mortgage investments | $ 89.6 | $ 63.1 |
Concentration of Credit and O_4
Concentration of Credit and Other Risks - Concentration of Credit Risk - Single-Family Credit Guarantee Portfolio (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.61% | 0.69% | |
West | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.35% | 0.38% | |
Northeast | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.86% | 0.96% | |
North Central | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.60% | 0.63% | |
Southeast | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.72% | 0.90% | |
Southwest | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.51% | 0.57% | |
FLORIDA | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.75% | 1.01% | |
NEW YORK | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 1.20% | 1.37% | |
NEW JERSEY | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 1.07% | 1.24% | |
ILLINOIS | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.82% | 0.86% | |
CALIFORNIA | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.33% | 0.35% | |
All Other | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.57% | 0.64% | |
Core single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 0.24% | 0.22% | |
Legacy and relief refinance single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Serious delinquency rate | 1.77% | 1.93% | |
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 | 24.00% | 24.00% | |
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 | 14.00% | 14.00% | |
Single-family UPB | FLORIDA | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 6.00% | 6.00% | |
Single-family UPB | NEW YORK | |||
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 | ILLINOIS | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 4.00% | 5.00% | |
Single-family UPB | CALIFORNIA | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 18.00% | |
Single-family UPB | All Other | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 64.00% | 63.00% | |
Single-family UPB | Core single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 84.00% | 82.00% | |
Single-family UPB | Legacy and relief refinance single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 18.00% | |
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 | 12.00% | 17.00% | |
Single-family Credit Losses | Northeast | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 40.00% | 40.00% | |
Single-family Credit Losses | North Central | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 18.00% | |
Single-family Credit Losses | Southeast | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 22.00% | 18.00% | |
Single-family Credit Losses | Southwest | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 7.00% | 7.00% | |
Single-family Credit Losses | FLORIDA | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 10.00% | |
Single-family Credit Losses | NEW YORK | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 12.00% | |
Single-family Credit Losses | NEW JERSEY | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Single-family Credit Losses | ILLINOIS | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 9.00% | |
Single-family Credit Losses | CALIFORNIA | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 7.00% | 10.00% | |
Single-family Credit Losses | All Other | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 47.00% | 49.00% | |
Single-family Credit Losses | Core single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 12.00% | |
Single-family Credit Losses | Legacy and relief refinance single-family loan portfolio | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 84.00% | 88.00% |
Concentration of Credit and O_5
Concentration of Credit and Other Risks - Certain Higher-Risk Categories in the Single-Family Credit Guarantee Portfolio (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.61% | 0.69% |
Interest-only | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 2.72% | 3.43% |
Alt-A | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 3.75% | 4.13% |
Original LTV ratio greater than 90% | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 0.92% | 1.04% |
Lower credit scores at origination (less than 620) | ||
Concentration Risk [Line Items] | ||
Serious delinquency rate | 4.24% | 4.59% |
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% | 1.00% |
Single-family UPB | Original LTV ratio greater than 90% | ||
Concentration Risk [Line Items] | ||
Percentage of Portfolio | 18.00% | 18.00% |
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 O_6
Concentration of Credit and Other Risks - Seller Concentration (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Top ten Single-family sellers | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 56.00% | 49.00% |
JPMorgan Chase Bank, National Association | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 5.00% |
Wells Fargo Bank, N.A. | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 7.00% | 12.00% |
Other top 10 sellers | Single-family loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 33.00% | 32.00% |
Top ten multifamily sellers | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 79.00% | 78.00% |
CBRE Capital Markets, Inc. | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 19.00% |
Berkadia Commercial Mortgage LLC | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 12.00% |
Other top 10 sellers | Multifamily loan purchase volume | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 48.00% | 47.00% |
Concentration of Credit and O_7
Concentration of Credit and Other Risks - Servicer Concentration (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Single-family loan serviced | Top ten Single-family servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 56.00% | 56.00% |
Single-family loan serviced | Wells Fargo Bank, N.A. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 17.00% |
Single-family loan serviced | JPMorgan Chase Bank. N.A. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 8.00% |
Single-family loan serviced | Other top 10 sellers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 31.00% | 31.00% |
Multifamily loan serviced | Top ten multifamily servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 77.00% | 75.00% |
Multifamily loan serviced | Wells Fargo Bank, N.A. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 14.00% |
Multifamily loan serviced | Berkadia Commercial Mortgage LLC | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 11.00% |
Multifamily loan serviced | CBRE Capital Markets, Inc | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 14.00% |
Multifamily loan serviced | Other top 10 servicers | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 40.00% | 36.00% |
Concentration of Credit and O_8
Concentration of Credit and Other Risks - Mortgage Insurer Concentration (Details) - Mortgage insurance coverage | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Arch Mortgage Insurance Company | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 22.00% | 24.00% |
Radian Guaranty Inc. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 20.00% | 20.00% |
Mortgage Guaranty Insurance Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 19.00% |
Genworth Mortgage Insurance Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 14.00% |
Essent Guaranty, Inc. | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 14.00% |
Total | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 90.00% | 91.00% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | $ 28,533 | $ 33,563 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 21,538 | 23,106 |
Derivative Assets Net [Abstract] | ||
Derivative Assets, net | 1,592 | 335 |
Other Assets [Abstract] | ||
Total Other Assets | 4,590 | 3,929 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 4,600 | 5,112 |
Derivative Liabilities Net [Abstract] | ||
Derivative Liabilities | 355 | 583 |
Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 737 | 755 |
Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 3,900 | 4,400 |
Other | ||
Derivative Assets Net [Abstract] | ||
Derivative Assets, net | 208 | 91 |
Derivative Liabilities Net [Abstract] | ||
Derivative Liabilities | 297 | 317 |
Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 26,119 | 30,199 |
Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 1,026 | 1,706 |
Non-agency and other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 1,388 | 1,658 |
Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 28,533 | 33,563 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 44,449 | 35,548 |
Total investments in securities | 72,982 | 69,111 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 21,538 | 23,106 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 7,908 | 6,418 |
Netting Adjustment | (6,316) | (6,083) |
Derivative Assets, net | 1,592 | 335 |
Other Assets [Abstract] | ||
Guarantee Assets | 4,225 | 3,633 |
Non-derivative held-for-sale purchase commitments, at fair value | 223 | 159 |
All Other Assets Fair Value Disclosure | 142 | 137 |
Total Other Assets | 4,590 | 3,929 |
Total Assets at Fair value | 100,702 | 96,481 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 6,477 | 4,428 |
Netting Adjustment | (6,122) | (3,845) |
Derivative Liabilities | 355 | 583 |
Non Derivative HFS Purchase Commitment Liabilities | 1 | 17 |
All Other Liabilities Fair Value Disclosure | 2 | |
Total liabilities carried at fair value on a recurring basis | 4,958 | 5,712 |
Fair Value, Measurements, Recurring | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 737 | 755 |
Fair Value, Measurements, Recurring | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 3,863 | 4,357 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 2,504 | 2,127 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 6,102 | 3,974 |
Fair Value, Measurements, Recurring | Option-based derivatives | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 5,196 | 4,200 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 78 | 137 |
Fair Value, Measurements, Recurring | Other | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 208 | 91 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 297 | 317 |
Fair Value, Measurements, Recurring | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 20,167 | 16,373 |
Fair Value, Measurements, Recurring | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 26,119 | 30,199 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 12,972 | 13,821 |
Fair Value, Measurements, Recurring | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 1,026 | 1,706 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 7,194 | 2,551 |
Fair Value, Measurements, Recurring | Non-agency and other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 1,388 | 1,658 |
Fair Value, Measurements, Recurring | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 1 | 1 |
Fair Value, Measurements, Recurring | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 24,282 | 19,175 |
Fair Value, Measurements, Recurring | Level 1 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 0 | 0 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 21,952 | 15,885 |
Total investments in securities | 21,952 | 15,885 |
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 held-for-sale purchase commitments, at fair value | 0 | 0 |
All Other Assets Fair Value Disclosure | 0 | 0 |
Total Other Assets | 0 | 0 |
Total Assets at Fair value | 21,952 | 15,885 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Non Derivative HFS Purchase Commitment Liabilities | 0 | 0 |
All Other Liabilities Fair Value Disclosure | 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 instrument recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest-rate swaps | ||
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 | ||
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 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, at fair value | 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, at fair value | 0 | 0 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-agency and other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 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 | 21,952 | 15,885 |
Fair Value, Measurements, Recurring | Level 2 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 24,982 | 27,788 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 19,561 | 16,369 |
Total investments in securities | 44,543 | 44,157 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 21,538 | 23,106 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 7,892 | 6,417 |
Derivative Assets, net | 7,892 | 6,417 |
Other Assets [Abstract] | ||
Guarantee Assets | 0 | 0 |
Non-derivative held-for-sale purchase commitments, at fair value | 223 | 159 |
All Other Assets Fair Value Disclosure | 0 | 0 |
Total Other Assets | 223 | 159 |
Total Assets at Fair value | 74,196 | 73,839 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 6,437 | 4,336 |
Derivative Liabilities | 6,437 | 4,336 |
Non Derivative HFS Purchase Commitment Liabilities | 1 | 17 |
All Other Liabilities Fair Value Disclosure | 0 | |
Total liabilities carried at fair value on a recurring basis | 10,175 | 8,603 |
Fair Value, Measurements, Recurring | Level 2 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 4 | 27 |
Fair Value, Measurements, Recurring | Level 2 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 3,733 | 4,223 |
Fair Value, Measurements, Recurring | Level 2 | Interest-rate swaps | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 2,504 | 2,127 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 6,102 | 3,974 |
Fair Value, Measurements, Recurring | Level 2 | Option-based derivatives | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 5,196 | 4,200 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 78 | 137 |
Fair Value, Measurements, Recurring | Level 2 | Other | ||
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 192 | 90 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 257 | 225 |
Fair Value, Measurements, Recurring | Level 2 | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 17,231 | 13,079 |
Fair Value, Measurements, Recurring | Level 2 | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 23,969 | 26,102 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 10,042 | 10,535 |
Fair Value, Measurements, Recurring | Level 2 | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 992 | 1,668 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 7,189 | 2,544 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency and other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 21 | 18 |
Fair Value, Measurements, Recurring | Level 2 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,330 | 3,290 |
Fair Value, Measurements, Recurring | Level 3 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 3,551 | 5,775 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,936 | 3,294 |
Total investments in securities | 6,487 | 9,069 |
Mortgage Loans [Abstract] | ||
Mortgage loans, held for sale, at fair value | 0 | 0 |
Derivative Assets Net [Abstract] | ||
Derivative assets at fair value | 16 | 1 |
Derivative Assets, net | 16 | 1 |
Other Assets [Abstract] | ||
Guarantee Assets | 4,225 | 3,633 |
Non-derivative held-for-sale purchase commitments, at fair value | 0 | 0 |
All Other Assets Fair Value Disclosure | 142 | 137 |
Total Other Assets | 4,367 | 3,770 |
Total Assets at Fair value | 10,870 | 12,840 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 40 | 92 |
Derivative Liabilities | 40 | 92 |
Non Derivative HFS Purchase Commitment Liabilities | 0 | 0 |
All Other Liabilities Fair Value Disclosure | 2 | |
Total liabilities carried at fair value on a recurring basis | 905 | 954 |
Fair Value, Measurements, Recurring | Level 3 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 733 | 728 |
Fair Value, Measurements, Recurring | Level 3 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instrument recorded at fair value | 130 | 134 |
Fair Value, Measurements, Recurring | Level 3 | Interest-rate swaps | ||
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 | ||
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 Assets Net [Abstract] | ||
Derivative assets at fair value | 16 | 1 |
Derivative Liabilities Net [Abstract] | ||
Derivative liabilities at fair value | 40 | 92 |
Fair Value, Measurements, Recurring | Level 3 | Mortage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,936 | 3,294 |
Fair Value, Measurements, Recurring | Level 3 | Freddie Mac | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 2,150 | 4,097 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,930 | 3,286 |
Fair Value, Measurements, Recurring | Level 3 | Other agency | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 34 | 38 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 5 | 7 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency and other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale, at fair value | 1,367 | 1,640 |
Fair Value, Measurements, Recurring | Level 3 | All other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Non-mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt | Held by consolidated trusts | ||||
Liabilities: | ||||
Begining Balance | $ 733 | $ 629 | $ 728 | $ 630 |
Included in Earnings | 0 | (1) | 5 | (2) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized (gains) losses | 0 | (1) | 5 | (2) |
Purchases | 0 | 0 | 0 | 0 |
Issues | 0 | 100 | 0 | 100 |
Sales | 0 | 0 | 0 | 0 |
Settlements, Net | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 733 | 728 | 733 | 728 |
Unrealized (Gains) Losses Still Held - Liabilities | 0 | (1) | 5 | (2) |
Debt | Held by Freddie Mac | ||||
Liabilities: | ||||
Begining Balance | 129 | 135 | 134 | 137 |
Included in Earnings | 0 | 0 | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized (gains) losses | 0 | 0 | 0 | 0 |
Purchases | 2 | 0 | 0 | 0 |
Issues | 0 | 0 | 2 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements, Net | (1) | (1) | (6) | (3) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 130 | 134 | 130 | 134 |
Unrealized (Gains) Losses Still Held - Liabilities | 0 | 0 | 0 | 0 |
Net Derivatives | ||||
Net Derivative Liability | ||||
Beginning Balance | 40 | 42 | 91 | 57 |
Included in Earnings | (8) | 8 | (54) | 28 |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized (gains) losses | (8) | 8 | (54) | 28 |
Purchases | 0 | 0 | 0 | 0 |
Issues | 0 | 41 | 0 | 15 |
Sales | 0 | 0 | 0 | 0 |
Settlements, Net | (8) | (4) | (13) | (13) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 24 | 87 | 24 | 87 |
Unrealized (Gains) Losses Still Held - Net Derivative Liability | (13) | 3 | (66) | 15 |
All Other Liabilities | ||||
Liabilities: | ||||
Begining Balance | 0 | 0 | ||
Included in Earnings | 2 | 0 | ||
Included in Other Comprehensive Income | 0 | 0 | ||
Total realized and unrealized (gains) losses | 2 | 0 | ||
Purchases | 2 | 4 | ||
Issues | 0 | 0 | ||
Sales | (2) | (2) | ||
Settlements, Net | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Ending Balance | 2 | 2 | ||
Unrealized (Gains) Losses Still Held - Liabilities | 0 | (2) | ||
Available-for-sale securities | ||||
Assets: | ||||
Beginning Balance | 4,274 | 8,809 | 5,775 | 11,088 |
Included in Earnings | 49 | 380 | 65 | 863 |
Included in Other Comprehensive Income | 6 | (134) | 141 | (806) |
Total realized and unrealized gains (losses) | 55 | 246 | 206 | 57 |
Purchases | 0 | 684 | 202 | 684 |
Issues | 0 | 0 | 0 | 0 |
Sales | (618) | (897) | (1,898) | (2,453) |
Settlements, net | (160) | (335) | (471) | (1,188) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (319) | (263) | 0 |
Ending Balance | 3,551 | 8,188 | 3,551 | 8,188 |
Unrealized Gains (Losses) Still Held - Assets | 4 | 6 | 14 | 18 |
Available-for-sale securities | Freddie Mac | ||||
Assets: | ||||
Beginning Balance | 2,744 | 6,004 | 4,097 | 6,751 |
Included in Earnings | 23 | (3) | 13 | (13) |
Included in Other Comprehensive Income | 16 | (68) | 115 | (267) |
Total realized and unrealized gains (losses) | 39 | (71) | 128 | (280) |
Purchases | 0 | 684 | 202 | 684 |
Issues | 0 | 0 | 0 | 0 |
Sales | (531) | (237) | (1,724) | (293) |
Settlements, net | (102) | (199) | (290) | (772) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (91) | (263) | 0 |
Ending Balance | 2,150 | 6,090 | 2,150 | 6,090 |
Unrealized Gains (Losses) Still Held - Assets | 1 | (4) | 2 | (13) |
Available-for-sale securities | Other agency | ||||
Assets: | ||||
Beginning Balance | 36 | 270 | 38 | 46 |
Included in Earnings | 0 | 0 | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 | 1 | (1) |
Total realized and unrealized gains (losses) | 0 | 0 | 1 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements, net | (2) | (2) | (5) | (5) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (228) | 0 | 0 |
Ending Balance | 34 | 40 | 34 | 40 |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 | 0 | 0 |
Available-for-sale securities | Non-agency and other | ||||
Assets: | ||||
Beginning Balance | 1,494 | 2,535 | 1,640 | 4,291 |
Included in Earnings | 26 | 383 | 52 | 876 |
Included in Other Comprehensive Income | (10) | (66) | 25 | (538) |
Total realized and unrealized gains (losses) | 16 | 317 | 77 | 338 |
Purchases | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | (87) | (660) | (174) | (2,160) |
Settlements, net | (56) | (134) | (176) | (411) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1,367 | 2,058 | 1,367 | 2,058 |
Unrealized Gains (Losses) Still Held - Assets | 3 | 10 | 12 | 31 |
Trading securities | ||||
Assets: | ||||
Beginning Balance | 3,034 | 3,729 | 3,294 | 2,917 |
Included in Earnings | (30) | (141) | (113) | (385) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | (30) | (141) | (113) | (385) |
Purchases | 287 | 623 | 1,242 | 1,057 |
Issues | 0 | 0 | 0 | 0 |
Sales | (21) | (875) | (732) | (884) |
Settlements, net | (35) | (30) | 95 | (54) |
Transfers into Level 3 | 0 | 0 | 8 | 579 |
Transfers out of Level 3 | (299) | (108) | (858) | (32) |
Ending Balance | 2,936 | 3,198 | 2,936 | 3,198 |
Unrealized Gains (Losses) Still Held - Assets | (31) | (137) | (69) | (364) |
Trading securities | Freddie Mac | ||||
Assets: | ||||
Beginning Balance | 3,028 | 3,711 | 3,286 | 2,907 |
Included in Earnings | (30) | (140) | (113) | (383) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | (30) | (140) | (113) | (383) |
Purchases | 287 | 623 | 1,242 | 1,027 |
Issues | 0 | 0 | 0 | 0 |
Sales | (21) | (875) | (730) | (863) |
Settlements, net | (35) | (31) | 95 | (55) |
Transfers into Level 3 | 0 | 0 | 8 | 579 |
Transfers out of Level 3 | (299) | (108) | (858) | (32) |
Ending Balance | 2,930 | 3,180 | 2,930 | 3,180 |
Unrealized Gains (Losses) Still Held - Assets | (31) | (136) | (68) | (362) |
Trading securities | Other agency | ||||
Assets: | ||||
Beginning Balance | 5 | 17 | 7 | 9 |
Included in Earnings | 0 | (1) | 0 | (2) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | (1) | 0 | (2) |
Purchases | 0 | 0 | 0 | 30 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | (2) | (21) |
Settlements, net | 0 | 1 | 0 | 1 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 5 | 17 | 5 | 17 |
Unrealized Gains (Losses) Still Held - Assets | 0 | (1) | (1) | (2) |
Trading securities | All other | ||||
Assets: | ||||
Beginning Balance | 1 | 1 | 1 | 1 |
Included in Earnings | 0 | 0 | 0 | 0 |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements, net | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1 | 1 | 1 | 1 |
Unrealized Gains (Losses) Still Held - Assets | 0 | 0 | 0 | 0 |
Other Asset [Member] | ||||
Assets: | ||||
Beginning Balance | 4,067 | 3,466 | 3,770 | 3,216 |
Included in Earnings | 27 | (27) | 44 | (17) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 27 | (27) | 44 | (17) |
Purchases | 24 | (3) | 75 | 38 |
Issues | 451 | 244 | 1,034 | 721 |
Sales | (27) | 0 | (59) | 0 |
Settlements, net | (175) | (147) | (497) | (425) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 4,367 | 3,533 | 4,367 | 3,533 |
Unrealized Gains (Losses) Still Held - Assets | 12 | (32) | 24 | (37) |
All Other, at fair value | ||||
Assets: | ||||
Beginning Balance | 126 | 103 | 137 | 45 |
Included in Earnings | 12 | 1 | (31) | 31 |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 12 | 1 | (31) | 31 |
Purchases | 24 | (3) | 75 | 38 |
Issues | 12 | (11) | 29 | (24) |
Sales | (27) | 0 | (59) | 0 |
Settlements, net | (5) | 0 | (9) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 142 | 90 | 142 | 90 |
Unrealized Gains (Losses) Still Held - Assets | (3) | (4) | (51) | 11 |
Guarantee Asset | ||||
Assets: | ||||
Beginning Balance | 3,941 | 3,363 | 3,633 | 3,171 |
Included in Earnings | 15 | (28) | 75 | (48) |
Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 15 | (28) | 75 | (48) |
Purchases | 0 | 0 | 0 | 0 |
Issues | 439 | 255 | 1,005 | 745 |
Sales | 0 | 0 | 0 | 0 |
Settlements, net | (170) | (147) | (488) | (425) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 4,225 | 3,443 | 4,225 | 3,443 |
Unrealized Gains (Losses) Still Held - Assets | $ 15 | $ (28) | $ 75 | $ (48) |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Recurring Level 3 Fair Value Measurements (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | $ 28,533 | $ 33,563 |
Liabilities [Abstract] | ||
Debt instrument recorded at fair value | 4,600 | 5,112 |
Held by consolidated trusts | ||
Liabilities [Abstract] | ||
Debt instrument recorded at fair value | 737 | 755 |
Freddie Mac | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 26,119 | 30,199 |
Non-agency and other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 1,388 | 1,658 |
Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 28,533 | 33,563 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 44,449 | 35,548 |
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 4,225 | 3,633 |
Fair Value, Measurements, Recurring | Held by consolidated trusts | ||
Liabilities [Abstract] | ||
Debt instrument recorded at fair value | 737 | 755 |
Fair Value, Measurements, Recurring | Mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 20,167 | 16,373 |
Fair Value, Measurements, Recurring | Freddie Mac | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 26,119 | 30,199 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 12,972 | 13,821 |
Fair Value, Measurements, Recurring | Non-agency and other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 1,388 | 1,658 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 3,551 | 5,775 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,936 | 3,294 |
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 4,225 | 3,633 |
Insignificant level3 assets | 182 | 184 |
Total Level3 assets fair value disclosure | 10,854 | 12,840 |
Liabilities [Abstract] | ||
Insignificant level3 liabilities | 156 | 226 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Discounted Cash Flows | ||
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 3,970 | 3,391 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Other | ||
Other assets: | ||
Guarantee Assets Fair Value Disclosure | 255 | 242 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Held by consolidated trusts | ||
Liabilities [Abstract] | ||
Debt instrument recorded at fair value | 733 | 728 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Held by consolidated trusts | Single External Source | ||
Liabilities [Abstract] | ||
Debt instrument recorded at fair value | 733 | 728 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage-related securities | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,936 | 3,294 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Freddie Mac | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 2,150 | 4,097 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,930 | 3,286 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Freddie Mac | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 1,259 | |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 2,047 | 1,587 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Freddie Mac | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 2,150 | 2,838 |
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 883 | 1,178 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Freddie Mac | Other | ||
Trading, at Fair Value: | ||
Trading Securities, Fair Value Disclosure | 521 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Non-agency and other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 1,367 | 1,640 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Non-agency and other | Median of external sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 979 | 1,403 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Non-agency and other | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | $ 237 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Non-agency and other | Other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | $ 388 | |
Fair Value, Measurements, Recurring | Debt | Fair Value, Inputs, Level 3 | Held by consolidated trusts | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 100.4 | 99.6 |
Fair Value, Measurements, Recurring | Debt | Fair Value, Inputs, Level 3 | Held by consolidated trusts | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 99.5 | 97.4 |
Fair Value, Measurements, Recurring | Debt | Fair Value, Inputs, Level 3 | Held by consolidated trusts | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 103.9 | 101.1 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 102.3 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Weighted Average | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 0.81% | 0.81% |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 96.1 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Minimum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 0.30% | 0.30% |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 104.1 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Freddie Mac | Maximum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 2.61% | 3.25% |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Weighted Average | Median of external sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 73.5 | 67.3 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 100.7 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Minimum | Median of external sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 70.3 | 64.3 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 93.1 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Maximum | Median of external sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 76.7 | 71.1 |
Fair Value, Measurements, Recurring | Available-for-sale securities | Fair Value, Inputs, Level 3 | Non-agency and other | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 110.7 | |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 36.1 | 56.6 |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Weighted Average | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 5.55% | 0.90% |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 0 | 0 |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Minimum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | (8.31%) | (219.45%) |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 102.4 | 99.2 |
Fair Value, Measurements, Recurring | Trading securities | Fair Value, Inputs, Level 3 | Freddie Mac | Maximum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 80.95% | 66.39% |
Fair Value, Measurements, Recurring | Guarantee Asset | Fair Value, Inputs, Level 3 | Weighted Average | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 0.43% | 0.49% |
Fair Value, Measurements, Recurring | Guarantee Asset | Fair Value, Inputs, Level 3 | Minimum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 0.17% | 0.17% |
Fair Value, Measurements, Recurring | Guarantee Asset | Fair Value, Inputs, Level 3 | Maximum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
OAS | 1.86% | 1.98% |
Fair Value Disclosures - Asse_2
Fair Value Disclosures - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | $ 3,730 | $ 7,543 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | 429 | 24 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans | $ 3,301 | $ 7,519 |
Fair Value Disclosures - Fair_2
Fair Value Disclosures - Fair Value Assets Measured on Nonrecurring Basis Valuation Techniques (Details) - Fair Value, Measurements, Nonrecurring | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage Loans Fair Value Disclosure | $ 3,730,000,000 | $ 7,543,000,000 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage Loans Fair Value Disclosure | 3,301,000,000 | 7,519,000,000 |
Level 3 | Mortgage loans | Minimum | Internal model | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 3,110 | $ 3,000 |
Housing Sales Index | 0.45% | 0.44% |
Level 3 | Mortgage loans | Minimum | Median of external sources | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 30.4 | 36.2 |
Level 3 | Mortgage loans | Maximum | Internal model | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 671,825 | $ 750,500 |
Housing Sales Index | 3.52% | 4.80% |
Level 3 | Mortgage loans | Maximum | Median of external sources | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 95 | 94.6 |
Level 3 | Mortgage loans | Weighted Average | Internal model | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair Value Inputs Historical Sale Proceeds | $ 185,551 | $ 177,725 |
Housing Sales Index | 1.13% | 1.08% |
Level 3 | Mortgage loans | Weighted Average | Median of external sources | ||
Assets, Fair Value Disclosure [Abstract] | ||
External Pricing Source(s) | 85.1 | 82.5 |
Fair Value Disclosures - Fair_3
Fair Value Disclosures - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Securities purchased under agreement to resell | $ 51,187 | $ 34,771 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 28,533 | 33,563 |
Mortgage Loans [Abstract] | ||
Derivative Assets, net | 1,592 | 335 |
Other Assets | 4,590 | 3,929 |
Secured Lending and Other | 5,439 | 1,805 |
Financial Liabilities | ||
Debt, net | 4,600 | 5,112 |
Derivative Liabilities, net | 355 | 583 |
Other Liabilities | 7,270 | 6,398 |
Held by consolidated trusts | ||
Financial Assets | ||
Securities purchased under agreement to resell | 21,400 | 12,125 |
Financial Liabilities | ||
Debt, net | 737 | 755 |
Held by Freddie Mac | ||
Financial Liabilities | ||
Debt, net | 3,900 | 4,400 |
GAAP Carrying Amount | ||
Financial Assets | ||
Cash and Cash Equivalents | 8,708 | 7,273 |
Securities purchased under agreement to resell | 51,187 | 34,771 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 28,533 | 33,563 |
Trading, at fair value | 44,449 | 35,548 |
Total investments in securities | 72,982 | 69,111 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,997,490 | 1,926,978 |
Derivative Assets, net | 1,592 | 335 |
Guarantee Assets | 4,225 | 3,633 |
Non Derivative Purchase Commitments Assets | 223 | 159 |
Secured Lending and Other | 5,439 | 1,805 |
Total Assets at Fair value | 2,141,846 | 2,044,065 |
Financial Liabilities | ||
Debt, net | 2,149,259 | 2,044,950 |
Derivative Liabilities, net | 355 | 583 |
Guarantee obligation | 4,055 | 3,561 |
Non Derivative HFS Purchase Commitment Liabilities | 1 | 17 |
Total Financial Liabilities | 2,153,670 | 2,049,111 |
GAAP Carrying Amount | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,905,633 | 1,842,850 |
Financial Liabilities | ||
Debt, net | 1,869,308 | 1,792,677 |
GAAP Carrying Amount | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 91,857 | 84,128 |
Financial Liabilities | ||
Debt, net | 279,951 | 252,273 |
GAAP Carrying Amount | AmortizedCost | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 2,000,000 | 1,900,000 |
Financial Liabilities | ||
Debt, net | 2,100,000 | 2,000,000 |
GAAP Carrying Amount | LowerOfCostOrFairValue | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 19,600 | 18,500 |
GAAP Carrying Amount | FV - NI | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 21,500 | 23,100 |
Financial Liabilities | ||
Debt, net | 4,600 | 5,100 |
Fair Value | ||
Financial Assets | ||
Cash and Cash Equivalents | 8,708 | 7,273 |
Securities purchased under agreement to resell | 51,187 | 34,771 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 28,533 | 33,563 |
Trading, at fair value | 44,449 | 35,548 |
Total investments in securities | 72,982 | 69,111 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 2,032,769 | 1,901,574 |
Derivative Assets, net | 1,592 | 335 |
Netting Adjustment | (6,316) | (6,083) |
Guarantee Assets | 4,233 | 3,642 |
Non Derivative Purchase Commitments Assets | 230 | 161 |
Secured Lending and Other | 4,473 | 1,068 |
Total Assets at Fair value | 2,176,174 | 2,017,935 |
Financial Liabilities | ||
Debt, net | 2,185,941 | 2,017,781 |
Derivative Liabilities, net | 355 | 583 |
Netting Adjustment | (6,122) | (3,845) |
Guarantee obligation | 4,416 | 4,146 |
Non Derivative HFS Purchase Commitment Liabilities | 13 | 28 |
Total Financial Liabilities | 2,190,725 | 2,022,538 |
Fair Value | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,937,616 | 1,815,416 |
Financial Liabilities | ||
Debt, net | 1,900,955 | 1,762,609 |
Fair Value | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 95,153 | 86,158 |
Financial Liabilities | ||
Debt, net | 284,986 | 255,172 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 8,693 | 7,273 |
Securities purchased under agreement to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 0 | 0 |
Trading, at fair value | 21,952 | 15,885 |
Total investments in securities | 21,952 | 15,885 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 0 | 0 |
Derivative assets at fair value | 0 | 0 |
Guarantee Assets | 0 | 0 |
Non Derivative Purchase Commitments Assets | 0 | 0 |
Secured Lending and Other | 0 | 0 |
Total Assets at Fair value | 30,645 | 23,158 |
Financial Liabilities | ||
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 |
Financial Liabilities | ||
Debt, net | 0 | 0 |
Fair Value | Level 1 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 0 | 0 |
Financial Liabilities | ||
Debt, net | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and Cash Equivalents | 15 | 0 |
Securities purchased under agreement to resell | 51,187 | 34,771 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 24,982 | 27,788 |
Trading, at fair value | 19,561 | 16,369 |
Total investments in securities | 44,543 | 44,157 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,760,928 | 1,639,820 |
Derivative assets at fair value | 7,892 | 6,417 |
Guarantee Assets | 0 | 0 |
Non Derivative Purchase Commitments Assets | 229 | 159 |
Secured Lending and Other | 1,728 | 195 |
Total Assets at Fair value | 1,866,522 | 1,725,519 |
Financial Liabilities | ||
Debt, net | 2,180,116 | 2,011,454 |
Derivative liabilities at fair value | 6,437 | 4,336 |
Guarantee obligation | 0 | 0 |
Non Derivative HFS Purchase Commitment Liabilities | 1 | 17 |
Total Financial Liabilities | 2,186,554 | 2,015,807 |
Fair Value | Level 2 | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 1,714,292 | 1,605,874 |
Financial Liabilities | ||
Debt, net | 1,898,887 | 1,759,911 |
Fair Value | Level 2 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 46,636 | 33,946 |
Financial Liabilities | ||
Debt, net | 281,229 | 251,543 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Securities purchased under agreement to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale, at fair value | 3,551 | 5,775 |
Trading, at fair value | 2,936 | 3,294 |
Total investments in securities | 6,487 | 9,069 |
Mortgage Loans [Abstract] | ||
Mortgage loans | 271,841 | 261,754 |
Derivative assets at fair value | 16 | 1 |
Guarantee Assets | 4,233 | 3,642 |
Non Derivative Purchase Commitments Assets | 1 | 2 |
Secured Lending and Other | 2,745 | 873 |
Total Assets at Fair value | 285,323 | 275,341 |
Financial Liabilities | ||
Debt, net | 5,825 | 6,327 |
Derivative liabilities at fair value | 40 | 92 |
Guarantee obligation | 4,416 | 4,146 |
Non Derivative HFS Purchase Commitment Liabilities | 12 | 11 |
Total Financial Liabilities | 10,293 | 10,576 |
Fair Value | Level 3 | Held by consolidated trusts | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 223,324 | 209,542 |
Financial Liabilities | ||
Debt, net | 2,068 | 2,698 |
Fair Value | Level 3 | Held by Freddie Mac | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 48,517 | 52,212 |
Financial Liabilities | ||
Debt, net | $ 3,757 | $ 3,629 |
Fair Value Disclosures - Differ
Fair Value Disclosures - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans Held For Sale, Fair Value | $ 21,538 | $ 23,106 |
Loans Held For Sale, Unpaid Principal Balance, With Fair Value Option Elected | 20,152 | 22,693 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 1,386 | 413 |
NonDerivativeHFSPurchaseCommitmentnet | 222 | 142 |
Held by Freddie Mac | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | 3,806 | 4,357 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 3,538 | 3,998 |
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | 268 | 359 |
Interest-Only | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | 61 | 26 |
Held by consolidated trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Long-Term Debt, Fair Value | 733 | 728 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 730 | 730 |
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | $ 3 | $ (2) |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures - Changes in Fair Value under the FVO option (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Held by Freddie Mac | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 49 | $ 10 | $ 116 | $ 38 |
Held by consolidated trusts | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (1) | 2 | (6) | 4 |
Loans Receivable [Member] | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 398 | (285) | 1,216 | (797) |
HFS loan purchase commitments | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 641 | $ 267 | $ 1,644 | $ 564 |
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 Regulatory C
Regulatory Capital Regulatory Capital - Net Worth and Minimum Capital (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Net Worth and Minimum Capital [Abstract] | ||||||
GAAP net worth (deficit) | $ 6,674 | $ 4,826 | $ 4,477 | $ 5,559 | $ 4,585 | $ (312) |
Core capital (deficit) | (66,556) | (68,036) | ||||
Minimum capital requirement | 18,817 | 17,553 | ||||
Minimum capital surplus (deficit) | $ (85,373) | $ (85,589) |
Selected Financial Statement _3
Selected Financial Statement Line Items - Significant Components of Other Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other income (loss): | ||||
Income on guarantee obligation | $ 206 | $ 176 | $ 593 | $ 524 |
All other | (60) | (97) | (204) | 124 |
Other income (loss) | $ 146 | $ 79 | $ 389 | $ 648 |
Selected Financial Statement _4
Selected Financial Statement Line Items - Significant Components of Other Assets and Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets: | ||
Real estate owned, net | $ 607 | $ 769 |
Accounts and other receivables | 12,816 | 2,447 |
Guarantee asset | 4,225 | 3,633 |
Secured lending and other | 5,439 | 1,805 |
All other | 2,626 | 2,322 |
Total other assets | 25,713 | 10,976 |
Other liabilities: | ||
Guarantee obligation | 4,055 | 3,561 |
All other | 3,215 | 2,837 |
Total other liabilities | $ 7,270 | $ 6,398 |