Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 300 | ||
Entity Common Stock, Shares Outstanding | 650,059,553 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001026214 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Voting Common Stock, no par value per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Voting Common Stock, no par value per share | ||
Trading Symbol | FMCC | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCI | ||
5% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKK | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCG | ||
5.1% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.1% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCH | ||
5.79% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.79% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCK | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCL | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCM | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCN | ||
5.81% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.81% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCO | ||
6% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 6% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCP | ||
Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCJ | ||
5.7% Non-Cumulative Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.7% Non-Cumulative Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKP | ||
Variable Rate, Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Variable Rate, Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCS | ||
6.42% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 6.42% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCCT | ||
5.9% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.9% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKO | ||
5.57% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.57% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKM | ||
5.66% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 5.66% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKN | ||
6.02% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 6.02% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKL | ||
6.55% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | 6.55% Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKI | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, par value $1.00 per share | ||
Trading Symbol | FMCKJ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Washington, District of Columbia |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Interest Income | |||
Interest income | $ 105,363 | $ 83,458 | $ 61,527 |
Interest expense | (86,821) | (65,453) | (43,947) |
Net interest income | 18,542 | 18,005 | 17,580 |
Non-interest income | |||
Guarantee income | 1,615 | 783 | 1,032 |
Investment gains, net | 707 | 1,969 | 2,746 |
Other income | 365 | 507 | 593 |
Non-interest income | 2,687 | 3,259 | 4,371 |
Net revenues | 21,229 | 21,264 | 21,951 |
(Provision) benefit for credit losses | 872 | (1,841) | 1,041 |
Non-interest expense | |||
Salaries and employee benefits | (1,606) | (1,509) | (1,398) |
Credit enhancement expense | (2,339) | (2,118) | (1,518) |
Benefit for (decrease in) credit enhancement recoveries | (189) | 236 | (542) |
Legislative assessments expense | (3,002) | (3,009) | (2,882) |
Other expense | (1,766) | (1,419) | (1,453) |
Non-interest expense | (8,902) | (7,819) | (7,793) |
Income before income tax expense | 13,199 | 11,604 | 15,199 |
Income tax expense | (2,661) | (2,277) | (3,090) |
Net income | 10,538 | 9,327 | 12,109 |
Other comprehensive income (loss), net of taxes and reclassification adjustments | 166 | (342) | (489) |
Comprehensive income | 10,704 | 8,985 | 11,620 |
Net income | 10,538 | 9,327 | 12,109 |
Amounts attributable to senior preferred stock | (10,704) | (8,985) | (11,620) |
Net income (loss) attributable to common stockholders - basic | (166) | 342 | 489 |
Net income (loss) attributable to common stockholders - diluted | $ (166) | $ 342 | $ 489 |
Net income (loss) per common share - basic | $ (0.05) | $ 0.11 | $ 0.15 |
Net income (loss) per common share - diluted | $ (0.05) | $ 0.11 | $ 0.15 |
Weighted average common shares outstanding - basic | 3,234 | 3,234 | 3,234 |
Weighted average common shares outstanding - diluted | 3,234 | 3,234 | 3,234 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 6,019 | $ 6,360 |
Securities purchased under agreements to resell | 95,148 | 87,295 |
Investment securities, at fair value | 43,275 | 38,701 |
Mortgage loans held-for-sale | 12,941 | 12,197 |
Mortgage loans held-for-investment, net | 3,083,665 | 3,022,318 |
Accrued interest receivable, net | 9,925 | 8,529 |
Deferred tax assets, net | 4,076 | 5,777 |
Other Assets | 25,927 | 27,156 |
Total assets | 3,280,976 | 3,208,333 |
Liabilities | ||
Accrued interest payable | 8,812 | 7,309 |
Debt, Long-Term and Short-Term, Combined Amount | 3,208,346 | 3,145,832 |
Other Liabilities | 16,096 | 18,174 |
Total liabilities | 3,233,254 | 3,171,315 |
Equity | ||
Senior Preferred Stock | 72,648 | 72,648 |
Preferred stock, at redemption value | 14,109 | 14,109 |
Common Stock, Value, Issued | 0 | 0 |
Retained earnings | (35,128) | (45,666) |
AOCI, net of taxes, related to: | ||
Available-for-sale securities | 72 | (84) |
Other | (94) | (104) |
AOCI, net of taxes | (22) | (188) |
Treasury Stock, Value | (3,885) | (3,885) |
Total equity | 47,722 | 37,018 |
Total liabilities and equity | 3,280,976 | 3,208,333 |
Held by consolidated trusts | ||
Assets | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 891 | 611 |
Securities purchased under agreements to resell | 9,396 | 9,703 |
Investment securities, at fair value | 65 | 126 |
Mortgage loans held-for-investment, net | 3,039,461 | 2,971,601 |
Accrued interest receivable, net | 8,885 | 7,944 |
Other Assets | 4,858 | 5,019 |
Total assets | 3,063,556 | 2,995,004 |
Liabilities | ||
Accrued interest payable | 7,527 | 6,619 |
Debt, Long-Term and Short-Term, Combined Amount | 3,041,927 | 2,979,070 |
Total liabilities | $ 3,049,454 | $ 2,985,689 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Restricted cash and cash equivalents | $ 978 | $ 707 |
Mortgages held-for-sale, fair value | 7,356 | 3,218 |
Mortgage loans held-for-investment, allowance for credit losses | 6,383 | 7,391 |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Other assets, fair value | 6,095 | 5,890 |
Debt instruments recorded at fair value | 2,476 | 3,047 |
Other liabilities, fair value | 873 | 759 |
Senior preferred stock, liquidation preference | $ 117,309 | $ 107,878 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, issued (in shares) | 725,863,886 | 725,863,886 |
Common stock, outstanding (in shares) | 650,059,553 | 650,059,553 |
Treasury stock (in shares) | 75,804,333 | 75,804,333 |
Assets [Abstract] | ||
Restricted cash and cash equivalents | $ 978 | $ 707 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 6,019 | 6,360 |
Securities purchased under agreements to resell | 95,148 | 87,295 |
Investment securities, at fair value | 43,275 | 38,701 |
Mortgage Loans held-for-investment, net | 3,083,665 | 3,022,318 |
Accrued Interest Receivable, Net | 9,925 | 8,529 |
Other Assets | 25,927 | 27,156 |
Liabilities [Abstract] | ||
Accrued interest payable | 8,812 | 7,309 |
Debt | 3,208,346 | 3,145,832 |
Held by consolidated trusts | ||
Statement of Financial Position [Abstract] | ||
Restricted cash and cash equivalents | 890 | 610 |
Debt instruments recorded at fair value | 2,100 | 1,900 |
Assets [Abstract] | ||
Restricted cash and cash equivalents | 890 | 610 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 891 | 611 |
Securities purchased under agreements to resell | 9,396 | 9,703 |
Investment securities, at fair value | 65 | 126 |
Mortgage Loans held-for-investment, net | 3,039,461 | 2,971,601 |
Accrued Interest Receivable, Net | 8,885 | 7,944 |
Other Assets | 4,858 | 5,019 |
Liabilities [Abstract] | ||
Accrued interest payable | 7,527 | 6,619 |
Debt | $ 3,041,927 | $ 2,979,070 |
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 | Retained Earnings | AOCI, Net of Tax | Treasury Stock, at Cost |
Beginning balance at Dec. 31, 2020 | $ 16,413 | $ 72,648 | $ 14,109 | $ 0 | $ (67,102) | $ 643 | $ (3,885) |
Beginning balance, Shares at Dec. 31, 2020 | 1 | 464 | 650 | ||||
Comprehensive income (loss): | |||||||
Net income | 12,109 | 12,109 | |||||
Changes in net unrealized gains (losses) on available-for-sale securities, net of taxes | (134) | (134) | |||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income, net of taxes | (379) | (379) | |||||
Other, net of taxes | 24 | 24 | |||||
Comprehensive income | 11,620 | 12,109 | (489) | ||||
Ending balance at Dec. 31, 2021 | 28,033 | $ 72,648 | $ 14,109 | $ 0 | (54,993) | 154 | (3,885) |
Ending balance, Shares at Dec. 31, 2021 | 1 | 464 | 650 | ||||
Comprehensive income (loss): | |||||||
Net income | 9,327 | 9,327 | |||||
Changes in net unrealized gains (losses) on available-for-sale securities, net of taxes | (362) | (362) | |||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income, net of taxes | (19) | (19) | |||||
Other, net of taxes | 39 | 39 | |||||
Comprehensive income | 8,985 | 9,327 | (342) | ||||
Ending balance at Dec. 31, 2022 | 37,018 | $ 72,648 | $ 14,109 | $ 0 | (45,666) | (188) | (3,885) |
Ending balance, Shares at Dec. 31, 2022 | 1 | 464 | 650 | ||||
Comprehensive income (loss): | |||||||
Net income | 10,538 | 10,538 | |||||
Changes in net unrealized gains (losses) on available-for-sale securities, net of taxes | 18 | 18 | |||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income, net of taxes | 138 | 138 | |||||
Other, net of taxes | 10 | 10 | |||||
Comprehensive income | 10,704 | 10,538 | 166 | ||||
Ending balance at Dec. 31, 2023 | $ 47,722 | $ 72,648 | $ 14,109 | $ 0 | $ (35,128) | $ (22) | $ (3,885) |
Ending balance, Shares at Dec. 31, 2023 | 1 | 464 | 650 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 10,538 | $ 9,327 | $ 12,109 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of cost basis adjustments | 827 | (1,264) | (1,922) |
Provision (benefit) for credit losses | (872) | 1,841 | (1,041) |
Investment gains, net | (1,853) | (2,763) | (4,312) |
Deferred income tax expense and changes in income taxes receivable | 1,762 | (223) | (113) |
Purchases | (29,339) | (45,093) | (59,270) |
Proceeds from sales and repayments | 27,347 | 49,389 | 70,281 |
Accrued interest receivable | (1,389) | (1,038) | 396 |
Accrued interest payable | 1,507 | 1,041 | 57 |
Other, net | (913) | 708 | 168 |
Net cash provided by (used in) operating activities | 7,615 | 11,925 | 16,353 |
Cash flows from investing activities | |||
Purchases | (101,238) | (132,913) | (124,710) |
Proceeds from sales | 78,799 | 122,442 | 154,352 |
Proceeds from maturities and repayments | 14,247 | 13,821 | 7,701 |
Purchases | (101,262) | (160,884) | (542,222) |
Proceeds from sales | 7,581 | 3,438 | 9,255 |
Proceeds from repayments | 245,037 | 352,204 | 757,186 |
Advances under secured lending arrangements | (96,666) | (170,456) | (264,790) |
Net (increase) decrease in securities purchased under agreements to resell | (6,107) | (20,750) | 26,467 |
Cash flows related to derivatives | 4,326 | 4,769 | 1,070 |
Other, net | (464) | (273) | (59) |
Net cash provided by (used in) investing activities | 44,253 | 11,398 | 24,250 |
Cash flows from financing activities | |||
Net increase (decrease) in securities sold under agreements to repurchase | (1,746) | 4,658 | 7,333 |
Other, net | (145) | 87 | (4) |
Net cash provided by (used in) financing activities | (52,209) | (27,113) | (54,342) |
Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents) | (341) | (3,790) | (13,739) |
Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year | 6,360 | 10,150 | 23,889 |
Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period | 6,019 | 6,360 | 10,150 |
Cash paid for: | |||
Debt interest | 87,610 | 75,441 | 69,093 |
Income taxes | 900 | 2,500 | 3,204 |
Held by consolidated trusts | |||
Cash flows from financing activities | |||
Proceeds from issuance of debt | 205,523 | 359,806 | 825,632 |
Repayments of debt | (251,762) | (388,033) | (782,545) |
Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year | 611 | ||
Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period | 891 | 611 | |
Held by Freddie Mac | |||
Cash flows from financing activities | |||
Proceeds from issuance of debt | 146,506 | 137,339 | 23,153 |
Repayments of debt | $ (150,585) | $ (140,970) | $ (127,911) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Changes in net unrealized gains (losses) on available-for-sale securities, taxes | $ 5 | $ 96 | $ 36 |
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income, taxes | 36 | 5 | 101 |
Other, taxes | $ 2 | $ 10 | $ 4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies Freddie Mac is a GSE chartered by Congress in 1970, with a mission 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 additional information on the roles of FHFA and Treasury, see Note 2 . Throughout our consolidated financial statements and related notes, we use certain acronyms and terms which are defined in the Glossary . Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going concern and in accordance with the authority provided by FHFA to our Board of Directors to oversee management's conduct of our business operations. Use of Estimates The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Management has made significant estimates to report the allowance for credit losses on single-family mortgage loans. Actual results could be different from these estimates. Consolidation and Equity Method Accounting For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. We consolidate entities in which we have a controlling financial interest. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE. For entities that are not VIEs, we hold a controlling financial interest in entities where we hold a majority of the voting rights or a majority of a limited partnership's kick-out rights through voting interests. We do not currently consolidate any entities which are not VIEs. We use the equity method to account for our interests in entities in which we do not have a controlling financial interest, but over which we have significant influence. Cash and Cash Equivalents Highly liquid investment securities that have an original maturity of three months or less are accounted for as cash equivalents. Original maturity means the original maturity to us when we acquire the investment, not the original maturity of the instrument itself. Cash collateral accepted from counterparties that we do not have the right to use for general corporate purposes is classified as restricted cash and cash equivalents on our consolidated balance sheets. Restricted cash and cash equivalents includes cash remittances received from servicers of the underlying assets of our consolidated trusts which are deposited into a separate custodial account. We invest the cash held in the custodial account in short-term investments; and we are entitled to the interest income earned on these short-term investments, which is recorded as interest income on our consolidated statements of income. Comprehensive Income Comprehensive income includes all changes in equity during a period, except those resulting from investments by, or distributions to, stockholders. Comprehensive income consists of net income plus other comprehensive income, including unrealized gains and losses on available-for-sale securities. Other Significant Accounting Policies The table below identifies our other significant accounting policies and the related note in which information about each policy can be found. Note Accounting Policy Note 3 Securitizations and Variable Interest Entities Note 4 Mortgage Loans Note 5 Guarantees and Other Off-Balance Sheet Credit Exposures Note 6 Allowance for Credit Losses Note 7 Investment Securities Note 8 Debt Note 9 Derivatives Note 10 Collateralized Agreements Note 11 Stockholders' Equity Note 11 Earnings Per Share Note 13 Income Taxes Note 14 Segment Reporting Note 16 Fair Value Disclosures Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2022-01 , Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method The amendments in this Update provide clarifications of the guidance in ASC Topic 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. The Update amends the guidance in ASU 2017-12 that, among other things, establishes the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible by allowing the entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. The Update provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. January 1, 2023 The adoption of these amendments did not have a material effect on our consolidated financial statements. We adopted the guidance in this Update related to disclosures on a prospective basis. ASU 2022-02 , Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The amendments in this Update require disclosure of current period gross write-offs by year of origination for financing receivables within the scope of ASC Subtopic 326-20. January 1, 2023 for the amendments related to disclosure of gross write-offs by year of origination. The adoption of these amendments did not have a material effect on our consolidated financial statements. See Note 4 for additional disclosure of gross write-offs by year of origination. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this Update expand the use of the proportional amortization method of accounting to equity investments in other tax credit structures that meet certain conditions. This Update also amends those conditions primarily to assess projected benefits on a discounted basis and expands the disclosure requirements of those investments. January 1, 2024 We do not expect the adoption of ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this Update require the disclosure of more detailed quantitative and qualitative information about significant segment expenses that are regularly provided to the CODM and included in each reported measure of segment profit or loss. December 31, 2024 We do not expect the adoption of ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this Update require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction. January 1, 2025 We do not expect the adoption of |
Conservatorship and Related Mat
Conservatorship and Related Matters | 12 Months Ended |
Dec. 31, 2023 | |
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 of Directors 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. Our current business objectives reflect direction we have received from the Conservator (including the Conservatorship Scorecards). At the direction of the Conservator, we have made changes to certain business practices that are designed to provide support for the mortgage market in a manner that serves our mission and other non-financial objectives but may not contribute to our profitability. Certain of these objectives are intended to help homeowners and the mortgage market and may help to mitigate future credit losses. Some of these initiatives affect our near- and long-term financial results. Given our mission and the important role the Administration and our Conservator have placed on Freddie Mac in addressing housing and mortgage market conditions, we may be required to take actions that could have a negative impact on our business, operating results, or financial condition. Under the Purchase Agreement, we cannot return capital to stockholders other than Treasury, the holder of our senior preferred stock. Our future is uncertain, and the conservatorship has no specified termination date. We do not know what changes may occur to our business model during or following conservatorship, including whether we will continue to exist. Our Conservator has not made us aware of any plans to make any significant changes that would affect our ability to continue as a going concern. Our future structure and role will be determined by the Administration, Congress, and FHFA. It is possible, and perhaps likely, that there will be significant changes to our business beyond the near term. Purchase Agreement and Warrant Overview On September 7, 2008, we, through FHFA, in its capacity as Conservator, entered into the Purchase Agreement with Treasury. The Purchase Agreement was subsequently amended and restated on September 26, 2008, and further amended on May 6, 2009, December 24, 2009, August 17, 2012, December 21, 2017, September 27, 2019, January 14, 2021, and September 14, 2021. The amount of available funding remaining under the Purchase Agreement was $140.2 billion as of December 31, 2023. This amount will be reduced by any future draws. The Purchase Agreement requires Treasury, upon the request of the Conservator, to provide funds to us after any quarter in which we have a negative net worth (that is, our total liabilities exceed our total assets, as reflected on our consolidated balance sheets). In addition, the Purchase Agreement requires Treasury, upon the request of the Conservator, to provide funds to us if the Conservator determines, at any time, that it will be mandated by law to appoint a receiver for us unless we receive these funds from Treasury. In exchange for Treasury's funding commitment, we issued to Treasury, as an aggregate initial commitment fee, one million shares of Variable Liquidation Preference Senior Preferred Stock with an initial liquidation preference of $1 billion, which we refer to as the senior preferred stock, and a warrant to purchase, for a nominal price, shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis at the time the warrant is exercised, which we refer to as the warrant. We received no cash proceeds or other consideration from Treasury for issuing the senior preferred stock or the warrant. The amount of any draw will be added to the aggregate liquidation preference of the senior preferred stock. Deficits in our net worth have made it necessary for us to make substantial draws on Treasury's funding commitment under the Purchase Agreement. Pursuant to the December 2017 Letter Agreement, the liquidation preference of the senior preferred stock increased by $3.0 billion on December 31, 2017. Pursuant to the September 2019 Letter Agreement and January 2021 Letter Agreement, increases in the Net Worth Amount, if any, during the immediately prior fiscal quarter have been, or will be, added to the liquidation preference of the senior preferred stock at the end of each fiscal quarter, from September 30, 2019 through the Capital Reserve End Date. The liquidation preference of the senior preferred stock was $117.3 billion on December 31, 2023 and will increase to $120.4 billion on March 31, 2024 based on the increase in our Net Worth Amount during 4Q 2023. Under the Purchase Agreement, our ability to repay the liquidation preference of the senior preferred stock is limited, and we will not be able to do so for the foreseeable future, if at all. In addition to increases based on quarterly increases in our Net Worth Amount, as discussed above, the liquidation preference will increase if we receive additional draws under the Purchase Agreement or if any dividends or quarterly commitment fees payable under the Purchase Agreement are not paid in cash. 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 of Directors. Through December 31, 2012, the senior preferred stock accrued quarterly cumulative dividends at a rate of 10% per year. Under the August 2012 amendment to the Purchase Agreement, the fixed dividend rate was replaced with a net worth sweep dividend beginning in the first quarter of 2013. Accordingly, our cash dividend requirement for each quarter from January 1, 2013 until the Capital Reserve End Date is the amount, if any, by which our Net Worth Amount at the end of the immediately preceding fiscal quarter, less the applicable Capital Reserve Amount, exceeds zero. The term Net Worth Amount is defined as the total assets of Freddie Mac (excluding Treasury's commitment and any unfunded amounts thereof), less our total liabilities (excluding any obligation in respect of capital stock), in each case as reflected on our consolidated balance sheets prepared in accordance with GAAP. If the calculation of the dividend payment for a quarter does not exceed zero, then no dividend will accrue or be payable for that quarter. The applicable Capital Reserve Amount is currently the amount of adjusted total capital necessary to meet capital requirements and buffers set forth in the ERCF. This Capital Reserve Amount will remain in effect until the last day of the second consecutive fiscal quarter during which we have reached and maintained such level of capital (the Capital Reserve End Date). As a result, we will not be required to pay a dividend on the senior preferred stock to Treasury until we have built sufficient net worth to meet the capital requirements and buffers set forth in the ERCF. If for any reason we were not to pay our dividend requirement on the senior preferred stock in full in any future period until the Capital Reserve End Date, the unpaid amount would be added to the liquidation preference and the applicable Capital Reserve Amount would thereafter be zero. Based on our Net Worth Amount at December 31, 2023 and the applicable Capital Reserve Amount, we will not have a dividend requirement to Treasury in March 2024. Since the beginning of the conservatorship through December 31, 2023, we have paid cash dividends of $119.7 billion to Treasury at the direction of the Conservator. After the Capital Reserve End Date, we will be subject to a new periodic cash dividend requirement. Our quarterly senior preferred stock dividend requirement will be an amount equal to the lesser of (1) 10% per annum on the then-current liquidation preference of the senior preferred stock and (2) a quarterly amount equal to the increase in the Net Worth Amount, if any, during the immediately prior fiscal quarter. If for any reason we were not to pay our dividend requirement on the senior preferred stock in full in any future period after the Capital Reserve End Date, the unpaid amount would be added to the liquidation preference and immediately following such failure and for all dividend periods thereafter until the dividend period following the date on which we shall have paid in cash full cumulative dividends, the dividend amount will be 12% per annum on the then-current liquidation preference of the senior preferred stock. The amounts payable for dividends on the senior preferred stock could be substantial and will have an adverse impact on our financial position and net worth. The senior preferred stock is senior in liquidation preference to our common stock and all other series of preferred stock. In addition to the issuance of the senior preferred stock and warrant, we are required under the Purchase Agreement to pay a quarterly commitment fee to Treasury. Under the Purchase Agreement, the fee was to be determined in an amount mutually agreed to by us and Treasury with reference to the market value of Treasury's funding commitment as then in effect. However, pursuant to the August 2012 amendment to the Purchase Agreement, as further amended by the January 2021 Letter Agreement, for each quarter commencing January 1, 2013, no periodic commitment fee under the Purchase Agreement will be set, accrue, or be payable. Pursuant to the January 2021 Letter Agreement, by the Capital Reserve End Date, we and Treasury, in consultation with the Chairman of the Federal Reserve, will mutually agree on a periodic commitment fee that we will pay for Treasury's remaining funding commitment with respect to the five-year period commencing on the first January 1 after the Capital Reserve End Date. The Purchase Agreement includes significant restrictions on our ability to manage our business, including limits on the amount of indebtedness we can incur, the size of our mortgage-related investments portfolio, our secondary market activities, and our single-family and multifamily loan acquisitions. The Purchase Agreement has an indefinite term and can terminate only in limited circumstances, which do not include the end of the conservatorship. The Purchase Agreement therefore could continue after the conservatorship ends. However, Treasury's consent is required for a termination of conservatorship other than in connection with receivership or under the limited circumstances specified in the Purchase Agreement involving maintenance of certain capital and resolution of currently pending material litigation related to our conservatorship and the Purchase Agreement. Treasury has the right to exercise the warrant, in whole or in part, at any time on or before September 7, 2028. Purchase Agreement Covenants The Purchase Agreement provides that, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury: n Declare or pay any dividend (preferred or otherwise) or make any other distribution with respect to any Freddie Mac equity securities (other than with respect to the senior preferred stock or warrant); n Redeem, purchase, retire, or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant); n Sell or issue any Freddie Mac equity securities (other than the senior preferred stock, warrant, and common stock issuable upon exercise of the warrant and certain issuance(s) of common stock after the occurrence of both Treasury's exercise in full of its warrant to acquire 79.9% of our common stock and resolution of currently pending material litigation relating to our conservatorship and the Purchase Agreement); n Terminate the conservatorship (other than in connection with a receivership or under limited circumstances involving maintenance of certain capital levels and resolution of currently pending material litigation related to our conservatorship and the Purchase Agreement); n Sell, transfer, lease, or otherwise dispose of any assets, other than dispositions for fair market value: l To a limited life regulated entity (in the context of a receivership); l Of assets and properties in the ordinary course of business, consistent with past practice; l Of assets and properties having fair market value individually or in aggregate less than $250 million in one transaction or a series of related transactions; l In connection with our liquidation by a receiver; l Of cash or cash equivalents for cash or cash equivalents; or l To the extent necessary to comply with the covenant described below relating to the reduction of our mortgage-related investments portfolio. n Issue any subordinated debt; n Enter into a corporate reorganization, recapitalization, merger, acquisition, or similar event; or n Engage in transactions with affiliates unless the transaction is: l Pursuant to the Purchase Agreement, the senior preferred stock, or the warrant; l Upon arm's length terms; or l A transaction undertaken in the ordinary course or pursuant to a contractual obligation or customary employment arrangement in existence on the date of the Purchase Agreement. In addition, the Purchase Agreement requires us to comply with the ERCF as published in December 2020, disregarding any subsequent amendment or other modification to that rule. Consistent with FHFA instruction, we are reporting our regulatory capital requirements under the ERCF as subsequently amended by FHFA. Therefore, we are not in compliance with this Purchase Agreement covenant. FHFA has acknowledged this noncompliance. For additional information on the ERCF, see Note 18 . The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion effective December 31, 2022. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. Our mortgage-related investments portfolio for purposes of the FHFA and Purchase Agreement caps was $107.2 billion at December 31, 2023, including $22.2 billion representing 10% of the notional amount of the interest-only securities we held as of December 31, 2023. Our ability to acquire and sell mortgage assets continues to be significantly constrained by limitations imposed by the Purchase Agreement and FHFA. With respect to the composition of our mortgage-related investments portfolio, FHFA has instructed us to (1) hold no more than $20 billion in Single-Family agency MBS with all dollar caps to be based on UPB and (2) hold no CMOs, which are also sometimes referred to as REMICs. We will have a holding period limit to sell any new CMO tranches created but not sold at issuance. CMOs do not include tranches initially retained from reperforming loans senior subordinate securitizations. Under the Purchase Agreement, we also may not, without the prior written consent of Treasury, incur indebtedness that would result in the par value of our aggregate indebtedness exceeding 120% of the amount of mortgage assets we are permitted to own on December 31 of the immediately preceding calendar year. Our debt cap under the Purchase Agreement was $270 billion on January 1, 2023 as a result of the decrease in the mortgage assets limit under the Purchase Agreement to $225 billion on December 31, 2022. The mortgage asset and indebtedness limitations are determined without giving effect to the changes to the accounting guidance for transfers of financial assets and consolidation of VIEs, under which we consolidated certain VIEs in our consolidated financial statements as of January 1, 2010. As of December 31, 2023, our aggregate indebtedness for purposes of the debt cap was $174.0 billion. Our aggregate indebtedness calculation primarily includes the par value of short- and long-term debt. In addition, the Purchase Agreement provides that we may not enter into any new compensation arrangements or increase amounts or benefits payable under existing compensation arrangements of any named executive officer or other executive officer (as such terms are defined by SEC rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury. The Purchase Agreement also provides that, on an annual basis, we are required to deliver a risk management plan to Treasury setting out our strategy for reducing our enterprise-wide risk profile and the actions we will take to reduce the financial and operational risk associated with each of our reportable business segments. The Purchase Agreement also restricts our secondary market activities and single-family and multifamily loan acquisitions: n Secondary Market Activities - We cannot vary the pricing or any other term of the acquisition of a single-family loan based on the size, charter type, or volume of business of the seller of the loan and are required to: l Offer to purchase loans for cash consideration and operate this cash window with non-discriminatory pricing; l Beginning on January 1, 2022, limit the volume purchased through the cash window to $1.5 billion per lender during any period comprising four calendar quarters; and l Comply with directives, regulations, restrictions, or other requirements prescribed by FHFA related to equitable secondary market access by community lenders. n Multifamily New Business Activity - We are required to cap multifamily loan purchases at $80 billion in any 52-week period, subject to annual adjustment by FHFA based on changes in the Consumer Price Index. At least 50% of our multifamily loan purchases in any calendar year must be, at the time of acquisition, classified as mission-driven pursuant to FHFA guidelines. n Single-Family Loan Acquisitions - We are required to limit our acquisition of certain single-family mortgage loans. l A maximum of 6% of purchase money mortgages and 3% of refinance mortgages over the preceding 52-week period can have two or more of the following characteristics at origination: combined LTV ratio greater than 90%; DTI ratio greater than 45%; and FICO or equivalent credit score less than 680. l We are required to limit acquisitions of single-family mortgage loans secured by either second homes or investment properties to 7% of the single-family mortgage loan acquisitions over the preceding 52-week period. l Subject to such exceptions as FHFA may prescribe to permit us to acquire single-family mortgage loans that are currently eligible for acquisition, we are required to implement a program reasonably designed to ensure that each single-family mortgage is: – A qualified mortgage; – Expressly exempt from the CFPB’s ability-to-repay requirements; – If secured by an investment property, subject to the related Purchase Agreement restriction described below, which has been suspended; – A refinancing with streamlined underwriting for high LTV ratios; – A loan with temporary underwriting flexibilities due to exigent circumstances, as determined in consultation with FHFA; or – Secured by manufactured housing. In September 2021, the Purchase Agreement requirements related to the $1.5 billion limit on our cash window volumes and requirements related to our multifamily loan purchase activity, acquisitions of single-family loans with certain LTV, DTI, and credit score characteristics at origination, and acquisitions of single-family loans secured by second homes or investment properties were suspended. Each such suspension shall terminate six months after Treasury notifies us that such suspension has been terminated. Warrant Covenants The warrant we issued to Treasury includes, among others, the following covenants: n Our SEC filings under the Exchange Act will comply in all material respects as to form with the Exchange Act and the rules and regulations thereunder; n Without the prior written consent of Treasury, we may not permit any of our significant subsidiaries to issue capital stock or equity securities, or securities convertible into or exchangeable for such securities, or any stock appreciation rights or other profit participation rights to any person other than Freddie Mac or its wholly-owned subsidiaries; n We may not take any action that will result in an increase in the par value of our common stock; n Unless waived or consented to in writing by Treasury, we may not take any action to avoid the observance or performance of the terms of the warrant and we must take all actions necessary or appropriate to protect Treasury's rights against impairment or dilution; and n We must provide Treasury with prior notice of specified actions relating to our common stock, such as setting a record date for a dividend payment, granting subscription or purchase rights, authorizing a recapitalization, reclassification, merger or similar transaction, commencing a liquidation of the company, or any other action that would trigger an adjustment in the exercise price or number or amount of shares subject to the warrant. Termination Provisions The Purchase Agreement provides that the Treasury's funding commitment will terminate under any of the following circumstances: n The completion of our liquidation and fulfillment of Treasury's obligations under its funding commitment at that time; n The payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guarantee obligations); and n The funding by Treasury of the maximum amount of the commitment under the Purchase Agreement. In addition, Treasury may terminate its funding commitment and declare the Purchase Agreement null and void if a court vacates, modifies, amends, conditions, enjoins, stays, or otherwise affects the appointment of the Conservator or otherwise curtails the Conservator's powers. Treasury may not terminate its funding commitment under the Purchase Agreement solely by reason of our being in conservatorship, receivership or other insolvency proceeding, or due to our financial condition or any adverse change in our financial condition. Waivers and Amendments The Purchase Agreement provides that most provisions of the agreement may be waived or amended by mutual written agreement of the parties; however, no waiver or amendment of the agreement is permitted that would decrease Treasury's aggregate funding commitment or add conditions to Treasury's funding commitment if the waiver or amendment would adversely affect in any material respect the holders of our debt securities or mortgage guarantee obligations. Third-Party Enforcement Rights In the event of our default on payments with respect to our debt securities or mortgage guarantee obligations, if Treasury fails to perform its obligations under its funding commitment and if we and/or the Conservator are not diligently pursuing remedies in respect of that failure, the holders of these debt securities or mortgage guarantee obligations may file a claim in the United States Court of Federal Claims for relief requiring Treasury to fund to us the lesser of: n The amount necessary to cure the payment defaults on our debt securities and mortgage guarantee obligations and n The lesser of: l The deficiency amount and l The maximum amount of the commitment less the aggregate amount of funding previously provided under the commitment. Any payment that Treasury makes under those circumstances will be treated for all purposes as a draw under the Purchase Agreement that will increase the liquidation preference of the senior preferred stock. See Note 11 for additional information on the conservatorship and the Purchase Agreement. Related Parties as a Result of Conservatorship As a result of our issuance to Treasury of the warrant to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding, on a fully diluted basis, we are deemed a related party to the U.S. government. During the years ended December 31, 2023, 2022, and 2021, no transactions outside of normal business activities have occurred between us and the U.S. government (or any of its related parties), except for the following: n The transactions with Treasury discussed above in Purchase Agreement and Warrant ; n The transactions entered into whereby we and Fannie Mae, in conjunction with Treasury, provided assistance to state and local HFAs. Treasury will reimburse Freddie Mac for initial guarantee losses on these transactions; n The allocation or transfer of 4.2 bps of each dollar of new business purchases to certain housing funds as required under the GSE Act. During the years ended December 31, 2023, 2022, and 2021, we recognized $0.1 billion, $0.3 billion, and $0.5 billion, respectively, of expense related to the affordable housing funds. These amounts are included in legislative assessments expense on our consolidated statements of income; and n The legislated guarantee fees on single-family loans that are remitted to Treasury as required by law. During the years ended December 31, 2023, 2022, and 2021, we recognized $2.9 billion, $2.8 billion, and $2.3 billion, respectively, of expense related to the legislated guarantee fees. These amounts are included in legislative assessments expense on our consolidated statements of income. In addition, we are deemed a related party with Fannie Mae as both we and Fannie Mae have the same relationships with FHFA and Treasury. All transactions between us and Fannie Mae have occurred in the normal course of business in conservatorship other than our relationship with CSS discussed below. In October 2013, FHFA announced the formation of CSS. CSS is a limited liability company equally-owned by Freddie Mac and Fannie Mae, and CSS is also deemed a related party. In connection with the formation of CSS, we entered into a limited liability company (LLC) agreement with Fannie Mae. Additionally, we and Fannie Mae 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 2019. In June 2019, we entered into an agreement with Fannie Mae regarding the commingling of certain of our mortgage securities and related indemnification obligations. During the year ended December 31, 2023, we contributed $72 million of capital to CSS, and we have contributed $871 million since the fourth quarter of 2014. The carrying value of our investment in CSS was ($1) million and ($2) million as of December 31, 2023 and December 31, 2022. respectively. In January 2020, FHFA directed Freddie Mac and Fannie Mae to amend the LLC agreement for CSS to change the structure of the Board of Managers (CSS Board). The revised LLC agreement also removed the requirement that any CSS Board decision must be approved by at least one of the CSS Board members appointed by Freddie Mac and one appointed by Fannie Mae. These amendments reduce Freddie Mac’s and Fannie Mae’s ability to control CSS Board decisions, even after conservatorship, including decisions about strategy, business operations, and funding. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SECURITIZATION ACTIVITIES AND CONSOLIDATION | Securitizations and Variable Interest Entities Our primary business activities in the Single-Family 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 also use trusts that are VIEs in certain CRT products. Consolidated VIEs We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. We are the primary beneficiary of a VIE when we have both the power to direct the activities of the VIE that most significantly impact its economic performance and exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We evaluate whether we are the primary beneficiary of VIEs in which we have interests at both inception and on an ongoing basis, and the primary beneficiary determination may change over time as our interest in the VIE changes. Generally, the assets of our consolidated VIEs can be used only to settle obligations of the VIE, and the creditors of our consolidated VIEs have recourse to the general credit of Freddie Mac only to the extent that we have provided a guarantee to the VIE. When we consolidate a VIE, we recognize the assets and liabilities of the VIE on our consolidated balance sheets and account for those assets and liabilities based on the applicable GAAP for each specific type of asset or liability. Assets and liabilities that we transfer to a VIE at, after, or shortly before the date we become the primary beneficiary of the VIE are initially measured at the same amounts that they would have been measured if they had not been transferred, and no gain or loss is recognized on these transfers. For all other VIEs that we consolidate, we recognize the assets and liabilities of the VIE at fair value, and we recognize a gain or loss for the difference between: n The sum of the fair value of the consideration paid, the fair value of any noncontrolling interests, and the reported amount of any previously held interests and n The fair value of the net identifiable assets recognized. Single-Family Securitization Products Level 1 Securitization Products Level 1 Securitization Products consist of UMBS, 55-day MBS, ARM and Gold PCs, which are all pass-through debt securities that represent undivided beneficial interests in a pool of loans held by a securitization trust. All Level 1 Securitization Products are backed only by mortgage loans we have acquired. We serve as both administrator and guarantor for these trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by these trusts. As guarantor, we guarantee the payment of principal and interest on these securities in exchange for a guarantee fee, and we have the right to purchase delinquent loans from the trust to help improve the economic performance of the trust. We absorb all credit losses of these trusts through our guarantee of the principal and interest payments. The economic performance of these trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of these trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of and, therefore, consolidate these trusts. Loans held by these trusts are recognized on our consolidated balance sheets as mortgage loans held-for-investment. The corresponding securities held by third parties are recognized on our consolidated balance sheets as debt. We extinguish the outstanding debt of the related consolidated trust and recognize gains or losses on debt extinguishment for the difference between the consideration paid and the debt carrying value when we purchase these securities as investments in our mortgage-related investments portfolio. Sales of these securities that were previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances. We were the primary beneficiary of, and therefore consolidated, Level 1 securitization trusts with assets totaling $3.0 trillion and $2.9 trillion at December 31, 2023 and December 31, 2022, respectively. Our exposure for guarantees to consolidated securitization trusts is generally equal to the UPB of the loans recorded on our consolidated balance sheets. Other Securitization Products We are the primary beneficiary of and, therefore, consolidate the trusts used to issue certain of our Single-Family other securitization products when we have the ability to direct the activities that most significantly affect the economic performance of the trusts and we have the obligation to absorb credit losses through our guarantee of some or all of the issued securities. As a result, we consolidated trusts used to issue these products with underlying assets totaling $4.5 billion and $5.0 billion at December 31, 2023 and December 31, 2022, respectively. Multifamily Securitization Products Multifamily PCs Multifamily PCs are fully guaranteed pass-through securities with a 55-day payment delay that are collateralized by a single underlying mortgage loan held by a securitization trust. We serve as both administrator and guarantor for these trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by these trusts. As guarantor, we guarantee the payment of principal and interest on these securities in exchange for a guarantee fee, and we have the right to purchase a delinquent loan from the trust. We absorb all credit losses of these trusts through our guarantee of the principal and interest payments. The economic performance of these trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of these trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of and, therefore, consolidate these trusts. We consolidated VIEs used in these securitizations with underlying assets totaling $44.1 billion and $29.3 billion at December 31, 2023 and December 31, 2022, respectively. K Certificates and Other Securitization Products We are the primary beneficiary of and, therefore, consolidate the trusts used to issue fully-guaranteed K Certificates and certain of our Multifamily other securitization products when we have the ability to direct the activities that most significantly affect the economic performance of the VIEs and we have the obligation to absorb credit losses through our guarantee of the issued securities. We consolidated VIEs used in these securitizations with underlying assets totaling $3.2 billion and $1.1 billion at December 31, 2023 and December 31, 2022, respectively. WI K-Deal Certificates In a WI K-Deal Certificate transaction, we forward sell a K Certificate that will be issued in the future to a WI K-Deal trust at a fixed price, thereby reducing our exposure to future changes in interest rates and K Certificate spreads. The WI K-Deal trust simultaneously issues guaranteed securities (WI Certificates). The economic performance of our WI K-Deal trusts is most significantly affected by the performance of the underlying assets. We manage the underlying assets of the trust prior to the delivery of the K Certificate and determine which K Certificate will be delivered into the trust. Therefore, we have the power to direct the activities that are most significant to the WI K-Deal trust. We also initially have economic exposure to the variability of the trust through our guarantee of the issued WI Certificates. As a result, we are the primary beneficiary of and, therefore, initially consolidate the trusts used to issue WI Certificates. Upon delivering the K Certificate into the trust, we no longer have a variable interest and therefore deconsolidate the WI K-Deal trust. During 2023 and 2022, we issued $4.9 billion and $14.7 billion, respectively, of WI Certificates, and initially consolidated the trusts. Nonconsolidated VIEs Single-Family Securitization Products We do not consolidate certain of our Single-Family other securitization products, including senior subordinate securitizations backed by seasoned loans, because we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. When we sell loans in this type of transaction, we derecognize the transferred loans and account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the nonconsolidated VIE, if any, as investments in debt securities. We also do not consolidate the trusts used to issue certain other types of our Single-Family other securitization products when we do not have the ability to direct the activities that most significantly affect the economic performance of the VIE. Resecuritization Products We create resecuritization products primarily by using Level 1 Securitization Products, our previously issued resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae as the underlying collateral. In a typical resecuritization transaction, previously issued Level 1 Securitization Products or resecuritization products are transferred to a resecuritization trust that issues beneficial interests in the underlying collateral. We establish parameters that define eligibility standards for assets that may be used as collateral for each of our resecuritization programs. Resecuritization products can then be created based on the parameters that we have established. Similar to our Level 1 Securitization Products, we guarantee the full payment of principal and interest to the investors in our resecuritization products. The main types of resecuritization products we create are single-class resecuritization products (Supers, Giant MBS, and Giant PCs) and multiclass resecuritization products (REMICs and Strips). n Single-class resecuritization products - These securities are direct pass-throughs of the cash flows of the underlying collateral, which may be previously issued Level 1 Securitization Products, single-class resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae. We do not consolidate the trusts used in these transactions unless we have the unilateral ability to liquidate the trust (for example if we own all of the trust's issued beneficial interests), as these transactions do not result in any new or incremental risk to the holders of the securities issued by the resecuritization trust and because we are not exposed to any incremental rights to receive benefits or obligations to absorb losses that could be significant to the resecuritization trust. We account for purchases of single-class resecuritization products that we issue that are substantially the same as the underlying collateral as debt extinguishment of a pro-rata portion of the underlying Level 1 Securitization Product. We account for purchases of single-class resecuritization products that we issue that are not considered substantially the same as the underlying collateral as investments in debt securities. Single-class resecuritization products that we issue that are backed entirely by Freddie Mac collateral are considered substantially the same as the underlying collateral, while commingled single-class resecuritization products that we issue are not considered substantially the same as the underlying collateral. n Multiclass resecuritization products - These securities are multiclass resecuritizations of the cash flows of the underlying collateral, which may be previously issued Level 1 Securitization Products, single-class resecuritization products, multiclass resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae. The activity that most significantly impacts the economic performance of our multiclass resecuritization trusts is typically the initial design and structuring of the trust. Substantially all multiclass resecuritization trusts are created as part of transactions in which an investor or dealer participates in the decisions made during the design and establishment of the trust. As a result, we do not have the unilateral ability to direct the activities of our multiclass resecuritization trusts that most significantly impact the economic performance of those trusts. In addition, unless we retain a portion of the issued multiclass resecuritization products, we do not have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. As a result, we have concluded that we are not the primary beneficiary of our multiclass resecuritization trusts and, therefore, do not consolidate those trusts unless we have the unilateral ability to liquidate the trust. When we purchase a multiclass resecuritization product as an investment in our mortgage-related investments portfolio, we record the security as an investment in debt securities rather than extinguishment of debt since we are investing in the debt securities of a nonconsolidated entity. Similarly, sales of multiclass resecuritization products previously held as investments in our mortgage-related investments portfolio are accounted for as sales of investments in debt securities. See Note 7 for additional information on accounting for investments in debt securities. With the exception of commingled securities, our investments in, and guarantees of, securities issued by resecuritization trusts do not create any incremental exposure to loss because we already guarantee the underlying collateral. As a result, we do not receive any incremental guarantee fees in exchange for our guarantee, and, accordingly, we do not recognize any additional guarantee assets, guarantee obligations, or reserves for guarantee losses related to resecuritization trusts. In a typical multiclass resecuritization, we receive a one-time transaction fee which represents compensation for both the structuring and creation of the securities and for our ongoing administrative responsibilities to service the securities. We recognize the portion of the transaction fee related to creation of the securities immediately in earnings. We defer the portion of the fee related to ongoing administrative responsibilities and amortize it over the life of the associated trust. When we issue commingled resecuritization products, our guarantee of the Fannie Mae securities used as collateral creates incremental exposure to loss because our guarantee covers timely payment of principal and interest on such products from underlying Fannie Mae securities. If Fannie Mae were to fail to make a payment on a Fannie Mae security that we resecuritized, we would be responsible for making the payment. However, we view the likelihood of being required to perform on our guarantee of Fannie Mae securities as remote 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 did not charge an incremental fee for commingled securities issued prior to July 1, 2022; however, effective July 1, 2022, we began to charge a fee for any commingled security issued after that date. CRT Products We transfer credit risk exposure on certain mortgage loans that we own or guarantee using CRT products, including STACR Trust notes. In STACR Trust notes transactions, a trust issues credit-linked notes whose repayments are based on the credit performance of a reference pool of mortgage loans. The trust uses the proceeds from the issuance of the notes to purchase short-term eligible investments and makes periodic payments of principal and interest on the notes to investors. We make payments to the trust to support payment of the interest due on the notes, and we receive payments from the trust that otherwise would have been made to the noteholders to the extent there are credit events on the mortgages in the reference pool. The note balances are reduced by the amount of the payments to us. The trust was designed to create and pass along to its interest holders the variability related to the credit risk of the mortgages in the reference pool. We do not have a variable interest in the risk that the trust was designed to create and pass along to its interest holders or the power to direct the activities that most significantly affect the economic performance of the VIE. As a result, we do not consolidate the trusts used in the STACR Trust note transactions. We account for our obligations to make certain payments to the STACR Trust note VIEs to support payment of the interest due on the notes as derivative instruments. We account for our rights to receive payments from the STACR Trust note VIEs to the extent there are credit events on the mortgages in the reference pool as freestanding credit enhancement contracts. Freestanding contracts are entered into separately and apart from any other financial instrument or in conjunction with some other transaction and are legally detachable and separately exercisable. We recognize the payments we make to transfer credit risk under freestanding credit enhancements, which primarily consist of STACR Trust notes and ACIS transactions in Single-Family, in credit enhancement expense in our consolidated statements of income when they are incurred. We recognize expected recoveries from such transactions in other assets with an offsetting reduction to non-interest expense, at the same time that we recognize an allowance for credit losses on the covered loans, measured on the same basis as the allowance for credit losses on the covered loans. Credit enhancements that are not freestanding contracts are considered when measuring our allowance for credit losses. See Note 6 for additional information on credit enhancements that are not freestanding contracts. Multifamily Securitization Products K Certificates In a typical K Certificate transaction, we sell multifamily loans to a non-Freddie Mac trust that issues senior and subordinate securities, and simultaneously purchase and place the senior securities into a Freddie Mac trust that issues guaranteed K Certificates. In these transactions, we guarantee the senior securities issued by the non-Freddie Mac trust but do not issue or guarantee the subordinate securities. We receive a guarantee fee in exchange for our guarantee. In certain of our K Certificate securitizations, we may also serve as master servicer. However, in contrast to most single-family transactions, the rights to direct loss mitigation activities of the underlying loans and to purchase delinquent loans from the securitization trust are generally held by the investor in the most subordinate remaining securities issued by the non-Freddie Mac trust, and therefore we do not have the power to direct those activities unless we are the investor in the most subordinate remaining securities. We do not typically invest in the subordinate securities issued in our K Certificate transactions. The economic performance of our K Certificate trusts is most significantly affected by the performance of the underlying loans. We do not consolidate our K Certificate securitization trusts that have subordination because we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. When we sell loans in a K Certificate transaction, we derecognize the transferred loans and account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the trusts used in our K Certificate transactions as investments in debt securities. Other Securitization Products We do not consolidate the trusts used to issue our other securitization products when we do not have the ability to direct the activities that most significantly affect the economic performance of the VIE. For those products, we account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the trusts used in our other securitization products as investments in debt securities. CRT Products In Multifamily, we may transfer credit risk on certain mortgage loans that we own or guarantee by entering into SCR Trust note transactions, which are similar to STACR Trust note transactions in Single-Family. We do not consolidate the trusts used in SCR Trust note transactions and account for SCR Trust note transactions in the same manner as we account for STACR Trust note transactions. Assets and Liabilities of Nonconsolidated VIEs The following table presents the carrying amounts and classification of the assets and liabilities recorded on our consolidated balance sheets that relate to our variable interests in VIEs for which we are not the primary beneficiary and with which we were involved in the design and creation and have a significant continuing involvement, our maximum exposure to loss as a result of our involvement with such VIEs, and the total assets of the VIEs. Our involvement with such VIEs primarily consists of guarantees that we have issued to the VIE, some of which are accounted for as derivative instruments, and investments in debt securities issued by the VIE. See Note 5 for additional information on our guarantees to nonconsolidated VIEs. Total assets shown in the table below represents the remaining UPB of the mortgage loans or other noncash financial assets held by the VIE and excludes cash and nonfinancial assets held by the VIE. Maximum exposure to loss shown in the table below is primarily based on the remaining UPB of the guaranteed securities issued by the VIE and represents the contractual amounts that could be lost if the assets of the VIE (including the assets in the related reference pool for CRT products) became worthless at the balance sheet date, without consideration of proceeds from related collateral liquidation and possible recoveries under credit enhancements. We do not believe the maximum exposure to loss from our involvement with nonconsolidated VIEs 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 and available credit enhancements. Table 3.1 - Nonconsolidated VIEs December 31, 2023 Carrying Amounts of the Assets and Liabilities On the Consolidated Balance Sheets Total Assets Maximum Exposure to Loss (In millions) Investment securities Accrued Interest Receivable and Other Assets (1) Liabilities (1) Single-Family: Securitization products $1,272 $172 $427 $30,298 $24,600 Resecuritization products (2) 4,952 67 626 110,320 110,320 CRT products (3) — 92 220 29,126 14 Total Single-Family 6,224 331 1,273 169,744 134,934 Multifamily: Securitization products (4) 5,985 5,082 4,652 360,928 321,262 CRT products (3) — 11 7 1,359 8 Total Multifamily 5,985 5,093 4,659 362,287 321,270 Other — 7 5 117 468 Total $12,209 $5,431 $5,937 $532,148 $456,672 December 31, 2022 Carrying Amounts of the Assets and Liabilities On the Consolidated Balance Sheets Total Assets Maximum Exposure to Loss (In millions) Investment securities Accrued Interest Receivable and Other Assets (1) Liabilities (1) Single-Family: Securitization products $965 $175 $436 $31,614 $25,772 Resecuritization products (2) 5,092 61 659 119,267 119,267 CRT products (3) — 197 52 30,549 105 Total Single-Family 6,057 433 1,147 181,430 145,144 Multifamily: Securitization products (4) 7,808 4,931 4,920 360,869 319,117 CRT products (3) — 2 2 972 — Total Multifamily 7,808 4,933 4,922 361,841 319,117 Other — 8 5 185 435 Total $13,865 $5,374 $6,074 $543,456 $464,696 (1) Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations. (2) Total assets and maximum exposure to loss are based on the UPB of Fannie Mae securities underlying commingled Freddie Mac resecuritization trusts. We exclude noncommingled resecuritization trusts from these amounts as we have already guaranteed the underlying collateral and therefore noncommingled resecuritizations do not involve any incremental assets or create any incremental exposure to credit risk. Total assets exclude $0.1 billion as of both December 31, 2023 and December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization trusts that we have consolidated as we own all of the outstanding securities issued by the VIE. (3) Maximum exposure to loss is based on our expected recovery receivables and excludes our obligations to make certain payments to the VIE to support payment of the interest due on the notes issued by the VIE, which we account for as derivative instruments. The notional value of these derivative instruments is equal to the total assets of the VIE. (4) Includes total assets of $0.3 billion and $0.4 billion as of December 31, 2023 and December 31, 2022, respectively, related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans | Mortgage Loans The table below provides details of the loans on our consolidated balance sheets. Table 4.1 - Mortgage Loans December 31, 2023 December 31, 2022 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Held-for-sale UPB $3,527 $9,905 $13,432 $3,564 $9,544 $13,108 Cost basis and fair value adjustments, net (712) 221 (491) (696) (215) (911) Total held-for-sale loans, net 2,815 10,126 12,941 2,868 9,329 12,197 Held-for-investment UPB 2,996,509 59,203 3,055,712 2,941,505 48,379 2,989,884 Cost basis and fair value adjustments, net (1) 34,627 (291) 34,336 39,896 (71) 39,825 Allowance for credit losses (6,057) (326) (6,383) (7,314) (77) (7,391) Total held-for-investment loans, net (2) 3,025,079 58,586 3,083,665 2,974,087 48,231 3,022,318 Total mortgage loans, net $3,027,894 $68,712 $3,096,606 $2,976,955 $57,560 $3,034,515 (1) Includes ($0.2) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method hedge relationships as of December 31, 2023. (2) Includes $1.8 billion and $1.2 billion of multifamily held-for-investment loans for which we have elected the fair value option as of December 31, 2023 and December 31, 2022, respectively. We own both single-family loans, which are secured by one- to four-unit residential properties, and multifamily loans, which are secured by properties with five or more residential rental units. Our single-family loans are predominantly first lien, fixed-rate loans secured by the borrower's primary residence. We do not typically acquire loans that have experienced more-than-insignificant deterioration in credit quality since origination as of our acquisition date, although we may acquire such loans in connection with certain of our securitization activities or other mortgage-related guarantees. Upon acquisition, we classify a loan as either held-for-investment or held-for-sale. Loans that we have the ability and intent to hold for the foreseeable future, including loans held by consolidated trusts and loans we intend to securitize using an entity we will consolidate, are classified as held-for-investment. Loans that we intend to sell are classified as held-for-sale. Held-for-investment loans for which we have not elected the fair value option are reported on our consolidated balance sheets at their amortized cost basis, net of the allowance for credit losses. The amortized cost basis is based on a loan's outstanding UPB, net of deferred fees and other cost basis adjustments (including unamortized premiums and discounts, fees we receive or pay when we acquire loans, commitment-related derivative basis adjustments, hedge accounting-related basis adjustments, and other pricing adjustments), excluding accrued interest receivable. Accrued interest receivable for both held-for-investment and held-for-sale loans is separately presented on our consolidated balance sheets and excluded for the purposes of disclosure of the amortized cost basis of mortgage loans held-for-investment. Held-for-sale loans for which we have not elected the fair value option are reported at lower-of-cost-or-fair-value determined on an individual loan basis on our consolidated balance sheets. Any excess of a held-for-sale loan's cost over its fair value is recognized as a valuation allowance in investment gains, net on our consolidated statements of income, with subsequent changes in this valuation allowance also being recorded in investment gains, net. Premiums, discounts, and other cost basis adjustments (including lower-of-cost-or-fair-value adjustments) are deferred and not amortized. We elect the fair value option for certain multifamily loans. Loans for which we have elected the fair value option are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value reported in investment gains, net on our consolidated statements of income. All fees, upfront costs, and other cost basis adjustments are recognized in earnings as incurred. Cash flows related to loans originally classified as held-for-investment are classified as either investing activities (e.g., principal repayments) or operating activities (e.g., interest payments received from borrowers included within net income) on our consolidated statements of cash flows. Cash flows related to loans originally classified as held-for-sale are classified as operating activities on our consolidated statements of cash flows. The table below provides details of the UPB of loans we purchased and sold during the periods presented. Table 4.2 - Loans Purchased and Sold Year Ended December 31, (In millions) 2023 2022 2021 Single-Family: Purchases: Held-for-investment loans $299,886 $540,472 $1,215,276 Sales of held-for-sale loans (1) 1,253 2,211 5,514 Multifamily: Purchases: Held-for-investment loans 16,814 25,052 9,363 Held-for-sale loans 29,415 44,997 59,093 Sales of held-for-sale loans (2) 34,034 50,280 70,355 (1) Our sales of single-family loans reflect the sale of single-family seasoned loans. (2) Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates. Reclassifications We reclassify loans from held-for-investment to held-for-sale depending on our intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-investment to held-for-sale, we perform a collectability assessment. When we determine that a loan to be reclassified has experienced more-than-insignificant deterioration in credit quality since origination, the excess of the loan’s amortized cost basis over its fair value is written off against the allowance for credit losses prior to the reclassification. If the charge-off amount exceeds the existing allowance for credit losses amount, an additional provision for credit losses is recognized. Any remaining allowance for credit losses after the charge-off is reversed through provision for credit losses. We reclassify loans from held-for-sale to held-for-investment when we have both the intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-sale to held-for-investment, we reverse the loan’s held-for-sale valuation allowance, if any, and establish an allowance for credit losses as needed. The table below presents the allowance for credit losses or valuation allowance that was reversed or established due to loan reclassifications between held-for-investment and held-for-sale during the periods presented. Table 4.3 - Loan Reclassifications (1) 2023 2022 (In millions) UPB Allowance for Credit Losses Reversed or (Established) Valuation Allowance (Established) or Reversed UPB Allowance for Credit Losses Reversed or (Established) Valuation Allowance (Established) or Reversed Single-Family reclassifications from: Held-for-investment to held-for-sale $1,968 $37 $— $1,231 $30 $— Held-for-sale to held-for-investment (2) 191 16 20 249 15 16 Multifamily reclassifications from: Held-for-investment to held-for-sale 6,760 4 (58) 1,394 2 (4) Held-for-sale to held-for-investment 861 (1) 19 39 — — (1) Amounts exclude reclassifications related to loans for which we have elected the fair value option. (2) Allowance for credit losses established upon loan reclassifications from held-for-sale to held-for-investment to reflect the net amount we expect to collect on the loan. Loans with prior charge-offs may have a negative allowance for credit losses established upon reclassification. Interest Income We recognize interest income on an accrual basis except when we believe the collection of principal and interest in full is not reasonably assured, which generally occurs when a loan is three monthly payments or more past due, at which point we place the loan on non-accrual status unless the loan is well secured and in the process of collection based upon an individual loan assessment. A loan is considered past due if a full payment of principal and interest is not received within one month of its due date. We charge off outstanding accrued interest receivable through interest income when loans are placed on non-accrual status and recognize interest income on a cash basis while a loan is on non-accrual status. Cost basis adjustments on held-for-investment loans are amortized into interest income over the contractual life of the loan using the effective interest method. No amortization is recognized during periods in which a loan is on non-accrual status. A non-accrual loan is returned to accrual status when the collectability of principal and interest in full is reasonably assured. For single-family loans, we generally determine that collectability is reasonably assured when the loan returns to current payment status. For multifamily loans, the collectability of principal and interest is considered reasonably assured based on an analysis of the factors specific to the loan being assessed. Upon a loan's return to accrual status, all previously reversed interest income is recognized and amortization of any basis adjustments into interest income is resumed. The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the period end. Table 4.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual (1) Non-Accrual Amortized Cost Basis Interest Income Recognized (2) (In millions) December 31, 2023 December 31, 2022 Year Ended December 31, 2023 Single-Family: 20- and 30-year or more, amortizing fixed-rate $12,682 $9,307 $256 15-year or less, amortizing fixed-rate 519 427 7 Adjustable-rate and other 257 361 5 Total Single-Family 13,458 10,095 268 Total Multifamily 64 42 3 Total Single-Family and Multifamily $13,522 $10,137 $271 Non-Accrual Amortized Cost Basis Interest Income Recognized (2) (In millions) December 31, 2022 December 31, 2021 Year Ended December 31, 2022 Single-Family: 20- and 30-year or more, amortizing fixed-rate $9,307 $17,013 $172 15-year or less, amortizing fixed-rate 427 844 5 Adjustable-rate and other 361 793 6 Total Single-Family 10,095 18,650 183 Total Multifamily 42 — 2 Total Single-Family and Multifamily $10,137 $18,650 $185 (1) Excludes amounts related to loans for which we have elected the fair value option. (2) Represents the amount of payments received during the period, including those received while the loans were on accrual status, for the held-for-investment loans on non-accrual status as of period end. The table below provides the amount of accrued interest receivable, net presented on our consolidated balance sheets and the amount of accrued interest receivable related to loans on non-accrual status at the end of the periods that was charged off. Table 4.5 - Accrued Interest Receivable, Net and Related Charge-offs Accrued Interest Receivable, Net Accrued Interest Receivable Related Charge-offs (In millions) December 31, 2023 December 31, 2022 Year Ended December 31, 2023 Year Ended December 31, 2022 Single-Family loans $8,833 $7,967 ($232) ($236) Multifamily loans 287 220 (2) — 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 our relief refinance programs) or to sell the property for an amount at or above the balance of the outstanding loan. The tables below present the amortized cost basis of single-family held-for-investment loans by current LTV ratio. Our current LTV ratios are estimates based on available data through the end of each period presented. Table 4.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage December 31, 2023 Year of Origination Total (In millions) 2023 2022 2021 2020 2019 Prior Current LTV Ratio: 20- and 30-year or more, amortizing fixed-rate ≤ 60 $39,500 $93,279 $513,267 $542,449 $94,348 $411,663 $1,694,506 > 60 to 80 105,384 183,251 318,965 95,102 12,402 7,296 722,400 > 80 to 90 55,973 90,785 27,750 1,272 213 262 176,255 > 90 to 100 51,994 23,460 1,542 71 16 77 77,160 > 100 28 912 24 9 5 88 1,066 Total 20- and 30-year or more, amortizing fixed-rate 252,879 391,687 861,548 638,903 106,984 419,386 2,671,387 Current period gross charge-offs (1) — 12 37 43 45 243 380 15-year or less, amortizing fixed-rate ≤ 60 4,221 20,246 121,709 98,338 12,488 56,493 313,495 > 60 to 80 3,973 8,314 4,491 278 19 5 17,080 > 80 to 90 623 509 25 — — — 1,157 > 90 to 100 198 33 1 — — — 232 > 100 1 1 — — — 1 3 Total 15-year or less, amortizing fixed-rate 9,016 29,103 126,226 98,616 12,507 56,499 331,967 Current period gross charge-offs (1) — 1 2 1 — 2 6 Adjustable-rate and other ≤ 60 356 1,650 3,325 1,465 586 12,950 20,332 > 60 to 80 1,153 2,651 1,105 89 25 227 5,250 > 80 to 90 689 1,040 48 3 — 18 1,798 > 90 to 100 317 276 2 — — 8 603 > 100 — 16 — — — 4 20 Total Adjustable-rate and other 2,515 5,633 4,480 1,557 611 13,207 28,003 Current period gross charge-offs (1) — — — — — 1 1 Total for all loan product types by current LTV ratio: ≤ 60 44,077 115,175 638,301 642,252 107,422 481,106 2,028,333 > 60 to 80 110,510 194,216 324,561 95,469 12,446 7,528 744,730 > 80 to 90 57,285 92,334 27,823 1,275 213 280 179,210 > 90 to 100 52,509 23,769 1,545 71 16 85 77,995 > 100 29 929 24 9 5 93 1,089 Total Single-Family loans $264,410 $426,423 $992,254 $739,076 $120,102 $489,092 $3,031,357 Total current period gross charge-offs (1) $— $13 $39 $44 $45 $246 $387 Referenced footnotes are included after the prior period table. December 31, 2022 Year of Origination Total (In millions) 2022 2021 2020 2019 2018 Prior Current LTV Ratio: 20- and 30-year or more, amortizing fixed-rate ≤ 60 $66,153 $394,498 $489,315 $87,188 $38,955 $407,819 $1,483,928 > 60 to 80 158,421 424,141 190,167 28,991 7,870 10,426 820,016 > 80 to 90 79,901 90,006 4,405 569 164 419 175,464 > 90 to 100 86,109 8,911 397 56 24 143 95,640 > 100 2,568 49 6 6 5 156 2,790 Total 20- and 30-year or more, amortizing fixed-rate 393,152 917,605 684,290 116,810 47,018 418,963 2,577,838 15-year or less, amortizing fixed-rate ≤ 60 16,752 119,379 109,685 14,606 5,578 68,240 334,240 > 60 to 80 13,042 22,007 2,503 132 16 16 37,716 > 80 to 90 1,601 368 7 — — 1 1,977 > 90 to 100 570 5 — — — 1 576 > 100 3 — — — — 1 4 Total 15-year or less, amortizing fixed-rate 31,968 141,759 112,195 14,738 5,594 68,259 374,513 Adjustable-rate and other ≤ 60 1,255 2,779 1,524 634 428 15,139 21,759 > 60 to 80 2,322 1,956 214 76 28 445 5,041 > 80 to 90 1,127 186 5 1 1 34 1,354 > 90 to 100 836 11 — — — 14 861 > 100 26 — — — — 9 35 Total Adjustable-rate and other 5,566 4,932 1,743 711 457 15,641 29,050 Total for all loan product types by current LTV ratio: ≤ 60 84,160 516,656 600,524 102,428 44,961 491,198 1,839,927 > 60 to 80 173,785 448,104 192,884 29,199 7,914 10,887 862,773 > 80 to 90 82,629 90,560 4,417 570 165 454 178,795 > 90 to 100 87,515 8,927 397 56 24 158 97,077 > 100 2,597 49 6 6 5 166 2,829 Total Single-Family loans $430,686 $1,064,296 $798,228 $132,259 $53,069 $502,863 $2,981,401 (1) Excludes charge-offs related to accrued interest receivable and advances of pre-foreclosure costs. Multifamily The table below presents the amortized cost basis of our multifamily held-for-investment loans, for which we have not elected the fair value option, by credit quality indicator, based on available data through the end of each period presented. These indicators involve significant management judgment and are defined as follows: n "Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity; n "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses. In addition, this category generally includes loans in forbearance; n "Substandard" has a weakness that jeopardizes the timely full repayment; and n "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions. Table 4.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage December 31, 2023 Year of Origination Total (In millions) 2023 2022 2021 2020 2019 Prior Revolving Loans Category: Pass $13,804 $17,845 $7,430 $6,345 $4,420 $3,254 $2,266 $55,364 Special mention 20 85 28 43 294 106 — 576 Substandard — 33 188 259 223 464 — 1,167 Doubtful — — — — — — — — Total $13,824 $17,963 $7,646 $6,647 $4,937 $3,824 $2,266 $57,107 December 31, 2022 Year of Origination Total (In millions) 2022 2021 2020 2019 2018 Prior Revolving Loans Category: Pass $21,854 $7,638 $6,546 $4,784 $1,077 $2,646 $1,924 $46,469 Special mention — 39 65 232 7 113 — 456 Substandard — 1 3 27 7 131 — 169 Doubtful — — — — — — — — Total $21,854 $7,678 $6,614 $5,043 $1,091 $2,890 $1,924 $47,094 Past Due Status The table below presents the amortized cost basis of our single-family and multifamily held-for-investment loans, for which we have not elected the fair value option, by payment status. We report single-family loans in forbearance as past due during the forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance plan, based on the information reported to us by our servicers. We report multifamily loans in forbearance as current as long as the borrower is in compliance with the forbearance agreement, including the agreed upon repayment plan, even if payments are past due based on the loan's original contractual terms. Table 4.8 - Amortized Cost Basis of Held-for-Investment Loans by Payment Status December 31, 2023 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure (1) Total Three Months or More Past Due, and Accruing Interest Non-Accrual With No Allowance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,627,763 $25,528 $5,787 $12,309 $2,671,387 $— $406 15-year or less, amortizing fixed-rate 329,601 1,589 270 507 331,967 — 4 Adjustable-rate and other 27,317 342 95 249 28,003 — 49 Total Single-Family 2,984,681 27,459 6,152 13,065 3,031,357 — 459 Total Multifamily 57,031 12 — 64 57,107 — 23 Total Single-Family and Multifamily $3,041,712 $27,471 $6,152 $13,129 $3,088,464 $— $482 Referenced footnotes are included after the prior period table. December 31, 2022 (In millions) Current One Month Past Due Two Months Past Due Three Months or (1) Total Three Months or More Past Due, and Accruing Interest Non-Accrual With No Allowance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,541,057 $19,820 $4,603 $12,358 $2,577,838 $3,432 $522 15-year or less, amortizing fixed-rate 372,065 1,590 250 608 374,513 191 9 Adjustable-rate and other 28,262 325 88 375 29,050 30 67 Total Single-Family 2,941,384 21,735 4,941 13,341 2,981,401 3,653 598 Total Multifamily 47,039 13 — 42 47,094 — 42 Total Single-Family and Multifamily $2,988,423 $21,748 $4,941 $13,383 $3,028,495 $3,653 $640 (1) Includes $2.0 billion and $1.6 billion of single-family loans that were in the process of foreclosure as of December 31, 2023 and December 31, 2022, respectively. (2) Loans with no allowance for loan losses primarily represent loans that were previously charged off and for which the amount we expect to collect is sufficiently in excess of the amortized cost to result in recovery of the entire amortized cost basis if the property were foreclosed upon or otherwise subject to disposition. We exclude the amounts of allowance for credit losses on accrued interest receivable and advances of pre-foreclosure costs when determining whether a loan has an allowance for credit losses. At the instruction of FHFA, we purchase single-family loans from trusts when they reach 24 months of delinquency, except for loans that meet certain criteria (e.g., permanently modified or foreclosure referral), which may be purchased sooner. Many delinquent single-family loans are purchased from trusts before they reach 24 months of delinquency under one of the exceptions provided. We must obtain FHFA’s approval to implement changes to our policy to purchase loans from trusts. Loan Restructurings In 1Q 2022, we adopted accounting guidance in ASU 2022-02 that eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, we no longer measure an allowance for credit losses for TDRs we reasonably expect will occur, and we evaluate all loan restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether the restructuring should be accounted for as a new loan or a continuation of the existing loan. We derecognize the existing loan and account for the restructured loan as a new loan if the effective yield on the restructured loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan restructuring does not meet these conditions, we carryforward the existing loan’s amortized cost basis and account for the restructured loan as a continuation of the existing loan. Substantially all of our loan restructurings involving borrowers experiencing financial difficulty are accounted for as a continuation of the existing loan. The discounted cash flow model we use in measuring our Single-Family allowance for credit losses forecasts cash flows we expect to collect using our historical experience, including the effects of our loss mitigation activities involving borrowers experiencing financial difficulty. When we account for a loan restructuring as a continuation of the existing loan, we update the loan’s effective interest rate based on the restructured terms and recognize interest income prospectively using the new effective rate. We also update the prepayment-adjusted effective interest rate used to discount cash flows in measuring our allowance for credit losses to reflect the loan’s restructured terms. As a result, subsequent to our adoption of the accounting guidance that eliminates the recognition and measurement of TDRs, we no longer recognize an allowance for credit losses for the economic concession granted to a borrower for changes in the timing and amount of contractual cash flows when a loan is restructured. However, because we adopted such guidance prospectively, we continue to use the loan's prepayment-adjusted effective interest rate just prior to the restructuring, with no adjustments made to the effective interest rate for changes in the timing of expected cash flows subsequent to the restructuring, for loans that were restructured and accounted for as TDRs prior to our adoption of the guidance and that have not been subsequently modified after our adoption of the guidance. As a result, we continue to measure an allowance for credit losses for the economic concession granted to a borrower for changes in the timing and amount of contractual cash flows for such loans. Single-Family Loan Restructurings We offer several types of restructurings to single-family borrowers that may result in a payment delay, interest rate reduction, term extension, or combination thereof. We do not offer principal forgiveness. We offer the following types of restructurings to single-family borrowers that result in only a payment delay: n Forbearance plans - Arrangements that require reduced or no payments during a defined period that provides borrowers additional time to return to compliance with the original mortgage terms or to implement another type of loan workout option. Borrowers may exit forbearance by repaying all past due amounts thus fully reinstating the loan, paying off the loan in full, or entering into a repayment plan, a payment deferral plan, or a trial period plan pursuant to a loan modification. We offer forbearance of up to 12 months to single-family borrowers experiencing financial difficulty. Borrowers may receive an initial forbearance term of one to six months and, if necessary, one or more forbearance term extensions of one to six months, as long as the delinquency of the mortgage does not exceed 12 months. n Repayment plans - Contractual plans that allow borrowers a specific period of time to return to current status by paying the normal monthly payment plus additional agreed upon delinquent amounts. Repayment plans must have a term greater than one month and less than or equal to 12 months and the monthly repayment plan payment amount must not exceed 150% of the contractual mortgage payment amount. n Payment deferral plans - Arrangements that allow borrowers to return to current status by deferring delinquent principal and interest into a non-interest-bearing principal balance that is due at the earlier of the payoff date, maturity date, or sale of the property. The remaining mortgage term, interest rate, payment schedule, and maturity date remain unchanged, and no trial period plan is required. The number of months of payments deferred varies based upon the type of hardship the borrower is experiencing. In addition, we also offer single-family borrowers loan modifications, which are contractual plans that may involve changing the terms of the loan such as payment delays, interest rate reductions, term extensions, or a combination of these items. Payment delays in our loan modification programs most commonly consist of adding outstanding indebtedness, such as delinquent interest, to the UPB of the loan, and may also include principal forbearance, in which a portion of the principal balance becomes non-interest-bearing and is due at the earlier of the payoff date, maturity date, or sale of the property. Our modification programs generally require completion of a trial period of at least three months prior to receiving the modification. During the loan modification trial period, borrowers make payments that are an estimate of the anticipated modified payment amount, which is generally lower than the amount required by the loan's original contractual terms. As a result, loans in these modifications are granted a delay in the payment due under the original contractual terms during the trial period. We continue to report single-family loans in loan modification trial period plans as delinquent to the extent that payments are past due based on the loan’s original contractual terms. The amortized cost basis of loans in trial period modification plans was $1.7 billion and $1.3 billion as of December 31, 2023 and December 31, 2022, respectively. Most of these loans are 20- and 30-year or more, amortizing fixed-rate loans. Most of our modifications involve a combination of: (1) a payment delay in the form of adding outstanding indebtedness to the UPB of the loan and (2) an interest rate reduction, a term extension, or both. For purposes of the disclosure related to single-family loan restructurings involving borrowers experiencing financial difficulty, we exclude loans that were held-for-sale either at the time of restructuring or at the period end. The table below presents the amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented. Table 4.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (1) 2023 (Dollars in millions) Payment Delay (2) Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Total as % of Class of Financing Receivable (3) Single-Family: 20- and 30-year or more, amortizing fixed-rate $16,774 $4,051 $128 $20,953 0.8 % 15-year or less, amortizing fixed-rate 798 — — 798 0.2 Adjustable-rate and other 179 19 5 203 0.7 Total Single-Family loan restructurings $17,751 $4,070 $133 $21,954 0.7 Referenced footnotes are included after the prior period table. 2022 (Dollars in millions) Payment Delay (2) Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Total as % of Class of Financing Receivable (3) Single-Family: 20- and 30-year or more, amortizing fixed-rate $21,968 $2,810 $6,699 $31,477 1.2 % 15-year or less, amortizing fixed-rate 1,318 16 1 1,335 0.4 Adjustable-rate and other 386 38 104 528 1.8 Total Single-Family loan restructurings $23,672 $2,864 $6,804 $33,340 1.1 (1) Type of loan restructurings reflects the cumulative effects of the loan restructurings received during the period. Includes loan modifications in the period in which the borrower completes the trial period and the loan is permanently modified. (2) Includes $8.3 billion and $12.5 billion related to payment deferral plans for 2023 and 2022, respectively. Also includes forbearance plans, repayment plans, and loan modifications that only involve payment delays. (3) Based on the amortized cost basis as of period end, divided by the total period-end amortized cost basis of the corresponding financing receivable class of single-family held-for-investment loans. The table below shows the financial effect of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented. Table 4.10 – Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (1) 2023 (Dollars in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Weighted-Average Payment Deferral or Principal Forbearance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate 1.0 % 175 $16 15-year or less, amortizing fixed-rate — 0 15 Adjustable-rate and other 1.6 202 17 2022 (Dollars in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Weighted-Average Payment Deferral or Principal Forbearance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate 1.4 % 187 $21 15-year or less, amortizing fixed-rate 0.6 356 23 Adjustable-rate and other 2.3 223 26 (1) Averages are based on payment deferral plans and loan modifications completed during the periods presented. The financial effects of forbearance plans and repayment plans consist of a payment delay of between one and twelve months. In addition, the financial effect of a forbearance plan is included at the time the forbearance plan is completed if the borrower exits forbearance by entering into a payment deferral plan or loan modification. (2) Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans. The following table provides the amortized cost basis of single-family held-for-investment loans that had a payment default (i.e., loans that became two months delinquent) during the periods presented and had been restructured within the previous 12 months preceding the payment default, when the borrower was experiencing financial difficulty at the time of the restructuring. Since we adopted ASU 2022-02 prospectively, single-family held-for-investment loans that were restructured prior to January 1, 2022, the date we adopted such guidance, have been excluded from the disclosures related to loan restructurings. Table 4.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty (1) 2023 (In millions) Payment Delay Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,488 $905 $302 $3,695 15-year or less, amortizing fixed-rate 97 — — 97 Adjustable-rate and other 30 6 6 42 Total Single-Family $2,615 $911 $308 $3,834 2022 (In millions) Payment Delay Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $1,746 $215 $408 $2,369 15-year or less, amortizing fixed-rate 95 — — 95 Adjustable-rate and other 39 5 6 50 Total Single-Family $1,880 $220 $414 $2,514 (1) Excludes forbearance plans and repayment plans as borrowers are typically past due based on the loan's original contractual terms at the time the borrowers enter into these plans. The following table provides the single-family held-for-investment loan performance in the 12 months after a restructuring involving borrowers experiencing financial difficulty. While a single-family loan is in a forbearance plan or repayment plan, payments continue to be due based on the loan |
Guarantees and Other Off-Balanc
Guarantees and Other Off-Balance Sheet Credit Exposures | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees [Abstract] | |
GUARANTEES AND OTHER OFF-BALANCE SHEET CREDIT EXPOSURES | Guarantees and Other Off-Balance Sheet Credit Exposures Our guarantee activities primarily consist of mortgage-related guarantees in which we agree to absorb the credit risk of mortgage loans or other mortgage-related assets. In exchange for providing this guarantee, we receive an upfront or ongoing guarantee fee that is designed to be 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 depend on a number of factors, including our guarantee fee and the actual credit performance of the underlying financial instruments that we have guaranteed. We do not separately recognize guarantees to consolidated VIEs as we have already recognized the assets and liabilities of those VIEs on our consolidated balance sheets. When we issue a guarantee to a nonconsolidated VIE or other third party that exposes us to incremental credit risk, we recognize both a guarantee obligation at fair value and the consideration we receive for providing the guarantee, which typically consists of a guarantee asset that represents the fair value of future guarantee fees. As a practical expedient, the measurement of the fair value of the guarantee obligation is set equal to the consideration we receive to provide the guarantee, and no gain or loss is recognized upon issuance of the guarantee. Subsequently, we recognize changes in the fair value of the guarantee asset in current period earnings and amortize the guarantee obligation into earnings as we are released from risk under the guarantee. We also recognize an allowance for expected credit losses over the contractual period in which we are exposed to credit risk. See Note 6 for additional information on our allowance for credit losses on financial guarantees and other off-balance sheet credit exposures. Guarantee Activities Mortgage-Related Guarantees Nonconsolidated Securitization Products The majority of our mortgage-related guarantees involve securitizations of multifamily mortgage loans where we do not consolidate the securitization trust. In these transactions, we guarantee the principal and interest payments on the senior classes of beneficial interests issued by the securitization trust(s). Our maximum exposure on these guarantees is generally limited to the UPB of the beneficial interests that we have guaranteed. We have credit protection in the form of subordination that will absorb losses prior to us having to absorb losses under our guarantee, thereby reducing our expected credit losses related to such guarantees. See Note 3 for additional information on nonconsolidated VIEs. Other Mortgage-Related Guarantees In certain circumstances, we provide a credit guarantee of mortgage-related assets held by third parties, in exchange for a guarantee fee, without securitizing those assets. These guarantees consist of the following: n Long-term standby commitments of single-family loans which obligate us to purchase the covered loans when they become seriously delinquent. Periodically, certain of our customers seek to terminate long-term standby commitments and simultaneously enter into guarantor swap transactions to obtain our securities backed by many of the same loans. n Guarantees of the timely payment of principal and interest for certain multifamily bonds, which primarily consist of multifamily housing revenue bonds that were issued by HFAs. Our maximum exposure on these guarantees is limited to the UPB of the mortgage-related assets that we have guaranteed. Guarantees of Fannie Mae Securities 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. See Note 3 for additional information on guarantees of Fannie Mae securities. The table below presents information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could be required to make under the guarantee, the liability we have recognized on our consolidated balance sheets for the guarantee, and the maximum remaining term of the guarantee. 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. We do not believe the potential amount of future payments we could be required to make is representative of the actual payments we will be required to make or 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 enhancements. Table 5.1 - Financial Guarantees December 31, 2023 ( Dollars in millions , terms in years) UPB Maximum Exposure Recognized Liability (1) Maximum Remaining Term Single-Family mortgage-related guarantees: Nonconsolidated securitization products (2) $30,289 $24,600 $382 40 Other mortgage-related guarantees 8,692 8,692 161 28 Total Single-Family mortgage-related guarantees 38,981 33,292 543 Multifamily mortgage-related guarantees: Nonconsolidated securitization products (2)(3) $360,928 $321,262 $4,577 36 Other mortgage-related guarantees 10,761 10,761 383 35 Total Multifamily mortgage-related guarantees 371,689 332,023 4,960 Guarantees of Fannie Mae securities (4) $110,320 $110,320 $— 38 Other 117 468 — 30 December 31, 2022 ( Dollars in millions , terms in years) UPB Maximum Exposure Recognized Liability (1) Maximum Remaining Term Single-Family mortgage-related guarantees: Nonconsolidated securitization products (2) $31,604 $25,772 $391 40 Other mortgage-related guarantees 9,476 9,476 203 29 Total Single-Family mortgage-related guarantees 41,080 35,248 594 Multifamily mortgage-related guarantees: Nonconsolidated securitization products (2)(3) $360,869 $319,117 $4,889 37 Other mortgage-related guarantees 10,510 10,510 379 36 Total Multifamily mortgage-related guarantees 371,379 329,627 5,268 Guarantees of Fannie Mae securities (4) $119,267 $119,267 $— 39 Other 185 435 — 29 (1) Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 6 for additional information on our allowance for credit losses on off-balance sheet credit exposures. (2) Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE. (3) Includes UPB of $0.3 billion and $0.4 billion as of December 31, 2023 and December 31, 2022, respectively, related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off. In addition, includes guarantees that are accounted for as derivatives with UPB of $2.1 billion as of both December 31, 2023 and December 31, 2022. (4) Excludes $0.1 billion as of both December 31, 2023 and December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization trusts that we have consolidated as we own all of the outstanding securities issued by the VIE. The table below presents the payment status of the mortgage loans underlying our mortgage-related guarantees. Table 5.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status December 31, 2023 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure Total Single-Family $34,524 $2,172 $827 $1,458 $38,981 Multifamily 369,785 850 98 956 371,689 Total $404,309 $3,022 $925 $2,414 $410,670 December 31, 2022 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure Total Single-Family $36,241 $2,072 $748 $2,019 $41,080 Multifamily 370,911 23 12 433 371,379 Total $407,152 $2,095 $760 $2,452 $412,459 Other Guarantees We also enter into certain transactions that are accounted for as derivative instruments and are also considered guarantees under GAAP. These transactions include our obligation to make certain payments to VIEs to support payment of the interest due on the notes issued by those VIEs in certain CRT transactions, certain interest-rate guarantees related to our securitization and resecuritization products, certain market value guarantees, and guarantees of third-party derivative instruments. These transactions generally provide for no limitation on the maximum potential future payments under the guarantee, and we generally reduce our exposure to such guarantees through separate derivative contracts with third parties. The approximate remaining term of these guarantees varies and in many cases is based on the maturity of the underlying mortgage loans. See Note 9 for additional information on derivative instruments. Indemnifications In connection with certain business transactions, we may provide indemnification to counterparties for claims arising out of breaches of certain obligations (e.g., those arising from representations and warranties) in contracts entered into in the normal course of business. Our assessment is that the risk of any material loss from such a claim for indemnification is remote and there are no significant probable and estimable losses associated with these contracts. In addition, we provided indemnification for litigation defense costs to certain former officers who are subject to ongoing litigation. See Note 17 for information on ongoing litigation. The recognized liabilities on our consolidated balance sheets related to indemnifications were not significant at both December 31, 2023 and December 31, 2022. Other Off-Balance Sheet Credit Exposures In addition to our guarantees, we enter into other agreements that expose us to off-balance sheet credit risk. These agreements may require us to transfer cash before or upon settlement of our contractual obligation. We recognize an allowance for credit losses for those agreements not measured at fair value or otherwise recognized in the financial statements. Most of these commitments expire in less than one year. See Note 6 for additional discussion of our allowance for credit losses on our off-balance sheet credit exposures. The table below presents our other off-balance sheet credit exposures. Table 5.3 - Other Off-Balance Sheet Credit Exposures (In millions) December 31, 2023 December 31, 2022 Mortgage loan purchase commitments (1) $10,378 $9,609 Unsettled securities purchased under agreements to resell, net (2) 22,276 15,890 Other commitments (3) 4,701 6,403 Total $37,355 $31,902 (1) Includes $1.9 billion and $0.5 billion of commitments for which we have elected the fair value option as of December 31, 2023 and December 31, 2022, respectively. Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 9 for additional information on commitments accounted for as derivative instruments. (2) Net of $4.0 billion and $5.6 billion of unsettled securities sold under agreements to repurchase as of December 31, 2023 and December 31, 2022, respectively. (3) Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses For financial assets measured at amortized cost, we recognize an allowance for credit losses that is deducted from or added to the amortized cost basis of the financial asset to present the net amount expected to be collected on the financial asset on the balance sheet. In 1Q 2022, we adopted accounting guidance that eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, we no longer incorporate the expected credit losses for TDRs we reasonably expect will occur in our estimation of the allowance for credit losses. See Note 4 for additional information on the adoption of the new accounting guidance. The table below summarizes changes in our allowance for credit losses. Table 6.1 - Details of the Allowance for Credit Losses December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Single-Family Multifamily Total Beginning balance $7,746 $147 $7,893 $5,440 $78 $5,518 $6,353 $200 $6,553 Provision (benefit) for credit losses (1,172) 300 (872) 1,772 69 1,841 (919) (122) (1,041) Charge-offs (643) — (643) (505) — (505) (1,107) — (1,107) Recoveries collected 144 — 144 148 — 148 197 — 197 Other (1) 327 — 327 891 — 891 916 — 916 Ending balance $6,402 $447 $6,849 $7,746 $147 $7,893 $5,440 $78 $5,518 Components of the ending balance of the allowance for credit losses: Mortgage loans held-for-investment $6,057 $326 $6,383 $7,314 $77 $7,391 $4,913 $34 $4,947 Other (2) 345 121 466 432 70 502 527 44 571 Total ending balance $6,402 $447 $6,849 $7,746 $147 $7,893 $5,440 $78 $5,518 (1) Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications. (2) Primarily includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures. n 2023 vs. 2022 - The benefit for credit losses for 2023 was primarily driven by a credit reserve release in Single-Family due to improvements in house prices. The provision for credit losses for 2022 was primarily driven by a credit reserve build in Single-Family due to deterioration in house prices. n 2022 vs. 2021 - A provision for credit losses for 2022 compared to a benefit for credit losses for 2021 primarily driven by a credit reserve build in Single-Family due to deterioration in house prices. In addition, charge-offs increased in 2023 compared to 2022 due to a higher volume of transfers of single-family loans from held-for-investment to held-for-sale and the lower fair value of these loans as a result of higher mortgage interest rates. Charge-offs decreased in 2022 compared to 2021 due to a decrease in charge-offs of accrued interest receivable during 2022. Allowance for Credit Losses Methodology We recognize changes in the allowance for credit losses through provision or benefit for credit losses on our consolidated statements of income. Mortgage Loans Held-for-Investment Our allowance for credit losses on mortgage loans pertains to single-family and multifamily loans classified as held-for-investment for which we have not elected the fair value option. We measure the allowance for credit losses on a pooled basis when our loans share similar risk characteristics. We record charge-offs in the period in which a loan is deemed uncollectible. Proceeds received in excess of amounts previously written off are recorded as a decrease to non-interest expense on our consolidated statements of income. Single-Family We estimate the allowance for credit losses for single-family loans on a pooled basis using a discounted cash flow model that evaluates a variety of factors to estimate the cash flows we expect to collect. If we determine that foreclosure on the underlying collateral is probable, we measure the allowance for credit losses for single-family loans based upon the fair value of the collateral, less costs to sell, adjusted for estimated proceeds from credit enhancements that are not freestanding contracts. The discounted cash flow model we use to estimate the single-family loan allowance for credit losses forecasts cash flows over the loan’s remaining contractual term, adjusted for expectations of prepayments. As a result, we do not revert to historical loss information for single-family loans. Cash flow estimates are discounted at the loan’s prepayment-adjusted effective interest rate, which is adjusted for projections in the underlying benchmark interest rate for adjustable-rate loans. We project cash flows we expect to collect using our historical experience, such as historical default rates and severity of loss, based on loan characteristics, such as current LTV ratios, delinquency status, geography, and borrowers' credit scores. These cash flow estimates are adjusted for current and forecasted economic conditions, such as current and forecasted interest rates and house price growth rates, and estimated recoveries from loss mitigation activities, credit enhancements that are not freestanding contracts, and disposition of collateral, less estimated disposition costs. Our estimate of expected credit losses is sensitive to changes in forecasted house price growth rates, which affect both the probability of default and severity of expected credit losses, and changes in forecasted interest rates, as declining (increasing) interest rates typically result in higher (lower) expected prepayments and a shorter (longer) estimated loan life, and therefore lower (higher) expected credit losses. Our forecast of house price growth rates leverages an internally based model and uses a nationwide house price growth forecast for the next three years. A Monte Carlo simulation generates many possible house price scenarios for up to 40 years for each MSA. These scenarios are used to estimate loan-level expected future cash flows and credit losses based on each loan’s individual characteristics. Our forecast of interest rates incorporates various interest rate scenarios over the remaining contractual life of the loan based on current interest rates and implied market volatilities. These projections require significant management judgment. We rely on third parties to provide certain model inputs used in our projections. At loan delivery, the seller provides us with loan data, which includes borrower and loan characteristics and underwriting information. Each subsequent month, the servicers provide us with monthly loan-level servicing data, including delinquency and loss information. We review the outputs of our model by considering qualitative factors such as current economic events and other external factors to determine whether the model outputs are consistent with our expectations. Further management adjustments may be necessary to take into consideration the qualitative factors that have occurred but that are not yet reflected in the factors used to derive the model outputs or the uncertainty inherent in our projections. Significant judgment is exercised in making these adjustments. Credit enhancements that are not freestanding contracts are obtained contemporaneously with, and in contemplation of, the origination of a financial instrument, and effectively travel with the financial instrument upon sale. Credit enhancements that are not freestanding contracts include primary mortgage insurance, which provides us with loan-level protection up to a specified percentage. Expected recoveries from credit enhancements that are not freestanding contracts are considered in determining the allowance for loan losses as discussed above, resulting in a reduction in the recognized provision for credit losses by the amount of the expected recoveries. Subsequent to foreclosure and charge-off of the allowance for credit losses, we reclassify expected recoveries from credit enhancements that were not freestanding contracts and were previously offset against the allowance for credit losses as separate receivables. We do not consider potential recoveries from freestanding credit enhancement contracts when measuring our allowance for credit losses. Multifamily We estimate the allowance for credit losses for multifamily loans using a loss-rate method to estimate the net amount of cash flows we expect to collect. The loss-rate method is based on a probability of default and loss given default framework that estimates credit losses by considering a loan’s underlying characteristics and current and forecasted economic conditions. Loan characteristics considered by our model include vintage, loan term, current DSCR, current LTV ratio, occupancy rate, and interest rate hedges. We generally forecast economic conditions over a reasonable and supportable two-year period prior to reverting to historical averages at the model input level over a five-year period, using a linear reversion method. We also consider as model inputs expected prepayments, contractually specified extensions, expected recoveries from collateral posting requirements, and the expected recoveries from credit enhancements that are not freestanding contracts. Our loss rates incorporate published historical commercial loan performance data, which we calibrate for differences between that data and our portfolio experience. Except for cases of fraud and certain other types of borrower defaults, most multifamily loans are nonrecourse to the borrower. As a result, the cash flows of the underlying property (including any credit enhancements that are not freestanding contracts) serve as the primary source of funds for repayment of the loan. For loans where we determined that the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, we measure the allowance for credit losses using the fair value of the underlying collateral, less estimated costs to sell, adjusted for estimated proceeds from credit enhancements that are not freestanding contracts. Factors considered by management in determining whether a borrower is experiencing financial difficulty include the borrower’s current payment status and an evaluation of the underlying property's operating performance as represented by its current DSCR, its available credit enhancements, the current LTV ratio, the management of the underlying property, and the property's geographic location. We review the outputs of our model considering qualitative factors such as current economic events and other external factors to determine whether the model outputs are consistent with our expectations. Further management adjustments may be necessary to take into consideration the qualitative factors that have occurred but that are not yet reflected in the factors used to derive the model outputs. Advances of Pre-foreclosure Costs We may incur expenses related to a mortgage loan subsequent to its original acquisition but prior to foreclosure (pre-foreclosure costs). These expenses are incurred generally to protect or preserve our interest or legal right in or to the property prior to foreclosure, such as property taxes or homeowner's insurance premiums owed by the borrower. Many of these expenses are advanced by the servicer and are reimbursable from the borrower. If the borrower ultimately defaults, we reimburse the servicer for the advances it has made. Upon advance by the servicer, we recognize a receivable for the amounts due from the borrower and a payable for amounts due to the servicer. We recognize an allowance for credit losses for amounts that we do not ultimately expect to collect from the borrower. Off-Balance Sheet Credit Exposures We recognize an allowance for credit losses on off-balance sheet credit exposures for our guarantees that are not measured at fair value and other off-balance sheet arrangements based on expected credit losses over the contractual period in which we are exposed to credit risk through a present contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. We include this allowance for credit losses on off-balance sheet credit exposures within other liabilities on our consolidated balance sheets, with changes recognized through provision or benefit for credit losses on our consolidated statements of income. Our methodologies for estimating the allowance for credit losses on off-balance sheet credit exposures for our Single-Family and Multifamily guarantees are generally consistent with our methodologies for estimating the allowance for credit losses for single-family mortgage loans and multifamily mortgage loans, respectively. We obtain credit enhancements for certain of our guarantees through the creation of unguaranteed subordinated securities issued by nonconsolidated securitization trusts that absorb first losses prior to us having to perform on our guarantee of the senior securities. We consider the effect of subordination and other credit enhancements that are not freestanding contracts when measuring the allowance for credit losses on off-balance sheet credit exposures and, as a result, recognize such an allowance only if expected credit losses exceed the remaining amount of subordination. For many of our guarantees, expected credit losses do not exceed the remaining amount of subordination. We have not recorded an allowance for credit losses on our guarantees of Fannie Mae securities due to the support provided to Fannie Mae by the U.S. government, the importance of Fannie Mae to the liquidity and stability of the U.S. housing market, and the long history of zero credit losses on Fannie Mae securities. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Investment Securities The table below summarizes the fair values of our investments in debt securities by classification. Table 7.1 - Investment Securities (In millions) December 31, 2023 December 31, 2022 Trading securities $38,385 $32,167 Available-for-sale securities 4,890 6,534 Total fair value of investment securities $43,275 $38,701 We currently classify and account for our securities as either available-for-sale or trading. Securities classified as trading are reported at fair value with changes in fair value included in investment gains, net, in our consolidated statements of income. Securities classified as available-for-sale are reported at fair value with changes in fair value included in AOCI, net of taxes. See Note 16 for additional information on how we determine the fair value of securities. We generally record purchases and sales of non-mortgage-related securities on the trade date. We generally record purchases and sales of mortgage-related securities on the expected settlement date, with a corresponding derivative recorded on the trade date. We generally recognize interest income using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities. We recognize interest income using the prospective effective interest method for securities that can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment. Under this method, we recognize as interest income, over the expected life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. We classify the cash flows related to both available-for-sale and trading securities as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities. Trading Securities The table below presents the 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) December 31, 2023 December 31, 2022 Mortgage-related securities $8,113 $8,334 Non-mortgage-related securities 30,272 23,833 Total fair value of trading securities $38,385 $32,167 The table below provides details of our net trading gains (losses). Table 7.3 - Net Trading Gains (Losses) Year Ended December 31, (In millions) 2023 2022 2021 Net trading gains (losses) $440 ($3,531) ($2,394) Less: Net trading gains (losses) on securities sold 105 (1,685) (1,805) Net trading gains (losses) recognized during the period related to securities still held at period end $335 ($1,846) ($589) Available-for-Sale Securities At both December 31, 2023 and December 31, 2022, all available-for-sale securities were mortgage-related securities. The table below provides details of the securities classified as available-for-sale on our consolidated balance sheets. Table 7.4 - Available-for-Sale Securities December 31, 2023 Amortized Gross Unrealized Gains in Other Comprehensive Income Gross Unrealized Fair Value Accrued Interest Receivable (In millions) Agency mortgage-related securities $4,467 $13 ($110) $4,370 $10 Other mortgage-related securities 340 188 (8) 520 3 Total available-for-sale securities $4,807 $201 ($118) $4,890 $13 December 31, 2022 Amortized Gross Unrealized Gains in Other Comprehensive Income Gross Unrealized Fair Value Accrued Interest Receivable (In millions) Agency mortgage-related securities $6,215 $6 ($301) $5,920 $12 Other mortgage-related securities 429 188 (3) 614 3 Total available-for-sale securities $6,644 $194 ($304) $6,534 $15 The fair value of our available-for-sale securities held at December 31, 2023 scheduled to contractually mature after ten years was $1.4 billion, with an additional $2.4 billion scheduled to contractually mature after five years through ten years. The table below presents 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 7.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position December 31, 2023 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Agency mortgage-related securities $374 ($1) $3,006 ($108) Other mortgage-related securities 23 (4) 23 (5) Total available-for-sale securities in a gross unrealized loss position $397 ($5) $3,029 ($113) December 31, 2022 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Agency mortgage-related securities $5,086 ($253) $325 ($48) Other mortgage-related securities 46 (3) 5 — Total available-for-sale securities in a gross unrealized loss position $5,132 ($256) $330 ($48) At December 31, 2023, the gross unrealized losses relate to 171 securities. Gains and losses on the sale of securities are included in investment gains, net, including those gains (losses) reclassified into earnings from AOCI. We use the specific identification method for determining the cost basis of a security in computing the gain or loss. The table below summarizes the total proceeds, gross realized gains and gross realized losses from sales of available-for-sale securities. Table 7.6 - Total Proceeds, Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities Year Ended December 31, (In millions) 2023 2022 2021 Total Proceeds $3,164 $1,371 $22,907 Gross realized gains 9 34 540 Gross realized losses (183) (10) (60) Net realized gains (losses) ($174) $24 $480 Non-Cash Investing and Financing Activities During the years ended December 31, 2023, December 31, 2022, and December 31, 2021, we recognized $1.7 billion, $9.0 billion, and $34.8 billion, respectively, of investments in securities in exchange for the issuance of debt of consolidated trusts through partial sales of commingled single-class resecuritization products that were previously consolidated. During the years ended December 31, 2023, December 31, 2022, and December 31, 2021, we derecognized $4.8 billion, $13.3 billion, and $1.1 billion respectively, of mortgage-related securities and debt of consolidated trusts where we were no longer deemed the primary beneficiary. During the year ended December 31, 2023, we purchased $4.3 billion and sold $4.4 billion of non-mortgage-related securities that were traded, but not settled at December 31, 2023. We settled our purchase and sale obligations during the first quarter of 2024. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | Debt The table below summarizes the balances of total debt on our consolidated balance sheets. Table 8.1 - Total Debt December 31, (In millions) 2023 2022 Debt of consolidated trusts $3,041,927 $2,979,070 Debt of Freddie Mac: Short-term debt 5,976 7,712 Long-term debt 160,443 159,050 Total debt of Freddie Mac 166,419 166,762 Total debt $3,208,346 $3,145,832 Debt securities that we issue are classified as either debt of consolidated trusts held by third parties or debt of Freddie Mac. We issue debt of Freddie Mac to fund our operations. Our debt is reported at amortized cost, with the exception of certain debt for which we elected the fair value option. Deferred items, including premiums, discounts, issuance costs, and hedge accounting-related basis adjustments, are reported as a component of total debt. These items are amortized and reported through interest expense using the effective interest method over the contractual life of the related indebtedness. Amortization of premiums, discounts, and issuance costs begins at the time of debt issuance. Amortization of hedge accounting-related basis adjustments begins upon the discontinuation of the related hedge relationship. We elected the fair value option on debt that contains embedded derivatives and certain other debt issuances. Changes in the fair value of these debt obligations are recorded in investment gains, net, with any upfront costs and fees incurred or received in exchange for the issuance of the debt being recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. For additional information on our election of the fair value option, see Note 16 . When we repurchase or call outstanding debt securities, we recognize the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of investment gains, net. Contemporaneous transfers of cash between us and a creditor in connection with the issuance of a new debt security and satisfaction of an existing debt security are accounted for as either an extinguishment or a modification of an existing debt security. If the debt securities have substantially different terms, the transaction is accounted for as an extinguishment of the existing debt security. The issuance of a new debt security is recorded at fair value, fees paid to the creditor are expensed as incurred, and fees paid to third parties are deferred and amortized into interest expense over the life of the new debt security using the effective interest method. If the terms of the existing debt security and the new debt security are not substantially different, the transaction is accounted for as a modification of the existing debt. Fees paid to the creditor are deferred and amortized into interest expense over the life of the modified debt security using the effective interest method and fees paid to third parties are expensed as incurred. We also engage in transactions whereby we enter into an agreement to sell and subsequently repurchase (or purchase and subsequently resell) agency securities. When these transactions involve securities issued by consolidated entities, they are treated as issuances and extinguishments of debt. The Purchase Agreement limits the par value of our aggregate indebtedness, which may restrict the amount of debt we are allowed to issue to fund our operations. See Note 2 for information regarding restrictions on the amount of our indebtedness under the Purchase Agreement. Debt of Consolidated Trusts Debt of consolidated trusts held by third parties represent our liability to third parties that hold beneficial interests in our consolidated trusts. Debt of consolidated trusts held by third parties are subject to prepayment risk as their payments are based upon the performance of the underlying mortgage loans that may be prepaid by the related mortgage borrower at any time generally without penalty. The table below summarizes the debt of consolidated trusts based on underlying loan product type. Table 8.2 - Debt of Consolidated Trusts December 31, 2023 December 31, 2022 (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: 20-and 30-year or more, fixed-rate 2024 - 2061 $2,603,100 $2,640,550 3.06 % 2023 - 2061 $2,507,235 $2,550,137 2.76 % 15-year or less, fixed-rate 2024 - 2039 326,242 331,291 2.20 2023 - 2038 367,844 374,339 2.14 Adjustable-rate and other 2024 - 2054 23,251 23,749 3.93 2023 - 2053 23,561 24,153 3.04 Total Single-Family 2,952,593 2,995,590 2,898,640 2,948,629 Multifamily 2024 - 2053 47,300 46,337 3.35 2023 - 2052 30,927 30,441 2.66 Total debt of consolidated trusts $2,999,893 $3,041,927 $2,929,567 $2,979,070 (1) Includes $2.1 billion and $1.9 billion at December 31, 2023 and December 31, 2022, respectively, of debt of consolidated trusts that represents the fair value of debt for which the fair value option was elected. (2) The effective interest rate for debt of consolidated trusts was 2.73% and 2.39% as of December 31, 2023 and December 31, 2022, respectively. Short-Term Debt Discount notes, Reference Bills securities, and medium-term notes are unsecured general corporate obligations. Discount notes and Reference Bills securities pay only principal at maturity. 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 offset payables related to securities sold under agreements to repurchase against receivables related to securities purchased under agreements to resell on our consolidated balance sheets, when such amounts meet the conditions for offsetting in the accounting guidance. See Note 10 for additional information on securities sold under agreements to repurchase. Certain medium-term notes that have original maturities of one year or less are classified as short-term debt for purposes of this presentation. The table below summarizes the balances and effective interest rates for short-term debt. Table 8.3 - Short-Term Debt December 31, 2023 December 31, 2022 (Dollars in millions) Par Value Carrying Amount Weighted Average Effective Rate Par Value Carrying Amount Weighted Average Effective Rate Short-term debt: Discount notes and Reference Bills ® $6,032 $5,976 5.39 % $6,826 $6,822 3.71 % Medium-term notes — — — 890 890 1.81 Total short-term debt $6,032 $5,976 5.39 % $7,716 $7,712 3.49 % Long-Term Debt The table below summarizes our long-term debt. Table 8.4 - Long-Term Debt December 31, 2023 December 31, 2022 (Dollars in millions) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Long-term debt: Fixed-rate: Medium-term notes — callable 2024 - 2050 $139,344 $139,257 3.13 % 2023 - 2050 $103,584 $103,528 1.96 % Medium-term notes — non-callable 2024 - 2028 1,573 1,574 0.98 2023 - 2028 2,747 2,747 0.73 Reference Notes securities — non-callable 2025 - 2032 18,162 18,209 3.19 2023 - 2032 49,801 49,832 1.76 SCR debt notes 2031 - 2032 82 83 13.00 2031 - 2032 90 93 13.00 Variable-rate: Medium-term notes — callable 2024 - 2028 1,869 1,867 4.81 2023 - 2027 4,691 4,689 3.95 Medium-term notes — non-callable 2026 47 47 8.10 2026 47 47 8.10 STACR 2024 - 2042 2,095 2,006 11.45 2023 - 2042 4,562 4,448 8.79 Zero-coupon: Medium-term notes — non-callable 2024 - 2039 4,836 3,100 6.17 2023 - 2039 4,841 2,913 6.11 Other 2047 - 2053 — 121 0.84 2047 - 2052 — 137 0.82 Hedging-related basis adjustments N/A (5,821) N/A (9,384) Total long-term debt $168,008 $160,443 3.30 % $170,363 $159,050 2.20 % (1) Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.4 billion and $1.1 billion at December 31, 2023 and December 31, 2022, respectively, of long-term debt that represents the fair value of debt for which the fair value option was elected. (2) Based on carrying amount. A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date. The table below summarizes the contractual maturities of long-term debt securities at December 31, 2023. Table 8.5 - Contractual Maturities of Long-Term Debt and Debt Securities (In millions) Amounts Annual Maturities Long-term debt (excluding STACR and SCR debt notes): 2024 $41,244 2025 61,187 2026 15,645 2027 12,530 2028 10,947 Thereafter 24,278 Debt of consolidated trusts, STACR, and SCR debt notes (1) 3,002,070 Total 3,167,901 Net discounts, premiums, debt issuance costs, hedge-related, and other basis adjustments (2) 34,469 Total debt of consolidated trusts, STACR, SCR and long-term debt $3,202,370 (1) Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty. (2) Other basis adjustments primarily represent changes in fair value on debt where we have elected the fair value option. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | Derivatives We analyze the interest-rate sensitivity of financial assets and liabilities across a variety of interest-rate scenarios based on market prices, models, and economics. We use derivatives primarily to hedge interest-rate sensitivity mismatches between our financial assets and liabilities. We designate certain derivatives as hedging instruments in qualifying hedge accounting relationships. Interest-rate risk management derivatives that are not designated in qualifying hedge accounting relationships are economic hedges of financial instruments measured at fair value on a recurring basis or of other transactions or instruments that expose us to interest-rate risk. When we use derivatives to mitigate our exposures, we consider a number of factors, including cost, exposure to counterparty credit risk, and our overall risk management strategy. We principally use interest-rate swaps, purchased or written options (including swaptions), and exchange-traded futures in our interest-rate risk management activities. We routinely enter into commitments to purchase and sell investments in mortgage-related securities, purchase and sell mortgage loans, and purchase and extinguish or issue debt of our consolidated trusts. Most of these commitments meet the definition of a derivative and, therefore, are subject to the accounting guidance for derivatives and hedging. We also enter into certain types of guarantees that are accounted for as derivatives. These guarantees primarily include our obligation to support payment of the interest due on the notes issued by VIEs used in certain CRT transactions. Derivatives are reported at their fair value on our consolidated balance sheets. Changes in fair value on derivatives not in qualifying fair value hedge relationships are recorded as investment gains, net, on our consolidated statements of income. Derivatives in a net asset position, including net derivative interest receivable or payable, are reported as derivative assets, net, which is included in other assets on our consolidated balance sheets. Similarly, derivatives in a net liability position, including net derivative interest receivable or payable, are reported as derivative liabilities, net, which is included in other liabilities on our consolidated balance sheets. We offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Non-cash collateral held is not recognized on our consolidated balance sheets as we do not obtain effective control over the collateral, and non-cash collateral posted is not derecognized from our consolidated balance sheets as we do not relinquish effective control over the collateral. Therefore, non-cash collateral held or posted is not presented as an offset against derivative assets or derivative liabilities on our consolidated balance sheets. See Note 10 for additional information on our collateralized arrangements. We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We generally elect to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in earnings. On our consolidated statements of cash flows, cash flows related to derivatives are classified as either operating activities (such as periodic settlements of interest payments) or investing activities (such as variation margin payments and cash flows related to the acquisition and termination of derivatives) depending on the nature of the activity. Cash flows related to physical settlement of forward commitments accounted for as derivative instruments are classified as operating, investing, or financing activities depending on the financial instruments to which they relate. Hedge Accounting We apply fair value hedge accounting to certain single-family mortgage loans where we hedge the changes in fair value of these loans attributable to the designated benchmark interest rate, using interest-rate swaps. We also apply fair value hedge accounting to certain issuances of debt where we hedge the changes in fair value of the debt attributable to the designated benchmark interest rate, using interest-rate swaps. Under the portfolio layer method fair value hedge accounting strategy, 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 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. We apply hedge accounting to qualifying hedge relationships. A qualifying hedge relationship exists when changes in the fair value of a derivative hedging instrument are expected to be highly effective in offsetting changes in the fair value of the hedged item attributable to the risk being hedged during the term of the hedge relationship. No amounts have been excluded from the assessment of hedge effectiveness. To assess hedge effectiveness, we use a statistical regression analysis. At inception of the hedge relationship, we prepare formal contemporaneous documentation of our risk management objective and strategies for undertaking the hedge. If a hedge relationship qualifies for fair value hedge accounting, all changes in fair value of the derivative hedging instrument, including interest accruals, are recognized in the same consolidated statements of 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 and interest expense, respectively, along with the changes in the fair value of the respective derivative hedging instruments. Changes in the fair value of the hedged item attributable to the risk being hedged are recognized as a cumulative basis adjustment against the mortgage loans and debt. The cumulative basis adjustments are amortized to the same consolidated statements of income line item used to present the changes in fair value of the hedged item using the effective interest method considering the contractual terms of the hedged item, with amortization beginning no later than the period in which hedge accounting was discontinued. Derivative Assets and Liabilities at Fair Value The table below presents the notional value and fair value of derivatives reported on our consolidated balance sheets. Table 9.1 - Derivative Assets and Liabilities at Fair Value December 31, 2023 December 31, 2022 Notional or Derivative Assets Derivative Liabilities Notional or Contractual Amount Derivative Assets Derivative Liabilities (In millions) Not designated as hedges Interest-rate risk management derivatives: Swaps $351,193 $1,638 ($462) $480,824 $1,762 ($526) Written options 48,227 — (1,746) 46,101 — (1,857) Purchased options (1) 89,790 4,251 — 92,010 4,302 — Futures 132,982 — — 182,330 — — Total interest-rate risk management derivatives 622,192 5,889 (2,208) 801,265 6,064 (2,383) Mortgage commitment derivatives 26,911 43 (10) 29,354 12 (11) CRT-related derivatives (2) 30,578 — (228) 31,647 — (55) Other 14,572 3 (567) 14,426 2 (624) Total derivatives not designated as hedges 694,253 5,935 (3,013) 876,692 6,078 (3,073) Designated as fair value hedges Interest-rate risk management derivatives: Swaps 172,202 276 (5,658) 181,298 321 (7,847) Total derivatives designated as fair value hedges 172,202 276 (5,658) 181,298 321 (7,847) Receivables (payables) 17 (36) 35 (25) Netting adjustments (3) (5,742) 7,834 (6,127) 10,187 Total derivative portfolio, net $866,455 $486 ($873) $1,057,990 $307 ($758) (1) Includes swaptions on credit indices with a notional or contractual amount of $6.4 billion and $10.1 billion at December 31, 2023 and December 31, 2022, respectively, and a fair value of $1.0 million and $2.0 million at December 31, 2023 and December 31, 2022, respectively. (2) Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements. (3) Represents counterparty netting and cash collateral netting. Derivative Counterparty Credit Risk Cleared derivatives refer to 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. Exchange-traded derivatives refer to standardized interest-rate futures contracts and options on futures contracts. OTC derivatives refer to those derivatives that are bilaterally negotiated with counterparties and settled with those counterparties. Our use of cleared derivatives, exchange-traded derivatives, and OTC derivatives exposes us to counterparty credit risk in the event our counterparties fail to meet their contractual obligations. We are required to post margin in connection with our derivatives transactions. The use of cleared and exchange-traded derivatives decreases our credit risk exposure to individual counterparties because a central counterparty is substituted for individual counterparties. OTC derivatives expose us to the credit risk of individual counterparties because transactions are executed and settled between us and each counterparty, exposing us to potential losses if a counterparty fails to meet its obligations. Our use of interest-rate swaps and option-based derivatives is subject to internal credit and legal reviews. On an ongoing basis, we review the credit fundamentals of all of our derivative counterparties, clearinghouses, and clearing members to confirm that they continue to meet our internal risk management standards. The majority of our interest-rate swaps are subject to the central clearing requirement. Changes in the value of open exchange- traded contracts and cleared derivatives are settled daily via payments made through the clearinghouse. We net our exposure to cleared derivatives by clearinghouse and clearing member. A downgrade in our credit ratings could cause the clearing members we use for our cleared and exchange-traded derivatives to demand additional collateral. Many of our transactions involving forward purchase and sale commitments of mortgage-related securities utilize the MBSD/ FICC as a clearinghouse. As a clearing member of the clearinghouse, we post margin to the MBSD/FICC and are exposed to the counterparty credit risk of the organization (including its clearing members). In June 2022, the FICC amended the MBSD clearing rules to provide that variation margin payments constitute daily settlement of exposure and not a component of the required fund deposit. As a result, for our forward purchase and sale commitments of mortgage-related securities transacted with MBSD/FICC, we changed the characterization of variation margin payments from posting of margin collateral to settlements. In the event a clearing member fails and causes losses to the MBSD/FICC clearing system, we could be subject to loss, as members are generally required to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the MBSD/FICC may execute in the future. We use master netting and collateral agreements to reduce our credit risk exposure to our OTC derivative counterparties for interest-rate swap and option-based derivatives. Master netting agreements provide for the netting of amounts receivable and payable from an individual counterparty, as well as posting of collateral in the form of cash, Treasury securities or agency mortgage-related or debt securities, or a combination of both by either the counterparty or us, depending on which party is in a liability position. Although it is our practice not to repledge assets held as collateral, these agreements may allow us or our counterparties to repledge all or a portion of the collateral. We have master netting agreements in place with all of our OTC derivative counterparties. On a daily basis, the market value of each counterparty's derivatives outstanding is calculated to determine the amount of our net credit exposure, which is equal to the market value of derivatives in a net gain position by counterparty after giving consideration to collateral posted. In the event a counterparty defaults on its obligations under the derivatives agreement and the default is not remedied in the manner prescribed in the agreement, we have the right under the agreement to sell the collateral. As a result, our use of master netting and collateral agreements reduces our exposure to our counterparties in the event of default. A significant majority of our net uncollateralized exposure to OTC derivative counterparties is concentrated with four counterparties, all of which were investment grade as of December 31, 2023. We regularly review the market value of securities pledged as collateral and derivative counterparty collateral posting thresholds, where applicable, in an effort to manage our exposure to losses. For certain OTC derivatives, the amount of collateral we pledge to counterparties related to our derivative instruments is determined after giving consideration to our credit rating. The aggregate fair value of our OTC derivative instruments containing credit-risk related contingent features, netted by counterparty, that were in a liability position was zero on December 31, 2023 and was $27 million on December 31, 2022 for which we posted cash and non-cash collateral of $17 million in the normal course of business. A downgrade in our credit ratings may trigger additional collateral requirements related to these OTC derivative instruments. If a downgrade in our credit ratings had triggered additional collateral requirements related to these OTC derivative instruments on December 31, 2023 and December 31, 2022, the maximum additional collateral we would have been required to post to our counterparties would be zero and $10 million, respectively. The table below presents offsetting and collateral information related to derivatives which are subject to enforceable master netting agreements or similar arrangements. Table 9.2 - Offsetting of Derivatives December 31, 2023 December 31, 2022 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (In millions) OTC derivatives $6,165 ($7,866) $6,385 ($10,230) Cleared and exchange-traded derivatives 13 (36) 28 (25) Mortgage commitment derivatives 47 (10) 19 (11) Other 3 (795) 2 (679) Total derivatives 6,228 (8,707) 6,434 (10,945) Counterparty netting (4,210) 4,210 (4,468) 4,468 Cash collateral netting (1) (1,532) 3,624 (1,659) 5,719 Net amount presented in the consolidated balance sheets 486 (873) 307 (758) Gross amount not offset in the consolidated balance sheets (2) (366) 47 (218) 31 Net amount $120 ($826) $89 ($727) (1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset. (2) Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on the consolidated balance sheets. Gains and Losses on Derivatives The table below presents the gains and losses on derivatives not designated in qualifying hedge relationships. These amounts are reported on our consolidated statements of income as investment gains, net. Table 9.3 - Gains and Losses on Derivatives Year Ended December 31, (In millions) 2023 2022 2021 Not designated as hedges Interest-rate risk management derivatives: Swaps $359 $970 $1,007 Written options 170 (903) ($77) Purchased options (335) 1,794 ($716) Futures 197 2,249 $235 Total interest-rate risk management derivatives fair value gains (losses) 391 4,110 449 Mortgage commitment derivatives 17 2,743 713 CRT-related derivatives (1) (176) (172) 9 Other 11 (225) (20) Total derivatives not designated as hedges fair value gains (losses) $243 $6,456 $1,151 (1) Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements. Fair Value Hedges The table below presents the effects of fair value hedge accounting by consolidated statements of income line item, 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 9.4 - Gains and Losses on Fair Value Hedges Year Ended December 31, 2023 2022 2021 (In millions) Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in our consolidated statements of income in which the effects of fair value hedges are recorded: $105,363 ($86,821) $83,458 ($65,453) $61,527 ($43,947) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 671 — (5,817) — (457) — Derivatives designated as hedging instruments (854) — 5,000 — 529 — Interest accruals on hedging instruments 948 — (294) — (433) — Discontinued hedge related basis adjustments amortization 198 — (79) — (1,884) — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (3,080) — 7,130 — 2,698 Derivatives designated as hedging instruments — 3,084 — (7,267) — (2,895) Interest accruals on hedging instruments — (4,065) — (1,053) — 931 Discontinued hedge related basis adjustment amortization — (377) — (8) — 55 The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective balance sheet line item. Table 9.5 - Cumulative Basis Adjustments Due to Fair Value Hedging December 31, 2023 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Portfolio Layer Method (In millions) Total Under the Portfolio Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $1,115,454 ($2,253) ($220) ($2,033) $59,786 $11,670 Mortgage loans held-for-sale 128 1 — 1 — — Debt (143,407) 5,821 — 29 — — December 31, 2022 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Portfolio Layer Method (In millions) Total Under the Portfolio Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $1,108,098 ($3,122) ($959) ($2,163) $79,070 $11,516 Mortgage loans held-for-sale 67 1 — 1 — — Debt (142,511) 9,384 — 123 — — |
Collateralized Agreements
Collateralized Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
COLLATERALIZED AGREEMENTS AND OFFSETTING ARRANGEMENTS | NOTE 10 Collateralized Agreements Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase 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 and we reasonably expect the borrower to continue to replenish the collateral to meet the requirements of the contract. As of December 31, 2023, all of our securities purchased under agreements to resell were fully collateralized. We utilize the GSD/FICC as a clearinghouse to transact many of our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. As a clearing member of GSD/FICC, we are required to post initial and variation margin payments and are exposed to the counterparty credit risk of GSD/FICC (including its clearing members). In the event a clearing member fails and causes losses to the GSD/FICC clearing system, we could be subject to the loss of the margin that we have posted to the GSD/FICC. Moreover, our exposure could exceed that amount, as members are generally required to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the GSD/FICC may execute in the future. We provide financing to investors in Freddie Mac securities to increase liquidity and expand the investor base for those securities. These transactions differ from the securities purchased under agreements to resell that we use for liquidity purposes as the counterparties we face may not be major financial institutions and we are exposed to greater counterparty credit risk for these institutions. As of both December 31, 2023 and December 31, 2022, $1.1 billion of our securities purchased under agreements to resell were used to provide financing to investors in Freddie Mac securities. 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 the transferor does not relinquish effective control over the securities transferred. These agreements may allow our counterparties to repledge all or a portion of the collateral. We offset payables related to securities sold under agreements to repurchase against receivables related to securities purchased under agreements to resell when such amounts meet the conditions for balance sheet offsetting. The table below presents offsetting and collateral information related to securities purchased under agreements to resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or similar arrangements. Table 10.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities December 31, 2023 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $105,393 ($10,245) $95,148 ($95,148) $— Liabilities: Securities sold under agreements to repurchase (10,245) 10,245 — — — Referenced footnote is included after the prior period table. December 31, 2022 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $99,286 ($11,991) $87,295 ($87,295) $— Liabilities: Securities sold under agreements to repurchase (11,991) 11,991 — — — (1) For securities purchased under agreements to resell, includes $104.2 billion and $54.7 billion of collateral that we had the right to repledge as of December 31, 2023 and December 31, 2022, respectively. We repledged $0.4 billion and less than $0.1 billion of collateral at December 31, 2023 and December 31, 2022, respectively. The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities. Table 10.2 - Remaining Contractual Maturity December 31, 2023 (In millions) Overnight and Continuous 30 days or Less After 30 days Through 90 days Greater Than Total Securities sold under agreements to repurchase $— $10,245 $— $— $10,245 December 31, 2022 (In millions) Overnight and Continuous 30 days or Less After 30 days Through 90 days Greater Than Total Securities sold under agreements to repurchase $— $11,991 $— $— $11,991 Collateral Pledged The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge. Table 10.3 - Collateral in the Form of Securities Pledged December 31, 2023 (In millions) Derivatives Securities Sold Under Agreements to Repurchase Other (1) Total Trading securities $1,866 $3,666 $2,370 $7,902 Other assets — 4,555 — 4,555 Total securities pledged $1,866 $8,221 $2,370 $12,457 December 31, 2022 (In millions) Derivatives Securities Sold Under Agreements to Repurchase Other (1) Total Trading securities $1,533 $2,910 $1,347 $5,790 Other assets — 6,543 — 6,543 Total securities pledged $1,533 $9,453 $1,347 $12,333 Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | Stockholders' Equity and Earnings Per Share Senior Preferred Stock Pursuant to the Purchase Agreement described in Note 2 , we issued one million shares of senior preferred stock to Treasury on September 8, 2008, in partial consideration of Treasury's commitment to provide funds to us. Shares of the senior preferred stock have a par value of $1 and have a stated value and initial liquidation preference of $1 billion, or $1,000 per share. The liquidation preference of the senior preferred stock is subject to adjustment. See Note 2 for a detailed discussion of the liquidation preference of the senior preferred stock. 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 of Directors. See Note 2 for additional information concerning our senior preferred stock dividends. The senior preferred stock is senior to our common stock and all other outstanding series of our preferred stock, as well as any capital stock we issue in the future, as to both dividends and rights upon liquidation. The senior preferred stock provides that we may not, at any time, declare or pay dividends on, make distributions with respect to, redeem, purchase or acquire, or make a liquidation payment with respect to, any common stock or other securities ranking junior to the senior preferred stock unless: n Full cumulative dividends on the outstanding senior preferred stock (including any unpaid dividends added to the liquidation preference) have been declared and paid in cash and n All amounts required to be paid with the net proceeds of any issuance of capital stock for cash (as described below) have been paid in cash. Shares of the senior preferred stock are not convertible. Shares of the senior preferred stock have no general or special voting rights, other than those set forth in the certificate of designation for the senior preferred stock or otherwise required by law. The consent of holders of at least two-thirds of all outstanding shares of senior preferred stock is generally required to amend the terms of the senior preferred stock or to create any class or series of stock that ranks prior to or on parity with the senior preferred stock. We are not permitted to redeem the senior preferred stock prior to the termination of Treasury's funding commitment set forth in the Purchase Agreement; however, we are permitted to pay down the liquidation preference of the outstanding shares of senior preferred stock to the extent of accrued and unpaid dividends previously added to the liquidation preference and not previously paid down and quarterly commitment fees previously added to the liquidation preference and not previously paid down. Pursuant to the January 2021 Letter Agreement, we are permitted to issue common stock with aggregate gross proceeds of up to $70 billion after Treasury's exercise in full of its warrant to acquire 79.9% of our common stock and resolution of currently pending material litigation related to our conservatorship and the Purchase Agreement, and we are permitted to use the net proceeds of such issuance(s) to build capital. If we issue any other shares of capital stock for cash while the senior preferred stock is outstanding, the net proceeds of such issuances must be used to pay down the liquidation preference of the senior preferred stock; however, the liquidation preference of each share of senior preferred stock may not be paid down below $1,000 per share prior to the termination of Treasury's funding commitment. Following the termination of Treasury's funding commitment, we may pay down the liquidation preference of all outstanding shares of senior preferred stock at any time, in whole or in part. If, after termination of Treasury's funding commitment, we pay down the liquidation preference of each outstanding share of senior preferred stock in full, the shares will be deemed to have been redeemed as of the payment date. The table below provides a summary of our senior preferred stock outstanding at December 31, 2023. Table 11.1 - 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 Adjustments: 2008 1.00 1.00 $1.00 $1,000 $1,000 2017 — — — N/A 3,000 2019 — — — N/A 3,674 2020 — — — N/A 7,217 2021 — — — N/A 11,420 2022 — — — N/A 9,919 2023 — — — N/A 9,431 Total non-draw adjustments 1.00 1.00 1.00 45,661 Draw Adjustments: 2008 — — — N/A 13,800 2009 — — — N/A 36,900 2010 — — — N/A 12,500 2011 — — — N/A 7,971 2012 — — — N/A 165 2018 — — — N/A 312 Total draw adjustments — — — 71,648 Total senior preferred stock 1.00 1.00 $1.00 $117,309 No cash was received from Treasury under the Purchase Agreement in 2023 because we had positive net worth at December 31, 2022, March 31, 2023, June 30, 2023, and September 30, 2023 and, consequently, FHFA did not request a draw on our behalf in 2023. At December 31, 2023, our assets exceeded our liabilities under GAAP; therefore, no draw is being requested from Treasury under the Purchase Agreement. Common Stock Warrant Pursuant to the Purchase Agreement described in Note 2 , on September 7, 2008, we issued a warrant to purchase common stock to Treasury, in partial consideration of Treasury's commitment to provide funds to us. The warrant may be exercised in whole or in part at any time on or before September 7, 2028, by delivery to us of a notice of exercise, payment of the exercise price of $0.00001 per share, and the warrant. If the market price of one share of our common stock is greater than the exercise price, then, instead of paying the exercise price, Treasury may elect to receive shares equal to the value of the warrant (or portion thereof being canceled) pursuant to the formula specified in the warrant. Upon exercise of the warrant, Treasury may assign the right to receive the shares of common stock issuable upon exercise to any other person. We account for the warrant in permanent equity. At issuance on September 7, 2008, we recognized the warrant at fair value, and we do not recognize subsequent changes in fair value while the warrant remains classified in equity. We recorded an aggregate fair value of $2.3 billion for the warrant as a component of additional paid-in-capital. We derived the fair value of the warrant using a modified Black-Scholes model. If the warrant is exercised, the stated value of the common stock issued will be reclassified to common stock on our consolidated balance sheets. The warrant was determined to be in-substance non-voting common stock, because the warrant's exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock). As a result, the shares associated with the warrant are included in the computation of basic and diluted earnings per share. The weighted average shares of common stock for the years ended December 31, 2023, 2022, and 2021 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. Preferred Stock We have the option to redeem our preferred stock on specified dates, at their redemption price plus dividends accrued through the redemption date. However, without the consent of Treasury, we are restricted from making payments to purchase or redeem preferred stock as well as paying any preferred dividends, other than dividends on the senior preferred stock. All 24 classes of preferred stock are perpetual and non-cumulative, and carry no significant voting rights or rights to purchase additional Freddie Mac stock or securities. Costs incurred in connection with the issuance of preferred stock are charged to additional paid-in capital. The table below provides a summary of our preferred stock outstanding at their redemption values at December 31, 2023. Table 11.2 - Preferred Stock ( In millions , except redemption price per share) Issue Date Shares Authorized Shares Outstanding Total Par Value Redemption Price per Share Total Outstanding Balance Redeemable On or After OTCQB Symbol Preferred stock: 1996 Variable-rate (1)(2) April 26, 1996 5.00 5.00 $5.00 $50.00 $250 June 30, 2001 FMCCI 5.81% October 27, 1997 3.00 3.00 3.00 50.00 150 October 27, 1998 (3) 5% March 23, 1998 8.00 8.00 8.00 50.00 400 March 31, 2003 FMCKK 1998 Variable-rate (1)(4) September 23 and 29, 1998 4.40 4.40 4.40 50.00 220 September 30, 2003 FMCCG 5.10% September 23, 1998 8.00 8.00 8.00 50.00 400 September 30, 2003 FMCCH 5.30% October 28, 1998 4.00 4.00 4.00 50.00 200 October 30, 2000 (3) 5.10% March 19, 1999 3.00 3.00 3.00 50.00 150 March 31, 2004 (3) 5.79% July 21, 1999 5.00 5.00 5.00 50.00 250 June 30, 2009 FMCCK 1999 Variable-rate (5) November 5, 1999 5.75 5.75 5.75 50.00 287 December 31, 2004 FMCCL 2001 Variable-rate (6) January 26, 2001 6.50 6.50 6.50 50.00 325 March 31, 2003 FMCCM 2001 Variable-rate (1)(7) March 23, 2001 4.60 4.60 4.60 50.00 230 March 31, 2003 FMCCN 5.81% March 23, 2001 3.45 3.45 3.45 50.00 173 March 31, 2011 FMCCO 6% May 30, 2001 3.45 3.45 3.45 50.00 173 June 30, 2006 FMCCP 2001 Variable-rate (8) May 30, 2001 4.02 4.02 4.02 50.00 201 June 30, 2003 FMCCJ 5.70% October 30, 2001 6.00 6.00 6.00 50.00 300 December 31, 2006 FMCKP 5.81% January 29, 2002 6.00 6.00 6.00 50.00 300 March 31, 2007 (3) 2006 Variable-rate (1)(9) July 17, 2006 15.00 15.00 15.00 50.00 750 June 30, 2011 FMCCS 6.42% July 17, 2006 5.00 5.00 5.00 50.00 250 June 30, 2011 FMCCT 5.90% October 16, 2006 20.00 20.00 20.00 25.00 500 September 30, 2011 FMCKO 5.57% January 16, 2007 44.00 44.00 44.00 25.00 1,100 December 31, 2011 FMCKM 5.66% April 16, 2007 20.00 20.00 20.00 25.00 500 March 31, 2012 FMCKN 6.02% July 24, 2007 20.00 20.00 20.00 25.00 500 June 30, 2012 FMCKL 6.55% September 28, 2007 20.00 20.00 20.00 25.00 500 September 30, 2017 FMCKI 2007 Fixed-to-floating rate (1)(10) December 4, 2007 240.00 240.00 240.00 25.00 6,000 December 31, 2012 FMCKJ Total, preferred stock 464.17 464.17 $464.17 $14,109 (1) On May 11, 2023, we posted fallback information on our legacy LIBOR-indexed securities, including the classes of our Preferred Stock that used either three-month LIBOR or 12-month LIBOR as their reference rates. Beginning on July 1, 2023, those classes transitioned from three-month LIBOR and 12-month LIBOR to spread-adjusted three-month CME Term SOFR and spread-adjusted 12-month CME Term SOFR, respectively. (2) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 9.00%. (3) Issued through private placement. (4) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 7.50%. (5) Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. Optional redemption on December 31, 2004 and on December 31 every five years thereafter. (6) Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every two years thereafter. (7) Dividend rate resets on April 1 every year based on spread-adjusted 12-month CME Term SOFR minus 0.20%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every year thereafter. (8) Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. Optional redemption on June 30, 2003 and on June 30 every two years thereafter. (9) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 0.50% but not less than 4.00% . (10) Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of spread-adjusted three-month CME Term SOFR plus 4.16% per annum; or (b) 7.875% per annum. Optional redemption on December 31, 2012 and on December 31 every five years thereafter . Stock-Based Compensation Following the implementation of the conservatorship in September 2008, we suspended the operation of and/or ceased making grants under our stock-based compensation plans. Under the Purchase Agreement, we cannot issue any new options, rights to purchase, participations or other equity interests without Treasury's prior approval. We did not repurchase or issue any of our common shares or non-cumulative preferred stock during 2023 and 2022. At both December 31, 2023 and December 31, 2022, no RSUs or stock options were outstanding. There were 41,160 shares of restricted stock outstanding at both December 31, 2023 and December 31, 2022. Earnings Per Share Basic earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares for the period. The weighted average common shares 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. We deduct dividends or increases in liquidation preference attributable to the senior preferred stock from net income attributable to common stockholders in the period in which such amounts are determinable. Our diluted earnings per common share is the same as our basic earnings per common share because we had no common equivalent shares outstanding during the periods presented which could have had a dilutive or antidilutive effect. Dividends and Dividend Restrictions We did not declare or pay any dividends in 2023, 2022, and 2021 on our common stock, senior preferred stock, or any other outstanding series of Freddie Mac preferred stock. Our payment of dividends is subject to the following restrictions: n Restrictions Relating to the Conservatorship - The Conservator has prohibited us from paying any dividends on our common stock or on any series of our preferred stock (other than the senior preferred stock). FHFA has instructed our Board of Directors that it should consult with and obtain the approval of FHFA before taking actions involving dividends. In addition, FHFA has adopted a regulation prohibiting us from making capital distributions during conservatorship, except as authorized by the Director of FHFA. n Restrictions Under the Purchase Agreement - The Purchase Agreement prohibits us and any of our subsidiaries from declaring or paying any dividends on Freddie Mac equity securities (other than with respect to the senior preferred stock or warrant) without the prior written consent of Treasury. n Restrictions Under the GSE Act - Under the GSE Act, FHFA has authority to prohibit capital distributions, including payment of dividends, if we fail to meet applicable capital requirements. However, our capital requirements have been suspended during conservatorship. n Restrictions Under our Charter - Without regard to our capital classification, we must obtain prior written approval of FHFA to make any capital distribution that would decrease total capital to an amount less than the risk-based capital level or that would decrease core capital to an amount less than the minimum capital level. As noted above, our capital requirements have been suspended during conservatorship. n Restrictions Relating to Preferred Stock - Payment of dividends on our common stock is also subject to the prior payment of dividends on our 24 series of preferred stock and one series of senior preferred stock, representing an aggregate of 464,170,000 shares and 1,000,000 shares outstanding, respectively, as of December 31, 2023. Payment of dividends on all outstanding preferred stock, other than the senior preferred stock, is subject to the prior payment of dividends on the senior preferred stock. Delisting of Common Stock and Preferred Stock from NYSE On July 8, 2010, we delisted our common stock and 20 previously listed classes of preferred stock from the NYSE as directed by our Conservator. Our common stock and the classes of preferred stock that were previously listed on the NYSE are traded exclusively in the OTCQB Marketplace. Shares of our common stock trade under the ticker symbol FMCC . We expect that our common stock and the previously listed classes of preferred stock will continue to trade in the OTCQB Marketplace so long as market makers demonstrate an interest in trading the common and preferred stock. |
Net Interest Income
Net Interest Income | 12 Months Ended |
Dec. 31, 2023 | |
Components of Net Interest Income [Abstract] | |
Net Interest Income | Net Interest Income The table below presents the components of net interest income per our consolidated statements of income. Table 12.1 - Components of Net Interest Income Year Ended December 31, (In millions) 2023 2022 2021 Interest income Mortgage loans $96,985 $79,826 $59,130 Investment securities 1,571 1,640 2,261 Securities purchased under agreements to resell 6,135 1,718 48 Other 672 274 88 Total interest income 105,363 83,458 61,527 Interest expense Debt of consolidated trusts (76,703) (61,404) (42,209) Debt of Freddie Mac: Short-term debt (789) (238) — Long-term debt (9,329) (3,811) (1,738) Total interest expense (86,821) (65,453) (43,947) Net interest income 18,542 18,005 17,580 (Provision) benefit for credit losses 872 (1,841) 1,041 Net interest income after benefit (provision) for credit losses $19,414 $16,164 $18,621 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes Income Tax Expense Total income tax expense includes: n Current income tax expense, which represents the amount of federal tax paid or payable to (or refundable from) the Internal Revenue Service, including interest and penalties and amounts accrued for unrecognized tax benefits, if any, and n Deferred income tax expense, which represents the net change in the deferred tax asset or liability balance during the year, including any change in the valuation allowance. The table below presents the components of our federal income tax expense for the past three years. We are exempt from state and local income taxes. Table 13.1 - Federal Income Tax Expense Year Ended December 31, (In millions) 2023 2022 2021 Current income tax expense ($1,003) ($1,749) ($2,617) Deferred income tax expense (1,658) (528) (473) Total income tax expense ($2,661) ($2,277) ($3,090) The table below presents the reconciliation between our federal statutory income tax rate and our effective tax rate for the past three years. Table 13.2 - Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate Year Ended December 31, 2023 2022 2021 (Dollars in millions) Amount Percent Amount Percent Amount Percent Statutory corporate tax rate ($2,772) 21.0 % ($2,437) 21.0 % ($3,192) 21.0 % Tax-exempt interest 10 (0.1) 7 (0.1) 20 (0.2) Tax credits 242 (1.8) 190 (1.6) 133 (0.9) Valuation allowance 16 (0.1) 18 (0.2) (11) 0.1 Other (157) 1.2 (55) 0.5 (40) 0.3 Effective tax rate ($2,661) 20.2 % ($2,277) 19.6 % ($3,090) 20.3 % Deferred Tax Assets, Net We use the asset and liability method of accounting for income taxes for financial reporting purposes. Under this method, deferred tax assets and liabilities are recognized based upon the expected future tax consequences of existing temporary differences between the financial reporting and the tax reporting basis of assets and liabilities using enacted statutory tax rates as well as tax net operating loss and tax credit carryforwards, if any. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. The realization of our net deferred tax assets is dependent upon the generation of sufficient taxable income. The table below presents the balance of significant deferred tax assets and liabilities at December 31, 2023 and December 31, 2022. The valuation allowance relates to capital loss carryforwards included in Other items, net that we expect to expire unused. Table 13.3 - Deferred Tax Assets and Liabilities (In millions) December 31, 2023 December 31, 2022 Deferred tax assets: Deferred fees $1,821 $2,197 Basis differences related to derivative instruments 1,042 1,745 Credit related items and allowance for loan losses 863 1,457 Basis differences related to assets held-for-investment and held-for-sale 696 1,549 Other items, net 439 178 Total deferred tax assets 4,861 7,126 Deferred tax liabilities: Basis differences related to fair value hedge accounting (749) (1,315) Other items, net (18) — Total deferred tax liabilities (767) (1,315) Valuation allowance (18) (34) Deferred tax assets, net $4,076 $5,777 Valuation Allowance A valuation allowance is recorded to reduce the net deferred tax asset when it is more likely than not that all or part of our tax benefits will not be realized. On a quarterly basis, we determine whether a valuation allowance is necessary. In doing so, we consider all evidence available, both positive and negative, in determining whether, based on the weight of the evidence, it is more likely than not that the net deferred tax asset will be realized. We are not permitted to consider in our analysis the impacts proposed legislation may have on our business because the timing and certainty of those actions are unknown and beyond our control. Based on all positive and negative evidence available at December 31, 2023, we determined that it is more likely than not that our net deferred tax assets, except for the deferred tax asset related to our capital loss carryforwards, will be realized. A valuation allowance of $18 million has been recorded against our capital loss carryforward deferred tax asset. Unrecognized Tax Benefits We recognize a tax position taken or expected to be taken (and any associated interest and penalties) if it is more likely than not that it will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. We measure the tax position at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We evaluated all income tax positions and determined that there were no uncertain tax positions that required reserves as of December 31, 2023. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | Segment Reporting As shown in the table below, we have two reportable segments, Single-Family and Multifamily. Segment Description Single-Family Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment. Multifamily Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk. Segment Allocations and Results Our measure of segment profit and loss for each segment is net income and comprehensive income calculated using the same accounting policies we use to prepare our general purpose financial statements in conformity with GAAP. The results of each reportable segment include directly attributable revenues and expenses. We allocate interest expense and other funding and hedging-related costs and returns on certain investments to each reportable segment using a funds transfer pricing process. We fully allocate to each reportable segment administrative expenses and other centrally-incurred costs that are not directly attributable to a particular segment using various methodologies depending on the nature of the expense. As a result, the sum of each income statement line item for the two reportable segments is equal to that same income statement line item for the consolidated entity. The table below presents the financial results for our Single-Family and Multifamily segments. Table 14.1 - Segment Financial Results Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Single-Family Multifamily Total Single-Family Multifamily Total Single-Family Multifamily Total (In millions) Net interest income $17,657 $885 $18,542 $17,067 $938 $18,005 $16,273 $1,307 $17,580 Non-interest income Guarantee income 103 1,512 1,615 109 674 783 114 918 1,032 Investment gains, net 296 411 707 1,280 689 1,969 361 2,385 2,746 Other income 211 154 365 295 212 507 479 114 593 Non-interest income 610 2,077 2,687 1,684 1,575 3,259 954 3,417 4,371 Net revenues 18,267 2,962 21,229 18,751 2,513 21,264 17,227 4,724 21,951 (Provision) benefit for credit losses 1,172 (300) 872 (1,772) (69) (1,841) 919 122 1,041 Non-interest expense (8,118) (784) (8,902) (7,148) (671) (7,819) (7,075) (718) (7,793) Income before income tax expense 11,321 1,878 13,199 9,831 1,773 11,604 11,071 4,128 15,199 Income tax expense (2,282) (379) (2,661) (1,929) (348) (2,277) (2,251) (839) (3,090) Net income 9,039 1,499 10,538 7,902 1,425 9,327 8,820 3,289 12,109 Other comprehensive income (loss), net of taxes and reclassification adjustments 10 156 166 (24) (318) (342) (379) (110) (489) Comprehensive income $9,049 $1,655 $10,704 $7,878 $1,107 $8,985 $8,441 $3,179 $11,620 We measure total assets for our reportable segments based on the mortgage portfolio for each segment. We operate our business in the U.S. 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 U.S. and its territories. The table below presents total assets for our Single-Family and Multifamily segments. Table 14.2 - Segment Assets (In millions) December 31, 2023 December 31, 2022 Single-Family $3,038,910 $2,986,045 Multifamily 440,797 429,302 Total segment assets 3,479,707 3,415,347 Reconciling items (1) (198,731) (207,014) Total assets per consolidated balance sheets $3,280,976 $3,208,333 (1) |
Concentration of Credit and Oth
Concentration of Credit and Other Risks | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT AND OTHER RISKS | Concentration of Credit and Other Risks Concentrations of credit risk may arise when we do business with a number of customers or counterparties that engage in similar activities or have similar economic characteristics that make them vulnerable in similar ways to changes in industry conditions, which could affect their ability to meet their contractual obligations. Concentrations of credit risk may also arise when there are a limited number of counterparties in a certain industry. Based on our assessment of business conditions that could affect our financial results, we have determined that concentrations of credit risk exist among certain borrowers (including geographic concentrations), loan sellers and servicers, credit enhancement providers, and other investment counterparties. In the sections below, we discuss our concentration of credit risk for each of the groups to which we are exposed. For a discussion of our derivative counterparties, as well as related master netting and collateral agreements, see Note 9 . For a discussion of securities purchased under agreements to resell and other collateralized arrangements, see Note 10 . Single-Family Mortgage Portfolio Single-family borrowers are primarily affected by house prices and interest rates, which are influenced by economic factors. Geographic concentrations may increase the exposure of our portfolio to credit risk, as regional economic conditions may affect a borrower's ability to repay and the underlying property value. The table below summarizes the concentration by geographic area of our Single-Family mortgage portfolio. See Note 3 , Note 4 , Note 5 , and Note 6 for additional information about credit risk associated with single-family loans that we hold or guarantee. Table 15.1 - Concentration of Credit Risk of Our Single-Family Mortgage Portfolio December 31, 2023 (Dollars in millions) Portfolio UPB (1) % of Portfolio SDQ Rate Region (2) : West $910,597 30 % 0.43 % Northeast 703,581 23 0.64 Southeast 530,617 17 0.58 Southwest 451,271 15 0.54 North Central 442,593 15 0.54 Total $3,038,659 100 % 0.55 State: California $515,267 17 % 0.42 Texas 212,800 7 0.57 Florida 200,169 7 0.65 New York 132,432 4 0.93 Illinois 113,806 4 0.69 All other 1,864,185 61 0.52 Total $3,038,659 100 % 0.55 (1) Excludes UPB of loans underlying certain securitization products for which data was not available. (2) Multifamily Mortgage Portfolio Numerous factors affect the credit risk related to multifamily borrowers, including effective rents paid and capitalization rates for the mortgaged property. Effective rents paid vary among geographic regions of the United States. Geographic concentrations may increase the exposure of our portfolio to credit risk, as regional economic conditions may affect a multifamily borrower's ability to repay and the underlying property value. The a verage UPB for multifamily loans is significantly larger than for single-family loans and, therefore, individual defaults for multifamily borrowers can result in more significant losses. The table below summarizes the concentration by geographic area of our Multifamily mortgage portfolio. Table 15.2 - Concentration of Credit Risk of Our Multifamily Mortgage Portfolio December 31, 2023 (Dollars in millions) Portfolio UPB % of Portfolio Delinquency Rate (1) Region (2)(3) : West $109,815 25 % 0.16 % Northeast 107,326 24 0.52 Southwest 91,406 21 0.26 Southeast 88,762 20 0.10 North Central 43,488 10 0.40 Total $440,797 100 % 0.28 State (3) : California $58,186 13 % 0.07 Texas 56,231 13 0.28 Florida 38,440 9 0.03 New York 33,815 8 1.13 Georgia 18,178 4 0.01 All other 235,947 53 0.27 Total $440,797 100 % 0.28 (1) Based on loans two monthly payments or more delinquent or in foreclosure. (2) 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); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI). (3) The UPB of loans collateralized by properties located in multiple regions or states are reported entirely in the region or state with the largest underlying collateral UPB as of origination. In the Multifamily mortgage portfolio, concentration of credit risk depends on the legal structure of the investments we hold. Our exposure to credit risk in our senior subordinate securitization products is minimal, as the expected credit risk is generally absorbed by the subordinate tranches, which are typically sold to third-party investors. As a result, our Multifamily mortgage credit risk is primarily related to loans that have not been securitized. See Note 3 , Note 4 , Note 5 , and Note 6 for additional information about credit risk associated with multifamily loans that we hold or guarantee. Single-Family Sellers and Servicers We acquire a significant portion of our Single-Family loan purchase volume from several large sellers. Our top 10 sellers provided approximately 55% of our Single-Family purchase volume, including two sellers that each provided 10% or more of our Single-Family purchase volume during 2023. We purchase single-family loans from both depository and non-depository sellers. Non-depository institutions may not have the same financial strength or operational capacity, or be subject to the same level of regulatory oversight, as large depository institutions. Our top five non-depository sellers provided approximately 41% of our Single-Family purchase volume during 2023. If we discover that the representations or warranties related to a loan were breached (i.e., that contractual standards were not followed), we can exercise certain contractual remedies to mitigate our actual or potential credit losses. These contractual remedies may include, but are not limited to, the ability to require the seller or servicer to repurchase the loan at its current UPB, reimburse us for losses realized with respect to the loan after consideration of any other recoveries, and/or indemnify us. Our current remedies framework provides for the categorization of loan origination defects for loans with settlement dates on or after January 1, 2016. Among other items, the framework provides that "significant defects" may result in a repurchase request or a repurchase alternative, such as recourse or indemnification. Under our current selling and servicing representation and warranty framework for our mortgage loans, we relieve sellers of repurchase obligations for breaches of certain selling representations and warranties for certain types of loans, including: n Loans that have established an acceptable payment history for 36 months (12 months for relief refinance loans) of consecutive, on-time payments after purchase, subject to certain exclusions and n Loans that have satisfactorily completed a quality control review. Solely for the purpose of determining whether the acceptable payment history requirements are met, payments due during the COVID-19-related forbearance period are considered to have been made on time, provided that the mortgage was reported by the servicer as having entered into a COVID-19-related forbearance plan between March 13, 2020 and October 31, 2023 and met certain other criteria as described in our Guide. An independent dispute resolution process for alleged breaches of selling or servicing representations and warranties on our loans allows for a neutral third party to render a decision on demands that remain unresolved after the existing appeal and escalation processes have been exhausted. As of December 31, 2023, the UPB of loans subject to our repurchase requests issued to our Single-Family sellers and servicers was approximately $0.5 billion (this figure includes repurchase requests for which appeals were pending). During 2023, we recovered amounts with respect to $1.5 billion in UPB of loans subject to our repurchase requests. The ultimate amounts of recovery payments we receive from seller/servicers related to their repurchase obligations may be significantly less than the amount of our estimates of potential exposure to losses. Our expected credit losses for exposure to seller/servicers for their repurchase obligations are considered in our allowance for credit losses. See Note 6 for further information. We are also exposed to the risk that servicers might fail to service loans in accordance with the contractual requirements, resulting in increased credit losses. For example, our servicers have an active role in our loss mitigation efforts, and we, therefore, have exposure to them to the extent a decline in their performance results in a failure to realize the anticipated benefits of the loss mitigation plans. Since we do not have our own servicing operation, if our servicers lack appropriate controls, experience a failure in their controls, or experience an operating disruption in their ability to service loans, our business and financial results could be adversely affected. Significant portions of our single-family loans are serviced by several large servicers. Our top 10 servicers serviced approximately 53% of our Single-Family mortgage portfolio, including one servicer that serviced 10% or more of our Single-Family mortgage portfolio as of December 31, 2023. We utilize both depository and non-depository servicers for single-family loans. Some of these non-depository servicers service a large share of our loans. As of December 31, 2023, approximately 25% of our Single-Family mortgage portfolio, excluding loans for which we do not exercise control over the associated servicing, was serviced by our five largest non-depository servicers, on a combined basis. We routinely monitor the performance of our largest non-depository servicers. For our mortgage-related securities, we guarantee the payment of principal and interest, and when the underlying borrowers do not make their mortgage payments, our Guide generally requires Single-Family servicers to advance the missed mortgage interest payments for up to 120 days. After this time, Freddie Mac will make the missed mortgage principal and interest payments until the mortgages are no longer held by the securitization trust. In addition to principal and interest payments, borrowers are also responsible for other expenses such as property taxes and homeowner's insurance premiums. When borrowers do not pay these expenses, our Guide generally requires Single-Family servicers to advance the funds for these expenses in order to protect or preserve our interest in or legal right to the properties. These advances are ultimately collectible from the borrowers. If the borrowers reperform through loan workout activities, the missed payments and incurred expenses will be collected from them. We will reimburse the servicers for the advanced amounts when uncollected from the borrowers at completion of foreclosures or foreclosure alternatives. On August 17, 2022, FHFA and Ginnie Mae issued a joint announcement of their updated minimum financial eligibility requirements for Enterprise seller/servicers and Ginnie Mae issuers. Freddie Mac announced the updated changes on September 21, 2022. The new requirements contain changes related to incorporating enhanced definitions of capital and liquidity, reducing the procyclicality of the current liquidity requirements, and incorporating lessons learned from the pandemic. They also include higher supplemental requirements applicable only to large non-depositories, defined as non-depositories having $50 billion or more of total single-family servicing UPB, as well as a new origination liquidity requirement for sellers that originate greater than $1 billion in single-family first lien mortgages in the most recent calendar year. The majority of the requirements became effective on September 30, 2023. Multifamily Sellers and Servicers We acquire a significant portion of our Multifamily loan purchase and guarantee volume from several large sellers. Our top 10 sellers provided approximately 74% of our Multifamily purchase and guarantee volume, including three sellers that each provided 10% or more of our Multifamily purchase and guarantee volume during 2023. Significant portions of our multifamily loans are serviced by several large servicers. Our top 10 servicers serviced approximately 78% of our Multifamily mortgage portfolio, including three servicers that each serviced 10% or more of our Multifamily mortgage portfolio as of December 31, 2023. Multifamily loans utilize both primary and master servicers. Primary servicers service unsecuritized mortgage loans and are also typically engaged by master servicers to service on their behalf the mortgage loans underlying securitizations. For a majority of our K Certificate securitizations, we utilize one of three large financial depository institutions as master servicer. For our other securitization products and a smaller number of K Certificate securitizations, we serve as master servicer. Multifamily primary servicers discussed above present potential operational risk and impact to the borrowers if the servicing needs to be transferred to another servicer. We also rely on master servicers of our multifamily securitization transactions to advance funds in the event of payment shortfalls, including principal and interest payments related to loans in forbearance. In instances where payment shortfalls occur, the master servicer is required to make advances as long as such advances have not been deemed unrecoverable. For multifamily loans purchased and held in our mortgage-related investments portfolio, the primary servicers are not required to advance funds in the event of payment shortfalls and, therefore, do not present significant counterparty credit risk from this source. Credit Enhancement Providers We have counterparty credit risk relating to the potential insolvency of, or nonperformance by, mortgage insurers that insure single-family loans we purchase or guarantee. We also have similar exposure to insurers and reinsurers through our ACIS and other insurance transactions where we purchase insurance policies as part of our CRT activities. We evaluate the recovery and collectability from mortgage insurers as part of the estimate of our allowance for credit losses. See Note 6 for additional information. As of December 31, 2023, mortgage insurers provided primary mortgage insurance coverage with maximum loss limits of $165.7 billion for $637.0 billion of UPB in connection with our Single-Family mortgage 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 other types of insurance. Changes in our expectations related to recovery and collectability from our credit enhancement providers may affect our estimates of expected credit losses, perhaps significantly. The table below summarizes the concentration of mortgage insurer counterparties who provided 10% or more of our overall primary mortgage insurance coverage. Table 15.3 - Primary Mortgage Insurer Concentration Mortgage Insurance Coverage (1) Mortgage Insurer December 31, 2023 Mortgage Guaranty Insurance Corporation 18 % Arch Mortgage Insurance Company 18 Radian Guaranty Inc. 17 Essent Guaranty, Inc. 17 Enact 16 National Mortgage Insurance Corporation 14 Total 100 % (1) Coverage amounts exclude coverage primarily related to certain loans for which we do not control servicing, and may include coverage provided by affiliates and subsidiaries of the counterparty. As part of our ACIS transactions, we regularly obtain insurance coverage from global 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. 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. 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 businesses, which helps diversify their risk exposure. Other Investment 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 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 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 December 31, 2023, including amounts related to our consolidated VIEs, the balance in our other investments portfolio was $147.2 billion. The balance consists primarily of cash, securities purchased under agreements to resell, U.S. Treasury securities, cash deposited with the Federal Reserve Bank of New York, and secured lending activities. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
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. Valuation Risk and Controls Over Fair Value Measurements Valuation risk is the risk that fair values used for financial disclosures, risk metrics, and performance measures do not reasonably reflect market conditions and prices. We designed our control processes so that our fair value measurements are appropriate and reliable, that they are based on observable inputs where possible, and that our valuation approaches are consistently applied and the assumptions and inputs are reasonable. Our control processes provide a framework for segregation of duties and oversight of our fair value methodologies, techniques, validation procedures, and results. Groups within our Finance Division, independent of our business functions, execute and validate the valuation processes and are responsible for determining the fair values of the majority of our financial assets and liabilities. In determining fair value, we consider the credit risk of our counterparties in estimating the fair values of our assets and our own credit risk in estimating the fair values of our liabilities. The fair values determined by our Finance Division are further verified by an independent group within our ERM Division. The independent validation procedures performed by the ERM Division are intended to monitor that the prices we receive from third parties are consistent with our observations of market activity, and that fair value measurements developed using internal data reflect the assumptions that a market participant would use in pricing our assets and liabilities. These validation procedures include performing a daily price review and a monthly independent verification of fair value measurements through independent modeling, analytics, and comparisons to other market source data, if available. If we are unable to validate the reasonableness of a given price, we ultimately do not use that price for fair value measurements on our consolidated financial statements. These procedures are risk-based and are executed before we finalize the prices used in preparing our fair value measurements for our financial statements. In addition to performing the validation procedures noted above, the ERM Division provides independent risk governance over all valuation processes by establishing and maintaining a corporate-wide valuation risk policy. The ERM Division also independently reviews significant judgments, methodologies, and valuation techniques to monitor compliance with established policies. Our Valuation Risk Committee, which includes representation from our business lines, the ERM Division, and the Finance Division, provides senior management's governance over valuation processes, methodologies, controls, and fair value measurements. Identified exceptions are reviewed and resolved through the verification process and reviewed at the Valuation Risk Committee. Where models are employed to assist in the measurement and verification of fair values, changes made to those models during the period are reviewed and approved according to the corporate model change governance process, with material changes reviewed at the Valuation Risk Committee. Inputs used by models are regularly updated for changes in the underlying data, assumptions, valuation inputs, and market conditions and are subject to the valuation controls noted above. Use of Third-Party Pricing Data in Fair Value Measurement Many of our valuation techniques use, either directly or indirectly, data provided by third-party pricing services or dealers. The techniques used by these pricing services and dealers to develop the prices generally are either: n A comparison to recent transactions involving the instrument or transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; or n Industry-standard modeling, such as a discounted cash flow model. The prices provided by the pricing services and dealers reflect their observations and assumptions related to market activity, including risk premiums and liquidity adjustments. The models and related assumptions used by the pricing services and dealers are owned and managed by them and, in many cases, the significant inputs used in the valuation techniques are not reasonably available to us. However, we have an understanding of the processes and assumptions used to develop the prices based on our ongoing due diligence, which includes discussions with our pricing services and dealers at least annually and often more frequently. We believe that the procedures executed by the pricing services and dealers, combined with our internal verification and analytical procedures, provide assurance that the prices used in our financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use in pricing our assets and liabilities. The price quotes we receive are non-binding both to us and to our counterparties. In many cases, we receive quotes from third-party pricing services or dealers and use those prices without adjustment. For a large majority of the assets and liabilities we value using pricing services and dealers, we obtain quotes from multiple external sources and use the median of the prices to measure fair value. This technique is referred to below as "median of external sources." The significant inputs used in the fair value measurement of assets and liabilities that are valued using the median of external sources pricing technique are the third-party quotes. Significant increases (decreases) in any of the third-party quotes in isolation may result in a significantly higher (lower) fair value measurement. In limited circumstances, we may be able to receive pricing information from only a single external source. This technique is referred to below as "single external source." Valuation Techniques The following table contains a description of the valuation techniques we use for fair value measurement and disclosure; the significant inputs used in those techniques (if applicable); the classification within the fair value hierarchy; and, for those measurements that we report on our consolidated balance sheets and are classified as Level 3 of the hierarchy, a narrative description of the uncertainty of the fair value measurement to changes in significant unobservable inputs. Although the uncertainties of the unobservable inputs are discussed below in isolation, interrelationships exist among the inputs such that a change in one unobservable input can result in a change to one or more of the other inputs. For example, the most common interrelationship that affects the majority of our fair value measurements is between future interest rates, prepayment speeds, and probabilities of default. Generally, a change in the assumption used for future interest rates results in a directionally opposite change in the assumption used for prepayment speeds and a directionally similar change in the assumption used for probabilities of default. Each technique discussed below may not be used in a given reporting period, depending on the composition of our assets and liabilities measured at fair value and relevant market activity during that period. Instrument Valuation Technique Classification in the Fair Value Hierarchy Investment Securities U.S. Treasury Securities Quoted prices in active markets Level 1 Mortgage-related securities Majority of agency securities Median of external sources Level 2 Certain other agency securities Single external source Level 2 or 3 Certain securities with limited market activity Discounted cash flows or risk metric pricing. Level 3 Mortgage Loans Single-Family loans GSE securitization market Benchmark security pricing for actively traded mortgage-related securities with similar characteristics, adjusting for the value of our guarantee fee and our credit obligation related to performing our guarantee (see Guarantee obligations). The credit obligation is based on compensation we charge under current market pricing for loans that qualify under our current underwriting standards (Level 2) and internal credit models for loans that do not qualify under our current underwriting standards (Level 3). Level 2 or 3 Whole loan market Median of external sources, referencing market activity for deeply delinquent and modified loans, where available. Level 3 Certain held-for-investment Internal models that estimate the fair value of the underlying collateral for impaired loans. Significant inputs used by our internal models include REO disposition, short sale, and third-party sale values, combined with mortgage loan level characteristics using the repeat housing sales index to estimate the current fair value of the mortgage loan. Significant increases (decreases) in the historical average sales proceeds per mortgage loan in isolation would result in significantly higher (lower) fair value measurements. Level 3 Multifamily loans Held-for-sale Discounted cash flows based on observable K Certificate market spreads. Level 2 Market prices from a third-party pricing service using discounted cash flows incorporating credit spreads for similar loans based on the loan's LTV ratio and DSCR. Level 3 Held-for-investment Discounted cash flows based on observable K Certificate market spreads. Level 2 Market prices from a third-party pricing service using discounted cash flows incorporating credit spreads for similar loans based on the loan's LTV ratio and DSCR. Level 3 Debt Debt of consolidated trusts See Mortgage-related securities Level 2 or 3 Debt of Freddie Mac Median of external sources Level 2 Single external source Published yield matrices Instrument Valuation Technique Classification in the Fair Value Hierarchy Other Assets / Other Liabilities Derivatives Exchange-traded futures Quoted prices in active markets Level 1 Interest-rate swaps Discounted cash flows. Significant inputs include market-based interest rates. Level 2 Option-based derivatives Option-pricing models. Significant inputs include interest-rate volatility matrices. Level 2 Purchase and sale commitments See Mortgage-related securities Level 2 Loan commitments Multifamily loan purchase commitments See Multifamily loans Level 2 or 3 Guarantee assets Single-Family Median of external sources with adjustments for specific loan characteristics. Level 3 Multifamily Discounted cash flows. Significant inputs include current OAS-to-benchmark interest rates for new guarantees. Significant increases (decreases) in the OAS in isolation would result in a significantly lower (higher) fair value measurement. Level 3 Guarantee obligations Single-Family Delivery and guarantee fees that we charge under our current market pricing. Level 2 Internal credit models. Significant inputs include loan characteristics, loan performance, and status information. Level 3 Multifamily Discounted cash flows. Significant inputs are similar to those used in the valuation technique for the Multifamily guarantee assets. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Table 16.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2023 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investment securities: Available-for-sale $— $4,212 $678 $— $4,890 Trading: Mortgage-related securities — 5,342 2,771 — 8,113 Non-mortgage-related securities 29,854 418 — — 30,272 Total trading securities 29,854 5,760 2,771 — 38,385 Total investment securities 29,854 9,972 3,449 — 43,275 Mortgage loans held-for-sale — 6,460 896 — 7,356 Mortgage loans held-for-investment — 1,333 473 — 1,806 Other assets: Guarantee assets — — 5,351 — 5,351 Derivative assets, net — 6,209 2 (5,725) 486 Other assets — 92 166 — 258 Total other assets — 6,301 5,519 (5,725) 6,095 Total assets carried at fair value on a recurring basis $29,854 $24,066 $10,337 ($5,725) $58,532 Liabilities: Debt: Debt of consolidated trusts $— $1,707 $343 $— $2,050 Debt of Freddie Mac — 336 90 — 426 Total debt — 2,043 433 — 2,476 Other liabilities: Derivative liabilities, net — 8,608 63 (7,798) 873 Other liabilities — — — — — Total other liabilities — 8,608 63 (7,798) 873 Total liabilities carried at fair value on a recurring basis $— $10,651 $496 ($7,798) $3,349 Referenced footnote is included after the prior period table. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investment securities: Available-for-sale $— $5,640 $894 $— $6,534 Trading: Mortgage-related securities — 5,603 2,731 — 8,334 Non-mortgage-related securities 23,453 380 — — 23,833 Total trading securities 23,453 5,983 2,731 — 32,167 Total investment securities 23,453 11,623 3,625 — 38,701 Mortgage loans held-for-sale — 2,908 310 — 3,218 Mortgage loans held-for-investment — 1,104 110 — 1,214 Other assets: Guarantee assets — — 5,442 — 5,442 Derivative assets, net — 6,397 2 (6,092) 307 Other assets — 12 129 — 141 Total other assets — 6,409 5,573 (6,092) 5,890 Total assets carried at fair value on a recurring basis $23,453 $22,044 $9,618 ($6,092) $49,023 Liabilities: Debt: Debt of consolidated trusts $— $1,656 $288 $— $1,944 Debt of Freddie Mac — 1,003 100 — 1,103 Total debt — 2,659 388 — 3,047 Other liabilities: Derivative liabilities, net — 10,823 97 (10,162) 758 Other liabilities — 1 — — 1 Total other liabilities — 10,824 97 (10,162) 759 Total liabilities carried at fair value on a recurring basis $— $13,483 $485 ($10,162) $3,806 Level 3 Fair Value Measurements The table below presents a reconciliation of all assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our consolidated statements of income for Level 3 assets and liabilities. Table 16.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs Year Ended December 31, 2023 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2023 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2023 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $894 $2 ($5) $— $— $— ($171) $— ($42) $678 $— ($4) Trading 2,731 (540) — 634 — — (54) — — 2,771 112 — Total investment securities 3,625 (538) (5) 634 — — (225) — (42) 3,449 112 (4) Mortgage loans held-for-sale 310 6 — 2,038 — (1,152) (24) 12 (294) 896 32 — Mortgage loans held-for-investment 110 (81) — — — — (15) 530 (71) 473 (84) — Other assets: Guarantee assets 5,442 71 — — 725 — (887) — — 5,351 71 — Other assets 131 67 — (20) 11 (3) (18) — — 168 66 — Total other assets 5,573 138 — (20) 736 (3) (905) — — 5,519 137 — Total assets 9,618 (475) (5) 2,652 736 (1,155) (1,169) 542 (407) 10,337 197 (4) Liabilities Debt $388 ($41) $— ($3) $97 $— ($8) $— $— $433 ($17) $— Other liabilities 97 14 — — 1 — (49) — — 63 (34) — Total liabilities $485 ($27) $— ($3) $98 $— ($57) $— $— $496 ($51) $— Referenced footnotes are included after the prior period table. Year Ended December 31, 2022 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2022 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2022 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,286 $30 ($103) $51 $— ($86) ($314) $30 $— $894 ($1) ($41) Trading 3,386 (1,309) — 843 — — (169) — (20) 2,731 (595) — Total investment securities 4,672 (1,279) (103) 894 — (86) (483) 30 (20) 3,625 (596) (41) Mortgage loans held-for-sale — (54) — — — (94) (26) 486 (2) 310 (53) — Mortgage loans held-for-investment — (27) — — — — (12) 149 — 110 (27) — Other assets: Guarantee assets 5,919 (783) — — 1,216 — (910) — — 5,442 (783) — Other assets 101 62 — (13) 17 (10) (26) — — 131 62 — Total other assets 6,020 (721) — (13) 1,233 (10) (936) — — 5,573 (721) — Total assets 10,692 (2,081) (103) 881 1,233 (190) (1,457) 665 (22) 9,618 (1,397) (41) Liabilities Debt $294 $14 $— ($21) $163 $— ($62) $— $— $388 $50 $— Other liabilities 24 79 — 1 — — (7) — — 97 74 — Total liabilities $318 $93 $— ($20) $163 $— ($69) $— $— $485 $124 $— Year Ended December 31, 2021 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2021 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2021 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,588 $29 $7 $— $— ($32) ($306) $— $— $1,286 $26 $7 Trading 3,259 (869) — 1,536 — (277) (83) — (180) 3,386 (872) — Total investment securities 4,847 (840) 7 1,536 — (309) (389) — (180) 4,672 (846) 7 Other assets: Guarantee assets 5,509 (378) — — 1,742 — (954) — — 5,919 (378) — Other assets 171 (54) — (6) 19 (9) (20) — — 101 (55) — Total other assets 5,680 (432) — (6) 1,761 (9) (974) — — 6,020 (433) — Total assets 10,527 (1,272) 7 1,530 1,761 (318) (1,363) — (180) 10,692 (1,279) 7 Liabilities Debt $323 ($30) $— ($8) $169 $— ($160) $— $— $294 ($19) $— Other liabilities 19 7 — 7 2 (1) (10) — — 24 (3) — Total liabilities $342 ($23) $— ($1) $171 ($1) ($170) $— $— $318 ($22) $— (1) For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively. (2) Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at December 31, 2023, December 31, 2022 and December 31, 2021, respectively. The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis. Table 16.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements December 31, 2023 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted (1) Assets Investment securities: Available-for-sale $489 Median of external sources External pricing sources $61.2 - $71.6 $66.7 189 Other Trading 2,085 Single external source External pricing sources $0.0 - $4,471.7 $147.3 686 Other Mortgage loans held-for-sale 896 Single external source External pricing sources $59.3 - $110.4 $100.3 Mortgage loans held-for-investment 473 Single external source External pricing sources $24.7 - $99.2 $74.7 Guarantee assets 5,014 Discounted cash flows OAS 17 - 233 bps 47 bps 337 Other Insignificant Level 3 assets (2) 168 Total level 3 assets $10,337 Liabilities Insignificant Level 3 liabilities (2) 496 Total level 3 liabilities $496 December 31, 2022 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Assets Investment securities: Available-for-sale $557 Median of external sources External pricing sources $66.3 - $74.6 $70.5 337 Other Trading 2,080 Single external source External pricing sources $0.0 - $5,702.4 $224.8 651 Other Mortgage loans held-for-sale 310 Single external source External pricing sources $39.6 - $98.1 $76.6 Mortgage loans held-for-investment 110 Single external source External pricing sources $76.9 - $87.5 $80.6 Guarantee assets 5,084 Discounted cash flows OAS 17 - 186 bps 45 bps 358 Other Insignificant Level 3 assets (2) 131 Total level 3 assets $9,618 Liabilities Insignificant Level 3 liabilities (2) 485 Total level 3 liabilities $485 (1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments. 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 an allowance for credit losses 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 consolidated balance sheets at fair value on a non-recurring basis. Table 16.4 - Assets Measured at Fair Value on a Non-Recurring Basis December 31, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Mortgage loans (1) $— $640 $1,578 $2,218 $— $386 $1,758 $2,144 (1) Includes loans that are classified as held-for-investment and have an allowance for credit losses based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets measured on our consolidated balance sheets at fair value on a non-recurring basis. Table 16.5 - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements December 31, 2023 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Mortgage loans $1,394 Median of external sources External pricing sources $72.9 - $98.8 $82.4 184 Other Total $1,578 December 31, 2022 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Mortgage loans $1,657 Median of external sources External pricing sources $74.8 - $98.6 $86.3 101 Other Total $1,758 (1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments. Fair Value of Financial Instruments The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, secured lending, 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 16.6 - Fair Value of Financial Instruments December 31, 2023 GAAP Measurement Category (1) Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $6,019 $6,019 $— $— $— $6,019 Securities purchased under agreements to resell Amortized cost 95,148 — 105,393 — (10,245) 95,148 Investments securities: Available-for-sale FV - OCI 4,890 — 4,212 678 — 4,890 Trading FV - NI 38,385 29,854 5,760 2,771 — 38,385 Total investments securities 43,275 29,854 9,972 3,449 — 43,275 Mortgage loans: Mortgage loans held-for-sale 12,941 — 9,276 3,868 — 13,144 Mortgage loans held-for-investment, net of allowance for credit losses 3,083,665 — 2,466,127 254,877 — 2,721,004 Total mortgage loans Various (3) 3,096,606 — 2,475,403 258,745 — 2,734,148 Other assets: Guarantee assets FV - NI 5,351 — — 5,353 — 5,353 Derivative assets, net FV - NI 486 — 6,209 2 (5,725) 486 Other assets (4) Various 2,107 — 946 1,165 — 2,111 Total other assets 7,944 — 7,155 6,520 (5,725) 7,950 Total financial assets $3,248,992 $35,873 $2,597,923 $268,714 ($15,970) $2,886,540 Financial Liabilities Debt: Debt of consolidated trusts $3,041,927 $— $2,673,019 $727 $— $2,673,746 Debt of Freddie Mac 166,419 — 173,877 3,391 (10,245) 167,023 Total debt Various (5) 3,208,346 — 2,846,896 4,118 (10,245) 2,840,769 Other liabilities: Guarantee obligations Amortized cost 5,451 — 103 6,023 — 6,126 Derivative liabilities, net FV - NI 873 — 8,608 63 (7,798) 873 Other liabilities (4) FV - NI 14 — 465 194 — 659 Total other liabilities 6,338 — 9,176 6,280 (7,798) 7,658 Total financial liabilities $3,214,684 $— $2,856,072 $10,398 ($18,043) $2,848,427 Referenced footnotes are included after the prior period table. December 31, 2022 GAAP Measurement Category (1) Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $6,360 $6,360 $— $— $— $6,360 Securities purchased under agreements to resell Amortized cost 87,295 — 99,286 — (11,991) 87,295 Investments securities: Available-for-sale FV - OCI 6,534 — 5,640 894 — 6,534 Trading FV - NI 32,167 23,453 5,983 2,731 — 32,167 Total investments securities 38,701 23,453 11,623 3,625 — 38,701 Mortgage loans: Mortgage loans held-for-sale 12,197 — 9,032 3,461 — 12,493 Mortgage loans held-for-investment, net of allowance for credit losses 3,022,318 — 2,348,858 273,044 — 2,621,902 Total mortgage loans Various (3) 3,034,515 — 2,357,890 276,505 — 2,634,395 Other assets: Guarantee assets FV - NI 5,442 — — 5,445 — 5,445 Derivative assets, net FV - NI 307 — 6,397 2 (6,092) 307 Other assets (4) Various 1,739 — 907 835 — 1,742 Total other assets 7,488 — 7,304 6,282 (6,092) 7,494 Total financial assets $3,174,359 $29,813 $2,476,103 $286,412 ($18,083) $2,774,245 Financial Liabilities Debt: Debt of consolidated trusts $2,979,070 $— $2,564,323 $701 $— $2,565,024 Debt of Freddie Mac 166,762 — 175,673 3,162 (11,991) 166,844 Total debt Various (5) 3,145,832 — 2,739,996 3,863 (11,991) 2,731,868 Other liabilities: Guarantee obligations Amortized cost 5,779 — — 6,016 — 6,016 Derivative liabilities, net FV - NI 758 — 10,823 97 (10,162) 758 Other liabilities (4) FV - NI 20 — 1,025 211 — 1,236 Total other liabilities 6,557 — 11,848 6,324 (10,162) 8,010 Total financial liabilities $3,152,389 $— $2,751,844 $10,187 ($22,153) $2,739,878 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting and cash collateral netting. (3) The GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $3.1 trillion, $5.6 billion and $9.2 billion as of December 31, 2023, respectively, and $3.0 trillion, $9.0 billion and $4.4 billion as of December 31, 2022, respectively. (4) For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments. (5) Fair Value Option We elected the fair value option for certain mortgage loans and loan commitments and certain debt issuances. Mortgage Loans and Loan Commitments We elected the fair value option for certain fixed-rate multifamily loan purchase commitments and certain multifamily loans that were acquired for securitization to offset the changes in fair value of the derivatives that we use to economically hedge the interest rate risk of the loans and commitments. The multifamily loans are classified either as held-for-investment or as held-for-sale on our consolidated balance sheets based on management's intent and ability and are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value (net of accrued interest income) reported in investment gains, net, on our consolidated statements of income. We elected to report separately the portion of the changes in fair value of the loans related to accrued interest from the remaining changes in fair value. Related interest income continues to be reported, based on the stated terms of the loans, as interest income on our consolidated statements of income. The multifamily loan commitments are included in other assets or liabilities on our consolidated balance sheets and are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value included in investment gains, net, on our consolidated statements of income Debt of Consolidated Trusts and Debt of Freddie Mac We elected the fair value option on debt that contains embedded derivatives, including certain STACR and SCR debt notes, and certain other debt issuances. Fair value changes are recorded in investment gains, net, on our consolidated statements of income. For debt where we have elected the fair value option, The table below presents the fair value and UPB related to items for which we have elected the fair value option. Table 16.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected (1) December 31, 2023 December 31, 2022 (In millions) Fair value UPB Difference Fair value UPB Difference Mortgage loans held-for-sale $7,356 $7,080 $276 $3,218 $3,421 ($203) Mortgage loans held-for-investment 1,806 2,095 (289) 1,214 1,368 (154) Debt of Freddie Mac 240 234 6 892 881 11 Debt of consolidated trusts 1,705 1,799 (94) 1,656 1,833 (177) Other assets (other liabilities) 95 N/A N/A 11 N/A N/A Changes in Fair Value Under the Fair Value Option Election The table below presents the changes in fair value related to items for which we have elected the fair value option. These amounts are included in investment gains, net, on our consolidated statements of income. Table 16.8 - Changes in Fair Value under the Fair Value Option Election December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Gains (Losses) Mortgage loans held-for-sale ($59) ($987) ($407) Mortgage loans held-for-investment (29) (154) — Debt of Freddie Mac 30 (30) 50 Debt of consolidated trusts (6) 458 17 Other assets/other liabilities 207 (362) 1,271 Changes in fair value attributable to instrument-specific credit risk were not material for the periods presented for assets or liabilities for which we elected the fair |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL CONTINGENCIES | Legal Contingencies We are involved, directly or indirectly, 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) and in connection with the conservatorship and Purchase Agreement. 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 claims and proceedings of all types are subject to many uncertainties (including appeals and procedural filings), and there can be no assurance as to the ultimate outcome of those actions (including the matters described below). 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. The actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions. It is not possible for us to predict the actions the U.S. government (including Treasury and FHFA) might take in response to any ruling or finding in any of these lawsuits or any future lawsuits. However, it is possible that we could be adversely affected by these events, including, for example, by changes to the Purchase Agreement, or any resulting actual or perceived changes in the level of U.S. government support for our business. 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 August 2018, the District Court denied the plaintiff's motion for class certification. On April 6, 2023, the Sixth Circuit reversed the District Court's September 17, 2020 decision to grant the plaintiff's request for summary judgment and enter final judgment in favor of Freddie Mac and other defendants. The Sixth Circuit remanded the case to the District Court for further proceedings. The District Court scheduled the trial to begin on October 21, 2024. Litigation Concerning the Purchase Agreement 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 is a consolidated class action lawsuit filed by private individual and institutional investors (collectively, "Class Plaintiffs") against FHFA, Fannie Mae, and Freddie Mac. Fairholme Funds, Inc., et al. v. FHFA, et al. This is an individual plaintiffs’ lawsuit by certain institutional investors (“Individual Plaintiffs”) against FHFA, Fannie Mae, and Freddie Mac. Plaintiffs in each of the District of Columbia lawsuits filed an amended complaint on November 1, 2017 alleging claims for breach of contract, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duties, and violation of Delaware and Virginia corporate law. Additionally, the Class Plaintiffs brought derivative claims against FHFA for breach of fiduciary duties and the Individual Plaintiffs brought claims under the Administrative Procedure Act. Both sets of claims are generally based on allegations that the net worth sweep dividend provisions of the senior preferred stock that were implemented pursuant to the August 2012 amendments nullified certain of the shareholders’ rights, including the rights to receive dividends and a liquidation preference. On September 28, 2018, the District Court dismissed all of the claims except those for breach of the implied covenant of good faith and fair dealing. The cases were consolidated for trial. Court rulings have limited the Plaintiffs’ damages theories to those based on the decline in Freddie Mac’s and Fannie Mae’s share value immediately after the Third Amendment. The Plaintiffs have asserted losses based on the decline in value of Freddie Mac’s common and junior preferred stock from August 16 to August 17, 2012. During the trial in October and early November 2022, the Plaintiffs requested that the jury award $832 million plus pre-judgment interest as damages against Freddie Mac. The jury in that trial was not able to reach a unanimous verdict and on November 7, 2022 the judge declared a mistrial. The retrial started on July 24, 2023. On August 14, 2023, the jury returned a verdict against FHFA, Fannie Mae, and Freddie Mac awarding compensatory damages of $282 million to Freddie Mac junior preferred shareholders and $31 million to Freddie Mac common shareholders. The jury declined to award the Freddie Mac shareholders prejudgment interest. In 3Q 2023, we recorded a $313 million accrual in other expense on our condensed consolidated statements of income for the adverse judgment. The entry of final judgment remains before the court. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2023 | |
Compliance with Regulatory Capital Requirements - ERCF [Abstract] | |
REGULATORY CAPITAL | ERCF The GSE Act specifies certain capital requirements for us and authorizes FHFA to establish other capital requirements as well as to increase our minimum capital levels or to establish additional capital and reserve requirements for particular purposes. In October 2008, FHFA suspended capital classification of us during conservatorship, in light of the Purchase Agreement. FHFA established the ERCF as a new enterprise regulatory capital framework for Freddie Mac and Fannie Mae in December 2020. Our current capital levels are significantly below the levels that would be required under the ERCF. The ERCF has a transition period for compliance, and we are not required to comply with the regulatory capital requirements or the buffer requirements while in conservatorship. In general, the compliance date for the regulatory capital requirements will be the later of the date of termination of our conservatorship and any later compliance date provided in a transition order, and the compliance date for buffer requirements in the ERCF will be the date of termination of our conservatorship. With respect to the ERCF's advanced approaches requirements, the compliance date is January 1, 2028 or any later compliance date specified by FHFA. The ERCF establishes risk-based and leverage capital requirements and includes capital requirements relating to the amount and form of the capital we hold, based largely on definitions of capital used in U.S. banking regulators' regulatory capital framework. The ERCF capital requirements contain both statutory capital elements (total capital and core capital) and regulatory capital elements (CET1 capital, Tier 1 capital, and adjusted total capital). The ERCF also includes a requirement that we hold prescribed capital buffers that can be drawn down in periods of financial stress and then rebuilt over time as economic conditions improve. If we fall below the prescribed buffer amounts, we must restrict capital distributions such as stock repurchases and dividends, as well as discretionary bonus payments to executives, until the buffer amounts are restored. Risk-Based Capital Requirements Under the ERCF risk-based capital requirements, we must maintain our CET1 capital, Tier 1 capital, and adjusted total capital ratios equal to at least 4.5%, 6.0%, and 8.0%, respectively, of RWA. We must also maintain statutory total capital equivalent to at least 8.0% of the total RWA. To avoid limitations on capital distributions and discretionary bonus payments tied to executive compensation, we also must maintain CET1 capital that exceeds the risk-based capital requirements by at least the amount of the PCCBA. The PCCBA consists of three separate component buffers—a stress capital buffer, a stability capital buffer, and a countercyclical capital buffer. n The stress capital buffer must be at least 0.75% of our ATA as of the last day of the previous calendar quarter. FHFA will periodically re-size the stress capital buffer to the extent that FHFA’s eventual program for supervisory stress tests determines that our peak capital exhaustion under a severely adverse stress scenario would exceed 0.75% of ATA. n The stability capital buffer is tailored to the risk that our default or other financial distress could pose to the liquidity, efficiency, competitiveness, or resiliency of national housing finance markets. The stability capital buffer is based on our share of residential mortgage debt outstanding. As of December 31, 2023, our stability capital buffer was 0.60% of ATA. n The countercyclical capital buffer is currently set at 0.0% of our ATA. FHFA has indicated that it will adjust the countercyclical capital buffer taking into account the macro-financial environment in which we operate, such that the buffer would be deployed only when excess aggregate credit growth is judged to be associated with a build-up of system-wide risk. Leverage Capital Requirements Under the ERCF leverage capital requirements, we must maintain our Tier 1 capital ratio equal to at least 2.5% of ATA. We must also maintain our statutory core capital ratio equal to at least 2.5% of ATA. To avoid limitations on capital distributions and discretionary bonus payments tied to executive compensation, we also must maintain Tier 1 capital that exceeds the leverage capital requirements by at least the amount of the PLBA. The PLBA is equal to 50% of our stability capital buffer. Capital Metrics The table below presents our capital metrics under the ERCF. Table 18.1 - ERCF Available Capital and Capital Requirements (In billions) December 31, 2023 December 31, 2022 Adjusted total assets $3,775 $3,710 Risk-weighted assets (standardized approach) 1,009 899 December 31, 2023 Amounts Ratios (Dollars in billions) Available Minimum Capital Requirement (Including Buffer (1) ) Available Capital (Deficit) Ratio (2) Minimum Capital Requirement Ratio (2) Capital Requirement Ratio (2) (Including Buffer (1) ) Risk-based capital: Total capital ($18) $81 $81 (1.8) % 8.0 % 8.0 % CET1 capital (43) 45 96 (4.3) 4.5 9.5 Tier 1 capital (29) 60 111 (2.9) 6.0 11.0 Adjusted total capital (29) 81 132 (2.9) 8.0 13.0 Leverage capital: Core capital (statutory) ($25) $95 $95 (0.7) % 2.5 % 2.5 % Tier 1 capital (29) 95 106 (0.8) 2.5 2.8 December 31, 2022 Amounts Ratios (Dollars in billions) Available Minimum Capital Requirement (Including Buffer (1) ) Available Capital (Deficit) Ratio (2) Minimum Capital Requirement Ratio (2) Capital Requirement Ratio (2) (Including Buffer (1) ) Risk-based capital: Total capital ($27) $72 $72 (3.1) % 8.0 % 8.0 % CET1 capital (55) 40 90 (6.2) 4.5 10.1 Tier 1 capital (41) 54 104 (4.6) 6.0 11.6 Adjusted total capital (41) 72 122 (4.6) 8.0 13.6 Leverage capital: Core capital (statutory) ($35) $93 $93 (1.0) % 2.5 % 2.5 % Tier 1 capital (41) 93 104 (1.1) 2.5 2.8 (1) PCCBA for risk-based capital and PLBA for leverage capital. (2) As a percentage of RWA for risk-based capital and ATA for leverage capital. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 10,538 | $ 9,327 | $ 12,109 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Management has made significant estimates to report the allowance for credit losses on single-family mortgage loans. Actual results could be different from these estimates. |
Consolidation and Equity Method of Accounting | Consolidation and Equity Method Accounting For each entity with which we are involved, we determine whether the entity should be consolidated in our financial statements. We consolidate entities in which we have a controlling financial interest. The method for determining whether a controlling financial interest exists varies depending on whether the entity is a VIE. For entities that are not VIEs, we hold a controlling financial interest in entities where we hold a majority of the voting rights or a majority of a limited partnership's kick-out rights through voting interests. We do not currently consolidate any entities which are not VIEs. We use the equity method to account for our interests in entities in which we do not have a controlling financial interest, but over which we have significant influence. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash and Cash Equivalents | Cash collateral accepted from counterparties that we do not have the right to use for general corporate purposes is classified as restricted cash and cash equivalents on our consolidated balance sheets. Restricted cash and cash equivalents includes cash remittances received from servicers of the underlying assets of our consolidated trusts which are deposited into a separate custodial account. We invest the cash held in the custodial account in short-term investments; and we are entitled to the interest income earned on these short-term investments, which is recorded as interest income on our consolidated statements of income. |
Comprehensive Income | Comprehensive Income |
Recently Adopted or Issued Accounting Guidance | Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2022-01 , Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method The amendments in this Update provide clarifications of the guidance in ASC Topic 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. The Update amends the guidance in ASU 2017-12 that, among other things, establishes the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible by allowing the entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. The Update provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. January 1, 2023 The adoption of these amendments did not have a material effect on our consolidated financial statements. We adopted the guidance in this Update related to disclosures on a prospective basis. ASU 2022-02 , Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The amendments in this Update require disclosure of current period gross write-offs by year of origination for financing receivables within the scope of ASC Subtopic 326-20. January 1, 2023 for the amendments related to disclosure of gross write-offs by year of origination. The adoption of these amendments did not have a material effect on our consolidated financial statements. See Note 4 for additional disclosure of gross write-offs by year of origination. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this Update expand the use of the proportional amortization method of accounting to equity investments in other tax credit structures that meet certain conditions. This Update also amends those conditions primarily to assess projected benefits on a discounted basis and expands the disclosure requirements of those investments. January 1, 2024 We do not expect the adoption of ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this Update require the disclosure of more detailed quantitative and qualitative information about significant segment expenses that are regularly provided to the CODM and included in each reported measure of segment profit or loss. December 31, 2024 We do not expect the adoption of ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this Update require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction. January 1, 2025 We do not expect the adoption of |
Consolidation, Variable Interest Entity, Policy | Securitizations and Variable Interest Entities Our primary business activities in the Single-Family 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 also use trusts that are VIEs in certain CRT products. Consolidated VIEs We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. We are the primary beneficiary of a VIE when we have both the power to direct the activities of the VIE that most significantly impact its economic performance and exposure to losses or benefits of the VIE that could potentially be significant to the VIE. We evaluate whether we are the primary beneficiary of VIEs in which we have interests at both inception and on an ongoing basis, and the primary beneficiary determination may change over time as our interest in the VIE changes. Generally, the assets of our consolidated VIEs can be used only to settle obligations of the VIE, and the creditors of our consolidated VIEs have recourse to the general credit of Freddie Mac only to the extent that we have provided a guarantee to the VIE. When we consolidate a VIE, we recognize the assets and liabilities of the VIE on our consolidated balance sheets and account for those assets and liabilities based on the applicable GAAP for each specific type of asset or liability. Assets and liabilities that we transfer to a VIE at, after, or shortly before the date we become the primary beneficiary of the VIE are initially measured at the same amounts that they would have been measured if they had not been transferred, and no gain or loss is recognized on these transfers. For all other VIEs that we consolidate, we recognize the assets and liabilities of the VIE at fair value, and we recognize a gain or loss for the difference between: n The sum of the fair value of the consideration paid, the fair value of any noncontrolling interests, and the reported amount of any previously held interests and n The fair value of the net identifiable assets recognized. Single-Family Securitization Products Level 1 Securitization Products Level 1 Securitization Products consist of UMBS, 55-day MBS, ARM and Gold PCs, which are all pass-through debt securities that represent undivided beneficial interests in a pool of loans held by a securitization trust. All Level 1 Securitization Products are backed only by mortgage loans we have acquired. We serve as both administrator and guarantor for these trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by these trusts. As guarantor, we guarantee the payment of principal and interest on these securities in exchange for a guarantee fee, and we have the right to purchase delinquent loans from the trust to help improve the economic performance of the trust. We absorb all credit losses of these trusts through our guarantee of the principal and interest payments. The economic performance of these trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of these trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of and, therefore, consolidate these trusts. Other Securitization Products Multifamily Securitization Products Multifamily PCs Multifamily PCs are fully guaranteed pass-through securities with a 55-day payment delay that are collateralized by a single underlying mortgage loan held by a securitization trust. We serve as both administrator and guarantor for these trusts. As administrator, we have the right to establish servicing terms and direct loss mitigation activities for the loans held by these trusts. As guarantor, we guarantee the payment of principal and interest on these securities in exchange for a guarantee fee, and we have the right to purchase a delinquent loan from the trust. We absorb all credit losses of these trusts through our guarantee of the principal and interest payments. The economic performance of these trusts is most significantly affected by the performance of the underlying loans. Our rights as administrator and guarantor provide us with the power to direct the activities that most significantly affect the performance of the underlying loans. We also have the obligation to absorb losses of these trusts that could potentially be significant through our guarantee of principal and interest payments. Accordingly, we concluded that we are the primary beneficiary of and, therefore, consolidate these trusts. K Certificates and Other Securitization Products We are the primary beneficiary of and, therefore, consolidate the trusts used to issue fully-guaranteed K Certificates and certain of our Multifamily other securitization products when we have the ability to direct the activities that most significantly affect the economic performance of the VIEs and we have the obligation to absorb credit losses through our guarantee of the issued securities. WI K-Deal Certificates In a WI K-Deal Certificate transaction, we forward sell a K Certificate that will be issued in the future to a WI K-Deal trust at a fixed price, thereby reducing our exposure to future changes in interest rates and K Certificate spreads. The WI K-Deal trust simultaneously issues guaranteed securities (WI Certificates). The economic performance of our WI K-Deal trusts is most significantly affected by the performance of the underlying assets. We manage the underlying assets of the trust prior to the delivery of the K Certificate and determine which K Certificate will be delivered into the trust. Therefore, we have the power to direct the activities that are most significant to the WI K-Deal trust. We also initially have economic exposure to the variability of the trust through our guarantee of the issued WI Certificates. As a result, we are the primary beneficiary of and, therefore, initially consolidate the trusts used to issue WI Certificates. Upon delivering the K Certificate into the trust, we no longer have a variable interest and therefore deconsolidate the WI K-Deal trust. Nonconsolidated VIEs Single-Family Securitization Products We do not consolidate certain of our Single-Family other securitization products, including senior subordinate securitizations backed by seasoned loans, because we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. When we sell loans in this type of transaction, we derecognize the transferred loans and account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the nonconsolidated VIE, if any, as investments in debt securities. We also do not consolidate the trusts used to issue certain other types of our Single-Family other securitization products when we do not have the ability to direct the activities that most significantly affect the economic performance of the VIE. Resecuritization Products We create resecuritization products primarily by using Level 1 Securitization Products, our previously issued resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae as the underlying collateral. In a typical resecuritization transaction, previously issued Level 1 Securitization Products or resecuritization products are transferred to a resecuritization trust that issues beneficial interests in the underlying collateral. We establish parameters that define eligibility standards for assets that may be used as collateral for each of our resecuritization programs. Resecuritization products can then be created based on the parameters that we have established. Similar to our Level 1 Securitization Products, we guarantee the full payment of principal and interest to the investors in our resecuritization products. The main types of resecuritization products we create are single-class resecuritization products (Supers, Giant MBS, and Giant PCs) and multiclass resecuritization products (REMICs and Strips). n Single-class resecuritization products - These securities are direct pass-throughs of the cash flows of the underlying collateral, which may be previously issued Level 1 Securitization Products, single-class resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae. We do not consolidate the trusts used in these transactions unless we have the unilateral ability to liquidate the trust (for example if we own all of the trust's issued beneficial interests), as these transactions do not result in any new or incremental risk to the holders of the securities issued by the resecuritization trust and because we are not exposed to any incremental rights to receive benefits or obligations to absorb losses that could be significant to the resecuritization trust. We account for purchases of single-class resecuritization products that we issue that are substantially the same as the underlying collateral as debt extinguishment of a pro-rata portion of the underlying Level 1 Securitization Product. We account for purchases of single-class resecuritization products that we issue that are not considered substantially the same as the underlying collateral as investments in debt securities. Single-class resecuritization products that we issue that are backed entirely by Freddie Mac collateral are considered substantially the same as the underlying collateral, while commingled single-class resecuritization products that we issue are not considered substantially the same as the underlying collateral. n Multiclass resecuritization products - These securities are multiclass resecuritizations of the cash flows of the underlying collateral, which may be previously issued Level 1 Securitization Products, single-class resecuritization products, multiclass resecuritization products, or similar TBA-eligible products issued and guaranteed by Fannie Mae. The activity that most significantly impacts the economic performance of our multiclass resecuritization trusts is typically the initial design and structuring of the trust. Substantially all multiclass resecuritization trusts are created as part of transactions in which an investor or dealer participates in the decisions made during the design and establishment of the trust. As a result, we do not have the unilateral ability to direct the activities of our multiclass resecuritization trusts that most significantly impact the economic performance of those trusts. In addition, unless we retain a portion of the issued multiclass resecuritization products, we do not have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts because we have already provided a guarantee on the underlying assets. As a result, we have concluded that we are not the primary beneficiary of our multiclass resecuritization trusts and, therefore, do not consolidate those trusts unless we have the unilateral ability to liquidate the trust. When we purchase a multiclass resecuritization product as an investment in our mortgage-related investments portfolio, we record the security as an investment in debt securities rather than extinguishment of debt since we are investing in the debt securities of a nonconsolidated entity. Similarly, sales of multiclass resecuritization products previously held as investments in our mortgage-related investments portfolio are accounted for as sales of investments in debt securities. See Note 7 for additional information on accounting for investments in debt securities. CRT Products We transfer credit risk exposure on certain mortgage loans that we own or guarantee using CRT products, including STACR Trust notes. In STACR Trust notes transactions, a trust issues credit-linked notes whose repayments are based on the credit performance of a reference pool of mortgage loans. The trust uses the proceeds from the issuance of the notes to purchase short-term eligible investments and makes periodic payments of principal and interest on the notes to investors. We make payments to the trust to support payment of the interest due on the notes, and we receive payments from the trust that otherwise would have been made to the noteholders to the extent there are credit events on the mortgages in the reference pool. The note balances are reduced by the amount of the payments to us. The trust was designed to create and pass along to its interest holders the variability related to the credit risk of the mortgages in the reference pool. We do not have a variable interest in the risk that the trust was designed to create and pass along to its interest holders or the power to direct the activities that most significantly affect the economic performance of the VIE. As a result, we do not consolidate the trusts used in the STACR Trust note transactions. We account for our obligations to make certain payments to the STACR Trust note VIEs to support payment of the interest due on the notes as derivative instruments. We account for our rights to receive payments from the STACR Trust note VIEs to the extent there are credit events on the mortgages in the reference pool as freestanding credit enhancement contracts. Freestanding contracts are entered into separately and apart from any other financial instrument or in conjunction with some other transaction and are legally detachable and separately exercisable. We recognize the payments we make to transfer credit risk under freestanding credit enhancements, which primarily consist of STACR Trust notes and ACIS transactions in Single-Family, in credit enhancement expense in our consolidated statements of income when they are incurred. We recognize expected recoveries from such transactions in other assets with an offsetting reduction to non-interest expense, at the same time that we recognize an allowance for credit losses on the covered loans, measured on the same basis as the allowance for credit losses on the covered loans. Credit enhancements that are not freestanding contracts are considered when measuring our allowance for credit losses. See Note 6 for additional information on credit enhancements that are not freestanding contracts. Multifamily Securitization Products K Certificates In a typical K Certificate transaction, we sell multifamily loans to a non-Freddie Mac trust that issues senior and subordinate securities, and simultaneously purchase and place the senior securities into a Freddie Mac trust that issues guaranteed K Certificates. In these transactions, we guarantee the senior securities issued by the non-Freddie Mac trust but do not issue or guarantee the subordinate securities. We receive a guarantee fee in exchange for our guarantee. In certain of our K Certificate securitizations, we may also serve as master servicer. However, in contrast to most single-family transactions, the rights to direct loss mitigation activities of the underlying loans and to purchase delinquent loans from the securitization trust are generally held by the investor in the most subordinate remaining securities issued by the non-Freddie Mac trust, and therefore we do not have the power to direct those activities unless we are the investor in the most subordinate remaining securities. We do not typically invest in the subordinate securities issued in our K Certificate transactions. The economic performance of our K Certificate trusts is most significantly affected by the performance of the underlying loans. We do not consolidate our K Certificate securitization trusts that have subordination because we do not have the ability to direct the loss mitigation activities of the underlying loans, which is the most significant activity affecting the economic performance of the VIE. When we sell loans in a K Certificate transaction, we derecognize the transferred loans and account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the trusts used in our K Certificate transactions as investments in debt securities. Other Securitization Products We do not consolidate the trusts used to issue our other securitization products when we do not have the ability to direct the activities that most significantly affect the economic performance of the VIE. For those products, we account for our guarantee to the nonconsolidated VIE. We account for our investments in the beneficial interests issued by the trusts used in our other securitization products as investments in debt securities. CRT Products In Multifamily, we may transfer credit risk on certain mortgage loans that we own or guarantee by entering into SCR Trust note transactions, which are similar to STACR Trust note transactions in Single-Family. We do not consolidate the trusts used in SCR Trust note transactions and account for SCR Trust note transactions in the same manner as we account for STACR Trust note transactions. |
Transfers and Servicing of Financial Assets, Policy | Loans held by these trusts are recognized on our consolidated balance sheets as mortgage loans held-for-investment. The corresponding securities held by third parties are recognized on our consolidated balance sheets as debt. We extinguish the outstanding debt of the related consolidated trust and recognize gains or losses on debt extinguishment for the difference between the consideration paid and the debt carrying value when we purchase these securities as investments in our mortgage-related investments portfolio. Sales of these securities that were previously held as investments in our mortgage-related investments portfolio are accounted for as debt issuances. |
Revenue from Contract with Customer | With the exception of commingled securities, our investments in, and guarantees of, securities issued by resecuritization trusts do not create any incremental exposure to loss because we already guarantee the underlying collateral. As a result, we do not receive any incremental guarantee fees in exchange for our guarantee, and, accordingly, we do not recognize any additional guarantee assets, guarantee obligations, or reserves for guarantee losses related to resecuritization trusts. In a typical multiclass resecuritization, we receive a one-time transaction fee which represents compensation for both the structuring and creation of the securities and for our ongoing administrative responsibilities to service the securities. We recognize the portion of the transaction fee related to creation of the securities immediately in earnings. We defer the portion of the fee related to ongoing administrative responsibilities and amortize it over the life of the associated trust. When we issue commingled resecuritization products, our guarantee of the Fannie Mae securities used as collateral creates incremental exposure to loss because our guarantee covers timely payment of principal and interest on such products from underlying Fannie Mae securities. If Fannie Mae were to fail to make a payment on a Fannie Mae security that we resecuritized, we would be responsible for making the payment. However, we view the likelihood of being required to perform on our guarantee of Fannie Mae securities as remote 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 did not charge an incremental fee for commingled securities issued prior to July 1, 2022; however, effective July 1, 2022, we began to charge a fee for any commingled security issued after that date. |
Mortgage Loans | We own both single-family loans, which are secured by one- to four-unit residential properties, and multifamily loans, which are secured by properties with five or more residential rental units. Our single-family loans are predominantly first lien, fixed-rate loans secured by the borrower's primary residence. We do not typically acquire loans that have experienced more-than-insignificant deterioration in credit quality since origination as of our acquisition date, although we may acquire such loans in connection with certain of our securitization activities or other mortgage-related guarantees. Upon acquisition, we classify a loan as either held-for-investment or held-for-sale. Loans that we have the ability and intent to hold for the foreseeable future, including loans held by consolidated trusts and loans we intend to securitize using an entity we will consolidate, are classified as held-for-investment. Loans that we intend to sell are classified as held-for-sale. Held-for-investment loans for which we have not elected the fair value option are reported on our consolidated balance sheets at their amortized cost basis, net of the allowance for credit losses. The amortized cost basis is based on a loan's outstanding UPB, net of deferred fees and other cost basis adjustments (including unamortized premiums and discounts, fees we receive or pay when we acquire loans, commitment-related derivative basis adjustments, hedge accounting-related basis adjustments, and other pricing adjustments), excluding accrued interest receivable. Accrued interest receivable for both held-for-investment and held-for-sale loans is separately presented on our consolidated balance sheets and excluded for the purposes of disclosure of the amortized cost basis of mortgage loans held-for-investment. Held-for-sale loans for which we have not elected the fair value option are reported at lower-of-cost-or-fair-value determined on an individual loan basis on our consolidated balance sheets. Any excess of a held-for-sale loan's cost over its fair value is recognized as a valuation allowance in investment gains, net on our consolidated statements of income, with subsequent changes in this valuation allowance also being recorded in investment gains, net. Premiums, discounts, and other cost basis adjustments (including lower-of-cost-or-fair-value adjustments) are deferred and not amortized. We elect the fair value option for certain multifamily loans. Loans for which we have elected the fair value option are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value reported in investment gains, net on our consolidated statements of income. All fees, upfront costs, and other cost basis adjustments are recognized in earnings as incurred. Cash flows related to loans originally classified as held-for-investment are classified as either investing activities (e.g., principal repayments) or operating activities (e.g., interest payments received from borrowers included within net income) on our consolidated statements of cash flows. Cash flows related to loans originally classified as held-for-sale are classified as operating activities on our consolidated statements of cash flows. |
Allowance for Loan Losses Policy | Allowance for Credit Losses For financial assets measured at amortized cost, we recognize an allowance for credit losses that is deducted from or added to the amortized cost basis of the financial asset to present the net amount expected to be collected on the financial asset on the balance sheet. In 1Q 2022, we adopted accounting guidance that eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, we no longer incorporate the expected credit losses for TDRs we reasonably expect will occur in our estimation of the allowance for credit losses. See Note 4 for additional information on the adoption of the new accounting guidance. Allowance for Credit Losses Methodology We recognize changes in the allowance for credit losses through provision or benefit for credit losses on our consolidated statements of income. Mortgage Loans Held-for-Investment Our allowance for credit losses on mortgage loans pertains to single-family and multifamily loans classified as held-for-investment for which we have not elected the fair value option. We measure the allowance for credit losses on a pooled basis when our loans share similar risk characteristics. We record charge-offs in the period in which a loan is deemed uncollectible. Proceeds received in excess of amounts previously written off are recorded as a decrease to non-interest expense on our consolidated statements of income. Single-Family We estimate the allowance for credit losses for single-family loans on a pooled basis using a discounted cash flow model that evaluates a variety of factors to estimate the cash flows we expect to collect. If we determine that foreclosure on the underlying collateral is probable, we measure the allowance for credit losses for single-family loans based upon the fair value of the collateral, less costs to sell, adjusted for estimated proceeds from credit enhancements that are not freestanding contracts. The discounted cash flow model we use to estimate the single-family loan allowance for credit losses forecasts cash flows over the loan’s remaining contractual term, adjusted for expectations of prepayments. As a result, we do not revert to historical loss information for single-family loans. Cash flow estimates are discounted at the loan’s prepayment-adjusted effective interest rate, which is adjusted for projections in the underlying benchmark interest rate for adjustable-rate loans. We project cash flows we expect to collect using our historical experience, such as historical default rates and severity of loss, based on loan characteristics, such as current LTV ratios, delinquency status, geography, and borrowers' credit scores. These cash flow estimates are adjusted for current and forecasted economic conditions, such as current and forecasted interest rates and house price growth rates, and estimated recoveries from loss mitigation activities, credit enhancements that are not freestanding contracts, and disposition of collateral, less estimated disposition costs. Our estimate of expected credit losses is sensitive to changes in forecasted house price growth rates, which affect both the probability of default and severity of expected credit losses, and changes in forecasted interest rates, as declining (increasing) interest rates typically result in higher (lower) expected prepayments and a shorter (longer) estimated loan life, and therefore lower (higher) expected credit losses. Our forecast of house price growth rates leverages an internally based model and uses a nationwide house price growth forecast for the next three years. A Monte Carlo simulation generates many possible house price scenarios for up to 40 years for each MSA. These scenarios are used to estimate loan-level expected future cash flows and credit losses based on each loan’s individual characteristics. Our forecast of interest rates incorporates various interest rate scenarios over the remaining contractual life of the loan based on current interest rates and implied market volatilities. These projections require significant management judgment. We rely on third parties to provide certain model inputs used in our projections. At loan delivery, the seller provides us with loan data, which includes borrower and loan characteristics and underwriting information. Each subsequent month, the servicers provide us with monthly loan-level servicing data, including delinquency and loss information. We review the outputs of our model by considering qualitative factors such as current economic events and other external factors to determine whether the model outputs are consistent with our expectations. Further management adjustments may be necessary to take into consideration the qualitative factors that have occurred but that are not yet reflected in the factors used to derive the model outputs or the uncertainty inherent in our projections. Significant judgment is exercised in making these adjustments. Credit enhancements that are not freestanding contracts are obtained contemporaneously with, and in contemplation of, the origination of a financial instrument, and effectively travel with the financial instrument upon sale. Credit enhancements that are not freestanding contracts include primary mortgage insurance, which provides us with loan-level protection up to a specified percentage. Expected recoveries from credit enhancements that are not freestanding contracts are considered in determining the allowance for loan losses as discussed above, resulting in a reduction in the recognized provision for credit losses by the amount of the expected recoveries. Subsequent to foreclosure and charge-off of the allowance for credit losses, we reclassify expected recoveries from credit enhancements that were not freestanding contracts and were previously offset against the allowance for credit losses as separate receivables. We do not consider potential recoveries from freestanding credit enhancement contracts when measuring our allowance for credit losses. Multifamily We estimate the allowance for credit losses for multifamily loans using a loss-rate method to estimate the net amount of cash flows we expect to collect. The loss-rate method is based on a probability of default and loss given default framework that estimates credit losses by considering a loan’s underlying characteristics and current and forecasted economic conditions. Loan characteristics considered by our model include vintage, loan term, current DSCR, current LTV ratio, occupancy rate, and interest rate hedges. We generally forecast economic conditions over a reasonable and supportable two-year period prior to reverting to historical averages at the model input level over a five-year period, using a linear reversion method. We also consider as model inputs expected prepayments, contractually specified extensions, expected recoveries from collateral posting requirements, and the expected recoveries from credit enhancements that are not freestanding contracts. Our loss rates incorporate published historical commercial loan performance data, which we calibrate for differences between that data and our portfolio experience. Except for cases of fraud and certain other types of borrower defaults, most multifamily loans are nonrecourse to the borrower. As a result, the cash flows of the underlying property (including any credit enhancements that are not freestanding contracts) serve as the primary source of funds for repayment of the loan. For loans where we determined that the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, we measure the allowance for credit losses using the fair value of the underlying collateral, less estimated costs to sell, adjusted for estimated proceeds from credit enhancements that are not freestanding contracts. Factors considered by management in determining whether a borrower is experiencing financial difficulty include the borrower’s current payment status and an evaluation of the underlying property's operating performance as represented by its current DSCR, its available credit enhancements, the current LTV ratio, the management of the underlying property, and the property's geographic location. We review the outputs of our model considering qualitative factors such as current economic events and other external factors to determine whether the model outputs are consistent with our expectations. Further management adjustments may be necessary to take into consideration the qualitative factors that have occurred but that are not yet reflected in the factors used to derive the model outputs. Advances of Pre-foreclosure Costs We may incur expenses related to a mortgage loan subsequent to its original acquisition but prior to foreclosure (pre-foreclosure costs). These expenses are incurred generally to protect or preserve our interest or legal right in or to the property prior to foreclosure, such as property taxes or homeowner's insurance premiums owed by the borrower. Many of these expenses are advanced by the servicer and are reimbursable from the borrower. If the borrower ultimately defaults, we reimburse the servicer for the advances it has made. Upon advance by the servicer, we recognize a receivable for the amounts due from the borrower and a payable for amounts due to the servicer. We recognize an allowance for credit losses for amounts that we do not ultimately expect to collect from the borrower. Off-Balance Sheet Credit Exposures We recognize an allowance for credit losses on off-balance sheet credit exposures for our guarantees that are not measured at fair value and other off-balance sheet arrangements based on expected credit losses over the contractual period in which we are exposed to credit risk through a present contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. We include this allowance for credit losses on off-balance sheet credit exposures within other liabilities on our consolidated balance sheets, with changes recognized through provision or benefit for credit losses on our consolidated statements of income. Our methodologies for estimating the allowance for credit losses on off-balance sheet credit exposures for our Single-Family and Multifamily guarantees are generally consistent with our methodologies for estimating the allowance for credit losses for single-family mortgage loans and multifamily mortgage loans, respectively. We obtain credit enhancements for certain of our guarantees through the creation of unguaranteed subordinated securities issued by nonconsolidated securitization trusts that absorb first losses prior to us having to perform on our guarantee of the senior securities. We consider the effect of subordination and other credit enhancements that are not freestanding contracts when measuring the allowance for credit losses on off-balance sheet credit exposures and, as a result, recognize such an allowance only if expected credit losses exceed the remaining amount of subordination. For many of our guarantees, expected credit losses do not exceed the remaining amount of subordination. We have not recorded an allowance for credit losses on our guarantees of Fannie Mae securities due to the support provided to Fannie Mae by the U.S. government, the importance of Fannie Mae to the liquidity and stability of the U.S. housing market, and the long history of zero credit losses on Fannie Mae securities. |
Non-Accrual Loans | Interest Income We recognize interest income on an accrual basis except when we believe the collection of principal and interest in full is not reasonably assured, which generally occurs when a loan is three monthly payments or more past due, at which point we place the loan on non-accrual status unless the loan is well secured and in the process of collection based upon an individual loan assessment. A loan is considered past due if a full payment of principal and interest is not received within one month of its due date. We charge off outstanding accrued interest receivable through interest income when loans are placed on non-accrual status and recognize interest income on a cash basis while a loan is on non-accrual status. Cost basis adjustments on held-for-investment loans are amortized into interest income over the contractual life of the loan using the effective interest method. No amortization is recognized during periods in which a loan is on non-accrual status. A non-accrual loan is returned to accrual status when the collectability of principal and interest in full is reasonably assured. For single-family loans, we generally determine that collectability is reasonably assured when the loan returns to current payment status. For multifamily loans, the collectability of principal and interest is considered reasonably assured based on an analysis of the factors specific to the loan being assessed. Upon a loan's return to accrual status, all previously reversed interest income is recognized and amortization of any basis adjustments into interest income is resumed. |
Loan reclassifications charge off policy change | Reclassifications We reclassify loans from held-for-investment to held-for-sale depending on our intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-investment to held-for-sale, we perform a collectability assessment. When we determine that a loan to be reclassified has experienced more-than-insignificant deterioration in credit quality since origination, the excess of the loan’s amortized cost basis over its fair value is written off against the allowance for credit losses prior to the reclassification. If the charge-off amount exceeds the existing allowance for credit losses amount, an additional provision for credit losses is recognized. Any remaining allowance for credit losses after the charge-off is reversed through provision for credit losses. |
Loan Restructurings | Loan Restructurings In 1Q 2022, we adopted accounting guidance in ASU 2022-02 that eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, we no longer measure an allowance for credit losses for TDRs we reasonably expect will occur, and we evaluate all loan restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether the restructuring should be accounted for as a new loan or a continuation of the existing loan. We derecognize the existing loan and account for the restructured loan as a new loan if the effective yield on the restructured loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan restructuring does not meet these conditions, we carryforward the existing loan’s amortized cost basis and account for the restructured loan as a continuation of the existing loan. Substantially all of our loan restructurings involving borrowers experiencing financial difficulty are accounted for as a continuation of the existing loan. The discounted cash flow model we use in measuring our Single-Family allowance for credit losses forecasts cash flows we expect to collect using our historical experience, including the effects of our loss mitigation activities involving borrowers experiencing financial difficulty. When we account for a loan restructuring as a continuation of the existing loan, we update the loan’s effective interest rate based on the restructured terms and recognize interest income prospectively using the new effective rate. We also update the prepayment-adjusted effective interest rate used to discount cash flows in measuring our allowance for credit losses to reflect the loan’s restructured terms. As a result, subsequent to our adoption of the accounting guidance that eliminates the recognition and measurement of TDRs, we no longer recognize an allowance for credit losses for the economic concession granted to a borrower for changes in the timing and amount of contractual cash flows when a loan is restructured. However, because we adopted such guidance prospectively, we continue to use the loan's prepayment-adjusted effective interest rate just prior to the restructuring, with no adjustments made to the effective interest rate for changes in the timing of expected cash flows subsequent to the restructuring, for loans that were restructured and accounted for as TDRs prior to our adoption of the guidance and that have not been subsequently modified after our adoption of the guidance. As a result, we continue to measure an allowance for credit losses for the economic concession granted to a borrower for changes in the timing and amount of contractual cash flows for such loans. |
Guarantees, Indemnifications and Warranties Policies | Guarantees and Other Off-Balance Sheet Credit Exposures Our guarantee activities primarily consist of mortgage-related guarantees in which we agree to absorb the credit risk of mortgage loans or other mortgage-related assets. In exchange for providing this guarantee, we receive an upfront or ongoing guarantee fee that is designed to be 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 depend on a number of factors, including our guarantee fee and the actual credit performance of the underlying financial instruments that we have guaranteed. We do not separately recognize guarantees to consolidated VIEs as we have already recognized the assets and liabilities of those VIEs on our consolidated balance sheets. When we issue a guarantee to a nonconsolidated VIE or other third party that exposes us to incremental credit risk, we recognize both a guarantee obligation at fair value and the consideration we receive for providing the guarantee, which typically consists of a guarantee asset that represents the fair value of future guarantee fees. As a practical expedient, the measurement of the fair value of the guarantee obligation is set equal to the consideration we receive to provide the guarantee, and no gain or loss is recognized upon issuance of the guarantee. Subsequently, we recognize changes in the fair value of the guarantee asset in current period earnings and amortize the guarantee obligation into earnings as we are released from risk under the guarantee. We also recognize an allowance for expected credit losses over the contractual period in which we are exposed to credit risk. See Note 6 for additional information on our allowance for credit losses on financial guarantees and other off-balance sheet credit exposures. |
Investments in Securities | We currently classify and account for our securities as either available-for-sale or trading. Securities classified as trading are reported at fair value with changes in fair value included in investment gains, net, in our consolidated statements of income. Securities classified as available-for-sale are reported at fair value with changes in fair value included in AOCI, net of taxes. See Note 16 for additional information on how we determine the fair value of securities. We generally record purchases and sales of non-mortgage-related securities on the trade date. We generally record purchases and sales of mortgage-related securities on the expected settlement date, with a corresponding derivative recorded on the trade date. We generally recognize interest income using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities. We recognize interest income using the prospective effective interest method for securities that can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment. Under this method, we recognize as interest income, over the expected life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis. We classify the cash flows related to both available-for-sale and trading securities as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities. Gains and losses on the sale of securities are included in investment gains, net, including those gains (losses) reclassified into earnings from AOCI. We use the specific identification method for determining the cost basis of a security in computing the gain or loss. |
Debt Securities Issued | Our debt is reported at amortized cost, with the exception of certain debt for which we elected the fair value option. Deferred items, including premiums, discounts, issuance costs, and hedge accounting-related basis adjustments, are reported as a component of total debt. These items are amortized and reported through interest expense using the effective interest method over the contractual life of the related indebtedness. Amortization of premiums, discounts, and issuance costs begins at the time of debt issuance. Amortization of hedge accounting-related basis adjustments begins upon the discontinuation of the related hedge relationship. We elected the fair value option on debt that contains embedded derivatives and certain other debt issuances. Changes in the fair value of these debt obligations are recorded in investment gains, net, with any upfront costs and fees incurred or received in exchange for the issuance of the debt being recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. For additional information on our election of the fair value option, see Note 16 . When we repurchase or call outstanding debt securities, we recognize the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of investment gains, net. Contemporaneous transfers of cash between us and a creditor in connection with the issuance of a new debt security and satisfaction of an existing debt security are accounted for as either an extinguishment or a modification of an existing debt security. If the debt securities have substantially different terms, the transaction is accounted for as an extinguishment of the existing debt security. The issuance of a new debt security is recorded at fair value, fees paid to the creditor are expensed as incurred, and fees paid to third parties are deferred and amortized into interest expense over the life of the new debt security using the effective interest method. If the terms of the existing debt security and the new debt security are not substantially different, the transaction is accounted for as a modification of the existing debt. Fees paid to the creditor are deferred and amortized into interest expense over the life of the modified debt security using the effective interest method and fees paid to third parties are expensed as incurred. We also engage in transactions whereby we enter into an agreement to sell and subsequently repurchase (or purchase and subsequently resell) agency securities. When these transactions involve securities issued by consolidated entities, they are treated as issuances and extinguishments of debt. |
Derivatives | Derivatives are reported at their fair value on our consolidated balance sheets. Changes in fair value on derivatives not in qualifying fair value hedge relationships are recorded as investment gains, net, on our consolidated statements of income. Derivatives in a net asset position, including net derivative interest receivable or payable, are reported as derivative assets, net, which is included in other assets on our consolidated balance sheets. Similarly, derivatives in a net liability position, including net derivative interest receivable or payable, are reported as derivative liabilities, net, which is included in other liabilities on our consolidated balance sheets. We offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting agreement. Non-cash collateral held is not recognized on our consolidated balance sheets as we do not obtain effective control over the collateral, and non-cash collateral posted is not derecognized from our consolidated balance sheets as we do not relinquish effective control over the collateral. Therefore, non-cash collateral held or posted is not presented as an offset against derivative assets or derivative liabilities on our consolidated balance sheets. See Note 10 for additional information on our collateralized arrangements. We evaluate whether financial instruments that we purchase or issue contain embedded derivatives. We generally elect to measure newly acquired or issued financial instruments that contain embedded derivatives at fair value, with changes in fair value recorded in earnings. On our consolidated statements of cash flows, cash flows related to derivatives are classified as either operating activities (such as periodic settlements of interest payments) or investing activities (such as variation margin payments and cash flows related to the acquisition and termination of derivatives) depending on the nature of the activity. Cash flows related to physical settlement of forward commitments accounted for as derivative instruments are classified as operating, investing, or financing activities depending on the financial instruments to which they relate. |
Derivatives, Methods of Accounting, Hedging Derivatives | We apply fair value hedge accounting to certain single-family mortgage loans where we hedge the changes in fair value of these loans attributable to the designated benchmark interest rate, using interest-rate swaps. We also apply fair value hedge accounting to certain issuances of debt where we hedge the changes in fair value of the debt attributable to the designated benchmark interest rate, using interest-rate swaps. Under the portfolio layer method fair value hedge accounting strategy, 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 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. We apply hedge accounting to qualifying hedge relationships. A qualifying hedge relationship exists when changes in the fair value of a derivative hedging instrument are expected to be highly effective in offsetting changes in the fair value of the hedged item attributable to the risk being hedged during the term of the hedge relationship. No amounts have been excluded from the assessment of hedge effectiveness. To assess hedge effectiveness, we use a statistical regression analysis. At inception of the hedge relationship, we prepare formal contemporaneous documentation of our risk management objective and strategies for undertaking the hedge. If a hedge relationship qualifies for fair value hedge accounting, all changes in fair value of the derivative hedging instrument, including interest accruals, are recognized in the same consolidated statements of 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 and interest expense, respectively, along with the changes in the fair value of the respective derivative hedging instruments. Changes in the fair value of the hedged item attributable to the risk being hedged are recognized as a cumulative basis adjustment against the mortgage loans and debt. The cumulative basis adjustments are amortized to the same consolidated statements of income line item used to present the changes in fair value of the hedged item using the effective interest method considering the contractual terms of the hedged item, with amortization beginning no later than the period in which hedge accounting was discontinued. |
Derivatives, Offsetting Fair Value Amounts, Policy | We use master netting and collateral agreements to reduce our credit risk exposure to our OTC derivative counterparties for interest-rate swap and option-based derivatives. Master netting agreements provide for the netting of amounts receivable and payable from an individual counterparty, as well as posting of collateral in the form of cash, Treasury securities or agency mortgage-related or debt securities, or a combination of both by either the counterparty or us, depending on which party is in a liability position. Although it is our practice not to repledge assets held as collateral, these agreements may allow us or our counterparties to repledge all or a portion of the collateral. We have master netting agreements in place with all of our OTC derivative counterparties. On a daily basis, the market value of each counterparty's derivatives outstanding is calculated to determine the amount of our net credit exposure, which is equal to the market value of derivatives in a net gain position by counterparty after giving consideration to collateral posted. In the event a counterparty defaults on its obligations under the derivatives agreement and the default is not remedied in the manner prescribed in the agreement, we have the right under the agreement to sell the collateral. As a result, our use of master netting and collateral agreements reduces our exposure to our counterparties in the event of default. |
Repurchase and Resale Agreements and Dollar Roll Transactions | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase 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 and we reasonably expect the borrower to continue to replenish the collateral to meet the requirements of the contract. As of December 31, 2023, all of our securities purchased under agreements to resell were fully collateralized. We utilize the GSD/FICC as a clearinghouse to transact many of our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. As a clearing member of GSD/FICC, we are required to post initial and variation margin payments and are exposed to the counterparty credit risk of GSD/FICC (including its clearing members). In the event a clearing member fails and causes losses to the GSD/FICC clearing system, we could be subject to the loss of the margin that we have posted to the GSD/FICC. Moreover, our exposure could exceed that amount, as members are generally required to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the GSD/FICC may execute in the future. We provide financing to investors in Freddie Mac securities to increase liquidity and expand the investor base for those securities. These transactions differ from the securities purchased under agreements to resell that we use for liquidity purposes as the counterparties we face may not be major financial institutions and we are exposed to greater counterparty credit risk for these institutions. As of both December 31, 2023 and December 31, 2022, $1.1 billion of our securities purchased under agreements to resell were used to provide financing to investors in Freddie Mac securities. 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 the transferor does not relinquish effective control over the securities transferred. These agreements may allow our counterparties to repledge all or a portion of the collateral. |
Stockholders' Equity | Treasury, as the holder of the senior preferred stock, is entitled to receive quarterly cash dividends, when, as, and if declared by our Board of Directors. The dividends we have paid to Treasury on the senior preferred stock have been declared by, and paid at the direction of, the Conservator, acting as successor to the rights, titles, powers, and privileges of the Board of Directors. See Note 2 for additional information concerning our senior preferred stock dividends. We account for the warrant in permanent equity. At issuance on September 7, 2008, we recognized the warrant at fair value, and we do not recognize subsequent changes in fair value while the warrant remains classified in equity. We recorded an aggregate fair value of $2.3 billion for the warrant as a component of additional paid-in-capital. We derived the fair value of the warrant using a modified Black-Scholes model. If the warrant is exercised, the stated value of the common stock issued will be reclassified to common stock on our consolidated balance sheets. The warrant was determined to be in-substance non-voting common stock, because the warrant's exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock). As a result, the shares associated with the warrant are included in the computation of basic and diluted earnings per share. The weighted average shares of common stock for the years ended December 31, 2023, 2022, and 2021 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. |
Stockholders' Equity Note, Redeemable Preferred Stock, Issue, Policy | No cash was received from Treasury under the Purchase Agreement in 2023 because we had positive net worth at December 31, 2022, March 31, 2023, June 30, 2023, and September 30, 2023 and, consequently, FHFA did not request a draw on our behalf in 2023. At December 31, 2023, our assets exceeded our liabilities under GAAP; therefore, no draw is being requested from Treasury under the Purchase Agreement. Common Stock Warrant Pursuant to the Purchase Agreement described in Note 2 , on September 7, 2008, we issued a warrant to purchase common stock to Treasury, in partial consideration of Treasury's commitment to provide funds to us. The warrant may be exercised in whole or in part at any time on or before September 7, 2028, by delivery to us of a notice of exercise, payment of the exercise price of $0.00001 per share, and the warrant. If the market price of one share of our common stock is greater than the exercise price, then, instead of paying the exercise price, Treasury may elect to receive shares equal to the value of the warrant (or portion thereof being canceled) pursuant to the formula specified in the warrant. Upon exercise of the warrant, Treasury may assign the right to receive the shares of common stock issuable upon exercise to any other person. We account for the warrant in permanent equity. At issuance on September 7, 2008, we recognized the warrant at fair value, and we do not recognize subsequent changes in fair value while the warrant remains classified in equity. We recorded an aggregate fair value of $2.3 billion for the warrant as a component of additional paid-in-capital. We derived the fair value of the warrant using a modified Black-Scholes model. If the warrant is exercised, the stated value of the common stock issued will be reclassified to common stock on our consolidated balance sheets. The warrant was determined to be in-substance non-voting common stock, because the warrant's exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock). As a result, the shares associated with the warrant are included in the computation of basic and diluted earnings per share. The weighted average shares of common stock for the years ended December 31, 2023, 2022, and 2021 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. Preferred Stock We have the option to redeem our preferred stock on specified dates, at their redemption price plus dividends accrued through the redemption date. However, without the consent of Treasury, we are restricted from making payments to purchase or redeem preferred stock as well as paying any preferred dividends, other than dividends on the senior preferred stock. All 24 classes of preferred stock are perpetual and non-cumulative, and carry no significant voting rights or rights to purchase additional Freddie Mac stock or securities. Costs incurred in connection with the issuance of preferred stock are charged to additional paid-in capital. |
Earnings Per Common Share | Basic earnings per common share is computed as net income attributable to common stockholders divided by the weighted average common shares for the period. The weighted average common shares 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. We deduct dividends or increases in liquidation preference attributable to the senior preferred stock from net income attributable to common stockholders in the period in which such amounts are determinable. Our diluted earnings per common share is the same as our basic earnings per common share because we had no common equivalent shares outstanding during the periods presented which could have had a dilutive or antidilutive effect. |
Segment Reporting | Segment Description Single-Family Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment. Multifamily Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk. |
Fair Value Measurements | The accounting guidance for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value and sets forth disclosure requirements regarding fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or, in the absence of a principal market, in the most advantageous market for the asset or liability. We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or non-recurring basis. Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The levels of the fair value hierarchy are defined as follows in priority order: n Level 1 - Inputs to the valuation techniques are based on quoted prices in active markets for identical assets or liabilities. n Level 2 - Inputs to the valuation techniques are based on observable inputs other than quoted prices in active markets for identical assets or liabilities. n Level 3 - One or more inputs to the valuation 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. |
Income Taxes | Income Tax Expense Total income tax expense includes: n Current income tax expense, which represents the amount of federal tax paid or payable to (or refundable from) the Internal Revenue Service, including interest and penalties and amounts accrued for unrecognized tax benefits, if any, and n Deferred income tax expense, which represents the net change in the deferred tax asset or liability balance during the year, including any change in the valuation allowance. Deferred Tax Assets, Net We use the asset and liability method of accounting for income taxes for financial reporting purposes. Under this method, deferred tax assets and liabilities are recognized based upon the expected future tax consequences of existing temporary differences between the financial reporting and the tax reporting basis of assets and liabilities using enacted statutory tax rates as well as tax net operating loss and tax credit carryforwards, if any. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. The realization of our net deferred tax assets is dependent upon the generation of sufficient taxable income. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Table - Schedule of Various Interest Entities | Table 3.1 - Nonconsolidated VIEs December 31, 2023 Carrying Amounts of the Assets and Liabilities On the Consolidated Balance Sheets Total Assets Maximum Exposure to Loss (In millions) Investment securities Accrued Interest Receivable and Other Assets (1) Liabilities (1) Single-Family: Securitization products $1,272 $172 $427 $30,298 $24,600 Resecuritization products (2) 4,952 67 626 110,320 110,320 CRT products (3) — 92 220 29,126 14 Total Single-Family 6,224 331 1,273 169,744 134,934 Multifamily: Securitization products (4) 5,985 5,082 4,652 360,928 321,262 CRT products (3) — 11 7 1,359 8 Total Multifamily 5,985 5,093 4,659 362,287 321,270 Other — 7 5 117 468 Total $12,209 $5,431 $5,937 $532,148 $456,672 December 31, 2022 Carrying Amounts of the Assets and Liabilities On the Consolidated Balance Sheets Total Assets Maximum Exposure to Loss (In millions) Investment securities Accrued Interest Receivable and Other Assets (1) Liabilities (1) Single-Family: Securitization products $965 $175 $436 $31,614 $25,772 Resecuritization products (2) 5,092 61 659 119,267 119,267 CRT products (3) — 197 52 30,549 105 Total Single-Family 6,057 433 1,147 181,430 145,144 Multifamily: Securitization products (4) 7,808 4,931 4,920 360,869 319,117 CRT products (3) — 2 2 972 — Total Multifamily 7,808 4,933 4,922 361,841 319,117 Other — 8 5 185 435 Total $13,865 $5,374 $6,074 $543,456 $464,696 (1) Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations. (2) Total assets and maximum exposure to loss are based on the UPB of Fannie Mae securities underlying commingled Freddie Mac resecuritization trusts. We exclude noncommingled resecuritization trusts from these amounts as we have already guaranteed the underlying collateral and therefore noncommingled resecuritizations do not involve any incremental assets or create any incremental exposure to credit risk. Total assets exclude $0.1 billion as of both December 31, 2023 and December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization trusts that we have consolidated as we own all of the outstanding securities issued by the VIE. (3) Maximum exposure to loss is based on our expected recovery receivables and excludes our obligations to make certain payments to the VIE to support payment of the interest due on the notes issued by the VIE, which we account for as derivative instruments. The notional value of these derivative instruments is equal to the total assets of the VIE. |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 consolidated balance sheets. Table 4.1 - Mortgage Loans December 31, 2023 December 31, 2022 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Held-for-sale UPB $3,527 $9,905 $13,432 $3,564 $9,544 $13,108 Cost basis and fair value adjustments, net (712) 221 (491) (696) (215) (911) Total held-for-sale loans, net 2,815 10,126 12,941 2,868 9,329 12,197 Held-for-investment UPB 2,996,509 59,203 3,055,712 2,941,505 48,379 2,989,884 Cost basis and fair value adjustments, net (1) 34,627 (291) 34,336 39,896 (71) 39,825 Allowance for credit losses (6,057) (326) (6,383) (7,314) (77) (7,391) Total held-for-investment loans, net (2) 3,025,079 58,586 3,083,665 2,974,087 48,231 3,022,318 Total mortgage loans, net $3,027,894 $68,712 $3,096,606 $2,976,955 $57,560 $3,034,515 (1) Includes ($0.2) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method hedge relationships as of December 31, 2023. (2) Includes $1.8 billion and $1.2 billion of multifamily held-for-investment loans for which we have elected the fair value option as of December 31, 2023 and December 31, 2022, respectively. The table below provides details of the UPB of loans we purchased and sold during the periods presented. Table 4.2 - Loans Purchased and Sold Year Ended December 31, (In millions) 2023 2022 2021 Single-Family: Purchases: Held-for-investment loans $299,886 $540,472 $1,215,276 Sales of held-for-sale loans (1) 1,253 2,211 5,514 Multifamily: Purchases: Held-for-investment loans 16,814 25,052 9,363 Held-for-sale loans 29,415 44,997 59,093 Sales of held-for-sale loans (2) 34,034 50,280 70,355 (1) Our sales of single-family loans reflect the sale of single-family seasoned loans. (2) Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates. Reclassifications We reclassify loans from held-for-investment to held-for-sale depending on our intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-investment to held-for-sale, we perform a collectability assessment. When we determine that a loan to be reclassified has experienced more-than-insignificant deterioration in credit quality since origination, the excess of the loan’s amortized cost basis over its fair value is written off against the allowance for credit losses prior to the reclassification. If the charge-off amount exceeds the existing allowance for credit losses amount, an additional provision for credit losses is recognized. Any remaining allowance for credit losses after the charge-off is reversed through provision for credit losses. We reclassify loans from held-for-sale to held-for-investment when we have both the intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-sale to held-for-investment, we reverse the loan’s held-for-sale valuation allowance, if any, and establish an allowance for credit losses as needed. The table below presents the allowance for credit losses or valuation allowance that was reversed or established due to loan reclassifications between held-for-investment and held-for-sale during the periods presented. Table 4.3 - Loan Reclassifications (1) 2023 2022 (In millions) UPB Allowance for Credit Losses Reversed or (Established) Valuation Allowance (Established) or Reversed UPB Allowance for Credit Losses Reversed or (Established) Valuation Allowance (Established) or Reversed Single-Family reclassifications from: Held-for-investment to held-for-sale $1,968 $37 $— $1,231 $30 $— Held-for-sale to held-for-investment (2) 191 16 20 249 15 16 Multifamily reclassifications from: Held-for-investment to held-for-sale 6,760 4 (58) 1,394 2 (4) Held-for-sale to held-for-investment 861 (1) 19 39 — — (1) Amounts exclude reclassifications related to loans for which we have elected the fair value option. (2) |
Table - Held-for-Investment Loans on Non-accrual | The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the period end. Table 4.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual (1) Non-Accrual Amortized Cost Basis Interest Income Recognized (2) (In millions) December 31, 2023 December 31, 2022 Year Ended December 31, 2023 Single-Family: 20- and 30-year or more, amortizing fixed-rate $12,682 $9,307 $256 15-year or less, amortizing fixed-rate 519 427 7 Adjustable-rate and other 257 361 5 Total Single-Family 13,458 10,095 268 Total Multifamily 64 42 3 Total Single-Family and Multifamily $13,522 $10,137 $271 Non-Accrual Amortized Cost Basis Interest Income Recognized (2) (In millions) December 31, 2022 December 31, 2021 Year Ended December 31, 2022 Single-Family: 20- and 30-year or more, amortizing fixed-rate $9,307 $17,013 $172 15-year or less, amortizing fixed-rate 427 844 5 Adjustable-rate and other 361 793 6 Total Single-Family 10,095 18,650 183 Total Multifamily 42 — 2 Total Single-Family and Multifamily $10,137 $18,650 $185 (1) Excludes amounts related to loans for which we have elected the fair value option. (2) Represents the amount of payments received during the period, including those received while the loans were on accrual status, for the held-for-investment loans on non-accrual status as of period end. The table below provides the amount of accrued interest receivable, net presented on our consolidated balance sheets and the amount of accrued interest receivable related to loans on non-accrual status at the end of the periods that was charged off. Table 4.5 - Accrued Interest Receivable, Net and Related Charge-offs Accrued Interest Receivable, Net Accrued Interest Receivable Related Charge-offs (In millions) December 31, 2023 December 31, 2022 Year Ended December 31, 2023 Year Ended December 31, 2022 Single-Family loans $8,833 $7,967 ($232) ($236) Multifamily loans 287 220 (2) — |
Table - Amortized Cost Basis of Held-For-Investment Mortgage Loans, by Credit Quality Indicator and Vintage | The tables below present the amortized cost basis of single-family held-for-investment loans by current LTV ratio. Our current LTV ratios are estimates based on available data through the end of each period presented. Table 4.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage December 31, 2023 Year of Origination Total (In millions) 2023 2022 2021 2020 2019 Prior Current LTV Ratio: 20- and 30-year or more, amortizing fixed-rate ≤ 60 $39,500 $93,279 $513,267 $542,449 $94,348 $411,663 $1,694,506 > 60 to 80 105,384 183,251 318,965 95,102 12,402 7,296 722,400 > 80 to 90 55,973 90,785 27,750 1,272 213 262 176,255 > 90 to 100 51,994 23,460 1,542 71 16 77 77,160 > 100 28 912 24 9 5 88 1,066 Total 20- and 30-year or more, amortizing fixed-rate 252,879 391,687 861,548 638,903 106,984 419,386 2,671,387 Current period gross charge-offs (1) — 12 37 43 45 243 380 15-year or less, amortizing fixed-rate ≤ 60 4,221 20,246 121,709 98,338 12,488 56,493 313,495 > 60 to 80 3,973 8,314 4,491 278 19 5 17,080 > 80 to 90 623 509 25 — — — 1,157 > 90 to 100 198 33 1 — — — 232 > 100 1 1 — — — 1 3 Total 15-year or less, amortizing fixed-rate 9,016 29,103 126,226 98,616 12,507 56,499 331,967 Current period gross charge-offs (1) — 1 2 1 — 2 6 Adjustable-rate and other ≤ 60 356 1,650 3,325 1,465 586 12,950 20,332 > 60 to 80 1,153 2,651 1,105 89 25 227 5,250 > 80 to 90 689 1,040 48 3 — 18 1,798 > 90 to 100 317 276 2 — — 8 603 > 100 — 16 — — — 4 20 Total Adjustable-rate and other 2,515 5,633 4,480 1,557 611 13,207 28,003 Current period gross charge-offs (1) — — — — — 1 1 Total for all loan product types by current LTV ratio: ≤ 60 44,077 115,175 638,301 642,252 107,422 481,106 2,028,333 > 60 to 80 110,510 194,216 324,561 95,469 12,446 7,528 744,730 > 80 to 90 57,285 92,334 27,823 1,275 213 280 179,210 > 90 to 100 52,509 23,769 1,545 71 16 85 77,995 > 100 29 929 24 9 5 93 1,089 Total Single-Family loans $264,410 $426,423 $992,254 $739,076 $120,102 $489,092 $3,031,357 Total current period gross charge-offs (1) $— $13 $39 $44 $45 $246 $387 Referenced footnotes are included after the prior period table. December 31, 2022 Year of Origination Total (In millions) 2022 2021 2020 2019 2018 Prior Current LTV Ratio: 20- and 30-year or more, amortizing fixed-rate ≤ 60 $66,153 $394,498 $489,315 $87,188 $38,955 $407,819 $1,483,928 > 60 to 80 158,421 424,141 190,167 28,991 7,870 10,426 820,016 > 80 to 90 79,901 90,006 4,405 569 164 419 175,464 > 90 to 100 86,109 8,911 397 56 24 143 95,640 > 100 2,568 49 6 6 5 156 2,790 Total 20- and 30-year or more, amortizing fixed-rate 393,152 917,605 684,290 116,810 47,018 418,963 2,577,838 15-year or less, amortizing fixed-rate ≤ 60 16,752 119,379 109,685 14,606 5,578 68,240 334,240 > 60 to 80 13,042 22,007 2,503 132 16 16 37,716 > 80 to 90 1,601 368 7 — — 1 1,977 > 90 to 100 570 5 — — — 1 576 > 100 3 — — — — 1 4 Total 15-year or less, amortizing fixed-rate 31,968 141,759 112,195 14,738 5,594 68,259 374,513 Adjustable-rate and other ≤ 60 1,255 2,779 1,524 634 428 15,139 21,759 > 60 to 80 2,322 1,956 214 76 28 445 5,041 > 80 to 90 1,127 186 5 1 1 34 1,354 > 90 to 100 836 11 — — — 14 861 > 100 26 — — — — 9 35 Total Adjustable-rate and other 5,566 4,932 1,743 711 457 15,641 29,050 Total for all loan product types by current LTV ratio: ≤ 60 84,160 516,656 600,524 102,428 44,961 491,198 1,839,927 > 60 to 80 173,785 448,104 192,884 29,199 7,914 10,887 862,773 > 80 to 90 82,629 90,560 4,417 570 165 454 178,795 > 90 to 100 87,515 8,927 397 56 24 158 97,077 > 100 2,597 49 6 6 5 166 2,829 Total Single-Family loans $430,686 $1,064,296 $798,228 $132,259 $53,069 $502,863 $2,981,401 (1) Excludes charge-offs related to accrued interest receivable and advances of pre-foreclosure costs. Multifamily The table below presents the amortized cost basis of our multifamily held-for-investment loans, for which we have not elected the fair value option, by credit quality indicator, based on available data through the end of each period presented. These indicators involve significant management judgment and are defined as follows: n "Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity; n "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses. In addition, this category generally includes loans in forbearance; n "Substandard" has a weakness that jeopardizes the timely full repayment; and n "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions. Table 4.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage December 31, 2023 Year of Origination Total (In millions) 2023 2022 2021 2020 2019 Prior Revolving Loans Category: Pass $13,804 $17,845 $7,430 $6,345 $4,420 $3,254 $2,266 $55,364 Special mention 20 85 28 43 294 106 — 576 Substandard — 33 188 259 223 464 — 1,167 Doubtful — — — — — — — — Total $13,824 $17,963 $7,646 $6,647 $4,937 $3,824 $2,266 $57,107 December 31, 2022 Year of Origination Total (In millions) 2022 2021 2020 2019 2018 Prior Revolving Loans Category: Pass $21,854 $7,638 $6,546 $4,784 $1,077 $2,646 $1,924 $46,469 Special mention — 39 65 232 7 113 — 456 Substandard — 1 3 27 7 131 — 169 Doubtful — — — — — — — — Total $21,854 $7,678 $6,614 $5,043 $1,091 $2,890 $1,924 $47,094 |
Table - Payment Status of Mortgage Loans | The table below presents the amortized cost basis of our single-family and multifamily held-for-investment loans, for which we have not elected the fair value option, by payment status. We report single-family loans in forbearance as past due during the forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance plan, based on the information reported to us by our servicers. We report multifamily loans in forbearance as current as long as the borrower is in compliance with the forbearance agreement, including the agreed upon repayment plan, even if payments are past due based on the loan's original contractual terms. Table 4.8 - Amortized Cost Basis of Held-for-Investment Loans by Payment Status December 31, 2023 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure (1) Total Three Months or More Past Due, and Accruing Interest Non-Accrual With No Allowance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,627,763 $25,528 $5,787 $12,309 $2,671,387 $— $406 15-year or less, amortizing fixed-rate 329,601 1,589 270 507 331,967 — 4 Adjustable-rate and other 27,317 342 95 249 28,003 — 49 Total Single-Family 2,984,681 27,459 6,152 13,065 3,031,357 — 459 Total Multifamily 57,031 12 — 64 57,107 — 23 Total Single-Family and Multifamily $3,041,712 $27,471 $6,152 $13,129 $3,088,464 $— $482 Referenced footnotes are included after the prior period table. December 31, 2022 (In millions) Current One Month Past Due Two Months Past Due Three Months or (1) Total Three Months or More Past Due, and Accruing Interest Non-Accrual With No Allowance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,541,057 $19,820 $4,603 $12,358 $2,577,838 $3,432 $522 15-year or less, amortizing fixed-rate 372,065 1,590 250 608 374,513 191 9 Adjustable-rate and other 28,262 325 88 375 29,050 30 67 Total Single-Family 2,941,384 21,735 4,941 13,341 2,981,401 3,653 598 Total Multifamily 47,039 13 — 42 47,094 — 42 Total Single-Family and Multifamily $2,988,423 $21,748 $4,941 $13,383 $3,028,495 $3,653 $640 (1) Includes $2.0 billion and $1.6 billion of single-family loans that were in the process of foreclosure as of December 31, 2023 and December 31, 2022, respectively. (2) Loans with no allowance for loan losses primarily represent loans that were previously charged off and for which the amount we expect to collect is sufficiently in excess of the amortized cost to result in recovery of the entire amortized cost basis if the property were foreclosed upon or otherwise subject to disposition. We exclude the amounts of allowance for credit losses on accrued interest receivable and advances of pre-foreclosure costs when determining whether a loan has an allowance for credit losses. |
Table - Loan Restructuring | For purposes of the disclosure related to single-family loan restructurings involving borrowers experiencing financial difficulty, we exclude loans that were held-for-sale either at the time of restructuring or at the period end. The table below presents the amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented. Table 4.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (1) 2023 (Dollars in millions) Payment Delay (2) Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Total as % of Class of Financing Receivable (3) Single-Family: 20- and 30-year or more, amortizing fixed-rate $16,774 $4,051 $128 $20,953 0.8 % 15-year or less, amortizing fixed-rate 798 — — 798 0.2 Adjustable-rate and other 179 19 5 203 0.7 Total Single-Family loan restructurings $17,751 $4,070 $133 $21,954 0.7 Referenced footnotes are included after the prior period table. 2022 (Dollars in millions) Payment Delay (2) Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Total as % of Class of Financing Receivable (3) Single-Family: 20- and 30-year or more, amortizing fixed-rate $21,968 $2,810 $6,699 $31,477 1.2 % 15-year or less, amortizing fixed-rate 1,318 16 1 1,335 0.4 Adjustable-rate and other 386 38 104 528 1.8 Total Single-Family loan restructurings $23,672 $2,864 $6,804 $33,340 1.1 (1) Type of loan restructurings reflects the cumulative effects of the loan restructurings received during the period. Includes loan modifications in the period in which the borrower completes the trial period and the loan is permanently modified. (2) Includes $8.3 billion and $12.5 billion related to payment deferral plans for 2023 and 2022, respectively. Also includes forbearance plans, repayment plans, and loan modifications that only involve payment delays. (3) Based on the amortized cost basis as of period end, divided by the total period-end amortized cost basis of the corresponding financing receivable class of single-family held-for-investment loans. The table below shows the financial effect of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented. Table 4.10 – Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (1) 2023 (Dollars in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Weighted-Average Payment Deferral or Principal Forbearance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate 1.0 % 175 $16 15-year or less, amortizing fixed-rate — 0 15 Adjustable-rate and other 1.6 202 17 2022 (Dollars in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Months of Term Extension Weighted-Average Payment Deferral or Principal Forbearance (2) Single-Family: 20- and 30-year or more, amortizing fixed-rate 1.4 % 187 $21 15-year or less, amortizing fixed-rate 0.6 356 23 Adjustable-rate and other 2.3 223 26 (1) Averages are based on payment deferral plans and loan modifications completed during the periods presented. The financial effects of forbearance plans and repayment plans consist of a payment delay of between one and twelve months. In addition, the financial effect of a forbearance plan is included at the time the forbearance plan is completed if the borrower exits forbearance by entering into a payment deferral plan or loan modification. (2) Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans. The following table provides the amortized cost basis of single-family held-for-investment loans that had a payment default (i.e., loans that became two months delinquent) during the periods presented and had been restructured within the previous 12 months preceding the payment default, when the borrower was experiencing financial difficulty at the time of the restructuring. Since we adopted ASU 2022-02 prospectively, single-family held-for-investment loans that were restructured prior to January 1, 2022, the date we adopted such guidance, have been excluded from the disclosures related to loan restructurings. Table 4.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty (1) 2023 (In millions) Payment Delay Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $2,488 $905 $302 $3,695 15-year or less, amortizing fixed-rate 97 — — 97 Adjustable-rate and other 30 6 6 42 Total Single-Family $2,615 $911 $308 $3,834 2022 (In millions) Payment Delay Payment Delay and Term Extension Payment Delay, Term Extension, and Interest Rate Reduction Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $1,746 $215 $408 $2,369 15-year or less, amortizing fixed-rate 95 — — 95 Adjustable-rate and other 39 5 6 50 Total Single-Family $1,880 $220 $414 $2,514 (1) Excludes forbearance plans and repayment plans as borrowers are typically past due based on the loan's original contractual terms at the time the borrowers enter into these plans. The following table provides the single-family held-for-investment loan performance in the 12 months after a restructuring involving borrowers experiencing financial difficulty. While a single-family loan is in a forbearance plan or repayment plan, payments continue to be due based on the loan’s original contractual terms because the loan has not been permanently modified. As a result, we report single-family loans in forbearance plans and repayment plans as delinquent to the extent that payments are past due based on the loan’s original contractual terms. Loans that have been restructured by entering into a payment deferral plan or loan modification are reported as delinquent to the extent that payments are past due based on the loan's restructured terms. Table 4.12 - Amortized Cost Basis of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty by Payment Status December 31, 2023 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $11,000 $2,619 $1,525 $5,809 $20,953 15-year or less, amortizing fixed-rate 432 88 57 220 797 Adjustable-rate and other 101 23 17 63 204 Total Single-Family $11,533 $2,730 $1,599 $6,092 $21,954 December 31, 2022 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due Total Single-Family: 20- and 30-year or more, amortizing fixed-rate $19,766 $2,819 $1,973 $6,919 $31,477 15-year or less, amortizing fixed-rate 781 124 91 339 1,335 Adjustable-rate and other 328 35 26 139 528 Total Single-Family $20,875 $2,978 $2,090 $7,397 $33,340 |
Table- Single-Family TDR Modification Metrics | The table below provides details of our single-family loan modifications that were classified as TDRs during the period presented. Table 4.13 - Single-Family TDR Modification Metrics 2021 Percentage of single-family loan modifications that were classified as TDRs with: Interest rate reductions and related term extensions 13 % Principal forbearance and related interest rate reductions and term extensions 33 Average coupon interest rate reduction 0.4 % Average months of term extension 155 |
Table - TDR Activity | The table below presents the volume of single-family and multifamily loans that were newly classified as TDRs during the period presented. 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 4.14 - TDR Activity 2021 (Dollars in millions) Number of Loans Post-TDR Amortized Cost Basis Single-Family (1)(2) : 20- and 30-year or more, amortizing fixed-rate 13,448 $2,368 15-year or less, amortizing fixed-rate 1,620 167 Adjustable-rate and other 680 96 Total Single-Family 15,748 2,631 Multifamily — — (1) The pre-TDR amortized cost basis for single-family loans initially classified as TDRs during the year ended December 31, 2021 was $2.6 billion. (2) Includes certain bankruptcy events and forbearance plans, repayment plans, payment deferral plans, and modification activities that did not qualify for the temporary relief related to TDRs provided by the CARES Act, based on servicer reporting at the time of the TDR event. |
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 period and had completed a modification during the year preceding the payment default. Table 4.15 - Payment Defaults of Completed TDR Modifications 2021 (Dollars in millions) Number of Loans Post-TDR Amortized Cost Basis Single-Family: 20- and 30-year or more, amortizing fixed-rate 3,044 $535 15-year or less, amortizing fixed-rate 121 13 Adjustable-rate and other 367 58 Total Single-Family 3,532 606 Multifamily — — |
Guarantees and Other Off-Bala_2
Guarantees and Other Off-Balance Sheet Credit Exposures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees [Abstract] | |
Table - Financial Guarantees | The table below presents information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could be required to make under the guarantee, the liability we have recognized on our consolidated balance sheets for the guarantee, and the maximum remaining term of the guarantee. 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. We do not believe the potential amount of future payments we could be required to make is representative of the actual payments we will be required to make or 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 enhancements. Table 5.1 - Financial Guarantees December 31, 2023 ( Dollars in millions , terms in years) UPB Maximum Exposure Recognized Liability (1) Maximum Remaining Term Single-Family mortgage-related guarantees: Nonconsolidated securitization products (2) $30,289 $24,600 $382 40 Other mortgage-related guarantees 8,692 8,692 161 28 Total Single-Family mortgage-related guarantees 38,981 33,292 543 Multifamily mortgage-related guarantees: Nonconsolidated securitization products (2)(3) $360,928 $321,262 $4,577 36 Other mortgage-related guarantees 10,761 10,761 383 35 Total Multifamily mortgage-related guarantees 371,689 332,023 4,960 Guarantees of Fannie Mae securities (4) $110,320 $110,320 $— 38 Other 117 468 — 30 December 31, 2022 ( Dollars in millions , terms in years) UPB Maximum Exposure Recognized Liability (1) Maximum Remaining Term Single-Family mortgage-related guarantees: Nonconsolidated securitization products (2) $31,604 $25,772 $391 40 Other mortgage-related guarantees 9,476 9,476 203 29 Total Single-Family mortgage-related guarantees 41,080 35,248 594 Multifamily mortgage-related guarantees: Nonconsolidated securitization products (2)(3) $360,869 $319,117 $4,889 37 Other mortgage-related guarantees 10,510 10,510 379 36 Total Multifamily mortgage-related guarantees 371,379 329,627 5,268 Guarantees of Fannie Mae securities (4) $119,267 $119,267 $— 39 Other 185 435 — 29 (1) Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 6 for additional information on our allowance for credit losses on off-balance sheet credit exposures. (2) Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE. (3) Includes UPB of $0.3 billion and $0.4 billion as of December 31, 2023 and December 31, 2022, respectively, related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off. In addition, includes guarantees that are accounted for as derivatives with UPB of $2.1 billion as of both December 31, 2023 and December 31, 2022. (4) Excludes $0.1 billion as of both December 31, 2023 and December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization trusts that we have consolidated as we own all of the outstanding securities issued by the VIE. The table below presents the payment status of the mortgage loans underlying our mortgage-related guarantees. Table 5.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status December 31, 2023 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure Total Single-Family $34,524 $2,172 $827 $1,458 $38,981 Multifamily 369,785 850 98 956 371,689 Total $404,309 $3,022 $925 $2,414 $410,670 December 31, 2022 (In millions) Current One Month Past Due Two Months Past Due Three Months or More Past Due, or in Foreclosure Total Single-Family $36,241 $2,072 $748 $2,019 $41,080 Multifamily 370,911 23 12 433 371,379 Total $407,152 $2,095 $760 $2,452 $412,459 Table 5.3 - Other Off-Balance Sheet Credit Exposures (In millions) December 31, 2023 December 31, 2022 Mortgage loan purchase commitments (1) $10,378 $9,609 Unsettled securities purchased under agreements to resell, net (2) 22,276 15,890 Other commitments (3) 4,701 6,403 Total $37,355 $31,902 (1) Includes $1.9 billion and $0.5 billion of commitments for which we have elected the fair value option as of December 31, 2023 and December 31, 2022, respectively. Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 9 for additional information on commitments accounted for as derivative instruments. (2) Net of $4.0 billion and $5.6 billion of unsettled securities sold under agreements to repurchase as of December 31, 2023 and December 31, 2022, respectively. (3) Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Table - Details of the Allowance for Credit Losses | The table below summarizes changes in our allowance for credit losses. Table 6.1 - Details of the Allowance for Credit Losses December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Single-Family Multifamily Total Beginning balance $7,746 $147 $7,893 $5,440 $78 $5,518 $6,353 $200 $6,553 Provision (benefit) for credit losses (1,172) 300 (872) 1,772 69 1,841 (919) (122) (1,041) Charge-offs (643) — (643) (505) — (505) (1,107) — (1,107) Recoveries collected 144 — 144 148 — 148 197 — 197 Other (1) 327 — 327 891 — 891 916 — 916 Ending balance $6,402 $447 $6,849 $7,746 $147 $7,893 $5,440 $78 $5,518 Components of the ending balance of the allowance for credit losses: Mortgage loans held-for-investment $6,057 $326 $6,383 $7,314 $77 $7,391 $4,913 $34 $4,947 Other (2) 345 121 466 432 70 502 527 44 571 Total ending balance $6,402 $447 $6,849 $7,746 $147 $7,893 $5,440 $78 $5,518 (1) Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications. (2) Primarily includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Table - Investments Securities | The table below summarizes the fair values of our investments in debt securities by classification. Table 7.1 - Investment Securities (In millions) December 31, 2023 December 31, 2022 Trading securities $38,385 $32,167 Available-for-sale securities 4,890 6,534 Total fair value of investment securities $43,275 $38,701 |
Table - Trading Securities | The table below presents the 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) December 31, 2023 December 31, 2022 Mortgage-related securities $8,113 $8,334 Non-mortgage-related securities 30,272 23,833 Total fair value of trading securities $38,385 $32,167 |
Table - Net Trading Gains and Losses | The table below provides details of our net trading gains (losses). Table 7.3 - Net Trading Gains (Losses) Year Ended December 31, (In millions) 2023 2022 2021 Net trading gains (losses) $440 ($3,531) ($2,394) Less: Net trading gains (losses) on securities sold 105 (1,685) (1,805) Net trading gains (losses) recognized during the period related to securities still held at period end $335 ($1,846) ($589) |
Table - Available-For-Sale Securities | At both December 31, 2023 and December 31, 2022, all available-for-sale securities were mortgage-related securities. The table below provides details of the securities classified as available-for-sale on our consolidated balance sheets. Table 7.4 - Available-for-Sale Securities December 31, 2023 Amortized Gross Unrealized Gains in Other Comprehensive Income Gross Unrealized Fair Value Accrued Interest Receivable (In millions) Agency mortgage-related securities $4,467 $13 ($110) $4,370 $10 Other mortgage-related securities 340 188 (8) 520 3 Total available-for-sale securities $4,807 $201 ($118) $4,890 $13 December 31, 2022 Amortized Gross Unrealized Gains in Other Comprehensive Income Gross Unrealized Fair Value Accrued Interest Receivable (In millions) Agency mortgage-related securities $6,215 $6 ($301) $5,920 $12 Other mortgage-related securities 429 188 (3) 614 3 Total available-for-sale securities $6,644 $194 ($304) $6,534 $15 |
Table - Available-For-Sale Securities in a Gross Unrealized Loss Position | The table below presents available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater. Table 7.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position December 31, 2023 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Agency mortgage-related securities $374 ($1) $3,006 ($108) Other mortgage-related securities 23 (4) 23 (5) Total available-for-sale securities in a gross unrealized loss position $397 ($5) $3,029 ($113) December 31, 2022 Less than 12 Months 12 Months or Greater (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Agency mortgage-related securities $5,086 ($253) $325 ($48) Other mortgage-related securities 46 (3) 5 — Total available-for-sale securities in a gross unrealized loss position $5,132 ($256) $330 ($48) |
Table - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities | Table 7.6 - Total Proceeds, Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities Year Ended December 31, (In millions) 2023 2022 2021 Total Proceeds $3,164 $1,371 $22,907 Gross realized gains 9 34 540 Gross realized losses (183) (10) (60) Net realized gains (losses) ($174) $24 $480 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Table - Total Debt, Net | The table below summarizes the balances of total debt on our consolidated balance sheets. Table 8.1 - Total Debt December 31, (In millions) 2023 2022 Debt of consolidated trusts $3,041,927 $2,979,070 Debt of Freddie Mac: Short-term debt 5,976 7,712 Long-term debt 160,443 159,050 Total debt of Freddie Mac 166,419 166,762 Total debt $3,208,346 $3,145,832 |
Table - Debt Securities of Consolidated Trusts Held by Third Parties | The table below summarizes the debt of consolidated trusts based on underlying loan product type. Table 8.2 - Debt of Consolidated Trusts December 31, 2023 December 31, 2022 (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: 20-and 30-year or more, fixed-rate 2024 - 2061 $2,603,100 $2,640,550 3.06 % 2023 - 2061 $2,507,235 $2,550,137 2.76 % 15-year or less, fixed-rate 2024 - 2039 326,242 331,291 2.20 2023 - 2038 367,844 374,339 2.14 Adjustable-rate and other 2024 - 2054 23,251 23,749 3.93 2023 - 2053 23,561 24,153 3.04 Total Single-Family 2,952,593 2,995,590 2,898,640 2,948,629 Multifamily 2024 - 2053 47,300 46,337 3.35 2023 - 2052 30,927 30,441 2.66 Total debt of consolidated trusts $2,999,893 $3,041,927 $2,929,567 $2,979,070 (1) Includes $2.1 billion and $1.9 billion at December 31, 2023 and December 31, 2022, respectively, of debt of consolidated trusts that represents the fair value of debt for which the fair value option was elected. (2) The effective interest rate for debt of consolidated trusts was 2.73% and 2.39% as of December 31, 2023 and December 31, 2022, respectively. |
Table - Other Short-term Debt | The table below summarizes the balances and effective interest rates for short-term debt. Table 8.3 - Short-Term Debt December 31, 2023 December 31, 2022 (Dollars in millions) Par Value Carrying Amount Weighted Average Effective Rate Par Value Carrying Amount Weighted Average Effective Rate Short-term debt: Discount notes and Reference Bills ® $6,032 $5,976 5.39 % $6,826 $6,822 3.71 % Medium-term notes — — — 890 890 1.81 Total short-term debt $6,032 $5,976 5.39 % $7,716 $7,712 3.49 % |
Table - Other Long-term Debt | The table below summarizes our long-term debt. Table 8.4 - Long-Term Debt December 31, 2023 December 31, 2022 (Dollars in millions) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Contractual Maturity Par Value Carrying Amount (1) Weighted Average Effective Rate (2) Long-term debt: Fixed-rate: Medium-term notes — callable 2024 - 2050 $139,344 $139,257 3.13 % 2023 - 2050 $103,584 $103,528 1.96 % Medium-term notes — non-callable 2024 - 2028 1,573 1,574 0.98 2023 - 2028 2,747 2,747 0.73 Reference Notes securities — non-callable 2025 - 2032 18,162 18,209 3.19 2023 - 2032 49,801 49,832 1.76 SCR debt notes 2031 - 2032 82 83 13.00 2031 - 2032 90 93 13.00 Variable-rate: Medium-term notes — callable 2024 - 2028 1,869 1,867 4.81 2023 - 2027 4,691 4,689 3.95 Medium-term notes — non-callable 2026 47 47 8.10 2026 47 47 8.10 STACR 2024 - 2042 2,095 2,006 11.45 2023 - 2042 4,562 4,448 8.79 Zero-coupon: Medium-term notes — non-callable 2024 - 2039 4,836 3,100 6.17 2023 - 2039 4,841 2,913 6.11 Other 2047 - 2053 — 121 0.84 2047 - 2052 — 137 0.82 Hedging-related basis adjustments N/A (5,821) N/A (9,384) Total long-term debt $168,008 $160,443 3.30 % $170,363 $159,050 2.20 % (1) Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.4 billion and $1.1 billion at December 31, 2023 and December 31, 2022, respectively, of long-term debt that represents the fair value of debt for which the fair value option was elected. (2) Based on carrying amount. |
Table - Contractual Maturity of Other Long-term Debt and Debt Securities of Consolidated Trusts Held by Third Parties | The table below summarizes the contractual maturities of long-term debt securities at December 31, 2023. Table 8.5 - Contractual Maturities of Long-Term Debt and Debt Securities (In millions) Amounts Annual Maturities Long-term debt (excluding STACR and SCR debt notes): 2024 $41,244 2025 61,187 2026 15,645 2027 12,530 2028 10,947 Thereafter 24,278 Debt of consolidated trusts, STACR, and SCR debt notes (1) 3,002,070 Total 3,167,901 Net discounts, premiums, debt issuance costs, hedge-related, and other basis adjustments (2) 34,469 Total debt of consolidated trusts, STACR, SCR and long-term debt $3,202,370 (1) Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty. (2) Other basis adjustments primarily represent changes in fair value on debt where we have elected the fair value option. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Table - Derivative Assets and Liabilities at Fair Value | Derivative Assets and Liabilities at Fair Value The table below presents the notional value and fair value of derivatives reported on our consolidated balance sheets. Table 9.1 - Derivative Assets and Liabilities at Fair Value December 31, 2023 December 31, 2022 Notional or Derivative Assets Derivative Liabilities Notional or Contractual Amount Derivative Assets Derivative Liabilities (In millions) Not designated as hedges Interest-rate risk management derivatives: Swaps $351,193 $1,638 ($462) $480,824 $1,762 ($526) Written options 48,227 — (1,746) 46,101 — (1,857) Purchased options (1) 89,790 4,251 — 92,010 4,302 — Futures 132,982 — — 182,330 — — Total interest-rate risk management derivatives 622,192 5,889 (2,208) 801,265 6,064 (2,383) Mortgage commitment derivatives 26,911 43 (10) 29,354 12 (11) CRT-related derivatives (2) 30,578 — (228) 31,647 — (55) Other 14,572 3 (567) 14,426 2 (624) Total derivatives not designated as hedges 694,253 5,935 (3,013) 876,692 6,078 (3,073) Designated as fair value hedges Interest-rate risk management derivatives: Swaps 172,202 276 (5,658) 181,298 321 (7,847) Total derivatives designated as fair value hedges 172,202 276 (5,658) 181,298 321 (7,847) Receivables (payables) 17 (36) 35 (25) Netting adjustments (3) (5,742) 7,834 (6,127) 10,187 Total derivative portfolio, net $866,455 $486 ($873) $1,057,990 $307 ($758) (1) Includes swaptions on credit indices with a notional or contractual amount of $6.4 billion and $10.1 billion at December 31, 2023 and December 31, 2022, respectively, and a fair value of $1.0 million and $2.0 million at December 31, 2023 and December 31, 2022, respectively. (2) Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements. (3) Represents counterparty netting and cash collateral netting. |
Table - Offsetting of Derivatives | The table below presents offsetting and collateral information related to derivatives which are subject to enforceable master netting agreements or similar arrangements. Table 9.2 - Offsetting of Derivatives December 31, 2023 December 31, 2022 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (In millions) OTC derivatives $6,165 ($7,866) $6,385 ($10,230) Cleared and exchange-traded derivatives 13 (36) 28 (25) Mortgage commitment derivatives 47 (10) 19 (11) Other 3 (795) 2 (679) Total derivatives 6,228 (8,707) 6,434 (10,945) Counterparty netting (4,210) 4,210 (4,468) 4,468 Cash collateral netting (1) (1,532) 3,624 (1,659) 5,719 Net amount presented in the consolidated balance sheets 486 (873) 307 (758) Gross amount not offset in the consolidated balance sheets (2) (366) 47 (218) 31 Net amount $120 ($826) $89 ($727) (1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset. (2) |
Table - Gains and Losses on Derivatives | The table below presents the gains and losses on derivatives not designated in qualifying hedge relationships. These amounts are reported on our consolidated statements of income as investment gains, net. Table 9.3 - Gains and Losses on Derivatives Year Ended December 31, (In millions) 2023 2022 2021 Not designated as hedges Interest-rate risk management derivatives: Swaps $359 $970 $1,007 Written options 170 (903) ($77) Purchased options (335) 1,794 ($716) Futures 197 2,249 $235 Total interest-rate risk management derivatives fair value gains (losses) 391 4,110 449 Mortgage commitment derivatives 17 2,743 713 CRT-related derivatives (1) (176) (172) 9 Other 11 (225) (20) Total derivatives not designated as hedges fair value gains (losses) $243 $6,456 $1,151 (1) |
Table - Gains and Losses on Fair Value Hedge | The table below presents the effects of fair value hedge accounting by consolidated statements of income line item, 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 9.4 - Gains and Losses on Fair Value Hedges Year Ended December 31, 2023 2022 2021 (In millions) Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in our consolidated statements of income in which the effects of fair value hedges are recorded: $105,363 ($86,821) $83,458 ($65,453) $61,527 ($43,947) Interest contracts on mortgage loans held-for-investment: Gain (loss) on fair value hedging relationships: Hedged items 671 — (5,817) — (457) — Derivatives designated as hedging instruments (854) — 5,000 — 529 — Interest accruals on hedging instruments 948 — (294) — (433) — Discontinued hedge related basis adjustments amortization 198 — (79) — (1,884) — Interest contracts on debt: Gain (loss) on fair value hedging relationships: Hedged items — (3,080) — 7,130 — 2,698 Derivatives designated as hedging instruments — 3,084 — (7,267) — (2,895) Interest accruals on hedging instruments — (4,065) — (1,053) — 931 Discontinued hedge related basis adjustment amortization — (377) — (8) — 55 |
Table - Cumulative Basis Adjustment on Fair Value Hedges | The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective balance sheet line item. Table 9.5 - Cumulative Basis Adjustments Due to Fair Value Hedging December 31, 2023 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Portfolio Layer Method (In millions) Total Under the Portfolio Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $1,115,454 ($2,253) ($220) ($2,033) $59,786 $11,670 Mortgage loans held-for-sale 128 1 — 1 — — Debt (143,407) 5,821 — 29 — — December 31, 2022 Carrying Amount Assets / (Liabilities) Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount Closed Portfolio Under the Portfolio Layer Method (In millions) Total Under the Portfolio Layer Method Discontinued - Hedge Related Total Amount by Amortized Cost Basis Designated Amount by UPB Mortgage loans held-for-investment $1,108,098 ($3,122) ($959) ($2,163) $79,070 $11,516 Mortgage loans held-for-sale 67 1 — 1 — — Debt (142,511) 9,384 — 123 — — |
Collateralized Agreements (Tabl
Collateralized Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Table - Offsetting of Financial Assets and Liabilities | Table 10.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities December 31, 2023 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $105,393 ($10,245) $95,148 ($95,148) $— Liabilities: Securities sold under agreements to repurchase (10,245) 10,245 — — — Referenced footnote is included after the prior period table. December 31, 2022 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $99,286 ($11,991) $87,295 ($87,295) $— Liabilities: Securities sold under agreements to repurchase (11,991) 11,991 — — — (1) For securities purchased under agreements to resell, includes $104.2 billion and $54.7 billion of collateral that we had the right to repledge as of December 31, 2023 and December 31, 2022, respectively. We repledged $0.4 billion and less than $0.1 billion of collateral at December 31, 2023 and December 31, 2022, respectively. |
Table - Offsetting of Derivatives | Table 10.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities December 31, 2023 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $105,393 ($10,245) $95,148 ($95,148) $— Liabilities: Securities sold under agreements to repurchase (10,245) 10,245 — — — Referenced footnote is included after the prior period table. December 31, 2022 (In millions) Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Gross Amount Not Offset in the Consolidated Balance Sheets (1) Net Amount Assets: Securities purchased under agreements to resell $99,286 ($11,991) $87,295 ($87,295) $— Liabilities: Securities sold under agreements to repurchase (11,991) 11,991 — — — (1) For securities purchased under agreements to resell, includes $104.2 billion and $54.7 billion of collateral that we had the right to repledge as of December 31, 2023 and December 31, 2022, respectively. We repledged $0.4 billion and less than $0.1 billion of collateral at December 31, 2023 and December 31, 2022, respectively. |
Table - Contractual maturity of collateral pledged | The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities. Table 10.2 - Remaining Contractual Maturity December 31, 2023 (In millions) Overnight and Continuous 30 days or Less After 30 days Through 90 days Greater Than Total Securities sold under agreements to repurchase $— $10,245 $— $— $10,245 December 31, 2022 (In millions) Overnight and Continuous 30 days or Less After 30 days Through 90 days Greater Than Total Securities sold under agreements to repurchase $— $11,991 $— $— $11,991 |
Table - Collateral in the Form of Securities Pledged | The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge. Table 10.3 - Collateral in the Form of Securities Pledged December 31, 2023 (In millions) Derivatives Securities Sold Under Agreements to Repurchase Other (1) Total Trading securities $1,866 $3,666 $2,370 $7,902 Other assets — 4,555 — 4,555 Total securities pledged $1,866 $8,221 $2,370 $12,457 December 31, 2022 (In millions) Derivatives Securities Sold Under Agreements to Repurchase Other (1) Total Trading securities $1,533 $2,910 $1,347 $5,790 Other assets — 6,543 — 6,543 Total securities pledged $1,533 $9,453 $1,347 $12,333 (1) Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses. |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Table - Senior Preferred Stock | The table below provides a summary of our senior preferred stock outstanding at December 31, 2023. Table 11.1 - 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 Adjustments: 2008 1.00 1.00 $1.00 $1,000 $1,000 2017 — — — N/A 3,000 2019 — — — N/A 3,674 2020 — — — N/A 7,217 2021 — — — N/A 11,420 2022 — — — N/A 9,919 2023 — — — N/A 9,431 Total non-draw adjustments 1.00 1.00 1.00 45,661 Draw Adjustments: 2008 — — — N/A 13,800 2009 — — — N/A 36,900 2010 — — — N/A 12,500 2011 — — — N/A 7,971 2012 — — — N/A 165 2018 — — — N/A 312 Total draw adjustments — — — 71,648 Total senior preferred stock 1.00 1.00 $1.00 $117,309 |
Table - Preferred Stock | The table below provides a summary of our preferred stock outstanding at their redemption values at December 31, 2023. Table 11.2 - Preferred Stock ( In millions , except redemption price per share) Issue Date Shares Authorized Shares Outstanding Total Par Value Redemption Price per Share Total Outstanding Balance Redeemable On or After OTCQB Symbol Preferred stock: 1996 Variable-rate (1)(2) April 26, 1996 5.00 5.00 $5.00 $50.00 $250 June 30, 2001 FMCCI 5.81% October 27, 1997 3.00 3.00 3.00 50.00 150 October 27, 1998 (3) 5% March 23, 1998 8.00 8.00 8.00 50.00 400 March 31, 2003 FMCKK 1998 Variable-rate (1)(4) September 23 and 29, 1998 4.40 4.40 4.40 50.00 220 September 30, 2003 FMCCG 5.10% September 23, 1998 8.00 8.00 8.00 50.00 400 September 30, 2003 FMCCH 5.30% October 28, 1998 4.00 4.00 4.00 50.00 200 October 30, 2000 (3) 5.10% March 19, 1999 3.00 3.00 3.00 50.00 150 March 31, 2004 (3) 5.79% July 21, 1999 5.00 5.00 5.00 50.00 250 June 30, 2009 FMCCK 1999 Variable-rate (5) November 5, 1999 5.75 5.75 5.75 50.00 287 December 31, 2004 FMCCL 2001 Variable-rate (6) January 26, 2001 6.50 6.50 6.50 50.00 325 March 31, 2003 FMCCM 2001 Variable-rate (1)(7) March 23, 2001 4.60 4.60 4.60 50.00 230 March 31, 2003 FMCCN 5.81% March 23, 2001 3.45 3.45 3.45 50.00 173 March 31, 2011 FMCCO 6% May 30, 2001 3.45 3.45 3.45 50.00 173 June 30, 2006 FMCCP 2001 Variable-rate (8) May 30, 2001 4.02 4.02 4.02 50.00 201 June 30, 2003 FMCCJ 5.70% October 30, 2001 6.00 6.00 6.00 50.00 300 December 31, 2006 FMCKP 5.81% January 29, 2002 6.00 6.00 6.00 50.00 300 March 31, 2007 (3) 2006 Variable-rate (1)(9) July 17, 2006 15.00 15.00 15.00 50.00 750 June 30, 2011 FMCCS 6.42% July 17, 2006 5.00 5.00 5.00 50.00 250 June 30, 2011 FMCCT 5.90% October 16, 2006 20.00 20.00 20.00 25.00 500 September 30, 2011 FMCKO 5.57% January 16, 2007 44.00 44.00 44.00 25.00 1,100 December 31, 2011 FMCKM 5.66% April 16, 2007 20.00 20.00 20.00 25.00 500 March 31, 2012 FMCKN 6.02% July 24, 2007 20.00 20.00 20.00 25.00 500 June 30, 2012 FMCKL 6.55% September 28, 2007 20.00 20.00 20.00 25.00 500 September 30, 2017 FMCKI 2007 Fixed-to-floating rate (1)(10) December 4, 2007 240.00 240.00 240.00 25.00 6,000 December 31, 2012 FMCKJ Total, preferred stock 464.17 464.17 $464.17 $14,109 (1) On May 11, 2023, we posted fallback information on our legacy LIBOR-indexed securities, including the classes of our Preferred Stock that used either three-month LIBOR or 12-month LIBOR as their reference rates. Beginning on July 1, 2023, those classes transitioned from three-month LIBOR and 12-month LIBOR to spread-adjusted three-month CME Term SOFR and spread-adjusted 12-month CME Term SOFR, respectively. (2) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 9.00%. (3) Issued through private placement. (4) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 7.50%. (5) Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. Optional redemption on December 31, 2004 and on December 31 every five years thereafter. (6) Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every two years thereafter. (7) Dividend rate resets on April 1 every year based on spread-adjusted 12-month CME Term SOFR minus 0.20%, and is capped at 11.00%. Optional redemption on March 31, 2003 and on March 31 every year thereafter. (8) Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. Optional redemption on June 30, 2003 and on June 30 every two years thereafter. (9) Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 0.50% but not less than 4.00% . (10) Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of spread-adjusted three-month CME Term SOFR plus 4.16% per annum; or (b) 7.875% per annum. Optional redemption on December 31, 2012 and on December 31 every five years thereafter . |
Net Interest Income (Tables)
Net Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Components of Net Interest Income [Abstract] | |
Components of Net Interest Income | Table 12.1 - Components of Net Interest Income Year Ended December 31, (In millions) 2023 2022 2021 Interest income Mortgage loans $96,985 $79,826 $59,130 Investment securities 1,571 1,640 2,261 Securities purchased under agreements to resell 6,135 1,718 48 Other 672 274 88 Total interest income 105,363 83,458 61,527 Interest expense Debt of consolidated trusts (76,703) (61,404) (42,209) Debt of Freddie Mac: Short-term debt (789) (238) — Long-term debt (9,329) (3,811) (1,738) Total interest expense (86,821) (65,453) (43,947) Net interest income 18,542 18,005 17,580 (Provision) benefit for credit losses 872 (1,841) 1,041 Net interest income after benefit (provision) for credit losses $19,414 $16,164 $18,621 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Table - Federal Income Tax (Expense) Benefit | The table below presents the components of our federal income tax expense for the past three years. We are exempt from state and local income taxes. Table 13.1 - Federal Income Tax Expense Year Ended December 31, (In millions) 2023 2022 2021 Current income tax expense ($1,003) ($1,749) ($2,617) Deferred income tax expense (1,658) (528) (473) Total income tax expense ($2,661) ($2,277) ($3,090) |
Table - Reconciliation of Statutory to Effective Tax Rate | The table below presents the reconciliation between our federal statutory income tax rate and our effective tax rate for the past three years. Table 13.2 - Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate Year Ended December 31, 2023 2022 2021 (Dollars in millions) Amount Percent Amount Percent Amount Percent Statutory corporate tax rate ($2,772) 21.0 % ($2,437) 21.0 % ($3,192) 21.0 % Tax-exempt interest 10 (0.1) 7 (0.1) 20 (0.2) Tax credits 242 (1.8) 190 (1.6) 133 (0.9) Valuation allowance 16 (0.1) 18 (0.2) (11) 0.1 Other (157) 1.2 (55) 0.5 (40) 0.3 Effective tax rate ($2,661) 20.2 % ($2,277) 19.6 % ($3,090) 20.3 % |
Table - Deferred Tax Assets and Liabilities | The table below presents the balance of significant deferred tax assets and liabilities at December 31, 2023 and December 31, 2022. The valuation allowance relates to capital loss carryforwards included in Other items, net that we expect to expire unused. Table 13.3 - Deferred Tax Assets and Liabilities (In millions) December 31, 2023 December 31, 2022 Deferred tax assets: Deferred fees $1,821 $2,197 Basis differences related to derivative instruments 1,042 1,745 Credit related items and allowance for loan losses 863 1,457 Basis differences related to assets held-for-investment and held-for-sale 696 1,549 Other items, net 439 178 Total deferred tax assets 4,861 7,126 Deferred tax liabilities: Basis differences related to fair value hedge accounting (749) (1,315) Other items, net (18) — Total deferred tax liabilities (767) (1,315) Valuation allowance (18) (34) Deferred tax assets, net $4,076 $5,777 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Table - Segment Earnings and Reconciliation to GAAP Financial Statements | The table below presents the financial results for our Single-Family and Multifamily segments. Table 14.1 - Segment Financial Results Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Single-Family Multifamily Total Single-Family Multifamily Total Single-Family Multifamily Total (In millions) Net interest income $17,657 $885 $18,542 $17,067 $938 $18,005 $16,273 $1,307 $17,580 Non-interest income Guarantee income 103 1,512 1,615 109 674 783 114 918 1,032 Investment gains, net 296 411 707 1,280 689 1,969 361 2,385 2,746 Other income 211 154 365 295 212 507 479 114 593 Non-interest income 610 2,077 2,687 1,684 1,575 3,259 954 3,417 4,371 Net revenues 18,267 2,962 21,229 18,751 2,513 21,264 17,227 4,724 21,951 (Provision) benefit for credit losses 1,172 (300) 872 (1,772) (69) (1,841) 919 122 1,041 Non-interest expense (8,118) (784) (8,902) (7,148) (671) (7,819) (7,075) (718) (7,793) Income before income tax expense 11,321 1,878 13,199 9,831 1,773 11,604 11,071 4,128 15,199 Income tax expense (2,282) (379) (2,661) (1,929) (348) (2,277) (2,251) (839) (3,090) Net income 9,039 1,499 10,538 7,902 1,425 9,327 8,820 3,289 12,109 Other comprehensive income (loss), net of taxes and reclassification adjustments 10 156 166 (24) (318) (342) (379) (110) (489) Comprehensive income $9,049 $1,655 $10,704 $7,878 $1,107 $8,985 $8,441 $3,179 $11,620 |
Table - Reconciliation of Assets from Segment to Consolidated | The table below presents total assets for our Single-Family and Multifamily segments. Table 14.2 - Segment Assets (In millions) December 31, 2023 December 31, 2022 Single-Family $3,038,910 $2,986,045 Multifamily 440,797 429,302 Total segment assets 3,479,707 3,415,347 Reconciling items (1) (198,731) (207,014) Total assets per consolidated balance sheets $3,280,976 $3,208,333 (1) |
Concentration of Credit and O_2
Concentration of Credit and Other Risks (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Table - Concentration of Credit Risk | The table below summarizes the concentration by geographic area of our Single-Family mortgage portfolio. See Note 3 , Note 4 , Note 5 , and Note 6 for additional information about credit risk associated with single-family loans that we hold or guarantee. Table 15.1 - Concentration of Credit Risk of Our Single-Family Mortgage Portfolio December 31, 2023 (Dollars in millions) Portfolio UPB (1) % of Portfolio SDQ Rate Region (2) : West $910,597 30 % 0.43 % Northeast 703,581 23 0.64 Southeast 530,617 17 0.58 Southwest 451,271 15 0.54 North Central 442,593 15 0.54 Total $3,038,659 100 % 0.55 State: California $515,267 17 % 0.42 Texas 212,800 7 0.57 Florida 200,169 7 0.65 New York 132,432 4 0.93 Illinois 113,806 4 0.69 All other 1,864,185 61 0.52 Total $3,038,659 100 % 0.55 (1) Excludes UPB of loans underlying certain securitization products for which data was not available. (2) The table below summarizes the concentration by geographic area of our Multifamily mortgage portfolio. Table 15.2 - Concentration of Credit Risk of Our Multifamily Mortgage Portfolio December 31, 2023 (Dollars in millions) Portfolio UPB % of Portfolio Delinquency Rate (1) Region (2)(3) : West $109,815 25 % 0.16 % Northeast 107,326 24 0.52 Southwest 91,406 21 0.26 Southeast 88,762 20 0.10 North Central 43,488 10 0.40 Total $440,797 100 % 0.28 State (3) : California $58,186 13 % 0.07 Texas 56,231 13 0.28 Florida 38,440 9 0.03 New York 33,815 8 1.13 Georgia 18,178 4 0.01 All other 235,947 53 0.27 Total $440,797 100 % 0.28 (1) Based on loans two monthly payments or more delinquent or in foreclosure. (2) 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); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI). (3) The UPB of loans collateralized by properties located in multiple regions or states are reported entirely in the region or state with the largest underlying collateral UPB as of origination. The table below summarizes the concentration of mortgage insurer counterparties who provided 10% or more of our overall primary mortgage insurance coverage. Table 15.3 - Primary Mortgage Insurer Concentration Mortgage Insurance Coverage (1) Mortgage Insurer December 31, 2023 Mortgage Guaranty Insurance Corporation 18 % Arch Mortgage Insurance Company 18 Radian Guaranty Inc. 17 Essent Guaranty, Inc. 17 Enact 16 National Mortgage Insurance Corporation 14 Total 100 % (1) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Table - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis | Table 16.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2023 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investment securities: Available-for-sale $— $4,212 $678 $— $4,890 Trading: Mortgage-related securities — 5,342 2,771 — 8,113 Non-mortgage-related securities 29,854 418 — — 30,272 Total trading securities 29,854 5,760 2,771 — 38,385 Total investment securities 29,854 9,972 3,449 — 43,275 Mortgage loans held-for-sale — 6,460 896 — 7,356 Mortgage loans held-for-investment — 1,333 473 — 1,806 Other assets: Guarantee assets — — 5,351 — 5,351 Derivative assets, net — 6,209 2 (5,725) 486 Other assets — 92 166 — 258 Total other assets — 6,301 5,519 (5,725) 6,095 Total assets carried at fair value on a recurring basis $29,854 $24,066 $10,337 ($5,725) $58,532 Liabilities: Debt: Debt of consolidated trusts $— $1,707 $343 $— $2,050 Debt of Freddie Mac — 336 90 — 426 Total debt — 2,043 433 — 2,476 Other liabilities: Derivative liabilities, net — 8,608 63 (7,798) 873 Other liabilities — — — — — Total other liabilities — 8,608 63 (7,798) 873 Total liabilities carried at fair value on a recurring basis $— $10,651 $496 ($7,798) $3,349 Referenced footnote is included after the prior period table. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Total Assets: Investment securities: Available-for-sale $— $5,640 $894 $— $6,534 Trading: Mortgage-related securities — 5,603 2,731 — 8,334 Non-mortgage-related securities 23,453 380 — — 23,833 Total trading securities 23,453 5,983 2,731 — 32,167 Total investment securities 23,453 11,623 3,625 — 38,701 Mortgage loans held-for-sale — 2,908 310 — 3,218 Mortgage loans held-for-investment — 1,104 110 — 1,214 Other assets: Guarantee assets — — 5,442 — 5,442 Derivative assets, net — 6,397 2 (6,092) 307 Other assets — 12 129 — 141 Total other assets — 6,409 5,573 (6,092) 5,890 Total assets carried at fair value on a recurring basis $23,453 $22,044 $9,618 ($6,092) $49,023 Liabilities: Debt: Debt of consolidated trusts $— $1,656 $288 $— $1,944 Debt of Freddie Mac — 1,003 100 — 1,103 Total debt — 2,659 388 — 3,047 Other liabilities: Derivative liabilities, net — 10,823 97 (10,162) 758 Other liabilities — 1 — — 1 Total other liabilities — 10,824 97 (10,162) 759 Total liabilities carried at fair value on a recurring basis $— $13,483 $485 ($10,162) $3,806 |
Table - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our consolidated statements of income for Level 3 assets and liabilities. Table 16.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs Year Ended December 31, 2023 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2023 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2023 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $894 $2 ($5) $— $— $— ($171) $— ($42) $678 $— ($4) Trading 2,731 (540) — 634 — — (54) — — 2,771 112 — Total investment securities 3,625 (538) (5) 634 — — (225) — (42) 3,449 112 (4) Mortgage loans held-for-sale 310 6 — 2,038 — (1,152) (24) 12 (294) 896 32 — Mortgage loans held-for-investment 110 (81) — — — — (15) 530 (71) 473 (84) — Other assets: Guarantee assets 5,442 71 — — 725 — (887) — — 5,351 71 — Other assets 131 67 — (20) 11 (3) (18) — — 168 66 — Total other assets 5,573 138 — (20) 736 (3) (905) — — 5,519 137 — Total assets 9,618 (475) (5) 2,652 736 (1,155) (1,169) 542 (407) 10,337 197 (4) Liabilities Debt $388 ($41) $— ($3) $97 $— ($8) $— $— $433 ($17) $— Other liabilities 97 14 — — 1 — (49) — — 63 (34) — Total liabilities $485 ($27) $— ($3) $98 $— ($57) $— $— $496 ($51) $— Referenced footnotes are included after the prior period table. Year Ended December 31, 2022 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2022 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2022 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,286 $30 ($103) $51 $— ($86) ($314) $30 $— $894 ($1) ($41) Trading 3,386 (1,309) — 843 — — (169) — (20) 2,731 (595) — Total investment securities 4,672 (1,279) (103) 894 — (86) (483) 30 (20) 3,625 (596) (41) Mortgage loans held-for-sale — (54) — — — (94) (26) 486 (2) 310 (53) — Mortgage loans held-for-investment — (27) — — — — (12) 149 — 110 (27) — Other assets: Guarantee assets 5,919 (783) — — 1,216 — (910) — — 5,442 (783) — Other assets 101 62 — (13) 17 (10) (26) — — 131 62 — Total other assets 6,020 (721) — (13) 1,233 (10) (936) — — 5,573 (721) — Total assets 10,692 (2,081) (103) 881 1,233 (190) (1,457) 665 (22) 9,618 (1,397) (41) Liabilities Debt $294 $14 $— ($21) $163 $— ($62) $— $— $388 $50 $— Other liabilities 24 79 — 1 — — (7) — — 97 74 — Total liabilities $318 $93 $— ($20) $163 $— ($69) $— $— $485 $124 $— Year Ended December 31, 2021 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2021 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2021 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,588 $29 $7 $— $— ($32) ($306) $— $— $1,286 $26 $7 Trading 3,259 (869) — 1,536 — (277) (83) — (180) 3,386 (872) — Total investment securities 4,847 (840) 7 1,536 — (309) (389) — (180) 4,672 (846) 7 Other assets: Guarantee assets 5,509 (378) — — 1,742 — (954) — — 5,919 (378) — Other assets 171 (54) — (6) 19 (9) (20) — — 101 (55) — Total other assets 5,680 (432) — (6) 1,761 (9) (974) — — 6,020 (433) — Total assets 10,527 (1,272) 7 1,530 1,761 (318) (1,363) — (180) 10,692 (1,279) 7 Liabilities Debt $323 ($30) $— ($8) $169 $— ($160) $— $— $294 ($19) $— Other liabilities 19 7 — 7 2 (1) (10) — — 24 (3) — Total liabilities $342 ($23) $— ($1) $171 ($1) ($170) $— $— $318 ($22) $— (1) For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively. (2) |
Table - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our consolidated statements of income for Level 3 assets and liabilities. Table 16.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs Year Ended December 31, 2023 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2023 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2023 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $894 $2 ($5) $— $— $— ($171) $— ($42) $678 $— ($4) Trading 2,731 (540) — 634 — — (54) — — 2,771 112 — Total investment securities 3,625 (538) (5) 634 — — (225) — (42) 3,449 112 (4) Mortgage loans held-for-sale 310 6 — 2,038 — (1,152) (24) 12 (294) 896 32 — Mortgage loans held-for-investment 110 (81) — — — — (15) 530 (71) 473 (84) — Other assets: Guarantee assets 5,442 71 — — 725 — (887) — — 5,351 71 — Other assets 131 67 — (20) 11 (3) (18) — — 168 66 — Total other assets 5,573 138 — (20) 736 (3) (905) — — 5,519 137 — Total assets 9,618 (475) (5) 2,652 736 (1,155) (1,169) 542 (407) 10,337 197 (4) Liabilities Debt $388 ($41) $— ($3) $97 $— ($8) $— $— $433 ($17) $— Other liabilities 97 14 — — 1 — (49) — — 63 (34) — Total liabilities $485 ($27) $— ($3) $98 $— ($57) $— $— $496 ($51) $— Referenced footnotes are included after the prior period table. Year Ended December 31, 2022 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2022 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2022 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,286 $30 ($103) $51 $— ($86) ($314) $30 $— $894 ($1) ($41) Trading 3,386 (1,309) — 843 — — (169) — (20) 2,731 (595) — Total investment securities 4,672 (1,279) (103) 894 — (86) (483) 30 (20) 3,625 (596) (41) Mortgage loans held-for-sale — (54) — — — (94) (26) 486 (2) 310 (53) — Mortgage loans held-for-investment — (27) — — — — (12) 149 — 110 (27) — Other assets: Guarantee assets 5,919 (783) — — 1,216 — (910) — — 5,442 (783) — Other assets 101 62 — (13) 17 (10) (26) — — 131 62 — Total other assets 6,020 (721) — (13) 1,233 (10) (936) — — 5,573 (721) — Total assets 10,692 (2,081) (103) 881 1,233 (190) (1,457) 665 (22) 9,618 (1,397) (41) Liabilities Debt $294 $14 $— ($21) $163 $— ($62) $— $— $388 $50 $— Other liabilities 24 79 — 1 — — (7) — — 97 74 — Total liabilities $318 $93 $— ($20) $163 $— ($69) $— $— $485 $124 $— Year Ended December 31, 2021 Balance, Total Realized/Unrealized Gains/Losses (1) Purchases Issues Sales Settlements, Transfers Transfers Balance, Change in Unrealized Gains/Losses (1) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2021 (2) Change in Unrealized Gains/Losses (1) , Net of Tax, Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2021 (In millions) Included in Included in Other Assets Investment securities: Available-for-sale $1,588 $29 $7 $— $— ($32) ($306) $— $— $1,286 $26 $7 Trading 3,259 (869) — 1,536 — (277) (83) — (180) 3,386 (872) — Total investment securities 4,847 (840) 7 1,536 — (309) (389) — (180) 4,672 (846) 7 Other assets: Guarantee assets 5,509 (378) — — 1,742 — (954) — — 5,919 (378) — Other assets 171 (54) — (6) 19 (9) (20) — — 101 (55) — Total other assets 5,680 (432) — (6) 1,761 (9) (974) — — 6,020 (433) — Total assets 10,527 (1,272) 7 1,530 1,761 (318) (1,363) — (180) 10,692 (1,279) 7 Liabilities Debt $323 ($30) $— ($8) $169 $— ($160) $— $— $294 ($19) $— Other liabilities 19 7 — 7 2 (1) (10) — — 24 (3) — Total liabilities $342 ($23) $— ($1) $171 ($1) ($170) $— $— $318 ($22) $— (1) For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively. (2) |
Table - Quantitative Information about Recurring Level 3 Fair Value Measurements | The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis. Table 16.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements December 31, 2023 Level 3 Predominant Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted (1) Assets Investment securities: Available-for-sale $489 Median of external sources External pricing sources $61.2 - $71.6 $66.7 189 Other Trading 2,085 Single external source External pricing sources $0.0 - $4,471.7 $147.3 686 Other Mortgage loans held-for-sale 896 Single external source External pricing sources $59.3 - $110.4 $100.3 Mortgage loans held-for-investment 473 Single external source External pricing sources $24.7 - $99.2 $74.7 Guarantee assets 5,014 Discounted cash flows OAS 17 - 233 bps 47 bps 337 Other Insignificant Level 3 assets (2) 168 Total level 3 assets $10,337 Liabilities Insignificant Level 3 liabilities (2) 496 Total level 3 liabilities $496 December 31, 2022 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Assets Investment securities: Available-for-sale $557 Median of external sources External pricing sources $66.3 - $74.6 $70.5 337 Other Trading 2,080 Single external source External pricing sources $0.0 - $5,702.4 $224.8 651 Other Mortgage loans held-for-sale 310 Single external source External pricing sources $39.6 - $98.1 $76.6 Mortgage loans held-for-investment 110 Single external source External pricing sources $76.9 - $87.5 $80.6 Guarantee assets 5,084 Discounted cash flows OAS 17 - 186 bps 45 bps 358 Other Insignificant Level 3 assets (2) 131 Total level 3 assets $9,618 Liabilities Insignificant Level 3 liabilities (2) 485 Total level 3 liabilities $485 (1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments. (2) 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 - Asset Measured at Fair Value on a Non-Recurring Basis | The table below presents assets measured on our consolidated balance sheets at fair value on a non-recurring basis. Table 16.4 - Assets Measured at Fair Value on a Non-Recurring Basis December 31, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Mortgage loans (1) $— $640 $1,578 $2,218 $— $386 $1,758 $2,144 (1) Includes loans that are classified as held-for-investment and have an allowance for credit losses 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 table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets measured on our consolidated balance sheets at fair value on a non-recurring basis. Table 16.5 - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements December 31, 2023 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Mortgage loans $1,394 Median of external sources External pricing sources $72.9 - $98.8 $82.4 184 Other Total $1,578 December 31, 2022 Level 3 Fair Value Predominant Valuation Technique(s) Unobservable Inputs ( Dollars in millions , except for certain unobservable inputs as shown) Type Range Weighted Average (1) Mortgage loans $1,657 Median of external sources External pricing sources $74.8 - $98.6 $86.3 101 Other Total $1,758 (1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments. |
Table - Fair Value of Financial Instruments | The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, secured lending, 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 16.6 - Fair Value of Financial Instruments December 31, 2023 GAAP Measurement Category (1) Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $6,019 $6,019 $— $— $— $6,019 Securities purchased under agreements to resell Amortized cost 95,148 — 105,393 — (10,245) 95,148 Investments securities: Available-for-sale FV - OCI 4,890 — 4,212 678 — 4,890 Trading FV - NI 38,385 29,854 5,760 2,771 — 38,385 Total investments securities 43,275 29,854 9,972 3,449 — 43,275 Mortgage loans: Mortgage loans held-for-sale 12,941 — 9,276 3,868 — 13,144 Mortgage loans held-for-investment, net of allowance for credit losses 3,083,665 — 2,466,127 254,877 — 2,721,004 Total mortgage loans Various (3) 3,096,606 — 2,475,403 258,745 — 2,734,148 Other assets: Guarantee assets FV - NI 5,351 — — 5,353 — 5,353 Derivative assets, net FV - NI 486 — 6,209 2 (5,725) 486 Other assets (4) Various 2,107 — 946 1,165 — 2,111 Total other assets 7,944 — 7,155 6,520 (5,725) 7,950 Total financial assets $3,248,992 $35,873 $2,597,923 $268,714 ($15,970) $2,886,540 Financial Liabilities Debt: Debt of consolidated trusts $3,041,927 $— $2,673,019 $727 $— $2,673,746 Debt of Freddie Mac 166,419 — 173,877 3,391 (10,245) 167,023 Total debt Various (5) 3,208,346 — 2,846,896 4,118 (10,245) 2,840,769 Other liabilities: Guarantee obligations Amortized cost 5,451 — 103 6,023 — 6,126 Derivative liabilities, net FV - NI 873 — 8,608 63 (7,798) 873 Other liabilities (4) FV - NI 14 — 465 194 — 659 Total other liabilities 6,338 — 9,176 6,280 (7,798) 7,658 Total financial liabilities $3,214,684 $— $2,856,072 $10,398 ($18,043) $2,848,427 Referenced footnotes are included after the prior period table. December 31, 2022 GAAP Measurement Category (1) Carrying Amount Fair Value (In millions) Level 1 Level 2 Level 3 Netting Adjustments (2) Total Financial Assets Cash and cash equivalents Amortized cost $6,360 $6,360 $— $— $— $6,360 Securities purchased under agreements to resell Amortized cost 87,295 — 99,286 — (11,991) 87,295 Investments securities: Available-for-sale FV - OCI 6,534 — 5,640 894 — 6,534 Trading FV - NI 32,167 23,453 5,983 2,731 — 32,167 Total investments securities 38,701 23,453 11,623 3,625 — 38,701 Mortgage loans: Mortgage loans held-for-sale 12,197 — 9,032 3,461 — 12,493 Mortgage loans held-for-investment, net of allowance for credit losses 3,022,318 — 2,348,858 273,044 — 2,621,902 Total mortgage loans Various (3) 3,034,515 — 2,357,890 276,505 — 2,634,395 Other assets: Guarantee assets FV - NI 5,442 — — 5,445 — 5,445 Derivative assets, net FV - NI 307 — 6,397 2 (6,092) 307 Other assets (4) Various 1,739 — 907 835 — 1,742 Total other assets 7,488 — 7,304 6,282 (6,092) 7,494 Total financial assets $3,174,359 $29,813 $2,476,103 $286,412 ($18,083) $2,774,245 Financial Liabilities Debt: Debt of consolidated trusts $2,979,070 $— $2,564,323 $701 $— $2,565,024 Debt of Freddie Mac 166,762 — 175,673 3,162 (11,991) 166,844 Total debt Various (5) 3,145,832 — 2,739,996 3,863 (11,991) 2,731,868 Other liabilities: Guarantee obligations Amortized cost 5,779 — — 6,016 — 6,016 Derivative liabilities, net FV - NI 758 — 10,823 97 (10,162) 758 Other liabilities (4) FV - NI 20 — 1,025 211 — 1,236 Total other liabilities 6,557 — 11,848 6,324 (10,162) 8,010 Total financial liabilities $3,152,389 $— $2,751,844 $10,187 ($22,153) $2,739,878 (1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income. (2) Represents counterparty netting and cash collateral netting. (3) The GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $3.1 trillion, $5.6 billion and $9.2 billion as of December 31, 2023, respectively, and $3.0 trillion, $9.0 billion and $4.4 billion as of December 31, 2022, respectively. (4) For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments. (5) The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $2.5 billion as of December 31, 2023, respectively, and $3.1 trillion and $3.0 billion as of December 31, 2022, respectively. |
Table - Difference between Fair Value and Unpaid Principal Balance for Certain Financial Instruments with Fair Value Option Elected | The table below presents the fair value and UPB related to items for which we have elected the fair value option. Table 16.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected (1) December 31, 2023 December 31, 2022 (In millions) Fair value UPB Difference Fair value UPB Difference Mortgage loans held-for-sale $7,356 $7,080 $276 $3,218 $3,421 ($203) Mortgage loans held-for-investment 1,806 2,095 (289) 1,214 1,368 (154) Debt of Freddie Mac 240 234 6 892 881 11 Debt of consolidated trusts 1,705 1,799 (94) 1,656 1,833 (177) Other assets (other liabilities) 95 N/A N/A 11 N/A N/A The table below presents the changes in fair value related to items for which we have elected the fair value option. These amounts are included in investment gains, net, on our consolidated statements of income. Table 16.8 - Changes in Fair Value under the Fair Value Option Election December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Gains (Losses) Mortgage loans held-for-sale ($59) ($987) ($407) Mortgage loans held-for-investment (29) (154) — Debt of Freddie Mac 30 (30) 50 Debt of consolidated trusts (6) 458 17 Other assets/other liabilities 207 (362) 1,271 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Compliance with Regulatory Capital Requirements - ERCF [Abstract] | |
Table - ERCF Capital Requirements | The table below presents our capital metrics under the ERCF. Table 18.1 - ERCF Available Capital and Capital Requirements (In billions) December 31, 2023 December 31, 2022 Adjusted total assets $3,775 $3,710 Risk-weighted assets (standardized approach) 1,009 899 December 31, 2023 Amounts Ratios (Dollars in billions) Available Minimum Capital Requirement (Including Buffer (1) ) Available Capital (Deficit) Ratio (2) Minimum Capital Requirement Ratio (2) Capital Requirement Ratio (2) (Including Buffer (1) ) Risk-based capital: Total capital ($18) $81 $81 (1.8) % 8.0 % 8.0 % CET1 capital (43) 45 96 (4.3) 4.5 9.5 Tier 1 capital (29) 60 111 (2.9) 6.0 11.0 Adjusted total capital (29) 81 132 (2.9) 8.0 13.0 Leverage capital: Core capital (statutory) ($25) $95 $95 (0.7) % 2.5 % 2.5 % Tier 1 capital (29) 95 106 (0.8) 2.5 2.8 December 31, 2022 Amounts Ratios (Dollars in billions) Available Minimum Capital Requirement (Including Buffer (1) ) Available Capital (Deficit) Ratio (2) Minimum Capital Requirement Ratio (2) Capital Requirement Ratio (2) (Including Buffer (1) ) Risk-based capital: Total capital ($27) $72 $72 (3.1) % 8.0 % 8.0 % CET1 capital (55) 40 90 (6.2) 4.5 10.1 Tier 1 capital (41) 54 104 (4.6) 6.0 11.6 Adjusted total capital (41) 72 122 (4.6) 8.0 13.6 Leverage capital: Core capital (statutory) ($35) $93 $93 (1.0) % 2.5 % 2.5 % Tier 1 capital (41) 93 104 (1.1) 2.5 2.8 (1) PCCBA for risk-based capital and PLBA for leverage capital. (2) As a percentage of RWA for risk-based capital and ATA for leverage capital. |
Conservatorship and Related M_2
Conservatorship and Related Matters (Details) - USD ($) | 12 Months Ended | 111 Months Ended | ||||||||||
Sep. 08, 2008 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2012 | Dec. 31, 2023 | Mar. 31, 2024 | Jan. 01, 2023 | Jun. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2017 | Dec. 31, 2008 | |
Conservatorship and related matters line items | ||||||||||||
Remaining funding available under Purchase Agreement | $ 140,200,000,000 | $ 140,200,000,000 | ||||||||||
Stock Issued During Period, Shares, New Issues | 0 | 0 | ||||||||||
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | |||||||||||
Common stock warrant, percentage of common stock shares that can be purchased | 79.90% | 79.90% | ||||||||||
Cash Proceeds Received Upon Issuing The Senior Preferred Stock | $ 0 | |||||||||||
Increase in senior preferred stock | $ 3,000,000,000 | |||||||||||
Aggregate liquidation preference on senior preferred stock | $ 117,300,000,000 | $ 117,300,000,000 | ||||||||||
Applicable capital reserve amount if we don't pay the full dividend requirement in a future period | 0 | 0 | ||||||||||
Aggregate dividend payments since conservatorship began | $ 119,700,000,000 | $ 119,700,000,000 | ||||||||||
Percent per annum portion of quarterly senior preferred stock dividend requirement after Capital Reserve End Date when dividend paid in full | 10% | 10% | ||||||||||
Percent per annum portion of quarterly senior preferred stock dividend requirement after Capital Reserve End Date when dividend is not paid in full | 12% | 12% | ||||||||||
Allowance of non-ordinary course asset sales | $ 250,000,000 | $ 250,000,000 | ||||||||||
Mortgage Related Investments Portfolio Limit Under Purchase Agreement | 225,000,000,000 | $ 225,000,000,000 | 225,000,000,000 | |||||||||
UPB of mortgage-related investments portfolio | 107,200,000,000 | 107,200,000,000 | ||||||||||
Ten percent of notional amount of IO securities | 22,200,000,000 | 22,200,000,000 | ||||||||||
Agency MBS Maximum | $ 20,000,000,000 | |||||||||||
Debt cap under Purchase Agreement. | $ 270,000,000,000 | |||||||||||
Debt cap aggregate indebtedness | 174,000,000,000 | 174,000,000,000 | ||||||||||
Cash window volume purchase limit per lender | $ 1,500,000,000 | |||||||||||
Multifamily Loan Purchases Cap | $ 80,000,000,000 | $ 80,000,000,000 | ||||||||||
Basis points of each dollar of new business purchases required by GSE Act. | 0.042% | 0.042% | ||||||||||
Expense of basis point allocation for new business purchases | $ 100,000,000 | 300,000,000 | $ 500,000,000 | |||||||||
Legislated Basis Point Fee | 2,900,000,000 | 2,800,000,000 | 2,300,000,000 | |||||||||
Amount contributed to equity method investment | 72,000,000 | $ 871,000,000 | ||||||||||
CSS [Member] | ||||||||||||
Conservatorship and related matters line items | ||||||||||||
Equity method investment | (1,000,000) | (2,000,000) | (1,000,000) | |||||||||
Government [Member] | ||||||||||||
Conservatorship and related matters line items | ||||||||||||
Related Party Transaction, Amounts of Transaction | 0 | $ 0 | $ 0 | |||||||||
Subsequent Event | ||||||||||||
Conservatorship and related matters line items | ||||||||||||
Aggregate liquidation preference on senior preferred stock | $ 120,400,000,000 | |||||||||||
Senior Preferred Stock | ||||||||||||
Conservatorship and related matters line items | ||||||||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | |||||||||||
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | |||||||||||
Increase in senior preferred stock | $ 3,000,000,000 | |||||||||||
Aggregate liquidation preference on senior preferred stock | $ 117,309,000,000 | $ 117,309,000,000 | ||||||||||
Senior Preferred Stock, Dividend Rate | 10% |
Securitizations and Variable _3
Securitizations and Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Assets | $ 3,280,976 | $ 3,208,333 |
Guarantees of Fannie Mae securities | ||
Variable Interest Entity [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 110,320 | 119,267 |
WI K- deal Certificate | Multifamily | ||
Variable Interest Entity [Line Items] | ||
UPB of Issuances and Guarantees | 4,900 | 14,700 |
Other | Single-family Guarantee | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 4,500 | 5,000 |
Level 1 Securitization products | Single-family Guarantee | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 3,000,000 | 2,900,000 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 456,672 | 464,696 |
Assets | 532,148 | 543,456 |
Variable Interest Entity, Not Primary Beneficiary | Single-family Guarantee | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 134,934 | 145,144 |
Assets | 169,744 | 181,430 |
Variable Interest Entity, Not Primary Beneficiary | Multifamily | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 321,270 | 319,117 |
Assets | 362,287 | 361,841 |
Variable Interest Entity, Not Primary Beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 468 | 435 |
Assets | 117 | 185 |
Variable Interest Entity, Not Primary Beneficiary | CRT products | Single-family Guarantee | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 14 | 105 |
Assets | 29,126 | 30,549 |
Variable Interest Entity, Not Primary Beneficiary | CRT products | Multifamily | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 8 | 0 |
Assets | 1,359 | 972 |
Held by consolidated trusts | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,063,556 | 2,995,004 |
Held by consolidated trusts | MF 55-Day PCs | Multifamily | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 44,100 | 29,300 |
Held by consolidated trusts | WI K- deal Certificate | Multifamily | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | 500 | 800 |
Other Securitization Trust | Other | Multifamily | ||
Variable Interest Entity [Line Items] | ||
Consolidated UPB of VIE | $ 3,200 | $ 1,100 |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Non-Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets [Abstract] | ||
Investments in securities, at fair value | $ 43,275 | $ 38,701 |
Other Assets | 25,927 | 27,156 |
Assets | 3,280,976 | 3,208,333 |
Fannie Mae Collateral Included In Freddie Mac Commingled Security | 100 | 100 |
Assets in VIE in which we do not have a variable interest in | 300 | 400 |
Liabilities [Abstract] | ||
Other liabilities | 16,096 | 18,174 |
Variable Interest Entity, Not Primary Beneficiary | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 12,209 | 13,865 |
Other Assets | 5,431 | 5,374 |
Assets | 532,148 | 543,456 |
Maximum Exposure to Loss | 456,672 | 464,696 |
Liabilities [Abstract] | ||
Other liabilities | 5,937 | 6,074 |
Variable Interest Entity, Not Primary Beneficiary | Other | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 0 | 0 |
Other Assets | 7 | 8 |
Assets | 117 | 185 |
Maximum Exposure to Loss | 468 | 435 |
Liabilities [Abstract] | ||
Other liabilities | 5 | 5 |
Variable Interest Entity, Not Primary Beneficiary | Single Family Guarantee Segment | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 6,224 | 6,057 |
Other Assets | 331 | 433 |
Assets | 169,744 | 181,430 |
Maximum Exposure to Loss | 134,934 | 145,144 |
Liabilities [Abstract] | ||
Other liabilities | 1,273 | 1,147 |
Variable Interest Entity, Not Primary Beneficiary | Single Family Guarantee Segment | Securitization products | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 1,272 | 965 |
Other Assets | 172 | 175 |
Assets | 30,298 | 31,614 |
Maximum Exposure to Loss | 24,600 | 25,772 |
Liabilities [Abstract] | ||
Other liabilities | 427 | 436 |
Variable Interest Entity, Not Primary Beneficiary | Single Family Guarantee Segment | Guarantees of Fannie Mae securities | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 4,952 | 5,092 |
Other Assets | 67 | 61 |
Assets | 110,320 | 119,267 |
Maximum Exposure to Loss | 110,320 | 119,267 |
Liabilities [Abstract] | ||
Other liabilities | 626 | 659 |
Variable Interest Entity, Not Primary Beneficiary | Single Family Guarantee Segment | CRT products | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 0 | 0 |
Other Assets | 92 | 197 |
Assets | 29,126 | 30,549 |
Maximum Exposure to Loss | 14 | 105 |
Liabilities [Abstract] | ||
Other liabilities | 220 | 52 |
Variable Interest Entity, Not Primary Beneficiary | Multifamily Segment | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 5,985 | 7,808 |
Other Assets | 5,093 | 4,933 |
Assets | 362,287 | 361,841 |
Maximum Exposure to Loss | 321,270 | 319,117 |
Liabilities [Abstract] | ||
Other liabilities | 4,659 | 4,922 |
Variable Interest Entity, Not Primary Beneficiary | Multifamily Segment | Securitization products | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 5,985 | 7,808 |
Other Assets | 5,082 | 4,931 |
Assets | 360,928 | 360,869 |
Maximum Exposure to Loss | 321,262 | 319,117 |
Liabilities [Abstract] | ||
Other liabilities | 4,652 | 4,920 |
Variable Interest Entity, Not Primary Beneficiary | Multifamily Segment | CRT products | ||
Assets [Abstract] | ||
Investments in securities, at fair value | 0 | 0 |
Other Assets | 11 | 2 |
Assets | 1,359 | 972 |
Maximum Exposure to Loss | 8 | 0 |
Liabilities [Abstract] | ||
Other liabilities | $ 7 | $ 2 |
Mortgage Loans (Details)
Mortgage Loans (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||
UPB removed from Consolidated Trust | $ 5.7 | $ 11.4 | |
Amortized cost basis of SF HFI loans in trial period modification plans | 1.7 | 1.3 | |
Noncash acquisition, mortgage loans held-for-investment acquired in exchange for issuance of debt securities of consolidated trusts | 215 | 396.7 | $ 705.4 |
Transfers from advances to lenders to loans HFI | $ 96.3 | $ 174.6 | $ 263.9 |
Mortgage Loans - Mortgage Loans
Mortgage Loans - Mortgage Loans (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | $ 13,432 | $ 13,108 |
Cost basis and fair value adjustments, net HFS | (491) | (911) |
Total held-for-sale loans, net | 12,941 | 12,197 |
UPB of mortgage loans - HFI | 3,055,712 | 2,989,884 |
Cost basis adjustment HFI | 34,336 | 39,825 |
Allowance for loan losses | (6,383) | (7,391) |
Total held-for-investment mortgage loans, net | 3,083,665 | 3,022,318 |
Total mortgage loans, net | 3,096,606 | 3,034,515 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Cumulative Increase (Decrease) | (200) | |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Single-family | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 3,527 | 3,564 |
Cost basis and fair value adjustments, net HFS | (712) | (696) |
Total held-for-sale loans, net | 2,815 | 2,868 |
UPB of mortgage loans - HFI | 2,996,509 | 2,941,505 |
Cost basis adjustment HFI | 34,627 | 39,896 |
Allowance for loan losses | (6,057) | (7,314) |
Total held-for-investment mortgage loans, net | 3,025,079 | 2,974,087 |
Total mortgage loans, net | 3,027,894 | 2,976,955 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
UPB of mortgage loans - HFS | 9,905 | 9,544 |
Cost basis and fair value adjustments, net HFS | 221 | (215) |
Total held-for-sale loans, net | 10,126 | 9,329 |
UPB of mortgage loans - HFI | 59,203 | 48,379 |
Cost basis adjustment HFI | (291) | (71) |
Allowance for loan losses | (326) | (77) |
Total held-for-investment mortgage loans, net | 58,586 | 48,231 |
Total mortgage loans, net | $ 68,712 | $ 57,560 |
Mortgage Loans - Loans Purchase
Mortgage Loans - Loans Purchased and Sold (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Single-family | Held-for-Investment | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Purchase | $ 299,886 | $ 540,472 | $ 1,215,276 |
Single-family | Held-for-Sale | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Sale of held-for-sale loans | 1,253 | 2,211 | 5,514 |
Multifamily | Held-for-Investment | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Purchase | 16,814 | 25,052 | 9,363 |
Multifamily | Held-for-Sale | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Purchase | 29,415 | 44,997 | 59,093 |
Sale of held-for-sale loans | $ 34,034 | $ 50,280 | $ 70,355 |
Mortgage Loans - Loan Reclassif
Mortgage Loans - Loan Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Held-for-Investment | Single-family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
UPB reclassified for-investment to held-for-sale | $ 1,968 | $ 1,231 |
Valuation allowance (established) or reversed | 0 | 0 |
Allowance for credit losses reversed or (established) | 37 | 30 |
Held-for-Investment | Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
UPB reclassified for-investment to held-for-sale | 6,760 | 1,394 |
Valuation allowance (established) or reversed | (58) | (4) |
Allowance for credit losses reversed or (established) | 4 | 2 |
Held-for-Sale | Single-family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Valuation allowance (established) or reversed | 20 | 16 |
UPB reclassified from held-for-sale to held-for-investment | 191 | 249 |
Allowance for credit losses reversed or (established) | 16 | 15 |
Held-for-Sale | Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Valuation allowance (established) or reversed | 19 | 0 |
UPB reclassified from held-for-sale to held-for-investment | 861 | 39 |
Allowance for credit losses reversed or (established) | $ (1) | $ 0 |
Mortgage Loans - Amortized Cost
Mortgage Loans - Amortized Cost Basis of Held-for-Investment Loans on Nonaccrual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | $ 271 | $ 185 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 13,522 | 10,137 | $ 18,650 |
Single Family | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | 268 | 183 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 13,458 | 10,095 | 18,650 |
20- and 30-year or more, amortizing fixed-rate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | 256 | 172 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 12,682 | 9,307 | 17,013 |
15-year or less, amortizing fixed-rate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | 7 | 5 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 519 | 427 | 844 |
Adjustable-rate and other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | 5 | 6 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 257 | 361 | 793 |
Multifamily | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Interest Income Recognized | 3 | 2 | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | $ 64 | $ 42 | $ 0 |
Mortgage Loans - Accrued Intere
Mortgage Loans - Accrued Interest Receivable and Related Charge-Offs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accrued Interest Receivable, Net | $ 9,925 | $ 8,529 |
Single Family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accrued Interest Receivable, Net | 8,833 | 7,967 |
Financing Receivable, Accrued Interest, Writeoff | (232) | (236) |
Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accrued Interest Receivable, Net | 287 | 220 |
Financing Receivable, Accrued Interest, Writeoff | $ (2) | $ 0 |
Mortgage Loans - Amortized Co_2
Mortgage Loans - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratios and Vintage (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 3,088,464 | $ 3,028,495 |
20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 252,879 | 393,152 |
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 391,687 | 917,605 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 12 | |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 861,548 | 684,290 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 37 | |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 638,903 | 116,810 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 43 | |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 106,984 | 47,018 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 45 | |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 419,386 | 418,963 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year, Writeoff | 243 | |
Financing Receivable, before Allowance for Credit Loss | 2,671,387 | 2,577,838 |
Total current-period year-to-date gross write-offs | 380 | |
15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 9,016 | 31,968 |
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 29,103 | 141,759 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 1 | |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 126,226 | 112,195 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 2 | |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 98,616 | 14,738 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 1 | |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,507 | 5,594 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 56,499 | 68,259 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year, Writeoff | 2 | |
Financing Receivable, before Allowance for Credit Loss | 331,967 | 374,513 |
Total current-period year-to-date gross write-offs | 6 | |
Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 2,515 | 5,566 |
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 5,633 | 4,932 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 4,480 | 1,743 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,557 | 711 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 611 | 457 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 13,207 | 15,641 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year, Writeoff | 1 | |
Financing Receivable, before Allowance for Credit Loss | 28,003 | 29,050 |
Total current-period year-to-date gross write-offs | 1 | |
Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 264,410 | 430,686 |
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 426,423 | 1,064,296 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 13 | |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 992,254 | 798,228 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 39 | |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 739,076 | 132,259 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 44 | |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 120,102 | 53,069 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 45 | |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 489,092 | 502,863 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year, Writeoff | 246 | |
Financing Receivable, before Allowance for Credit Loss | 3,031,357 | 2,981,401 |
Total current-period year-to-date gross write-offs | 387 | |
Debt-to-Value Ratio, Less than 60 Perent | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 39,500 | 66,153 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 93,279 | 394,498 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 513,267 | 489,315 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 542,449 | 87,188 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 94,348 | 38,955 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 411,663 | 407,819 |
Financing Receivable, before Allowance for Credit Loss | 1,694,506 | 1,483,928 |
Debt-to-Value Ratio, Less than 60 Perent | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 4,221 | 16,752 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 20,246 | 119,379 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 121,709 | 109,685 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 98,338 | 14,606 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,488 | 5,578 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 56,493 | 68,240 |
Financing Receivable, before Allowance for Credit Loss | 313,495 | 334,240 |
Debt-to-Value Ratio, Less than 60 Perent | Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 356 | 1,255 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,650 | 2,779 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 3,325 | 1,524 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,465 | 634 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 586 | 428 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 12,950 | 15,139 |
Financing Receivable, before Allowance for Credit Loss | 20,332 | 21,759 |
Debt-to-Value Ratio, Less than 60 Perent | Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 44,077 | 84,160 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 115,175 | 516,656 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 638,301 | 600,524 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 642,252 | 102,428 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 107,422 | 44,961 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 481,106 | 491,198 |
Financing Receivable, before Allowance for Credit Loss | 2,028,333 | 1,839,927 |
Debt-to-Value Ratio, 60 to 80 percent | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 105,384 | 158,421 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 183,251 | 424,141 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 318,965 | 190,167 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 95,102 | 28,991 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,402 | 7,870 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 7,296 | 10,426 |
Financing Receivable, before Allowance for Credit Loss | 722,400 | 820,016 |
Debt-to-Value Ratio, 60 to 80 percent | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 3,973 | 13,042 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 8,314 | 22,007 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 4,491 | 2,503 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 278 | 132 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 19 | 16 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 5 | 16 |
Financing Receivable, before Allowance for Credit Loss | 17,080 | 37,716 |
Debt-to-Value Ratio, 60 to 80 percent | Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 1,153 | 2,322 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,651 | 1,956 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 1,105 | 214 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 89 | 76 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 25 | 28 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 227 | 445 |
Financing Receivable, before Allowance for Credit Loss | 5,250 | 5,041 |
Debt-to-Value Ratio, 60 to 80 percent | Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 110,510 | 173,785 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 194,216 | 448,104 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 324,561 | 192,884 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 95,469 | 29,199 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,446 | 7,914 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 7,528 | 10,887 |
Financing Receivable, before Allowance for Credit Loss | 744,730 | 862,773 |
Debt To Value Ratio, 80 To 90 Percent | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 55,973 | 79,901 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 90,785 | 90,006 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 27,750 | 4,405 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,272 | 569 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 213 | 164 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 262 | 419 |
Financing Receivable, before Allowance for Credit Loss | 176,255 | 175,464 |
Debt To Value Ratio, 80 To 90 Percent | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 623 | 1,601 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 509 | 368 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 25 | 7 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 1 |
Financing Receivable, before Allowance for Credit Loss | 1,157 | 1,977 |
Debt To Value Ratio, 80 To 90 Percent | Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 689 | 1,127 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,040 | 186 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 48 | 5 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 3 | 1 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 1 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 18 | 34 |
Financing Receivable, before Allowance for Credit Loss | 1,798 | 1,354 |
Debt To Value Ratio, 80 To 90 Percent | Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 57,285 | 82,629 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 92,334 | 90,560 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 27,823 | 4,417 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,275 | 570 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 213 | 165 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 280 | 454 |
Financing Receivable, before Allowance for Credit Loss | 179,210 | 178,795 |
Debt To Value Ratio, 90 To 100 Percent | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 51,994 | 86,109 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 23,460 | 8,911 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 1,542 | 397 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 71 | 56 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 16 | 24 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 77 | 143 |
Financing Receivable, before Allowance for Credit Loss | 77,160 | 95,640 |
Debt To Value Ratio, 90 To 100 Percent | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 198 | 570 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 33 | 5 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 1 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 1 |
Financing Receivable, before Allowance for Credit Loss | 232 | 576 |
Debt To Value Ratio, 90 To 100 Percent | Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 317 | 836 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 276 | 11 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 2 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 8 | 14 |
Financing Receivable, before Allowance for Credit Loss | 603 | 861 |
Debt To Value Ratio, 90 To 100 Percent | Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 52,509 | 87,515 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 23,769 | 8,927 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 1,545 | 397 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 71 | 56 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 16 | 24 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 85 | 158 |
Financing Receivable, before Allowance for Credit Loss | 77,995 | 97,077 |
Greater Than 100 Estimated Current LTV Ratio | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 28 | 2,568 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 912 | 49 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 24 | 6 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 9 | 6 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 5 | 5 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 88 | 156 |
Financing Receivable, before Allowance for Credit Loss | 1,066 | 2,790 |
Greater Than 100 Estimated Current LTV Ratio | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 1 | 3 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1 | 1 |
Financing Receivable, before Allowance for Credit Loss | 3 | 4 |
Greater Than 100 Estimated Current LTV Ratio | Adjustable-rate and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 26 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 16 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 4 | 9 |
Financing Receivable, before Allowance for Credit Loss | 20 | 35 |
Greater Than 100 Estimated Current LTV Ratio | Single Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 29 | 2,597 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 929 | 49 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 24 | 6 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 9 | 6 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 5 | 5 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 93 | 166 |
Financing Receivable, before Allowance for Credit Loss | $ 1,089 | $ 2,829 |
Mortgage Loans -Amortized Cost
Mortgage Loans -Amortized Cost Basis of Multifamily Held- for-Investment Loans by Credit Quality Indicator by Vintage (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 3,088,464 | $ 3,028,495 |
Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 13,824 | 21,854 |
One year before current fiscal year | 17,963 | 7,678 |
Two years before current fiscal year | 7,646 | 6,614 |
Three years before current fiscal year | 6,647 | 5,043 |
Four years before current fiscal year | 4,937 | 1,091 |
Five or more years before current fiscal year | 3,824 | 2,890 |
Revolving Loans | 2,266 | 1,924 |
Total | 57,107 | 47,094 |
Pass | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 13,804 | 21,854 |
One year before current fiscal year | 17,845 | 7,638 |
Two years before current fiscal year | 7,430 | 6,546 |
Three years before current fiscal year | 6,345 | 4,784 |
Four years before current fiscal year | 4,420 | 1,077 |
Five or more years before current fiscal year | 3,254 | 2,646 |
Revolving Loans | 2,266 | 1,924 |
Total | 55,364 | 46,469 |
Special mention | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 20 | 0 |
One year before current fiscal year | 85 | 39 |
Two years before current fiscal year | 28 | 65 |
Three years before current fiscal year | 43 | 232 |
Four years before current fiscal year | 294 | 7 |
Five or more years before current fiscal year | 106 | 113 |
Revolving Loans | 0 | 0 |
Total | 576 | 456 |
Substandard | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One year before current fiscal year | 33 | 1 |
Two years before current fiscal year | 188 | 3 |
Three years before current fiscal year | 259 | 27 |
Four years before current fiscal year | 223 | 7 |
Five or more years before current fiscal year | 464 | 131 |
Revolving Loans | 0 | 0 |
Total | 1,167 | 169 |
Doubtful | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Five or more years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 0 | $ 0 |
Mortgage Loans - Amortized Co_3
Mortgage Loans - Amortized Cost Basis of Held-for-Investment Loans by Payment Status (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 3,088,464 | $ 3,028,495 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 3,653 |
Non-Accrual with no allowance | 482 | 640 |
Mortgage Loans in Process of Foreclosure, Amount | 2,000 | 1,600 |
20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,671,387 | 2,577,838 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 3,432 |
Non-Accrual with no allowance | 406 | 522 |
15-year or less, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 331,967 | 374,513 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 191 |
Non-Accrual with no allowance | 4 | 9 |
Adjustable-rate and other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 28,003 | 29,050 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 30 |
Non-Accrual with no allowance | 49 | 67 |
Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,031,357 | 2,981,401 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 3,653 |
Non-Accrual with no allowance | 459 | 598 |
Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 57,107 | 47,094 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Non-Accrual with no allowance | 23 | 42 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,041,712 | 2,988,423 |
Financial Asset, Not Past Due | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,627,763 | 2,541,057 |
Financial Asset, Not Past Due | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 329,601 | 372,065 |
Financial Asset, Not Past Due | Adjustable-rate and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 27,317 | 28,262 |
Financial Asset, Not Past Due | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,984,681 | 2,941,384 |
Financial Asset, Not Past Due | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 57,031 | 47,039 |
One month past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 27,471 | 21,748 |
One month past due | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,528 | 19,820 |
One month past due | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,589 | 1,590 |
One month past due | Adjustable-rate and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 342 | 325 |
One month past due | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 27,459 | 21,735 |
One month past due | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 13 |
Two months past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,152 | 4,941 |
Two months past due | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,787 | 4,603 |
Two months past due | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 270 | 250 |
Two months past due | Adjustable-rate and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 95 | 88 |
Two months past due | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,152 | 4,941 |
Two months past due | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Three months or more past due or in foreclosure | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,129 | 13,383 |
Three months or more past due or in foreclosure | 20- and 30-year or more, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12,309 | 12,358 |
Three months or more past due or in foreclosure | 15-year or less, amortizing fixed-rate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 507 | 608 |
Three months or more past due or in foreclosure | Adjustable-rate and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 249 | 375 |
Three months or more past due or in foreclosure | Single-family | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,065 | 13,341 |
Three months or more past due or in foreclosure | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 64 | $ 42 |
Mortgage Loans - Single-Family
Mortgage Loans - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 21,954 | $ 33,340 |
Percentage of class of financing receivable | 0.70% | 1.10% |
Amortized cost basis of loans in payment deferral plans | $ 8,300 | $ 12,500 |
20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 20,953 | $ 31,477 |
Percentage of class of financing receivable | 0.80% | 1.20% |
15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 798 | $ 1,335 |
Percentage of class of financing receivable | 0.20% | 0.40% |
Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 203 | $ 528 |
Percentage of class of financing receivable | 0.70% | 1.80% |
payment delay [Member] | Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 17,751 | $ 23,672 |
payment delay [Member] | 20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 16,774 | 21,968 |
payment delay [Member] | 15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 798 | 1,318 |
payment delay [Member] | Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 179 | 386 |
payment delay and term extension [Member] | Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 4,070 | 2,864 |
payment delay and term extension [Member] | 20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 4,051 | 2,810 |
payment delay and term extension [Member] | 15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 0 | 16 |
payment delay and term extension [Member] | Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 19 | 38 |
payment delay, interest rate reduction, and term extension [Member] | Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 133 | 6,804 |
payment delay, interest rate reduction, and term extension [Member] | 20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 128 | 6,699 |
payment delay, interest rate reduction, and term extension [Member] | 15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 0 | 1 |
payment delay, interest rate reduction, and term extension [Member] | Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 5 | $ 104 |
Mortgage Loans - Financial Effe
Mortgage Loans - Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Weighted average interest rate reduction | 1% | 1.40% |
Weighted average term extension | 175 months | 187 months |
Weighted average payment deferral or principal forbearance | $ 16 | $ 21 |
15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Weighted average interest rate reduction | 0% | 0.60% |
Weighted average term extension | 0 months | 356 months |
Weighted average payment deferral or principal forbearance | $ 15 | $ 23 |
Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Weighted average interest rate reduction | 1.60% | 2.30% |
Weighted average term extension | 202 months | 223 months |
Weighted average payment deferral or principal forbearance | $ 17 | $ 26 |
Mortgage Loans - Subsequent Def
Mortgage Loans - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | $ 3,834 | $ 2,514 |
Single Family | payment delay [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 2,615 | 1,880 |
Single Family | payment delay and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 911 | 220 |
Single Family | payment delay, interest rate reduction, and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 308 | 414 |
20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 3,695 | 2,369 |
20- and 30-year or more, amortizing fixed-rate | payment delay [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 2,488 | 1,746 |
20- and 30-year or more, amortizing fixed-rate | payment delay and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 905 | 215 |
20- and 30-year or more, amortizing fixed-rate | payment delay, interest rate reduction, and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 302 | 408 |
15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 97 | 95 |
15-year or less, amortizing fixed-rate | payment delay [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 97 | 95 |
15-year or less, amortizing fixed-rate | payment delay and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 0 | 0 |
15-year or less, amortizing fixed-rate | payment delay, interest rate reduction, and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 0 | 0 |
Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 42 | 50 |
Adjustable-rate and other | payment delay [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 30 | 39 |
Adjustable-rate and other | payment delay and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | 6 | 5 |
Adjustable-rate and other | payment delay, interest rate reduction, and term extension [Member] | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, restructured loans that defaulted, amortized cost basis | $ 6 | $ 6 |
Mortgage Loans - Payment Status
Mortgage Loans - Payment Status of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Single Family | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 21,954 | $ 33,340 |
Single Family | Financial Asset, Not Past Due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 11,533 | 20,875 |
Single Family | One month past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 2,730 | 2,978 |
Single Family | Two months past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 1,599 | 2,090 |
Single Family | Three months or more past due or in foreclosure | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 6,092 | 7,397 |
20- and 30-year or more, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 20,953 | 31,477 |
20- and 30-year or more, amortizing fixed-rate | Financial Asset, Not Past Due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 11,000 | 19,766 |
20- and 30-year or more, amortizing fixed-rate | One month past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 2,619 | 2,819 |
20- and 30-year or more, amortizing fixed-rate | Two months past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 1,525 | 1,973 |
20- and 30-year or more, amortizing fixed-rate | Three months or more past due or in foreclosure | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 5,809 | 6,919 |
15-year or less, amortizing fixed-rate | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 797 | 1,335 |
15-year or less, amortizing fixed-rate | Financial Asset, Not Past Due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 432 | 781 |
15-year or less, amortizing fixed-rate | One month past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 88 | 124 |
15-year or less, amortizing fixed-rate | Two months past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 57 | 91 |
15-year or less, amortizing fixed-rate | Three months or more past due or in foreclosure | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 220 | 339 |
Adjustable-rate and other | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 204 | 528 |
Adjustable-rate and other | Financial Asset, Not Past Due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 101 | 328 |
Adjustable-rate and other | One month past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 23 | 35 |
Adjustable-rate and other | Two months past due | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | 17 | 26 |
Adjustable-rate and other | Three months or more past due or in foreclosure | ||
financing receivable, loan restructuring [Line Items] | ||
Financing receivable, loan restructuring, amortized cost basis | $ 63 | $ 139 |
Mortgage Loans - SF TDR Modific
Mortgage Loans - SF TDR Modification Metrics (Details) - Single Family | 12 Months Ended |
Dec. 31, 2021 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest rate reductions and related term extensions | 13% |
Principal forbearance and related interest rate reductions and term extensions | 33% |
Average coupon interest rate reduction | 0.40% |
Average months of term extension | 155 months |
Mortgage Loans - TDR Activity (
Mortgage Loans - TDR Activity (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) loan | |
20- and 30-year or more, amortizing fixed-rate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 13,448 |
Post TDR Amortized Cost Basis | $ 2,368 |
15-year or less, amortizing fixed-rate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 1,620 |
Post TDR Amortized Cost Basis | $ 167 |
Adjustable-rate and other | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 680 |
Post TDR Amortized Cost Basis | $ 96 |
Single-family | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 15,748 |
Post TDR Amortized Cost Basis | $ 2,631 |
Pre-TDR Amortized Cost Basis | $ 2,600 |
Multifamily | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 0 |
Post TDR Amortized Cost Basis | $ 0 |
Mortgage Loans - Payment Defaul
Mortgage Loans - Payment Defaults of Completed TDR Modifications (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) loan | |
20- and 30-year or more, amortizing fixed-rate | |
Financing Receivable, Modifications and Other Loss Mitigation Activities | |
Number of Loans, TDR, Subsequent Default | loan | 3,044 |
Post-TDR Amortized Cost Basis, Subsequent Default | $ | $ 535 |
15-year or less, amortizing fixed-rate | |
Financing Receivable, Modifications and Other Loss Mitigation Activities | |
Number of Loans, TDR, Subsequent Default | loan | 121 |
Post-TDR Amortized Cost Basis, Subsequent Default | $ | $ 13 |
Adjustable-rate and other | |
Financing Receivable, Modifications and Other Loss Mitigation Activities | |
Number of Loans, TDR, Subsequent Default | loan | 367 |
Post-TDR Amortized Cost Basis, Subsequent Default | $ | $ 58 |
Single-family | |
Financing Receivable, Modifications and Other Loss Mitigation Activities | |
Number of Loans, TDR, Subsequent Default | loan | 3,532 |
Post-TDR Amortized Cost Basis, Subsequent Default | $ | $ 606 |
Multifamily | |
Financing Receivable, Modifications and Other Loss Mitigation Activities | |
Number of Loans, TDR, Subsequent Default | loan | 0 |
Post-TDR Amortized Cost Basis, Subsequent Default | $ | $ 0 |
Guarantees and Other Off-Bala_3
Guarantees and Other Off-Balance Sheet Credit Exposures - Financial Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CRT Related Derivatives | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 2,100 | $ 2,100 |
Assets in VIE in which we do not have a variable interest in | 300 | 400 |
Fannie Mae Collateral Included In Freddie Mac Commingled Security | 100 | 100 |
Guarantees of Fannie Mae securities | ||
Guarantor Obligations [Line Items] | ||
UPB | 110,320 | 119,267 |
Maximum Exposure | 110,320 | 119,267 |
Recognized Liability | $ 0 | $ 0 |
Maximum Remaining Term | 38 years | 39 years |
Other Guarantees | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 117 | $ 185 |
Maximum Exposure | 468 | 435 |
Recognized Liability | $ 0 | $ 0 |
Maximum Remaining Term | 30 years | 29 years |
Single-family | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 38,981 | $ 41,080 |
Maximum Exposure | 33,292 | 35,248 |
Recognized Liability | 543 | 594 |
Single-family | Securitization products | ||
Guarantor Obligations [Line Items] | ||
UPB | 30,289 | 31,604 |
Maximum Exposure | 24,600 | 25,772 |
Recognized Liability | $ 382 | $ 391 |
Maximum Remaining Term | 40 years | 40 years |
Single-family | Other mortgage-related guarantees | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 8,692 | $ 9,476 |
Maximum Exposure | 8,692 | 9,476 |
Recognized Liability | $ 161 | $ 203 |
Maximum Remaining Term | 28 years | 29 years |
Multifamily | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 371,689 | $ 371,379 |
Maximum Exposure | 332,023 | 329,627 |
Recognized Liability | 4,960 | 5,268 |
Multifamily | Securitization products | ||
Guarantor Obligations [Line Items] | ||
UPB | 360,928 | 360,869 |
Maximum Exposure | 321,262 | 319,117 |
Recognized Liability | $ 4,577 | $ 4,889 |
Maximum Remaining Term | 36 years | 37 years |
Multifamily | Other mortgage-related guarantees | ||
Guarantor Obligations [Line Items] | ||
UPB | $ 10,761 | $ 10,510 |
Maximum Exposure | 10,761 | 10,510 |
Recognized Liability | $ 383 | $ 379 |
Maximum Remaining Term | 35 years | 36 years |
Guarantees and Other Off-Bala_4
Guarantees and Other Off-Balance Sheet Credit Exposures - UPB of Unconsolidated Loans by Payment Status (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Guarantor Obligations [Line Items] | ||
Current | $ 404,309 | $ 407,152 |
One Month Past Due | 3,022 | 2,095 |
Two Months Past Due | 925 | 760 |
Three Months or More Past Due, or in Foreclosure | 2,414 | 2,452 |
Total | 410,670 | 412,459 |
Single Family | ||
Guarantor Obligations [Line Items] | ||
Current | 34,524 | 36,241 |
One Month Past Due | 2,172 | 2,072 |
Two Months Past Due | 827 | 748 |
Three Months or More Past Due, or in Foreclosure | 1,458 | 2,019 |
Total | 38,981 | 41,080 |
Multifamily | ||
Guarantor Obligations [Line Items] | ||
Current | 369,785 | 370,911 |
One Month Past Due | 850 | 23 |
Two Months Past Due | 98 | 12 |
Three Months or More Past Due, or in Foreclosure | 956 | 433 |
Total | $ 371,689 | $ 371,379 |
Guarantees and Other Off-Bala_5
Guarantees and Other Off-Balance Sheet Credit Exposures - Other Off-Balance Sheet Credit Exposure (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Guarantor Obligations [Line Items] | ||
Unsettled securities purchased under agreements to resell, net | $ 22,276 | $ 15,890 |
UPB Of Off-Balance Sheet Credit Exposure | 37,355 | 31,902 |
Commitments with FVO election | 1,900 | 500 |
Unsettled SSUAR | 4,000 | 5,600 |
Multifamily | ||
Guarantor Obligations [Line Items] | ||
Mortgage loan purchase commitments | 10,378 | 9,609 |
Other commitments | $ 4,701 | $ 6,403 |
Allowance for Credit Losses - D
Allowance for Credit Losses - Details of the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Rollforward of Allowance for Credit Losses | |||
Beginning balance | $ 7,893 | $ 5,518 | |
Ending balance | 6,849 | 7,893 | $ 5,518 |
Allowance, Credit Loss | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 7,893 | 5,518 | 6,553 |
Provision (benefit) for credit losses | (872) | 1,841 | (1,041) |
Charge-offs | (643) | (505) | (1,107) |
Recoveries collected | 144 | 148 | 197 |
Other | 327 | 891 | 916 |
Ending balance | 7,893 | 5,518 | |
Held-for-Investment | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 7,391 | 4,947 | |
Ending balance | 6,383 | 7,391 | 4,947 |
Other Allowance for Credit Losses | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 502 | 571 | |
Ending balance | 466 | 502 | 571 |
Single Family | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 7,746 | 5,440 | |
Ending balance | 6,402 | 7,746 | 5,440 |
Single Family | Allowance, Credit Loss | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 7,746 | 5,440 | 6,353 |
Provision (benefit) for credit losses | (1,172) | 1,772 | (919) |
Charge-offs | (643) | (505) | (1,107) |
Recoveries collected | 144 | 148 | 197 |
Other | 327 | 891 | 916 |
Ending balance | 7,746 | 5,440 | |
Single Family | Held-for-Investment | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 7,314 | 4,913 | |
Ending balance | 6,057 | 7,314 | 4,913 |
Single Family | Other Allowance for Credit Losses | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 432 | 527 | |
Ending balance | 345 | 432 | 527 |
Multifamily | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 147 | 78 | |
Ending balance | 447 | 147 | 78 |
Multifamily | Allowance, Credit Loss | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 147 | 78 | 200 |
Provision (benefit) for credit losses | 300 | 69 | (122) |
Charge-offs | 0 | 0 | 0 |
Recoveries collected | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 147 | 78 | |
Multifamily | Held-for-Investment | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 77 | 34 | |
Ending balance | 326 | 77 | 34 |
Multifamily | Other Allowance for Credit Losses | |||
Rollforward of Allowance for Credit Losses | |||
Beginning balance | 70 | 44 | |
Ending balance | $ 121 | $ 70 | $ 44 |
Investment Securities (Details)
Investment Securities (Details) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | $ 1.4 | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Fair Value | $ 2.4 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 171 | ||
Investment Securities Acquired and PC Debt Issued via Non-Cash Transaction | $ 1.7 | $ 9 | $ 34.8 |
Deconsolidation of investments | 4.8 | $ 13.3 | $ 1.1 |
LiabilitiesIncurredButNotYetPaid | 4.3 | ||
Non-mortgage-related securities sold but not settled | $ 4.4 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading securities | $ 38,385 | $ 32,167 |
Available-for-sale securities, at fair value | 4,890 | 6,534 |
Total fair value of investment securities | $ 43,275 | $ 38,701 |
Investments Securities - Tradin
Investments Securities - Trading Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Trading Securities [Line Items] | ||
Total fair value of trading securities | $ 38,385 | $ 32,167 |
Mortgage-related securities | ||
Trading Securities [Line Items] | ||
Total fair value of trading securities | 8,113 | 8,334 |
Non-mortgage-related securities | ||
Trading Securities [Line Items] | ||
Total fair value of trading securities | $ 30,272 | $ 23,833 |
Net Trading Gains (Losses) (Det
Net Trading Gains (Losses) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net Trading Gains and Losses | $ 440 | $ (3,531) | $ (2,394) |
Debt Securities, Trading, Realized Gain (Loss) | 105 | (1,685) | (1,805) |
Debt Securities, Trading, Unrealized Gain | $ 335 | $ (1,846) | $ (589) |
Investments Securities - Availa
Investments Securities - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 4,807 | $ 6,644 |
Gross Unrealized Gains in Other Comprehensive Income | 201 | 194 |
Gross Unrealized Losses in Other Comprehensive Income | (118) | (304) |
Available-for-sale securities, at fair value | 4,890 | 6,534 |
Accrued Interest Receivable | 13 | 15 |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 4,467 | 6,215 |
Gross Unrealized Gains in Other Comprehensive Income | 13 | 6 |
Gross Unrealized Losses in Other Comprehensive Income | (110) | (301) |
Available-for-sale securities, at fair value | 4,370 | 5,920 |
Accrued Interest Receivable | 10 | 12 |
Other mortgage-related securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 340 | 429 |
Gross Unrealized Gains in Other Comprehensive Income | 188 | 188 |
Gross Unrealized Losses in Other Comprehensive Income | (8) | (3) |
Available-for-sale securities, at fair value | 520 | 614 |
Accrued Interest Receivable | $ 3 | $ 3 |
Investment Securities - Availab
Investment Securities - Available-For-Sale Securities in a Gross Unrealized Loss Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 Months Fair Value | $ 397 | $ 5,132 |
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | (256) |
12 Months or Greater Fair Value | 3,029 | 330 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (113) | (48) |
Agency | ||
Available-for-Sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 Months Fair Value | 374 | 5,086 |
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | (253) |
12 Months or Greater Fair Value | 3,006 | 325 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (108) | (48) |
Other mortgage-related securities [Member] | ||
Available-for-Sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 Months Fair Value | 23 | 46 |
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4) | (3) |
12 Months or Greater Fair Value | 23 | 5 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (5) | $ 0 |
Investments Securities - Gross
Investments Securities - Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total Proceeds | $ 3,164 | $ 1,371 | $ 22,907 |
Gross realized gains | 9 | 34 | 540 |
Gross realized losses | (183) | (10) | (60) |
Net realized gains (losses) | $ (174) | $ 24 | $ 480 |
Debt - Total Debt (Details)
Debt - Total Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Net [Abstract] | ||
Long-term debt | $ 3,202,370 | |
Total Debt | 3,208,346 | $ 3,145,832 |
Held by consolidated trusts | ||
Debt Net [Abstract] | ||
Total Debt | 3,041,927 | 2,979,070 |
Held by Freddie Mac | ||
Debt Net [Abstract] | ||
Short-term debt | 5,976 | 7,712 |
Long-term debt | 160,443 | 159,050 |
Total Debt | $ 166,419 | $ 166,762 |
Debt - Debt Securities of Conso
Debt - Debt Securities of Consolidated Trusts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 3,208,346 | $ 3,145,832 |
Debt instruments recorded at fair value | 2,476 | 3,047 |
Held by consolidated trusts | ||
Debt Instrument [Line Items] | ||
UPB | 2,999,893 | 2,929,567 |
Carrying Amount | 3,041,927 | 2,979,070 |
Debt instruments recorded at fair value | $ 2,100 | $ 1,900 |
Effective rate for debt securities of consolidated trusts held by third parties | 2.73% | 2.39% |
Held by consolidated trusts | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 2,952,593 | $ 2,898,640 |
Carrying Amount | 2,995,590 | 2,948,629 |
Held by consolidated trusts | Multifamily | ||
Debt Instrument [Line Items] | ||
UPB | 47,300 | 30,927 |
Carrying Amount | $ 46,337 | $ 30,441 |
Weighted Average Coupon | 3.35% | 2.66% |
Held by consolidated trusts | Single-family 20 and 30-year or more, fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 2,603,100 | $ 2,507,235 |
Carrying Amount | $ 2,640,550 | $ 2,550,137 |
Weighted Average Coupon | 3.06% | 2.76% |
Held by consolidated trusts | Single-family 15-year or less, fixed-rate | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 326,242 | $ 367,844 |
Carrying Amount | $ 331,291 | $ 374,339 |
Weighted Average Coupon | 2.20% | 2.14% |
Held by consolidated trusts | Adjustable-rate and other | Single-family | ||
Debt Instrument [Line Items] | ||
UPB | $ 23,251 | $ 23,561 |
Carrying Amount | $ 23,749 | $ 24,153 |
Weighted Average Coupon | 3.93% | 3.04% |
Debt - Other Short-Term Debt (D
Debt - Other Short-Term Debt (Details) - Held by Freddie Mac - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Short Term Debt Par Value | $ 6,032 | $ 7,716 |
Short Term Debt | $ 5,976 | $ 7,712 |
Short-term debt weighted average effective rate | 5.39% | 3.49% |
Discount notes and Reference Bills | ||
Short-term Debt [Line Items] | ||
Short Term Debt Par Value | $ 6,032 | $ 6,826 |
Short Term Debt | $ 5,976 | $ 6,822 |
Short-term debt weighted average effective rate | 5.39% | 3.71% |
Medium-term notes | ||
Short-term Debt [Line Items] | ||
Short Term Debt Par Value | $ 0 | $ 890 |
Short Term Debt | $ 0 | $ 890 |
Short-term debt weighted average effective rate | 0% | 1.81% |
Debt - Other Long-Term Debt (De
Debt - Other Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term Debt Carrying Amount | $ 3,202,370 | |
Debt instruments recorded at fair value | 2,476 | $ 3,047 |
Held by Freddie Mac | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 168,008 | 170,363 |
Long-term Debt Carrying Amount | $ 160,443 | $ 159,050 |
Long-term debt weighted average effective rate | 3.30% | 2.20% |
Debt instruments recorded at fair value | $ 400 | $ 1,100 |
Held by Freddie Mac | Other | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 0 | 0 |
Long-term Debt Carrying Amount | $ 121 | $ 137 |
Long-term debt weighted average effective rate | 0.84% | 0.82% |
Held by Freddie Mac | Hedging-related basis adjustment | ||
Debt Instrument [Line Items] | ||
Long-term Debt Carrying Amount | $ (5,821) | $ (9,384) |
Held by Freddie Mac | Fixed-rate | Medium-term notes - callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | 139,344 | 103,584 |
Long-term Debt Carrying Amount | $ 139,257 | $ 103,528 |
Long-term debt weighted average effective rate | 3.13% | 1.96% |
Held by Freddie Mac | Fixed-rate | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 1,573 | $ 2,747 |
Long-term Debt Carrying Amount | $ 1,574 | $ 2,747 |
Long-term debt weighted average effective rate | 0.98% | 0.73% |
Held by Freddie Mac | Fixed-rate | Reference Notes securities - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 18,162 | $ 49,801 |
Long-term Debt Carrying Amount | $ 18,209 | $ 49,832 |
Long-term debt weighted average effective rate | 3.19% | 1.76% |
Held by Freddie Mac | Fixed-rate | CRT products | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 82 | $ 90 |
Long-term Debt Carrying Amount | $ 83 | $ 93 |
Long-term debt weighted average effective rate | 13% | 13% |
Held by Freddie Mac | Variable-rate | Medium-term notes - callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 1,869 | $ 4,691 |
Long-term Debt Carrying Amount | $ 1,867 | $ 4,689 |
Long-term debt weighted average effective rate | 4.81% | 3.95% |
Held by Freddie Mac | Variable-rate | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 47 | $ 47 |
Long-term Debt Carrying Amount | $ 47 | $ 47 |
Long-term debt weighted average effective rate | 8.10% | 8.10% |
Held by Freddie Mac | Variable-rate | CRT products | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 2,095 | $ 4,562 |
Long-term Debt Carrying Amount | $ 2,006 | $ 4,448 |
Long-term debt weighted average effective rate | 11.45% | 8.79% |
Held by Freddie Mac | Zero-coupon | Medium-term notes - non-callable | ||
Debt Instrument [Line Items] | ||
Other long-term debt par value | $ 4,836 | $ 4,841 |
Long-term Debt Carrying Amount | $ 3,100 | $ 2,913 |
Long-term debt weighted average effective rate | 6.17% | 6.11% |
Debt - Contractual Maturity of
Debt - Contractual Maturity of Other Long-term Debt and Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Contractual maturities of long term debt and debt securities of consolidated trusts held by third parties | ||
Debt securities of consolidated trusts held by third parties, STACR and SCR debt notes | $ 3,002,070 | |
Total | 3,167,901 | |
Net discounts, premiums, hedge-related and other basis adjustments | 34,469 | |
Long-term Debt | 3,202,370 | |
Held by Freddie Mac | ||
Contractual maturities of long term debt and debt securities of consolidated trusts held by third parties | ||
Long-term debt - 2024 | 41,244 | |
Long-term debt - 2025 | 61,187 | |
Long-term debt - 2026 | 15,645 | |
Long-term debt - 2027 | 12,530 | |
Long-term debt - 2028 | 10,947 | |
Long-Term Debt, Maturity, after Year Five | 24,278 | |
Long-term Debt | $ 160,443 | $ 159,050 |
Derivatives (Details)
Derivatives (Details) - OTC derivatives - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Collateral Already Posted, Aggregate Fair Value | $ 17 | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 0 | 27 |
Additional Collateral, Aggregate Fair Value | $ 0 | $ 10 |
Derivatives - Derivative Assets
Derivatives - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional or contractual amount | $ 866,455 | $ 1,057,990 |
Derivative other receivable | 17 | 35 |
Netting adjustments to derivative assets | (5,742) | (6,127) |
Derivative Asset | 486 | 307 |
Derivative other payable | (36) | (25) |
Netting adjustments to derivative liabilities | 7,834 | 10,187 |
Derivative liabilities, net (Notes 9, 10) | (873) | (758) |
Not Designated as Hedging Instrument, Economic Hedge | ||
Derivative [Line Items] | ||
Notional or contractual amount | 694,253 | 876,692 |
Derivative Asset, Fair Value | 5,935 | 6,078 |
Derivative liabilities at fair value | (3,013) | (3,073) |
Not Designated as Hedging Instrument, Economic Hedge | CDX Swaption | ||
Derivative [Line Items] | ||
Notional or contractual amount | 6,400 | 10,100 |
Derivative Asset, Fair Value | 1 | 2 |
Not Designated as Hedging Instrument, Economic Hedge | Swap | ||
Derivative [Line Items] | ||
Notional or contractual amount | 351,193 | 480,824 |
Derivative Asset, Fair Value | 1,638 | 1,762 |
Derivative liabilities at fair value | (462) | (526) |
Not Designated as Hedging Instrument, Economic Hedge | Written Option | Written | ||
Derivative [Line Items] | ||
Notional or contractual amount | 48,227 | 46,101 |
Derivative Asset, Fair Value | 0 | 0 |
Derivative liabilities at fair value | (1,746) | (1,857) |
Not Designated as Hedging Instrument, Economic Hedge | Purchased Options | Purchased | ||
Derivative [Line Items] | ||
Notional or contractual amount | 89,790 | 92,010 |
Derivative Asset, Fair Value | 4,251 | 4,302 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Futures | ||
Derivative [Line Items] | ||
Notional or contractual amount | 132,982 | 182,330 |
Derivative Asset, Fair Value | 0 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge | Mortgage commitments derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 26,911 | 29,354 |
Derivative Asset, Fair Value | 43 | 12 |
Derivative liabilities at fair value | (10) | (11) |
Not Designated as Hedging Instrument, Economic Hedge | CRT-related derivatives | ||
Derivative [Line Items] | ||
Notional or contractual amount | 30,578 | 31,647 |
Derivative Asset, Fair Value | 0 | 0 |
Derivative liabilities at fair value | (228) | (55) |
Not Designated as Hedging Instrument, Economic Hedge | Other | ||
Derivative [Line Items] | ||
Notional or contractual amount | 14,572 | 14,426 |
Derivative Asset, Fair Value | 3 | 2 |
Derivative liabilities at fair value | (567) | (624) |
Not Designated as Hedging Instrument, Economic Hedge | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional or contractual amount | 622,192 | 801,265 |
Derivative Asset, Fair Value | 5,889 | 6,064 |
Derivative liabilities at fair value | (2,208) | (2,383) |
Designated as Hedging Instrument | Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 276 | 321 |
Derivative liabilities at fair value | (5,658) | (7,847) |
Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional or contractual amount | 172,202 | 181,298 |
Derivative Asset, Fair Value | 276 | 321 |
Derivative liabilities at fair value | (5,658) | (7,847) |
Designated as Hedging Instrument | Fair Value Hedging | Swap | ||
Derivative [Line Items] | ||
Notional or contractual amount | $ 172,202 | $ 181,298 |
Offsetting of Derivatives - Ass
Offsetting of Derivatives - Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) counterparty | Dec. 31, 2022 USD ($) |
Offsetting Assets [Line Items] | ||
Derivative Assets | $ 6,228 | $ 6,434 |
Derivative Liabilities | (8,707) | (10,945) |
Netting Adjustment | (4,210) | (4,468) |
Cash collateral netting | (1,532) | (1,659) |
Derivative Asset | 486 | 307 |
Gross amount not offset in the consolidated balance sheets | (366) | (218) |
Net Amount | 120 | 89 |
Other | ||
Offsetting Assets [Line Items] | ||
Derivative Assets | 3 | 2 |
Derivative Liabilities | (795) | (679) |
OTC derivatives | ||
Offsetting Assets [Line Items] | ||
Derivative Assets | 6,165 | 6,385 |
Derivative Liabilities | $ (7,866) | (10,230) |
OTC derivatives | SP Equivalent Investment Grade Rating | Net uncollateralized exposure to derivative counterparties | ||
Offsetting Assets [Line Items] | ||
Number of counterparties | counterparty | 4 | |
Cleared and exchange-traded derivatives | ||
Offsetting Assets [Line Items] | ||
Derivative Assets | $ 13 | 28 |
Derivative Liabilities | (36) | (25) |
Mortgage commitments derivatives | ||
Offsetting Assets [Line Items] | ||
Derivative Assets | 47 | 19 |
Derivative Liabilities | $ (10) | $ (11) |
Offsetting of Derivatives - Lia
Offsetting of Derivatives - Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Liability [Abstract] | ||
Gross Amount Recognized | $ (8,707) | $ (10,945) |
Counterparty netting | 4,210 | 4,468 |
Cash collateral netting | 3,624 | 5,719 |
Derivative Liability | (873) | (758) |
Gross amount not offset in the consolidated balance sheets | 47 | 31 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (826) | (727) |
Other | ||
Derivative Liability [Abstract] | ||
Gross Amount Recognized | (795) | (679) |
OTC derivatives | ||
Derivative Liability [Abstract] | ||
Gross Amount Recognized | (7,866) | (10,230) |
Cleared and exchange-traded derivatives | ||
Derivative Liability [Abstract] | ||
Gross Amount Recognized | (36) | (25) |
Mortgage commitments derivatives | ||
Derivative Liability [Abstract] | ||
Gross Amount Recognized | $ (10) | $ (11) |
Derivatives - Gains and Losses
Derivatives - Gains and Losses on Derivatives (Details) - Not Designated as Hedging Instrument, Economic Hedge - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | $ 243 | $ 6,456 | $ 1,151 |
Derivative gains (losses) | Interest-rate risk management derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 391 | 4,110 | 449 |
Derivative gains (losses) | Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 359 | 970 | 1,007 |
Derivative gains (losses) | Written Option | Written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 170 | (903) | (77) |
Derivative gains (losses) | Purchased Options | Purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (335) | 1,794 | (716) |
Derivative gains (losses) | Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 197 | 2,249 | 235 |
Derivative gains (losses) | Mortgage commitments derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | 17 | 2,743 | 713 |
Derivative gains (losses) | CRT Related Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (176) | (172) | 9 |
Derivative gains (losses) | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | $ 11 | $ (225) | $ (20) |
Derivatives - Gains and Losse_2
Derivatives - Gains and Losses on Fair Value Hedge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest income | $ 105,363 | $ 83,458 | $ 61,527 |
Interest Expense | (86,821) | (65,453) | (43,947) |
Interest rate risk on held-for-investment mortgage loan | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 671 | (5,817) | (457) |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (854) | 5,000 | 529 |
Interest accrual on fair value hedging derivatives for held-for-investment loan | 948 | (294) | (433) |
Discontinued hedge related basis adjustment amortization | 198 | (79) | (1,884) |
Interest rate risk on debt | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (3,080) | 7,130 | 2,698 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 3,084 | (7,267) | (2,895) |
Interest accruals on fair value hedging derivatives for debt | (4,065) | (1,053) | 931 |
Discontinued hedge related basis adjustment amortization | $ (377) | $ (8) | $ 55 |
Derivatives - Cumulative Basis
Derivatives - Cumulative Basis Adjustment on Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cumulative Basis Adjustments Due to Fair Value Hedging [Line Items] | ||
Carrying amount debt hedged liability | $ (143,407) | $ (142,511) |
Total basis adjustment cumulative amount for hedged liability | 5,821 | 9,384 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Cumulative Increase (Decrease) | (200) | |
Basis adjustment amount for hedged liability - discontinued hedge | 29 | 123 |
Mortgage loans held-for-investment | ||
Cumulative Basis Adjustments Due to Fair Value Hedging [Line Items] | ||
Carrying amount mortgage loans hedged asset | 1,115,454 | 1,108,098 |
Hedged Asset, Fair Value Hedge, Portfolio Layer, Cumulative Increase (Decrease) | (2,253) | (3,122) |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Cumulative Increase (Decrease) | (220) | (959) |
Basis adjustment amount for hedged asset - discontinued hedge | (2,033) | (2,163) |
Closed Portfolio and Beneficial Interest, Last-of-Layer, Amortized Cost | 59,786 | 79,070 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Amount | 11,670 | 11,516 |
Mortgage loans held-for-sale | ||
Cumulative Basis Adjustments Due to Fair Value Hedging [Line Items] | ||
Carrying amount mortgage loans hedged asset | 128 | 67 |
Hedged Asset, Fair Value Hedge, Portfolio Layer, Cumulative Increase (Decrease) | 1 | 1 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Cumulative Increase (Decrease) | 0 | 0 |
Basis adjustment amount for hedged asset - discontinued hedge | 1 | 1 |
Closed Portfolio and Beneficial Interest, Last-of-Layer, Amortized Cost | 0 | 0 |
Hedged Asset, Fair Value Hedge, Last-of-Layer, Amount | $ 0 | $ 0 |
Collateralized Agreements (Deta
Collateralized Agreements (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Offsetting Assets [Line Items] | ||
Securities purchased under agreements to resell used to provide financing to investors | $ 1.1 | $ 1.1 |
Collateralized Agreements and O
Collateralized Agreements and Offsetting Arrangements - Offsetting of Financial Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Securities Purchased under Agreements to Resell | ||
Gross Amount Recognized | $ 105,393 | $ 99,286 |
Counterparty netting | (10,245) | (11,991) |
Securities purchased under agreements to resell | 95,148 | 87,295 |
Gross Amount Not Offset in the Consolidated Balance Sheets | (95,148) | (87,295) |
Net Amount | 0 | 0 |
Securities Purchased under Agreements to Resell | ||
Offsetting Assets [Line Items] | ||
Collateral Securities Repledged, Delivered, or Used | 400 | 100 |
Securities Purchased under Agreements to Resell, Fair Value of Collateral | $ 104,200 | $ 54,700 |
Collateralized Agreements and_2
Collateralized Agreements and Offsetting Arrangements - Offsetting of Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Gross Amount Recognized | $ (10,245) | $ (11,991) |
Counterparty netting | 10,245 | 11,991 |
Net Amount Presented in the Consolidated Balance Sheets | 0 | 0 |
Gross Amount Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Collateralized Agreements and_3
Collateralized Agreements and Offsetting Arrangements - Underlying Collateral Pledged (Details) - Asset Pledged as Collateral with Right - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 12,457 | $ 12,333 |
US Treasury Securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 10,245 | 11,991 |
Overnight and continuous | US Treasury Securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
30 days or less | US Treasury Securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 10,245 | 11,991 |
After 30 days through 90 days | US Treasury Securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Greater than 90 days | US Treasury Securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 8,221 | $ 9,453 |
Collateralized Agreements and_4
Collateralized Agreements and Offsetting Arrangements - Collateral in the Form of Securities Pledged (Details) - Asset Pledged as Collateral with Right - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 12,457 | $ 12,333 |
Notes Payable, Other Payables | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 2,370 | 1,347 |
Net Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 1,866 | 1,533 |
Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 8,221 | 9,453 |
Trading securities | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 7,902 | 5,790 |
Trading securities | Notes Payable, Other Payables | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 2,370 | 1,347 |
Trading securities | Net Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 1,866 | 1,533 |
Trading securities | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 3,666 | 2,910 |
Other assets | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 4,555 | 6,543 |
Other assets | Notes Payable, Other Payables | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Other assets | Net Derivatives | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Other assets | Securities Sold under Agreements to Repurchase | ||
Collateral in the Form of Securities Pledged [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 4,555 | $ 6,543 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Share (Details) | 12 Months Ended | ||||||
Sep. 08, 2008 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) security $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2024 USD ($) | Jul. 08, 2010 security | Dec. 31, 2008 USD ($) $ / shares shares | |
Stockholders Equity Text [Line Items] | |||||||
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | ||||||
Permitted proceeds from future common stock issuance | $ 70,000,000,000 | ||||||
Common stock warrant, percentage of common stock shares that can be purchased | 79.90% | ||||||
Senior preferred stock, at redemption value | $ 117,300,000,000 | ||||||
Common stock warrant, exercise price per share | $ / shares | $ 0.00001 | ||||||
Common stock warrant, amount outstanding | $ 2,300,000,000 | ||||||
Number of preferred stock classes | security | 24 | ||||||
Stock Issued During Period, Shares, New Issues | shares | 0 | 0 | |||||
Common shares or non-cumulative preferred stock repurchased | shares | 0 | 0 | |||||
Dividends On Common Stock | $ 0 | $ 0 | $ 0 | ||||
Dividends On Senior Preferred Stock | 0 | 0 | 0 | ||||
Dividends On Preferred Stock | $ 0 | $ 0 | $ 0 | ||||
Number of senior preferred stock class | security | 1 | ||||||
Number of preferred stock classes delisted | security | 20 | ||||||
Restricted Stock Units (RSUs) | |||||||
Stockholders Equity Text [Line Items] | |||||||
Awards outstanding (in shares) | shares | 0 | ||||||
Restricted Stock [Member] | |||||||
Stockholders Equity Text [Line Items] | |||||||
Awards outstanding (in shares) | shares | 41,160 | 41,160 | |||||
Subsequent Event | |||||||
Stockholders Equity Text [Line Items] | |||||||
Senior preferred stock, at redemption value | $ 120,400,000,000 | ||||||
Preferred Stock | |||||||
Stockholders Equity Text [Line Items] | |||||||
Preferred stock, outstanding (in shares) | shares | 464,170,000 | ||||||
Senior Preferred Stock | |||||||
Stockholders Equity Text [Line Items] | |||||||
Senior preferred stock, par value per share | $ / shares | $ 1 | ||||||
Initial liquidation preference of senior preferred stock | $ 1,000,000,000 | ||||||
Initial liquidation preference (in usd per share) | $ / shares | $ 1,000 | $ 1,000 | |||||
Senior preferred stock, at redemption value | $ 117,309,000,000 | ||||||
Stock Issued During Period, Shares, New Issues | shares | 1,000,000 | ||||||
Preferred stock, outstanding (in shares) | shares | 1,000,000 | 1,000,000 | |||||
Common Stock | |||||||
Stockholders Equity Text [Line Items] | |||||||
OTCQB Symbol | FMCC |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Share - Senior Preferred Stock (Details) - USD ($) | 12 Months Ended | ||||||||||||
Dec. 31, 2023 | Dec. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Sep. 08, 2008 | |
Class of Stock [Line Items] | |||||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||
Increase in senior preferred stock | $ 3,000,000,000 | ||||||||||||
Aggregate liquidation preference on senior preferred stock | $ 117,300,000,000 | ||||||||||||
Senior Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares Authorized | 1,000,000 | 1,000,000 | |||||||||||
Shares Outstanding | 1,000,000 | 1,000,000 | |||||||||||
Total Par Value | $ 1,000,000 | $ 1,000,000 | |||||||||||
Initial liquidation preference (in usd per share) | $ 1,000 | $ 1,000 | |||||||||||
Initial Liquidation Preference Of Senior Preferred Stock | $ 1,000,000,000 | ||||||||||||
Increase in senior preferred stock | $ 3,000,000,000 | ||||||||||||
Increase in liquidation preference due to net worth increase | 9,431,000,000 | $ 9,919,000,000 | $ 11,420,000,000 | $ 7,217,000,000 | $ 3,674,000,000 | ||||||||
Non draw adjustment | 45,661,000,000 | ||||||||||||
Increase in liquidation preference | 71,648,000,000 | $ 312,000,000 | $ 165,000,000 | $ 7,971,000,000 | $ 12,500,000,000 | $ 36,900,000,000 | $ 13,800,000,000 | ||||||
Aggregate liquidation preference on senior preferred stock | $ 117,309,000,000 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Share - Preferred Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2012 | Dec. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |||
Total Outstanding Balance | $ 14,109,000 | $ 14,109,000 | |
Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 464,170,000 | ||
Shares Outstanding | shares | 464,170,000 | ||
Total Par Value | $ 464,170 | ||
Total Outstanding Balance | $ 14,109,000 | ||
Class 1 - 1996 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 5,000,000 | ||
Shares Outstanding | shares | 5,000,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
OTCQB Symbol | FMCCI | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 9.00%. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 1% | ||
Denominator amount in dividend rate reset calculation | 1.377 | ||
Class 1 - 1996 Variable-rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 9% | ||
Class 2 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 3,000,000 | ||
Shares Outstanding | shares | 3,000,000 | ||
Total Par Value | $ 3,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 150,000 | ||
Class 3 - 5% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5% | ||
Shares Authorized | shares | 8,000,000 | ||
Shares Outstanding | shares | 8,000,000 | ||
Total Par Value | $ 8,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 400,000 | ||
OTCQB Symbol | FMCKK | ||
Class 4 - 1998 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 4,400,000 | ||
Shares Outstanding | shares | 4,400,000 | ||
Total Par Value | $ 4,400 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 220,000 | ||
OTCQB Symbol | FMCCG | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 1% divided by 1.377, and is capped at 7.50%. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 1% | ||
Denominator amount in dividend rate reset calculation | 1.377 | ||
Class 4 - 1998 Variable-rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 7.50% | ||
Class 5 - 5.10% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.10% | ||
Shares Authorized | shares | 8,000,000 | ||
Shares Outstanding | shares | 8,000,000 | ||
Total Par Value | $ 8,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 400,000 | ||
OTCQB Symbol | FMCCH | ||
Class 6 - 5.30% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.30% | ||
Shares Authorized | shares | 4,000,000 | ||
Shares Outstanding | shares | 4,000,000 | ||
Total Par Value | $ 4,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 200,000 | ||
Class 7 - 5.10% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.10% | ||
Shares Authorized | shares | 3,000,000 | ||
Shares Outstanding | shares | 3,000,000 | ||
Total Par Value | $ 3,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 150,000 | ||
Class 8 - 5.79% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.79% | ||
Shares Authorized | shares | 5,000,000 | ||
Shares Outstanding | shares | 5,000,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
OTCQB Symbol | FMCCK | ||
Class 9 - 1999 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 5,750,000 | ||
Shares Outstanding | shares | 5,750,000 | ||
Total Par Value | $ 5,750 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 287,000 | ||
OTCQB Symbol | FMCCL | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets on January 1 every five years after January 1, 2005 based on a five-year Constant Maturity Treasury rate, and is capped at 11.00%. | ||
Preferred Stock, Redemption Terms | Optional redemption on December 31, 2004 and on December 31 every five years thereafter. | ||
Preferred stock dividend rate reset period | 5 years | ||
Class 9 - 1999 Variable-rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11% | ||
Class 10 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 6,500,000 | ||
Shares Outstanding | shares | 6,500,000 | ||
Total Par Value | $ 6,500 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 325,000 | ||
OTCQB Symbol | FMCCM | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets on April 1 every two years after April 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.10%, and is capped at 11.00%. | ||
Preferred Stock, Redemption Terms | Optional redemption on March 31, 2003 and on March 31 every two years thereafter. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 0.10% | ||
Preferred stock dividend rate reset period | 2 years | ||
Class 10 - 2001 Variable-rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11% | ||
Class 11 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 4,600,000 | ||
Shares Outstanding | shares | 4,600,000 | ||
Total Par Value | $ 4,600 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 230,000 | ||
OTCQB Symbol | FMCCN | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets on April 1 every year based on spread-adjusted 12-month CME Term SOFR minus 0.20%, and is capped at 11.00%. | ||
Preferred Stock, Redemption Terms | Optional redemption on March 31, 2003 and on March 31 every year thereafter. | ||
Percentage deducted from benchmark rate in dividend rate reset calculation | 0.20% | ||
Class 11 - 2001 Variable-rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11% | ||
Class 12 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 3,450,000 | ||
Shares Outstanding | shares | 3,450,000 | ||
Total Par Value | $ 3,450 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 173,000 | ||
OTCQB Symbol | FMCCO | ||
Class 13 - 6% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6% | ||
Shares Authorized | shares | 3,450,000 | ||
Shares Outstanding | shares | 3,450,000 | ||
Total Par Value | $ 3,450 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 173,000 | ||
OTCQB Symbol | FMCCP | ||
Class 14 - 2001 Variable-rate | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 11% | ||
Shares Authorized | shares | 4,020,000 | ||
Shares Outstanding | shares | 4,020,000 | ||
Total Par Value | $ 4,020 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 201,000 | ||
OTCQB Symbol | FMCCJ | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets on July 1 every two years after July 1, 2003 based on the two-year Constant Maturity Treasury rate plus 0.20%, and is capped at 11.00%. | ||
Preferred Stock, Redemption Terms | Optional redemption on June 30, 2003 and on June 30 every two years thereafter. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 0.20% | ||
Preferred stock dividend rate reset period | 2 years | ||
Class 15 - 5.70% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.70% | ||
Shares Authorized | shares | 6,000,000 | ||
Shares Outstanding | shares | 6,000,000 | ||
Total Par Value | $ 6,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 300,000 | ||
OTCQB Symbol | FMCKP | ||
Class 16 - 5.81% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.81% | ||
Shares Authorized | shares | 6,000,000 | ||
Shares Outstanding | shares | 6,000,000 | ||
Total Par Value | $ 6,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 300,000 | ||
Class 17 - 2006 Variable-rate | |||
Class of Stock [Line Items] | |||
Shares Authorized | shares | 15,000,000 | ||
Shares Outstanding | shares | 15,000,000 | ||
Total Par Value | $ 15,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 750,000 | ||
OTCQB Symbol | FMCCS | ||
Preferred Stock, Dividend Payment Terms | Dividend rate resets quarterly and is equal to the sum of spread-adjusted three-month CME Term SOFR plus 0.50% but not less than 4.00%. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 0.50% | ||
Class 17 - 2006 Variable-rate | Minimum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 4% | ||
Class 18 - 6.42% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.42% | ||
Shares Authorized | shares | 5,000,000 | ||
Shares Outstanding | shares | 5,000,000 | ||
Total Par Value | $ 5,000 | ||
Redemption Price Per Share | $ / shares | $ 50 | ||
Total Outstanding Balance | $ 250,000 | ||
OTCQB Symbol | FMCCT | ||
Class 19 - 5.90% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.90% | ||
Shares Authorized | shares | 20,000,000 | ||
Shares Outstanding | shares | 20,000,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKO | ||
Class 20 - 5.57% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.57% | ||
Shares Authorized | shares | 44,000,000 | ||
Shares Outstanding | shares | 44,000,000 | ||
Total Par Value | $ 44,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 1,100,000 | ||
OTCQB Symbol | FMCKM | ||
Class 21 - 5.66% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 5.66% | ||
Shares Authorized | shares | 20,000,000 | ||
Shares Outstanding | shares | 20,000,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKN | ||
Class 22 - 6.02% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.02% | ||
Shares Authorized | shares | 20,000,000 | ||
Shares Outstanding | shares | 20,000,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKL | ||
Class 23 - 6.55% | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 6.55% | ||
Shares Authorized | shares | 20,000,000 | ||
Shares Outstanding | shares | 20,000,000 | ||
Total Par Value | $ 20,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 500,000 | ||
OTCQB Symbol | FMCKI | ||
Class 24 - 2007 Fixed-to-floating rate | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 8.375% | ||
Shares Authorized | shares | 240,000,000 | ||
Shares Outstanding | shares | 240,000,000 | ||
Total Par Value | $ 240,000 | ||
Redemption Price Per Share | $ / shares | $ 25 | ||
Total Outstanding Balance | $ 6,000,000 | ||
OTCQB Symbol | FMCKJ | ||
Preferred Stock, Dividend Payment Terms | Dividend rate is set at an annual fixed rate of 8.375% from December 4, 2007 through December 31, 2012. For the period beginning on or after January 1, 2013, dividend rate resets quarterly and is equal to the higher of: (a) the sum of spread-adjusted three-month CME Term SOFR plus 4.16% per annum; or (b) 7.875% per annum. | ||
Preferred Stock, Redemption Terms | Optional redemption on December 31, 2012 and on December 31 every five years thereafter. | ||
Percentage added to benchmark rate in dividend rate reset calculation | 4.16% | ||
Class 24 - 2007 Fixed-to-floating rate | Maximum | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate | 7.875% |
Net Interest Income (Details)
Net Interest Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Net Interest Income [Line Items] | |||
Interest income, mortgage loans | $ 96,985 | $ 79,826 | $ 59,130 |
Interest income, investment securities | 1,571 | 1,640 | 2,261 |
Interest Income, Securities Purchased under Agreements to Resell | 6,135 | 1,718 | 48 |
Other | 672 | 274 | 88 |
Interest income | 105,363 | 83,458 | 61,527 |
Interest Expense | (86,821) | (65,453) | (43,947) |
Net interest income | 18,542 | 18,005 | 17,580 |
(Provision) benefit for credit losses | 872 | (1,841) | 1,041 |
Net interest income after benefit (provision) for credit losses | 19,414 | 16,164 | 18,621 |
Held by consolidated trusts | |||
Components of Net Interest Income [Line Items] | |||
Interest expense of debt securities | (76,703) | (61,404) | (42,209) |
Held by Freddie Mac | |||
Components of Net Interest Income [Line Items] | |||
Interest Expense, Short-term Borrowings | (789) | (238) | 0 |
Interest Expense, Long-term Debt | $ (9,329) | $ (3,811) | $ (1,738) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 18,000,000 | $ 34,000,000 |
Unrecognized Tax Benefits | $ 0 |
Income Taxes - Federal Income T
Income Taxes - Federal Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ (1,003) | $ (1,749) | $ (2,617) |
Deferred income tax expense | (1,658) | (528) | (473) |
Total income tax expense | $ (2,661) | $ (2,277) | $ (3,090) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Statutory corporate tax rate | $ (2,772) | $ (2,437) | $ (3,192) |
Tax-exempt interest | 10 | 7 | 20 |
Tax credits | 242 | 190 | 133 |
Valuation allowance | 16 | 18 | (11) |
Other | (157) | (55) | (40) |
Total income tax expense | $ (2,661) | $ (2,277) | $ (3,090) |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory corporate tax rate | 21% | 21% | 21% |
Tax-exempt interest | (0.10%) | (0.10%) | (0.20%) |
Tax Credits (Percent) | (1.80%) | (1.60%) | (0.90%) |
Valuation allowance | (0.10%) | (0.20%) | 0.10% |
Other | 1.20% | 0.50% | 0.30% |
Effective tax rate | 20.20% | 19.60% | 20.30% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Deferred fees | $ 1,821 | $ 2,197 |
Basis differences related to derivative instruments | 1,042 | 1,745 |
Credit related items and allowance for loan losses | 863 | 1,457 |
Basis differences related to assets held-for-investment and held-for-sale | 696 | 1,549 |
Other items, net | 439 | 178 |
Total deferred tax assets | 4,861 | 7,126 |
Deferred tax liabilities: | ||
Deferred Tax Liabilities, Investments | (749) | (1,315) |
Deferred Tax Liabilities, Other | (18) | 0 |
Total deferred tax liabilities | (767) | (1,315) |
Valuation allowance | (18) | (34) |
Deferred tax assets, net | $ 4,076 | $ 5,777 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 counterparty | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | $ 18,542 | $ 18,005 | $ 17,580 |
Non-interest income | |||
Guarantee income | 1,615 | 783 | 1,032 |
Investment gains, net | 707 | 1,969 | 2,746 |
Other income (loss) | 365 | 507 | 593 |
Noninterest Income | 2,687 | 3,259 | 4,371 |
Net revenues | 21,229 | 21,264 | 21,951 |
(Provision) benefit for credit losses | 872 | (1,841) | 1,041 |
Non-interest expense | (8,902) | (7,819) | (7,793) |
Income before income tax expense | 13,199 | 11,604 | 15,199 |
Income tax expense | (2,661) | (2,277) | (3,090) |
Net income | 10,538 | 9,327 | 12,109 |
Other comprehensive income (loss), net of taxes and reclassification adjustments | 166 | (342) | (489) |
Comprehensive income (loss) | 10,704 | 8,985 | 11,620 |
Operating segments | Single Family Guarantee Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | 17,657 | 17,067 | 16,273 |
Non-interest income | |||
Guarantee income | 103 | 109 | 114 |
Investment gains, net | 296 | 1,280 | 361 |
Other income (loss) | 211 | 295 | 479 |
Noninterest Income | 610 | 1,684 | 954 |
Net revenues | 18,267 | 18,751 | 17,227 |
(Provision) benefit for credit losses | 1,172 | (1,772) | 919 |
Non-interest expense | (8,118) | (7,148) | (7,075) |
Income before income tax expense | 11,321 | 9,831 | 11,071 |
Income tax expense | (2,282) | (1,929) | (2,251) |
Net income | 9,039 | 7,902 | 8,820 |
Other comprehensive income (loss), net of taxes and reclassification adjustments | 10 | (24) | (379) |
Comprehensive income (loss) | 9,049 | 7,878 | 8,441 |
Operating segments | Multifamily Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | 885 | 938 | 1,307 |
Non-interest income | |||
Guarantee income | 1,512 | 674 | 918 |
Investment gains, net | 411 | 689 | 2,385 |
Other income (loss) | 154 | 212 | 114 |
Noninterest Income | 2,077 | 1,575 | 3,417 |
Net revenues | 2,962 | 2,513 | 4,724 |
(Provision) benefit for credit losses | (300) | (69) | 122 |
Non-interest expense | (784) | (671) | (718) |
Income before income tax expense | 1,878 | 1,773 | 4,128 |
Income tax expense | (379) | (348) | (839) |
Net income | 1,499 | 1,425 | 3,289 |
Other comprehensive income (loss), net of taxes and reclassification adjustments | 156 | (318) | (110) |
Comprehensive income (loss) | $ 1,655 | $ 1,107 | $ 3,179 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,280,976 | $ 3,208,333 |
Operating segments | Single Family Guarantee Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,038,910 | 2,986,045 |
Operating segments | Multifamily Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 440,797 | 429,302 |
Operating segments | Operating segments and All Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,479,707 | 3,415,347 |
Reconciling items | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (198,731) | $ (207,014) |
Concentration of Credit and O_3
Concentration of Credit and Other Risks (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Top Ten Single-family Seller/Servicers [Member] | Single-family loan purchase volume | |
Concentration Risk [Line Items] | |
Sellers/Servicers over 10% | two |
Single Family Top 10 Sellers | Top Ten Single-family Seller/Servicers [Member] | Single-family loan purchase volume | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 55% |
Top five non-depository seller | Five Largest Non Depository Sellers | Single-family loan purchase volume | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 41% |
Seller/Servicers | |
Concentration Risk [Line Items] | |
UPB of loans subject to repurchase requests issued to Single-family Seller/Servicers | $ 0.5 |
UPB of loans related to recovered losses from repurchase requests to Single-family Seller/Servicer | $ 1.5 |
Single Family Servicers | Top Ten Single-family Seller/Servicers [Member] | Single-family loan serviced | |
Concentration Risk [Line Items] | |
Sellers/Servicers over 10% | one |
Concentration risk percentage | 53% |
Five largest non-depository servicers | Five largest non-depository servicers | Single-family UPB | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 25% |
Multifamily Sellers | Top Ten Multifamily Seller Servicers [Member] | Multifamily loan purchase volume | |
Concentration Risk [Line Items] | |
Sellers/Servicers over 10% | three |
Concentration risk percentage | 74% |
Multifamily Servicers | Top Ten Multifamily Seller Servicers [Member] | Multifamily loan serviced | |
Concentration Risk [Line Items] | |
Sellers/Servicers over 10% | three |
Concentration risk percentage | 78% |
Mortgage Insurers | |
Concentration Risk [Line Items] | |
Maximum loss limit from mortgage insurers for single-family mortgage portfolio | $ 165.7 |
UPB of single-family mortgage portfolio with mortgage insurance coverage | 637 |
Cash and Other Investment Counterparties | |
Concentration Risk [Line Items] | |
Cash and other non-mortgage investments | $ 147.2 |
Concentration of Credit and O_4
Concentration of Credit and Other Risks - Concentration of Credit Risk - Single-Family Mortgage Portfolio (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.55% |
West [Member] | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.43% |
Northeast [Member] | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.64% |
Southeast [Member] | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.58% |
Southwest [Member] | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.54% |
North Central [Member] | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.54% |
CALIFORNIA | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.42% |
TEXAS | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.57% |
FLORIDA | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.65% |
NEW YORK | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.93% |
ILLINOIS | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.69% |
All Other | |
Concentration Risk [Line Items] | |
Single-Family serious delinquency rate | 0.52% |
Single-family UPB | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 3,038,659 |
Unpaid principal balance, percent of portfolio | 100% |
Single-family UPB | West [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 910,597 |
Unpaid principal balance, percent of portfolio | 30% |
Single-family UPB | Northeast [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 703,581 |
Unpaid principal balance, percent of portfolio | 23% |
Single-family UPB | Southeast [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 530,617 |
Unpaid principal balance, percent of portfolio | 17% |
Single-family UPB | Southwest [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 451,271 |
Unpaid principal balance, percent of portfolio | 15% |
Single-family UPB | North Central [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 442,593 |
Unpaid principal balance, percent of portfolio | 15% |
Single-family UPB | CALIFORNIA | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 515,267 |
Unpaid principal balance, percent of portfolio | 17% |
Single-family UPB | TEXAS | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 212,800 |
Unpaid principal balance, percent of portfolio | 7% |
Single-family UPB | FLORIDA | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 200,169 |
Unpaid principal balance, percent of portfolio | 7% |
Single-family UPB | NEW YORK | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 132,432 |
Unpaid principal balance, percent of portfolio | 4% |
Single-family UPB | ILLINOIS | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 113,806 |
Unpaid principal balance, percent of portfolio | 4% |
Single-family UPB | All Other | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 1,864,185 |
Unpaid principal balance, percent of portfolio | 61% |
Concentration of Credit and O_5
Concentration of Credit and Other Risks - Concentration of Credit Risk - Multifamily Mortgage Portfolio (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.28% |
West [Member] | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.16% |
Northeast [Member] | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.52% |
Southwest [Member] | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.26% |
Southeast [Member] | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.10% |
North Central [Member] | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.40% |
CALIFORNIA | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.07% |
TEXAS | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.28% |
FLORIDA | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.03% |
NEW YORK | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 1.13% |
GEORGIA | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.01% |
All Other | |
Concentration Risk [Line Items] | |
Multifamily Delinquency Rate | 0.27% |
Multifamily Unpaid Principal Balance | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 440,797 |
Unpaid principal balance, percent of portfolio | 100% |
Multifamily Unpaid Principal Balance | West [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 109,815 |
Unpaid principal balance, percent of portfolio | 25% |
Multifamily Unpaid Principal Balance | Northeast [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 107,326 |
Unpaid principal balance, percent of portfolio | 24% |
Multifamily Unpaid Principal Balance | Southwest [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 91,406 |
Unpaid principal balance, percent of portfolio | 21% |
Multifamily Unpaid Principal Balance | Southeast [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 88,762 |
Unpaid principal balance, percent of portfolio | 20% |
Multifamily Unpaid Principal Balance | North Central [Member] | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 43,488 |
Unpaid principal balance, percent of portfolio | 10% |
Multifamily Unpaid Principal Balance | CALIFORNIA | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 58,186 |
Unpaid principal balance, percent of portfolio | 13% |
Multifamily Unpaid Principal Balance | TEXAS | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 56,231 |
Unpaid principal balance, percent of portfolio | 13% |
Multifamily Unpaid Principal Balance | FLORIDA | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 38,440 |
Unpaid principal balance, percent of portfolio | 9% |
Multifamily Unpaid Principal Balance | NEW YORK | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 33,815 |
Unpaid principal balance, percent of portfolio | 8% |
Multifamily Unpaid Principal Balance | GEORGIA | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 18,178 |
Unpaid principal balance, percent of portfolio | 4% |
Multifamily Unpaid Principal Balance | All Other | Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk, unpaid principal balance | $ 235,947 |
Unpaid principal balance, percent of portfolio | 53% |
Concentration of Credit and O_6
Concentration of Credit and Other Risks - Mortgage Insurer Concentration (Details) - Mortgage insurance coverage - Mortgage Insurer Counterparty | 12 Months Ended |
Dec. 31, 2023 | |
Arch Mortgage Insurance Company | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 18% |
Mortgage Guaranty Insurance Corporation | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 18% |
Radian Guaranty Inc. | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 17% |
Enact | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 16% |
Essent Guaranty | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 17% |
National Mortgage Insurance Corporation [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 14% |
Total | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 100% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | $ 7,356 | $ 3,218 |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Other assets: | ||
Netting Adjustment | (4,210) | (4,468) |
Total other assets | 6,095 | 5,890 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 2,476 | 3,047 |
Other liabilities: | ||
Derivative Liabilities, netting adjustment | (4,210) | (4,468) |
Other liabilities, fair value | 873 | 759 |
Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 2,100 | 1,900 |
Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 400 | 1,100 |
Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 4,890 | 6,534 |
Trading: | ||
Trading securities, at fair value | 38,385 | 32,167 |
Total investments in securities | 43,275 | 38,701 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 7,356 | 3,218 |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Other assets: | ||
Guarantee assets | 5,351 | 5,442 |
Derivative Asset, Fair Value | 486 | 307 |
All Other Assets Fair Value Disclosure | 258 | 141 |
Netting Adjustment | 5,725 | 6,092 |
Total other assets | 6,095 | 5,890 |
Total assets carried at fair value on a recurring basis | 58,532 | 49,023 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 2,476 | 3,047 |
Other liabilities: | ||
Derivative liabilities at fair value | 873 | 758 |
Other liabilities | 0 | 1 |
Derivative Liabilities, netting adjustment | 7,798 | 10,162 |
Other liabilities, fair value | 873 | 759 |
Total liabilities carried at fair value on a recurring basis | 3,349 | 3,806 |
Fair Value, Measurements, Recurring | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 2,050 | 1,944 |
Fair Value, Measurements, Recurring | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 426 | 1,103 |
Fair Value, Measurements, Recurring | Mortage-related securities | ||
Trading: | ||
Trading securities, at fair value | 8,113 | 8,334 |
Fair Value, Measurements, Recurring | Non-mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | 30,272 | 23,833 |
Fair Value, Measurements, Recurring | Level 1 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 0 | 0 |
Trading: | ||
Trading securities, at fair value | 29,854 | 23,453 |
Total investments in securities | 29,854 | 23,453 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 0 | 0 |
Mortgage loans FVO held-for-investment | 0 | 0 |
Other assets: | ||
Guarantee assets | 0 | 0 |
Derivative Asset, Fair Value | 0 | 0 |
All Other Assets Fair Value Disclosure | 0 | 0 |
Total other assets | 0 | 0 |
Total assets carried at fair value on a recurring basis | 29,854 | 23,453 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 0 | 0 |
Other liabilities: | ||
Derivative liabilities at fair value | 0 | 0 |
Other liabilities | 0 | 0 |
Other liabilities, fair value | 0 | 0 |
Total liabilities carried at fair value on a recurring basis | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortage-related securities | ||
Trading: | ||
Trading securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | 29,854 | 23,453 |
Fair Value, Measurements, Recurring | Level 2 | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 4,212 | 5,640 |
Trading: | ||
Trading securities, at fair value | 5,760 | 5,983 |
Total investments in securities | 9,972 | 11,623 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 6,460 | 2,908 |
Mortgage loans FVO held-for-investment | 1,333 | 1,104 |
Other assets: | ||
Guarantee assets | 0 | 0 |
Derivative Asset, Fair Value | 6,209 | 6,397 |
All Other Assets Fair Value Disclosure | 92 | 12 |
Total other assets | 6,301 | 6,409 |
Total assets carried at fair value on a recurring basis | 24,066 | 22,044 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 2,043 | 2,659 |
Other liabilities: | ||
Derivative liabilities at fair value | 8,608 | 10,823 |
Other liabilities | 0 | 1 |
Other liabilities, fair value | 8,608 | 10,824 |
Total liabilities carried at fair value on a recurring basis | 10,651 | 13,483 |
Fair Value, Measurements, Recurring | Level 2 | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 1,707 | 1,656 |
Fair Value, Measurements, Recurring | Level 2 | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 336 | 1,003 |
Fair Value, Measurements, Recurring | Level 2 | Mortage-related securities | ||
Trading: | ||
Trading securities, at fair value | 5,342 | 5,603 |
Fair Value, Measurements, Recurring | Level 2 | Non-mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | 418 | 380 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 678 | 894 |
Trading: | ||
Trading securities, at fair value | 2,771 | 2,731 |
Total investments in securities | 3,449 | 3,625 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 896 | 310 |
Mortgage loans FVO held-for-investment | 473 | 110 |
Other assets: | ||
Guarantee assets | 5,351 | 5,442 |
Derivative Asset, Fair Value | 2 | 2 |
All Other Assets Fair Value Disclosure | 166 | 129 |
Total other assets | 5,519 | 5,573 |
Total assets carried at fair value on a recurring basis | 10,337 | 9,618 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 433 | 388 |
Other liabilities: | ||
Derivative liabilities at fair value | 63 | 97 |
Other liabilities | 0 | 0 |
Other liabilities, fair value | 63 | 97 |
Total liabilities carried at fair value on a recurring basis | 496 | 485 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Held by consolidated trusts | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 343 | 288 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Held by Freddie Mac | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Debt instruments recorded at fair value | 90 | 100 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortage-related securities | ||
Trading: | ||
Trading securities, at fair value | 2,771 | 2,731 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Non-mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Asse_2
Fair Value Disclosures - Assets and Liabilities on Our Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liabilities: | |||
Beginning Balance | $ 485 | $ 318 | $ 342 |
Included in Earnings | (27) | 93 | (23) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | (3) | (20) | (1) |
Issues | 98 | 163 | 171 |
Sales | 0 | 0 | (1) |
Settlements, Net | (57) | (69) | (170) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 496 | 485 | 318 |
Unrealized (Gains) Losses Still Held - Liabilities | (51) | 124 | (22) |
Unrealized (Gains) Losses Still Held - Liabilities, OCI | 0 | 0 | 0 |
Assets: | |||
Beginning Balance | 9,618 | 10,692 | 10,527 |
Included in Earnings | (475) | (2,081) | (1,272) |
Included in Other Comprehensive Income | (5) | (103) | 7 |
Purchases | 2,652 | 881 | 1,530 |
Issues | 736 | 1,233 | 1,761 |
Sales | (1,155) | (190) | (318) |
Settlements, net | (1,169) | (1,457) | (1,363) |
Transfers into Level 3 | 542 | 665 | 0 |
Transfers out of Level 3 | (407) | (22) | (180) |
Ending Balance | 10,337 | 9,618 | 10,692 |
Unrealized Gains (Losses) Still Held - Assets | 197 | (1,397) | (1,279) |
Unrealized Gains (Losses) Still Held - Assets, OCI | (4) | (41) | 7 |
Debt | |||
Liabilities: | |||
Beginning Balance | 388 | 294 | 323 |
Included in Earnings | (41) | 14 | (30) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | (3) | (21) | (8) |
Issues | 97 | 163 | 169 |
Sales | 0 | 0 | 0 |
Settlements, Net | (8) | (62) | (160) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 433 | 388 | 294 |
Unrealized (Gains) Losses Still Held - Liabilities | (17) | 50 | (19) |
Unrealized (Gains) Losses Still Held - Liabilities, OCI | 0 | 0 | 0 |
Other liabilities | |||
Liabilities: | |||
Beginning Balance | 97 | 24 | 19 |
Included in Earnings | 14 | 79 | 7 |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 1 | 7 |
Issues | 1 | 0 | 2 |
Sales | 0 | 0 | (1) |
Settlements, Net | (49) | (7) | (10) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 63 | 97 | 24 |
Unrealized (Gains) Losses Still Held - Liabilities | (34) | 74 | (3) |
Unrealized (Gains) Losses Still Held - Liabilities, OCI | 0 | 0 | 0 |
Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 894 | 1,286 | 1,588 |
Included in Earnings | 2 | 30 | 29 |
Included in Other Comprehensive Income | (5) | (103) | 7 |
Purchases | 0 | 51 | 0 |
Issues | 0 | 0 | 0 |
Sales | 0 | (86) | (32) |
Settlements, net | (171) | (314) | (306) |
Transfers into Level 3 | 0 | 30 | 0 |
Transfers out of Level 3 | (42) | 0 | 0 |
Ending Balance | 678 | 894 | 1,286 |
Unrealized Gains (Losses) Still Held - Assets | 0 | (1) | 26 |
Unrealized Gains (Losses) Still Held - Assets, OCI | (4) | (41) | 7 |
Trading securities | |||
Assets: | |||
Beginning Balance | 2,731 | 3,386 | 3,259 |
Included in Earnings | (540) | (1,309) | (869) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 634 | 843 | 1,536 |
Issues | 0 | 0 | 0 |
Sales | 0 | 0 | (277) |
Settlements, net | (54) | (169) | (83) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (20) | (180) |
Ending Balance | 2,771 | 2,731 | 3,386 |
Unrealized Gains (Losses) Still Held - Assets | 112 | (595) | (872) |
Unrealized Gains (Losses) Still Held - Assets, OCI | 0 | 0 | 0 |
Investments in securities | |||
Assets: | |||
Beginning Balance | 3,625 | 4,672 | 4,847 |
Included in Earnings | (538) | (1,279) | (840) |
Included in Other Comprehensive Income | (5) | (103) | 7 |
Purchases | 634 | 894 | 1,536 |
Issues | 0 | 0 | 0 |
Sales | 0 | (86) | (309) |
Settlements, net | (225) | (483) | (389) |
Transfers into Level 3 | 0 | 30 | 0 |
Transfers out of Level 3 | (42) | (20) | (180) |
Ending Balance | 3,449 | 3,625 | 4,672 |
Unrealized Gains (Losses) Still Held - Assets | 112 | (596) | (846) |
Unrealized Gains (Losses) Still Held - Assets, OCI | (4) | (41) | 7 |
Mortgage loans held-for-sale | |||
Assets: | |||
Beginning Balance | 310 | 0 | |
Included in Earnings | 6 | (54) | |
Included in Other Comprehensive Income | 0 | 0 | |
Purchases | 2,038 | 0 | |
Issues | 0 | 0 | |
Sales | (1,152) | (94) | |
Settlements, net | (24) | (26) | |
Transfers into Level 3 | 12 | 486 | |
Transfers out of Level 3 | (294) | (2) | |
Ending Balance | 896 | 310 | 0 |
Unrealized Gains (Losses) Still Held - Assets | 32 | (53) | |
Unrealized Gains (Losses) Still Held - Assets, OCI | 0 | 0 | |
Mortgage loans held-for-investment | |||
Assets: | |||
Beginning Balance | 110 | 0 | |
Included in Earnings | (81) | (27) | |
Included in Other Comprehensive Income | 0 | 0 | |
Purchases | 0 | 0 | |
Issues | 0 | 0 | |
Sales | 0 | 0 | |
Settlements, net | (15) | (12) | |
Transfers into Level 3 | 530 | 149 | |
Transfers out of Level 3 | (71) | 0 | |
Ending Balance | 473 | 110 | 0 |
Unrealized Gains (Losses) Still Held - Assets | (84) | (27) | |
Unrealized Gains (Losses) Still Held - Assets, OCI | 0 | 0 | |
Other Assets | |||
Assets: | |||
Beginning Balance | 5,573 | 6,020 | 5,680 |
Included in Earnings | 138 | (721) | (432) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | (20) | (13) | (6) |
Issues | 736 | 1,233 | 1,761 |
Sales | (3) | (10) | (9) |
Settlements, net | (905) | (936) | (974) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 5,519 | 5,573 | 6,020 |
Unrealized Gains (Losses) Still Held - Assets | 137 | (721) | (433) |
Unrealized Gains (Losses) Still Held - Assets, OCI | 0 | 0 | 0 |
Guarantee Asset | |||
Assets: | |||
Beginning Balance | 5,442 | 5,919 | 5,509 |
Included in Earnings | 71 | (783) | (378) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Issues | 725 | 1,216 | 1,742 |
Sales | 0 | 0 | 0 |
Settlements, net | (887) | (910) | (954) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 5,351 | 5,442 | 5,919 |
Unrealized Gains (Losses) Still Held - Assets | 71 | (783) | (378) |
Unrealized Gains (Losses) Still Held - Assets, OCI | 0 | 0 | 0 |
All Other Assets | |||
Assets: | |||
Beginning Balance | 131 | 101 | 171 |
Included in Earnings | 67 | 62 | (54) |
Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | (20) | (13) | (6) |
Issues | 11 | 17 | 19 |
Sales | (3) | (10) | (9) |
Settlements, net | (18) | (26) | (20) |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Ending Balance | 168 | 131 | 101 |
Unrealized Gains (Losses) Still Held - Assets | 66 | 62 | (55) |
Unrealized Gains (Losses) Still Held - Assets, OCI | $ 0 | $ 0 | $ 0 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Recurring Level 3 Fair Value Measurements for Assets and Liabilities Measured on Our Consolidated Balance Sheets at Fair Value (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | $ 7,356 | $ 3,218 |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 4,890 | 6,534 |
Trading: | ||
Trading securities, at fair value | 38,385 | 32,167 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 7,356 | 3,218 |
Mortgage loans FVO held-for-investment | 1,806 | 1,214 |
Other assets: | ||
Guarantee assets | 5,351 | 5,442 |
Total assets carried at fair value on recurring basis | 58,532 | 49,023 |
Liabilities [Abstract] | ||
Total liabilities carried at fair value on a recurring basis | 3,349 | 3,806 |
Fair Value, Measurements, Recurring | Mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | 8,113 | 8,334 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 678 | 894 |
Trading: | ||
Trading securities, at fair value | 2,771 | 2,731 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 896 | 310 |
Mortgage loans FVO held-for-investment | 473 | 110 |
Other assets: | ||
Guarantee assets | 5,351 | 5,442 |
Insignificant Level 3 assets | 168 | 131 |
Total assets carried at fair value on recurring basis | 10,337 | 9,618 |
Liabilities [Abstract] | ||
Insignificant Level 3 liabilities | 496 | 485 |
Total liabilities carried at fair value on a recurring basis | 496 | 485 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Median of External Sources | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 489 | 557 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Single External Source | ||
Trading: | ||
Trading securities, at fair value | 2,085 | 2,080 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 896 | 310 |
Mortgage loans FVO held-for-investment | 473 | 110 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Discounted Cash Flows | ||
Other assets: | ||
Guarantee assets | 5,014 | 5,084 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Other | ||
Available-For-Sale, at Fair Value: | ||
Available-for-sale | 189 | 337 |
Trading: | ||
Trading securities, at fair value | 686 | 651 |
Other assets: | ||
Guarantee assets | 337 | 358 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage-related securities | ||
Trading: | ||
Trading securities, at fair value | $ 2,771 | $ 2,731 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Available-for-sale securities | Minimum | Median of External Sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 61.2 | 66.3 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Available-for-sale securities | Weighted Average | Median of External Sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 66.7 | 70.5 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Available-for-sale securities | Maximum | Median of External Sources | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 71.6 | 74.6 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Trading securities | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Trading securities | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 147.3 | 224.8 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Trading securities | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 4,471.7 | 5,702.4 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-sale | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 59.3 | 39.6 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-sale | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 100.3 | 76.6 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-sale | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 110.4 | 98.1 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-investment | Minimum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 24.7 | 76.9 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-investment | Weighted Average | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 74.7 | 80.6 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Mortgage loans held-for-investment | Maximum | Single External Source | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
External Pricing Source(s) | 99.2 | 87.5 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Guarantee Asset | Minimum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Fair Value Inputs Option Adjusted Spread Percentage | 0.17% | 0.17% |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Guarantee Asset | Weighted Average | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Fair Value Inputs Option Adjusted Spread Percentage | 0.47% | 0.45% |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Guarantee Asset | Maximum | Discounted Cash Flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Fair Value Inputs Option Adjusted Spread Percentage | 2.33% | 1.86% |
Fair Value Disclosures - Asse_3
Fair Value Disclosures - Assets on Our Consolidated Balance Sheets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Mortgage loans | $ 1,806 | $ 1,214 |
Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Mortgage loans | 2,218 | 2,144 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Assets: | ||
Mortgage loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Assets: | ||
Mortgage loans | 640 | 386 |
Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Recurring | ||
Assets: | ||
Mortgage loans | $ 1,578 | $ 1,758 |
Fair Value Disclosures - Quan_2
Fair Value Disclosures - Quantitative Information about Non-Recurring Level 3 Fair Value Measurements for Assets and Liabilities Measured on Our Consolidated Balance Sheets at Fair Value (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Assets: | ||
Mortgage loans | $ 1,806 | $ 1,214 |
Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Mortgage loans | 2,218 | 2,144 |
Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Recurring | ||
Assets: | ||
Mortgage loans | 1,578 | 1,758 |
Fair Value, Measurements, Nonrecurring | Median of External Sources | Mortgage loans | Fair Value, Measurements, Recurring | ||
Assets: | ||
Mortgage loans | 1,394 | 1,657 |
Fair Value, Measurements, Nonrecurring | Other Valuation Techniques | Mortgage loans | Fair Value, Measurements, Recurring | ||
Assets: | ||
Mortgage loans | $ 184 | $ 101 |
Fair Value, Measurements, Nonrecurring | Minimum | Median of External Sources | Mortgage loans | Fair Value, Measurements, Recurring | ||
Assets: | ||
External Pricing Source(s) | 72.9 | 74.8 |
Fair Value, Measurements, Nonrecurring | Maximum | Median of External Sources | Mortgage loans | Fair Value, Measurements, Recurring | ||
Assets: | ||
External Pricing Source(s) | 98.8 | 98.6 |
Fair Value, Measurements, Nonrecurring | Weighted Average | Median of External Sources | Mortgage loans | Fair Value, Measurements, Recurring | ||
Assets: | ||
External Pricing Source(s) | 82.4 | 86.3 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Securities purchased under agreements to resell | $ 95,148 | $ 87,295 |
Securities purchased under agreements to resell, netting adjustment | (10,245) | (11,991) |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 12,941 | 12,197 |
Mortgage Loans held-for-investment, net | 3,083,665 | 3,022,318 |
Total mortgage loans, net | 3,096,606 | 3,034,515 |
Mortgage loans | 1,806 | 1,214 |
Derivative Asset | 486 | 307 |
Netting Adjustment | (4,210) | (4,468) |
Other Assets | 6,095 | 5,890 |
Financial Liabilities | ||
Debt | 2,476 | 3,047 |
Debt, netting adjustment | 0 | 0 |
Derivative Liability | 873 | 758 |
Derivative Liabilities, netting adjustment | (4,210) | (4,468) |
Other liabilities, fair value | 873 | 759 |
Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 400 | 1,100 |
Held by consolidated trusts | ||
Financial Assets | ||
Securities purchased under agreements to resell | 9,396 | 9,703 |
Mortgage Loans [Abstract] | ||
Mortgage Loans held-for-investment, net | 3,039,461 | 2,971,601 |
Financial Liabilities | ||
Debt | 2,100 | 1,900 |
GAAP Carrying Amount | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,019 | 6,360 |
Securities purchased under agreements to resell | 95,148 | 87,295 |
Investments in Securities [Abstract] | ||
Available-for-sale securities, at fair value | 4,890 | 6,534 |
Trading, at fair value | 38,385 | 32,167 |
Total investments in securities | 43,275 | 38,701 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 12,941 | 12,197 |
Mortgage Loans held-for-investment, net | 3,083,665 | 3,022,318 |
Guarantee assets | 5,351 | 5,442 |
Derivative Asset | 486 | 307 |
All Other Assets | 2,107 | 1,739 |
Other Assets | 7,944 | 7,488 |
Total Financial Assets | 3,248,992 | 3,174,359 |
Financial Liabilities | ||
Debt | 3,208,346 | 3,145,832 |
Guarantee obligation | 5,451 | 5,779 |
Derivative Liability | 873 | 758 |
Other Liabilities | 14 | 20 |
Other liabilities, fair value | 6,338 | 6,557 |
Total Financial Liabilities | 3,214,684 | 3,152,389 |
GAAP Carrying Amount | Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 166,419 | 166,762 |
GAAP Carrying Amount | Held by consolidated trusts | ||
Financial Liabilities | ||
Debt | 3,041,927 | 2,979,070 |
GAAP Carrying Amount | AmortizedCost | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 3,100,000 | 3,000,000 |
Financial Liabilities | ||
Debt | 3,200,000 | 3,100,000 |
GAAP Carrying Amount | LowerOfCostOrFairValue | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 5,600 | 9,000 |
GAAP Carrying Amount | FV - NI | ||
Mortgage Loans [Abstract] | ||
Mortgage loans | 9,200 | 4,400 |
Financial Liabilities | ||
Debt | 2,500 | 3,000 |
Fair Value | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,019 | 6,360 |
Securities purchased under agreements to resell | 95,148 | 87,295 |
Securities purchased under agreements to resell, netting adjustment | (10,245) | (11,991) |
Investments in Securities [Abstract] | ||
Available-for-sale securities, at fair value | 4,890 | 6,534 |
Trading, at fair value | 38,385 | 32,167 |
Total investments in securities | 43,275 | 38,701 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 13,144 | 12,493 |
Mortgage Loans held-for-investment, net | 2,721,004 | 2,621,902 |
Total mortgage loans, net | 2,734,148 | 2,634,395 |
Guarantee assets | 5,353 | 5,445 |
Derivative Asset | 486 | 307 |
Netting Adjustment | (5,725) | (6,092) |
All Other Assets | 2,111 | 1,742 |
Other Assets | 7,950 | 7,494 |
Total Asset Netting Adjustment | (15,970) | (18,083) |
Total Financial Assets | 2,886,540 | 2,774,245 |
Financial Liabilities | ||
Debt | 2,840,769 | 2,731,868 |
Guarantee obligation | 6,126 | 6,016 |
Derivative Liability | 873 | 758 |
Derivative Liabilities, netting adjustment | (7,798) | (10,162) |
Other Liabilities | 659 | 1,236 |
Other liabilities, fair value | 7,658 | 8,010 |
Total Liability Netting Adjustment | (18,043) | (22,153) |
Total Financial Liabilities | 2,848,427 | 2,739,878 |
Fair Value | Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 167,023 | 166,844 |
Debt, netting adjustment | (10,245) | (11,991) |
Fair Value | Held by consolidated trusts | ||
Financial Liabilities | ||
Debt | 2,673,746 | 2,565,024 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 6,019 | 6,360 |
Securities purchased under agreements to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Trading, at fair value | 29,854 | 23,453 |
Total investments in securities | 29,854 | 23,453 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 0 | 0 |
Mortgage Loans held-for-investment, net | 0 | 0 |
Total mortgage loans, net | 0 | 0 |
Guarantee assets | 0 | 0 |
Derivative Asset, Fair Value | 0 | 0 |
All Other Assets | 0 | 0 |
Other Assets | 0 | 0 |
Total Financial Assets | 35,873 | 29,813 |
Financial Liabilities | ||
Debt | 0 | 0 |
Guarantee obligation | 0 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Other Liabilities | 0 | 0 |
Other liabilities, fair value | 0 | 0 |
Total Financial Liabilities | 0 | 0 |
Fair Value | Level 1 | Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 0 | 0 |
Fair Value | Level 1 | Held by consolidated trusts | ||
Financial Liabilities | ||
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Securities purchased under agreements to resell | 105,393 | 99,286 |
Investments in Securities [Abstract] | ||
Available-for-sale securities, at fair value | 4,212 | 5,640 |
Trading, at fair value | 5,760 | 5,983 |
Total investments in securities | 9,972 | 11,623 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 9,276 | 9,032 |
Mortgage Loans held-for-investment, net | 2,466,127 | 2,348,858 |
Total mortgage loans, net | 2,475,403 | 2,357,890 |
Guarantee assets | 0 | 0 |
Derivative Asset, Fair Value | 6,209 | 6,397 |
All Other Assets | 946 | 907 |
Other Assets | 7,155 | 7,304 |
Total Financial Assets | 2,597,923 | 2,476,103 |
Financial Liabilities | ||
Debt | 2,846,896 | 2,739,996 |
Guarantee obligation | 103 | 0 |
Derivative liabilities at fair value | 8,608 | 10,823 |
Other Liabilities | 465 | 1,025 |
Other liabilities, fair value | 9,176 | 11,848 |
Total Financial Liabilities | 2,856,072 | 2,751,844 |
Fair Value | Level 2 | Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 173,877 | 175,673 |
Fair Value | Level 2 | Held by consolidated trusts | ||
Financial Liabilities | ||
Debt | 2,673,019 | 2,564,323 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Investments in Securities [Abstract] | ||
Available-for-sale securities, at fair value | 678 | 894 |
Trading, at fair value | 2,771 | 2,731 |
Total investments in securities | 3,449 | 3,625 |
Mortgage Loans [Abstract] | ||
Mortgage loans held-for-sale | 3,868 | 3,461 |
Mortgage Loans held-for-investment, net | 254,877 | 273,044 |
Total mortgage loans, net | 258,745 | 276,505 |
Guarantee assets | 5,353 | 5,445 |
Derivative Asset, Fair Value | 2 | 2 |
All Other Assets | 1,165 | 835 |
Other Assets | 6,520 | 6,282 |
Total Financial Assets | 268,714 | 286,412 |
Financial Liabilities | ||
Debt | 4,118 | 3,863 |
Guarantee obligation | 6,023 | 6,016 |
Derivative liabilities at fair value | 63 | 97 |
Other Liabilities | 194 | 211 |
Other liabilities, fair value | 6,280 | 6,324 |
Total Financial Liabilities | 10,398 | 10,187 |
Fair Value | Level 3 | Held by Freddie Mac | ||
Financial Liabilities | ||
Debt | 3,391 | 3,162 |
Fair Value | Level 3 | Held by consolidated trusts | ||
Financial Liabilities | ||
Debt | $ 727 | $ 701 |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans Held For Sale, Fair Value | $ 7,356 | $ 3,218 |
Loans Held For Investment Fair Value Disclosure | 1,806 | 1,214 |
Other assets and other liabilities | 95 | 11 |
Held by Freddie Mac | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 6 | 11 |
Debt, Fair Value | 240 | 892 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 234 | 881 |
Held by consolidated trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | (94) | (177) |
Debt, Fair Value | 1,705 | 1,656 |
Long-Term Debt, Unpaid Principal Balance, with Fair Value Option Elected | 1,799 | 1,833 |
Interest-Only-Strip | Held by consolidated trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Debt, Fair Value | 500 | 500 |
Held-for-Sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 276 | (203) |
Loans, Unpaid Principal Balance, with Fair Value Option Elected | 7,080 | 3,421 |
Held-for-Investment | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | (289) | (154) |
Loans, Unpaid Principal Balance, with Fair Value Option Elected | $ 2,095 | $ 1,368 |
Fair Value Disclosures - Change
Fair Value Disclosures - Changes in Fair Value under the FVO option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
HFS loan purchase commitments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 207 | $ (362) | $ 1,271 |
Held-for-sale | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (59) | (987) | (407) |
Held-for-Investment | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (29) | (154) | 0 |
Long-term Debt | Held by Freddie Mac | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 30 | (30) | 50 |
Long-term Debt | Held by consolidated trusts | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ (6) | $ 458 | $ 17 |
Legal Contingencies (Details)
Legal Contingencies (Details) - USD ($) $ in Millions | Aug. 14, 2023 | Nov. 07, 2022 | Sep. 30, 2023 |
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 313 | ||
Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 832 | ||
Judicial Ruling [Member] | Junior Preferred Shareholder [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 282 | ||
Judicial Ruling [Member] | Common Shareholder [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 31 |
Regulatory Capital (Details)
Regulatory Capital (Details) | Dec. 31, 2023 Rate |
Compliance with Regulatory Capital Requirements - ERCF [Abstract] | |
Minimum stress capital buffer | 0.75% |
Stability capital buffer | 0.60% |
Countercyclical capital buffer | 0% |
Minimum tier 1 capital (leverage) ratio | 2.50% |
Minimum core capital (statutory) ratio | 2.50% |
Prescribed leverage buffer amount | 50% |
Regulatory Capital Table - ERCF
Regulatory Capital Table - ERCF Capital Requirements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Compliance with Regulatory Capital Requirements - ERCF [Abstract] | ||||
Adjusted total assets | $ 3,775,000 | $ 3,710,000 | ||
Risk-weighted assets (standardized approach) | 1,009,000 | 899,000 | ||
Minimum Capital Requirement [Member] | ||||
Risk-based capital amounts [Abstract] | ||||
Total capital (statutory) | 81,000 | 72,000 | ||
CET1 capital | 45,000 | 40,000 | ||
Tier 1 capital | 60,000 | 54,000 | ||
Adjusted total capital | 81,000 | $ 72,000 | ||
Risk-based capital ratios [Abstract] | ||||
Total capital (statutory) | 8% | 8% | 8% | |
CET1 capital | 4.50% | 4.50% | 4.50% | |
Tier 1 capital | 6% | 6% | 6% | |
Adjusted total capital | 8% | 8% | 8% | |
Leverage capital amounts: [Abstract] | ||||
Core capital (statutory) | 95,000 | $ 93,000 | ||
Tier 1 capital | 95,000 | $ 93,000 | ||
Leverage capital ratios [Abstract] | ||||
Core capital (statutory) | 2.50% | 2.50% | ||
Tier 1 capital | 2.50% | 2.50% | ||
Capital Requirement Including Buffer [Member] | ||||
Risk-based capital amounts [Abstract] | ||||
Total capital (statutory) | 81,000 | $ 72,000 | ||
CET1 capital | 96,000 | 90,000 | ||
Tier 1 capital | 111,000 | 104,000 | ||
Adjusted total capital | 132,000 | $ 122,000 | ||
Risk-based capital ratios [Abstract] | ||||
Total capital (statutory) | 8% | 8% | ||
CET1 capital | 9.50% | 10.10% | ||
Tier 1 capital | 11% | 11.60% | ||
Adjusted total capital | 13% | 13.60% | ||
Leverage capital amounts: [Abstract] | ||||
Core capital (statutory) | 95,000 | $ 93,000 | ||
Tier 1 capital | 106,000 | $ 104,000 | ||
Leverage capital ratios [Abstract] | ||||
Core capital (statutory) | 2.50% | 2.50% | ||
Tier 1 capital | 2.80% | 2.80% | ||
Available Capital (Deficit) [Member] | ||||
Risk-based capital amounts [Abstract] | ||||
Total capital (statutory) | (18,000) | $ (27,000) | ||
CET1 capital | (43,000) | (55,000) | ||
Tier 1 capital | (29,000) | (41,000) | ||
Adjusted total capital | (29,000) | $ (41,000) | ||
Risk-based capital ratios [Abstract] | ||||
Total capital (statutory) | (1.80%) | (3.10%) | ||
CET1 capital | (4.30%) | (6.20%) | ||
Tier 1 capital | (2.90%) | (4.60%) | ||
Adjusted total capital | (2.90%) | (4.60%) | ||
Leverage capital amounts: [Abstract] | ||||
Core capital (statutory) | (25,000) | $ (35,000) | ||
Tier 1 capital | $ (29,000) | $ (41,000) | ||
Leverage capital ratios [Abstract] | ||||
Core capital (statutory) | (0.70%) | (1.00%) | ||
Tier 1 capital | (0.80%) | (1.10%) |