Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-50231 | ||
Entity Tax Identification Number | 52-0883107 | ||
Entity Registrant Name | FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE | ||
Entity Central Index Key | 0000310522 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 1,158,087,567 | ||
Entity Public Float | $ 3.1 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Address, Address Line One | 1100 15th Street, NW | ||
City Area Code | 800 | ||
Local Phone Number | 232-6643 | ||
Entity Address, City or Town | Washington, | ||
Entity Address, State or Province | DC | ||
Entity Address, State or Province | 20005 | ||
Entity Incorporation, State or Country Code | X1 | ||
Entity Emerging Growth Company | false | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 21,184 | $ 25,557 |
Restricted cash (includes $33,294 and $17,849, respectively, related to consolidated trusts) | 40,223 | 23,866 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 13,578 | 32,938 |
Investments in securities: | ||
Trading, at fair value (includes $3,037 and $3,061, respectively, pledged as collateral) | 48,123 | 41,867 |
Available-for-sale, at fair value | 2,404 | 3,429 |
Total investments in securities | 50,527 | 45,296 |
Mortgage loans: | ||
Loans Receivable Held-for-sale, Amount | 6,773 | 7,701 |
Financing Receivable, before Allowance for Credit Loss (includes $7,825 and $8,922, respectively, at fair value) | 3,336,405 | 3,255,897 |
Allowance for loan losses | (9,016) | (14,203) |
Total loans held for investment, net of allowance | 3,327,389 | 3,241,694 |
Total mortgage loans | 3,334,162 | 3,249,395 |
Deferred tax assets, net | 11,910 | 13,188 |
Accrued interest receivable, net (includes $8,172 and $7,928, respectively, related to consolidated trusts) | 8,604 | 8,490 |
Acquired property, net | 2,366 | 2,584 |
Other assets | 20,765 | 17,004 |
Total assets | 3,503,319 | 3,418,318 |
Liabilities: | ||
Accrued interest payable (includes $9,361 and $9,133, respectively, related to consolidated trusts) | 10,228 | 10,211 |
Other liabilities (includes $376 and $356, respectively, related to consolidated trusts) | 11,097 | 9,947 |
Total liabilities | 3,488,711 | 3,412,078 |
Commitments and contingencies (Note 16) | 0 | 0 |
Fannie Mae stockholders’ equity: | ||
Senior preferred stock (liquidation preference of $131,178 and $123,836, respectively) | 120,836 | 120,836 |
Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding | 19,130 | 19,130 |
Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,087,567 shares outstanding | 687 | 687 |
Accumulated deficit | (118,776) | (127,335) |
Accumulated other comprehensive income | 131 | 322 |
Treasury stock, at cost, 150,675,136 shares | (7,400) | (7,400) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 14,608 | 6,240 |
Total liabilities and equity | 3,503,319 | 3,418,318 |
Fannie Mae [Member] | ||
Mortgage loans: | ||
Financing Receivable, before Allowance for Credit Loss (includes $7,825 and $8,922, respectively, at fair value) | 94,911 | 113,039 |
Liabilities: | ||
Debt (includes $5,687 and $6,826, respectively, of debt of Fannie Mae and $21,880 and $23,753, respectively, of debt of consolidated trusts, at fair value) | 182,247 | 232,074 |
Consolidated Trusts [Member] | ||
ASSETS | ||
Restricted cash (includes $33,294 and $17,849, respectively, related to consolidated trusts) | 33,294 | 17,849 |
Mortgage loans: | ||
Financing Receivable, before Allowance for Credit Loss (includes $7,825 and $8,922, respectively, at fair value) | 3,241,494 | 3,142,858 |
Accrued interest receivable, net (includes $8,172 and $7,928, respectively, related to consolidated trusts) | 8,172 | 7,928 |
Liabilities: | ||
Accrued interest payable (includes $9,361 and $9,133, respectively, related to consolidated trusts) | 9,361 | 9,133 |
Debt (includes $5,687 and $6,826, respectively, of debt of Fannie Mae and $21,880 and $23,753, respectively, of debt of consolidated trusts, at fair value) | 3,285,139 | 3,159,846 |
Other liabilities (includes $376 and $356, respectively, related to consolidated trusts) | $ 376 | $ 356 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Restricted cash (includes $33,294 and $17,849, respectively, related to consolidated trusts) | $ 40,223 | $ 23,866 |
Investments in securities: | ||
Available-for-sale, at fair value | 2,404 | 3,429 |
Mortgage loans: | ||
Loans held for investment, at amortized cost of consolidated trusts (includes $12,057 and $14,075, respectively, at fair value) | 7,825 | 8,922 |
Accrued interest receivable, net (includes $8,172 and $7,928, respectively, related to consolidated trusts) | 8,604 | 8,490 |
Liabilities: | ||
Accrued interest payable (includes $9,361 and $9,133, respectively, related to consolidated trusts) | 10,228 | 10,211 |
Other liabilities (includes $376 and $356, respectively, related to consolidated trusts) | $ 11,097 | $ 9,947 |
Fannie Mae stockholders’ equity: | ||
Senior preferred stock, 1,000,000 shares outstanding | 131,178 | 123,836 |
Preferred stock, 700,000,000 shares are authorized | 700,000,000 | 700,000,000 |
Preferred stock, 555,374,922 shares issued | 555,374,922 | 555,374,922 |
Preferred stock, 555,374,922 shares outstanding | 555,374,922 | 555,374,922 |
Common stock, no par value, no maximum authorization, 1,308,762,703 shares issued | 1,308,762,703 | 1,308,762,703 |
Common stock, no par value, no maximum authorization, 1,158,087,567 and 1,158,082,750 shares outstanding, respectively | 1,200,000,000 | 1,158,087,567 |
Treasury stock, at cost, 150,675,136 and 150,679,953 shares, respectively | 150,675,136 | 150,675,136 |
Security Owned and Pledged as Collateral, Fair Value | $ 0 | $ 0 |
Consolidated Trusts [Member] | ||
ASSETS | ||
Restricted cash (includes $33,294 and $17,849, respectively, related to consolidated trusts) | 33,294 | 17,849 |
Mortgage loans: | ||
Accrued interest receivable, net (includes $8,172 and $7,928, respectively, related to consolidated trusts) | 8,172 | 7,928 |
Liabilities: | ||
Accrued interest payable (includes $9,361 and $9,133, respectively, related to consolidated trusts) | 9,361 | 9,133 |
Debt at fair value | 21,880 | 23,753 |
Other liabilities (includes $376 and $356, respectively, related to consolidated trusts) | 376 | 356 |
Fannie Mae [Member] | ||
Liabilities: | ||
Debt at fair value | $ 5,687 | $ 6,826 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Trading securities | $ 1,627 | $ 1,336 | $ 706 |
Available-for-sale securities | 175 | 230 | 335 |
Mortgage loans | 116,764 | 114,605 | 108,319 |
Interest Income, Federal Funds Sold and Securities Purchased under Agreements to Resell | 843 | 742 | 373 |
Other | 163 | 136 | 123 |
Total interest income | 119,572 | 117,049 | 109,856 |
Interest expense: | |||
Short-term debt | (501) | (468) | (250) |
Long-term debt | (98,109) | (95,630) | (88,873) |
Total interest expense | (98,610) | (96,098) | (89,123) |
Net interest income | 20,962 | 20,951 | 20,733 |
Benefit for credit losses | 4,011 | 3,309 | 2,041 |
Net interest income after benefit for credit losses | 24,973 | 24,260 | 22,774 |
Non-interest Income: | |||
Investment gains, net | 1,770 | 952 | 1,522 |
Fair value losses, net | (2,214) | 1,121 | (1,211) |
Fee and other income | 1,176 | 979 | 2,227 |
Non-interest income | 732 | 3,052 | 2,538 |
Administrative expenses: | |||
Salaries and employee benefits | (1,486) | (1,451) | (1,328) |
Professional services | (967) | (1,032) | (933) |
Other administrative expenses | (570) | (576) | (476) |
Total administrative expenses | (3,023) | (3,059) | (2,737) |
Foreclosed property expense | (515) | (617) | (521) |
Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees | (2,432) | (2,284) | (2,096) |
Other expenses, net | (2,158) | (1,253) | (1,511) |
Total expenses | (8,128) | (7,213) | (6,865) |
Income before federal income taxes | 17,577 | 20,099 | 18,447 |
Provision for federal income taxes | (3,417) | (4,140) | (15,984) |
Total comprehensive income | |||
Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes | (179) | (344) | (206) |
Other, (net of taxes of $0, $0 and $3, respectively) | (12) | (4) | 0 |
Total other comprehensive loss | (191) | (348) | (206) |
Total comprehensive income attributable to Fannie Mae | 13,969 | 15,611 | 2,257 |
Net income attributable to Fannie Mae | 14,160 | 15,959 | 2,463 |
Dividends distributed or amounts attributable to senior preferred stock | (13,969) | (12,613) | (8,944) |
Net income (loss) attributable to common stockholders | $ 191 | $ 3,346 | $ (6,481) |
Earnings (loss) per share: Basic | $ 0.03 | $ 0.58 | $ (1.12) |
Earnings (loss) per share: Diluted | $ 0.03 | $ 0.57 | $ (1.12) |
Weighted Average Number of Shares Outstanding, Basic | 5,762 | 5,762 | 5,762 |
Weighted-average common shares outstanding: Diluted | 5,893 | 5,893 | 5,762 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage loans interest income | $ 116,764 | $ 114,605 | $ 108,319 |
Long-term debt interest expense | 98,109 | 95,630 | 88,873 |
Consolidated Trusts [Member] | |||
Mortgage loans interest income | 111,805 | 107,964 | 100,593 |
Long-term debt interest expense | $ 92,561 | $ 89,682 | $ 82,580 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows provided by (used in) operating activities: | |||
Net income | $ 14,160 | $ 15,959 | $ 2,463 |
Reconciliation of net income to net cash provided by operating activities: | |||
Amortization of cost basis adjustments | (6,002) | (5,949) | (6,641) |
Benefit for credit losses | (4,011) | (3,309) | (2,041) |
Valuation gains | (1,809) | (911) | (1,573) |
Current and deferred federal income taxes | 1,517 | 3,680 | 14,369 |
Net gains related to the disposition of acquired property and preforeclosure sales, including credit enhancements | (917) | (1,785) | (2,426) |
Other, net | (98) | 440 | (406) |
Net change in trading securities | (1,630) | (5,454) | 4,511 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | (5,964) | (423) | (4,043) |
Net cash provided by (used in) operating activities | (4,754) | 2,248 | 4,213 |
Cash flows provided by investing activities: | |||
Proceeds from maturities and paydowns of trading securities held for investment | 58 | 182 | 1,206 |
Proceeds from sales of trading securities held for investment | 49 | 96 | 241 |
Proceeds from maturities and paydowns of available-for-sale securities | 469 | 695 | 2,009 |
Proceeds from sales of available-for-sale securities | 537 | 760 | 1,990 |
Purchases of loans held for investment | (261,808) | (172,155) | (189,593) |
Advances to lenders | (141,395) | (108,294) | (123,687) |
Proceeds from disposition of acquired property and preforeclosure sales | 7,425 | 9,321 | 12,221 |
Net change in federal funds sold and securities purchased under agreements to resell or similar arrangements | 19,360 | (13,468) | 10,945 |
Other, net | (80) | 78 | 641 |
Net cash provided by investing activities | 207,052 | 150,853 | 184,408 |
Cash flows used in financing activities: | |||
Payments of cash dividends on senior preferred stock to Treasury | (5,601) | (9,372) | (12,015) |
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | 3,687 | 0 |
Other, net | 480 | 63 | 6 |
Net cash used in financing activities | (190,314) | (163,938) | (190,538) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,984 | (10,837) | (1,917) |
Cash, cash equivalents and restricted cash at beginning of period | 49,423 | 60,260 | 62,177 |
Cash, cash equivalents and restricted cash at end of period | 61,407 | 49,423 | 60,260 |
Cash paid during the period for: | |||
Interest | 121,542 | 110,415 | 109,480 |
Income taxes | 1,900 | 460 | 3,090 |
Non-cash activities: | |||
Net mortgage loans acquired by assuming debt | 273,174 | 231,478 | 258,312 |
Net transfers from mortgage loans of Fannie Mae to mortgage loans of consolidated trusts | 248,463 | 185,310 | 193,809 |
Transfers from advances to lenders to loans held for investment of consolidated trusts | 128,272 | 102,865 | 118,282 |
Net transfers from mortgage loans to acquired property | 6,681 | 8,131 | 10,262 |
Fannie Mae [Member] | |||
Cash flows provided by investing activities: | |||
Proceeds from repayments of loans acquired as held for investment | 12,508 | 15,082 | 22,557 |
Proceeds from sales of loans acquired as held for investment | 17,794 | 17,511 | 10,241 |
Cash flows used in financing activities: | |||
Proceeds from the issuance of debt | 789,572 | 789,355 | 1,034,742 |
Payments to redeem debt | (834,294) | (834,366) | (1,082,427) |
Consolidated Trusts [Member] | |||
Cash flows provided by investing activities: | |||
Proceeds from repayments of loans acquired as held for investment | 552,135 | 401,045 | 435,637 |
Cash flows used in financing activities: | |||
Proceeds from the issuance of debt | 435,235 | 357,846 | 383,793 |
Payments to redeem debt | $ (575,706) | $ (471,151) | $ (514,637) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Senior Preferred Stock | Preferred Stock | Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Income | Treasury Stock |
Balance (shares) at Dec. 31, 2016 | 1 | 556 | 1,158 | ||||
Balance at Dec. 31, 2016 | $ (6,071) | $ (117,149) | $ (19,130) | $ (687) | $ 124,253 | $ (759) | $ 7,401 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Senior preferred stock dividends paid per share | (12,015) | (12,015) | |||||
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | ||||||
Comprehensive income: | |||||||
Net income | 2,463 | 2,463 | |||||
Other comprehensive income, net of tax effect: | |||||||
Changes in net unrealized gains on available-for-sale securities (net of taxes of $28, $21 and $0, respectively) | 53 | 53 | |||||
Reclassification adjustment for gains included in net income (net of taxes of $139, $70 and $48, respectively) | (259) | (259) | |||||
Other, (net of taxes of $0, $0 and $3, respectively) | 0 | ||||||
Other | 1 | 1 | |||||
Total comprehensive income | 2,257 | ||||||
Balance at Dec. 31, 2017 | 3,686 | $ (117,149) | $ (19,130) | $ (687) | 133,805 | (553) | 7,400 |
Balance (shares) at Dec. 31, 2017 | 1 | 556 | 1,158 | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Senior preferred stock dividends paid per share | (9,372) | (9,372) | |||||
Proceeds from senior preferred stock purchase agreement with Treasury | 3,687 | $ 3,687 | |||||
Comprehensive income: | |||||||
Net income | 15,959 | 15,959 | |||||
Other comprehensive income, net of tax effect: | |||||||
Changes in net unrealized gains on available-for-sale securities (net of taxes of $28, $21 and $0, respectively) | (79) | (79) | |||||
Reclassification adjustment for gains included in net income (net of taxes of $139, $70 and $48, respectively) | (265) | (265) | |||||
Other, (net of taxes of $0, $0 and $3, respectively) | (4) | (4) | |||||
Total comprehensive income | 15,611 | ||||||
Reclassification related to Tax Cuts and Jobs Act | (117) | 117 | |||||
Balance at Dec. 31, 2018 | (6,240) | $ (120,836) | $ (19,130) | $ (687) | 127,335 | (322) | 7,400 |
Balance (shares) at Dec. 31, 2018 | 1 | 556 | 1,158 | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Senior preferred stock dividends paid per share | (5,601) | (5,601) | |||||
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | ||||||
Comprehensive income: | |||||||
Net income | 14,160 | 14,160 | |||||
Other comprehensive income, net of tax effect: | |||||||
Reclassification adjustment for gains included in net income (net of taxes of $139, $70 and $48, respectively) | 1 | 1 | |||||
Prior service cost and actuarial gains, net of amortization for defined benefit plans (net of tax) | (180) | (180) | |||||
Other, (net of taxes of $0, $0 and $3, respectively) | (12) | (12) | |||||
Total comprehensive income | 13,969 | ||||||
Balance at Dec. 31, 2019 | $ (14,608) | $ (120,836) | $ (19,130) | $ (687) | $ 118,776 | $ (131) | $ 7,400 |
Balance (shares) at Dec. 31, 2019 | 1 | 556 | 1,158 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Deficit) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Changes in net unrealized gains on available-for-sale securities, net of tax | $ 0 | $ 21,000,000 | $ 28,000,000 |
Reclassification adjustment for gains included in net loss, net of tax | 48,000,000 | 70,000,000 | 139,000,000 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | $ 3 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The calculation of diluted EPS includes all the components of basic earnings per share, plus the dilutive effect of common stock equivalents such as convertible securities and stock options. Weighted-average shares outstanding is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is presented for basic and diluted EPS. We compute basic EPS by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. However, as a result of our conservatorship status and the terms of the senior preferred stock, no amounts would be available to distribute as dividends to common or preferred stockholders (other than to Treasury as the holder of the senior preferred stock). Net income (loss) attributable to common stockholders excludes amounts attributable to the senior preferred stock, which increase the liquidation preference as described above in “ Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization We are a stockholder-owned corporation organized and existing under the Federal National Mortgage Association Charter Act (the “Charter Act” or our “charter”). We are a government-sponsored enterprise (“GSE”), and we are subject to government oversight and regulation. Our regulators include the Federal Housing Finance Agency (“FHFA”), the U.S. Department of Housing and Urban Development (“HUD”), the U.S. Securities and Exchange Commission (“SEC”), and the U.S. Department of the Treasury (“Treasury”). The U.S. government does not guarantee our securities or other obligations. We operate in the secondary mortgage market, primarily working with lenders. We do not originate loans or lend money directly to consumers in the primary mortgage market. Instead, we securitize mortgage loans originated by lenders into Fannie Mae mortgage-backed securities (“MBS”) that we guarantee; purchase mortgage loans and mortgage-related securities, primarily for securitization and sale at a later date; manage mortgage credit risk; and engage in other activities that increase the supply of affordable housing. We have two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to loans secured by properties containing five or more residential units. We describe the management reporting and allocation process used to generate our segment results in “ Note 10, Segment Reporting .” Conservatorship On September 7, 2008, the Secretary of the Treasury and the Director of FHFA announced several actions taken by Treasury and FHFA regarding Fannie Mae, which included: (1) placing us in conservatorship and (2) the execution of a senior preferred stock purchase agreement by our conservator, on our behalf, and Treasury, pursuant to which we issued to Treasury both senior preferred stock and a warrant to purchase common stock. Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended, including by the Federal Housing Finance Regulatory Reform Act of 2008 (together, the “GSE Act”), the conservator immediately succeeded to (1) all rights, titles, powers and privileges of Fannie Mae, and of any stockholder, officer or director of Fannie Mae with respect to Fannie Mae and its assets, and (2) title to the books, records and assets of any other legal custodian of Fannie Mae. The conservator subsequently issued an order that provided for our Board of Directors to exercise specified authorities. The conservator also provided instructions regarding matters for which conservator decision or notification is required. The conservator retains the authority to amend or withdraw its order and instructions at any time. The conservator has the power to transfer or sell any asset or liability of Fannie Mae (subject to limitations and post-transfer notice provisions for transfers of qualified financial contracts) without any approval, assignment of rights or consent of any party. However, mortgage loans and mortgage-related assets that have been transferred to a Fannie Mae MBS trust must be held by the conservator for the beneficial owners of the Fannie Mae MBS and cannot be used to satisfy the general creditors of Fannie Mae. Neither the conservatorship nor the terms of our agreements with Treasury change our obligation to make required payments on our debt securities or perform under our mortgage guaranty obligations. On September 5, 2019, Treasury released a plan to reform the housing finance system. The Treasury Housing Reform Plan (the “Treasury plan”) is far-reaching in scope and could have a significant impact on our structure, our role in the secondary mortgage market, our capitalization, our business and our competitive environment. The Treasury plan includes recommendations relating to ending our conservatorship, amending our senior preferred stock purchase agreement with Treasury, considering additional restrictions and requirements on our business, and many other matters. The Treasury plan recommends that Treasury’s commitment to provide funding under the senior preferred stock purchase agreement should be replaced with legislation that authorizes an explicit, paid-for guarantee backed by the full faith and credit of the Federal Government that is limited to the timely payment of principal and interest on qualifying MBS. The Treasury plan further recommends that, pending legislation, even after conservatorship Treasury should maintain its ongoing commitment to support our single-family and multifamily mortgage-backed securities through the senior preferred stock purchase agreement, as amended as contemplated by the plan. The conservatorship has no specified termination date and there continues to be significant uncertainty regarding our future, including how long we will continue to exist in our current form, the extent of our role in the market, the level of government support of our business, how long we will be in conservatorship, what form we will have and what ownership interest, if any, our current common and preferred stockholders will hold in us after the conservatorship is terminated and whether we will continue to exist following conservatorship. Under the GSE Act, FHFA must place us into receivership if the Director of FHFA makes a written determination that our assets are less than our obligations or if we have not been paying our debts, in either case, for a period of 60 days. In addition, the Director of FHFA may place us into receivership at his discretion at any time for other reasons set forth in the GSE Act, including if we are critically undercapitalized or if we are undercapitalized and have no reasonable prospect of becoming adequately capitalized. Should we be placed into receivership, different assumptions would be required to determine the carrying value of our assets, which could lead to substantially different financial results. Treasury has made a commitment under the senior preferred stock purchase agreement to provide funding to us under certain circumstances if we have a net worth deficit. We are not aware of any plans of FHFA (1) to fundamentally change our business model, other than changes that might result from recommendations in the Treasury plan, if implemented, or (2) to reduce the aggregate amount available to or held by the company under our capital structure, which includes the senior preferred stock purchase agreement. Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant Senior Preferred Stock Purchase Agreement Under our senior preferred stock purchase agreement with Treasury, in September 2008 we issued Treasury one million shares of senior preferred stock and a warrant to purchase shares of our common stock. The senior preferred stock purchase agreement was amended and restated on September 26, 2008 and was subsequently amended three times: in May 2009, December 2009 and August 2012. The dividend and liquidation preference provisions of the senior preferred stock were also amended in December 2017 and in September 2019 pursuant to letter agreements between us, through FHFA in its capacity as conservator, and Treasury. Senior Preferred Stock The modifications and other specified provisions of the September 2019 letter agreement are described below. • Modification to Dividend Provisions — Increase in Applicable Capital Reserve Amount. The terms of the senior preferred stock provide for dividends each quarter in the amount, if any, by which our net worth as of the end of the immediately preceding fiscal quarter exceeds the applicable capital reserve amount. The September 2019 letter agreement modified the dividend provisions of the senior preferred stock to increase the applicable capital reserve amount from $3 billion to $25 billion , effective for dividend periods beginning July 1, 2019. As a result of this change to the senior preferred stock dividend provisions, no dividends will be payable on the senior preferred stock for the first quarter of 2020 , as our net worth of $14.6 billion as of December 31, 2019 is lower than the $25 billion capital reserve amount. • Modification to Liquidation Preference Provisions — Increase in Liquidation Preference. The September 2019 letter agreement provides that, on September 30, 2019, and at the end of each fiscal quarter thereafter, the liquidation preference of the senior preferred stock will increase by an amount equal to the increase in our net worth, if any, during the immediately prior fiscal quarter, until such time as the liquidation preference has increased by $22 billion pursuant to this provision. As a result of this change to the senior preferred stock liquidation preference provisions, the aggregate liquidation preference of the senior preferred stock will increase from $131.2 billion as of December 31, 2019 to $135.4 billion as of March 31, 2020 , due to the increase in our net worth during the fourth quarter of 2019 . • Agreement to Amend Senior Preferred Stock Purchase Agreement to Enhance Taxpayer Protections. The September 2019 letter agreement provides that we and Treasury agree to negotiate and execute an additional amendment to the senior preferred stock purchase agreement that further enhances taxpayer protections by adopting covenants broadly consistent with recommendations for administrative reform contained in the Treasury plan. See “ Note 11, Equity ” for additional information about the senior preferred stock purchase agreement, including Treasury’s funding commitment under the agreement. Warrant On September 7, 2008, we issued to Treasury a warrant to purchase, at a nominal price, shares of our common stock equal to 79.9% of the total common stock outstanding on a fully diluted basis on the date the warrant is exercised. The warrant may be exercised, in whole or in part, at any time on or before September 7, 2028. We recorded the warrant at fair value in our stockholders’ equity as a component of additional paid-in-capital. The fair value of the warrant was calculated using the Black-Scholes Option Pricing Model. Since the warrant has an exercise price of $0.00001 per share, the model is insensitive to the risk-free rate and volatility assumptions used in the calculation and the share value of the warrant is equal to the price of the underlying common stock. We estimated that the fair value of the warrant at issuance was $3.5 billion based on the price of our common stock on September 8, 2008, which was after the dilutive effect of the warrant had been reflected in the market price. Subsequent changes in the fair value of the warrant are not recognized in our financial statements. If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheets. Because the warrant’s exercise price per share is considered non-substantive (compared to the market price of our common stock), the warrant was determined to have characteristics of non-voting common stock, and thus is included in the computation of basic and diluted earnings (loss) per share. The weighted-average shares of common stock outstanding for 2019 , 2018 and 2017 included shares of common stock that would be issuable upon full exercise of the warrant issued to Treasury. Impact of U.S. Government Support We continue to rely on support from Treasury to eliminate any net worth deficits we may experience in the future, which would otherwise trigger our being placed into receivership. Based on consideration of all the relevant conditions and events affecting our operations, including our reliance on the U.S. government, we continue to operate as a going concern and in accordance with FHFA’s provision of authority. In addition to MBS issuances, we fund our business through the issuance of short-term and long-term debt securities in the domestic and international capital markets. Accordingly, we are subject to “roll over,” or refinancing, risk on our outstanding debt. Our ability to issue long-term debt has been strong primarily due to actions taken by the federal government to support our business and our debt securities. Related Parties Because Treasury holds a warrant to purchase shares of Fannie Mae common stock equal to 79.9% of the total number of shares of Fannie Mae common stock, we and Treasury are deemed related parties. As of December 31, 2019 , Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $131.2 billion . See “Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant” above for additional information on transactions under this agreement. FHFA’s control of both Fannie Mae and Freddie Mac has caused Fannie Mae, FHFA and Freddie Mac to be deemed related parties. Additionally, Fannie Mae and Freddie Mac jointly own Common Securitization Solutions, LLC (“CSS”), a limited liability company created to operate a common securitization platform; as such, CSS is deemed a related party. As a part of our joint ownership, Fannie Mae, Freddie Mac and CSS are parties to a limited liability company agreement that sets forth the overall framework for the joint venture, including Fannie Mae’s and Freddie Mac’s rights and responsibilities as members of CSS. Fannie Mae, Freddie Mac and CSS are also parties to a customer services agreement that sets forth the terms under which CSS provides mortgage securitization services to us and Freddie Mac, including the operation of the common securitization platform as well as an administrative services agreement. CSS operates as a separate company from us and Freddie Mac, with all funding and limited administrative support services and other resources provided to it by us and Freddie Mac through our capital contributions. In the ordinary course of business, Fannie Mae may purchase and sell securities issued by Treasury and Freddie Mac. These transactions occur on the same terms as those prevailing at the time for comparable transactions with unrelated parties. With our implementation of the Single Security Initiative in June 2019, some of the structured securities we issue are backed in whole or in part by Freddie Mac securities. Additionally, we make regular income tax payments to and receive tax refunds from the Internal Revenue Service (“IRS”), a bureau of Treasury. Transactions with Treasury Our administrative expenses were reduced by $20 million , $24 million and $40 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, due to reimbursements from Treasury and Freddie Mac for expenses incurred as program administrator for Treasury’s Home Affordable Modification Program (“HAMP”) and other initiatives under Treasury’s Making Home Affordable Program. In December 2011, Congress enacted the Temporary Payroll Cut Continuation Act of 2011 (“TCCA”) which, among other provisions, required that we increase our single-family guaranty fees by at least 10 basis points and remit this increase to Treasury. Effective April 1, 2012, we increased the guaranty fee on all single-family residential mortgages delivered to us by 10 basis points. FHFA and Treasury advised us to remit this fee increase to Treasury with respect to all loans acquired by us on or after April 1, 2012 and before January 1, 2022, and to continue to remit these amounts to Treasury on and after January 1, 2022 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated. The resulting fee revenue and expense are recorded in “Mortgage loans interest income” and “TCCA fees,” respectively, in our consolidated statements of operations and comprehensive income. We recognized $2.4 billion , $2.3 billion and $2.1 billion in TCCA fees during the years ended December 31, 2019 , 2018 and 2017 , respectively, of which $626 million and $586 million had not been remitted as of December 31, 2019 and 2018 , respectively. The GSE Act requires us to set aside certain funding obligations, a portion of which is attributable to Treasury’s Capital Magnet Fund. In December 2014, FHFA directed us to set aside amounts for these contributions during each fiscal year, except for any fiscal year for which a draw from Treasury was made under the terms of the senior preferred stock purchase agreement or in which such allocation or transfer would cause such a draw. These funding obligations, recognized in “Other expenses, net” in our consolidated statements of operations and comprehensive income, were measured as the product of 4.2 basis points and the unpaid principal balance of our total new business purchases for the respective period, with 35% of this amount payable to Treasury’s Capital Magnet Fund. We recognized $98 million , $75 million and $84 million in “Other expenses, net” in connection with Treasury’s Capital Magnet Fund for the years ended December 31, 2019 , 2018 and 2017 , respectively. We paid $75 million and $84 million to Treasury’s Capital Magnet Fund in 2019 and 2018 , respectively. In 2020, we expect to pay $98 million to Treasury’s Capital Magnet Fund based on our new business purchases in 2019 . On September 27, 2019, we, through FHFA acting on our behalf in its capacity as our conservator, and Treasury entered into a letter agreement modifying the dividend and liquidation preference provisions of the senior preferred stock held by Treasury. These modifications and other specified provisions of the letter agreement are described under “Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant” above. Transactions with FHFA The GSE Act authorizes FHFA to establish an annual assessment for regulated entities, including Fannie Mae, which is payable on a semi-annual basis (April and October), for FHFA’s costs and expenses, as well as to maintain FHFA’s working capital. We recognized FHFA assessment fees, which are recorded in “Administrative expenses” in our consolidated statements of operations and comprehensive income, of $121 million , $110 million and $112 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Transactions with CSS and Freddie Mac We contributed capital to CSS, the company we jointly own with Freddie Mac, of $105 million , $135 million and $102 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. New Accounting Guidance The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments in June 2016, which was later amended by ASU 2019-04, ASU 2019-05 and ASU 2019-11. These ASUs (the “CECL standard”) replace the existing incurred loss impairment methodology for loans that are collectively evaluated for impairment with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable forecast information to develop a lifetime credit loss estimate. The CECL standard also requires credit losses related to AFS debt securities to be recorded through an allowance for credit losses. Our adoption of this standard on January 1, 2020 did not have a material impact on our portfolio of AFS debt securities. The CECL standard became effective for our fiscal year beginning January 1, 2020. We have changed our accounting policies and implemented system, model and process changes to adopt the standard. Upon adoption, we used a discounted cash flow method to measure expected credit losses on our single-family mortgage loans and an undiscounted loss method to measure expected credit losses on our multifamily mortgage loans. The models used to estimate credit losses incorporated our historical credit loss experience, adjusted for current economic forecasts and the current credit profile of our loan book of business. The models used reasonable and supportable forecasts for key economic drivers, such as home prices (single-family), rental income (multifamily) and capitalization rates (multifamily). The adoption of the CECL standard on January 1, 2020 will reduce our retained earnings by $1.1 billion on an after-tax basis, which will be reflected in our financial statements for the quarter ending March 31, 2020. The adoption of this guidance increased our overall credit loss reserves primarily as the result of an increase in our single-family loan loss reserves that were previously evaluated on a collective basis for impairment. This increase was partially offset by a decrease in estimated credit losses on loans that were previously considered individually impaired (our troubled debt restructurings). The increase in our single-family loan loss reserves that were previously evaluated on a collective basis was primarily driven by the migration from an incurred-loss approach, which allowed us to consider only default events and economic conditions that already existed as of each financial reporting date, to an estimate that incorporates both expected default events over the expected life of each mortgage loan and a forecast of home prices in different economic environments over a reasonable and supportable period. The increase in loss reserves for this portion of our book was low relative to its size due to the credit quality of these loans and because our current model forecasts home price growth. The allowance for loan losses on the TDR book was already measured using an expected lifetime credit loss estimate. The expected credit losses on this portion of our single-family book decreased upon the adoption of CECL because the new guidance required us to exclude from our estimate of credit losses all pre-foreclosure and post-foreclosure costs that are expected to be advanced after the balance sheet date. Prior to the adoption of CECL, we incorporated these costs in our estimate of expected credit losses for this book. |
Consolidations and Transfers of
Consolidations and Transfers of Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
Consolidations and Transfers of Financial Assets [Abstract] | |
Consolidations and Transfers of Financial Assets | Consolidations and Transfers of Financial Assets We have interests in various entities that are considered to be VIEs. The primary types of entities are: • securitization and resecuritization trusts, guaranteed by us via lender swap transactions; • portfolio securitization transactions; • commingled resecuritization trusts; • mortgage-backed trusts that were not created by us; • housing partnerships that are established to finance the acquisition, construction, development or rehabilitation of affordable multifamily and single-family housing; and • certain credit risk transfer transactions. These interests include investments in securities issued by VIEs, such as Fannie Mae MBS created pursuant to our securitization transactions. We consolidate the substantial majority of our single-class securitization trusts because our role as guarantor and master servicer provides us with the power to direct matters (primarily the servicing of mortgage loans) that impact the credit risk to which we are exposed. In contrast, we do not consolidate single-class securitization trusts when other organizations have the power to direct these activities unless we have the unilateral ability to dissolve the trust. We also do not consolidate our resecuritization trusts unless we have the unilateral ability to dissolve the trust. Historically, the vast majority of underlying assets of our resecuritization trusts were limited to Fannie Mae securities that were collateralized by mortgage loans held in consolidated trusts. However, with our issuance of UMBS beginning in June 2019, we include securities issued by Freddie Mac in some of our resecuritization trusts. The mortgage loans that serve as collateral for Freddie Mac-issued securities are not held in trusts that are consolidated by Fannie Mae. Types of VIEs Securitization and Resecuritization Trusts Under our lender swap and portfolio securitization transactions, mortgage loans are transferred to a trust specifically for the purpose of issuing a single class of guaranteed securities that are collateralized by the underlying mortgage loans referred to as “first-level securities.” The trust’s permitted activities include receiving the transferred assets, issuing beneficial interests, establishing the guaranty and servicing the underlying mortgage loans. In our capacity as issuer, master servicer, trustee and guarantor, we earn fees for our obligations to each trust. Additionally, we may retain or purchase a portion of the securities issued by each trust. In our structured securitization transactions, we earn fees for assisting lenders and dealers with the design and issuance of structured mortgage-related securities, referred to as “second-level securities.” In contrast to first-level securities, the trust assets can include both Fannie Mae securities and Freddie Mac securities as the underlying collateral. These structured securities include Fannie Megas ® and Supers TM , which are single-class resecuritizations, as well as REMICs and SMBS, which are multi-class resecuritizations, and separate the cash flows from underlying assets into separately tradable interests. When we issue a structured security backed in whole or in part by Freddie Mac securities, we provide a new and separate guaranty of principal and interest on the newly-formed structured security. If Freddie Mac were to fail to make a payment due on its securities underlying a Fannie Mae-issued structured security, we would be obligated under our guaranty to fund any shortfall. To the extent that the trust assets are Fannie Mae securities, the trust has permitted activities that are similar to those for our lender swap and portfolio securitization transactions. Additionally, we may retain or purchase a portion of the securities issued by each trust. We also hold investments in mortgage-backed securities that have been issued via private-label trusts. These trusts are structured to provide investors with a beneficial interest in a pool of receivables or other financial assets, typically mortgage loans. The trusts act as vehicles to allow loan originators to securitize assets. Securities are structured from the underlying pool of assets to provide for varying degrees of risk. The originators of the financial assets or the underwriters of the transaction create the trusts and typically own the residual interest in the trusts’ assets. Our involvement in these entities is typically limited to our recorded investment in the beneficial interests that we have purchased. Limited Partnerships In 2018, we resumed making new investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to increase the supply of affordable housing in the United States and to serve communities in need. In addition, our investments in LIHTC partnerships generate both tax credits and net operating losses that may reduce our federal income tax liability. Our LIHTC investments primarily represent limited partnership interests in entities that have been organized by a fund manager who acts as the general partner. These fund investments seek out equity investments in LIHTC operating partnerships that have been established to identify, develop and operate multifamily housing that is leased to qualifying residential tenants. SPVs Associated with Our Credit Risk Transfer Programs We transfer mortgage credit risk to investors through Connecticut Avenue Securities (“CAS”) REMIC and CAS credit-linked note (“CLN”) trusts. In October 2019, we issued our first Multifamily Connecticut Avenue Securities (“MCAS”) transaction, which is a CAS CLN and in December 2019, we issued our first single-family CAS CLN. The structure of CAS CLNs is similar to CAS REMICs; however, CAS CLNs allow us to transfer risk on reference pools containing seasoned loans. Since the REMIC election was not made on the loans in the reference pools at the time of acquisition, these trusts do not qualify as REMICs. Each CAS trust is a separate legal entity which issues notes that are fully collateralized by amounts deposited into a collateral account held by the CAS trust. To the extent that collateral held by the CAS trust and the earnings thereon are insufficient relative to the payments due to holders of the CAS notes, we may be required to make payments to the CAS trust. The CAS trusts qualify as VIEs. We do not have the power to direct significant activities of the CAS trusts while the CAS notes are outstanding, and, therefore, we do not consolidate CAS trusts. Consolidated VIEs If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities and noncontrolling interests of the VIE in its consolidated financial statements. An enterprise is deemed to be the primary beneficiary when the enterprise has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and exposure to benefits and/or losses could potentially be significant to the entity. In general, the investors in the obligations of consolidated VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide a guaranty to the VIE. We continually assess whether we are the primary beneficiary of the VIEs with which we are involved and therefore may consolidate or deconsolidate a VIE through the duration of our involvement. As of December 31, 2019 , we did not consolidate any VIEs that were not already consolidated as of December 31, 2018 . However, as of December 31, 2019 , we deconsolidated certain VIEs that were consolidated and had combined total assets of $1.5 billion in unpaid principal balance as of December 31, 2018 . The majority of this activity related to the deconsolidation of multi-class resecuritization trusts containing consolidated Fannie Mae MBS. This resulted in the recognition of MBS debt outstanding and the fair value of our retained interests as securities in our consolidated balance sheets. Unconsolidated VIEs We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include securitization and resecuritization trusts, limited partnerships, and certain SPVs designed to transfer credit risk. The following table displays the carrying amount and classification of our assets and liabilities that relate to our involvement with unconsolidated securitization and resecuritization trusts. As of December 31, 2019 2018 (Dollars in millions) Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts: Assets: Trading securities: Fannie Mae $ 2,543 $ 1,422 Non-Fannie Mae 5,100 4,809 Total trading securities 7,643 6,231 Available-for-sale securities: Fannie Mae 1,524 1,704 Non-Fannie Mae 574 1,207 Total available-for-sale securities 2,098 2,911 Other assets 56 66 Other liabilities (78 ) (101 ) Net carrying amount $ 9,719 $ 9,107 Our maximum exposure to loss generally represents the greater of our recorded investment in the entity or the unpaid principal balance of the assets covered by our guaranty. Our involvement in unconsolidated resecuritization trusts may give rise to additional exposure to loss depending on the type of resecuritization trust. Fannie Mae non-commingled resecuritization trusts are backed entirely by Fannie Mae MBS. These non-commingled single-class and multi-class resecuritization trusts are not consolidated and do not give rise to any additional exposure to loss as we already consolidate the underlying collateral. Fannie Mae commingled resecuritization trusts are backed in whole or in part by Freddie Mac securities. The guaranty that we provide to these commingled resecuritization trusts may increase our exposure to loss to the extent that we are providing a guaranty for the timely payment and interest on the underlying Freddie Mac securities that we have not previously guaranteed. Our maximum exposure to loss for these unconsolidated trusts is measured by the amount of Freddie Mac securities that are held in these resecuritization trusts. However, a portion of these Freddie Mac securities may be backed in whole or in part by Fannie Mae MBS. To the extent that these Freddie Mac securities are backed by Fannie Mae MBS, our guarantee to the resecuritization trust does not subject us to any additional exposure to credit risk. Thus, our actual exposure to credit risk from Freddie Mac securities held in our resecuritization trusts is likely lower than the disclosed maximum exposure to loss. Our maximum exposure to loss related to unconsolidated securitization and resecuritization trusts was approximately $62 billion and $14 billion as of December 31, 2019 and 2018 , respectively. The total assets of our unconsolidated securitization and resecuritization trusts were approximately $130 billion and $80 billion as of December 31, 2019 and 2018 , respectively. The maximum exposure to loss for our unconsolidated limited partnerships and similar legal entities, which consist of LIHTC, community investments and other entities, was $98 million and the related carrying value was $79 million as of December 31, 2019 . As of December 31, 2018 , the maximum exposure to loss was $111 million and the related carrying value was $89 million . The total assets of these limited partnership investments were $2.0 billion and $2.3 billion as of December 31, 2019 and 2018 , respectively. The maximum exposure to loss related to our involvement with unconsolidated SPVs that transfer credit risk represents the unpaid principal balance and accrued interest payable of obligations issued by the CAS SPVs. The maximum exposure to loss related to these unconsolidated SPVs was $9.5 billion and $920 million as of December 31, 2019 and 2018 , respectively. The total assets related to these unconsolidated SPVs were $9.5 billion and $931 million as of December 31, 2019 and 2018 , respectively. The unpaid principal balance of our multifamily loan portfolio wa s $327.6 billion as of December 31, 2019 . As our lending relationship does not provide us with a controlling financial interest in the borrower entity, we do not consolidate these borrowers regardless of their status as either a VIE or a voting interest entity. We have excluded these entities from our VIE disclosures. However, the disclosures we have provided in “ Note 3, Mortgage Loans ,” “ Note 4, Allowance for Loan Losses ” and “ Note 6, Financial Guarantees ” with respect to this population are consistent with the FASB’s stated objectives for the disclosures related to unconsolidated VIEs. Transfers of Financial Assets We issue Fannie Mae MBS through portfolio securitization transactions by transferring pools of mortgage loans or mortgage-related securities to one or more trusts or special purpose entities. We are considered to be the transferor when we transfer assets from our own retained mortgage portfolio in a portfolio securitization transaction. For the years ended December 31, 2019 , 2018 and 2017 , the unpaid principal balance of portfolio securitizations was $278.6 billion , $228.4 billion and $252.7 billion , respectively. The substantial majority of these portfolio securitization transactions generally do not qualify for sale treatment. Portfolio securitization trusts that do qualify for sale treatment primarily consist of loans that are guaranteed or insured, in whole or in part, by the U.S. government. We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class and multi-class portfolio securitization trusts. As of December 31, 2019 , the unpaid principal balance of retained interests was $2.9 billion and its related fair value was $4.0 billion . The unpaid principal balance of retained interests was $1.5 billion and its related fair value was $2.2 billion as of December 31, 2018 . For the years ended December 31, 2019 , 2018 and 2017 , the principal, interest and other fees received on retained interests was $595 million , $585 million and $1.1 billion , respectively. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans | Mortgage Loans We own single-family mortgage loans, which are secured by four or fewer residential dwelling units, and multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these loans as either HFI or HFS. We report the carrying value of HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and an allowance for loan losses. We report the carrying value of HFS loans at the lower of cost or fair value and record valuation changes in “Investment gains, net” in our consolidated statements of operations and comprehensive income. We define the recorded investment of HFI loans as unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and accrued interest receivable. For purposes of the single-family mortgage loan disclosures below, we define “primary” class as mortgage loans that are not included in other loan classes; “government” class as mortgage loans that are guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, and that are not Alt-A; and “other” class as loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A. The following table displays the carrying value of our mortgage loans. As of December 31, 2019 2018 (Dollars in millions) Single-family $ 2,972,361 $ 2,929,925 Multifamily 327,593 293,858 Total unpaid principal balance of mortgage loans 3,299,954 3,223,783 Cost basis and fair value adjustments, net 43,224 39,815 Allowance for loan losses for HFI loans (9,016 ) (14,203 ) Total mortgage loans $ 3,334,162 $ 3,249,395 The following table displays information about our redesignated mortgage loans. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Carrying value of loans redesignated from HFI to HFS (1) $ 17,126 $ 21,960 $ 12,886 Carrying value of loans redesignated from HFS to HFI (1) 28 56 113 Loans sold - unpaid principal balance 19,737 21,918 12,184 Realized gains on sale of mortgage loans 1,238 444 723 (1) Represents the carrying value of the loans after redesignation, excluding allowance. The recorded investment of single-family mortgage loans for which formal foreclosure proceedings are in process was $7.6 billion and $10.1 billion as of December 31, 2019 and 2018 , respectively. As a result of our various loss mitigation and foreclosure prevention efforts, we expect that a portion of the loans in the process of formal foreclosure proceedings will not ultimately foreclose. Aging Analysis The following tables display an aging analysis of the total recorded investment in our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option. As of December 31, 2019 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest Recorded Investment in Nonaccrual Loans (Dollars in millions) Single-family: Primary $ 28,909 $ 7,497 $ 13,695 $ 50,101 $ 2,886,520 $ 2,936,621 $ 29 $ 24,573 Government (2) 44 21 133 198 16,931 17,129 133 — Alt-A 1,721 602 1,290 3,613 38,642 42,255 1 2,198 Other 559 206 467 1,232 9,074 10,306 1 775 Total single-family 31,233 8,326 15,585 55,144 2,951,167 3,006,311 164 27,546 Multifamily (3) 7 N/A 115 122 330,496 330,618 — 435 Total $ 31,240 $ 8,326 $ 15,700 $ 55,266 $ 3,281,663 $ 3,336,929 $ 164 $ 27,981 As of December 31, 2018 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest Recorded Investment in Nonaccrual Loans (Dollars in millions) Single-family: Primary $ 30,471 $ 7,881 $ 14,866 $ 53,218 $ 2,816,047 $ 2,869,265 $ 22 $ 26,170 Government (2) 57 17 169 243 21,887 22,130 169 — Alt-A 2,332 821 1,844 4,997 48,274 53,271 2 3,082 Other 804 283 713 1,800 13,038 14,838 2 1,128 Total single-family 33,664 9,002 17,592 60,258 2,899,246 2,959,504 195 30,380 Multifamily (3) 56 N/A 171 227 295,437 295,664 — 492 Total $ 33,720 $ 9,002 $ 17,763 $ 60,485 $ 3,194,683 $ 3,255,168 $ 195 $ 30,872 (1) Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due. (2) Primarily consists of reverse mortgages, which due to their nature, are not aged and are included in the current column. (3) Multifamily loans 60 - 89 days delinquent are included in the seriously delinquent column. Credit Quality Indicators The following table displays the total recorded investment in our single-family HFI loans by class and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a strong predictor of credit performance. The likelihood of default and the gross severity of a loss in the event of default are typically lower as the LTV ratio decreases. As of December 31, 2019 (1) 2018 (1) Primary Alt-A Other Primary Alt-A Other (Dollars in millions) Estimated mark-to-market LTV ratio: (2) Less than or equal to 80% $ 2,556,685 $ 37,932 $ 9,002 $ 2,521,766 $ 45,476 $ 12,291 Greater than 80% and less than or equal to 90% 243,459 2,225 642 228,614 3,804 1,195 Greater than 90% and less than or equal to 100% 131,653 1,078 318 109,548 1,997 645 Greater than 100% 4,824 1,020 344 9,337 1,994 707 Total $ 2,936,621 $ 42,255 $ 10,306 $ 2,869,265 $ 53,271 $ 14,838 (1) Excludes the “government” class, which consists of $17.1 billion and $22.1 billion as of December 31, 2019 and 2018 , respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, that are not Alt-A loans. This class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV ratio. (2) The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan divided by the estimated current value of the property as of the end of each reported period, which we calculate using an internal valuation model that estimates periodic changes in home value. The following table displays the total recorded investment in our multifamily HFI loans by credit quality indicator, excluding loans for which we have elected the fair value option. As of December 31, 2019 2018 (Dollars in millions) Credit risk profile by internally assigned grade: Non-classified $ 323,773 $ 289,231 Classified (1) 6,845 6,433 Total $ 330,618 $ 295,664 (1) Represents loans classified as “Substandard” or “Doubtful.” Loans classified as “Substandard” have a well-defined weakness that jeopardizes the timely full repayment. Loans classified as “Doubtful” have a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions and values. As of December 31, 2019 , we had loans with recorded investment of $5 million classified as doubtful, compared with $1 million as of December 31, 2018 Individually Impaired Loans Individually impaired loans include TDRs, acquired credit-impaired loans and multifamily loans that we have assessed as probable that we will not collect all contractual amounts due, regardless of whether we are currently accruing interest, excluding loans classified as HFS and loans for which we have elected the fair value option. The following tables display the unpaid principal balance, total recorded investment, related allowance, average recorded investment and total interest income recognized for individually impaired loans. As of December 31, 2019 2018 Unpaid Principal Balance Total Recorded Investment Related Allowance for Loan Losses Unpaid Principal Balance Total Recorded Investment Related Allowance for Loan Losses (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: Primary $ 64,201 $ 62,150 $ (5,884 ) $ 81,791 $ 78,688 $ (9,406 ) Government 243 247 (48 ) 264 270 (55 ) Alt-A 11,453 10,535 (1,676 ) 16,576 15,158 (2,793 ) Other 3,485 3,296 (567 ) 5,482 5,169 (1,001 ) Total single-family 79,382 76,228 (8,175 ) 104,113 99,285 (13,255 ) Multifamily 314 315 (45 ) 197 196 (40 ) Total individually impaired loans with related allowance recorded 79,696 76,543 (8,220 ) 104,310 99,481 (13,295 ) With no related allowance recorded: (1) Single-family: Primary 19,047 18,249 — 15,939 15,191 — Government 64 60 — 61 56 — Alt-A 2,339 2,098 — 2,628 2,363 — Other 611 561 — 718 666 — Total single-family 22,061 20,968 — 19,346 18,276 — Multifamily 363 365 — 343 346 — Total individually impaired loans with no related allowance recorded 22,424 21,333 — 19,689 18,622 — Total individually impaired loans (2) $ 102,120 $ 97,876 $ (8,220 ) $ 123,999 $ 118,103 $ (13,295 ) (1) The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required. (2) Includes single-family loans restructured in a TDR with a recorded investment of $96.9 billion and $117.2 billion as of December 31, 2019 and 2018 , respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $102 million and $187 million as of December 31, 2019 and 2018 , respectively. For the Year Ended December 31, 2019 2018 2017 Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: Primary $ 71,048 $ 2,954 $ 264 $ 85,063 $ 3,522 $ 381 $ 92,893 $ 3,721 $ 319 Government 263 11 — 276 17 — 292 10 — Alt-A 12,685 540 38 18,202 772 57 23,536 929 56 Other 4,177 154 13 6,691 250 19 9,158 318 19 Total single-family 88,173 3,659 315 110,232 4,561 457 125,879 4,978 394 Multifamily 287 7 — 235 3 — 273 9 — Total individually impaired loans with related allowance recorded 88,460 3,666 315 110,467 4,564 457 126,152 4,987 394 With no related allowance recorded: (1) Single-family: Primary 16,243 1,008 150 15,005 967 119 15,166 1,107 96 Government 57 4 — 57 4 — 61 3 — Alt-A 2,176 169 15 2,625 218 17 3,000 270 13 Other 599 38 4 807 56 5 997 84 4 Total single-family 19,075 1,219 169 18,494 1,245 141 19,224 1,464 113 Multifamily 375 31 — 336 14 — 297 19 — Total individually impaired loans with no related allowance recorded 19,450 1,250 169 18,830 1,259 141 19,521 1,483 113 Total individually impaired loans $ 107,910 $ 4,916 $ 484 $ 129,297 $ 5,823 $ 598 $ 145,673 $ 6,470 $ 507 (1) The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required. Troubled Debt Restructurings A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. In addition to formal loan modifications, including loan modifications in a trial period, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify loans to certain borrowers who have received bankruptcy relief as TDRs. For discussion of how modifications are factored into the determination of the allowance for loans losses, see “ Note 1, Summary of Significant Accounting Policies .” The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. The average term extension of a single-family modified loan was 162 months, 109 months and 153 months for the years ended December 31, 2019 , 2018 and 2017 , respectively. The average interest rate reduction was 0.13 , 0.21 and 0.56 percentage points for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table displays the number of loans and recorded investment in loans classified as a TDR. For the Year Ended December 31, 2019 2018 2017 Number of Loans Recorded Investment (1) Number of Loans Recorded Investment (1) Number of Loans Recorded Investment (1) (Dollars in millions) Single-family: Primary 48,858 $ 7,688 89,192 $ 13,437 59,708 $ 8,247 Government 72 8 115 11 171 18 Alt-A 2,465 313 5,378 697 5,369 771 Other 464 81 1,127 208 1,158 207 Total single-family 51,859 8,090 95,812 14,353 66,406 9,243 Multifamily 11 56 14 74 8 99 Total TDRs 51,870 $ 8,146 95,826 $ 14,427 66,414 $ 9,342 (1) Based on the nature of our modification programs, which do not include principal or past-due interest forgiveness, there is not a material difference between the recorded investment in our loans pre- and post- modification. Therefore, these amounts represent recorded investment post-modification. The decrease in loans classified as TDRs for the year ended December 31, 2019 compared with the year ended December 31, 2018 was primarily attributable to significantly higher single-family loan modifications and other forms of loss mitigation in the areas affected by Hurricanes Harvey, Irma and Maria that resulted in a restructuring of the terms of these loans. For loans that had a payment default in the period presented and that were classified as a TDR in the twelve months prior to the payment default, the following table displays the number of loans and our recorded investment in these loans at the time of payment default. For the purposes of this disclosure, we define loans that had a payment default as: single-family and multifamily loans with completed TDRs that liquidated during the period, either through foreclosure, deed-in-lieu of foreclosure, or a short sale; single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period. For the Year Ended December 31, 2019 2018 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in millions) Single-family: Primary 15,875 $ 2,425 18,613 $ 2,697 19,539 $ 2,722 Government 74 10 55 7 91 10 Alt-A 1,453 218 2,412 386 2,588 400 Other 447 87 662 131 760 145 Total single-family 17,849 2,740 21,742 3,221 22,978 3,277 Multifamily 2 18 2 3 2 12 Total TDRs that subsequently defaulted 17,851 $ 2,758 21,744 $ 3,224 22,980 $ 3,289 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option. When calculating our allowance for loan losses, we consider the unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date. The following table displays changes in our single-family, multifamily and total allowance for loan losses. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (13,969 ) $ (18,849 ) $ (23,283 ) Benefit (provision) for loan losses (1) 3,988 2,990 1,994 Charge-offs 1,299 2,148 2,795 Recoveries (71 ) (240 ) (326 ) Other (6 ) (18 ) (29 ) Ending balance $ (8,759 ) $ (13,969 ) $ (18,849 ) Multifamily allowance for loan losses: Beginning balance $ (234 ) $ (235 ) $ (182 ) Benefit (provision) for loan losses (1) (27 ) (3 ) (53 ) Charge-offs 8 4 3 Recoveries (4 ) — (3 ) Ending balance $ (257 ) $ (234 ) $ (235 ) Total allowance for loan losses: Beginning balance $ (14,203 ) $ (19,084 ) $ (23,465 ) Benefit (provision) for loan losses (1) 3,961 2,987 1,941 Charge-offs 1,307 2,152 2,798 Recoveries (75 ) (240 ) (329 ) Other (6 ) (18 ) (29 ) Ending balance $ (9,016 ) $ (14,203 ) $ (19,084 ) (1) Benefit (provision) for loan losses is included in “ Benefit for credit losses ” in our consolidated statements of operations and comprehensive income. The following table displays the allowance for loan losses and recorded investment in our HFI loans by impairment or allowance methodology and portfolio segment, excluding loans for which we have elected the fair value option. As of December 31, 2019 2018 Single-Family Multifamily Total Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175 ) $ (45 ) $ (8,220 ) $ (13,255 ) $ (40 ) $ (13,295 ) Collectively reserved loans (584 ) (212 ) (796 ) (714 ) (194 ) (908 ) Total allowance for loan losses $ (8,759 ) $ (257 ) $ (9,016 ) $ (13,969 ) $ (234 ) $ (14,203 ) Recorded investment in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 $ 117,561 $ 542 $ 118,103 Collectively reserved loans 2,909,115 329,938 3,239,053 2,841,943 295,122 3,137,065 Total recorded investment in loans $ 3,006,311 $ 330,618 $ 3,336,929 $ 2,959,504 $ 295,664 $ 3,255,168 |
Investments in Securities
Investments in Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Securities | Investments in Securities Trading Securities Trading securities are recorded at fair value with subsequent changes in fair value recorded as “ Fair value gains (losses), net ” in our consolidated statements of operations and comprehensive income. The following table displays our investments in trading securities. As of December 31, 2019 2018 (Dollars in millions) Mortgage-related securities: Fannie Mae (1) $ 3,424 $ 1,467 Other agency (2) 4,490 3,503 Private-label and other mortgage securities 629 1,306 Total mortgage-related securities (includes $896 and $32, respectively, related to consolidated trusts) 8,543 6,276 Non-mortgage-related securities: U.S. Treasury securities 39,501 35,502 Other securities 79 89 Total non-mortgage-related securities 39,580 35,591 Total trading securities $ 48,123 $ 41,867 (1) In the second quarter of 2019, we implemented the Single Security Initiative and recognized $1.4 billion in mortgage-related securities that had previously been consolidated. (2) Consists of Freddie Mac and Ginnie Mae mortgage-related securities. The decrease in private-label and other mortgage securities for the year ended December 31, 2019 compared with the year ended December 31, 2018 was primarily attributable to sales of Alt-A and subprime private-label securities. The following table displays information about our net trading gains (losses). For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Net trading gains $ 322 $ 126 $ 190 Net trading gains recognized in the period related to securities still held at period end 238 55 161 Available-for-Sale Securities We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive loss” in our consolidated statements of operations and comprehensive income. We recognize realized gains and losses from the sale of AFS securities in “ Investment gains, net .” The following table displays the gross realized gains and proceeds on sales of AFS securities. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Gross realized gains $ 265 $ 375 $ 487 Total proceeds (excludes initial sale of securities from new portfolio securitizations) 537 662 1,780 The following tables display the amortized cost, gross unrealized gains and losses, and fair value by major security type for AFS securities. As of December 31, 2019 Total Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses (2) Total Fair Value (Dollars in millions) Fannie Mae $ 1,445 $ 85 $ (10 ) $ 1,520 Other agency 183 15 — 198 Alt-A and subprime private-label securities 34 23 — 57 Mortgage revenue bonds 309 9 (3 ) 315 Other mortgage-related securities 310 5 (1 ) 314 Total $ 2,281 $ 137 $ (14 ) $ 2,404 As of December 31, 2018 Total Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses (2) Total Fair Value (Dollars in millions) Fannie Mae $ 1,754 $ 69 $ (26 ) $ 1,797 Other agency 239 17 — 256 Alt-A and subprime private-label securities 325 267 — 592 Mortgage revenue bonds 425 13 (4 ) 434 Other mortgage-related securities 336 14 — 350 Total $ 3,079 $ 380 $ (30 ) $ 3,429 s (1) Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as OTTI recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income. (2) Represents the gross unrealized losses on securities for which we have not recognized OTTI, as well as the noncredit component of OTTI and cumulative changes in fair value of securities for which we previously recognized the credit component of OTTI in “Accumulated other comprehensive income” in our consolidated balance sheets. The decrease in Alt-A and subprime private-label for the year ended December 31, 2019 compared with the year ended December 31, 2018 was primarily attributable to sales of subprime private-label securities. The following tables display additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position. As of December 31, 2019 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (Dollars in millions) Fannie Mae $ — $ — $ (10 ) $ 337 Mortgage revenue bonds — — (3 ) 3 Other mortgage-related securities (1 ) 130 — — Total $ (1 ) $ 130 $ (13 ) $ 340 As of December 31, 2018 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (Dollars in millions) Fannie Mae $ — $ — $ (26 ) $ 487 Mortgage revenue bonds (1 ) 24 (3 ) 19 Total $ (1 ) $ 24 $ (29 ) $ 506 Other-Than-Temporary Impairments For AFS securities, OTTI is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell or it is more likely than not that we will be required to sell the security before recovery. Additionally, OTTI is considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend to sell the security or it is not more likely than not we will be required to sell the security before recovery. The balance of the unrealized credit loss component of AFS debt securities held by us and recognized in our consolidated statements of operations and comprehensive income was $36 million , $635 million and $1.1 billion as of December 31, 2019 , 2018 and 2017 , respectively. The decrease for the years ended 2019 and 2018 was primarily driven by securities that we no longer hold in our portfolio. The following table displays net unrealized gains on AFS securities and other amounts within accumulated other comprehensive income (“AOCI”), net of tax, by major categories. As of December 31, 2019 2018 2017 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded OTTI $ 97 $ 52 $ 87 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 423 Other 34 46 43 Accumulated other comprehensive income $ 131 $ 322 $ 553 Maturity Information The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time. As of December 31, 2019 Total Amortized Cost Total Fair Value One Year or Less After One Year Through Five Years After Five Years Through Ten Years After Ten Years Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in millions) Fannie Mae $ 1,445 $ 1,520 $ — $ — $ 15 $ 16 $ 95 $ 104 $ 1,335 $ 1,400 Other agency 183 198 — — 18 18 24 27 141 153 Alt-A and subprime private-label securities 34 57 — — — — 3 3 31 54 Mortgage revenue bonds 309 315 2 2 31 32 29 30 247 251 Other mortgage-related securities 310 314 — — — — 24 26 286 288 Total $ 2,281 $ 2,404 $ 2 $ 2 $ 64 $ 66 $ 175 $ 190 $ 2,040 $ 2,146 Weighted-average yield (1) 6.48 % 5.51 % 6.30 % 6.19 % 6.51 % (1) Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax-exempt obligations have been computed on a tax equivalent basis. |
Financial Guarantees
Financial Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Financial Guarantees | Financial Guarantees We generate revenue by absorbing the credit risk of mortgage loans in unconsolidated trusts in exchange for a guaranty fee. We also provide credit enhancements on taxable or tax-exempt mortgage revenue bonds issued by state and local governmental entities to finance multifamily housing for low- and moderate-income families. Additionally, we issue long-term standby commitments that generally require us to purchase loans from lenders if the loans meet certain delinquency criteria. We recognize a guaranty obligation for our obligation to stand ready to perform on our guarantees to unconsolidated trusts and other guaranty arrangements. These off-balance sheet guarantees expose us to credit losses primarily relating to the unpaid principal balance of our unconsolidated Fannie Mae MBS and other financial guarantees. The remaining contractual terms of our guarantees range from 1 day to 33 years; however, the actual term of each guaranty may be significantly less than the contractual term based on the prepayment characteristics of the related mortgage loans. As the guarantor of structured securities backed in whole or in part by Freddie Mac-issued securities, we extend our guaranty to the underlying Freddie Mac securities in our resecuritization trusts. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We do not charge an incremental guaranty fee to include Freddie Mac securities in the structured securities that we issue. As described in “Note 1, Summary of Significant Accounting Policies,” in June 2019, we entered into an indemnification agreement under which Freddie Mac agreed to indemnify us for losses caused by its failure to meet its payment or other specified obligations under the trust agreements pursuant to which the underlying resecuritized securities were issued. As a result, and due to the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury, we have concluded that the associated credit risk is negligible. As such, we exclude from the following table approximately $50.1 billion of Freddie Mac securities backing unconsolidated Fannie Mae-issued structured securities as of December 31, 2019 . The following table displays our off-balance sheet maximum exposure, guaranty obligation recognized in our consolidated balance sheets and the potential maximum recovery from third parties through available credit enhancements and recourse related to our financial guarantees. As of December 31, 2019 2018 Maximum Exposure Guaranty Obligation Maximum Recovery (1) Maximum Exposure Guaranty Obligation Maximum Recovery (1) (Dollars in millions) Unconsolidated Fannie Mae MBS $ 5,801 $ 26 $ 5,545 $ 7,278 $ 30 $ 6,811 Other guaranty arrangements (2) 12,670 128 2,553 13,847 130 2,711 Total $ 18,471 $ 154 $ 8,098 $ 21,125 $ 160 $ 9,522 (1) Recoverability of such credit enhancements and recourse is subject to, among other factors, our mortgage insurers’ and financial guarantors’ ability to meet their obligations to us. For information on our mortgage insurers, see “ Note 13, Concentrations of Credit Risk .” (2) Primarily consists of credit enhancements and long-term standby commitments. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Short-Term Debt The following table displays our outstanding short-term debt (debt with an original contractual maturity of one year or less) and weighted-average interest rates of this debt. As of December 31, 2019 2018 Outstanding Weighted- Average Interest Rate (1) Outstanding Weighted- Average Interest Rate (1) (Dollars in millions) Federal funds purchased and securities sold under agreements to repurchase (2) $ 478 1.67 % $ — — % Short-term debt of Fannie Mae $ 26,662 1.56 % $ 24,896 2.29 % (1) Includes the effects of discounts, premiums and other cost basis adjustments. (2) Represents agreements to repurchase securities for a specified price, with repayment generally occurring on the following day, reported as “Other liabilities” in our consolidated balance sheets. Intraday Line of Credit We use a secured intraday funding line of credit provided by a large financial institution. We post collateral which, in some circumstances, the secured party has the right to repledge to third parties. As this line of credit is an uncommitted intraday loan facility, we may be unable to draw on it if and when needed. The line of credit under this facility was $15.0 billion as of December 31, 2019 and 2018 Long-Term Debt Long-term debt represents debt with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt. As of December 31, 2019 2018 Maturities Outstanding Weighted- Average Interest Rate (1) Maturities Outstanding Weighted- Average Interest Rate (1) (Dollars in millions) Senior fixed: Benchmark notes and bonds 2020 - 2030 $ 86,114 2.66 % 2019 - 2030 $ 103,206 2.36 % Medium-term notes (2) 2020 - 2026 32,590 1.57 2019 - 2026 61,455 1.48 Other (3) 2020 - 2038 5,254 5.01 2019 - 2038 6,683 4.62 Total senior fixed 123,958 2.47 171,344 2.13 Senior floating: Medium-term notes (2) 2020 - 2021 9,774 1.66 2019 - 2020 4,174 2.36 CAS (4) 2023 - 2031 21,424 5.61 2023 - 2031 25,641 5.97 Other (5) 2020 - 2037 398 6.27 2020 - 2037 351 10.19 Total senior floating 31,596 4.40 30,166 5.52 Subordinated debentures 2019 — — 2019 5,617 9.64 Secured borrowings (6) 2021 - 2022 31 2.31 2021 - 2022 51 1.96 Total long-term debt of Fannie Mae (7) 155,585 2.86 207,178 2.83 Debt of consolidated trusts 2020 - 2059 3,285,139 2.78 2019 - 2058 3,159,846 3.03 Total long-term debt $ 3,440,724 2.78 % $ 3,367,024 3.02 % (1) Includes the effects of discounts, premiums and other cost basis adjustments. (2) Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt. (3) Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds. (4) Credit risk-sharing securities that transfer a portion of the credit risk on specified pools of single-family mortgage loans to the investors in these securities, a portion of which is reported at fair value. Represents CAS issued prior to November 2018. See “ Note 2, Consolidations and Transfers of Financial Assets ” for more information about our CAS structures issued beginning November 2018. (5) Consists of structured debt instruments that are reported at fair value. (6) Represents our remaining liability resulting from the transfer of financial assets from our consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments. (7) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $2 million and $413 million as of December 31, 2019 and 2018 , respectively. Our long-term debt includes a variety of debt types. We issue fixed and floating-rate medium-term notes with maturities greater than one year that are issued through dealer banks. We also offer Benchmark Notes ® in regularly-scheduled issuances that provide increased efficiency, liquidity and tradability to the market. Additionally, we have issued notes and bonds denominated in several foreign currencies. We effectively convert all foreign currency-denominated transactions into U.S. dollars through the use of foreign currency swaps for the purpose of funding our mortgage assets. Our long-term debt also includes CAS securities, which are credit risk-sharing securities that transfer a portion of the credit risk on specified pools of mortgage loans to investors in these securities. Our other long-term debt includes callable and non-callable securities, which include all long-term non-Benchmark securities, such as zero-coupon bonds, fixed rate and other long-term securities, and are generally negotiated underwritings with one or more dealers or dealer banks. Characteristics of Debt As of December 31, 2019 and 2018 , the face amount of our debt securities of Fannie Mae was $182.2 billion and $232.5 billion , respectively. As of December 31, 2019 , we had zero-coupon debt with a face amount of $23.1 billion , which had an effective interest rate of 1.63% . As of December 31, 2018 , we had zero-coupon debt with a face amount of $23.2 billion , which had an effective interest rate of 4.15% . Our zero-coupon debt outstanding as of December 31, 2018 included subordinated debentures, which matured in October 2019. We issue callable debt instruments to manage the duration and prepayment risk of expected cash flows of the mortgage assets we own. Our outstanding debt as of December 31, 2019 and 2018 included $38.5 billion and $64.3 billion , respectively, of callable debt that could be redeemed in whole or in part at our option on or after a specified date. The following table displays the amount of our long-term debt as of December 31, 2019 by year of maturity for each of the years 2020 through 2024 and thereafter. The first column assumes that we pay off this debt at maturity or on the call date if the call has been announced, while the second column assumes that we redeem our callable debt at the next available call date. Long-Term Debt by Year of Maturity Assuming Callable Debt Redeemed at Next Available Call Date (Dollars in millions) 2020 $ 47,427 $ 60,464 2021 29,028 21,037 2022 15,584 14,010 2023 5,301 4,470 2024 14,344 13,320 Thereafter 43,901 42,284 Total long-term debt of Fannie Mae (1) 155,585 155,585 Debt of consolidated trusts (2) 3,285,139 3,285,139 Total long-term debt $ 3,440,724 $ 3,440,724 (1) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments. (2) |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative instruments are an integral part of our strategy in managing interest-rate risk. Derivative instruments may be privately-negotiated, bilateral contracts, or they may be listed and traded on an exchange. We refer to our derivative transactions made pursuant to bilateral contracts as our OTC derivative transactions and our derivative transactions accepted for clearing by a derivatives clearing organization as our cleared derivative transactions. We typically do not settle the notional amount of our risk management derivatives; rather, notional amounts provide the basis for calculating actual payments or settlement amounts. The derivative contracts we use for interest-rate risk management purposes fall into these broad categories: • Interest-rate swap contracts. An interest-rate swap is a transaction between two parties in which each party agrees to exchange payments tied to different interest rates or indices for a specified period of time, generally based on a notional amount of principal. The types of interest-rate swaps we use include pay-fixed swaps, receive-fixed swaps and basis swaps. • Interest-rate option contracts. These contracts primarily include pay-fixed swaptions, receive-fixed swaptions, cancelable swaps and interest-rate caps. A swaption is an option contract that allows us or a counterparty to enter into a pay-fixed or receive-fixed swap at some point in the future. • Foreign currency swaps. These swaps convert debt that we issue in foreign denominated currencies into U.S. dollars. We enter into foreign currency swaps only to the extent that we hold foreign currency debt. • Futures. These are standardized exchange-traded contracts that either obligate a buyer to buy an asset at a predetermined date and price or a seller to sell an asset at a predetermined date and price. The types of futures contracts we enter into include SOFR and U.S. Treasury. We account for certain forms of credit risk transfer transactions as derivatives. In our credit risk transfer transactions, a portion of the credit risk associated with losses on a reference pool of mortgage loans is transferred to a third party. We enter into derivative transactions that are associated with some of our credit risk transfer transactions, whereby we manage investment risk to guarantee that certain unconsolidated VIEs have sufficient cash flows to pay their contractual obligations. We enter into forward purchase and sale commitments that lock in the future delivery of mortgage loans and mortgage-related securities at a fixed price or yield. Certain commitments to purchase mortgage loans and purchase or sell mortgage-related securities meet the criteria of a derivative. We typically settle the notional amount of our mortgage commitments that are accounted for as derivatives. We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade-date basis. Fair value amounts, which are (1) netted to the extent a legal right of offset exists and is enforceable by law at the counterparty level and (2) inclusive of the right or obligation associated with the cash collateral posted or received, are recorded in “Other assets” or “Other liabilities” in our consolidated balance sheets. See “ Note 15, Fair Value ” for additional information on derivatives recorded at fair value. We present cash flows from derivatives as operating activities in our consolidated statements of cash flows. Notional and Fair Value Position of our Derivatives The following table displays the notional amount and estimated fair value of our asset and liability derivative instruments. As of December 31, 2019 As of December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ 41,052 $ — $ 29,178 $ (970 ) $ 71,416 $ 438 $ 21,253 $ (740 ) Receive-fixed 73,579 816 26,382 (62 ) 88,799 1,113 58,399 (860 ) Basis 273 149 — — 250 104 624 — Foreign currency 229 39 232 (65 ) 221 22 223 (72 ) Swaptions: Pay-fixed 4,600 18 6,375 (219 ) 10,375 191 1,000 (4 ) Receive-fixed 2,875 106 4,600 (232 ) 500 20 7,375 (338 ) Futures (1) 20,507 — — — 16,631 — — — Total gross risk management derivatives 143,115 1,128 66,767 (1,548 ) 188,192 1,888 88,874 (2,014 ) Accrued interest receivable (payable) — 226 — (250 ) — 400 — (419 ) Netting adjustment (2) — (1,288 ) — 1,694 — (2,266 ) — 2,315 Total net risk management derivatives $ 143,115 $ 66 $ 66,767 $ (104 ) $ 188,192 $ 22 $ 88,874 $ (118 ) Mortgage commitment derivatives: Mortgage commitments to purchase whole loans $ 7,115 $ 15 $ 1,787 $ (1 ) $ 4,370 $ 29 $ 57 $ — Forward contracts to purchase mortgage-related securities 55,531 137 9,560 (28 ) 40,650 349 1,045 (3 ) Forward contracts to sell mortgage-related securities 9,282 13 109,066 (277 ) 292 1 70,593 (645 ) Total mortgage commitment derivatives 71,928 165 120,413 (306 ) 45,312 379 71,695 (648 ) Credit enhancement derivatives 28,432 40 9,486 (25 ) 33,431 57 919 (11 ) Derivatives at fair value $ 243,475 $ 271 $ 196,666 $ (435 ) $ 266,935 $ 458 $ 161,488 $ (777 ) (1) Futures have no ascribable fair value since the positions are settled daily. (2) The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $1.0 billion and $713 million as of December 31, 2019 and 2018 , respectively. Cash collateral received was $635 million and $664 million as of December 31, 2019 and 2018 , respectively. We record all derivative gains and losses, including accrued interest, in “ Fair value gains (losses), net ” in our consolidated statements of operations and comprehensive income. The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ (3,964 ) $ 2,940 $ 1,296 Receive-fixed 3,685 (1,834 ) (851 ) Basis 46 (21 ) 21 Foreign currency 24 (51 ) 49 Swaptions: Pay-fixed (380 ) 100 (161 ) Receive-fixed 117 (39 ) (60 ) Futures 273 38 22 Net contractual interest expense on interest-rate swaps (833 ) (1,061 ) (889 ) Total risk management derivatives fair value gains (losses), net (1,032 ) 72 (573 ) Mortgage commitment derivatives fair value gains (losses), net (1,043 ) 324 (603 ) Credit enhancement derivatives fair value gains (losses), net (35 ) 26 (9 ) Total derivatives fair value gains (losses), net $ (2,110 ) $ 422 $ (1,185 ) Derivative Counterparty Credit Exposure Our derivative counterparty credit exposure relates principally to interest-rate derivative contracts. We are exposed to the risk that a counterparty in a derivative transaction will default on payments due to us, which may require us to seek a replacement derivative from a different counterparty. This replacement may be at a higher cost, or we may be unable to find a suitable replacement. We manage our derivative counterparty credit exposure relating to our risk management derivative transactions mainly through enforceable master netting arrangements, which allow us to net derivative assets and liabilities with the same counterparty or clearing organization and clearing member. For our OTC derivative transactions, we require counterparties to post collateral, which may include cash, U.S. Treasury securities, agency debt and agency mortgage-related securities. See “ Note 14, Netting Arrangements ” for information on our rights to offset assets and liabilities as of December 31, 2019 and 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Taxes Provision for Federal Income Taxes We are subject to federal income tax, but we are exempt from state and local income taxes. The following table displays the components of our provision for federal income taxes. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Current income tax benefit (provision) $ (2,089 ) $ 114 $ 600 Deferred income tax provision (1) (1,328 ) (4,254 ) (16,584 ) Provision for federal income taxes $ (3,417 ) $ (4,140 ) $ (15,984 ) (1) Amount excludes the current income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).” The following table displays the difference between the statutory corporate tax rate and our effective tax rate. For the Year Ended December 31, 2019 2018 2017 Statutory corporate tax rate 21.0 % 21.0 % 35.0 % Equity investments in affordable housing projects (0.2 ) (0.6 ) (1.4 ) Effect of corporate tax rate change — — 53.6 Change in unrecognized tax benefits (1.2 ) — — Other (0.2 ) 0.2 (0.6 ) Effective tax rate 19.4 % 20.6 % 86.6 % Our effective tax rate is the provision for federal income taxes expressed as a percentage of income or loss before federal income taxes. Our effective tax rates for the years 2019 , 2018 , and 2017 were impacted by the benefits of our investments in housing projects eligible for low-income housing tax credits. Our effective tax rate for 2019 was also impacted by the favorable resolution of our uncertain tax position which reduced our provision for federal income taxes by $205 million . The effective tax rate in 2017 was impacted by the re-measurement of our net deferred tax assets in the fourth quarter of 2017 as a result of the federal statutory corporate tax rate change from 35% to 21% . Deferred Tax Assets and Liabilities We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. As of December 31, 2019 , we continued to conclude that the positive evidence in favor of the recoverability of our deferred tax assets outweighed the negative evidence and that it is more likely than not that our deferred tax assets will be realized. Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, to the extent it exists, including: • the sustainability of recent profitability required to realize the deferred tax assets; • the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years; • unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years; and • the funding available to us under the senior preferred stock purchase agreement. The following table displays our deferred tax assets and deferred tax liabilities. As of December 31, 2019 2018 (Dollars in millions) Deferred tax assets: Mortgage and mortgage-related assets $ 9,290 $ 9,285 Allowance for loan losses and basis in acquired property, net 1,240 2,065 Debt and derivative instruments 627 687 Partnership credits — 161 Partnership and other equity investments 152 223 Interest-only securities 788 738 Other, net — 102 Total deferred tax assets 12,097 13,261 Deferred tax liabilities: Unrealized gains on AFS securities, net 26 73 Other, net 161 — Total deferred tax liabilities 187 73 Deferred tax assets, net $ 11,910 $ 13,188 Unrecognized Tax Benefits The following table displays the changes in our unrecognized tax benefits. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Unrecognized tax benefits as of January 1 $ 416 $ 514 $ — Gross increases - tax positions in current year — — 514 Gross decreases - tax positions in current year — (98 ) — Gross decreases - tax positions in prior years (416 ) — — Unrecognized tax benefits as of December 31 (1) $ — $ 416 $ 514 (1) Amount excludes tax credits of $151 million , and $220 million as of 2018 , and 2017, respectively. We had no unrecognized tax benefits as of December 31, 2019. Our tax years 2007 through 2018 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We have two reportable business segments: Single-Family and Multifamily. The chief operating decision maker allocates resources and assesses performance based on these two business segments. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our consolidated results of operations. The section below provides a discussion of our business segments. Single-Family Business Segment • Works with our lender customers to acquire and securitize single-family mortgage loans delivered to us by lenders into Fannie Mae MBS. • Issues structured Fannie Mae MBS backed by single-family mortgage assets and provides other services to our lender customers. • Prices and manages the credit risk on loans in our single-family guaranty book of business. Also enters into transactions that transfer a portion of the credit risk on some of the loans in our single-family guaranty book of business. • Works to reduce costs of defaulted single-family loans through home retention solutions and foreclosure alternatives, management of foreclosures and our REO inventory, selling nonperforming loans and pursuing contractual remedies from lenders, servicers and providers of credit enhancement. Multifamily Business Segment • Works with our lender customers to acquire and securitize multifamily mortgage loans delivered to us by lenders into Fannie Mae MBS. • Issues structured multifamily Fannie Mae MBS through our Fannie Mae Guaranteed Multifamily Structures (“Fannie Mae GeMS”) program and provides other services to our lender customers. • Prices and manages the credit risk on loans in our multifamily guaranty book of business. Lenders retain a portion of the credit risk in most multifamily transactions. • Enters into transactions that transfer an additional portion of Fannie Mae’s credit risk on some of the loans in our multifamily guaranty book of business. • Works to maintain credit quality of the book, prevent foreclosure, reduce costs of defaulted multifamily loans, manage our REO inventory, and pursue contractual remedies from lenders, servicers and providers of credit enhancement. Segment Allocations and Results The majority of our assets, revenues and expenses are directly associated with each respective business segment and are included in determining its asset balance and operating results. Those assets, revenues and expenses that are not directly attributable to a particular business segment are allocated based on the size of each segment’s guaranty book of business. The substantial majority of our gains and losses associated with our risk management derivatives are allocated to our Single-Family business segment. The following table displays total assets by segment. As of December 31, 2019 2018 (Dollars in millions) Single-Family $ 3,149,212 $ 3,099,588 Multifamily 354,107 318,730 Total assets $ 3,503,319 $ 3,418,318 We operate our business solely in the United States and its territories, and accordingly, we generate no revenue from and have no long-lived assets, other than financial instruments, in geographic locations other than the United States and its territories. The following tables display our segment results. For the Year Ended December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,013 $ 2,949 $ 20,962 Fee and other income (2) 453 723 1,176 Net revenues 18,466 3,672 22,138 Investment gains, net (3) 1,589 181 1,770 Fair value gains (losses), net (4) (2,216 ) 2 (2,214 ) Administrative expenses (2,565 ) (458 ) (3,023 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 4,038 (27 ) 4,011 Foreclosed property income (expense) (523 ) 8 (515 ) Total credit-related income (expense) 3,515 (19 ) 3,496 TCCA fees (6) (2,432 ) — (2,432 ) Other expenses, net (1,661 ) (497 ) (2,158 ) Income before federal income taxes 14,696 2,881 17,577 Provision for federal income taxes (2,859 ) (558 ) (3,417 ) Net income $ 11,837 $ 2,323 $ 14,160 For the Year Ended December 31, 2018 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,162 $ 2,789 $ 20,951 Fee and other income (2) 450 529 979 Net revenues 18,612 3,318 21,930 Investment gains, net (3) 850 102 952 Fair value gains (losses), net (4) 1,210 (89 ) 1,121 Administrative expenses (2,631 ) (428 ) (3,059 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 3,313 (4 ) 3,309 Foreclosed property expense (604 ) (13 ) (617 ) Total credit-related income (expense) 2,709 (17 ) 2,692 TCCA fees (6) (2,284 ) — (2,284 ) Other expenses, net (1,012 ) (241 ) (1,253 ) Income before federal income taxes 17,454 2,645 20,099 Provision for federal income taxes (3,708 ) (432 ) (4,140 ) Net income $ 13,746 $ 2,213 $ 15,959 For the Year Ended December 31, 2017 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,212 $ 2,521 $ 20,733 Fee and other income (2) 1,378 849 2,227 Net revenues 19,590 3,370 22,960 Investment gains, net (3) 1,352 170 1,522 Fair value losses, net (4) (1,188 ) (23 ) (1,211 ) Administrative expenses (2,391 ) (346 ) (2,737 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 2,090 (49 ) 2,041 Foreclosed property income (expense) (540 ) 19 (521 ) Total credit-related income (expense) 1,550 (30 ) 1,520 TCCA fees (6) (2,096 ) — (2,096 ) Other expenses, net (1,004 ) (507 ) (1,511 ) Income before federal income taxes 15,813 2,634 18,447 Provision for federal income taxes (14,301 ) (1,683 ) (15,984 ) Net income $ 1,512 $ 951 $ 2,463 (1) Net interest income primarily consists of guaranty fees received as compensation for assuming and managing the credit risk on loans underlying Fannie Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the respective business segment’s mortgage assets in our retained mortgage portfolio and the interest expense associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis point increase in guaranty fees pursuant to the TCCA, the incremental revenue for which is remitted to Treasury and not retained by us. (2) Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services, and income resulting from settlement agreements resolving certain claims relating to private-label securities we purchased or that we have guaranteed. Multifamily fee and other income consists of fees associated with Multifamily business activities, including yield maintenance income. (3) Investment gains and losses primarily consist of gains and losses on the sale of mortgage assets for the respective business segment. (4) Single-family fair value gains and losses primarily consist of fair value gains and losses on risk management and mortgage commitment derivatives, trading securities and other financial instruments associated with our single-family guaranty book of business. Multifamily fair value gains and losses primarily consist of fair value gains and losses on MBS commitment derivatives, trading securities and other financial instruments associated with our multifamily guaranty book of business. (5) Credit-related income or expense is based on the guaranty book of business of the respective business segment and consists of the applicable segment’s benefit or provision for credit losses and foreclosed property income or expense on loans underlying the segment’s guaranty book of business. (6) Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Common Stock Shares of common stock outstanding, net of shares held as treasury stock, totaled 1.2 billion as of December 31, 2019 and 2018 . During conservatorship, the rights and powers of shareholders are suspended. Accordingly, our common shareholders have no ability to elect directors or to vote on other matters during the conservatorship unless FHFA elects to delegate this authority to them. The senior preferred stock purchase agreement with Treasury prohibits the payment of dividends on common stock without the prior written consent of Treasury. The conservator also has eliminated common stock dividends. In addition, we issued a warrant to Treasury that provides Treasury with the right to purchase for a nominal price shares of our common stock equal to 79.9% of the total number of shares of common stock outstanding on a fully diluted basis on the date of exercise, which would substantially dilute the ownership in Fannie Mae of our common stockholders at the time of exercise. Refer to the “Senior Preferred Stock and Common Stock Warrant” section of this note for more information. Preferred Stock The following table displays our senior preferred stock and preferred stock outstanding. Issued and Outstanding as of December 31, Annual Dividend Rate as of December 31, 2019 2019 2018 Stated Value per Share Title Issue Date Shares Amount Shares Amount Redeemable on or After (Dollars and shares in millions, except per share amounts) Senior Preferred Stock Series 2008-2 September 8, 2008 1 $ 120,836 1 $ 120,836 $ 120,836 (1) N/A (2) N/A (3) Preferred Stock Series D September 30, 1998 3 $ 150 3 $ 150 $ 50 5.250 % September 30, 1999 Series E April 15, 1999 3 150 3 150 50 5.100 April 15, 2004 Series F March 20, 2000 14 690 14 690 50 2.146 (4) March 31, 2002 (5) Series G August 8, 2000 6 288 6 288 50 2.624 (6) September 30, 2002 (5) Series H April 6, 2001 8 400 8 400 50 5.810 April 6, 2006 Series I October 28, 2002 6 300 6 300 50 5.375 October 28, 2007 Series L April 29, 2003 7 345 7 345 50 5.125 April 29, 2008 Series M June 10, 2003 9 460 9 460 50 4.750 June 10, 2008 Series N September 25, 2003 5 225 5 225 50 5.500 September 25, 2008 Series O December 30, 2004 50 2,500 50 2,500 50 7.000 (7) December 31, 2007 Convertible Series 2004-I (8) December 30, 2004 — 2,492 — 2,492 100,000 5.375 January 5, 2008 Series P September 28, 2007 40 1,000 40 1,000 25 4.500 (9) September 30, 2012 Series Q October 4, 2007 15 375 15 375 25 6.750 September 30, 2010 Series R (10) November 21, 2007 21 530 21 530 25 7.625 November 21, 2012 Series S December 11, 2007 280 7,000 280 7,000 25 7.750 (11) December 31, 2010 (12) Series T (13) May 19, 2008 89 2,225 89 2,225 25 8.250 May 20, 2013 Total 556 $ 19,130 556 $ 19,130 (1) Initial stated value per share was $1,000 . Based on our draws of funds under the senior preferred stock purchase agreement with Treasury, the stated value per share on December 31, 2019 was $120,836 . (2) Beginning in 2013, dividends on the senior preferred stock are calculated based on our net worth as of the end of the immediately preceding fiscal quarter less an applicable capital reserve amount. The applicable capital reserve amount was $3 billion for 2018 and the first and second quarters of 2019. The capital reserve amount increased to $25 billion effective for dividend periods beginning July 1, 2019, pursuant to the September 2019 letter agreement with Treasury. (3) Any liquidation preference of our senior preferred stock in excess of $1.0 billion may be repaid through an issuance of common or preferred stock, which would require the consent of the conservator and Treasury. The initial $1.0 billion liquidation preference may be repaid only in conjunction with termination of Treasury’s funding commitment under the senior preferred stock purchase agreement. (4) Rate effective March 31, 2018. Variable dividend rate resets every two years at a per annum rate equal to the two-year Constant Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year. (5) Represents initial call date. Redeemable every two years thereafter. (6) Rate effective September 30, 2018. Variable dividend rate resets every two years at a per annum rate equal to the two-year CMT rate minus 0.18% with a cap of 11% per year. (7) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.00% or 10-year CMT rate plus 2.375% . (8) Issued and outstanding shares were 24,922 as of December 31, 2019 and 2018 . (9) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.50% or 3-Month LIBOR plus 0.75% . (10) On November 21, 2007, we issued 20 million shares of preferred stock in the amount of $500 million . Subsequent to the initial issuance, we issued an additional 1.2 million shares in the amount of $30 million on December 14, 2007 under the same terms as the initial issuance. (11) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.75% or 3-Month LIBOR plus 4.23% . (12) Represents initial call date. Redeemable every five years thereafter. (13) On May 19, 2008, we issued 80 million shares of preferred stock in the amount of $2.0 billion . Subsequent to the initial issuance, we issued an additional 8 million shares in the amount of $200 million on May 22, 2008 and 1 million shares in the amount of $25 million on June 4, 2008 under the same terms as the initial issuance. As described under “Senior Preferred Stock and Common Stock Warrant,” we issued senior preferred stock that ranks senior to all other series of preferred stock as to both dividends and distributions upon dissolution, liquidation or winding down of the company. The senior preferred stock purchase agreement with Treasury also prohibits the payment of dividends on preferred stock (other than the senior preferred stock) without the prior written consent of Treasury. The conservator also has eliminated preferred stock dividends, other than dividends on the senior preferred stock. Each series of our preferred stock has no par value, is non-participating, is non-voting and has a liquidation preference equal to the stated value per share. None of our preferred stock is convertible into or exchangeable for any of our other stock or obligations, with the exception of the Convertible Series 2004-1. Shares of the Convertible Series 2004-1 Preferred Stock are convertible at any time, at the option of the holders, into shares of Fannie Mae common stock at a conversion price of $94.31 per share of common stock (equivalent to a conversion rate of 1,060.3329 shares of common stock for each share of Series 2004-1 Preferred Stock). The conversion price is adjustable, as necessary, to maintain the stated conversion rate into common stock. Events which may trigger an adjustment to the conversion price include certain changes in our common stock dividend rate, subdivisions of our outstanding common stock into a greater number of shares, combinations of our outstanding common stock into a smaller number of shares and issuances of any shares by reclassification of our common stock. No such events have occurred. Holders of preferred stock (other than the senior preferred stock) are entitled to receive non-cumulative, quarterly dividends when, and if, declared by our Board of Directors, but have no right to require redemption of any shares of preferred stock. Payment of dividends on preferred stock (other than the senior preferred stock) is not mandatory, but has priority over payment of dividends on common stock, which are also declared by the Board of Directors. If dividends on the preferred stock are not paid or set aside for payment for a given dividend period, dividends may not be paid on our common stock for that period. There were no dividends declared or paid on preferred stock (other than the senior preferred stock) for the years ended December 31, 2019 or 2018 . After a specified period, we have the option to redeem preferred stock (other than the senior preferred stock) at its redemption price plus the dividend (whether or not declared) for the then-current period accrued to, but excluding, the date of redemption. The redemption price is equal to the stated value for all issues of preferred stock except Series O, which has a redemption price of $50 to $52.50 depending on the year of redemption and Convertible Series 2004-1, which has a redemption price of $105,000 per share. Our preferred stock is traded in the over-the-counter market. Senior Preferred Stock and Common Stock Warrant On September 8, 2008, we issued to Treasury one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2, with an aggregate stated value and initial liquidation preference of $1.0 billion . On September 7, 2008, we issued a warrant to purchase common stock to Treasury. The warrant gives Treasury the right to purchase shares of our common stock equal to 79.9% of the total number of shares of common stock outstanding on a fully diluted basis on the date of exercise. The senior preferred stock and the warrant were issued to Treasury as an initial commitment fee in consideration of the commitment from Treasury to provide funds to us under the terms and conditions set forth in the senior preferred stock purchase agreement. We did not receive any cash proceeds as a result of issuing these shares or the warrant. We have assigned a value of $4.5 billion to Treasury’s commitment, which has been recorded as a reduction to additional paid-in-capital and was partially offset by the aggregate fair value of the warrant. There was no impact to the total balance of stockholders’ equity as a result of the issuance. Variable Liquidation Preference Senior Preferred Stock, Series 2008-2 Shares of the senior preferred stock have no par value and have a stated value and initial liquidation preference equal to $1,000 per share, for an aggregate initial liquidation preference of $1.0 billion . Under the terms governing the senior preferred stock, the aggregate liquidation preference is increased by the following: • any amounts Treasury pays to us pursuant to its funding commitment under the senior preferred stock purchase agreement (a total of $119.8 billion as of the date of this filing), • any quarterly commitment fees that are payable but not paid in cash (no such fees have become payable, nor will they under the current terms of the agreement and the senior preferred stock); and • any dividends that are payable but not paid in cash to Treasury, regardless of whether or not they are declared. In addition: • the December 2017 letter agreement increased the aggregate liquidation preference of the senior preferred stock by $3.0 billion as of December 31, 2017; and • the September 2019 letter agreement provides that, beginning on September 30, 2019, and at the end of each fiscal quarter thereafter, the liquidation preference shall be increased by an amount equal to the increase in our net worth, if any, during the immediately prior fiscal quarter, until such time as the liquidation preference has increased by $22 billion pursuant to this provision. Accordingly, the aggregate liquidation preference of the senior preferred stock was $131.2 billion as of December 31, 2019 and will increase to $135.4 billion as of March 31, 2020 due to the increase in our net worth during the fourth quarter of 2019 . Treasury, as the holder of the senior preferred stock, is entitled to receive, when, as and if declared, out of legally available funds, cumulative quarterly cash dividends. Dividends declared and paid on the senior preferred stock were $5.6 billion , $9.4 billion , and $12.0 billion for the years ended December 31, 2019 , 2018 and 2017 , respectively. The dividends we have paid to Treasury on the senior preferred stock during conservatorship have been declared by, and paid at the direction of, our conservator, acting as successor to the rights, titles, powers and privileges of the Board of Directors. Dividend payments we make to Treasury do not restore or increase the amount of funding available to us under the agreement. The dividend provisions of the senior preferred stock have been amended three times. • Original Dividend Rate. As originally issued, the senior preferred stock provided for cumulative quarterly cash dividends at an annual rate of 10% per year on the stock’s then-current liquidation preference. This dividend rate was applicable from the fourth quarter of 2008 through the fourth quarter of 2012. • “Net Worth Sweep” Amendment. As amended in August 2012, the senior preferred stock provides for a “net worth sweep” dividend. For each quarterly dividend period, the dividend amount is the amount, if any, by which our net worth as of the end of the immediately preceding fiscal quarter exceeds an applicable capital reserve amount. Our net worth is defined as the amount, if any, by which our total assets (excluding Treasury’s funding commitment and any unfunded amounts related to the commitment) exceed our total liabilities (excluding any obligation with respect to capital stock), in each case as reflected on our balance sheet prepared in accordance with GAAP. The applicable capital reserve amount was initially $3.0 billion for dividend periods in 2013 and decreased by $600 million each year until it reached $600 million for dividend periods in 2017. These provisions became applicable in the first quarter of 2013 and remain in effect as modified by the December 2017 and September 2019 letter agreements. • December 2017 Letter Agreement Amendment. As amended in December 2017, the applicable capital reserve amount was increased to $3 billion . The December 2017 letter agreement also reduced by $2.4 billion the dividend amount otherwise payable for the fourth quarter of 2017. • September 2019 Amendment. As amended in September 2019, the applicable capital reserve amount was increased to $25 billion effective for dividend periods beginning July 1, 2019. If we do not declare and pay the dividend amount in full for any dividend period for which dividends are payable, then the applicable capital reserve amount will thereafter be zero. As a result of these amended dividend provisions, for each quarterly period beginning with the third quarter of 2019, dividends on the senior preferred stock accumulate and are payable based on the amount by which our net worth as of the end of the immediately preceding fiscal quarter exceeds $25 billion . If our net worth does not exceed the applicable capital reserve amount of $25 billion as of the end of the immediately preceding fiscal quarter, then dividends will neither accumulate nor be payable for such period. The senior preferred stock ranks ahead of 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. As a result, if we are liquidated, the holder of the senior preferred stock is entitled to its then-current liquidation preference (which includes any accumulated but unpaid dividends) before any distribution is made to the holders of our common stock or other preferred stock. The senior preferred stock provides that we may not declare or pay dividends on, make distributions with respect to, or redeem, purchase or acquire, or make a liquidation payment with respect to, any common stock or other securities ranking junior to the senior preferred stock unless: • 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 • all amounts required to be paid with the net proceeds of any issuance of capital stock for cash (as described in the following paragraph) have been paid in cash. We are not permitted to redeem the senior preferred stock prior to the termination of Treasury’s funding commitment under the senior preferred stock purchase agreement. Moreover, we are not permitted to pay down the liquidation preference of the outstanding shares of senior preferred stock except to the extent of: • accumulated and unpaid dividends previously added to the liquidation preference and not previously paid down; and • quarterly commitment fees previously added to the liquidation preference and not previously paid down. In addition to these exceptions, if we issue any shares of capital stock for cash while the senior preferred stock is outstanding (which requires Treasury’s approval), we are required to use the net proceeds of the issuance 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. Common Stock Warrant The warrant gives Treasury the right to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis on the date the warrant is exercised. The warrant may be exercised in whole or in part at any time on or before September 7, 2028, by delivery to Fannie Mae 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 common stock is greater than the exercise price, in lieu of exercising the warrant by payment of 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. If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheets. As of February 13, 2020 , Treasury has not exercised the warrant. Senior Preferred Stock Purchase Agreement with Treasury Funding Commitment Under the senior preferred stock purchase agreement, Treasury made a commitment to provide funding, under certain conditions, to eliminate deficits in our net worth. As of December 31, 2019 , Treasury has provided us with a total of $119.8 billion under its senior preferred stock purchase agreement funding commitment, and the amount of funding remaining available to us under the agreement was $113.9 billion . While we had positive net worth as of December 31, 2019 , in some future periods we could have net worth deficit and, if so, will be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement to avoid being placed into receivership. If we were to draw additional funds from Treasury under the agreement with respect to a future period, the amount of remaining funding under the agreement would be reduced by the amount of our draw. The senior preferred stock purchase agreement provides that the deficiency amount will be calculated differently if we become subject to receivership or other liquidation process. The deficiency amount may be increased above the otherwise applicable amount upon our mutual written agreement with Treasury. In addition, if the Director of FHFA determines that the Director will be mandated by law to appoint a receiver for us unless our capital is increased by receiving funds under the commitment in an amount up to the deficiency amount (subject to the maximum amount that may be funded under the agreement), then FHFA, in its capacity as our conservator, may request that Treasury provide funds to us in such amount. The senior preferred stock purchase agreement also provides that, if we have a deficiency amount as of the date of completion of the liquidation of our assets, we may request funds from Treasury in an amount up to the deficiency amount (subject to the maximum amount that may be funded under the agreement). Any amounts that we draw under the senior preferred stock purchase agreement will be added to the liquidation preference of the senior preferred stock. No additional shares of senior preferred stock are required to be issued under the senior preferred stock purchase agreement. Commitment Fee The senior preferred stock purchase agreement provides for the payment of an unspecified quarterly commitment fee to Treasury; however, the August 2012 amendment to the agreement provided that this commitment fee will not be set, accrue or be payable, as long as the dividend provisions of the senior preferred stock remain substantially the same in form and content. Covenants The senior preferred stock purchase agreement contains covenants that prohibit us from taking a number of actions without the prior written consent of Treasury, including: • declaring or paying dividends or making other distributions on or redeeming, purchasing, retiring or otherwise acquiring our equity securities (other than the senior preferred stock or warrant); • selling or issuing equity securities (except in limited instances); • seeking or permitting the termination of our conservatorship (other than in connection with a receivership); • selling, transferring, leasing or otherwise disposing of any assets, except for dispositions for fair market value in limited circumstances including if (a) the transaction is in the ordinary course of business and consistent with past practice or (b) the assets have a fair market value individually or in the aggregate of less than $250 million ; • incurring indebtedness that would result in our aggregate indebtedness exceeding $300 billion ; • issuing subordinated debt; • entering into a corporate reorganization, recapitalization, merger, acquisition or similar event; and • engaging in transactions with affiliates other than on arm’s-length terms or in the ordinary course of business. The senior preferred stock purchase agreement also prohibits us from entering into any new compensation arrangements or increasing amounts or benefits payable under existing compensation arrangements with any of our executive officers (as defined by SEC rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury. In addition, the senior preferred stock purchase agreement subjects us to limits on the amount of mortgage assets that we may own and the total amount of our indebtedness. • Mortgage Asset Limit. The amount of mortgage assets we are permitted to own decreased by a specified amount each year until it reached a limit of $250 billion as of December 31, 2018. In addition, FHFA has directed that we further cap our mortgage assets at $225 billion . For purposes of calculating our limit for 2019 and prior periods, mortgage asset amounts are based on the unpaid principal balance of such assets and do not reflect market valuation adjustments, allowance for loan losses, impairments, unamortized premiums and discounts and the impact of our consolidation of variable interest entities. Applying this measure, our mortgage assets as of December 31, 2019 were $153.6 billion . For periods after 2019, at FHFA’s direction our mortgage asset calculation will also include 10% of the notional value of interest-only securities we hold. • Debt Limit. Our debt limit under the senior preferred stock purchase agreement is set at 120% of the amount of mortgage assets we were allowed to own under the agreement on December 31 of the immediately preceding calendar year. Accordingly, our debt limit in 2019 and each year thereafter is $300 billion . For purposes of this calculation, indebtedness is based on the par value of each applicable loan and does not reflect the impact of consolidation of variable interest entities. Applying this measure, our indebtedness as of December 31, 2019 was $182.2 billion . Annual Risk Management Plan Covenant. Each year we remain in conservatorship we are required to provide Treasury a risk management plan that sets out our strategy for reducing our risk profile, describes the actions we will take to reduce the financial and operational risk associated with each of our business segments, and includes an assessment of our performance against the planned actions described in the prior year’s plan. We submitted our most recent annual risk management plan to Treasury in December 2019. Termination Provisions The senior preferred stock purchase agreement provides that Treasury’s funding commitment will terminate under any of the following circumstances: • the completion of our liquidation and fulfillment of Treasury’s obligations under its funding commitment at that time, • the payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guaranty obligations), or • the funding by Treasury of the maximum amount under the agreement. In addition, Treasury may terminate its funding commitment and declare the senior preferred stock 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 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 senior preferred stock purchase agreement provides that most provisions of the agreement may be waived or amended by mutual written agreement of the parties. No waiver or amendment of the agreement, however, may 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 guaranteed Fannie Mae MBS. Third-party Enforcement Rights If we default on payments with respect to our debt securities or guaranteed Fannie Mae MBS and 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 Fannie Mae MBS may file a claim for relief in the United States Court of Federal Claims. The relief, if granted, would require Treasury to fund to us the lesser of (1) the amount necessary to cure the payment defaults on our debt and Fannie Mae MBS and (2) the lesser of (a) the deficiency amount and (b) the maximum amount available under the agreement less the aggregate amount of funding previously provided under the commitment. Any payment that Treasury makes under those circumstances would be treated for all purposes as a draw under the senior preferred stock purchase agreement that would increase the liquidation preference of the senior preferred stock. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements FHFA suspended our capital classifications during conservatorship. We submit capital reports to FHFA and FHFA monitors our capital levels. Our regulatory capital classification measures are determined based on guidance from FHFA, in which FHFA (1) directed us, for loans backing Fannie Mae MBS held by third parties, to continue reporting our minimum capital requirements based on 0.45% of the unpaid principal balance and critical capital based on 0.25% of the unpaid principal balance, regardless of whether these loans have been consolidated pursuant to accounting rules, and (2) issued a regulatory interpretation stating that our minimum capital requirements are not automatically affected by the consolidation accounting guidance. Additionally, our regulatory capital classification measures exclude the funds provided to us by Treasury pursuant to the senior preferred stock purchase agreement, as the senior preferred stock does not qualify as core capital due to its cumulative dividend provisions. FHFA has directed us, during the time we are under conservatorship, to focus on managing to a positive net worth, and we are working on building our capital reserve up to the $25 billion we are permitted to retain. We had a positive net worth of $14.6 billion and $6.2 billion as of December 31, 2019 and 2018 , respectively. The following table displays our regulatory capital classification measures. As of December 31, 2019 2018 (Dollars in millions) Core capital (1) $ (106,360 ) $ (114,919 ) Statutory minimum capital requirement (2) 22,392 22,216 Deficit of core capital over statutory minimum capital requirement $ (128,752 ) $ (137,135 ) (1) The sum of (a) the stated value of our outstanding common stock (common stock less treasury stock); (b) the stated value of our outstanding non-cumulative perpetual preferred stock; (c) our paid-in capital; and (d) our retained earnings (accumulated deficit). Core capital does not include: (a) accumulated other comprehensive income or (b) senior preferred stock. (2) Generally, the sum of (a) 2.50% of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties; (b) 0.45% of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties; and (c) up to 0.45% of other off-balance sheet obligations, which may be adjusted by the Director of FHFA under certain circumstances. Our critical capital requirement is generally equal to the sum of: (1) 1.25% of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties; (2) 0.25% of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties; and (3) 0.25% of other off-balance sheet obligations, which may be adjusted by the Director of FHFA under certain circumstances. As of December 31, 2019 and 2018 , we had a minimum capital deficiency of $128.8 billion and $137.1 billion , respectively. See “ Note 1, Summary of Significant Accounting Policies ” and “ Note 11, Equity ” for more information on capital and the terms of our senior preferred stock purchase agreement with Treasury and the senior preferred stock we issued to Treasury. Set forth below are additional restrictions related to our capital requirements. Restrictions on Capital Distributions and Dividends Statutory Restrictions. Under the GSE Act, FHFA has authority to prohibit capital distributions, including payment of dividends, if we fail to meet our capital requirements. If FHFA classifies us as significantly undercapitalized, we must obtain the approval of the Director of FHFA for any dividend payment. Under the Charter Act and the GSE Act, we are not permitted to make a capital distribution if, after making the distribution, we would be undercapitalized. The Director of FHFA, however, may permit us to repurchase shares if the repurchase is made in connection with the issuance of additional shares or obligations in at least an equivalent amount and will reduce our financial obligations or otherwise improve our financial condition. Restrictions Relating to Conservatorship. Our conservator announced on September 7, 2008 that we would not pay any dividends on the common stock or on any series of preferred stock, other than the senior preferred stock. In addition, FHFA’s regulations relating to conservatorship and receivership operations prohibit us from paying any dividends while in conservatorship unless authorized by the Director of FHFA. The Director of FHFA has directed us to make dividend payments on the senior preferred stock on a quarterly basis for every dividend period for which dividends were payable. Restrictions Under Senior Preferred Stock Purchase Agreement and Senior Preferred Stock. The senior preferred stock purchase agreement prohibits us from declaring or paying any dividends on Fannie Mae equity securities (other than the senior preferred stock) without the prior written consent of Treasury. In addition, pursuant to the dividend provisions of the senior preferred stock and quarterly directives from our conservator, we are obligated to pay Treasury each quarter any dividends declared consisting of the amount, if any, by which our net worth as of the end of the immediately preceding fiscal quarter exceeds a $25 billion capital reserve amount. As a result, our net income is not available to common stockholders. For more information on the terms of the senior preferred stock purchase agreement and senior preferred stock, see “ Note 1, Summary of Significant Accounting Policies ” and “ Note 11, Equity .” Additional Restrictions Relating to Preferred Stock. Payment of dividends on our common stock is also subject to the prior payment of dividends on our preferred stock and our senior preferred stock. Payment of dividends on all outstanding preferred stock, other than the senior preferred stock, is also subject to the prior payment of dividends on the senior preferred stock. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Concentrations of credit risk arise when a number of customers and counterparties engage in similar activities or have similar economic characteristics that make them susceptible to similar changes in industry conditions, which could affect their ability to meet their contractual obligations. Based on our assessment of business conditions that could impact our financial results, we have determined that concentrations of credit risk exist among: • single-family and multifamily borrowers (including geographic concentrations and loans with certain higher-risk characteristics); • mortgage insurers; • mortgage sellers and servicers; • multifamily lenders with risk sharing; and • derivative counterparties and parties associated with our off-balance sheet transactions. Concentrations for each of these groups are discussed below. Single-Family Loan Borrowers Regional economic conditions may affect a borrower’s ability to repay his or her mortgage loan and the property value underlying the loan. Geographic concentrations increase the exposure of our portfolio to changes in credit risk. Single-family borrowers are primarily affected by home prices and interest rates. To manage credit risk and comply with legal requirements, we typically require primary mortgage insurance or other credit enhancements if the current LTV ratio ( i.e. , the ratio of the unpaid principal balance of a loan to the current value of the property that serves as collateral) of a single-family conventional mortgage loan is greater than 80% when the loan is delivered to us. Multifamily Loan Borrowers Numerous factors affect a multifamily borrower’s ability to repay the loan and the value of the property underlying the loan. Multifamily loans are generally non-recourse to the borrower. The most significant factors affecting credit risk are rental income, capitalization rates for the mortgaged property, and general economic conditions. The average unpaid principal balance for multifamily loans is significantly larger than for single-family borrowers and, therefore, individual defaults for multifamily borrowers can result in more significant losses. We continually monitor the performance and risk characteristics of our multifamily loans, underlying properties and borrowers on an ongoing basis. As part of our multifamily risk management activities, we perform detailed loan reviews that evaluate property performance, borrower and geographic concentrations, lender qualifications, counterparty risk and contract compliance. We generally require mortgage servicers to obtain and submit periodic property operating information and condition reviews, allowing us to monitor the performance of individual loans. We use this information to evaluate the credit quality of our portfolio, identify potential problem loans and initiate appropriate loss mitigation activities. Geographic Concentration The following table displays the regional geographic concentration of single-family and multifamily loans in our guaranty book of business, measured by the unpaid principal balance of the loans. Geographic Concentration (1) Percentage of Single-Family Conventional Guaranty Book of Business Percentage of Multifamily Guaranty Book of Business As of December 31, As of December 31, 2019 2018 2019 2018 Midwest 15 % 15 % 10 % 10 % Northeast 17 17 15 14 Southeast 22 22 27 26 Southwest 18 18 23 24 West 28 28 25 26 Total 100 % 100 % 100 % 100 % (1) Midwest consists of IL, IN, IA, MI, MN, NE, ND, OH, SD and WI. Northeast consists of CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT and VI. Southeast consists of AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA and WV. Southwest consists of AZ, AR, CO, KS, LA, MO, NM, OK, TX and UT. West consists of AK, CA, GU, HI, ID, MT, NV, OR, WA and WY. Risk Characteristics of our Guaranty Book of Business One of the measures by which we gauge our performance risk is the delinquency status of the mortgage loans in our guaranty book of business. For single-family and multifamily loans, we use this information, in conjunction with housing market and economic conditions, to structure our pricing and our eligibility and underwriting criteria to reflect the current risk of loans with higher-risk characteristics, and in some cases we decide to significantly reduce our participation in riskier loan product categories. Management also uses this data together with other credit risk measures to identify key trends that guide the development of our loss mitigation strategies. Single-Family Credit Risk Characteristics For single-family loans, management monitors the serious delinquency rate, which is the percentage of single-family loans, based on the number of loans that are 90 days or more past due or in the foreclosure process, and loans that have higher risk characteristics, such as high mark-to-market LTV ratios. The following tables display the delinquency status and serious delinquency rates for specified loan categories of our single-family conventional guaranty book of business. As of December 31, 2019 2018 30 Days Delinquent 60 Days Delinquent Seriously Delinquent (1) 30 Days Delinquent 60 Days Delinquent Seriously Delinquent (1) Percentage of single-family conventional guaranty book of business based on UPB 1.07 % 0.29 % 0.59 % 1.17 % 0.32 % 0.69 % Percentage of single-family conventional loans based on loan count 1.27 0.35 0.66 1.37 0.38 0.76 As of December 31, 2019 2018 Percentage of Single-Family of Business Based on UPB Seriously Delinquent Rate (1) Percentage of Single-Family of Business Based on UPB Seriously Delinquent Rate (1) Estimated mark-to-market LTV ratio: Greater than 100% * 10.14 % * 9.85 % Geographical distribution: California 19 0.32 19 0.34 Florida 6 0.84 6 1.16 Illinois 4 0.91 4 0.98 New Jersey 3 1.13 4 1.38 New York 5 1.18 5 1.40 All other states 63 0.64 62 0.73 Product distribution: Alt-A 2 2.95 2 3.35 Vintages: 2004 and prior 2 2.48 3 2.69 2005-2008 4 4.11 5 4.61 2009-2019 94 0.35 92 0.34 * Represents less than 0.5% of single-family conventional business volume or book of business. (1) Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2019 and 2018 . As of December 31, 2019 (1) 2018 (1) 30 Days Delinquent Seriously Delinquent (2) 30 Days Delinquent Seriously Delinquent (2) Percentage of multifamily guaranty book of business 0.02 % 0.04 % 0.02 % 0.06 % As of December 31, 2019 2018 Percentage of Multifamily Guaranty Book of Business (1) Percentage Seriously Delinquent (2)(3) Percentage of Multifamily Guaranty Book of Business (1) Percentage Seriously Delinquent (2)(3) Original LTV ratio: Greater than 80% 1 % — % 1 % — % Less than or equal to 80% 99 0.04 99 0.06 Current DSCR below 1.0 (4) 2 0.48 2 1.38 (1) Calculated based on the aggregate unpaid principal balance of multifamily loans for each category divided by the aggregate unpaid principal balance of loans in our multifamily guaranty book of business. (2) Consists of multifamily loans that were 60 days or more past due as of the dates indicated. (3) Calculated based on the unpaid principal balance of multifamily loans that were seriously delinquent divided by the aggregate unpaid principal balance of multifamily loans for each category included in our multifamily guaranty book of business. (4) Our estimates of current DSCRs are based on the latest available income information for these properties. Although we use the most recently available results from our multifamily borrowers, there is a lag in reporting, which typically can range from 3 to 6 months but in some cases may be longer. For certain properties, we do not receive updated financial information. Mortgage Insurers. Mortgage insurance “risk in force” refers to our maximum potential loss recovery under the applicable mortgage insurance policies in force and is generally based on the loan-level insurance coverage percentage and, if applicable, any aggregate pool loss limit, as specified in the policy. The following table displays our total mortgage insurance risk in force by primary and pool insurance, as well as the total risk-in-force mortgage insurance coverage as a percentage of the single-family conventional guaranty book of business. As of December 31, 2019 2018 Risk in Force Percentage of Single-Family Conventional Guaranty Book of Business Risk in Force Percentage of Single-Family Conventional Guaranty Book of Business (Dollars in millions) Mortgage insurance risk in force: Primary mortgage insurance $ 162,855 $ 152,379 Pool mortgage insurance 339 409 Total mortgage insurance risk in force $ 163,194 6% $ 152,788 5% Mortgage insurance does not protect us from all losses on covered loans. For example, mortgage insurance does not cover us from default risk for properties that suffered damages that were not covered by the hazard insurance we require. Specifically, a property damaged by a flood that was outside a Federal Emergency Management Agency (“FEMA”)-identified Special Flood Hazard Area, where we require coverage, or a property damaged by an earthquake are the most likely scenarios where property damage may result in a default not covered by hazard insurance. The table below displays our mortgage insurer counterparties that provided approximately 10% or more of the risk-in-force mortgage insurance coverage on mortgage loans in our single-family conventional guaranty book of business. Percentage of Risk in Force Coverage by Mortgage Insurer As of December 31, 2019 2018 Counterparty: (1) Arch Capital Group Ltd. 23 % 25 % Radian Guaranty, Inc. 20 21 Mortgage Guaranty Insurance Corp. 18 18 Genworth Mortgage Insurance Corp. (2) 15 15 Essent Guaranty, Inc. 14 12 Others 10 9 Total 100 % 100 % (1) Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty. (2) Genworth Financial, Inc., the ultimate parent company of Genworth Mortgage Insurance Corp., is in the process of being acquired by China Oceanwide Holdings Group Co., Ltd. Upon acquisition, Genworth Mortgage Insurance Corp. will continue to be subject to our ongoing review of financial and operational eligibility requirements. Three of our mortgage insurer counterparties that are currently not approved to write new business are in run-off: PMI Mortgage Insurance Co. (“PMI”), Triad Guaranty Insurance Corporation (“Triad”) and Republic Mortgage Insurance Company (“RMIC”). Entering run-off may close off a source of profits and liquidity that may have otherwise assisted a mortgage insurer in paying claims under insurance policies, and could also cause the quality and speed of its claims processing to deteriorate. These three mortgage insurers provided a combined $3.3 billion , or 2% , of our risk in force mortgage insurance coverage of our single-family conventional guaranty book of business as of December 31, 2019 . PMI and Triad have been paying only a portion of policyholder claims and deferring the remaining portion. PMI is currently paying 74.5% of claims under its mortgage insurance policies in cash and is deferring the remaining 25.5% , and Triad is currently paying 75% of claims in cash and deferring the remaining 25% . It is uncertain whether PMI or Triad will be permitted in the future to pay any remaining deferred policyholder claims and/or increase or decrease the amount of cash they pay on claims. RMIC is no longer deferring payments on policyholder claims and has paid us its previously outstanding deferred payment obligations as well as interest on those obligations; however, RMIC remains in run-off. We have counterparty credit risk relating to the potential insolvency of, or non-performance by, mortgage insurers that insure single-family loans we purchase or guarantee. There is risk that these counterparties may fail to fulfill their obligations to pay our claims under insurance policies. On at least a quarterly basis, we assess our mortgage insurer counterparties’ respective abilities to fulfill their obligations to us. Our assessment includes financial reviews and analyses of the insurers’ portfolios and capital adequacy. If we determine that it is probable that we will not collect all of our claims from one or more of our mortgage insurer counterparties, it could increase our loss reserves, which could adversely affect our results of operations, liquidity, financial condition and net worth. When we estimate the credit losses that are inherent in our mortgage loans and under the terms of our guaranty obligations, we also consider the recoveries that we will receive on primary mortgage insurance, as mortgage insurance recoveries would reduce the severity of the loss associated with defaulted loans. We evaluate the financial condition of our mortgage insurer counterparties and adjust the contractually due recovery amounts to ensure that only probable losses as of the balance sheet date are included in our loss reserve estimate. As a result, if our assessment of one or more of our mortgage insurer counterparties’ ability to fulfill their respective obligations to us worsens, it could increase our loss reserves. As of December 31, 2019 and 2018 , our estimated benefit from mortgage insurance reduced our loss reserves by $410 million and $691 million , respectively. When an insured loan held in our retained mortgage portfolio subsequently goes into foreclosure, we charge off the loan, eliminating any previously-recorded loss reserves, and record REO and a mortgage insurance receivable for the claim proceeds deemed probable of recovery, as appropriate. However, if a mortgage insurer rescinds, cancels or denies insurance coverage, the initial receivable becomes due from the mortgage seller or servicer. We had outstanding receivables of $654 million recorded in “Other assets” in our consolidated balance sheets as of December 31, 2019 and $745 million as of December 31, 2018 related to amounts claimed on insured, defaulted loans excluding government-insured loans. We assessed these outstanding receivables for collectability, and established a valuation allowance of $541 million as of December 31, 2019 and $564 million as of December 31, 2018 , which reduced our claim receivable to the amount considered probable of collection. Mortgage Servicers and Sellers. Mortgage servicers collect mortgage and escrow payments from borrowers, pay taxes and insurance costs from escrow accounts, monitor and report delinquencies, and perform other required activities on our behalf. Our mortgage servicers and sellers may also be obligated to repurchase loans or foreclosed properties, reimburse us for losses or provide other remedies under certain circumstances, such as if it is determined that the mortgage loan did not meet our underwriting or eligibility requirements, if certain loan representations and warranties are violated or if mortgage insurers rescind coverage. Our representation and warranty framework does not require repurchase for loans that have breaches of certain selling representations and warranties if they have met specified criteria for relief. Our business with mortgage servicers is concentrated. The table below displays the percentage of our single-family guaranty book of business serviced by our top five depository single-family mortgage servicers and top five non-depository single-family mortgage servicers, and identifies one servicer that serviced more than 10% of our single-family guaranty book of business based on unpaid principal balance. Percentage of Single-Family Guaranty Book of Business As of December 31, 2019 2018 Wells Fargo Bank, N.A. (together with its affiliates) 17 % 18 % Remaining top five depository servicers 15 16 Top five non-depository servicers 27 22 Total 59 % 56 % There was an increase in the portion of our single-family guaranty book serviced by our top five non-depository servicers in 2019 , particularly for our delinquent single-family loans. Compared with depository financial institutions, these institutions pose additional risks because they may not have the same financial strength or operational capacity, or be subject to the same level of regulatory oversight, as our largest mortgage servicer counterparties, which are mostly depository institutions. The table below displays the percentage of our multifamily guaranty book of business serviced by our top five multifamily mortgage servicers, and identifies two servicers that serviced 10% or more of our multifamily guaranty book of business based on unpaid principal balance. Percentage of Multifamily Guaranty Book of Business As of December 31, 2019 2018 Wells Fargo Bank, N.A. (together with its affiliates) 13 % 14 % Walker & Dunlop, LLC 12 12 Remaining top five servicers 23 22 Total 48 % 48 % If a significant mortgage servicer or seller counterparty, or a number of mortgage servicers or sellers, fails to meet their obligations to us, it could adversely affect our results of operations and financial condition. We mitigate these risks in several ways, including: • establishing minimum standards and financial requirements for our servicers; • monitoring financial and portfolio performance as compared with peers and internal benchmarks; and • for our largest mortgage servicers, conducting periodic on-site and financial reviews to confirm compliance with servicing guidelines and servicing performance expectations. We may take one or more of the following actions to mitigate our credit exposure to mortgage servicers that present a higher risk: • require a guaranty of obligations by higher-rated entities; • transfer exposure to third parties; • require collateral; • establish more stringent financial requirements; • work on-site with underperforming major servicers to improve operational processes; and • suspend or terminate the selling and servicing relationship if deemed necessary. Multifamily Lenders with Risk Sharing. We enter into risk sharing agreements with lenders pursuant to which the lenders agree to bear all or some portion of the credit losses on the covered loans. Our maximum potential loss recovery from lenders under these risk sharing agreements on both Delegated Underwriting and Servicing (“DUS”) and non-DUS multifamily loans was $81.4 billion as of December 31, 2019 , compared with $71.8 billion as of December 31, 2018 . As of December 31, 2019 and 2018 , 44% of our maximum potential loss recovery on multifamily loans was from four DUS lenders. Derivatives Counterparties. For information on credit risk associated with our derivative transactions and repurchase agreements see “ Note 8, Derivative Instruments ” and “ Note 14, Netting Arrangements .” |
Netting Arrangements
Netting Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Netting Arrangements | Netting Arrangements We use master netting arrangements, which allow us to offset certain financial instruments and collateral with the same counterparty, to minimize counterparty credit exposure. The tables below display information related to derivatives, securities purchased under agreements to resell or similar arrangements, and securities sold under agreements to repurchase or similar arrangements, which are subject to an enforceable master netting arrangement or similar agreement that are either offset or not offset in our consolidated balance sheets. As of December 31, 2019 Gross Amount Offset (1) Net Amount Presented in our Consolidated Balance Sheets Amounts Not Offset in our Consolidated Balance Sheets Gross Amount Financial Instruments (2) Collateral (3) Net Amount (Dollars in millions) Assets: OTC risk management derivatives $ 1,354 $ (1,334 ) $ 20 $ — $ — $ 20 Cleared risk management derivatives — 46 46 — — 46 Mortgage commitment derivatives 165 — 165 (101 ) (1 ) 63 Total derivative assets 1,519 (1,288 ) 231 (4 ) (101 ) (1 ) 129 Securities purchased under agreements to resell or similar arrangements (5) 24,928 — 24,928 — (24,928 ) — Total assets $ 26,447 $ (1,288 ) $ 25,159 $ (101 ) $ (24,929 ) $ 129 Liabilities: OTC risk management derivatives $ (1,798 ) $ 1,695 $ (103 ) $ — $ — $ (103 ) Cleared risk management derivatives — (1 ) (1 ) — 1 — Mortgage commitment derivatives (306 ) — (306 ) 101 181 (24 ) Total derivative liabilities (2,104 ) 1,694 (410 ) (4 ) 101 182 (127 ) Securities sold under agreements to repurchase or similar arrangements (5) (478 ) — (478 ) — 475 (3 ) Total liabilities $ (2,582 ) $ 1,694 $ (888 ) $ 101 $ 657 $ (130 ) As of December 31, 2018 Gross Amount Offset (1) Net Amount Presented in our Consolidated Balance Sheets Amounts Not Offset in our Consolidated Balance Sheets Gross Amount Financial Instruments (2) Collateral (3) Net Amount (Dollars in millions) Assets: OTC risk management derivatives $ 2,288 $ (2,273 ) $ 15 $ — $ — $ 15 Cleared risk management derivatives — 7 7 — — 7 Mortgage commitment derivatives 379 — 379 (153 ) (7 ) 219 Total derivative assets 2,667 (2,266 ) 401 (4 ) (153 ) (7 ) 241 Securities purchased under agreements to resell or similar arrangements (5) 48,288 — 48,288 — (48,288 ) — Total assets $ 50,955 $ (2,266 ) $ 48,689 $ (153 ) $ (48,295 ) $ 241 Liabilities: OTC risk management derivatives $ (2,433 ) $ 2,342 $ (91 ) $ — $ — $ (91 ) Cleared risk management derivatives — (27 ) (27 ) — 23 (4 ) Mortgage commitment derivatives (648 ) — (648 ) 153 466 (29 ) Total derivative liabilities (3,081 ) 2,315 (766 ) (4 ) 153 489 (124 ) Total liabilities $ (3,081 ) $ 2,315 $ (766 ) $ 153 $ 489 $ (124 ) (1) Represents the effect of the right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received and accrued interest. (2) Mortgage commitment derivative amounts reflect where we have recognized both an asset and a liability with the same counterparty under an enforceable master netting arrangement but we have not elected to offset the related amounts in our consolidated balance sheets. (3) Represents collateral received that has not been recognized and not offset in our consolidated balance sheets as well as collateral posted which has been recognized but not offset in our consolidated balance sheets. Does not include collateral held or posted in excess of our exposure. The fair value of non-cash collateral we pledged which the counterparty was permitted to sell or repledge was $2.3 billion and $1.9 billion as of December 31, 2019 and 2018 , respectively. The fair value of non-cash collateral received was $24.7 billion and $48.4 billion , of which $23.8 billion and $45.7 billion could be sold or repledged as of December 31, 2019 and 2018 , respectively. None of the underlying collateral was sold or repledged as of December 31, 2019 and 2018 , respectively. (4) Excludes derivative assets of $40 million and $57 million as of December 31, 2019 and 2018 , respectively, and derivative liabilities of $25 million and $11 million recognized in our consolidated balance sheets as of December 31, 2019 and 2018 , respectively, that are not subject to enforceable master netting arrangements. (5) Includes $11.4 billion and $15.4 billion of securities purchased under agreements to resell classified as “Cash and cash equivalents” in our consolidated balance sheets as of December 31, 2019 and 2018 , respectively. Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our consolidated balance sheets. We determine our rights to offset the assets and liabilities presented above with the same counterparty, including collateral posted or received, based on the contractual arrangements entered into with our individual counterparties and various rules and regulations that would govern the insolvency of a derivative counterparty. The following is a description, under various agreements, of the nature of those rights and their effect or potential effect on our financial position. The terms of the majority of our contracts for OTC risk management derivatives are governed under master agreements of the International Swaps and Derivatives Association Inc. (“ISDA”). These agreements provide that all transactions entered into under the agreement with the counterparty constitute a single contractual relationship. An event of default by the counterparty allows the early termination of all outstanding transactions under the same ISDA agreement and we may offset all outstanding amounts related to the terminated transactions including collateral posted or received. The terms of our contracts for cleared derivatives are governed under the rules of the clearing organization and the agreement between us and the clearing member of that clearing organization. In the event of a clearing organization default, all open positions at the clearing organization are closed and a net position (on a clearing member by clearing member basis) is calculated. Unless otherwise transferred, in the event of a clearing member default, all open positions cleared through that clearing member are closed and a net position is calculated. The terms of our contracts for mortgage commitment derivatives are primarily governed by the Fannie Mae Single-Family Selling Guide (“Selling Guide”), for Fannie Mae-approved lenders, or Master Securities Forward Transaction Agreements (“MSFTA”), for counterparties that are not Fannie Mae-approved lenders. In the event of default by the counterparty, both the Guide and the MSFTA allow us to terminate all outstanding transactions under the applicable agreement and offset all outstanding amounts related to the terminated transactions including collateral posted or received. Under the Guide, upon a lender event of default, we generally may offset any amounts owed to a lender against any amounts a lender may owe us under any other existing agreement, regardless of whether or not such other agreements are in default or payments are immediately due. The terms of our contracts for securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by Master Repurchase Agreements, which are based on the guidelines prescribed by the Securities Industry and Financial Markets Association. Master Repurchase Agreements provide that all transactions under the agreement constitute a single contractual relationship. An event of default by the counterparty allows the early termination of all outstanding transactions under the same agreement and we may offset all outstanding amounts related to the terminated transactions including collateral posted or received. We also have securities purchased under agreements to resell which we transact through the Fixed Income Clearing Corporation (“FICC”). All agreements for securities purchased under agreements to resell that are submitted to the FICC for clearing become transactions with the FICC that are subject to FICC clearing rules. In the event of a FICC default, all open positions at the FICC are closed and a net position is calculated. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value 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 nonrecurring basis. Fair Value Measurement Fair value measurement guidance defines fair value, establishes a framework for measuring fair value and sets forth disclosures around fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. The guidance establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority, Level 1, to measurements based on unadjusted quoted prices in active markets for identical assets or liabilities. The next highest priority, Level 2, is given to measurements of assets and liabilities based on limited observable inputs or observable inputs for similar assets and liabilities. The lowest priority, Level 3, is given to measurements based on unobservable inputs. Recurring Changes in Fair Value The following tables display our assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option. Fair Value Measurements as of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment (1) Estimated Fair Value (Dollars in millions) Recurring fair value measurements: Assets: Trading securities: Mortgage-related securities: Fannie Mae $ — $ 3,379 $ 45 $ — $ 3,424 Other agency — 4,489 1 — 4,490 Private-label and other mortgage securities — 629 — — 629 Non-mortgage-related securities: U.S. Treasury securities 39,501 — — — 39,501 Other securities — 79 — — 79 Total trading securities 39,501 8,576 46 — 48,123 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 1,349 171 — 1,520 Other agency — 198 — — 198 Alt-A and subprime private-label securities — 57 — — 57 Mortgage revenue bonds — — 315 — 315 Other — 8 306 — 314 Total available-for-sale securities — 1,612 792 — 2,404 Mortgage loans — 7,137 688 — 7,825 Other assets: Risk management derivatives: Swaps — 1,071 159 — 1,230 Swaptions — 124 — — 124 Netting adjustment — — — (1,288 ) (1,288 ) Mortgage commitment derivatives — 165 — — 165 Credit enhancement derivatives — — 40 — 40 Total other assets — 1,360 199 (1,288 ) 271 Total assets at fair value $ 39,501 $ 18,685 $ 1,725 $ (1,288 ) $ 58,623 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 5,289 $ 398 $ — $ 5,687 Total of Fannie Mae — 5,289 398 — 5,687 Of consolidated trusts — 21,805 75 — 21,880 Total long-term debt — 27,094 473 — 27,567 Other liabilities: Risk management derivatives: Swaps — 1,346 1 — 1,347 Swaptions — 440 11 — 451 Netting adjustment — — — (1,694 ) (1,694 ) Mortgage commitment derivatives — 306 — — 306 Credit enhancement derivatives — — 25 — 25 Total other liabilities — 2,092 37 (1,694 ) 435 Total liabilities at fair value $ — $ 29,186 $ 510 $ (1,694 ) $ 28,002 Fair Value Measurements as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment (1) Estimated Fair Value (Dollars in millions) Assets: Cash equivalents (2) $ 748 $ — $ — $ — $ 748 Trading securities: Mortgage-related securities: Fannie Mae — 1,435 32 — 1,467 Other agency — 3,503 — — 3,503 Private-label and other mortgage securities — 1,305 1 — 1,306 Non-mortgage-related securities: U.S. Treasury securities 35,502 — — — 35,502 Other securities — 89 — — 89 Total trading securities 35,502 6,332 33 — 41,867 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 1,645 152 — 1,797 Other agency — 256 — — 256 Alt-A and subprime private-label securities — 568 24 — 592 Mortgage revenue bonds — — 434 — 434 Other — 8 342 — 350 Total available-for-sale securities — 2,477 952 — 3,429 Mortgage loans — 7,985 937 — 8,922 Other assets: Risk management derivatives: Swaps — 1,962 115 — 2,077 Swaptions — 211 — — 211 Netting adjustment — — — (2,266 ) (2,266 ) Mortgage commitment derivatives — 342 37 — 379 Credit enhancement derivatives — — 57 — 57 Total other assets — 2,515 209 (2,266 ) 458 Total assets at fair value $ 36,250 $ 19,309 $ 2,131 $ (2,266 ) $ 55,424 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 6,475 $ 351 $ — $ 6,826 Total of Fannie Mae — 6,475 351 — 6,826 Of consolidated trusts — 23,552 201 — 23,753 Total long-term debt — 30,027 552 — 30,579 Other liabilities: Risk management derivatives: Swaps — 2,089 2 — 2,091 Swaptions — 342 — — 342 Netting adjustment — — — (2,315 ) (2,315 ) Mortgage commitment derivatives — 646 2 — 648 Credit enhancement derivatives — — 11 — 11 Total other liabilities — 3,077 15 (2,315 ) 777 Total liabilities at fair value $ — $ 33,104 $ 567 $ (2,315 ) $ 31,356 (1) Derivative contracts are reported on a gross basis by level. The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. (2) Cash equivalents are comprised of U.S. Treasuries that have a maturity at the date of acquisition of three months or less. The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The tables also display gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized in our consolidated statements of operations and comprehensive income for Level 3 assets and liabilities. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2019 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2019 (1) Balance, December 31, 2018 Included in Net Income Included in Total OCI Gains/(Losses) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2019 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 32 $ 3 $ — $ 77 $ (22 ) $ — $ (16 ) $ (108 ) $ 79 $ 45 $ 1 $ — Other agency — — — — — — — — 1 1 — — Private-label and other mortgage securities 1 — — — — — (1 ) — — — — — Total trading securities $ 33 $ 3 (6)(7) $ — $ 77 $ (22 ) $ — $ (17 ) $ (108 ) $ 80 $ 46 $ 1 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 152 $ — $ 7 $ — $ — $ — $ (8 ) $ (103 ) $ 123 $ 171 $ — $ 6 Alt-A and subprime private-label securities 24 5 (5 ) — (23 ) — (1 ) — — — — — Mortgage revenue bonds 434 1 (3 ) — (5 ) — (112 ) — — 315 — (1 ) Other 342 13 (10 ) — — — (37 ) (3 ) 1 306 — (8 ) Total available-for-sale securities $ 952 $ 19 (7)(8) $ (11 ) $ — $ (28 ) $ — $ (158 ) $ (106 ) $ 124 $ 792 $ — $ (3 ) Mortgage loans $ 937 $ 46 (6)(7) $ — $ — $ (52 ) $ — $ (136 ) $ (254 ) $ 147 $ 688 $ 26 $ — Net derivatives 194 109 (6) — — — — (119 ) (10 ) (12 ) 162 3 — Long-term debt: Of Fannie Mae: Senior floating (351 ) (47 ) (6) — — — — — — — (398 ) (47 ) — Of consolidated trusts (201 ) (8 ) (6)(7) — — — (2 ) 19 200 (83 ) (75 ) (4 ) — Total long-term debt $ (552 ) $ (55 ) $ — $ — $ — $ (2 ) $ 19 $ 200 $ (83 ) $ (473 ) $ (51 ) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2018 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2018 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2018 (1) Balance, December 31, 2017 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2018 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 971 $ 163 $ — $ 1 $ (1,059 ) $ — $ (1 ) $ (44 ) $ 1 $ 32 $ 4 $ — Other agency 35 (1 ) — — — — (1 ) (33 ) — — — — Private-label and other mortgage securities 195 (85 ) — — — — (5 ) (104 ) — 1 — — Total trading securities $ 1,201 $ 77 (6)(7) $ — $ 1 $ (1,059 ) $ — $ (7 ) $ (181 ) $ 1 $ 33 $ 4 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 208 $ 2 $ 1 $ — $ — $ — $ (10 ) $ (49 ) $ — $ 152 $ — $ — Alt-A and subprime private-label securities 77 — (45 ) — — — (4 ) (4 ) — 24 — 1 Mortgage revenue bonds 671 — (7 ) — (22 ) — (208 ) — — 434 — (2 ) Other 357 28 (2 ) — — — (41 ) — — 342 — 1 Total available-for-sale securities $ 1,313 $ 30 (7)(8) $ (53 ) $ — $ (22 ) $ — $ (263 ) $ (53 ) $ — $ 952 $ — $ — Mortgage loans $ 1,116 $ 38 (6)(7) $ — $ — $ — $ — $ (216 ) $ (162 ) $ 161 $ 937 $ 14 $ — Net derivatives 134 (38 ) (6) — — — — 45 53 — 194 40 — Long-term debt: Of Fannie Mae: Senior floating (376 ) 25 (6) — — — — — — — (351 ) 25 — Of consolidated trusts (582 ) 9 (6)(7) — — — 1 44 541 (214 ) (201 ) (2 ) — Total long-term debt $ (958 ) $ 34 $ — $ — $ — $ 1 $ 44 $ 541 $ (214 ) $ (552 ) $ 23 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2017 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2017 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2017 (1) Balance, December 31, 2016 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2017 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 835 $ 41 $ — $ 64 $ — $ — $ (5 ) $ (991 ) $ 1,027 $ 971 $ 6 $ — Other agency — — — 35 — — — — — 35 — — Private-label and other mortgage securities 292 18 — — (81 ) — (34 ) — — 195 5 — Total trading securities $ 1,127 $ 59 (6)(7) $ — $ 99 $ (81 ) $ — $ (39 ) $ (991 ) $ 1,027 $ 1,201 $ 11 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 230 $ 2 $ (1 ) $ — $ — $ — $ (9 ) $ (72 ) $ 58 $ 208 $ — $ — Other agency 5 — — — (1 ) — — (4 ) — — — — Alt-A and subprime private-label securities 217 54 (53 ) — (105 ) — (36 ) — — 77 — 4 Mortgage revenue bonds 1,272 35 (11 ) — (392 ) — (233 ) — — 671 — 4 Other 429 8 (11 ) — (5 ) — (64 ) — — 357 — (7 ) Total available-for-sale securities $ 2,153 $ 99 (7)(8) $ (76 ) $ — $ (503 ) $ — $ (342 ) $ (76 ) $ 58 $ 1,313 $ — $ 1 Mortgage loans $ 1,197 $ 45 (6)(7) $ — $ 5 $ — $ — $ (233 ) $ (70 ) $ 172 $ 1,116 $ 25 $ — Net derivatives 44 111 (6) — — — — (22 ) 6 (5 ) 134 13 — Long-term debt: Of Fannie Mae: Senior floating (347 ) (29 ) (6) — — — — — — — (376 ) (29 ) — Of consolidated trusts (241 ) (9 ) (6)(7) — — — (2 ) 66 388 (784 ) (582 ) (11 ) — Total long-term debt $ (588 ) $ (38 ) $ — $ — $ — $ (2 ) $ 66 $ 388 $ (784 ) $ (958 ) $ (40 ) $ — (1) Gains (losses) included in other comprehensive income are included in “Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes” in our consolidated statements of operations and comprehensive income. (2) Purchases and sales include activity related to the consolidation and deconsolidation of assets of securitization trusts. For 2018, includes the dissolution of a Fannie Mae-wrapped private-label securities trust. (3) Issues and settlements include activity related to the consolidation and deconsolidation of liabilities of securitization trusts. (4) Transfers into and out of Level 3 consisted primarily of Fannie Mae securities backed by private-label mortgage-related securities. Prices for these securities are based on inputs that were not readily observable. Transfers out of Level 3 also occurred for Alt-A loans and subprime private-label mortgage-related securities. Prices for these securities were available from multiple third-party vendors and demonstrated an increased and sustained level of observability over time. (5) Amount represents temporary changes in fair value. Amortization, accretion and OTTI are not considered unrealized and are not included in this amount. (6) Gains (losses) are included in “ Fair value gains (losses), net ” in our consolidated statements of operations and comprehensive income. (7) Gains (losses) are included in “ Net interest income ” in our consolidated statements of operations and comprehensive income. (8) Gains (losses) are included in “ Investment gains, net The following tables display valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the reporting date. Fair Value Measurements as of December 31, 2019 Fair Value Significant Valuation Techniques Significant Unobservable Inputs (1) Range (1) Weighted - Average (1)(2) (Dollars in millions) Recurring fair value measurements: Trading securities: Mortgage-related securities: Agency (3) $ 46 Various Available-for-sale securities: Mortgage-related securities: Agency (3) 107 Consensus 64 Various Total agency 171 Mortgage Revenue Bonds 222 Single Vendor Spreads (bps) 23.0 - 205.1 76.1 93 Various Total mortgage revenue bonds 315 Other 267 Discounted Cash Flow Spreads (bps) 300.0 300.0 39 Various Total other 306 Total available-for-sale securities $ 792 Net derivatives $ 147 Dealer Mark 15 Various Total net derivatives $ 162 Fair Value Measurements as of December 31, 2018 Fair Value Significant Valuation Techniques Significant Unobservable Inputs (1) Range (1) Weighted - Average (1)(2) (Dollars in millions) Recurring fair value measurements: Trading securities: Mortgage-related securities: Agency (3) $ 32 Various Private-label and other mortgage securities 1 Various Total trading securities $ 33 Available-for-sale securities: Mortgage-related securities: Agency (3) $ 152 Various Alt-A and subprime private-label securities 24 Various Mortgage revenue bonds 349 Single Vendor Spreads (bps) (0.5) - 332.8 59.0 85 Various Total mortgage revenue bonds 434 Other 294 Discounted Cash Flow Default Rate (%) 4.7 4.7 Prepayment Speed (%) 8.2 8.2 Severity (%) 70.0 70.0 Spreads (bps) 75.4 - 390.0 389.1 48 Various Total other 342 Total available-for-sale securities $ 952 Net derivatives $ 113 Dealer Mark 81 Various Total net derivatives $ 194 (1) Valuation techniques for which no unobservable inputs are disclosed generally reflect the use of third-party pricing services or dealers, and the range of unobservable inputs applied by these sources is not readily available or cannot be reasonably estimated. Where we have disclosed unobservable inputs for consensus and single vendor techniques, those inputs are based on our validations performed at the security level using discounted cash flows. (2) Unobservable inputs were weighted by the relative fair value of the instruments. (3) Includes Fannie Mae and Freddie Mac securities. In our consolidated balance sheets certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment). We held no Level 1 assets or liabilities as of December 31, 2019 or December 31, 2018 that were measured on a nonrecurring basis. We held $274 million and $91 million in Level 2 assets, comprised of mortgage loans held for sale and mortgage loans held for investment that were individually impaired. We had no Level 2 liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2019 or December 31, 2018 . The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. The significant unobservable inputs related to these techniques primarily relate to collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property. Fair Value Measurements as of December 31, Valuation Techniques 2019 2018 (Dollars in millions) Nonrecurring fair value measurements: Mortgage loans held for sale, at lower of cost or fair value Consensus $ 471 $ 631 Single Vendor 605 1,119 Total mortgage loans held for sale, at lower of cost or fair value 1,076 1,750 Single-family mortgage loans held for investment, at amortized cost Internal Model 555 818 Multifamily mortgage loans held for investment, at amortized cost Asset Manager Estimate 24 102 Various 16 40 Total multifamily mortgage loans held for investment, at amortized cost 40 142 Acquired property, net: (1) Single-family Accepted Offers 101 151 Appraisals 362 419 Walk Forwards 240 181 Internal Model 164 219 Various 51 41 Total single-family 918 1,011 Multifamily Various 9 50 Total nonrecurring assets at fair value $ 2,598 $ 3,771 (1) The most commonly used techniques in our valuation of acquired property are a proprietary home price model and third-party valuations (both current and walk forward). Based on the number of properties measured as of December 31, 2019 , these methodologies comprised approximately 85% of our valuations, while accepted offers comprised approximately 12% of our valuations. Based on the number of properties measured as of December 31, 2018 , these methodologies comprised approximately 82% of our valuations, while accepted offers comprised approximately 15% of our valuations. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations. Instruments Valuation Techniques Classification U.S Treasury Securities We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy. Level 1 Trading Securities and Available-for-Sale Securities We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Dealer Mark: Uses one dealer price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Consensus: Uses an average of two or more vendor prices for similar securities. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Level 2 and 3 Discounted Cash Flow: In the absence of prices provided by third-party pricing services supported by observable market data, we estimate the fair value of a portion of our securities using a discounted cash flow technique that uses inputs such as default rates, prepayment speeds, loss severity and spreads based on market assumptions where available. For private-label securities, an increase in unobservable prepayment speeds in isolation would generally result in an increase in fair value, and an increase in unobservable spreads, severity rates or default rates in isolation would generally result in a decrease in fair value. For mortgage revenue bonds classified as Level 3 of the valuation hierarchy, an increase in unobservable spreads would result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of our recurring Level 3 securities above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs. Mortgage Loans Held for Investment Build-up: We derive the fair value of performing mortgage loans using a build-up valuation technique starting with the base value for our Fannie Mae MBS with similar characteristics and then add or subtract the fair value of the associated guaranty asset, guaranty obligation (“GO”) and master servicing arrangement. We set the GO equal to the estimated fair value we would receive if we were to issue our guaranty to an unrelated party in a stand-alone arm’s length transaction at the measurement date. The fair value of the GO is estimated based on our current guaranty pricing for loans underwritten after 2008 and our internal valuation models considering management’s best estimate of key loan characteristics for loans underwritten before 2008. Our performing loans are generally classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that unobservable inputs are significant, the loans are classified as Level 3 of the valuation hierarchy. Level 2 and 3 Consensus: Calculated through the extrapolation of indicative sample bids obtained from multiple active market participants plus the estimated value of any applicable mortgage insurance, the estimated fair value using the Consensus method represents an estimate of the prices we would receive if we were to sell these single-family nonperforming and certain reperforming loans in the whole-loan market. The fair value of any mortgage insurance is estimated by taking the loan-level coverage and adjusting it by the expected claims paying ability of the associated mortgage insurer. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. We estimate the fair value for a portion of our senior-subordinated trust structures using the average of two or more vendor prices at the security level as a proxy for estimating loan fair value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. Single Vendor: We estimate the fair value of our reverse mortgages using the single vendor valuation technique. Internal Model: The internal model used in this process applies one of following two approaches when valuing the collateral depending on the historical accuracy of the two approaches. (1) The comparable foreclosed property sales approach is used in the majority of the internal model valuations. The comparable foreclosed property sales approach uses various factors such as geographic distance, transaction time and the value difference. (2) The median Metropolitan Statistical Area (“MSA”) approach is based on the median of all the foreclosure sales of REOs in a specific MSA or state when there is not enough REO sales in a specific MSA. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. Instruments Valuation Techniques Classification Mortgage Loans Held for Investment Appraisals: Uses appraisals to estimate the fair value for a portion of our multifamily loans based on either estimated replacement cost, the present value of future cash flows, or sales of similar properties. Significant unobservable inputs include estimated replacement or construction costs, property net operating income, capitalization rates, and adjustments made to sales of comparable properties based on characteristics such as financing, conditions of sale, and physical characteristics of the property. Broker Price Opinion (“BPO”): Uses BPO to estimate the fair value for a portion of our multifamily loans. This technique uses both current property value and the property value adjusted for stabilization and market conditions. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. Asset Manager Estimate (“AME”): This technique uses the net operating income and tax assessments of the specific property as well as MSA-specific market capitalization rates and average per unit sales values to estimate property fair value. Level 2 and 3 An increase in prepayment speeds in isolation would generally result in an increase in the fair value of our mortgage loans classified as Level 3 of the valuation hierarchy, and an increase in severity rates, default rates or spreads in isolation would generally result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of the mortgage loans classified as Level 3 above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs. Acquired Property, Net and Other Assets Single-family acquired property valuation techniques Appraisal: An appraisal is an estimate based on recent historical data of the value of a specific property by a certified or licensed appraiser. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s use of specific market research and a sales comparison approach that is similar to the appraisal process. This information, all of which is unobservable, is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value. Level 3 Appraisal and Broker Price Opinion Walk Forwards (“Walk Forwards”): We use these techniques to adjust appraisal and broker price opinion valuations for changing market conditions by applying a walk forward factor based on local price movements since the time the third-party value was obtained. Internal Model: We use an internal model to estimate fair value for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Multifamily acquired property valuation techniques Appraisals: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Broker Price Opinions: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Asset Manager Estimate (“AME”): We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Derivatives Assets and Liabilities (collectively “Derivatives”) The valuation process for the majority of our risk management derivatives uses observable market data provided by third-party sources, resulting in Level 2 classification of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Internal Model: We use internal models to value interest-rate derivatives which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount cash flows to present value. Dealer Mark: Certain highly complex structured swaps primarily use a single dealer mark due to lack of transparency in the market and may be modeled using observable interest rates and volatility levels as well as significant unobservable assumptions, resulting in Level 3 classification of the valuation hierarchy. Mortgage commitment derivatives that use observable market data, quotes and actual transaction price levels adjusted for market movement are typically classified as Level 2 of the valuation hierarchy. To the extent mortgage commitment derivatives include adjustments for market movement that cannot be corroborated by observable market data, we classify them as Level 3 of the valuation hierarchy. Level 2 and 3 Instruments Valuation Techniques Classification Debt of Fannie Mae and Consolidated Trusts We classify debt instruments that have quoted market prices in active markets for similar liabilities when traded as assets as Level 2 of the valuation hierarchy. For all valuation techniques used for debt instruments where there is limited activity or less transparency around these inputs to the valuation, these debt instruments are classified as Level 3 of the valuation hierarchy. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value for similar liabilities when traded as assets. Single Vendor: Uses a single vendor price that represents estimated fair value for these liabilities when traded as assets. Discounted Cash Flow: Uses spreads based on market assumptions where available. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Trading Securities and Available-for-Sale Securities.” Level 2 and 3 Fair Value of Financial Instruments The following table displays the carrying value and estimated fair value of our financial instruments. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that we do not record in our consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes all non-financial instruments; therefore, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities. As of December 31, 2019 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Netting Adjustment Estimated (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 61,407 $ 50,057 $ 11,350 $ — $ — $ 61,407 Federal funds sold and securities purchased under agreements to resell or similar arrangements 13,578 — 13,578 — — 13,578 Trading securities 48,123 39,501 8,576 46 — 48,123 Available-for-sale securities 2,404 — 1,612 792 — 2,404 Mortgage loans held for sale 6,773 — 229 7,054 — 7,283 Mortgage loans held for investment, net of allowance for loan losses 3,327,389 — 3,270,535 127,650 — 3,398,185 Advances to lenders 6,453 — 6,451 2 — 6,453 Derivative assets at fair value 271 — 1,360 199 (1,288 ) 271 Guaranty assets and buy-ups 142 — — 305 — 305 Total financial assets $ 3,466,540 $ 89,558 $ 3,313,691 $ 136,048 $ (1,288 ) $ 3,538,009 Financial liabilities: Federal funds purchased and securities sold under agreements to repurchase $ 478 $ — $ 478 $ — $ — $ 478 Short-term debt: Of Fannie Mae 26,662 — 26,667 — — 26,667 Long-term debt: Of Fannie Mae 155,585 — 164,144 401 — 164,545 Of consolidated trusts 3,285,139 — 3,312,763 31,827 — 3,344,590 Derivative liabilities at fair value 435 — 2,092 37 (1,694 ) 435 Guaranty obligations 154 — — 97 — 97 Total financial liabilities $ 3,468,453 $ — $ 3,506,144 $ 32,362 $ (1,694 ) $ 3,536,812 As of December 31, 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Netting Adjustment Estimated (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 49,423 $ 34,073 $ 15,350 $ — $ — $ 49,423 Federal funds sold and securities purchased under agreements to resell or similar arrangements 32,938 — 32,938 — — 32,938 Trading securities 41,867 35,502 6,33 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are party to various types of legal actions and proceedings, including actions brought on behalf of various classes of claimants. We also are subject to regulatory examinations, inquiries and investigations, and other information gathering requests. In some of the matters, indeterminate amounts are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. This variability in pleadings, together with our and our counsel’s actual experience in litigating or settling claims, leads us to conclude that the monetary relief that may be sought by plaintiffs bears little relevance to the merits or disposition value of claims. We have substantial and valid defenses to the claims in the proceedings described below and intend to defend these matters vigorously. However, legal actions and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Accordingly, the outcome of any given matter and the amount or range of potential loss at particular points in time is frequently difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel may view the evidence and applicable law. On a quarterly basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, accruals and disclosures. We establish an accrual only for matters when a loss is probable and we can reasonably estimate the amount of such loss. We are often unable to estimate the possible losses or ranges of losses, particularly for proceedings that are in their early stages of development, where plaintiffs seek indeterminate or unspecified damages, where there may be novel or unsettled legal questions relevant to the proceedings, or where settlement negotiations have not occurred or progressed. Given the uncertainties involved in any action or proceeding, regardless of whether we have established an accrual, the ultimate resolution of certain of these matters may be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our net income or loss for that period. In addition to the matters specifically described below, we are involved in a number of legal and regulatory proceedings that arise in the ordinary course of business that we do not expect will have a material impact on our business or financial condition. We have also advanced fees and expenses of certain current and former officers and directors in connection with various legal proceedings pursuant to our bylaws and indemnification agreements. Senior Preferred Stock Purchase Agreements Litigation A consolidated putative class action (“ In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations ”) and two non-class action lawsuits, Arrowood Indemnity Company v. Fannie Mae and Fairholme Funds v. FHFA , filed by Fannie Mae and Freddie Mac shareholders against us, FHFA as our conservator, and Freddie Mac are pending in the U.S. District Court for the District of Columbia. The lawsuits challenge the August 2012 amendment to each company’s senior preferred stock purchase agreement with Treasury. Plaintiffs filed amended complaints in all three lawsuits on November 1, 2017 alleging 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, particularly the right to receive dividends. Plaintiffs seek unspecified damages, equitable and injunctive relief, and costs and expenses, including attorneys’ fees. Plaintiffs in the class action seek to represent several classes of preferred and/or common shareholders of Fannie Mae and/or Freddie Mac who held stock as of the public announcement of the August 2012 amendments. On September 28, 2018, the court dismissed all of the plaintiffs’ claims except for their claims for breach of an implied covenant of good faith and fair dealing. On May 21, 2018, a plaintiff in a non-class action case, Angel v. Federal Home Loan Mortgage Corporation , filed a complaint for declaratory relief and compensatory damages against Fannie Mae (including certain members of its Board of Directors), Freddie Mac (including certain members of its Board of Directors) and FHFA, as conservator, in the U.S. District Court for the District of Columbia. Plaintiff in that case asserts claims for breach of contract, breach of implied covenants of good faith and fair dealing, and aiding and abetting the federal government in avoiding an alleged implicit guarantee of dividend payments. On March 6, 2019, the court granted defendants’ motion to dismiss and on March 18, 2019, plaintiff moved to alter or amend the judgment and to file an amended complaint. On May 24, 2019, the court denied this motion. On June 19, 2019, plaintiff filed a notice of appeal of the court’s dismissal and related orders with the U.S. Court of Appeals for the District of Columbia Circuit. Given the stage of these lawsuits, the substantial and novel legal questions that remain, and our substantial defenses, we are currently unable to estimate the reasonably possible loss or range of loss arising from this litigation. Unconditional Purchase and Lease Commitments We have unconditional commitments related to the purchase of loans and mortgage-related securities. These include both on- and off-balance sheet commitments. A portion of these have been recorded as derivatives in our consolidated balance sheets. We lease certain premises and equipment under agreements that expire at various dates through September 30, 2033 . Some of these leases provide for payment by the lessee of property taxes, insurance premiums, cost of maintenance and other costs. Rental expenses for operating leases were $95 million , $100 million and $61 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table summarizes by remaining maturity, non-cancelable future commitments related to loan and mortgage purchases, operating leases and other agreements. As of December 31, 2019 Loans and Mortgage-Related Securities (1) Operating Leases (2) Other (3) (Dollars in millions) 2020 $ 74,283 $ 59 $ 109 2021 — 55 40 2022 — 56 6 2023 — 49 — 2024 — 50 — Thereafter — 475 — Total $ 74,283 $ 744 $ 155 (1) Primarily includes $74.0 billion that has been accounted for as mortgage commitment derivatives. (2) Includes amounts related to office buildings and equipment leases. (3) Includes purchase commitments for certain telecommunications services, computer software and services, and other agreements and commitments. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | Selected Quarterly Financial Information (Unaudited) The consolidated statements of operations for the quarterly periods in 2019 and 2018 are unaudited and in the opinion of management include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our consolidated statements of operations. Certain prior period amounts have been reclassified to conform to the current period presentation. The operating results for the interim periods are not necessarily indicative of the operating results to be expected for a full year or for other interim periods. For the 2019 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 427 $ 432 $ 418 $ 350 Available-for-sale securities 53 45 40 37 Mortgage loans 29,768 29,379 28,858 28,759 Federal funds sold and securities purchased under agreements to resell or similar arrangements 263 257 178 145 Other 32 41 47 43 Total interest income 30,543 30,154 29,541 29,334 Interest expense: Short-term debt (125 ) (119 ) (125 ) (132 ) Long-term debt (25,685 ) (24,885 ) (24,187 ) (23,352 ) Total interest expense (25,810 ) (25,004 ) (24,312 ) (23,484 ) Net interest income 4,733 5,150 5,229 5,850 Benefit for credit losses 650 1,225 1,857 279 Net interest income after benefit for credit losses 5,383 6,375 7,086 6,129 Investment gains, net 133 461 253 923 Fair value gains (losses), net (831 ) (754 ) (713 ) 84 Fee and other income 227 246 402 301 Non-interest income (loss) (471 ) (47 ) (58 ) 1,308 Administrative expenses: Salaries and employee benefits (386 ) (376 ) (361 ) (363 ) Professional services (225 ) (233 ) (241 ) (268 ) Other administrative expenses (133 ) (135 ) (147 ) (155 ) Total administrative expenses (744 ) (744 ) (749 ) (786 ) Foreclosed property expense (140 ) (128 ) (96 ) (151 ) TCCA fees (593 ) (600 ) (613 ) (626 ) Other expenses, net (408 ) (535 ) (571 ) (644 ) Total expenses (1,885 ) (2,007 ) (2,029 ) (2,207 ) Income before federal income taxes 3,027 4,321 4,999 5,230 Provision for federal income taxes (627 ) (889 ) (1,036 ) (865 ) Net income 2,400 3,432 3,963 4,365 Dividends distributed or amounts attributable to senior preferred stock (2,361 ) (3,365 ) (3,977 ) (4,266 ) Net income (loss) attributable to common stockholders $ 39 $ 67 $ (14 ) $ 99 Earnings per share: Basic $ 0.01 $ 0.01 $ 0.00 $ 0.02 Diluted 0.01 0.01 0.00 0.02 Weighted-average common shares outstanding: Basic 5,762 5,762 5,762 5,762 Diluted 5,893 5,893 5,762 5,893 For the 2018 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 236 $ 318 $ 363 $ 419 Available-for-sale securities 71 50 54 55 Mortgage loans 28,034 28,307 28,723 29,541 Federal funds sold and securities purchased under agreements to resell or similar arrangements 142 149 166 285 Other 31 33 38 34 Total interest income 28,514 28,857 29,344 30,334 Interest expense: Short-term debt (107 ) (110 ) (114 ) (137 ) Long-term debt (23,175 ) (23,370 ) (23,861 ) (25,224 ) Total interest expense (23,282 ) (23,480 ) (23,975 ) (25,361 ) Net interest income 5,232 5,377 5,369 4,973 Benefit for credit losses 217 1,296 716 1,080 Net interest income after benefit for credit losses 5,449 6,673 6,085 6,053 Investment gains, net 250 277 166 259 Fair value gains (losses), net 1,045 229 386 (539 ) Fee and other income 320 239 271 149 Non-interest income (loss) 1,615 745 823 (131 ) Administrative expenses: Salaries and employee benefits (381 ) (365 ) (355 ) (350 ) Professional services (243 ) (254 ) (247 ) (288 ) Other administrative expenses (126 ) (136 ) (138 ) (176 ) Total administrative expenses (750 ) (755 ) (740 ) (814 ) Foreclosed property expense (162 ) (139 ) (159 ) (157 ) TCCA fees (557 ) (565 ) (576 ) (586 ) Other expenses, net (203 ) (366 ) (377 ) (307 ) Total expenses (1,672 ) (1,825 ) (1,852 ) (1,864 ) Income before federal income taxes 5,392 5,593 5,056 4,058 Provision for federal income taxes (1,131 ) (1,136 ) (1,045 ) (828 ) Net income 4,261 4,457 4,011 3,230 Dividends distributed or amounts attributable to senior preferred stock (938 ) (4,459 ) (3,975 ) (3,241 ) Net income (loss) attributable to common stockholders $ 3,323 $ (2 ) $ 36 $ (11 ) Earnings per share: Basic $ 0.58 $ 0.00 $ 0.01 $ 0.00 Diluted 0.56 0.00 0.01 0.00 Weighted-average common shares outstanding: Basic 5,762 5,762 5,762 5,762 Diluted 5,893 5,762 5,893 5,762 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). To conform to our current period presentation, we have reclassified certain amounts reported in our prior periods’ consolidated financial statements. |
Segment Reporting Policy | We have two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to loans secured by properties containing five or more residential units. We describe the management reporting and allocation process used to generate our segment results in “ Note 10, Segment Reporting .” We have two reportable business segments: Single-Family and Multifamily. The chief operating decision maker allocates resources and assesses performance based on these two business segments. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our consolidated results of operations. |
Single-Family Guaranty Fees 10 Basis Points Increase due to the Temporary Payroll Tax Cut Continuation Act of 2011 Provision Policy | Effective April 1, 2012, we increased the guaranty fee on all single-family residential mortgages delivered to us by 10 basis points. FHFA and Treasury advised us to remit this fee increase to Treasury with respect to all loans acquired by us on or after April 1, 2012 and before January 1, 2022, and to continue to remit these amounts to Treasury on and after January 1, 2022 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated. The resulting fee |
Use of Estimates Policy | Use of Estimates Preparing consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities as of the dates of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting periods. Management has made significant estimates in a variety of areas including, but not limited to, our allowance for loan losses. Actual results could be different from these estimates. |
Principles of Consolidation Policy | Principles of Consolidation Consolidated VIEs If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities and noncontrolling interests of the VIE in its consolidated financial statements. An enterprise is deemed to be the primary beneficiary when the enterprise has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and exposure to benefits and/or losses could potentially be significant to the entity. In general, the investors in the obligations of consolidated VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide a guaranty to the VIE. Unconsolidated VIEs |
Consolidation, Variable Interest Entity Policy | VIE Assessment We have interests in various entities that are considered VIEs. A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine if an entity is a VIE by performing a qualitative analysis, which requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. The primary types of VIE entities with which we are involved are securitization trusts guaranteed by us via lender swap and portfolio securitization transactions, special-purpose vehicles (“SPVs”) associated with certain credit risk transfer programs, limited partnership investments in low-income housing tax credit (“LIHTC”) and other housing partnerships, as well as mortgage and asset-backed trusts that were not created by us. For more information on the primary types of VIE entities with which we are involved, see “ Note 2, Consolidations and Transfers of Financial Assets .” Primary Beneficiary Determination If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. We are deemed to be the primary beneficiary of a VIE when we have both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and (2) exposure to benefits and/or losses that could potentially be significant to the entity. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities, and noncontrolling interests of the VIE in its consolidated financial statements. The assessment of which party has the power to direct the activities of the VIE may require significant management judgment when (1) more than one party has power or (2) more than one party is involved in the design of the VIE but no party has the power to direct the ongoing activities that could be significant. We continually assess whether we are the primary beneficiary of the VIEs with which we are involved and therefore may consolidate or deconsolidate a VIE through the duration of our involvement. Examples of certain events that may change whether or not we consolidate the VIE include a change in the design of the entity or a change in our ownership in the entity. Measurement of Consolidated Assets and Liabilities When we are the transferor of assets into a VIE that we consolidate at the time of the transfer, we continue to recognize the assets and liabilities of the VIE at the amounts that they would have been recognized if we had not transferred them, and no gain or loss is recognized. For all other VIEs that we consolidate (that is, those for which we are not the transferor), we recognize the assets and liabilities of the VIE in our consolidated financial statements at fair value, and we recognize a gain or loss for the difference between (1) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests, and (2) the net amount of the fair value of the assets and liabilities recognized upon consolidation. However, for the securitization trusts established under our lender swap program, no gain or loss is recognized if the trust is consolidated at formation as there is no difference in the respective fair value of (1) and (2) above. We record gains or losses that are associated with the consolidation of VIEs as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income . If we cease to be deemed the primary beneficiary of a VIE, we deconsolidate the VIE. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in “Investment gains, net” in our consolidated statements of operations and comprehensive income. Purchase/Sale of Fannie Mae Securities We actively purchase and may subsequently sell guaranteed MBS that have been issued through lender swap and portfolio securitization transactions. The accounting for the purchase and sale of our guaranteed MBS issued by the trusts differs based on the characteristics of the securitization trusts and whether the trusts are consolidated. |
Transfers and Servicing of Financial Assets Policy | Transfers of Financial Assets We evaluate each transfer of financial assets to determine whether the transfer qualifies as a sale. If a transfer does not meet the criteria for sale treatment, the transferred assets remain in our consolidated balance sheets and we record a liability to the extent of any proceeds received in connection with the transfer. We record transfers of financial assets in which we surrender control of the transferred assets as sales. When a transfer that qualifies as a sale is completed, we derecognize all assets transferred and recognize all assets obtained and liabilities incurred at fair value. The difference between the carrying basis of the assets transferred and the fair value of the net proceeds from the sale is recorded as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income. Retained interests are primarily derived from transfers associated with our portfolio securitizations in the form of Fannie Mae securities. We separately describe the subsequent accounting, as well as how we determine fair value, for our retained interests in the “Investments in Securities” section of this note. We enter into repurchase agreements that involve contemporaneous trades to purchase and sell securities. These transactions are accounted for as secured financings since the transferor has not relinquished control over the transferred assets. These transactions are reported as securities purchased under agreements to resell and securities sold under agreements to repurchase in our consolidated balance sheets except for securities purchased under agreements to resell on an overnight basis, which are included in cash and cash equivalents in our consolidated balance sheets. |
Cash and Cash Equivalents Policy | Cash and Cash Equivalents, Restricted Cash and Statements of Cash Flows Short-term investments that have a maturity at the date of acquisition of three months or less and are readily convertible to known amounts of cash are generally considered cash equivalents. We also include securities purchased under agreements to resell on an overnight basis in “cash and cash equivalents” in our consolidated balance sheets. We may pledge as collateral certain short-term investments classified as cash equivalents. “Restricted cash” in our consolidated balance sheets represents cash advanced to the extent such amounts are due to, but have not yet been remitted to, MBS certificateholders. Similarly, when we or our servicers collect and hold cash that is due to certain Fannie Mae MBS trusts in advance of our requirement to remit these amounts to the trusts, we recognize the collected cash amounts as restricted cash. In addition, we recognize restricted cash when we and our servicers advance payments on delinquent loans to consolidated Fannie Mae MBS trusts. Cash may also be recognized as restricted cash as a result of restrictions related to certain consolidated partnership funds as well as for certain collateral arrangements for which we do not have the right to use the cash. In the presentation of our consolidated statements of cash flows, we present cash flows from derivatives that do not contain financing elements and mortgage loans held for sale at acquisition as operating activities. We present cash flows from federal funds sold and securities purchased under agreements to resell or similar arrangements as investing activities and cash flows from federal funds purchased and securities sold under agreements to repurchase as financing activities in “Other, net.” We classify cash flows from trading securities based on their nature and purpose. We classify cash flows related to mortgage loans acquired as held-for-investment, including loans of Fannie Mae and loans of consolidated trusts, as either investing activities (for principal repayments or sales proceeds) or operating activities (for interest received from borrowers included as a component of our net income). Cash flows related to debt securities issued by consolidated trusts are classified as either financing activities (for repayments of principal to certificateholders) or operating activities (for interest payments to certificateholders included as a component of our net income). We distinguish between the payments and proceeds related to the debt of Fannie Mae and the debt of consolidated trusts, as applicable. We present our non-cash activities in the consolidated statements of cash flows at the associated unpaid principal balance. |
Available-for-sale Securities Policy | Investments in Securities Securities Classified as Trading or Available-for-Sale Fannie Mae MBS included in “Investments in securities” When we own Fannie Mae MBS issued by unconsolidated trusts, we do not derecognize any components of the guaranty assets, guaranty obligations, or any other outstanding recorded amounts associated with the guaranty transaction because our contractual obligation to the MBS trust remains in force until the trust is liquidated. We determine the fair value of Fannie Mae MBS based on observable market prices because most Fannie Mae MBS are actively traded. For any subsequent purchase or sale, we continue to account for any outstanding recorded amounts associated with the guaranty transaction on the same basis of accounting. Other-Than-Temporary Impairment of Debt Securities We evaluate AFS securities for other-than-temporary impairment (“OTTI”) on a quarterly basis. OTTI is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery. In such cases, we recognize in “ Investment gains, net ” in our consolidated statements of operations and comprehensive income the entire difference between the amortized cost basis of a security and its fair value. OTTI is also considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend to sell the security or it is not more likely than not that we will be required to sell the security before recovery. In these circumstances, we separate the difference between the amortized cost basis of the security and its fair value into the amount representing the credit loss, which we recognize in “ Investment gains, net ” in our consolidated statements of operations and comprehensive income, and the amount related to all other factors, which we recognize in “ Total other comprehensive loss ,” net of taxes, in our consolidated statements of operations and comprehensive income. In periods after we recognize OTTI of debt securities, we use the prospective interest method to recognize interest income. Trading securities are recorded at fair value with subsequent changes in fair value recorded as “ Fair value gains (losses), net Available-for-Sale Securities We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive loss” in our consolidated statements of operations and comprehensive income. We recognize realized gains and losses from the sale of AFS securities in “ Investment gains, net .” Other-Than-Temporary Impairments For AFS securities, OTTI is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell or it is more likely than not that we will be required to sell the security before recovery. Additionally, OTTI is considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend to sell the security or it is not more likely than not we will be required to sell the security before recovery. |
Financing Receivable, Held-for-sale Policy | Loans Held for Sale When we acquire mortgage loans that we intend to sell or securitize via trusts that will not be consolidated, we classify the loans as held for sale (“HFS”). We report the carrying value of HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “ Investment gains, net ” in our consolidated statements of operations and comprehensive income. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify held for investment (“HFI”) loans to HFS loans, based upon a change in our intent, we record the loans at lower of cost or fair value on the date of redesignation. If the amounts charged off upon redesignation exceed the allowance related to the loans, we record a provision for credit losses. If the amounts charged off are less than the allowance related to the loans, we recognize a benefit for credit losses. |
Financing Receivable, Held-for-investment Policy | Loans Held for Investment When we acquire mortgage loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. When we consolidate a securitization trust, we recognize the loans underlying the trust in our consolidated balance sheets. The trusts do not have the ability to sell mortgage loans and the use of such loans is limited exclusively to the settlement of obligations of the trusts. Therefore, mortgage loans acquired with the intent to securitize via consolidated trusts will be classified as HFI in our consolidated balance sheets both prior to and subsequent to their securitization. |
Nonaccrual Loans Policy | Nonaccrual Loans We discontinue accruing interest on loans when we believe collectability of principal or interest is not reasonably assured, which for a single-family loan we have determined, based on our historical experience, to be when the loan becomes two months or more past due according to its contractual terms. Interest previously accrued but not collected is reversed through interest income at the date a loan is placed on nonaccrual status. For loans on nonaccrual status, we recognize income when cash payments are received. We return a non-modified single-family loan to accrual status at the point that the borrower brings the loan current. We return a modified single-family loan to accrual status at the point that the borrower successfully makes all required payments during the trial period (generally three to four months) and the modification is made permanent. We place a multifamily loan on nonaccrual status when the loan becomes three months or more past due according to its contractual terms or is deemed to be individually impaired, unless the loan is well secured such that collectability of principal and accrued interest is reasonably assured. We return a multifamily loan to accrual status when the borrower cures the delinquency of the loan or we otherwise determine that the loan is well secured such that collectability is reasonably assured. |
Troubled Debt Restructurings Policy | Restructured Loans A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulty is considered a troubled debt restructuring (“TDR”). Our loss mitigation programs primarily include modifications that result in the capitalization of past due amounts in combination with interest rate reductions and/or the extension of the loan’s maturity date. Such restructurings are granted to borrowers in financial difficulty on either a permanent or contingent basis, as in the case of modifications with a trial period. We consider these types of loan restructurings to be TDRs. We generally do not include principal or past due interest forgiveness as part of our loss mitigation programs, and, as a result, we generally do not charge off any outstanding principal or accrued interest amounts at the time of loan modification. We believe that the loan underwriting activities we perform as a part of our loan modification process coupled with the borrower’s successful performance during any required trial period provides us reasonable assurance regarding the collectability of the principal and interest due in accordance with the loan’s modified terms, which include any past due interest amounts that are capitalized as principal at the time of modification. As such, the loan is returned to accrual status when the loan modification is completed ( i.e ., at the end of the trial period), and we accrue interest thereafter in accordance with our interest accrual policy. If the loan was on nonaccrual status prior to entering the trial period, it remains on nonaccrual status until the borrower demonstrates performance via the trial period and the modification is finalized. We also engage in other loss mitigation activities with troubled borrowers, which include repayment plans, forbearance arrangements, and modifications that are limited to the capitalization only of past due amounts. For all of these activities, we consider the deferral or capitalization of three or fewer missed payments to represent only an insignificant delay, and thus not a TDR. If we defer or capitalize more than three missed payments either through a legal or informal modification, the delay is no longer considered insignificant, and the restructuring is accounted for as a TDR. We measure impairment of a loan restructured in a TDR individually based on the excess of the recorded investment in the loan over the present value of the expected future cash inflows discounted at the loan’s original effective interest rate. Costs incurred to complete a TDR are expensed as incurred. However, when foreclosure is probable on an individually impaired loan, we measure impairment based on the difference between our recorded investment in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive. |
Allowance for Loan Losses Policy | Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects an estimate of incurred credit losses related to our recorded investment in both single-family and multifamily HFI loans. This population includes both HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. When calculating our allowance for loan losses, we consider only our net recorded investment in the loan at the balance sheet date, which includes the loan’s unpaid principal balance and any applicable cost basis adjustments. When losses on a loan are confirmed, typically through our receipt of property upon foreclosure of the loan or of cash proceeds upon completion of a short sale, we reduce our allowance for loan losses by recording a charge-off. Additionally, we record charge-offs as a reduction to our allowance for loan losses when a loan is determined to be uncollectible, upon the redesignation of loans from HFI to HFS and pursuant to the charge-off provisions of FHFA’s Advisory Bulletin 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” (the “Advisory Bulletin”). The excess of a loan’s unpaid principal balance, accrued interest, and any applicable cost basis adjustments (“our total exposure”) over the fair value of the assets is treated as a charge-off loss that is deducted from the allowance for loan losses. The amount charged off also considers estimated proceeds from primary mortgage insurance or other credit enhancements that are either contractually attached to a loan or that were entered into contemporaneously with and in contemplation of a guaranty or loan purchase transaction as a recovery of our total exposure, up to the amount of loss recognized as a charge-off. We record additional proceeds from primary mortgage insurance and credit enhancements in excess of our total exposure as a recovery of any forgone contractually past due interest, and then as an offset to the expenses recorded in “Foreclosed property expense” in our consolidated statements of operations and comprehensive income when received. We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option. When calculating our allowance for loan losses, we consider the unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date. |
Impaired Financing Receivable Policy | Single-Family Loans We recognize credit losses related to groups of similar single-family HFI loans that are not individually impaired when (1) available information as of each balance sheet date indicates that it is probable a loss has occurred and (2) the amount of the loss can be reasonably estimated. We aggregate such loans, based on similar risk characteristics, for purposes of estimating incurred credit losses and establish a collective single-family loss reserve using an econometric model that derives an overall loss reserve estimate. The estimate takes into account multiple factors which include but are not limited to origination year, loan product type, mark-to-market loan-to-value (“LTV”) ratio, and delinquency status. Once loans are aggregated, there typically is not a single, distinct event that would result in an individual loan or pool of loans being impaired. In determining our collective reserve, we base our allowance methodology on historical events and trends, such as loss severity (in event of default), default rates, and recoveries from mortgage insurance contracts and other credit enhancements that provide loan-level loss coverage and are either contractually attached to a loan or that were entered into contemporaneously with and in contemplation of a guaranty or loan purchase transaction. We use recent regional historical sales and appraisal information, including the sales of our own foreclosed properties, to develop our loss severity estimates for all loan categories. Our allowance calculation also incorporates a loss confirmation period (the anticipated time lag between a credit loss event and the confirmation of the credit loss resulting from that event) to ensure our allowance estimate captures credit losses that have been incurred as of the balance sheet date but have not been confirmed. In addition, management performs a review of the observable data used in its estimate to ensure it is representative of prevailing economic conditions and other events existing as of the balance sheet date. Individually Impaired Single-Family Loans Individually impaired single-family loans currently consist of those we restructure in a TDR. We consider a loan to be impaired when, based on current information, it is probable that we will not receive all amounts due, including interest, in accordance with the contractual terms of the loan agreement. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment and shortfalls in amounts received. Determination of whether a delay in payment or shortfall in amount is more than insignificant requires management’s judgment as to the facts and circumstances surrounding the loan. Our measurement of impairment on an individually impaired loan follows the method that is most consistent with our expectations of recovery of our recorded investment in the loan. When a loan has been restructured, we measure impairment using a cash flow analysis discounted at the loan’s original effective interest rate. If we expect to recover some or all of our recorded investment in an individually impaired loan through probable foreclosure of the underlying collateral, we measure impairment based on the difference between our recorded investment in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive. For individually impaired loans that we believe are probable of foreclosure, we take into consideration the sales prices of foreclosed properties in determining the value of the underlying real estate collateral. We use internal models to project cash flows used to assess impairment of individually impaired loans, and generally update the market and loan characteristic inputs we use in these models monthly, using month-end data. Market inputs include information such as interest rates, volatility and spreads, while loan characteristic inputs include information such as mark-to-market LTV ratios and delinquency status. The loan characteristic inputs are key factors that affect the predicted rate of default for loans evaluated for impairment through our internal cash flow models. For example, loans with an unsuccessful trial modification, which are often accompanied by high delinquency rates, have much higher predicted default rates compared to performing loans with completed modifications, particularly those with a significant payment reduction in the borrower’s required monthly payment. We evaluate the reasonableness of our models by comparing the results with actual performance and our assessment of current market conditions. In addition, we review our models at least annually for reasonableness and predictive ability in accordance with our corporate model review policy. Accordingly, we believe the projected cash flows generated by our models that we use to assess impairment appropriately reflect the expected future performance of the loans. Multifamily Loans We identify multifamily loans for evaluation for impairment through a credit risk assessment process. If we determine that a multifamily loan is individually impaired, we generally measure impairment on that loan based on the fair value of the underlying collateral less estimated costs to sell the property. For groups of smaller-balance homogeneous multifamily loans, we evaluate collectively for impairment. We establish a collective multifamily loss reserve for all loans in our multifamily guaranty book of business that are not individually impaired, using an internal model that applies loss factors to loans in similar risk categories. We categorize loan credit risk based on relevant observable data about a borrower’s ability to pay, including multifamily market fundamentals such as vacancy rates and rents, review of available current borrower financial information, operating statements on the underlying collateral, current debt service coverage ratios (“DSCRs”), historical payment experience, estimates of the current collateral values and other related credit documentation. For each risk category, certain observed default probability and loss severity (in event of default) factors, based on historical performance of loans in the same risk category, are applied against our recorded investment in the loans to determine an appropriate allowance. Such performance data reflect historical delinquencies and charge-offs, as well as loan size. In addition, we consider any credit enhancements such as letters of credit or loss sharing arrangements with our lenders. |
Advances to Lenders Policy | Advances to Lenders Advances to lenders represent our payments of cash in exchange for the receipt of mortgage loans from lenders in a transfer that is accounted for as a secured lending arrangement. These transfers primarily occur when we provide early funding to lenders for loans that they will subsequently either sell to us or securitize into a Fannie Mae MBS that they will deliver to us. We individually negotiate early lender funding advances with our lender customers. Early lender funding advances have terms up to 60 days and earn a short-term market rate of interest. |
Financing Receivable, Held-for-investment, Foreclosed Asset Policy | Acquired Property, Net We recognize foreclosed property ( i.e. , “Acquired property, net”) upon the earlier of the loan foreclosure event or when we take physical possession of the property ( i.e. , through a deed-in-lieu of foreclosure transaction). We initially measure foreclosed property at its fair value less its estimated costs to sell. We treat any excess of our recorded investment in the loan over the fair value less estimated costs to sell the property as a charge-off to the “Allowance for loan losses” in our consolidated balance sheets. Any excess of the fair value less estimated costs to sell the property over our recorded investment in the loan is recognized first to recover any previously charged-off amounts, then to recover any forgone, contractually due interest, and lastly to “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. We classify foreclosed properties as HFS when we intend to sell the property and the following conditions are met at either acquisition or within a relatively short period thereafter: we are actively marketing the property and it is available for immediate sale in its current condition such that the sale is reasonably expected to take place within one year. We report these properties at the lower of their carrying amount or fair value less estimated selling costs. We do not depreciate these properties. We recognize a loss for any subsequent write-down of the property to its fair value less its estimated costs to sell through a valuation allowance with an offsetting charge to “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. We recognize a recovery for any subsequent increase in fair value less estimated costs to sell up to the cumulative loss previously recognized through the valuation allowance. We recognize gains or losses on sales of foreclosed property through “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. Properties that do not meet the criteria to be classified as HFS are classified as held for use and are recorded in “Other assets” in our consolidated balance sheets. These properties are depreciated and are evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. |
Commitments to Purchase and Sell Mortgage Loans and Securities Policy | Commitments to Purchase and Sell Mortgage Loans and Securities We enter into commitments to purchase and sell mortgage-backed securities and to purchase single-family and multifamily mortgage loans. Certain commitments to purchase or sell mortgage-backed securities and to purchase single-family mortgage loans are generally accounted for as derivatives. Our commitments to purchase multifamily loans are not accounted for as derivatives because they do not meet the criteria for net settlement. When derivative purchase commitments settle, we include the fair value on the settlement date in the cost basis of the loan or unconsolidated security we purchase. When derivative commitments to sell securities settle, we include the fair value of the commitment on the settlement date in the cost basis of the security we sell. Purchases and sales of securities issued by our consolidated MBS trusts are treated as extinguishments or issuances of debt, respectively. For commitments to purchase and sell securities issued by our consolidated MBS trusts, we recognize the fair value of the commitment on the settlement date as a component of debt extinguishment gains and losses or in the cost basis of the debt issued, respectively. Regular-way securities trades provide for delivery of securities within the time generally established by regulations or conventions in the market in which the trade occurs and are exempt from application of derivative accounting. Commitments to purchase or sell securities that we account for on a trade-date basis are also exempt from the derivative accounting requirements. We record the purchase and sale of an existing security on its trade date when the commitment to purchase or sell the existing security settles within the period of time that is customary in the market in which those trades take place. Additionally, contracts for the forward purchase or sale of when-issued and to-be-announced (“TBA”) securities are exempt from the derivative accounting requirements if there is no other way to purchase or sell that security, delivery of that security and settlement will occur within the shortest period possible for that type of security, and it is probable at inception and throughout the term of the individual contract that physical delivery of the security will occur. Since our commitments for the purchase of when-issued and TBA securities can be net settled and we do not document that physical settlement is probable, we account for all such commitments as derivatives. |
Derivatives Policy | Derivative Instruments We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade date basis. We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade-date basis. Fair value amounts, which are (1) netted to the extent a legal right of offset exists and is enforceable by law at the counterparty level and (2) inclusive of the right or obligation associated with the cash collateral posted or received, are recorded in “Other assets” or “Other liabilities” in our consolidated balance sheets. See “ Note 15, Fair Value ” for additional information on derivatives recorded at fair value. We present cash flows from derivatives as operating activities in our consolidated statements of cash flows. We record all derivative gains and losses, including accrued interest, in “ Fair value gains (losses), net Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our consolidated balance sheets. |
Derivatives, Offsetting Fair Value Amounts Policy | We offset the carrying amounts of certain derivatives that are in gain positions and loss positions as well as cash collateral receivables and payables associated with derivative positions pursuant to the terms of enforceable master netting arrangements. We offset these amounts only when we have the legal right to offset under the contract and we have met all of the offsetting conditions. For our over-the-counter (“OTC”) derivative positions, our master netting arrangements allow us to net derivative assets and liabilities with the same counterparty. For our cleared derivative contracts, our master netting arrangements allow us to net our exposure by clearing organization and by clearing member. |
Derivatives, Embedded Derivatives Policy | We evaluate financial instruments that we purchase or issue and other financial and non-financial contracts for embedded derivatives. To identify embedded derivatives that we must account for separately, we determine if: (1) the economic characteristics of the embedded derivative are not clearly and closely related to the economic characteristics of the financial instrument or other contract ( i.e ., the host contract); (2) the financial instrument or other contract itself is not already measured at fair value with changes in fair value included in earnings; and (3) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. If the embedded derivative meets all three of these conditions, we elect to carry the hybrid contract in its entirety at fair value with changes in fair value recorded in earnings. |
Repurchase Agreements, Collateral Policy | Collateral We enter into various transactions where we pledge and accept collateral, the most common of which are our derivative transactions. Required collateral levels vary depending on the credit rating and type of counterparty. We also pledge and receive collateral under our repurchase and reverse repurchase agreements. In order to reduce potential exposure to repurchase counterparties, a third-party custodian typically maintains the collateral and any margin. We monitor the fair value of the collateral received from our counterparties, and we may require additional collateral from those counterparties, as we deem appropriate. Cash Collateral We record cash collateral accepted from a counterparty that we have the right to use as “Cash and cash equivalents” and cash collateral accepted from a counterparty that we do not have the right to use as “Restricted cash” in our consolidated balance sheets. We net our obligation to return cash collateral pledged to us against the fair value of derivatives in a gain position recorded in “Other assets” in our consolidated balance sheets as part of our counterparty netting calculation. For derivative positions with the same counterparty under master netting arrangements where we pledge cash collateral, we remove it from “Cash and cash equivalents” and net the right to receive it against the fair value of derivatives in a loss position recorded in “Other liabilities” in our consolidated balance sheets as a part of our counterparty netting calculation. Non-Cash Collateral We classify securities pledged to counterparties as either “Investments in securities” or “Cash and cash equivalents” in our consolidated balance sheets. Securities pledged to counterparties that have been consolidated with the underlying assets recognized as loans are included as “Mortgage loans” in our consolidated balance sheets. Our liability to third party holders of Fannie Mae MBS that arises as the result of a consolidation of a securitization trust is collateralized by the underlying loans and/or mortgage-related securities. |
Debt Policy | Debt Our consolidated balance sheets contain debt of Fannie Mae as well as debt of consolidated trusts. We report debt issued by us as “Debt of Fannie Mae” and by consolidated trusts as “Debt of consolidated trusts.” Debt issued by us represents debt that we issue to third parties to fund our general business activities and certain credit risk-sharing securities. The debt of consolidated trusts represents the amount of Fannie Mae MBS issued from such trusts that is held by third-party certificateholders and prepayable without penalty at any time. We report deferred items, including premiums, discounts and other cost basis adjustments, as adjustments to the related debt balances in our consolidated balance sheets. |
Interest Expense Policy | We classify interest expense as either short-term or long-term based on the contractual maturity of the related debt. We recognize the amortization of premiums, discounts and other cost basis adjustments through interest expense using the effective interest method usually over the contractual term of the debt. Amortization of premiums, discounts and other cost basis adjustments begins at the time of debt issuance. |
Income Tax Policy | Income Taxes We recognize deferred tax assets and liabilities based on the differences in the book and tax bases of assets and liabilities. We measure deferred tax assets and liabilities using enacted tax rates that are applicable to the period(s) that the differences are expected to reverse. We adjust deferred tax assets and liabilities for the effects of changes in tax laws and rates in the period of enactment. We recognize investment and other tax credits through our effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. In 2018, we resumed investing in new LIHTC projects and elected the proportional amortization method for the associated tax credits. We amortize the cost of a LIHTC investment each reporting period in proportion to the tax credits and other tax benefits received. We recognize the resulting amortization as a component of the “provision for federal income taxes” in our consolidated statements of operations and comprehensive income. • the sustainability of recent profitability required to realize the deferred tax assets; • the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years; • unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years; and • the funding available to us under the senior preferred stock purchase agreement. We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. |
Income Tax Uncertainties Policy | We account for uncertain tax positions using a two-step approach whereby we recognize an income tax benefit if, based on the technical merits of a tax position, it is more likely than not that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then measure the recognized tax benefit based on the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. We recognize interest expense and penalties on unrecognized tax benefits as “Other expenses, net” in our consolidated statements of operations and comprehensive income. |
Earnings Per Share Policy | The calculation of diluted EPS includes all the components of basic earnings per share, plus the dilutive effect of common stock equivalents such as convertible securities and stock options. Weighted-average shares outstanding is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is presented for basic and diluted EPS. We compute basic EPS by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. However, as a result of our conservatorship status and the terms of the senior preferred stock, no amounts would be available to distribute as dividends to common or preferred stockholders (other than to Treasury as the holder of the senior preferred stock). Net income (loss) attributable to common stockholders excludes amounts attributable to the senior preferred stock, which increase the liquidation preference as described above in “ Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant |
New Accounting Pronouncements Policy | New Accounting Guidance The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments in June 2016, which was later amended by ASU 2019-04, ASU 2019-05 and ASU 2019-11. These ASUs (the “CECL standard”) replace the existing incurred loss impairment methodology for loans that are collectively evaluated for impairment with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable forecast information to develop a lifetime credit loss estimate. The CECL standard also requires credit losses related to AFS debt securities to be recorded through an allowance for credit losses. Our adoption of this standard on January 1, 2020 did not have a material impact on our portfolio of AFS debt securities. The CECL standard became effective for our fiscal year beginning January 1, 2020. We have changed our accounting policies and implemented system, model and process changes to adopt the standard. Upon adoption, we used a discounted cash flow method to measure expected credit losses on our single-family mortgage loans and an undiscounted loss method to measure expected credit losses on our multifamily mortgage loans. The models used to estimate credit losses incorporated our historical credit loss experience, adjusted for current economic forecasts and the current credit profile of our loan book of business. The models used reasonable and supportable forecasts for key economic drivers, such as home prices (single-family), rental income (multifamily) and capitalization rates (multifamily). The adoption of the CECL standard on January 1, 2020 will reduce our retained earnings by $1.1 billion on an after-tax basis, which will be reflected in our financial statements for the quarter ending March 31, 2020. The adoption of this guidance increased our overall credit loss reserves primarily as the result of an increase in our single-family loan loss reserves that were previously evaluated on a collective basis for impairment. This increase was partially offset by a decrease in estimated credit losses on loans that were previously considered individually impaired (our troubled debt restructurings). The increase in our single-family loan loss reserves that were previously evaluated on a collective basis was primarily driven by the migration from an incurred-loss approach, which allowed us to consider only default events and economic conditions that already existed as of each financial reporting date, to an estimate that incorporates both expected default events over the expected life of each mortgage loan and a forecast of home prices in different economic environments over a reasonable and supportable period. The increase in loss reserves for this portion of our book was low relative to its size due to the credit quality of these loans and because our current model forecasts home price growth. The allowance for loan losses on the TDR book was already measured using an expected lifetime credit loss estimate. The expected credit losses on this portion of our single-family book decreased upon the adoption of CECL because the new guidance required us to exclude from our estimate of credit losses all pre-foreclosure and post-foreclosure costs that are expected to be advanced after the balance sheet date. Prior to the adoption of CECL, we incorporated these costs in our estimate of expected credit losses for this book. |
Consolidations and Transfers _2
Consolidations and Transfers of Financial Assets (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidations and Transfers of Financial Assets [Abstract] | |
Principles of Consolidation Policy | Principles of Consolidation Consolidated VIEs If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities and noncontrolling interests of the VIE in its consolidated financial statements. An enterprise is deemed to be the primary beneficiary when the enterprise has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and exposure to benefits and/or losses could potentially be significant to the entity. In general, the investors in the obligations of consolidated VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide a guaranty to the VIE. Unconsolidated VIEs |
Transfers and Servicing of Financial Assets Policy | Transfers of Financial Assets We evaluate each transfer of financial assets to determine whether the transfer qualifies as a sale. If a transfer does not meet the criteria for sale treatment, the transferred assets remain in our consolidated balance sheets and we record a liability to the extent of any proceeds received in connection with the transfer. We record transfers of financial assets in which we surrender control of the transferred assets as sales. When a transfer that qualifies as a sale is completed, we derecognize all assets transferred and recognize all assets obtained and liabilities incurred at fair value. The difference between the carrying basis of the assets transferred and the fair value of the net proceeds from the sale is recorded as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income. Retained interests are primarily derived from transfers associated with our portfolio securitizations in the form of Fannie Mae securities. We separately describe the subsequent accounting, as well as how we determine fair value, for our retained interests in the “Investments in Securities” section of this note. We enter into repurchase agreements that involve contemporaneous trades to purchase and sell securities. These transactions are accounted for as secured financings since the transferor has not relinquished control over the transferred assets. These transactions are reported as securities purchased under agreements to resell and securities sold under agreements to repurchase in our consolidated balance sheets except for securities purchased under agreements to resell on an overnight basis, which are included in cash and cash equivalents in our consolidated balance sheets. |
Mortgage Loans (Policies)
Mortgage Loans (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Financing Receivable, Held-for-investment Policy | Loans Held for Investment When we acquire mortgage loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. When we consolidate a securitization trust, we recognize the loans underlying the trust in our consolidated balance sheets. The trusts do not have the ability to sell mortgage loans and the use of such loans is limited exclusively to the settlement of obligations of the trusts. Therefore, mortgage loans acquired with the intent to securitize via consolidated trusts will be classified as HFI in our consolidated balance sheets both prior to and subsequent to their securitization. |
Financing Receivable, Held-for-sale Policy | Loans Held for Sale When we acquire mortgage loans that we intend to sell or securitize via trusts that will not be consolidated, we classify the loans as held for sale (“HFS”). We report the carrying value of HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “ Investment gains, net ” in our consolidated statements of operations and comprehensive income. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify held for investment (“HFI”) loans to HFS loans, based upon a change in our intent, we record the loans at lower of cost or fair value on the date of redesignation. If the amounts charged off upon redesignation exceed the allowance related to the loans, we record a provision for credit losses. If the amounts charged off are less than the allowance related to the loans, we recognize a benefit for credit losses. |
Troubled Debt Restructurings Policy | Restructured Loans A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulty is considered a troubled debt restructuring (“TDR”). Our loss mitigation programs primarily include modifications that result in the capitalization of past due amounts in combination with interest rate reductions and/or the extension of the loan’s maturity date. Such restructurings are granted to borrowers in financial difficulty on either a permanent or contingent basis, as in the case of modifications with a trial period. We consider these types of loan restructurings to be TDRs. We generally do not include principal or past due interest forgiveness as part of our loss mitigation programs, and, as a result, we generally do not charge off any outstanding principal or accrued interest amounts at the time of loan modification. We believe that the loan underwriting activities we perform as a part of our loan modification process coupled with the borrower’s successful performance during any required trial period provides us reasonable assurance regarding the collectability of the principal and interest due in accordance with the loan’s modified terms, which include any past due interest amounts that are capitalized as principal at the time of modification. As such, the loan is returned to accrual status when the loan modification is completed ( i.e ., at the end of the trial period), and we accrue interest thereafter in accordance with our interest accrual policy. If the loan was on nonaccrual status prior to entering the trial period, it remains on nonaccrual status until the borrower demonstrates performance via the trial period and the modification is finalized. We also engage in other loss mitigation activities with troubled borrowers, which include repayment plans, forbearance arrangements, and modifications that are limited to the capitalization only of past due amounts. For all of these activities, we consider the deferral or capitalization of three or fewer missed payments to represent only an insignificant delay, and thus not a TDR. If we defer or capitalize more than three missed payments either through a legal or informal modification, the delay is no longer considered insignificant, and the restructuring is accounted for as a TDR. We measure impairment of a loan restructured in a TDR individually based on the excess of the recorded investment in the loan over the present value of the expected future cash inflows discounted at the loan’s original effective interest rate. Costs incurred to complete a TDR are expensed as incurred. However, when foreclosure is probable on an individually impaired loan, we measure impairment based on the difference between our recorded investment in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive. |
Allowance for Loan Losses Allow
Allowance for Loan Losses Allowance For Loan Losses (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses Policy | Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects an estimate of incurred credit losses related to our recorded investment in both single-family and multifamily HFI loans. This population includes both HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. When calculating our allowance for loan losses, we consider only our net recorded investment in the loan at the balance sheet date, which includes the loan’s unpaid principal balance and any applicable cost basis adjustments. When losses on a loan are confirmed, typically through our receipt of property upon foreclosure of the loan or of cash proceeds upon completion of a short sale, we reduce our allowance for loan losses by recording a charge-off. Additionally, we record charge-offs as a reduction to our allowance for loan losses when a loan is determined to be uncollectible, upon the redesignation of loans from HFI to HFS and pursuant to the charge-off provisions of FHFA’s Advisory Bulletin 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” (the “Advisory Bulletin”). The excess of a loan’s unpaid principal balance, accrued interest, and any applicable cost basis adjustments (“our total exposure”) over the fair value of the assets is treated as a charge-off loss that is deducted from the allowance for loan losses. The amount charged off also considers estimated proceeds from primary mortgage insurance or other credit enhancements that are either contractually attached to a loan or that were entered into contemporaneously with and in contemplation of a guaranty or loan purchase transaction as a recovery of our total exposure, up to the amount of loss recognized as a charge-off. We record additional proceeds from primary mortgage insurance and credit enhancements in excess of our total exposure as a recovery of any forgone contractually past due interest, and then as an offset to the expenses recorded in “Foreclosed property expense” in our consolidated statements of operations and comprehensive income when received. We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option. When calculating our allowance for loan losses, we consider the unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date. |
Investments in Securities (Poli
Investments in Securities (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities Policy | Investments in Securities Securities Classified as Trading or Available-for-Sale Fannie Mae MBS included in “Investments in securities” When we own Fannie Mae MBS issued by unconsolidated trusts, we do not derecognize any components of the guaranty assets, guaranty obligations, or any other outstanding recorded amounts associated with the guaranty transaction because our contractual obligation to the MBS trust remains in force until the trust is liquidated. We determine the fair value of Fannie Mae MBS based on observable market prices because most Fannie Mae MBS are actively traded. For any subsequent purchase or sale, we continue to account for any outstanding recorded amounts associated with the guaranty transaction on the same basis of accounting. Other-Than-Temporary Impairment of Debt Securities We evaluate AFS securities for other-than-temporary impairment (“OTTI”) on a quarterly basis. OTTI is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery. In such cases, we recognize in “ Investment gains, net ” in our consolidated statements of operations and comprehensive income the entire difference between the amortized cost basis of a security and its fair value. OTTI is also considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend to sell the security or it is not more likely than not that we will be required to sell the security before recovery. In these circumstances, we separate the difference between the amortized cost basis of the security and its fair value into the amount representing the credit loss, which we recognize in “ Investment gains, net ” in our consolidated statements of operations and comprehensive income, and the amount related to all other factors, which we recognize in “ Total other comprehensive loss ,” net of taxes, in our consolidated statements of operations and comprehensive income. In periods after we recognize OTTI of debt securities, we use the prospective interest method to recognize interest income. Trading securities are recorded at fair value with subsequent changes in fair value recorded as “ Fair value gains (losses), net Available-for-Sale Securities We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive loss” in our consolidated statements of operations and comprehensive income. We recognize realized gains and losses from the sale of AFS securities in “ Investment gains, net .” Other-Than-Temporary Impairments For AFS securities, OTTI is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell or it is more likely than not that we will be required to sell the security before recovery. Additionally, OTTI is considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend to sell the security or it is not more likely than not we will be required to sell the security before recovery. |
Derivative Instruments (Policie
Derivative Instruments (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Policy | Derivative Instruments We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade date basis. We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade-date basis. Fair value amounts, which are (1) netted to the extent a legal right of offset exists and is enforceable by law at the counterparty level and (2) inclusive of the right or obligation associated with the cash collateral posted or received, are recorded in “Other assets” or “Other liabilities” in our consolidated balance sheets. See “ Note 15, Fair Value ” for additional information on derivatives recorded at fair value. We present cash flows from derivatives as operating activities in our consolidated statements of cash flows. We record all derivative gains and losses, including accrued interest, in “ Fair value gains (losses), net Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our consolidated balance sheets. |
Income Tax (Policies)
Income Tax (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Policy | Income Taxes We recognize deferred tax assets and liabilities based on the differences in the book and tax bases of assets and liabilities. We measure deferred tax assets and liabilities using enacted tax rates that are applicable to the period(s) that the differences are expected to reverse. We adjust deferred tax assets and liabilities for the effects of changes in tax laws and rates in the period of enactment. We recognize investment and other tax credits through our effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. In 2018, we resumed investing in new LIHTC projects and elected the proportional amortization method for the associated tax credits. We amortize the cost of a LIHTC investment each reporting period in proportion to the tax credits and other tax benefits received. We recognize the resulting amortization as a component of the “provision for federal income taxes” in our consolidated statements of operations and comprehensive income. • the sustainability of recent profitability required to realize the deferred tax assets; • the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years; • unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years; and • the funding available to us under the senior preferred stock purchase agreement. We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Policy | We have two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to loans secured by properties containing five or more residential units. We describe the management reporting and allocation process used to generate our segment results in “ Note 10, Segment Reporting .” We have two reportable business segments: Single-Family and Multifamily. The chief operating decision maker allocates resources and assesses performance based on these two business segments. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our consolidated results of operations. |
Netting Arrangements (Policies)
Netting Arrangements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Derivatives, Offsetting Policy | We offset the carrying amounts of certain derivatives that are in gain positions and loss positions as well as cash collateral receivables and payables associated with derivative positions pursuant to the terms of enforceable master netting arrangements. We offset these amounts only when we have the legal right to offset under the contract and we have met all of the offsetting conditions. For our over-the-counter (“OTC”) derivative positions, our master netting arrangements allow us to net derivative assets and liabilities with the same counterparty. For our cleared derivative contracts, our master netting arrangements allow us to net our exposure by clearing organization and by clearing member. |
Fair Value (Policies)
Fair Value (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option | 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 nonrecurring basis. Fair Value Measurement Fair value measurement guidance defines fair value, establishes a framework for measuring fair value and sets forth disclosures around fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. The guidance establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority, Level 1, to measurements based on unadjusted quoted prices in active markets for identical assets or liabilities. The next highest priority, Level 2, is given to measurements of assets and liabilities based on limited observable inputs or observable inputs for similar assets and liabilities. The lowest priority, Level 3, is given to measurements based on unobservable inputs. Fair Value of Financial Instruments Fair Value Option We elected the fair value option for loans and debt which contain embedded derivatives that would otherwise require bifurcation. Additionally, we elected the fair value option for our credit risk-sharing securities accounted for as debt of Fannie Mae issued under our CAS series prior to January 1, 2016. Under the fair value option, we elected to carry these instruments at fair value instead of bifurcating the embedded derivative from such instruments. Interest income for the mortgage loans is recorded in “Interest income—Mortgage loans” and interest expense for the debt instruments is recorded in “Interest expense—Long-term debt” in our consolidated statements of operations and comprehensive income. |
Commitments and Contingencies (
Commitments and Contingencies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Policy | On a quarterly basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, accruals and disclosures. We establish an accrual only for matters when a loss is probable and we can reasonably estimate the amount of such loss. |
Loan and Mortgage Related Securities Commitments Policy | We have unconditional commitments related to the purchase of loans and mortgage-related securities. These include both on- and off-balance sheet commitments. A portion of these have been recorded as derivatives in our consolidated balance sheets. |
Consolidations and Transfers _3
Consolidations and Transfers of Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidations and Transfers of Financial Assets [Abstract] | |
Unconsolidated Variable Interest Entities | The following table displays the carrying amount and classification of our assets and liabilities that relate to our involvement with unconsolidated securitization and resecuritization trusts. As of December 31, 2019 2018 (Dollars in millions) Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts: Assets: Trading securities: Fannie Mae $ 2,543 $ 1,422 Non-Fannie Mae 5,100 4,809 Total trading securities 7,643 6,231 Available-for-sale securities: Fannie Mae 1,524 1,704 Non-Fannie Mae 574 1,207 Total available-for-sale securities 2,098 2,911 Other assets 56 66 Other liabilities (78 ) (101 ) Net carrying amount $ 9,719 $ 9,107 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Loans in Mortgage Portfolio | The following table displays the carrying value of our mortgage loans. As of December 31, 2019 2018 (Dollars in millions) Single-family $ 2,972,361 $ 2,929,925 Multifamily 327,593 293,858 Total unpaid principal balance of mortgage loans 3,299,954 3,223,783 Cost basis and fair value adjustments, net 43,224 39,815 Allowance for loan losses for HFI loans (9,016 ) (14,203 ) Total mortgage loans $ 3,334,162 $ 3,249,395 The following table displays information about our redesignated mortgage loans. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Carrying value of loans redesignated from HFI to HFS (1) $ 17,126 $ 21,960 $ 12,886 Carrying value of loans redesignated from HFS to HFI (1) 28 56 113 Loans sold - unpaid principal balance 19,737 21,918 12,184 Realized gains on sale of mortgage loans 1,238 444 723 (1) Represents the carrying value of the loans after redesignation, excluding allowance. The following table displays the allowance for loan losses and recorded investment in our HFI loans by impairment or allowance methodology and portfolio segment, excluding loans for which we have elected the fair value option. As of December 31, 2019 2018 Single-Family Multifamily Total Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175 ) $ (45 ) $ (8,220 ) $ (13,255 ) $ (40 ) $ (13,295 ) Collectively reserved loans (584 ) (212 ) (796 ) (714 ) (194 ) (908 ) Total allowance for loan losses $ (8,759 ) $ (257 ) $ (9,016 ) $ (13,969 ) $ (234 ) $ (14,203 ) Recorded investment in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 $ 117,561 $ 542 $ 118,103 Collectively reserved loans 2,909,115 329,938 3,239,053 2,841,943 295,122 3,137,065 Total recorded investment in loans $ 3,006,311 $ 330,618 $ 3,336,929 $ 2,959,504 $ 295,664 $ 3,255,168 |
Aging Analysis | The following tables display an aging analysis of the total recorded investment in our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option. As of December 31, 2019 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest Recorded Investment in Nonaccrual Loans (Dollars in millions) Single-family: Primary $ 28,909 $ 7,497 $ 13,695 $ 50,101 $ 2,886,520 $ 2,936,621 $ 29 $ 24,573 Government (2) 44 21 133 198 16,931 17,129 133 — Alt-A 1,721 602 1,290 3,613 38,642 42,255 1 2,198 Other 559 206 467 1,232 9,074 10,306 1 775 Total single-family 31,233 8,326 15,585 55,144 2,951,167 3,006,311 164 27,546 Multifamily (3) 7 N/A 115 122 330,496 330,618 — 435 Total $ 31,240 $ 8,326 $ 15,700 $ 55,266 $ 3,281,663 $ 3,336,929 $ 164 $ 27,981 As of December 31, 2018 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest Recorded Investment in Nonaccrual Loans (Dollars in millions) Single-family: Primary $ 30,471 $ 7,881 $ 14,866 $ 53,218 $ 2,816,047 $ 2,869,265 $ 22 $ 26,170 Government (2) 57 17 169 243 21,887 22,130 169 — Alt-A 2,332 821 1,844 4,997 48,274 53,271 2 3,082 Other 804 283 713 1,800 13,038 14,838 2 1,128 Total single-family 33,664 9,002 17,592 60,258 2,899,246 2,959,504 195 30,380 Multifamily (3) 56 N/A 171 227 295,437 295,664 — 492 Total $ 33,720 $ 9,002 $ 17,763 $ 60,485 $ 3,194,683 $ 3,255,168 $ 195 $ 30,872 (1) Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due. (2) Primarily consists of reverse mortgages, which due to their nature, are not aged and are included in the current column. (3) Multifamily loans 60 - 89 days delinquent are included in the seriously delinquent column. |
Individually Impaired Loans | ily loans restructured in a TDR with a recorded investment of $102 million and $187 million as of December 31, 2019 and 2018 , respectively. For the Year Ended December 31, 2019 2018 2017 Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Recorded Investment Total Interest Income Recognized Interest Income Recognized on a Cash Basis (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: Primary $ 71,048 $ 2,954 $ 264 $ 85,063 $ 3,522 $ 381 $ 92,893 $ 3,721 $ 319 Government 263 11 — 276 17 — 292 10 — Alt-A 12,685 540 38 18,202 772 57 23,536 929 56 Other 4,177 154 13 6,691 250 19 9,158 318 19 Total single-family 88,173 3,659 315 110,232 4,561 457 125,879 4,978 394 Multifamily 287 7 — 235 3 — 273 9 — Total individually impaired loans with related allowance recorded 88,460 3,666 315 110,467 4,564 457 126,152 4,987 394 With no related allowance recorded: (1) Single-family: Primary 16,243 1,008 150 15,005 967 119 15,166 1,107 96 Government 57 4 — 57 4 — 61 3 — Alt-A 2,176 169 15 2,625 218 17 3,000 270 13 Other 599 38 4 807 56 5 997 84 4 Total single-family 19,075 1,219 169 18,494 1,245 141 19,224 1,464 113 Multifamily 375 31 — 336 14 — 297 19 — Total individually impaired loans with no related allowance recorded 19,450 1,250 169 18,830 1,259 141 19,521 1,483 113 Total individually impaired loans $ 107,910 $ 4,916 $ 484 $ 129,297 $ 5,823 $ 598 $ 145,673 $ 6,470 $ 507 (1) The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required. |
Troubled Debt Restructurings Activity | The following table displays the number of loans and recorded investment in loans classified as a TDR. For the Year Ended December 31, 2019 2018 2017 Number of Loans Recorded Investment (1) Number of Loans Recorded Investment (1) Number of Loans Recorded Investment (1) (Dollars in millions) Single-family: Primary 48,858 $ 7,688 89,192 $ 13,437 59,708 $ 8,247 Government 72 8 115 11 171 18 Alt-A 2,465 313 5,378 697 5,369 771 Other 464 81 1,127 208 1,158 207 Total single-family 51,859 8,090 95,812 14,353 66,406 9,243 Multifamily 11 56 14 74 8 99 Total TDRs 51,870 $ 8,146 95,826 $ 14,427 66,414 $ 9,342 (1) Based on the nature of our modification programs, which do not include principal or past-due interest forgiveness, there is not a material difference between the recorded investment in our loans pre- and post- modification. Therefore, these amounts represent recorded investment post-modification. For the Year Ended December 31, 2019 2018 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in millions) Single-family: Primary 15,875 $ 2,425 18,613 $ 2,697 19,539 $ 2,722 Government 74 10 55 7 91 10 Alt-A 1,453 218 2,412 386 2,588 400 Other 447 87 662 131 760 145 Total single-family 17,849 2,740 21,742 3,221 22,978 3,277 Multifamily 2 18 2 3 2 12 Total TDRs that subsequently defaulted 17,851 $ 2,758 21,744 $ 3,224 22,980 $ 3,289 |
Single-Family [Member] | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Credit Quality Indicators | The following table displays the total recorded investment in our single-family HFI loans by class and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a strong predictor of credit performance. The likelihood of default and the gross severity of a loss in the event of default are typically lower as the LTV ratio decreases. As of December 31, 2019 (1) 2018 (1) Primary Alt-A Other Primary Alt-A Other (Dollars in millions) Estimated mark-to-market LTV ratio: (2) Less than or equal to 80% $ 2,556,685 $ 37,932 $ 9,002 $ 2,521,766 $ 45,476 $ 12,291 Greater than 80% and less than or equal to 90% 243,459 2,225 642 228,614 3,804 1,195 Greater than 90% and less than or equal to 100% 131,653 1,078 318 109,548 1,997 645 Greater than 100% 4,824 1,020 344 9,337 1,994 707 Total $ 2,936,621 $ 42,255 $ 10,306 $ 2,869,265 $ 53,271 $ 14,838 (1) Excludes the “government” class, which consists of $17.1 billion and $22.1 billion as of December 31, 2019 and 2018 , respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, that are not Alt-A loans. This class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV ratio. (2) The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan divided by the estimated current value of the property as of the end of each reported period, which we calculate using an internal valuation model that estimates periodic changes in home value. |
Multifamily [Member] | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Credit Quality Indicators | The following table displays the total recorded investment in our multifamily HFI loans by credit quality indicator, excluding loans for which we have elected the fair value option. As of December 31, 2019 2018 (Dollars in millions) Credit risk profile by internally assigned grade: Non-classified $ 323,773 $ 289,231 Classified (1) 6,845 6,433 Total $ 330,618 $ 295,664 (1) Represents loans classified as “Substandard” or “Doubtful.” Loans classified as “Substandard” have a well-defined weakness that jeopardizes the timely full repayment. Loans classified as “Doubtful” have a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions and values. As of December 31, 2019 , we had loans with recorded investment of $5 million classified as doubtful, compared with $1 million as of December 31, 2018 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses Roll Forward by Segment | The following table displays changes in our single-family, multifamily and total allowance for loan losses. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (13,969 ) $ (18,849 ) $ (23,283 ) Benefit (provision) for loan losses (1) 3,988 2,990 1,994 Charge-offs 1,299 2,148 2,795 Recoveries (71 ) (240 ) (326 ) Other (6 ) (18 ) (29 ) Ending balance $ (8,759 ) $ (13,969 ) $ (18,849 ) Multifamily allowance for loan losses: Beginning balance $ (234 ) $ (235 ) $ (182 ) Benefit (provision) for loan losses (1) (27 ) (3 ) (53 ) Charge-offs 8 4 3 Recoveries (4 ) — (3 ) Ending balance $ (257 ) $ (234 ) $ (235 ) Total allowance for loan losses: Beginning balance $ (14,203 ) $ (19,084 ) $ (23,465 ) Benefit (provision) for loan losses (1) 3,961 2,987 1,941 Charge-offs 1,307 2,152 2,798 Recoveries (75 ) (240 ) (329 ) Other (6 ) (18 ) (29 ) Ending balance $ (9,016 ) $ (14,203 ) $ (19,084 ) (1) Benefit (provision) for loan losses is included in “ Benefit for credit losses ” in our consolidated statements of operations and comprehensive income. |
Allowance for Loan Losses and Total Recorded Investment in HFI Loans | The following table displays the carrying value of our mortgage loans. As of December 31, 2019 2018 (Dollars in millions) Single-family $ 2,972,361 $ 2,929,925 Multifamily 327,593 293,858 Total unpaid principal balance of mortgage loans 3,299,954 3,223,783 Cost basis and fair value adjustments, net 43,224 39,815 Allowance for loan losses for HFI loans (9,016 ) (14,203 ) Total mortgage loans $ 3,334,162 $ 3,249,395 The following table displays information about our redesignated mortgage loans. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Carrying value of loans redesignated from HFI to HFS (1) $ 17,126 $ 21,960 $ 12,886 Carrying value of loans redesignated from HFS to HFI (1) 28 56 113 Loans sold - unpaid principal balance 19,737 21,918 12,184 Realized gains on sale of mortgage loans 1,238 444 723 (1) Represents the carrying value of the loans after redesignation, excluding allowance. The following table displays the allowance for loan losses and recorded investment in our HFI loans by impairment or allowance methodology and portfolio segment, excluding loans for which we have elected the fair value option. As of December 31, 2019 2018 Single-Family Multifamily Total Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175 ) $ (45 ) $ (8,220 ) $ (13,255 ) $ (40 ) $ (13,295 ) Collectively reserved loans (584 ) (212 ) (796 ) (714 ) (194 ) (908 ) Total allowance for loan losses $ (8,759 ) $ (257 ) $ (9,016 ) $ (13,969 ) $ (234 ) $ (14,203 ) Recorded investment in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 $ 117,561 $ 542 $ 118,103 Collectively reserved loans 2,909,115 329,938 3,239,053 2,841,943 295,122 3,137,065 Total recorded investment in loans $ 3,006,311 $ 330,618 $ 3,336,929 $ 2,959,504 $ 295,664 $ 3,255,168 |
Investments in Securities (Tabl
Investments in Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Trading Securities | The following table displays our investments in trading securities. As of December 31, 2019 2018 (Dollars in millions) Mortgage-related securities: Fannie Mae (1) $ 3,424 $ 1,467 Other agency (2) 4,490 3,503 Private-label and other mortgage securities 629 1,306 Total mortgage-related securities (includes $896 and $32, respectively, related to consolidated trusts) 8,543 6,276 Non-mortgage-related securities: U.S. Treasury securities 39,501 35,502 Other securities 79 89 Total non-mortgage-related securities 39,580 35,591 Total trading securities $ 48,123 $ 41,867 |
Schedule of Trading Securities Gains (Losses), Net | The following table displays information about our net trading gains (losses). For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Net trading gains $ 322 $ 126 $ 190 Net trading gains recognized in the period related to securities still held at period end 238 55 161 |
Schedule of Available-for-sale Securities Realized Gain (Loss) | The following table displays the gross realized gains and proceeds on sales of AFS securities. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Gross realized gains $ 265 $ 375 $ 487 Total proceeds (excludes initial sale of securities from new portfolio securitizations) 537 662 1,780 |
Schedule of Available-for-sale Securities Reconciliation | The following tables display the amortized cost, gross unrealized gains and losses, and fair value by major security type for AFS securities. As of December 31, 2019 Total Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses (2) Total Fair Value (Dollars in millions) Fannie Mae $ 1,445 $ 85 $ (10 ) $ 1,520 Other agency 183 15 — 198 Alt-A and subprime private-label securities 34 23 — 57 Mortgage revenue bonds 309 9 (3 ) 315 Other mortgage-related securities 310 5 (1 ) 314 Total $ 2,281 $ 137 $ (14 ) $ 2,404 As of December 31, 2018 Total Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses (2) Total Fair Value (Dollars in millions) Fannie Mae $ 1,754 $ 69 $ (26 ) $ 1,797 Other agency 239 17 — 256 Alt-A and subprime private-label securities 325 267 — 592 Mortgage revenue bonds 425 13 (4 ) 434 Other mortgage-related securities 336 14 — 350 Total $ 3,079 $ 380 $ (30 ) $ 3,429 s (1) Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as OTTI recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income. (2) Represents the gross unrealized losses on securities for which we have not recognized OTTI, as well as the noncredit component of OTTI and cumulative changes in fair value of securities for which we previously recognized the credit component of OTTI in “Accumulated other comprehensive income” in our consolidated balance sheets. The decrease in Alt-A and subprime private-label for the year ended December 31, 2019 compared with the year ended December 31, 2018 was primarily attributable to sales of subprime private-label securities. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables display additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position. As of December 31, 2019 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (Dollars in millions) Fannie Mae $ — $ — $ (10 ) $ 337 Mortgage revenue bonds — — (3 ) 3 Other mortgage-related securities (1 ) 130 — — Total $ (1 ) $ 130 $ (13 ) $ 340 As of December 31, 2018 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (Dollars in millions) Fannie Mae $ — $ — $ (26 ) $ 487 Mortgage revenue bonds (1 ) 24 (3 ) 19 Total $ (1 ) $ 24 $ (29 ) $ 506 |
Investments Classified by Contractual Maturity Date | The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time. As of December 31, 2019 Total Amortized Cost Total Fair Value One Year or Less After One Year Through Five Years After Five Years Through Ten Years After Ten Years Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in millions) Fannie Mae $ 1,445 $ 1,520 $ — $ — $ 15 $ 16 $ 95 $ 104 $ 1,335 $ 1,400 Other agency 183 198 — — 18 18 24 27 141 153 Alt-A and subprime private-label securities 34 57 — — — — 3 3 31 54 Mortgage revenue bonds 309 315 2 2 31 32 29 30 247 251 Other mortgage-related securities 310 314 — — — — 24 26 286 288 Total $ 2,281 $ 2,404 $ 2 $ 2 $ 64 $ 66 $ 175 $ 190 $ 2,040 $ 2,146 Weighted-average yield (1) 6.48 % 5.51 % 6.30 % 6.19 % 6.51 % (1) Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax-exempt obligations have been computed on a tax equivalent basis. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table displays net unrealized gains on AFS securities and other amounts within accumulated other comprehensive income (“AOCI”), net of tax, by major categories. As of December 31, 2019 2018 2017 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded OTTI $ 97 $ 52 $ 87 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 423 Other 34 46 43 Accumulated other comprehensive income $ 131 $ 322 $ 553 |
Financial Guarantees (Tables)
Financial Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Financial Guarantees and Maximum Recovery | The following table displays our off-balance sheet maximum exposure, guaranty obligation recognized in our consolidated balance sheets and the potential maximum recovery from third parties through available credit enhancements and recourse related to our financial guarantees. As of December 31, 2019 2018 Maximum Exposure Guaranty Obligation Maximum Recovery (1) Maximum Exposure Guaranty Obligation Maximum Recovery (1) (Dollars in millions) Unconsolidated Fannie Mae MBS $ 5,801 $ 26 $ 5,545 $ 7,278 $ 30 $ 6,811 Other guaranty arrangements (2) 12,670 128 2,553 13,847 130 2,711 Total $ 18,471 $ 154 $ 8,098 $ 21,125 $ 160 $ 9,522 (1) Recoverability of such credit enhancements and recourse is subject to, among other factors, our mortgage insurers’ and financial guarantors’ ability to meet their obligations to us. For information on our mortgage insurers, see “ Note 13, Concentrations of Credit Risk .” (2) Primarily consists of credit enhancements and long-term standby commitments. |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | The following table displays our outstanding short-term debt (debt with an original contractual maturity of one year or less) and weighted-average interest rates of this debt. As of December 31, 2019 2018 Outstanding Weighted- Average Interest Rate (1) Outstanding Weighted- Average Interest Rate (1) (Dollars in millions) Federal funds purchased and securities sold under agreements to repurchase (2) $ 478 1.67 % $ — — % Short-term debt of Fannie Mae $ 26,662 1.56 % $ 24,896 2.29 % (1) Includes the effects of discounts, premiums and other cost basis adjustments. (2) Represents agreements to repurchase securities for a specified price, with repayment generally occurring on the following day, reported as “Other liabilities” in our consolidated balance sheets. |
Long-Term Debt | The following table displays our outstanding long-term debt. As of December 31, 2019 2018 Maturities Outstanding Weighted- Average Interest Rate (1) Maturities Outstanding Weighted- Average Interest Rate (1) (Dollars in millions) Senior fixed: Benchmark notes and bonds 2020 - 2030 $ 86,114 2.66 % 2019 - 2030 $ 103,206 2.36 % Medium-term notes (2) 2020 - 2026 32,590 1.57 2019 - 2026 61,455 1.48 Other (3) 2020 - 2038 5,254 5.01 2019 - 2038 6,683 4.62 Total senior fixed 123,958 2.47 171,344 2.13 Senior floating: Medium-term notes (2) 2020 - 2021 9,774 1.66 2019 - 2020 4,174 2.36 CAS (4) 2023 - 2031 21,424 5.61 2023 - 2031 25,641 5.97 Other (5) 2020 - 2037 398 6.27 2020 - 2037 351 10.19 Total senior floating 31,596 4.40 30,166 5.52 Subordinated debentures 2019 — — 2019 5,617 9.64 Secured borrowings (6) 2021 - 2022 31 2.31 2021 - 2022 51 1.96 Total long-term debt of Fannie Mae (7) 155,585 2.86 207,178 2.83 Debt of consolidated trusts 2020 - 2059 3,285,139 2.78 2019 - 2058 3,159,846 3.03 Total long-term debt $ 3,440,724 2.78 % $ 3,367,024 3.02 % (1) Includes the effects of discounts, premiums and other cost basis adjustments. (2) Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt. (3) Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds. (4) Credit risk-sharing securities that transfer a portion of the credit risk on specified pools of single-family mortgage loans to the investors in these securities, a portion of which is reported at fair value. Represents CAS issued prior to November 2018. See “ Note 2, Consolidations and Transfers of Financial Assets ” for more information about our CAS structures issued beginning November 2018. (5) Consists of structured debt instruments that are reported at fair value. (6) Represents our remaining liability resulting from the transfer of financial assets from our consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments. (7) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $2 million and $413 million as of December 31, 2019 and 2018 , respectively. |
Long-Term Debt by Year of Maturity | The following table displays the amount of our long-term debt as of December 31, 2019 by year of maturity for each of the years 2020 through 2024 and thereafter. The first column assumes that we pay off this debt at maturity or on the call date if the call has been announced, while the second column assumes that we redeem our callable debt at the next available call date. Long-Term Debt by Year of Maturity Assuming Callable Debt Redeemed at Next Available Call Date (Dollars in millions) 2020 $ 47,427 $ 60,464 2021 29,028 21,037 2022 15,584 14,010 2023 5,301 4,470 2024 14,344 13,320 Thereafter 43,901 42,284 Total long-term debt of Fannie Mae (1) 155,585 155,585 Debt of consolidated trusts (2) 3,285,139 3,285,139 Total long-term debt $ 3,440,724 $ 3,440,724 (1) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments. (2) Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value Position | The following table displays the notional amount and estimated fair value of our asset and liability derivative instruments. As of December 31, 2019 As of December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ 41,052 $ — $ 29,178 $ (970 ) $ 71,416 $ 438 $ 21,253 $ (740 ) Receive-fixed 73,579 816 26,382 (62 ) 88,799 1,113 58,399 (860 ) Basis 273 149 — — 250 104 624 — Foreign currency 229 39 232 (65 ) 221 22 223 (72 ) Swaptions: Pay-fixed 4,600 18 6,375 (219 ) 10,375 191 1,000 (4 ) Receive-fixed 2,875 106 4,600 (232 ) 500 20 7,375 (338 ) Futures (1) 20,507 — — — 16,631 — — — Total gross risk management derivatives 143,115 1,128 66,767 (1,548 ) 188,192 1,888 88,874 (2,014 ) Accrued interest receivable (payable) — 226 — (250 ) — 400 — (419 ) Netting adjustment (2) — (1,288 ) — 1,694 — (2,266 ) — 2,315 Total net risk management derivatives $ 143,115 $ 66 $ 66,767 $ (104 ) $ 188,192 $ 22 $ 88,874 $ (118 ) Mortgage commitment derivatives: Mortgage commitments to purchase whole loans $ 7,115 $ 15 $ 1,787 $ (1 ) $ 4,370 $ 29 $ 57 $ — Forward contracts to purchase mortgage-related securities 55,531 137 9,560 (28 ) 40,650 349 1,045 (3 ) Forward contracts to sell mortgage-related securities 9,282 13 109,066 (277 ) 292 1 70,593 (645 ) Total mortgage commitment derivatives 71,928 165 120,413 (306 ) 45,312 379 71,695 (648 ) Credit enhancement derivatives 28,432 40 9,486 (25 ) 33,431 57 919 (11 ) Derivatives at fair value $ 243,475 $ 271 $ 196,666 $ (435 ) $ 266,935 $ 458 $ 161,488 $ (777 ) (1) Futures have no ascribable fair value since the positions are settled daily. (2) The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $1.0 billion and $713 million as of December 31, 2019 and 2018 , respectively. Cash collateral received was $635 million and $664 million as of December 31, 2019 and 2018 , respectively. |
Fair Value Gain (Loss), Net | The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ (3,964 ) $ 2,940 $ 1,296 Receive-fixed 3,685 (1,834 ) (851 ) Basis 46 (21 ) 21 Foreign currency 24 (51 ) 49 Swaptions: Pay-fixed (380 ) 100 (161 ) Receive-fixed 117 (39 ) (60 ) Futures 273 38 22 Net contractual interest expense on interest-rate swaps (833 ) (1,061 ) (889 ) Total risk management derivatives fair value gains (losses), net (1,032 ) 72 (573 ) Mortgage commitment derivatives fair value gains (losses), net (1,043 ) 324 (603 ) Credit enhancement derivatives fair value gains (losses), net (35 ) 26 (9 ) Total derivatives fair value gains (losses), net $ (2,110 ) $ 422 $ (1,185 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table displays the components of our provision for federal income taxes. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Current income tax benefit (provision) $ (2,089 ) $ 114 $ 600 Deferred income tax provision (1) (1,328 ) (4,254 ) (16,584 ) Provision for federal income taxes $ (3,417 ) $ (4,140 ) $ (15,984 ) (1) Amount excludes the current income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).” |
Schedule of Effective Income Tax Rate Reconciliation | The following table displays the difference between the statutory corporate tax rate and our effective tax rate. For the Year Ended December 31, 2019 2018 2017 Statutory corporate tax rate 21.0 % 21.0 % 35.0 % Equity investments in affordable housing projects (0.2 ) (0.6 ) (1.4 ) Effect of corporate tax rate change — — 53.6 Change in unrecognized tax benefits (1.2 ) — — Other (0.2 ) 0.2 (0.6 ) Effective tax rate 19.4 % 20.6 % 86.6 % |
Schedule of Deferred Tax Assets and Liabilities | The following table displays our deferred tax assets and deferred tax liabilities. As of December 31, 2019 2018 (Dollars in millions) Deferred tax assets: Mortgage and mortgage-related assets $ 9,290 $ 9,285 Allowance for loan losses and basis in acquired property, net 1,240 2,065 Debt and derivative instruments 627 687 Partnership credits — 161 Partnership and other equity investments 152 223 Interest-only securities 788 738 Other, net — 102 Total deferred tax assets 12,097 13,261 Deferred tax liabilities: Unrealized gains on AFS securities, net 26 73 Other, net 161 — Total deferred tax liabilities 187 73 Deferred tax assets, net $ 11,910 $ 13,188 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table displays the changes in our unrecognized tax benefits. For the Year Ended December 31, 2019 2018 2017 (Dollars in millions) Unrecognized tax benefits as of January 1 $ 416 $ 514 $ — Gross increases - tax positions in current year — — 514 Gross decreases - tax positions in current year — (98 ) — Gross decreases - tax positions in prior years (416 ) — — Unrecognized tax benefits as of December 31 (1) $ — $ 416 $ 514 (1) Amount excludes tax credits of $151 million , and $220 million as of 2018 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Total assets by segment | The following table displays total assets by segment. As of December 31, 2019 2018 (Dollars in millions) Single-Family $ 3,149,212 $ 3,099,588 Multifamily 354,107 318,730 Total assets $ 3,503,319 $ 3,418,318 |
Segment results | The following tables display our segment results. For the Year Ended December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,013 $ 2,949 $ 20,962 Fee and other income (2) 453 723 1,176 Net revenues 18,466 3,672 22,138 Investment gains, net (3) 1,589 181 1,770 Fair value gains (losses), net (4) (2,216 ) 2 (2,214 ) Administrative expenses (2,565 ) (458 ) (3,023 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 4,038 (27 ) 4,011 Foreclosed property income (expense) (523 ) 8 (515 ) Total credit-related income (expense) 3,515 (19 ) 3,496 TCCA fees (6) (2,432 ) — (2,432 ) Other expenses, net (1,661 ) (497 ) (2,158 ) Income before federal income taxes 14,696 2,881 17,577 Provision for federal income taxes (2,859 ) (558 ) (3,417 ) Net income $ 11,837 $ 2,323 $ 14,160 For the Year Ended December 31, 2018 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,162 $ 2,789 $ 20,951 Fee and other income (2) 450 529 979 Net revenues 18,612 3,318 21,930 Investment gains, net (3) 850 102 952 Fair value gains (losses), net (4) 1,210 (89 ) 1,121 Administrative expenses (2,631 ) (428 ) (3,059 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 3,313 (4 ) 3,309 Foreclosed property expense (604 ) (13 ) (617 ) Total credit-related income (expense) 2,709 (17 ) 2,692 TCCA fees (6) (2,284 ) — (2,284 ) Other expenses, net (1,012 ) (241 ) (1,253 ) Income before federal income taxes 17,454 2,645 20,099 Provision for federal income taxes (3,708 ) (432 ) (4,140 ) Net income $ 13,746 $ 2,213 $ 15,959 For the Year Ended December 31, 2017 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,212 $ 2,521 $ 20,733 Fee and other income (2) 1,378 849 2,227 Net revenues 19,590 3,370 22,960 Investment gains, net (3) 1,352 170 1,522 Fair value losses, net (4) (1,188 ) (23 ) (1,211 ) Administrative expenses (2,391 ) (346 ) (2,737 ) Credit-related income (expense): (5) Benefit (provision) for credit losses 2,090 (49 ) 2,041 Foreclosed property income (expense) (540 ) 19 (521 ) Total credit-related income (expense) 1,550 (30 ) 1,520 TCCA fees (6) (2,096 ) — (2,096 ) Other expenses, net (1,004 ) (507 ) (1,511 ) Income before federal income taxes 15,813 2,634 18,447 Provision for federal income taxes (14,301 ) (1,683 ) (15,984 ) Net income $ 1,512 $ 951 $ 2,463 (1) Net interest income primarily consists of guaranty fees received as compensation for assuming and managing the credit risk on loans underlying Fannie Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the respective business segment’s mortgage assets in our retained mortgage portfolio and the interest expense associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis point increase in guaranty fees pursuant to the TCCA, the incremental revenue for which is remitted to Treasury and not retained by us. (2) Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services, and income resulting from settlement agreements resolving certain claims relating to private-label securities we purchased or that we have guaranteed. Multifamily fee and other income consists of fees associated with Multifamily business activities, including yield maintenance income. (3) Investment gains and losses primarily consist of gains and losses on the sale of mortgage assets for the respective business segment. (4) Single-family fair value gains and losses primarily consist of fair value gains and losses on risk management and mortgage commitment derivatives, trading securities and other financial instruments associated with our single-family guaranty book of business. Multifamily fair value gains and losses primarily consist of fair value gains and losses on MBS commitment derivatives, trading securities and other financial instruments associated with our multifamily guaranty book of business. (5) Credit-related income or expense is based on the guaranty book of business of the respective business segment and consists of the applicable segment’s benefit or provision for credit losses and foreclosed property income or expense on loans underlying the segment’s guaranty book of business. (6) Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Preferred Stock | The following table displays our senior preferred stock and preferred stock outstanding. Issued and Outstanding as of December 31, Annual Dividend Rate as of December 31, 2019 2019 2018 Stated Value per Share Title Issue Date Shares Amount Shares Amount Redeemable on or After (Dollars and shares in millions, except per share amounts) Senior Preferred Stock Series 2008-2 September 8, 2008 1 $ 120,836 1 $ 120,836 $ 120,836 (1) N/A (2) N/A (3) Preferred Stock Series D September 30, 1998 3 $ 150 3 $ 150 $ 50 5.250 % September 30, 1999 Series E April 15, 1999 3 150 3 150 50 5.100 April 15, 2004 Series F March 20, 2000 14 690 14 690 50 2.146 (4) March 31, 2002 (5) Series G August 8, 2000 6 288 6 288 50 2.624 (6) September 30, 2002 (5) Series H April 6, 2001 8 400 8 400 50 5.810 April 6, 2006 Series I October 28, 2002 6 300 6 300 50 5.375 October 28, 2007 Series L April 29, 2003 7 345 7 345 50 5.125 April 29, 2008 Series M June 10, 2003 9 460 9 460 50 4.750 June 10, 2008 Series N September 25, 2003 5 225 5 225 50 5.500 September 25, 2008 Series O December 30, 2004 50 2,500 50 2,500 50 7.000 (7) December 31, 2007 Convertible Series 2004-I (8) December 30, 2004 — 2,492 — 2,492 100,000 5.375 January 5, 2008 Series P September 28, 2007 40 1,000 40 1,000 25 4.500 (9) September 30, 2012 Series Q October 4, 2007 15 375 15 375 25 6.750 September 30, 2010 Series R (10) November 21, 2007 21 530 21 530 25 7.625 November 21, 2012 Series S December 11, 2007 280 7,000 280 7,000 25 7.750 (11) December 31, 2010 (12) Series T (13) May 19, 2008 89 2,225 89 2,225 25 8.250 May 20, 2013 Total 556 $ 19,130 556 $ 19,130 (1) Initial stated value per share was $1,000 . Based on our draws of funds under the senior preferred stock purchase agreement with Treasury, the stated value per share on December 31, 2019 was $120,836 . (2) Beginning in 2013, dividends on the senior preferred stock are calculated based on our net worth as of the end of the immediately preceding fiscal quarter less an applicable capital reserve amount. The applicable capital reserve amount was $3 billion for 2018 and the first and second quarters of 2019. The capital reserve amount increased to $25 billion effective for dividend periods beginning July 1, 2019, pursuant to the September 2019 letter agreement with Treasury. (3) Any liquidation preference of our senior preferred stock in excess of $1.0 billion may be repaid through an issuance of common or preferred stock, which would require the consent of the conservator and Treasury. The initial $1.0 billion liquidation preference may be repaid only in conjunction with termination of Treasury’s funding commitment under the senior preferred stock purchase agreement. (4) Rate effective March 31, 2018. Variable dividend rate resets every two years at a per annum rate equal to the two-year Constant Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year. (5) Represents initial call date. Redeemable every two years thereafter. (6) Rate effective September 30, 2018. Variable dividend rate resets every two years at a per annum rate equal to the two-year CMT rate minus 0.18% with a cap of 11% per year. (7) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.00% or 10-year CMT rate plus 2.375% . (8) Issued and outstanding shares were 24,922 as of December 31, 2019 and 2018 . (9) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.50% or 3-Month LIBOR plus 0.75% . (10) On November 21, 2007, we issued 20 million shares of preferred stock in the amount of $500 million . Subsequent to the initial issuance, we issued an additional 1.2 million shares in the amount of $30 million on December 14, 2007 under the same terms as the initial issuance. (11) Rate effective December 31, 2019 . Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.75% or 3-Month LIBOR plus 4.23% . (12) Represents initial call date. Redeemable every five years thereafter. (13) On May 19, 2008, we issued 80 million shares of preferred stock in the amount of $2.0 billion . Subsequent to the initial issuance, we issued an additional 8 million shares in the amount of $200 million on May 22, 2008 and 1 million shares in the amount of $25 million on June 4, 2008 under the same terms as the initial issuance. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table displays net unrealized gains on AFS securities and other amounts within accumulated other comprehensive income (“AOCI”), net of tax, by major categories. As of December 31, 2019 2018 2017 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded OTTI $ 97 $ 52 $ 87 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 423 Other 34 46 43 Accumulated other comprehensive income $ 131 $ 322 $ 553 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Classification Measures | The following table displays our regulatory capital classification measures. As of December 31, 2019 2018 (Dollars in millions) Core capital (1) $ (106,360 ) $ (114,919 ) Statutory minimum capital requirement (2) 22,392 22,216 Deficit of core capital over statutory minimum capital requirement $ (128,752 ) $ (137,135 ) (1) The sum of (a) the stated value of our outstanding common stock (common stock less treasury stock); (b) the stated value of our outstanding non-cumulative perpetual preferred stock; (c) our paid-in capital; and (d) our retained earnings (accumulated deficit). Core capital does not include: (a) accumulated other comprehensive income or (b) senior preferred stock. (2) Generally, the sum of (a) 2.50% of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties; (b) 0.45% of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties; and (c) up to 0.45% of other off-balance sheet obligations, which may be adjusted by the Director of FHFA under certain circumstances. |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Geographic Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following table displays the regional geographic concentration of single-family and multifamily loans in our guaranty book of business, measured by the unpaid principal balance of the loans. Geographic Concentration (1) Percentage of Single-Family Conventional Guaranty Book of Business Percentage of Multifamily Guaranty Book of Business As of December 31, As of December 31, 2019 2018 2019 2018 Midwest 15 % 15 % 10 % 10 % Northeast 17 17 15 14 Southeast 22 22 27 26 Southwest 18 18 23 24 West 28 28 25 26 Total 100 % 100 % 100 % 100 % (1) Midwest consists of IL, IN, IA, MI, MN, NE, ND, OH, SD and WI. Northeast consists of CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT and VI. Southeast consists of AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA and WV. Southwest consists of AZ, AR, CO, KS, LA, MO, NM, OK, TX and UT. West consists of AK, CA, GU, HI, ID, MT, NV, OR, WA and WY. |
Single-Family [Member] | |
Concentration Risk [Line Items] | |
Schedule of Risk in Force Mortgage Insurance Coverage | The following table displays our total mortgage insurance risk in force by primary and pool insurance, as well as the total risk-in-force mortgage insurance coverage as a percentage of the single-family conventional guaranty book of business. As of December 31, 2019 2018 Risk in Force Percentage of Single-Family Conventional Guaranty Book of Business Risk in Force Percentage of Single-Family Conventional Guaranty Book of Business (Dollars in millions) Mortgage insurance risk in force: Primary mortgage insurance $ 162,855 $ 152,379 Pool mortgage insurance 339 409 Total mortgage insurance risk in force $ 163,194 6% $ 152,788 5% |
Schedules of Concentration of Risk, by Risk Factor | The table below displays the percentage of our single-family guaranty book of business serviced by our top five depository single-family mortgage servicers and top five non-depository single-family mortgage servicers, and identifies one servicer that serviced more than 10% of our single-family guaranty book of business based on unpaid principal balance. Percentage of Single-Family Guaranty Book of Business As of December 31, 2019 2018 Wells Fargo Bank, N.A. (together with its affiliates) 17 % 18 % Remaining top five depository servicers 15 16 Top five non-depository servicers 27 22 Total 59 % 56 % |
Schedule of Delinquency Status Guaranty Book of Business | The following tables display the delinquency status and serious delinquency rates for specified loan categories of our single-family conventional guaranty book of business. As of December 31, 2019 2018 30 Days Delinquent 60 Days Delinquent Seriously Delinquent (1) 30 Days Delinquent 60 Days Delinquent Seriously Delinquent (1) Percentage of single-family conventional guaranty book of business based on UPB 1.07 % 0.29 % 0.59 % 1.17 % 0.32 % 0.69 % Percentage of single-family conventional loans based on loan count 1.27 0.35 0.66 1.37 0.38 0.76 |
Schedule of Risk Characteristics Guaranty Book of Business | As of December 31, 2019 2018 Percentage of Single-Family of Business Based on UPB Seriously Delinquent Rate (1) Percentage of Single-Family of Business Based on UPB Seriously Delinquent Rate (1) Estimated mark-to-market LTV ratio: Greater than 100% * 10.14 % * 9.85 % Geographical distribution: California 19 0.32 19 0.34 Florida 6 0.84 6 1.16 Illinois 4 0.91 4 0.98 New Jersey 3 1.13 4 1.38 New York 5 1.18 5 1.40 All other states 63 0.64 62 0.73 Product distribution: Alt-A 2 2.95 2 3.35 Vintages: 2004 and prior 2 2.48 3 2.69 2005-2008 4 4.11 5 4.61 2009-2019 94 0.35 92 0.34 * Represents less than 0.5% of single-family conventional business volume or book of business. (1) Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2019 and 2018 . |
Schedule of Risk in Force Mortgage Insurance Coverage, by Counterparty | The table below displays our mortgage insurer counterparties that provided approximately 10% or more of the risk-in-force mortgage insurance coverage on mortgage loans in our single-family conventional guaranty book of business. Percentage of Risk in Force Coverage by Mortgage Insurer As of December 31, 2019 2018 Counterparty: (1) Arch Capital Group Ltd. 23 % 25 % Radian Guaranty, Inc. 20 21 Mortgage Guaranty Insurance Corp. 18 18 Genworth Mortgage Insurance Corp. (2) 15 15 Essent Guaranty, Inc. 14 12 Others 10 9 Total 100 % 100 % (1) Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty. (2) |
Multifamily [Member] | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The table below displays the percentage of our multifamily guaranty book of business serviced by our top five multifamily mortgage servicers, and identifies two servicers that serviced 10% or more of our multifamily guaranty book of business based on unpaid principal balance. Percentage of Multifamily Guaranty Book of Business As of December 31, 2019 2018 Wells Fargo Bank, N.A. (together with its affiliates) 13 % 14 % Walker & Dunlop, LLC 12 12 Remaining top five servicers 23 22 Total 48 % 48 % |
Schedule of Delinquency Status Guaranty Book of Business | As of December 31, 2019 (1) 2018 (1) 30 Days Delinquent Seriously Delinquent (2) 30 Days Delinquent Seriously Delinquent (2) Percentage of multifamily guaranty book of business 0.02 % 0.04 % 0.02 % 0.06 % |
Schedule of Risk Characteristics Guaranty Book of Business | As of December 31, 2019 2018 Percentage of Multifamily Guaranty Book of Business (1) Percentage Seriously Delinquent (2)(3) Percentage of Multifamily Guaranty Book of Business (1) Percentage Seriously Delinquent (2)(3) Original LTV ratio: Greater than 80% 1 % — % 1 % — % Less than or equal to 80% 99 0.04 99 0.06 Current DSCR below 1.0 (4) 2 0.48 2 1.38 (1) Calculated based on the aggregate unpaid principal balance of multifamily loans for each category divided by the aggregate unpaid principal balance of loans in our multifamily guaranty book of business. (2) Consists of multifamily loans that were 60 days or more past due as of the dates indicated. (3) Calculated based on the unpaid principal balance of multifamily loans that were seriously delinquent divided by the aggregate unpaid principal balance of multifamily loans for each category included in our multifamily guaranty book of business. (4) Our estimates of current DSCRs are based on the latest available income information for these properties. Although we use the most recently available results from our multifamily borrowers, there is a lag in reporting, which typically can range from 3 to 6 months but in some cases may be longer. For certain properties, we do not receive updated financial information. |
Netting Arrangements (Tables)
Netting Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting | The tables below display information related to derivatives, securities purchased under agreements to resell or similar arrangements, and securities sold under agreements to repurchase or similar arrangements, which are subject to an enforceable master netting arrangement or similar agreement that are either offset or not offset in our consolidated balance sheets. As of December 31, 2019 Gross Amount Offset (1) Net Amount Presented in our Consolidated Balance Sheets Amounts Not Offset in our Consolidated Balance Sheets Gross Amount Financial Instruments (2) Collateral (3) Net Amount (Dollars in millions) Assets: OTC risk management derivatives $ 1,354 $ (1,334 ) $ 20 $ — $ — $ 20 Cleared risk management derivatives — 46 46 — — 46 Mortgage commitment derivatives 165 — 165 (101 ) (1 ) 63 Total derivative assets 1,519 (1,288 ) 231 (4 ) (101 ) (1 ) 129 Securities purchased under agreements to resell or similar arrangements (5) 24,928 — 24,928 — (24,928 ) — Total assets $ 26,447 $ (1,288 ) $ 25,159 $ (101 ) $ (24,929 ) $ 129 Liabilities: OTC risk management derivatives $ (1,798 ) $ 1,695 $ (103 ) $ — $ — $ (103 ) Cleared risk management derivatives — (1 ) (1 ) — 1 — Mortgage commitment derivatives (306 ) — (306 ) 101 181 (24 ) Total derivative liabilities (2,104 ) 1,694 (410 ) (4 ) 101 182 (127 ) Securities sold under agreements to repurchase or similar arrangements (5) (478 ) — (478 ) — 475 (3 ) Total liabilities $ (2,582 ) $ 1,694 $ (888 ) $ 101 $ 657 $ (130 ) As of December 31, 2018 Gross Amount Offset (1) Net Amount Presented in our Consolidated Balance Sheets Amounts Not Offset in our Consolidated Balance Sheets Gross Amount Financial Instruments (2) Collateral (3) Net Amount (Dollars in millions) Assets: OTC risk management derivatives $ 2,288 $ (2,273 ) $ 15 $ — $ — $ 15 Cleared risk management derivatives — 7 7 — — 7 Mortgage commitment derivatives 379 — 379 (153 ) (7 ) 219 Total derivative assets 2,667 (2,266 ) 401 (4 ) (153 ) (7 ) 241 Securities purchased under agreements to resell or similar arrangements (5) 48,288 — 48,288 — (48,288 ) — Total assets $ 50,955 $ (2,266 ) $ 48,689 $ (153 ) $ (48,295 ) $ 241 Liabilities: OTC risk management derivatives $ (2,433 ) $ 2,342 $ (91 ) $ — $ — $ (91 ) Cleared risk management derivatives — (27 ) (27 ) — 23 (4 ) Mortgage commitment derivatives (648 ) — (648 ) 153 466 (29 ) Total derivative liabilities (3,081 ) 2,315 (766 ) (4 ) 153 489 (124 ) Total liabilities $ (3,081 ) $ 2,315 $ (766 ) $ 153 $ 489 $ (124 ) (1) Represents the effect of the right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received and accrued interest. (2) Mortgage commitment derivative amounts reflect where we have recognized both an asset and a liability with the same counterparty under an enforceable master netting arrangement but we have not elected to offset the related amounts in our consolidated balance sheets. (3) Represents collateral received that has not been recognized and not offset in our consolidated balance sheets as well as collateral posted which has been recognized but not offset in our consolidated balance sheets. Does not include collateral held or posted in excess of our exposure. The fair value of non-cash collateral we pledged which the counterparty was permitted to sell or repledge was $2.3 billion and $1.9 billion as of December 31, 2019 and 2018 , respectively. The fair value of non-cash collateral received was $24.7 billion and $48.4 billion , of which $23.8 billion and $45.7 billion could be sold or repledged as of December 31, 2019 and 2018 , respectively. None of the underlying collateral was sold or repledged as of December 31, 2019 and 2018 , respectively. (4) Excludes derivative assets of $40 million and $57 million as of December 31, 2019 and 2018 , respectively, and derivative liabilities of $25 million and $11 million recognized in our consolidated balance sheets as of December 31, 2019 and 2018 , respectively, that are not subject to enforceable master netting arrangements. (5) Includes $11.4 billion and $15.4 billion of securities purchased under agreements to resell classified as “Cash and cash equivalents” in our consolidated balance sheets as of December 31, 2019 and 2018 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Recurring Changes in Fair Value | The following tables display our assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option. Fair Value Measurements as of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment (1) Estimated Fair Value (Dollars in millions) Recurring fair value measurements: Assets: Trading securities: Mortgage-related securities: Fannie Mae $ — $ 3,379 $ 45 $ — $ 3,424 Other agency — 4,489 1 — 4,490 Private-label and other mortgage securities — 629 — — 629 Non-mortgage-related securities: U.S. Treasury securities 39,501 — — — 39,501 Other securities — 79 — — 79 Total trading securities 39,501 8,576 46 — 48,123 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 1,349 171 — 1,520 Other agency — 198 — — 198 Alt-A and subprime private-label securities — 57 — — 57 Mortgage revenue bonds — — 315 — 315 Other — 8 306 — 314 Total available-for-sale securities — 1,612 792 — 2,404 Mortgage loans — 7,137 688 — 7,825 Other assets: Risk management derivatives: Swaps — 1,071 159 — 1,230 Swaptions — 124 — — 124 Netting adjustment — — — (1,288 ) (1,288 ) Mortgage commitment derivatives — 165 — — 165 Credit enhancement derivatives — — 40 — 40 Total other assets — 1,360 199 (1,288 ) 271 Total assets at fair value $ 39,501 $ 18,685 $ 1,725 $ (1,288 ) $ 58,623 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 5,289 $ 398 $ — $ 5,687 Total of Fannie Mae — 5,289 398 — 5,687 Of consolidated trusts — 21,805 75 — 21,880 Total long-term debt — 27,094 473 — 27,567 Other liabilities: Risk management derivatives: Swaps — 1,346 1 — 1,347 Swaptions — 440 11 — 451 Netting adjustment — — — (1,694 ) (1,694 ) Mortgage commitment derivatives — 306 — — 306 Credit enhancement derivatives — — 25 — 25 Total other liabilities — 2,092 37 (1,694 ) 435 Total liabilities at fair value $ — $ 29,186 $ 510 $ (1,694 ) $ 28,002 Fair Value Measurements as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment (1) Estimated Fair Value (Dollars in millions) Assets: Cash equivalents (2) $ 748 $ — $ — $ — $ 748 Trading securities: Mortgage-related securities: Fannie Mae — 1,435 32 — 1,467 Other agency — 3,503 — — 3,503 Private-label and other mortgage securities — 1,305 1 — 1,306 Non-mortgage-related securities: U.S. Treasury securities 35,502 — — — 35,502 Other securities — 89 — — 89 Total trading securities 35,502 6,332 33 — 41,867 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 1,645 152 — 1,797 Other agency — 256 — — 256 Alt-A and subprime private-label securities — 568 24 — 592 Mortgage revenue bonds — — 434 — 434 Other — 8 342 — 350 Total available-for-sale securities — 2,477 952 — 3,429 Mortgage loans — 7,985 937 — 8,922 Other assets: Risk management derivatives: Swaps — 1,962 115 — 2,077 Swaptions — 211 — — 211 Netting adjustment — — — (2,266 ) (2,266 ) Mortgage commitment derivatives — 342 37 — 379 Credit enhancement derivatives — — 57 — 57 Total other assets — 2,515 209 (2,266 ) 458 Total assets at fair value $ 36,250 $ 19,309 $ 2,131 $ (2,266 ) $ 55,424 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 6,475 $ 351 $ — $ 6,826 Total of Fannie Mae — 6,475 351 — 6,826 Of consolidated trusts — 23,552 201 — 23,753 Total long-term debt — 30,027 552 — 30,579 Other liabilities: Risk management derivatives: Swaps — 2,089 2 — 2,091 Swaptions — 342 — — 342 Netting adjustment — — — (2,315 ) (2,315 ) Mortgage commitment derivatives — 646 2 — 648 Credit enhancement derivatives — — 11 — 11 Total other liabilities — 3,077 15 (2,315 ) 777 Total liabilities at fair value $ — $ 33,104 $ 567 $ (2,315 ) $ 31,356 (1) Derivative contracts are reported on a gross basis by level. The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. (2) Cash equivalents are comprised of U.S. Treasuries that have a maturity at the date of acquisition of three months or less. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The tables also display gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized in our consolidated statements of operations and comprehensive income for Level 3 assets and liabilities. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2019 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2019 (1) Balance, December 31, 2018 Included in Net Income Included in Total OCI Gains/(Losses) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2019 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 32 $ 3 $ — $ 77 $ (22 ) $ — $ (16 ) $ (108 ) $ 79 $ 45 $ 1 $ — Other agency — — — — — — — — 1 1 — — Private-label and other mortgage securities 1 — — — — — (1 ) — — — — — Total trading securities $ 33 $ 3 (6)(7) $ — $ 77 $ (22 ) $ — $ (17 ) $ (108 ) $ 80 $ 46 $ 1 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 152 $ — $ 7 $ — $ — $ — $ (8 ) $ (103 ) $ 123 $ 171 $ — $ 6 Alt-A and subprime private-label securities 24 5 (5 ) — (23 ) — (1 ) — — — — — Mortgage revenue bonds 434 1 (3 ) — (5 ) — (112 ) — — 315 — (1 ) Other 342 13 (10 ) — — — (37 ) (3 ) 1 306 — (8 ) Total available-for-sale securities $ 952 $ 19 (7)(8) $ (11 ) $ — $ (28 ) $ — $ (158 ) $ (106 ) $ 124 $ 792 $ — $ (3 ) Mortgage loans $ 937 $ 46 (6)(7) $ — $ — $ (52 ) $ — $ (136 ) $ (254 ) $ 147 $ 688 $ 26 $ — Net derivatives 194 109 (6) — — — — (119 ) (10 ) (12 ) 162 3 — Long-term debt: Of Fannie Mae: Senior floating (351 ) (47 ) (6) — — — — — — — (398 ) (47 ) — Of consolidated trusts (201 ) (8 ) (6)(7) — — — (2 ) 19 200 (83 ) (75 ) (4 ) — Total long-term debt $ (552 ) $ (55 ) $ — $ — $ — $ (2 ) $ 19 $ 200 $ (83 ) $ (473 ) $ (51 ) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2018 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2018 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2018 (1) Balance, December 31, 2017 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2018 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 971 $ 163 $ — $ 1 $ (1,059 ) $ — $ (1 ) $ (44 ) $ 1 $ 32 $ 4 $ — Other agency 35 (1 ) — — — — (1 ) (33 ) — — — — Private-label and other mortgage securities 195 (85 ) — — — — (5 ) (104 ) — 1 — — Total trading securities $ 1,201 $ 77 (6)(7) $ — $ 1 $ (1,059 ) $ — $ (7 ) $ (181 ) $ 1 $ 33 $ 4 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 208 $ 2 $ 1 $ — $ — $ — $ (10 ) $ (49 ) $ — $ 152 $ — $ — Alt-A and subprime private-label securities 77 — (45 ) — — — (4 ) (4 ) — 24 — 1 Mortgage revenue bonds 671 — (7 ) — (22 ) — (208 ) — — 434 — (2 ) Other 357 28 (2 ) — — — (41 ) — — 342 — 1 Total available-for-sale securities $ 1,313 $ 30 (7)(8) $ (53 ) $ — $ (22 ) $ — $ (263 ) $ (53 ) $ — $ 952 $ — $ — Mortgage loans $ 1,116 $ 38 (6)(7) $ — $ — $ — $ — $ (216 ) $ (162 ) $ 161 $ 937 $ 14 $ — Net derivatives 134 (38 ) (6) — — — — 45 53 — 194 40 — Long-term debt: Of Fannie Mae: Senior floating (376 ) 25 (6) — — — — — — — (351 ) 25 — Of consolidated trusts (582 ) 9 (6)(7) — — — 1 44 541 (214 ) (201 ) (2 ) — Total long-term debt $ (958 ) $ 34 $ — $ — $ — $ 1 $ 44 $ 541 $ (214 ) $ (552 ) $ 23 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended December 31, 2017 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2017 (5)(6) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2017 (1) Balance, December 31, 2016 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 (4) Transfers into Level 3 (4) Balance, December 31, 2017 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 835 $ 41 $ — $ 64 $ — $ — $ (5 ) $ (991 ) $ 1,027 $ 971 $ 6 $ — Other agency — — — 35 — — — — — 35 — — Private-label and other mortgage securities 292 18 — — (81 ) — (34 ) — — 195 5 — Total trading securities $ 1,127 $ 59 (6)(7) $ — $ 99 $ (81 ) $ — $ (39 ) $ (991 ) $ 1,027 $ 1,201 $ 11 $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 230 $ 2 $ (1 ) $ — $ — $ — $ (9 ) $ (72 ) $ 58 $ 208 $ — $ — Other agency 5 — — — (1 ) — — (4 ) — — — — Alt-A and subprime private-label securities 217 54 (53 ) — (105 ) — (36 ) — — 77 — 4 Mortgage revenue bonds 1,272 35 (11 ) — (392 ) — (233 ) — — 671 — 4 Other 429 8 (11 ) — (5 ) — (64 ) — — 357 — (7 ) Total available-for-sale securities $ 2,153 $ 99 (7)(8) $ (76 ) $ — $ (503 ) $ — $ (342 ) $ (76 ) $ 58 $ 1,313 $ — $ 1 Mortgage loans $ 1,197 $ 45 (6)(7) $ — $ 5 $ — $ — $ (233 ) $ (70 ) $ 172 $ 1,116 $ 25 $ — Net derivatives 44 111 (6) — — — — (22 ) 6 (5 ) 134 13 — Long-term debt: Of Fannie Mae: Senior floating (347 ) (29 ) (6) — — — — — — — (376 ) (29 ) — Of consolidated trusts (241 ) (9 ) (6)(7) — — — (2 ) 66 388 (784 ) (582 ) (11 ) — Total long-term debt $ (588 ) $ (38 ) $ — $ — $ — $ (2 ) $ 66 $ 388 $ (784 ) $ (958 ) $ (40 ) $ — (1) Gains (losses) included in other comprehensive income are included in “Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes” in our consolidated statements of operations and comprehensive income. (2) Purchases and sales include activity related to the consolidation and deconsolidation of assets of securitization trusts. For 2018, includes the dissolution of a Fannie Mae-wrapped private-label securities trust. (3) Issues and settlements include activity related to the consolidation and deconsolidation of liabilities of securitization trusts. (4) Transfers into and out of Level 3 consisted primarily of Fannie Mae securities backed by private-label mortgage-related securities. Prices for these securities are based on inputs that were not readily observable. Transfers out of Level 3 also occurred for Alt-A loans and subprime private-label mortgage-related securities. Prices for these securities were available from multiple third-party vendors and demonstrated an increased and sustained level of observability over time. (5) Amount represents temporary changes in fair value. Amortization, accretion and OTTI are not considered unrealized and are not included in this amount. (6) Gains (losses) are included in “ Fair value gains (losses), net ” in our consolidated statements of operations and comprehensive income. (7) Gains (losses) are included in “ Net interest income ” in our consolidated statements of operations and comprehensive income. (8) Gains (losses) are included in “ Investment gains, net ” in our consolidated statements of operations and comprehensive income. |
Valuation Techniques and Significant Unobservable Inputs for Level 3 Assets and Liabilities | The following tables display valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the reporting date. Fair Value Measurements as of December 31, 2019 Fair Value Significant Valuation Techniques Significant Unobservable Inputs (1) Range (1) Weighted - Average (1)(2) (Dollars in millions) Recurring fair value measurements: Trading securities: Mortgage-related securities: Agency (3) $ 46 Various Available-for-sale securities: Mortgage-related securities: Agency (3) 107 Consensus 64 Various Total agency 171 Mortgage Revenue Bonds 222 Single Vendor Spreads (bps) 23.0 - 205.1 76.1 93 Various Total mortgage revenue bonds 315 Other 267 Discounted Cash Flow Spreads (bps) 300.0 300.0 39 Various Total other 306 Total available-for-sale securities $ 792 Net derivatives $ 147 Dealer Mark 15 Various Total net derivatives $ 162 Fair Value Measurements as of December 31, 2018 Fair Value Significant Valuation Techniques Significant Unobservable Inputs (1) Range (1) Weighted - Average (1)(2) (Dollars in millions) Recurring fair value measurements: Trading securities: Mortgage-related securities: Agency (3) $ 32 Various Private-label and other mortgage securities 1 Various Total trading securities $ 33 Available-for-sale securities: Mortgage-related securities: Agency (3) $ 152 Various Alt-A and subprime private-label securities 24 Various Mortgage revenue bonds 349 Single Vendor Spreads (bps) (0.5) - 332.8 59.0 85 Various Total mortgage revenue bonds 434 Other 294 Discounted Cash Flow Default Rate (%) 4.7 4.7 Prepayment Speed (%) 8.2 8.2 Severity (%) 70.0 70.0 Spreads (bps) 75.4 - 390.0 389.1 48 Various Total other 342 Total available-for-sale securities $ 952 Net derivatives $ 113 Dealer Mark 81 Various Total net derivatives $ 194 (1) Valuation techniques for which no unobservable inputs are disclosed generally reflect the use of third-party pricing services or dealers, and the range of unobservable inputs applied by these sources is not readily available or cannot be reasonably estimated. Where we have disclosed unobservable inputs for consensus and single vendor techniques, those inputs are based on our validations performed at the security level using discounted cash flows. (2) Unobservable inputs were weighted by the relative fair value of the instruments. (3) Includes Fannie Mae and Freddie Mac securities. |
Level 3 Assets Measured on Nonrecurring Basis | he following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. The significant unobservable inputs related to these techniques primarily relate to collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property. Fair Value Measurements as of December 31, Valuation Techniques 2019 2018 (Dollars in millions) Nonrecurring fair value measurements: Mortgage loans held for sale, at lower of cost or fair value Consensus $ 471 $ 631 Single Vendor 605 1,119 Total mortgage loans held for sale, at lower of cost or fair value 1,076 1,750 Single-family mortgage loans held for investment, at amortized cost Internal Model 555 818 Multifamily mortgage loans held for investment, at amortized cost Asset Manager Estimate 24 102 Various 16 40 Total multifamily mortgage loans held for investment, at amortized cost 40 142 Acquired property, net: (1) Single-family Accepted Offers 101 151 Appraisals 362 419 Walk Forwards 240 181 Internal Model 164 219 Various 51 41 Total single-family 918 1,011 Multifamily Various 9 50 Total nonrecurring assets at fair value $ 2,598 $ 3,771 (1) The most commonly used techniques in our valuation of acquired property are a proprietary home price model and third-party valuations (both current and walk forward). Based on the number of properties measured as of December 31, 2019 , these methodologies comprised approximately 85% of our valuations, while accepted offers comprised approximately 12% of our valuations. Based on the number of properties measured as of December 31, 2018 , these methodologies comprised approximately 82% of our valuations, while accepted offers comprised approximately 15% of our valuations. Instruments Valuation Techniques Classification U.S Treasury Securities We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy. Level 1 Trading Securities and Available-for-Sale Securities We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Dealer Mark: Uses one dealer price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Consensus: Uses an average of two or more vendor prices for similar securities. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above. Level 2 and 3 Discounted Cash Flow: In the absence of prices provided by third-party pricing services supported by observable market data, we estimate the fair value of a portion of our securities using a discounted cash flow technique that uses inputs such as default rates, prepayment speeds, loss severity and spreads based on market assumptions where available. For private-label securities, an increase in unobservable prepayment speeds in isolation would generally result in an increase in fair value, and an increase in unobservable spreads, severity rates or default rates in isolation would generally result in a decrease in fair value. For mortgage revenue bonds classified as Level 3 of the valuation hierarchy, an increase in unobservable spreads would result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of our recurring Level 3 securities above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs. Mortgage Loans Held for Investment Build-up: We derive the fair value of performing mortgage loans using a build-up valuation technique starting with the base value for our Fannie Mae MBS with similar characteristics and then add or subtract the fair value of the associated guaranty asset, guaranty obligation (“GO”) and master servicing arrangement. We set the GO equal to the estimated fair value we would receive if we were to issue our guaranty to an unrelated party in a stand-alone arm’s length transaction at the measurement date. The fair value of the GO is estimated based on our current guaranty pricing for loans underwritten after 2008 and our internal valuation models considering management’s best estimate of key loan characteristics for loans underwritten before 2008. Our performing loans are generally classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that unobservable inputs are significant, the loans are classified as Level 3 of the valuation hierarchy. Level 2 and 3 Consensus: Calculated through the extrapolation of indicative sample bids obtained from multiple active market participants plus the estimated value of any applicable mortgage insurance, the estimated fair value using the Consensus method represents an estimate of the prices we would receive if we were to sell these single-family nonperforming and certain reperforming loans in the whole-loan market. The fair value of any mortgage insurance is estimated by taking the loan-level coverage and adjusting it by the expected claims paying ability of the associated mortgage insurer. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. We estimate the fair value for a portion of our senior-subordinated trust structures using the average of two or more vendor prices at the security level as a proxy for estimating loan fair value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. Single Vendor: We estimate the fair value of our reverse mortgages using the single vendor valuation technique. Internal Model: The internal model used in this process applies one of following two approaches when valuing the collateral depending on the historical accuracy of the two approaches. (1) The comparable foreclosed property sales approach is used in the majority of the internal model valuations. The comparable foreclosed property sales approach uses various factors such as geographic distance, transaction time and the value difference. (2) The median Metropolitan Statistical Area (“MSA”) approach is based on the median of all the foreclosure sales of REOs in a specific MSA or state when there is not enough REO sales in a specific MSA. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. Instruments Valuation Techniques Classification Mortgage Loans Held for Investment Appraisals: Uses appraisals to estimate the fair value for a portion of our multifamily loans based on either estimated replacement cost, the present value of future cash flows, or sales of similar properties. Significant unobservable inputs include estimated replacement or construction costs, property net operating income, capitalization rates, and adjustments made to sales of comparable properties based on characteristics such as financing, conditions of sale, and physical characteristics of the property. Broker Price Opinion (“BPO”): Uses BPO to estimate the fair value for a portion of our multifamily loans. This technique uses both current property value and the property value adjusted for stabilization and market conditions. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. Asset Manager Estimate (“AME”): This technique uses the net operating income and tax assessments of the specific property as well as MSA-specific market capitalization rates and average per unit sales values to estimate property fair value. Level 2 and 3 An increase in prepayment speeds in isolation would generally result in an increase in the fair value of our mortgage loans classified as Level 3 of the valuation hierarchy, and an increase in severity rates, default rates or spreads in isolation would generally result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of the mortgage loans classified as Level 3 above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs. Acquired Property, Net and Other Assets Single-family acquired property valuation techniques Appraisal: An appraisal is an estimate based on recent historical data of the value of a specific property by a certified or licensed appraiser. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s use of specific market research and a sales comparison approach that is similar to the appraisal process. This information, all of which is unobservable, is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value. Level 3 Appraisal and Broker Price Opinion Walk Forwards (“Walk Forwards”): We use these techniques to adjust appraisal and broker price opinion valuations for changing market conditions by applying a walk forward factor based on local price movements since the time the third-party value was obtained. Internal Model: We use an internal model to estimate fair value for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Multifamily acquired property valuation techniques Appraisals: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Broker Price Opinions: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Asset Manager Estimate (“AME”): We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Derivatives Assets and Liabilities (collectively “Derivatives”) The valuation process for the majority of our risk management derivatives uses observable market data provided by third-party sources, resulting in Level 2 classification of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Internal Model: We use internal models to value interest-rate derivatives which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount cash flows to present value. Dealer Mark: Certain highly complex structured swaps primarily use a single dealer mark due to lack of transparency in the market and may be modeled using observable interest rates and volatility levels as well as significant unobservable assumptions, resulting in Level 3 classification of the valuation hierarchy. Mortgage commitment derivatives that use observable market data, quotes and actual transaction price levels adjusted for market movement are typically classified as Level 2 of the valuation hierarchy. To the extent mortgage commitment derivatives include adjustments for market movement that cannot be corroborated by observable market data, we classify them as Level 3 of the valuation hierarchy. Level 2 and 3 Instruments Valuation Techniques Classification Debt of Fannie Mae and Consolidated Trusts We classify debt instruments that have quoted market prices in active markets for similar liabilities when traded as assets as Level 2 of the valuation hierarchy. For all valuation techniques used for debt instruments where there is limited activity or less transparency around these inputs to the valuation, these debt instruments are classified as Level 3 of the valuation hierarchy. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value for similar liabilities when traded as assets. Single Vendor: Uses a single vendor price that represents estimated fair value for these liabilities when traded as assets. Discounted Cash Flow: Uses spreads based on market assumptions where available. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Trading Securities and Available-for-Sale Securities.” Level 2 and 3 As of December 31, 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Netting Adjustment Estimated (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 49,423 $ 34,073 $ 15,350 $ — $ — $ 49,423 Federal funds sold and securities purchased under agreements to resell or similar arrangements 32,938 — 32,938 — — 32,938 Trading securities 41,867 35,502 6,332 33 — 41,867 Available-for-sale securities 3,429 — 2,477 952 — 3,429 Mortgage loans held for sale 7,701 — 238 7,856 — 8,094 Mortgage loans held for investment, net of allowance for loan losses 3,241,694 — 2,990,104 216,404 — 3,206,508 Advances to lenders 3,356 — 3,354 2 — 3,356 Derivative assets at fair value 458 — 2,515 209 (2,266 ) 458 Guaranty assets and buy-ups 147 — — 356 — 356 Total financial assets $ 3,381,013 $ 69,575 $ 3,053,308 $ 225,812 $ (2,266 ) $ 3,346,429 Financial liabilities: Short-term debt: Of Fannie Mae $ 24,896 $ — $ 24,901 $ — $ — $ 24,901 Long-term debt: Of Fannie Mae 207,178 — 211,403 771 — 212,174 Of consolidated trusts 3,159,846 — 3,064,239 39,043 — 3,103,282 Derivative liabilities at fair value 777 — 3,077 15 (2,315 ) 777 Guaranty obligations 160 — — 121 — 121 Total financial liabilities $ 3,392,857 $ — $ 3,303,620 $ 39,950 $ (2,315 ) $ 3,341,255 The following is a description of the valuation techniques we use for fair value measurement of our financial instruments as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in certain specific situations. Instruments Description Classification Financial instruments for which fair value approximates carrying value We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash and cash equivalents, the majority of advances to lenders, and federal funds and securities sold/purchased under agreements to repurchase/resell. Level 1 and 2 Federal funds and securities sold/purchased under agreements to repurchase/resell The carrying value for the majority of these specific instruments approximates the fair value due to the short-term nature and the negligible inherent credit risk, as they involve the exchange of collateral that is easily traded. Were we to calculate the fair value of these instruments, we would use observable inputs. Level 2 Mortgage loans held for sale Loans are reported at the lower of cost or fair value in our consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are the same as for our HFI loans and are described under “Fair Value Measurement—Mortgage Loans Held for Investment.” To the extent that significant inputs are unobservable, the loans are classified within Level 3 of the valuation hierarchy. Level 2 and 3 Mortgage loans held for investment For a description of loan valuation techniques, refer to “Fair Value Measurement—Mortgage Loans Held for Investment.” We measure the fair value of certain loans that are delivered under the Home Affordable Refinance Program (“HARP”) using a modified build-up approach while the loan is performing. Under this modified approach, we set the credit component of the consolidated loans (that is, the guaranty obligation) equal to the compensation we would currently receive for a loan delivered to us under the program because the total compensation for these loans is equal to their current exit price in the government-sponsored enterprise securitization market. We will continue to use this pricing methodology as long as the HARP program is available to market participants. If, subsequent to delivery, the refinanced loan becomes past due or is modified as a part of a troubled debt restructuring, the fair value of the guaranty obligation is then measured consistent with other loans that have similar characteristics. Level 2 and 3 Advances to lenders The carrying value for the majority of our advances to lenders approximates the fair value due to the short-term nature and the negligible inherent credit risk. If we were to calculate the fair value of these instruments, we would use discounted cash flow models that use observable inputs such as spreads based on market assumptions, resulting in Level 2 classification. Advances to lenders also include loans that do not qualify for Fannie Mae MBS securitization and are valued using a discounted cash flow technique that uses estimated credit spreads of similar collateral and prepayment speeds that consider recent prepayment activity. We classify these valuations as Level 3 given that significant inputs are not observable or are determined by extrapolation of observable inputs. Level 2 and 3 Guaranty assets and buy-ups Guaranty assets related to our portfolio securitizations are recorded in our consolidated balance sheets at fair value on a recurring basis and are classified as Level 3. Guaranty assets in lender swap transactions are recorded in our consolidated balance sheets at the lower of cost or fair value. These assets, which are measured at fair value on a nonrecurring basis, are also classified as Level 3. We estimate the fair value of guaranty assets by using proprietary models to project cash flows based on management’s best estimate of key assumptions such as prepayment speeds and forward yield curves. Because guaranty assets are similar to an interest-only income stream, the projected cash flows are discounted at rates that consider the current spreads on interest-only swaps that reference Fannie Mae MBS and also liquidity considerations of the guaranty assets. The fair value of guaranty assets includes the fair value of any associated buy-ups. Level 3 Guaranty obligations The fair value of all guaranty obligations, measured subsequent to their initial recognition, is our estimate of a hypothetical transaction price we would receive if we were to issue our guaranty to an unrelated party in a standalone arm’s-length transaction at the measurement date. The valuation methodology and inputs used in estimating the fair value of the guaranty obligations are described under “Fair Value Measurement—Mortgage Loans Held for Investment—Build-up.” Level 3 |
Fair Value of Financial Instruments | The following table displays the carrying value and estimated fair value of our financial instruments. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that we do not record in our consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes all non-financial instruments; therefore, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities. As of December 31, 2019 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Netting Adjustment Estimated (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 61,407 $ 50,057 $ 11,350 $ — $ — $ 61,407 Federal funds sold and securities purchased under agreements to resell or similar arrangements 13,578 — 13,578 — — 13,578 Trading securities 48,123 39,501 8,576 46 — 48,123 Available-for-sale securities 2,404 — 1,612 792 — 2,404 Mortgage loans held for sale 6,773 — 229 7,054 — 7,283 Mortgage loans held for investment, net of allowance for loan losses 3,327,389 — 3,270,535 127,650 — 3,398,185 Advances to lenders 6,453 — 6,451 2 — 6,453 Derivative assets at fair value 271 — 1,360 199 (1,288 ) 271 Guaranty assets and buy-ups 142 — — 305 — 305 Total financial assets $ 3,466,540 $ 89,558 $ 3,313,691 $ 136,048 $ (1,288 ) $ 3,538,009 Financial liabilities: Federal funds purchased and securities sold under agreements to repurchase $ 478 $ — $ 478 $ — $ — $ 478 Short-term debt: Of Fannie Mae 26,662 — 26,667 — — 26,667 Long-term debt: Of Fannie Mae 155,585 — 164,144 401 — 164,545 Of consolidated trusts 3,285,139 — 3,312,763 31,827 — 3,344,590 Derivative liabilities at fair value 435 — 2,092 37 (1,694 ) 435 Guaranty obligations 154 — — 97 — 97 Total financial liabilities $ 3,468,453 $ — $ 3,506,144 $ 32,362 $ (1,694 ) $ 3,536,812 As of December 31, 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Netting Adjustment Estimated (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 49,423 $ 34,073 $ 15,350 $ — $ — $ 49,423 Federal funds sold and securities purchased under agreements to resell or similar arrangements 32,938 — 32,938 — — 32,938 Trading securities 41,867 35,502 6,332 33 — 41,867 Available-for-sale securities 3,429 — 2,477 952 — 3,429 Mortgage loans held for sale 7,701 — 238 7,856 — 8,094 Mortgage loans held for investment, net of allowance for loan losses 3,241,694 — 2,990,104 216,404 — 3,206,508 Advances to lenders 3,356 — 3,354 2 — 3,356 Derivative assets at fair value 458 — 2,515 209 (2,266 ) 458 Guaranty assets and buy-ups 147 — — 356 — 356 Total financial assets $ 3,381,013 $ 69,575 $ 3,053,308 $ 225,812 $ (2,266 ) $ 3,346,429 Financial liabilities: Short-term debt: Of Fannie Mae $ 24,896 $ — $ 24,901 $ — $ — $ 24,901 Long-term debt: Of Fannie Mae 207,178 — 211,403 771 — 212,174 Of consolidated trusts 3,159,846 — 3,064,239 39,043 — 3,103,282 Derivative liabilities at fair value 777 — 3,077 15 (2,315 ) 777 Guaranty obligations 160 — — 121 — 121 Total financial liabilities $ 3,392,857 $ — $ 3,303,620 $ 39,950 $ (2,315 ) $ 3,341,255 |
Fair Value Option | The following table displays the fair value and unpaid principal balance of the financial instruments for which we have made fair value elections. As of December 31, 2019 2018 Loans (1) Long-Term Debt of Fannie Mae Long-Term Debt of Consolidated Trusts Loans (1) Long-Term Debt of Fannie Mae Long-Term Debt of Consolidated Trusts (Dollars in millions) Fair value $ 7,825 $ 5,687 $ 21,880 $ 8,922 $ 6,826 $ 23,753 Unpaid principal balance 7,514 5,200 19,653 8,832 6,241 22,080 (1) Includes nonaccrual loans with a fair value of $129 million and $161 million as of December 31, 2019 and 2018 , respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of December 31, 2019 and 2018 is $11 million and $19 million , respectively. Includes loans that are 90 days or more past due with a fair value of $80 million and $102 million as of December 31, 2019 and 2018 , respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of December 31, 2019 and 2018 is $10 million and $14 million , respectively. |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Non Cancelable Future Commitments by Remaining Maturity [Table Text Block] | The following table summarizes by remaining maturity, non-cancelable future commitments related to loan and mortgage purchases, operating leases and other agreements. As of December 31, 2019 Loans and Mortgage-Related Securities (1) Operating Leases (2) Other (3) (Dollars in millions) 2020 $ 74,283 $ 59 $ 109 2021 — 55 40 2022 — 56 6 2023 — 49 — 2024 — 50 — Thereafter — 475 — Total $ 74,283 $ 744 $ 155 (1) Primarily includes $74.0 billion that has been accounted for as mortgage commitment derivatives. (2) Includes amounts related to office buildings and equipment leases. (3) Includes purchase commitments for certain telecommunications services, computer software and services, and other agreements and commitments. |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Information | The consolidated statements of operations for the quarterly periods in 2019 and 2018 are unaudited and in the opinion of management include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our consolidated statements of operations. Certain prior period amounts have been reclassified to conform to the current period presentation. The operating results for the interim periods are not necessarily indicative of the operating results to be expected for a full year or for other interim periods. For the 2019 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 427 $ 432 $ 418 $ 350 Available-for-sale securities 53 45 40 37 Mortgage loans 29,768 29,379 28,858 28,759 Federal funds sold and securities purchased under agreements to resell or similar arrangements 263 257 178 145 Other 32 41 47 43 Total interest income 30,543 30,154 29,541 29,334 Interest expense: Short-term debt (125 ) (119 ) (125 ) (132 ) Long-term debt (25,685 ) (24,885 ) (24,187 ) (23,352 ) Total interest expense (25,810 ) (25,004 ) (24,312 ) (23,484 ) Net interest income 4,733 5,150 5,229 5,850 Benefit for credit losses 650 1,225 1,857 279 Net interest income after benefit for credit losses 5,383 6,375 7,086 6,129 Investment gains, net 133 461 253 923 Fair value gains (losses), net (831 ) (754 ) (713 ) 84 Fee and other income 227 246 402 301 Non-interest income (loss) (471 ) (47 ) (58 ) 1,308 Administrative expenses: Salaries and employee benefits (386 ) (376 ) (361 ) (363 ) Professional services (225 ) (233 ) (241 ) (268 ) Other administrative expenses (133 ) (135 ) (147 ) (155 ) Total administrative expenses (744 ) (744 ) (749 ) (786 ) Foreclosed property expense (140 ) (128 ) (96 ) (151 ) TCCA fees (593 ) (600 ) (613 ) (626 ) Other expenses, net (408 ) (535 ) (571 ) (644 ) Total expenses (1,885 ) (2,007 ) (2,029 ) (2,207 ) Income before federal income taxes 3,027 4,321 4,999 5,230 Provision for federal income taxes (627 ) (889 ) (1,036 ) (865 ) Net income 2,400 3,432 3,963 4,365 Dividends distributed or amounts attributable to senior preferred stock (2,361 ) (3,365 ) (3,977 ) (4,266 ) Net income (loss) attributable to common stockholders $ 39 $ 67 $ (14 ) $ 99 Earnings per share: Basic $ 0.01 $ 0.01 $ 0.00 $ 0.02 Diluted 0.01 0.01 0.00 0.02 Weighted-average common shares outstanding: Basic 5,762 5,762 5,762 5,762 Diluted 5,893 5,893 5,762 5,893 For the 2018 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 236 $ 318 $ 363 $ 419 Available-for-sale securities 71 50 54 55 Mortgage loans 28,034 28,307 28,723 29,541 Federal funds sold and securities purchased under agreements to resell or similar arrangements 142 149 166 285 Other 31 33 38 34 Total interest income 28,514 28,857 29,344 30,334 Interest expense: Short-term debt (107 ) (110 ) (114 ) (137 ) Long-term debt (23,175 ) (23,370 ) (23,861 ) (25,224 ) Total interest expense (23,282 ) (23,480 ) (23,975 ) (25,361 ) Net interest income 5,232 5,377 5,369 4,973 Benefit for credit losses 217 1,296 716 1,080 Net interest income after benefit for credit losses 5,449 6,673 6,085 6,053 Investment gains, net 250 277 166 259 Fair value gains (losses), net 1,045 229 386 (539 ) Fee and other income 320 239 271 149 Non-interest income (loss) 1,615 745 823 (131 ) Administrative expenses: Salaries and employee benefits (381 ) (365 ) (355 ) (350 ) Professional services (243 ) (254 ) (247 ) (288 ) Other administrative expenses (126 ) (136 ) (138 ) (176 ) Total administrative expenses (750 ) (755 ) (740 ) (814 ) Foreclosed property expense (162 ) (139 ) (159 ) (157 ) TCCA fees (557 ) (565 ) (576 ) (586 ) Other expenses, net (203 ) (366 ) (377 ) (307 ) Total expenses (1,672 ) (1,825 ) (1,852 ) (1,864 ) Income before federal income taxes 5,392 5,593 5,056 4,058 Provision for federal income taxes (1,131 ) (1,136 ) (1,045 ) (828 ) Net income 4,261 4,457 4,011 3,230 Dividends distributed or amounts attributable to senior preferred stock (938 ) (4,459 ) (3,975 ) (3,241 ) Net income (loss) attributable to common stockholders $ 3,323 $ (2 ) $ 36 $ (11 ) Earnings per share: Basic $ 0.58 $ 0.00 $ 0.01 $ 0.00 Diluted 0.56 0.00 0.01 0.00 Weighted-average common shares outstanding: Basic 5,762 5,762 5,762 5,762 Diluted 5,893 5,762 5,893 5,762 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Senior Preferred Stock Purchase Agreement (Details) - USD ($) | Sep. 08, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2013 | Sep. 07, 2008 |
Related Parties [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | 35.00% | |||||||
Early Lender Funding Advances, Maximum Term | 60 days | ||||||||||
Weighted Average Number of Shares, Contingently Issuable | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 131,000,000 | 131,000,000 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 14,608,000,000 | $ 6,240,000,000 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 13,969,000,000 | 15,611,000,000 | $ 2,257,000,000 | ||||||||
US Treasury [Member] | |||||||||||
Related Parties [Line Items] | |||||||||||
Capital Reserve Amount, Fiscal Year, Senior Preferred Stock Purchase Agreement, Amendment | $ 3,000,000,000 | $ 25,000,000,000 | $ 3,000,000,000 | $ 0 | $ 0 | ||||||
Capital Reserve Amount Fiscal Year Senior Preferred Stock Purchase Agreement September 2019 Amendment | $ 22,000,000,000 | ||||||||||
Aggregate liquidation preference of senior preferred stock | $ 131,200,000,000 | ||||||||||
Percentage Of Common Shares Attributable to Warrants Issued to Treasury as Percentage to Total Diluted Common Shares | 79.90% | ||||||||||
Common stock warrant exercise price per share | $ 0.00001 | ||||||||||
Fair value of the warrant at issuance | $ 3,500,000,000 | ||||||||||
Forecast [Member] | US Treasury [Member] | |||||||||||
Related Parties [Line Items] | |||||||||||
Aggregate liquidation preference of senior preferred stock | $ 135,400,000,000 | ||||||||||
Series 2008-2 Senior Preferred Stock [Member] | |||||||||||
Related Parties [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||||||||
Aggregate liquidation preference of senior preferred stock | $ 1,000,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Related Parties (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2020 | |
Related Parties [Line Items] | ||||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | $ (626,000,000) | $ (613,000,000) | $ (600,000,000) | $ (593,000,000) | $ (586,000,000) | $ (576,000,000) | $ (565,000,000) | $ (557,000,000) | $ (2,432,000,000) | $ (2,284,000,000) | $ (2,096,000,000) | |
Basis Points of Each Dollar of Unpaid Principal Balance | 420.00% | 420.00% | ||||||||||
Affordable Housing Program Obligation | $ 0.35 | $ 0.35 | ||||||||||
US Treasury [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Percentage Of Common Shares Attributable to Warrants Issued to Treasury as Percentage to Total Diluted Common Shares | 79.90% | 79.90% | ||||||||||
Aggregate Liquidation Preference of Senior Preferred Stock | $ 131,200,000,000 | $ 131,200,000,000 | ||||||||||
Home Affordable Modification Program Administrative Expense Reimbursement | $ 20,000,000 | 24,000,000 | 40,000,000 | |||||||||
Increase of Guarantee Fee Rate Resulting from the Temporary Payroll Tax Cut Continuation Act of 2011. | 1000.00% | 1000.00% | ||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | $ (2,432,000,000) | (2,284,000,000) | (2,096,000,000) | |||||||||
US Treasury [Member] | Other Expense [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Affordable Housing Program Assessments | 98,000,000 | 75,000,000 | 84,000,000 | |||||||||
US Treasury [Member] | Forecast [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Aggregate Liquidation Preference of Senior Preferred Stock | $ 135,400,000,000 | |||||||||||
Federal Housing Finance Agency [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
FHFA assessment fees/expense | 121,000,000 | 110,000,000 | 112,000,000 | |||||||||
Common Securitization Solutions [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | 105,000,000 | 135,000,000 | $ 102,000,000 | |||||||||
Single-Family [Member] | US Treasury [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Recognized TCCA fees that had not been remitted to Treasury as of period end | $ 626,000,000 | $ 586,000,000 | $ 626,000,000 | $ 586,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies New Accounting Guidance (Details) $ in Billions | Jan. 01, 2020USD ($) |
Accounting Standards Update 2016-13 [Member] | Forecast [Member] | |
Item Effected [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1.1) |
Consolidations and Transfers _4
Consolidations and Transfers of Financial Assets Types of VIEs (Details) $ in Millions | Dec. 31, 2018USD ($) |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Conclusion to Consolidate, Change in Facts and Circumstances, Amount | $ 1,500 |
Consolidations and Transfers _5
Consolidations and Transfers of Financial Assets Unconsolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entities [Line Items] | ||
Trading, at fair value | $ 48,123 | $ 41,867 |
Available-for-sale securities | 2,404 | 3,429 |
Other assets | 20,765 | 17,004 |
Other liabilities | (11,097) | (9,947) |
Unpaid principal balance of mortgage loans | 3,299,954 | 3,223,783 |
Multifamily [Member] | ||
Variable Interest Entities [Line Items] | ||
Unpaid principal balance of mortgage loans | 327,593 | 293,858 |
Consolidated VIEs [Member] | ||
Variable Interest Entities [Line Items] | ||
Other liabilities | (376) | (356) |
Unconsolidated VIEs [Member] | Multifamily [Member] | ||
Variable Interest Entities [Line Items] | ||
Unpaid principal balance of mortgage loans | 327,600 | |
Unconsolidated VIEs [Member] | Fannie Mae Securities [Member] | ||
Variable Interest Entities [Line Items] | ||
Trading, at fair value | 2,543 | 1,422 |
Available-for-sale securities | 1,524 | 1,704 |
Unconsolidated VIEs [Member] | Non-Fannie Mae Securities [Member] | ||
Variable Interest Entities [Line Items] | ||
Trading, at fair value | 5,100 | 4,809 |
Available-for-sale securities | 574 | 1,207 |
Unconsolidated VIEs [Member] | Mortgage-related securities [Member] | ||
Variable Interest Entities [Line Items] | ||
Trading, at fair value | 7,643 | 6,231 |
Available-for-sale securities | 2,098 | 2,911 |
Other assets | 56 | 66 |
Other liabilities | (78) | (101) |
Net carrying amount | 9,719 | 9,107 |
Maximum exposure to loss | 62,000 | 14,000 |
Total unconsolidated assets | 130,000 | 80,000 |
Unconsolidated VIEs [Member] | Partnership Interest [Member] | ||
Variable Interest Entities [Line Items] | ||
Net carrying amount | 79 | 89 |
Maximum exposure to loss | 98 | 111 |
Total unconsolidated assets | 2,000 | 2,300 |
Unconsolidated VIEs [Member] | Debt Securities [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum exposure to loss | 9,500 | 920 |
Total unconsolidated assets | $ 9,500 | $ 931 |
Consolidations and Transfers _6
Consolidations and Transfers of Financial Assets Transfers of Financial Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers of Financial Assets [Line Items] | |||
Portfolio securitizations: unpaid principal balance | $ 278,600 | $ 228,400 | $ 252,700 |
Unconsolidated VIEs [Member] | |||
Transfers of Financial Assets [Line Items] | |||
Retained interests: principal and interest received | 595 | 585 | $ 1,100 |
Unconsolidated VIEs [Member] | Single Class MBS, REMIC & Megas [Member] | |||
Transfers of Financial Assets [Line Items] | |||
Retained interests: unpaid principal balance | 2,900 | 1,500 | |
Retained interest: fair value | $ 4,000 | $ 2,200 |
Loans in Mortgage Portfolio (De
Loans in Mortgage Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | $ 3,299,954 | $ 3,223,783 | ||
Cost basis and fair value adjustments, net | 43,224 | 39,815 | ||
Allowance for loan losses for loans held for investment | (9,016) | (14,203) | $ (19,084) | $ (23,465) |
Total mortgage loans | 3,334,162 | 3,249,395 | ||
Carrying value of loans redesignated from HFI to HFS | 17,126 | 21,960 | 12,886 | |
Carrying value of loans redesignated from HFS to HFI | 28 | 56 | 113 | |
Sale of loans, unpaid principal balance | 19,737 | 21,918 | 12,184 | |
Realized gains on sales of mortgage loans | 1,238 | 444 | $ 723 | |
Single-Family [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | 2,972,361 | 2,929,925 | ||
Recorded investment of single-family mortgage loans referred to foreclosure | 7,600 | 10,100 | ||
Multifamily [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | $ 327,593 | $ 293,858 |
Mortgage Loans Aging (Details)
Mortgage Loans Aging (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | $ 55,266 | $ 60,485 |
Current, recorded investment | 3,281,663 | 3,194,683 |
Total recorded investment in loans | 3,336,929 | 3,255,168 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 164 | 195 |
Recorded investment in nonaccrual loans | 27,981 | 30,872 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 31,240 | 33,720 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 8,326 | 9,002 |
Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 15,700 | 17,763 |
Single-Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 55,144 | 60,258 |
Current, recorded investment | 2,951,167 | 2,899,246 |
Total recorded investment in loans | 3,006,311 | 2,959,504 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 164 | 195 |
Recorded investment in nonaccrual loans | $ 27,546 | $ 30,380 |
Single-Family [Member] | Minimum [Member] | ||
Table Footnote [Abstract] | ||
Serious delinquency: days past due | 90 days | 90 days |
Single-Family [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | $ 31,233 | $ 33,664 |
Single-Family [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 8,326 | 9,002 |
Single-Family [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 15,585 | 17,592 |
Single-Family [Member] | Primary [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 50,101 | 53,218 |
Current, recorded investment | 2,886,520 | 2,816,047 |
Total recorded investment in loans | 2,936,621 | 2,869,265 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 29 | 22 |
Recorded investment in nonaccrual loans | 24,573 | 26,170 |
Single-Family [Member] | Primary [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 28,909 | 30,471 |
Single-Family [Member] | Primary [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 7,497 | 7,881 |
Single-Family [Member] | Primary [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 13,695 | 14,866 |
Single-Family [Member] | Government [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 198 | 243 |
Current, recorded investment | 16,931 | 21,887 |
Total recorded investment in loans | 17,129 | 22,130 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 133 | 169 |
Recorded investment in nonaccrual loans | 0 | 0 |
Single-Family [Member] | Government [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 44 | 57 |
Single-Family [Member] | Government [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 21 | 17 |
Single-Family [Member] | Government [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 133 | 169 |
Single-Family [Member] | Alt-A [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 3,613 | 4,997 |
Current, recorded investment | 38,642 | 48,274 |
Total recorded investment in loans | 42,255 | 53,271 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 1 | 2 |
Recorded investment in nonaccrual loans | 2,198 | 3,082 |
Single-Family [Member] | Alt-A [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 1,721 | 2,332 |
Single-Family [Member] | Alt-A [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 602 | 821 |
Single-Family [Member] | Alt-A [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 1,290 | 1,844 |
Single-Family [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 1,232 | 1,800 |
Current, recorded investment | 9,074 | 13,038 |
Total recorded investment in loans | 10,306 | 14,838 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 1 | 2 |
Recorded investment in nonaccrual loans | 775 | 1,128 |
Single-Family [Member] | Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 559 | 804 |
Single-Family [Member] | Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 206 | 283 |
Single-Family [Member] | Other [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 467 | 713 |
Multifamily [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | 122 | 227 |
Current, recorded investment | 330,496 | 295,437 |
Total recorded investment in loans | 330,618 | 295,664 |
Recorded investment in loans 90 days or more delinquent and accruing interest | 0 | 0 |
Recorded investment in nonaccrual loans | $ 435 | $ 492 |
Multifamily [Member] | Minimum [Member] | ||
Table Footnote [Abstract] | ||
Serious delinquency: days past due | 60 days | 60 days |
Multifamily [Member] | Maximum [Member] | ||
Table Footnote [Abstract] | ||
Serious delinquency: days past due | 89 days | 89 days |
Multifamily [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | $ 7 | $ 56 |
Multifamily [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, recorded investment | $ 115 | $ 171 |
Mortgage Loans Credit Quality I
Mortgage Loans Credit Quality Indicators - SF (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 3,336,929 | $ 3,255,168 |
Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 3,006,311 | 2,959,504 |
Single-Family [Member] | Primary [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 2,936,621 | 2,869,265 |
Single-Family [Member] | Primary [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 2,556,685 | 2,521,766 |
Single-Family [Member] | Primary [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 243,459 | 228,614 |
Single-Family [Member] | Primary [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 131,653 | 109,548 |
Single-Family [Member] | Primary [Member] | Estimated mark-to-market loan-to-value ratio greater than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 4,824 | 9,337 |
Single-Family [Member] | Alt-A [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 42,255 | 53,271 |
Single-Family [Member] | Alt-A [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 37,932 | 45,476 |
Single-Family [Member] | Alt-A [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 2,225 | 3,804 |
Single-Family [Member] | Alt-A [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 1,078 | 1,997 |
Single-Family [Member] | Alt-A [Member] | Estimated mark-to-market loan-to-value ratio greater than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 1,020 | 1,994 |
Single-Family [Member] | Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 10,306 | 14,838 |
Single-Family [Member] | Other [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 9,002 | 12,291 |
Single-Family [Member] | Other [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 642 | 1,195 |
Single-Family [Member] | Other [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 318 | 645 |
Single-Family [Member] | Other [Member] | Estimated mark-to-market loan-to-value ratio greater than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 344 | 707 |
Single-Family [Member] | Government [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 17,129 | $ 22,130 |
Mortgage Loans Credit Quality_2
Mortgage Loans Credit Quality Indicators - MF (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 3,336,929 | $ 3,255,168 |
Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 330,618 | 295,664 |
Multifamily [Member] | Non-classified [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 323,773 | 289,231 |
Multifamily [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 5 | 1 |
Multifamily [Member] | Total classified [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 6,845 | $ 6,433 |
Mortgage Loans Individually Imp
Mortgage Loans Individually Impaired Loans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | $ 79,696 | $ 104,310 |
Individually impaired loans with related allowance recorded: total recorded investment | 76,543 | 99,481 |
Related allowance for loan losses | (8,220) | (13,295) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 22,424 | 19,689 |
Individually impaired loans with no related allowance recorded: total recorded investment | 21,333 | 18,622 |
Total individually impaired loans: unpaid principal balance | 102,120 | 123,999 |
Total individually impaired loans: total recorded investment | 97,876 | 118,103 |
Single-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 79,382 | 104,113 |
Individually impaired loans with related allowance recorded: total recorded investment | 76,228 | 99,285 |
Related allowance for loan losses | (8,175) | (13,255) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 22,061 | 19,346 |
Individually impaired loans with no related allowance recorded: total recorded investment | 20,968 | 18,276 |
Troubled debt restructuring recorded investment | 96,900 | 117,200 |
Single-Family [Member] | Primary [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 64,201 | 81,791 |
Individually impaired loans with related allowance recorded: total recorded investment | 62,150 | 78,688 |
Related allowance for loan losses | (5,884) | (9,406) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 19,047 | 15,939 |
Individually impaired loans with no related allowance recorded: total recorded investment | 18,249 | 15,191 |
Single-Family [Member] | Government [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 243 | 264 |
Individually impaired loans with related allowance recorded: total recorded investment | 247 | 270 |
Related allowance for loan losses | (48) | (55) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 64 | 61 |
Individually impaired loans with no related allowance recorded: total recorded investment | 60 | 56 |
Single-Family [Member] | Alt-A [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 11,453 | 16,576 |
Individually impaired loans with related allowance recorded: total recorded investment | 10,535 | 15,158 |
Related allowance for loan losses | (1,676) | (2,793) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 2,339 | 2,628 |
Individually impaired loans with no related allowance recorded: total recorded investment | 2,098 | 2,363 |
Single-Family [Member] | Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 3,485 | 5,482 |
Individually impaired loans with related allowance recorded: total recorded investment | 3,296 | 5,169 |
Related allowance for loan losses | (567) | (1,001) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 611 | 718 |
Individually impaired loans with no related allowance recorded: total recorded investment | 561 | 666 |
Multifamily [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: unpaid principal balance | 314 | 197 |
Individually impaired loans with related allowance recorded: total recorded investment | 315 | 196 |
Related allowance for loan losses | (45) | (40) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 363 | 343 |
Individually impaired loans with no related allowance recorded: total recorded investment | 365 | 346 |
Troubled debt restructuring recorded investment | $ 102 | $ 187 |
Mortgage Loans Individually I_2
Mortgage Loans Individually Impaired Loans - 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | $ 88,460 | $ 110,467 | $ 126,152 |
Individually impaired loans with related allowance recorded: total interest income recognized | 3,666 | 4,564 | 4,987 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 315 | 457 | 394 |
Individually impaired loans with no related allowance recorded: average recorded investment | 19,450 | 18,830 | 19,521 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 1,250 | 1,259 | 1,483 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 169 | 141 | 113 |
Individually impaired loans: average recorded investment | 107,910 | 129,297 | 145,673 |
Individually impaired loans: total interest income recognized | 4,916 | 5,823 | 6,470 |
Individually impaired loans: interest income recognized on a cash basis | 484 | 598 | 507 |
Single Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 88,173 | 110,232 | 125,879 |
Individually impaired loans with related allowance recorded: total interest income recognized | 3,659 | 4,561 | 4,978 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 315 | 457 | 394 |
Individually impaired loans with no related allowance recorded: average recorded investment | 19,075 | 18,494 | 19,224 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 1,219 | 1,245 | 1,464 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 169 | 141 | 113 |
Single Family [Member] | Primary [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 71,048 | 85,063 | 92,893 |
Individually impaired loans with related allowance recorded: total interest income recognized | 2,954 | 3,522 | 3,721 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 264 | 381 | 319 |
Individually impaired loans with no related allowance recorded: average recorded investment | 16,243 | 15,005 | 15,166 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 1,008 | 967 | 1,107 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 150 | 119 | 96 |
Single Family [Member] | Government [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 263 | 276 | 292 |
Individually impaired loans with related allowance recorded: total interest income recognized | 11 | 17 | 10 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 0 | 0 | 0 |
Individually impaired loans with no related allowance recorded: average recorded investment | 57 | 57 | 61 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 4 | 4 | 3 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 0 | 0 | 0 |
Single Family [Member] | Alt-A [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 12,685 | 18,202 | 23,536 |
Individually impaired loans with related allowance recorded: total interest income recognized | 540 | 772 | 929 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 38 | 57 | 56 |
Individually impaired loans with no related allowance recorded: average recorded investment | 2,176 | 2,625 | 3,000 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 169 | 218 | 270 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 15 | 17 | 13 |
Single Family [Member] | Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 4,177 | 6,691 | 9,158 |
Individually impaired loans with related allowance recorded: total interest income recognized | 154 | 250 | 318 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 13 | 19 | 19 |
Individually impaired loans with no related allowance recorded: average recorded investment | 599 | 807 | 997 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 38 | 56 | 84 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 4 | 5 | 4 |
Multifamily [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans with related allowance recorded: average recorded investment | 287 | 235 | 273 |
Individually impaired loans with related allowance recorded: total interest income recognized | 7 | 3 | 9 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 0 | 0 | 0 |
Individually impaired loans with no related allowance recorded: average recorded investment | 375 | 336 | 297 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 31 | 14 | 19 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | $ 0 | $ 0 | $ 0 |
Mortgage Loans TDRs (Details)
Mortgage Loans TDRs (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019USD ($)contracts | Dec. 31, 2018USD ($)contracts | Dec. 31, 2017USD ($)contracts | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Average term extension of a single-family modified loan | 162 months | 109 months | 153 months | |
Average interest rate reduction of a single-family modified loan | 0.13% | 0.21% | 0.56% | |
Number of loans troubled debt restructurings activity | contracts | 51,870 | 95,826 | 66,414 | |
Recorded investment troubled debt restructurings activity | $ | $ 8,146 | $ 14,427 | $ 9,342 | |
Single-Family [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 51,859 | 95,812 | 66,406 | |
Recorded investment troubled debt restructurings activity | $ | $ 8,090 | $ 14,353 | $ 9,243 | |
Single-Family [Member] | Primary [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 48,858 | 89,192 | 59,708 | |
Recorded investment troubled debt restructurings activity | $ | $ 7,688 | $ 13,437 | $ 8,247 | |
Single-Family [Member] | Government [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 72 | 115 | 171 | |
Recorded investment troubled debt restructurings activity | $ | $ 8 | $ 11 | $ 18 | |
Single-Family [Member] | Alt-A [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 2,465 | 5,378 | 5,369 | |
Recorded investment troubled debt restructurings activity | $ | $ 313 | $ 697 | $ 771 | |
Single-Family [Member] | Other [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 464 | 1,127 | 1,158 | |
Recorded investment troubled debt restructurings activity | $ | $ 81 | $ 208 | $ 207 | |
Multifamily [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans troubled debt restructurings activity | contracts | 11 | 14 | 8 | |
Recorded investment troubled debt restructurings activity | $ | $ 56 | $ 74 | $ 99 |
Mortgage Loans TDRs with Sub De
Mortgage Loans TDRs with Sub Defaults (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)contracts | Dec. 31, 2018USD ($)contracts | Dec. 31, 2017USD ($)contracts | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 17,851 | 21,744 | 22,980 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,758 | $ 3,224 | $ 3,289 |
Single-Family [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 17,849 | 21,742 | 22,978 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,740 | $ 3,221 | $ 3,277 |
Single-Family [Member] | Primary [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 15,875 | 18,613 | 19,539 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,425 | $ 2,697 | $ 2,722 |
Single-Family [Member] | Government [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 74 | 55 | 91 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 10 | $ 7 | $ 10 |
Single-Family [Member] | Alt-A [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 1,453 | 2,412 | 2,588 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 218 | $ 386 | $ 400 |
Single-Family [Member] | Other [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 447 | 662 | 760 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 87 | $ 131 | $ 145 |
Multifamily [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 2 | 2 | 2 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 18 | $ 3 | $ 12 |
Allowance for Loan Losses Rollf
Allowance for Loan Losses Rollforward by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses [Roll Forward] | |||
Beginning balance | $ (14,203) | $ (19,084) | $ (23,465) |
Benefit (provision) for loan losses | 3,961 | 2,987 | 1,941 |
Charge-offs | 1,307 | 2,152 | 2,798 |
Recoveries | (75) | (240) | (329) |
Other | (6) | (18) | (29) |
Ending balance | (9,016) | (14,203) | (19,084) |
Single-Family [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Beginning balance | (13,969) | (18,849) | (23,283) |
Benefit (provision) for loan losses | 3,988 | 2,990 | 1,994 |
Charge-offs | 1,299 | 2,148 | 2,795 |
Recoveries | (71) | (240) | (326) |
Other | (6) | (18) | (29) |
Ending balance | (8,759) | (13,969) | (18,849) |
Multifamily [Member] | |||
Allowance for Loan Losses [Roll Forward] | |||
Beginning balance | (234) | (235) | (182) |
Benefit (provision) for loan losses | (27) | (3) | (53) |
Charge-offs | 8 | 4 | 3 |
Recoveries | (4) | 0 | (3) |
Ending balance | $ (257) | $ (234) | $ (235) |
Allowance for Loan Losses and T
Allowance for Loan Losses and Total Recorded Investment in HFI Loans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses for individually impaired loans | $ (8,220) | $ (13,295) | ||
Allowance for loan losses for collectively reserved loans | (796) | (908) | ||
Total allowance for loan losses | (9,016) | (14,203) | $ (19,084) | $ (23,465) |
Recorded investment in individually impaired loans | 97,876 | 118,103 | ||
Recorded investment in collectively reserved loans | 3,239,053 | 3,137,065 | ||
Total recorded investment in loans | 3,336,929 | 3,255,168 | ||
Single-Family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses for individually impaired loans | (8,175) | (13,255) | ||
Allowance for loan losses for collectively reserved loans | (584) | (714) | ||
Total allowance for loan losses | (8,759) | (13,969) | (18,849) | (23,283) |
Recorded investment in individually impaired loans | 97,196 | 117,561 | ||
Recorded investment in collectively reserved loans | 2,909,115 | 2,841,943 | ||
Total recorded investment in loans | 3,006,311 | 2,959,504 | ||
Multifamily [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses for individually impaired loans | (45) | (40) | ||
Allowance for loan losses for collectively reserved loans | (212) | (194) | ||
Total allowance for loan losses | (257) | (234) | $ (235) | $ (182) |
Recorded investment in individually impaired loans | 680 | 542 | ||
Recorded investment in collectively reserved loans | 329,938 | 295,122 | ||
Total recorded investment in loans | $ 330,618 | $ 295,664 |
Investments in Securities Tradi
Investments in Securities Trading 1 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | $ 48,123 | $ 41,867 | |
Mortgage-related securities [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 8,543 | 6,276 | |
Fannie Mae [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 3,424 | 1,467 | |
Variable Interest Entity, Conclusion to Consolidate, Change in Facts and Circumstances, Amount | $ 1,400 | ||
Other agency [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 4,490 | 3,503 | |
Alt-A and subprime private-label securities [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 629 | 1,306 | |
U.S. Treasury Securities [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 39,501 | 35,502 | |
Debt Security, Corporate, US [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | 79 | 89 | |
Non-mortgage-related securities [Member] | |||
Schedule of Investments in Trading Securities [Line Items] | |||
Trading, at fair value | $ 39,580 | $ 35,591 |
Investments in Securities Tra_2
Investments in Securities Trading 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net trading gains (losses) | $ 322 | $ 126 | $ 190 |
Net trading gains (losses) recognized in the period related to securities still held at period end | $ 238 | $ 55 | $ 161 |
Investments in Securities Avail
Investments in Securities Available-for-sale Securities 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains | $ 265 | $ 375 | $ 487 |
Proceeds from Sale of Available-for-sale Securities | $ 537 | $ 662 | $ 1,780 |
Investments in Securities Ava_2
Investments in Securities Available-for-sale Securities 2 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | $ 2,281 | $ 3,079 |
Gross unrealized gains | 137 | 380 |
Gross unrealized losses | (14) | (30) |
Total fair value | 2,404 | 3,429 |
Fannie Mae [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 1,445 | 1,754 |
Gross unrealized gains | 85 | 69 |
Gross unrealized losses | (10) | (26) |
Total fair value | 1,520 | 1,797 |
Other agency [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 183 | 239 |
Gross unrealized gains | 15 | 17 |
Gross unrealized losses | 0 | 0 |
Total fair value | 198 | 256 |
Alt-A and subprime private-label securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 34 | 325 |
Gross unrealized gains | 23 | 267 |
Gross unrealized losses | 0 | 0 |
Total fair value | 57 | 592 |
Mortgage revenue bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 309 | 425 |
Gross unrealized gains | 9 | 13 |
Gross unrealized losses | (3) | (4) |
Total fair value | 315 | 434 |
Other mortgage-related securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 310 | 336 |
Gross unrealized gains | 5 | 14 |
Gross unrealized losses | (1) | 0 |
Total fair value | $ 314 | $ 350 |
Investments in Securities Ava_3
Investments in Securities Available-for-sale Securities 3 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Consecutive Months, Gross Unrealized Losses | $ (1) | $ (1) |
Less Than 12 Consecutive Months, Fair Value | 130 | 24 |
12 Consecutive Months or Longer, Gross Unrealized Losses | (13) | (29) |
12 Consecutive Months or Longer, Fair Value | 340 | 506 |
Fannie Mae [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Consecutive Months, Gross Unrealized Losses | 0 | 0 |
Less Than 12 Consecutive Months, Fair Value | 0 | 0 |
12 Consecutive Months or Longer, Gross Unrealized Losses | (10) | (26) |
12 Consecutive Months or Longer, Fair Value | 337 | 487 |
Mortgage revenue bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Consecutive Months, Gross Unrealized Losses | 0 | (1) |
Less Than 12 Consecutive Months, Fair Value | 0 | 24 |
12 Consecutive Months or Longer, Gross Unrealized Losses | (3) | (3) |
12 Consecutive Months or Longer, Fair Value | 3 | $ 19 |
Other mortgage-related securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Consecutive Months, Gross Unrealized Losses | (1) | |
Less Than 12 Consecutive Months, Fair Value | 130 | |
12 Consecutive Months or Longer, Gross Unrealized Losses | 0 | |
12 Consecutive Months or Longer, Fair Value | $ 0 |
Investments in Securities Other
Investments in Securities Other-than-temporary Impairments 1 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 36 | $ 635 | $ 1,100 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Available-for-sale Securities, Other-than-temporary Impairment not Recorded | 97 | 52 | 87 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Available-for-sale Gain (Loss), Other-than-temporary Impairment Recorded | 0 | 224 | 423 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 34 | 46 | 43 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 131 | $ 322 | $ 553 |
Investments in Securities Matur
Investments in Securities Maturity Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | $ 2,281 | $ 3,079 |
Total fair value | 2,404 | 3,429 |
One Year or Less, Amortized Cost | 2 | |
One Year or Less, Fair Value | 2 | |
After One Year through Five Years, Amortized Cost | 64 | |
After One Year through Five Years, Fair Value | 66 | |
After Five Years through Ten Years, Amortized Cost | 175 | |
After Five Years through Ten Years, Fair Value | 190 | |
After Ten Years, Amortized Cost | 2,040 | |
After Ten Years, Fair Value | $ 2,146 | |
Weighted average yield | 6.48% | |
One Year or Less, weighted average yield | 5.51% | |
After One Year through Five Years, weighted average yield | 6.30% | |
After Five Years through Ten Years, weighted average yield | 6.19% | |
After Ten Years, weighted average yield | 6.51% | |
Fannie Mae [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | $ 1,445 | 1,754 |
Total fair value | 1,520 | 1,797 |
One Year or Less, Amortized Cost | 0 | |
One Year or Less, Fair Value | 0 | |
After One Year through Five Years, Amortized Cost | 15 | |
After One Year through Five Years, Fair Value | 16 | |
After Five Years through Ten Years, Amortized Cost | 95 | |
After Five Years through Ten Years, Fair Value | 104 | |
After Ten Years, Amortized Cost | 1,335 | |
After Ten Years, Fair Value | 1,400 | |
Other agency [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 183 | 239 |
Total fair value | 198 | 256 |
One Year or Less, Amortized Cost | 0 | |
One Year or Less, Fair Value | 0 | |
After One Year through Five Years, Amortized Cost | 18 | |
After One Year through Five Years, Fair Value | 18 | |
After Five Years through Ten Years, Amortized Cost | 24 | |
After Five Years through Ten Years, Fair Value | 27 | |
After Ten Years, Amortized Cost | 141 | |
After Ten Years, Fair Value | 153 | |
Alt-A and subprime private-label securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 34 | 325 |
Total fair value | 57 | 592 |
One Year or Less, Amortized Cost | 0 | |
One Year or Less, Fair Value | 0 | |
After One Year through Five Years, Amortized Cost | 0 | |
After One Year through Five Years, Fair Value | 0 | |
After Five Years through Ten Years, Amortized Cost | 3 | |
After Five Years through Ten Years, Fair Value | 3 | |
After Ten Years, Amortized Cost | 31 | |
After Ten Years, Fair Value | 54 | |
Mortgage revenue bonds [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 309 | 425 |
Total fair value | 315 | 434 |
One Year or Less, Amortized Cost | 2 | |
One Year or Less, Fair Value | 2 | |
After One Year through Five Years, Amortized Cost | 31 | |
After One Year through Five Years, Fair Value | 32 | |
After Five Years through Ten Years, Amortized Cost | 29 | |
After Five Years through Ten Years, Fair Value | 30 | |
After Ten Years, Amortized Cost | 247 | |
After Ten Years, Fair Value | 251 | |
Other mortgage-related securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 310 | 336 |
Total fair value | 314 | $ 350 |
One Year or Less, Amortized Cost | 0 | |
One Year or Less, Fair Value | 0 | |
After One Year through Five Years, Amortized Cost | 0 | |
After One Year through Five Years, Fair Value | 0 | |
After Five Years through Ten Years, Amortized Cost | 24 | |
After Five Years through Ten Years, Fair Value | 26 | |
After Ten Years, Amortized Cost | 286 | |
After Ten Years, Fair Value | $ 288 |
Financial Guarantees and Maximu
Financial Guarantees and Maximum Recovery (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Guarantees and Maximum Recovery [Line Items] | ||
Maximum exposure | $ 18,471 | $ 21,125 |
Guaranty obligation | 154 | 160 |
Maximum recovery | 8,098 | 9,522 |
Unconsolidated VIEs [Member] | Unconsolidated Fannie Mae MBS [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Maximum exposure | 5,801 | 7,278 |
Guaranty obligation | 26 | 30 |
Maximum recovery | 5,545 | 6,811 |
Unconsolidated VIEs [Member] | Other guaranty arrangements [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Maximum exposure | 12,670 | 13,847 |
Guaranty obligation | 128 | 130 |
Maximum recovery | $ 2,553 | $ 2,711 |
Minimum [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Contractual terms of our guarantees | 1 day | |
Maximum [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Contractual terms of our guarantees | 33 years | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Unconsolidated VIEs [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Freddie Mac collateral included in Fannie Mae commingled security | $ 50,100 |
Short-Term Debt (Details)
Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-Term Debt [Line Items] | ||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 478 | $ 0 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Member] | ||
Short-Term Debt [Line Items] | ||
Debt, Weighted Average Interest Rate | 1.67% | 0.00% |
Line of Credit [Member] | ||
Short-Term Debt [Line Items] | ||
Line of credit maximum borrowing capacity | $ 15,000 | $ 15,000 |
Fannie Mae [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term debt, outstanding | $ 26,662 | $ 24,896 |
Short-term debt, weighted-average interest rate | 1.56% | 2.29% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 3,440,724 | $ 3,367,024 |
Long-term debt, weighted-average interest rate | 2.78% | 3.02% |
Consolidated Trusts [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 3,285,139 | $ 3,159,846 |
Long-term debt, weighted-average interest rate | 2.78% | 3.03% |
Fannie Mae [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 155,585 | $ 207,178 |
Long-term debt, weighted-average interest rate | 2.86% | 2.83% |
Net unamortized discount, fair value adjustments and other cost basis adjustments | $ 2 | $ 413 |
Fannie Mae [Member] | Minimum [Member] | ||
Long-Term Debt [Line Items] | ||
Medium-term Notes Original Contractual Maturity 1 | 1 year | |
Long-term debt, original contractual maturity greater than 10 years | 10 years | |
Fannie Mae [Member] | Maximum [Member] | ||
Long-Term Debt [Line Items] | ||
Medium-term Notes Original Contractual Maturity 1 | 10 years | |
Fannie Mae [Member] | Senior Fixed [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 123,958 | $ 171,344 |
Long-term debt, weighted-average interest rate | 2.47% | 2.13% |
Fannie Mae [Member] | Senior fixed benchmark notes and bonds [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 86,114 | $ 103,206 |
Long-term debt, weighted-average interest rate | 2.66% | 2.36% |
Fannie Mae [Member] | Senior fixed medium-term notes [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 32,590 | $ 61,455 |
Long-term debt, weighted-average interest rate | 1.57% | 1.48% |
Fannie Mae [Member] | Senior fixed other debt [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 5,254 | $ 6,683 |
Long-term debt, weighted-average interest rate | 5.01% | 4.62% |
Fannie Mae [Member] | Senior floating [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 31,596 | $ 30,166 |
Long-term debt, weighted-average interest rate | 4.40% | 5.52% |
Fannie Mae [Member] | Senior floating medium-term notes [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 9,774 | $ 4,174 |
Long-term debt, weighted-average interest rate | 1.66% | 2.36% |
Fannie Mae [Member] | Senior floating Connecticut Avenue Securities [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 21,424 | $ 25,641 |
Long-term debt, weighted-average interest rate | 5.61% | 5.97% |
Fannie Mae [Member] | Senior floating other debt [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 398 | $ 351 |
Long-term debt, weighted-average interest rate | 6.27% | 10.19% |
Fannie Mae [Member] | Subordinated debentures [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 0 | $ 5,617 |
Long-term debt, weighted-average interest rate | 0.00% | 9.64% |
Fannie Mae [Member] | Secured borrowings [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 31 | $ 51 |
Long-term debt, weighted-average interest rate | 2.31% | 1.96% |
Short-Term and Long-Term Debt C
Short-Term and Long-Term Debt Characteristics of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | $ 3,440,724 | $ 3,367,024 |
Consolidated Trusts [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,285,139 | 3,159,846 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,440,724 | |
Earlier of Contractual Maturity or Next Call Date [Member] | Consolidated Trusts [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,285,139 | |
Fannie Mae [Member] | ||
Long-Term Debt [Line Items] | ||
Face amount | 182,200 | 232,500 |
Long-Term Debt by Year of Maturity [Abstract] | ||
2020 | 47,427 | |
2021 | 29,028 | |
2022 | 15,584 | |
2023 | 5,301 | |
2024 | 14,344 | |
Thereafter | 43,901 | |
Total long-term debt | 155,585 | 207,178 |
Net unamortized discount, fair value adjustments and other cost basis adjustments | 2 | 413 |
Fannie Mae [Member] | Zero-Coupon Debt [Member] | ||
Long-Term Debt [Line Items] | ||
Face amount | $ 23,100 | $ 23,200 |
Effective interest rate | 1.63% | 4.15% |
Fannie Mae [Member] | Callable [Member] | ||
Long-Term Debt [Line Items] | ||
Outstanding debt | $ 38,500 | $ 64,300 |
Fannie Mae [Member] | Earlier of Contractual Maturity or Next Call Date [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
2020 | 60,464 | |
2021 | 21,037 | |
2022 | 14,010 | |
2023 | 4,470 | |
2024 | 13,320 | |
Thereafter | 42,284 | |
Total long-term debt | $ 155,585 |
Derivative Instruments Derivati
Derivative Instruments Derivatives 1 - Notional and FV Position (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Asset Derivatives [Abstract] | ||
Notional amount | $ 243,475 | $ 266,935 |
Derivative asset, estimated fair value | 271 | 458 |
Netting adjustment | (1,288) | (2,266) |
Derivative Liabilities [Abstract] | ||
Notional amount | 196,666 | 161,488 |
Derivative liability, estimated fair value | (435) | (777) |
Netting adjustment | 1,694 | 2,315 |
Table Footnote [Abstract] | ||
Cash collateral posted for derivative instruments | 1,000 | 713 |
Cash collateral received for derivative instruments | 635 | 664 |
Pay-fixed swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 41,052 | 71,416 |
Derivative asset, estimated fair value | 0 | 438 |
Derivative Liabilities [Abstract] | ||
Notional amount | 29,178 | 21,253 |
Derivative liability, estimated fair value | (970) | (740) |
Receive-fixed Swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 73,579 | 88,799 |
Derivative asset, estimated fair value | 816 | 1,113 |
Derivative Liabilities [Abstract] | ||
Notional amount | 26,382 | 58,399 |
Derivative liability, estimated fair value | (62) | (860) |
Basis swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 273 | 250 |
Derivative asset, estimated fair value | 149 | 104 |
Derivative Liabilities [Abstract] | ||
Notional amount | 0 | 624 |
Derivative liability, estimated fair value | 0 | 0 |
Foreign currency swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 229 | 221 |
Derivative asset, estimated fair value | 39 | 22 |
Derivative Liabilities [Abstract] | ||
Notional amount | 232 | 223 |
Derivative liability, estimated fair value | (65) | (72) |
Pay-fixed swaption | ||
Asset Derivatives [Abstract] | ||
Notional amount | 4,600 | 10,375 |
Derivative asset, estimated fair value | 18 | 191 |
Derivative Liabilities [Abstract] | ||
Notional amount | 6,375 | 1,000 |
Derivative liability, estimated fair value | (219) | (4) |
Receive-fixed swaption | ||
Asset Derivatives [Abstract] | ||
Notional amount | 2,875 | 500 |
Derivative asset, estimated fair value | 106 | 20 |
Derivative Liabilities [Abstract] | ||
Notional amount | 4,600 | 7,375 |
Derivative liability, estimated fair value | (232) | (338) |
Futures | ||
Asset Derivatives [Abstract] | ||
Notional amount | 20,507 | 16,631 |
Derivative asset, estimated fair value | 0 | 0 |
Derivative Liabilities [Abstract] | ||
Notional amount | 0 | 0 |
Derivative liability, estimated fair value | 0 | 0 |
Risk management derivatives | ||
Asset Derivatives [Abstract] | ||
Notional amount | 143,115 | 188,192 |
Derivative asset, estimated fair value | 1,128 | 1,888 |
Accrued interest receivable | 226 | 400 |
Netting adjustment | (1,288) | (2,266) |
Total net risk management derivatives - Asset | 66 | 22 |
Derivative Liabilities [Abstract] | ||
Notional amount | 66,767 | 88,874 |
Derivative liability, estimated fair value | (1,548) | (2,014) |
Accrued interest payable | (250) | (419) |
Netting adjustment | 1,694 | 2,315 |
Total net risk management derivatives - Liability | (104) | (118) |
Mortgage commitments to purchase whole loans | ||
Asset Derivatives [Abstract] | ||
Notional amount | 7,115 | 4,370 |
Derivative asset, estimated fair value | 15 | 29 |
Derivative Liabilities [Abstract] | ||
Notional amount | 1,787 | 57 |
Derivative liability, estimated fair value | (1) | 0 |
Forward contracts to purchase mortgage-related securities | ||
Asset Derivatives [Abstract] | ||
Notional amount | 55,531 | 40,650 |
Derivative asset, estimated fair value | 137 | 349 |
Derivative Liabilities [Abstract] | ||
Notional amount | 9,560 | 1,045 |
Derivative liability, estimated fair value | (28) | (3) |
Forward contracts to sell mortgage-related securities | ||
Asset Derivatives [Abstract] | ||
Notional amount | 9,282 | 292 |
Derivative asset, estimated fair value | 13 | 1 |
Derivative Liabilities [Abstract] | ||
Notional amount | 109,066 | 70,593 |
Derivative liability, estimated fair value | (277) | (645) |
Mortgage commitment derivatives | ||
Asset Derivatives [Abstract] | ||
Notional amount | 71,928 | 45,312 |
Derivative asset, estimated fair value | 165 | 379 |
Netting adjustment | 0 | 0 |
Derivative Liabilities [Abstract] | ||
Notional amount | 120,413 | 71,695 |
Derivative liability, estimated fair value | (306) | (648) |
Netting adjustment | 0 | 0 |
Credit enhancement derivatives | ||
Asset Derivatives [Abstract] | ||
Notional amount | 28,432 | 33,431 |
Derivative asset, estimated fair value | 40 | 57 |
Derivative Liabilities [Abstract] | ||
Notional amount | 9,486 | 919 |
Derivative liability, estimated fair value | $ (25) | $ (11) |
Derivative Instruments Deriva_2
Derivative Instruments Derivatives 2 - FV Gains and Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | $ (1,185) | $ (2,110) | $ 422 | |||||||||
Net accrual of periodic settlements | $ 5,850 | $ 5,229 | $ 5,150 | $ 4,733 | $ 4,973 | $ 5,369 | $ 5,377 | $ 5,232 | 20,962 | 20,951 | $ 20,733 | |
Pay-fixed swap | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | 1,296 | (3,964) | 2,940 | |||||||||
Receive-fixed Swap | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | (851) | 3,685 | (1,834) | |||||||||
Basis swap | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | 21 | 46 | (21) | |||||||||
Foreign currency swap | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | 49 | 24 | (51) | |||||||||
Pay-fixed swaption | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | (161) | (380) | 100 | |||||||||
Receive-fixed swaption | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | (60) | 117 | (39) | |||||||||
Futures | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | 22 | 273 | 38 | |||||||||
Risk management derivatives | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | (573) | (1,032) | 72 | |||||||||
Net accrual of periodic settlements | (889) | (833) | (1,061) | |||||||||
Mortgage commitment derivatives | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | (603) | (1,043) | 324 | |||||||||
Credit enhancement derivatives | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative fair value gains (losses), net | $ (9) | $ (35) | $ 26 |
Income Taxes Provision (Benefit
Income Taxes Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 205 | |||||||||||
Income Tax Provision (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||||||||||
Current income tax benefit (provision) | (2,089) | $ 114 | $ 600 | |||||||||
Deferred income tax provision | (1,328) | (4,254) | (16,584) | |||||||||
Provision for federal income taxes | $ (865) | $ (1,036) | $ (889) | $ (627) | $ (828) | $ (1,045) | $ (1,136) | $ (1,131) | $ (3,417) | $ (4,140) | $ (15,984) | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||||||||||
Statutory corporate tax rate | 21.00% | 21.00% | 35.00% | 35.00% | ||||||||
Equity investments in affordable housing projects | (0.20%) | (0.60%) | (1.40%) | |||||||||
Effect of corporate tax rate change | 0.00% | 0.00% | 53.60% | |||||||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | (1.20%) | 0.00% | 0.00% | |||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.20%) | 0.20% | (0.60%) | |||||||||
Effective tax rate | 19.40% | 20.60% | 86.60% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Mortgage and mortgage-related assets | $ 9,290 | $ 9,285 |
Allowance for loan losses and basis in acquired property, net | 1,240 | 2,065 |
Debt and derivative instruments | 627 | 687 |
Partnership credits | 0 | 161 |
Partnership and other equity investments | 152 | 223 |
Deferred Tax Assets, Investments | 788 | 738 |
Other, net | 0 | 102 |
Total deferred tax assets | 12,097 | 13,261 |
Deferred tax liabilities: | ||
Unrealized gains on AFS securities, net | 26 | 73 |
Deferred Tax Liabilities, Other | 161 | 0 |
Total deferred tax liabilities | 187 | 73 |
Net deferred tax assets | $ 11,910 | $ 13,188 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | $ 0 | $ 0 | $ 514 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits as of January 1 | (416) | (514) | 0 |
Unrecognized tax benefits as of December 31 | 0 | (416) | (514) |
Unrecognized Tax Benefit Resulting in Tax Credits and/or Net Operating Loss Carryforward | 151 | 220 | |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 0 | (98) | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ (416) | $ 0 | $ 0 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Reporting Assets (Detai
Segment Reporting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,503,319 | $ 3,418,318 |
Operating Segments [Member] | Single-Family [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,149,212 | 3,099,588 |
Operating Segments [Member] | Multifamily [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 354,107 | $ 318,730 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $ 5,850 | $ 5,229 | $ 5,150 | $ 4,733 | $ 4,973 | $ 5,369 | $ 5,377 | $ 5,232 | $ 20,962 | $ 20,951 | $ 20,733 |
Fee and other income | 1,176 | 979 | 2,227 | ||||||||
Net revenues | 22,138 | 21,930 | 22,960 | ||||||||
Investment gains, net | 923 | 253 | 461 | 133 | 259 | 166 | 277 | 250 | 1,770 | 952 | 1,522 |
Fair value losses, net | 84 | (713) | (754) | (831) | (539) | 386 | 229 | 1,045 | (2,214) | 1,121 | (1,211) |
Administrative expenses | (786) | (749) | (744) | (744) | (814) | (740) | (755) | (750) | (3,023) | (3,059) | (2,737) |
Benefit for credit losses | 279 | 1,857 | 1,225 | 650 | 1,080 | 716 | 1,296 | 217 | 4,011 | 3,309 | 2,041 |
Foreclosed property income (expense) | (151) | (96) | (128) | (140) | (157) | (159) | (139) | (162) | (515) | (617) | (521) |
Credit-related income (expense) | 3,496 | 2,692 | 1,520 | ||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (626) | (613) | (600) | (593) | (586) | (576) | (565) | (557) | (2,432) | (2,284) | (2,096) |
Other expenses, net | (644) | (571) | (535) | (408) | (307) | (377) | (366) | (203) | (2,158) | (1,253) | (1,511) |
Income before federal income taxes | 5,230 | 4,999 | 4,321 | 3,027 | 4,058 | 5,056 | 5,593 | 5,392 | 17,577 | 20,099 | 18,447 |
Provision for federal income taxes | (865) | (1,036) | (889) | (627) | (828) | (1,045) | (1,136) | (1,131) | (3,417) | (4,140) | (15,984) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 4,365 | $ 3,963 | $ 3,432 | $ 2,400 | $ 3,230 | $ 4,011 | $ 4,457 | $ 4,261 | 14,160 | 15,959 | 2,463 |
US Treasury [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (2,432) | (2,284) | (2,096) | ||||||||
Operating Segments [Member] | Single-Family [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 18,013 | 18,162 | 18,212 | ||||||||
Fee and other income | 453 | 450 | 1,378 | ||||||||
Net revenues | 18,466 | 18,612 | 19,590 | ||||||||
Investment gains, net | 1,589 | 850 | 1,352 | ||||||||
Fair value losses, net | (2,216) | 1,210 | (1,188) | ||||||||
Administrative expenses | (2,565) | (2,631) | (2,391) | ||||||||
Benefit for credit losses | 4,038 | 3,313 | 2,090 | ||||||||
Foreclosed property income (expense) | (523) | (604) | (540) | ||||||||
Credit-related income (expense) | 3,515 | 2,709 | 1,550 | ||||||||
Other expenses, net | (1,661) | (1,012) | (1,004) | ||||||||
Income before federal income taxes | 14,696 | 17,454 | 15,813 | ||||||||
Provision for federal income taxes | (2,859) | (3,708) | (14,301) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 11,837 | 13,746 | 1,512 | ||||||||
Operating Segments [Member] | Multifamily [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 2,949 | 2,789 | 2,521 | ||||||||
Fee and other income | 723 | 529 | 849 | ||||||||
Net revenues | 3,672 | 3,318 | 3,370 | ||||||||
Investment gains, net | 181 | 102 | 170 | ||||||||
Fair value losses, net | 2 | (89) | (23) | ||||||||
Administrative expenses | (458) | (428) | (346) | ||||||||
Benefit for credit losses | (27) | (4) | (49) | ||||||||
Foreclosed property income (expense) | 8 | (13) | 19 | ||||||||
Credit-related income (expense) | (19) | (17) | (30) | ||||||||
Other expenses, net | (497) | (241) | (507) | ||||||||
Income before federal income taxes | 2,881 | 2,645 | 2,634 | ||||||||
Provision for federal income taxes | (558) | (432) | (1,683) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,323 | 2,213 | 951 | ||||||||
Operating Segments [Member] | US Treasury [Member] | Single-Family [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (2,432) | (2,284) | (2,096) | ||||||||
Operating Segments [Member] | US Treasury [Member] | Multifamily [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | $ 0 | $ 0 | $ 0 |
Equity Narratives (Details)
Equity Narratives (Details) | Sep. 08, 2008USD ($)$ / sharesshares | Sep. 08, 2008USD ($)$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Mar. 31, 2020USD ($) | Jan. 01, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2013USD ($) | Sep. 07, 2008$ / shares |
Class of Stock [Line Items] | ||||||||||||
Preferred Stock, Redemption Terms | P2Y | |||||||||||
Common Stock, Shares, Outstanding | shares | 1,200,000,000 | 1,158,087,567 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 13,969,000,000 | $ 15,611,000,000 | $ 2,257,000,000 | |||||||||
Reduction in Dividends Paid | 2,400,000,000 | |||||||||||
Preferred Stock, Covenant, Maximum Mortgage Assets | 153,600,000,000 | 250,000,000,000 | ||||||||||
Payment Of Cash Dividends On Senior Preferred Stock To Treasury | $ 5,601,000,000 | $ 9,372,000,000 | 12,015,000,000 | |||||||||
Convertible Series 2004-1 Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Conversion price per share | $ / shares | $ 94.31 | |||||||||||
Conversion rate | 1,060.3329 | |||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 105,000 | |||||||||||
Series 2008-2 Senior Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Senior Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 1,000 | $ 1,000 | $ 120,836 | |||||||||
Shares of variable liquidation preference senior preferred stock issued | shares | 1,000,000 | |||||||||||
Aggregate liquidation preference of senior preferred stock | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||
Value assigned to Treasury's commitment and recorded as a reduction to additional paid-in-capital | $ 4,500,000,000 | |||||||||||
Preferred Stock Covenant Maximum Fair Market Value of assets and properties per transaction | $ 250,000,000 | |||||||||||
Preferred Stock, Covenant, Current Period Debt v.s. Maximum Mortgage Assets Allowed at Prior Year End, Maximum Ratio | 120.00% | |||||||||||
Minimum [Member] | Series O Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 50 | |||||||||||
Maximum [Member] | Series O Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 52.50 | |||||||||||
US Treasury [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Percentage Of Common Shares Attributable to Warrants Issued to Treasury as Percentage to Total Diluted Common Shares | 79.90% | |||||||||||
Aggregate liquidation preference of senior preferred stock | $ 131,200,000,000 | |||||||||||
Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement | 119,800,000,000 | |||||||||||
Capital Reserve Amount Fiscal Year Senior Preferred Stock Purchase Agreement September 2019 Amendment | $ 22,000,000,000 | |||||||||||
Capital reserve amount for the fiscal year based on the amended Senior Preferred Stock Purchase agreement | $ 3,000,000,000 | $ 25,000,000,000 | $ 3,000,000,000 | $ 0 | $ 0 | |||||||
Annual Reduction of Capital Reserve Amount from 2013 to 2017, Senior Preferred Stock Purchase Agreement, Amendment | 600,000,000 | $ 600,000,000 | ||||||||||
Common stock warrant exercise price per share | $ / shares | $ 0.00001 | |||||||||||
Total remaining funding available from US Treasury pursuant to the senior preferred stock agreement | 113,900,000,000 | |||||||||||
Fannie Mae [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 182,200,000,000 | $ 232,500,000,000 | ||||||||||
Forecast [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred Stock, Covenant, Maximum Mortgage Assets | $ 225,000,000,000 | |||||||||||
Debt Instrument, Face Amount | $ 300,000,000,000 | |||||||||||
Forecast [Member] | US Treasury [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Aggregate liquidation preference of senior preferred stock | $ 135,400,000,000 |
Equity Schedule of Stock by Cla
Equity Schedule of Stock by Class (Details) | Sep. 08, 2008USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2013USD ($) | Jun. 04, 2008USD ($)shares | May 22, 2008USD ($)shares | May 19, 2008USD ($)shares | Dec. 14, 2007USD ($)shares | Nov. 21, 2007USD ($)shares |
Class of Stock [Line Items] | ||||||||||||||
Senior preferred stock value | $ 120,836,000,000 | $ 120,836,000,000 | ||||||||||||
Senior preferred stock, shares outstanding | shares | 131,178 | 123,836 | ||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 14,608,000,000 | $ 6,240,000,000 | $ (3,686,000,000) | $ 6,071,000,000 | ||||||||||
Preferred stock, shares issued | shares | 555,374,922 | 555,374,922 | ||||||||||||
Preferred Stock, Value, Issued | $ 19,130,000,000 | $ 19,130,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 555,374,922 | 555,374,922 | ||||||||||||
Common Stock, Shares, Outstanding | shares | 1,200,000,000 | 1,158,087,567 | ||||||||||||
Preferred stock outstanding, amount | $ 19,130,000,000 | $ 19,130,000,000 | ||||||||||||
Weighted Average Number of Shares, Contingently Issuable | shares | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | |||||||||||
Reduction in Dividends Paid | $ 2,400,000,000 | |||||||||||||
Preferred Stock, Redemption Terms | P2Y | |||||||||||||
Series 2008-2 Senior Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Senior preferred stock value | $ 120,836,000,000 | $ 120,836,000,000 | ||||||||||||
Senior preferred stock issued, shares | shares | 1,000,000 | |||||||||||||
Senior preferred stock, shares outstanding | shares | 1,000,000 | |||||||||||||
Senior preferred stock, stated value per share | $ / shares | $ 1,000 | $ 120,836 | ||||||||||||
Aggregate liquidation preference of senior preferred stock | $ 1,000,000,000 | |||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,000,000 | |||||||||||||
Series D Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 3,000,000 | 3,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 3,000,000 | 3,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.25% | |||||||||||||
Series E Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 3,000,000 | 3,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 3,000,000 | 3,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.10% | |||||||||||||
Series F Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 14,000,000 | 14,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 690,000,000 | $ 690,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 14,000,000 | 14,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 690,000,000 | $ 690,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 2.146% | |||||||||||||
Series G Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 6,000,000 | 6,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 288,000,000 | $ 288,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 6,000,000 | 6,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 287,500,000 | $ 287,500,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 2.624% | |||||||||||||
Preferred Stock, Redemption Terms | P2Y | |||||||||||||
Series H Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 8,000,000 | 8,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 400,000,000 | $ 400,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 8,000,000 | 8,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 400,000,000 | $ 400,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.81% | |||||||||||||
Series I Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 6,000,000 | 6,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 300,000,000 | $ 300,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 6,000,000 | 6,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 300,000,000 | $ 300,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.375% | |||||||||||||
Series L Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 7,000,000 | 7,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 345,000,000 | $ 345,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 7,000,000 | 7,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 345,000,000 | $ 345,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.125% | |||||||||||||
Series M Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 9,000,000 | 9,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 460,000,000 | $ 460,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 9,000,000 | 9,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 460,000,000 | $ 460,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 4.75% | |||||||||||||
Series N Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 5,000,000 | 5,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 225,000,000 | $ 225,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 5,000,000 | 5,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 225,000,000 | $ 225,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.50% | |||||||||||||
Series O Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 50,000,000 | 50,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 2,500,000,000 | $ 2,500,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 50,000,000 | 50,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 2,500,000,000 | $ 2,500,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 50 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.00% | |||||||||||||
Convertible Series 2004-1 Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 24,922 | 24,922 | ||||||||||||
Preferred Stock, Value, Issued | $ 2,492,000,000 | $ 2,492,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 24,922 | 24,922 | ||||||||||||
Preferred stock outstanding, amount | $ 2,492,200,000 | $ 2,492,200,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 100,000 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 5.375% | |||||||||||||
Convertible Stock, Conversion Price | $ / shares | $ 94.31 | |||||||||||||
Conversion Stock, Conversion Rate | 1,060.3329 | |||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 105,000 | |||||||||||||
Series P Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 40,000,000 | 40,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 40,000,000 | 40,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 4.50% | |||||||||||||
Series Q Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 15,000,000 | 15,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 375,000,000 | $ 375,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 15,000,000 | 15,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 375,000,000 | $ 375,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 6.75% | |||||||||||||
Series R Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 21,000,000 | 21,000,000 | 1,200,000 | 20,000,000 | ||||||||||
Preferred Stock, Value, Issued | $ 530,000,000 | $ 530,000,000 | $ 30,000,000 | $ 500,000,000 | ||||||||||
Preferred stock, shares outstanding | shares | 21,000,000 | 21,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 530,000,000 | $ 530,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.625% | |||||||||||||
Series S Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 280,000,000 | 280,000,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 7,000,000,000 | $ 7,000,000,000 | ||||||||||||
Preferred stock, shares outstanding | shares | 280,000,000 | 280,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 7,000,000,000 | $ 7,000,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.75% | |||||||||||||
Preferred Stock, Redemption Terms | P5Y | |||||||||||||
Series T Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 89,000,000 | 89,000,000 | 1,000,000 | 8,000,000 | 80,000,000 | |||||||||
Preferred Stock, Value, Issued | $ 2,225,000,000 | $ 2,225,000,000 | $ 25,000,000 | $ 200,000,000 | $ 2,000,000,000 | |||||||||
Preferred stock, shares outstanding | shares | 89,000,000 | 89,000,000 | ||||||||||||
Preferred stock outstanding, amount | $ 2,225,000,000 | $ 2,225,000,000 | ||||||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||||
Preferred stock, annual dividend rate (as a percent) | 8.25% | |||||||||||||
Maximum [Member] | Series F Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, annual dividend rate (as a percent) | 11.00% | |||||||||||||
Maximum [Member] | Series G Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, annual dividend rate (as a percent) | 11.00% | |||||||||||||
Maximum [Member] | Series O Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 52.50 | |||||||||||||
Minimum [Member] | Series O Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.00% | |||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 50 | |||||||||||||
Minimum [Member] | Series P Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, annual dividend rate (as a percent) | 4.50% | |||||||||||||
Minimum [Member] | Series S Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.75% | |||||||||||||
Two-year Constant Maturity U.S. Treasury Rate [Member] | Series F Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock dividend rate, basis spread on variable rate | 0.16% | |||||||||||||
Two-year Constant Maturity U.S. Treasury Rate [Member] | Series G Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock dividend rate, basis spread on variable rate | 0.18% | |||||||||||||
Ten-year Constant Maturity U.S. Treasury Rate [Member] | Series O Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock dividend rate, basis spread on variable rate | 2.375% | |||||||||||||
Three-Month LIBOR [Member] | Series P Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock dividend rate, basis spread on variable rate | 0.75% | |||||||||||||
Three-Month LIBOR [Member] | Series S Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock dividend rate, basis spread on variable rate | 4.23% | |||||||||||||
US Treasury [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Capital reserve amount for the fiscal year based on the amended Senior Preferred Stock Purchase agreement | 3,000,000,000 | $ 25,000,000,000 | $ 3,000,000,000 | $ 0 | $ 0 | |||||||||
Aggregate liquidation preference of senior preferred stock | $ 131,200,000,000 | |||||||||||||
Annual Reduction of Capital Reserve Amount from 2013 to 2017, Senior Preferred Stock Purchase Agreement, Amendment | $ 600,000,000 | $ 600,000,000 | ||||||||||||
Senior Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Shares, Outstanding | shares | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 120,836,000,000 | $ 120,836,000,000 | $ 117,149,000,000 | $ 117,149,000,000 | ||||||||||
Senior Preferred Stock | Series 2008-2 Senior Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Senior preferred stock, shares outstanding | shares | 1,000,000 |
Equity Accumulated Other Compre
Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | |||
Net unrealized gains on AFS securities for which we have not recorded OTTI | $ 97 | $ 52 | $ 87 |
Net unrealized gains on AFS securities for which we have recorded OTTI | 0 | 224 | 423 |
Other | 34 | 46 | 43 |
Accumulated other comprehensive income | $ 131 | $ 322 | $ 553 |
Equity Changes in AOCI (Details
Equity Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Statutory corporate tax rate | 21.00% | 21.00% | 35.00% | 35.00% |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ 6,240 | |||
Total other comprehensive loss | (191) | $ (348) | $ (206) | |
Ending balance | $ 14,608 | $ 6,240 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||||||||
Component of statutory minimum capital requirement, percentage of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties | 0.45% | |||||||
Component of critical capital requirement, percentage of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties | 0.45% | |||||||
Net worth (deficit) | $ 14,608,000,000 | $ 6,240,000,000 | $ (3,686,000,000) | $ 6,071,000,000 | ||||
Core capital | (106,360,000,000) | (114,919,000,000) | ||||||
Statutory minimum capital requirement | 22,392,000,000 | 22,216,000,000 | ||||||
Deficit of core capital over statutory minimum capital requirement | $ (128,752,000,000) | (137,135,000,000) | ||||||
Component of statutory minimum capital requirement, percentage of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties | 2.50% | |||||||
Component of statutory minimum capital requirement, maximum percentage of other off-balance sheet obligations | 0.45% | |||||||
Component of critical capital requirement, percentage of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties | 1.25% | |||||||
Component of critical capital requirement, percentage of other off-balance sheet obligations | 0.25% | |||||||
Related Parties [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 14,608,000,000 | 6,240,000,000 | ||||||
US Treasury [Member] | ||||||||
Related Parties [Line Items] | ||||||||
Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement | $ 119,800,000,000 | |||||||
Capital Reserve Amount, Fiscal Year, Senior Preferred Stock Purchase Agreement, Amendment | $ 25,000,000,000 | $ 3,000,000,000 | $ 0 | $ 3,000,000,000 | $ 0 |
Concentrations of Credit Risk G
Concentrations of Credit Risk Geographic Concentration (Details) - Guaranty Book of Business [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
Single-Family [Member] | Conventional Mortgage [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 100.00% | 100.00% |
Single-Family [Member] | Conventional Mortgage [Member] | Midwest [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 15.00% | 15.00% |
Single-Family [Member] | Conventional Mortgage [Member] | Northeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 17.00% | 17.00% |
Single-Family [Member] | Conventional Mortgage [Member] | Southeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 22.00% | 22.00% |
Single-Family [Member] | Conventional Mortgage [Member] | Southwest [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 18.00% | 18.00% |
Single-Family [Member] | Conventional Mortgage [Member] | West [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 28.00% | 28.00% |
Multifamily [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 100.00% | 100.00% |
Multifamily [Member] | Midwest [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 10.00% | 10.00% |
Multifamily [Member] | Northeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 15.00% | 14.00% |
Multifamily [Member] | Southeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 27.00% | 26.00% |
Multifamily [Member] | Southwest [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 23.00% | 24.00% |
Multifamily [Member] | West [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 25.00% | 26.00% |
Concentrations of Credit Risk S
Concentrations of Credit Risk SF Risk Characteristics (Details) - Single-Family [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 days delinquent (percentage of book of business) | 1.07% | 1.17% |
60 days delinquent (percentage of book of business) | 0.29% | 0.32% |
Seriously delinquent (percentage of book of business) | 0.59% | 0.69% |
30 days delinquent (percentage of conventional loans) | 1.27% | 1.37% |
60 days delinquent (percentage of conventional loans) | 0.35% | 0.38% |
Seriously delinquent (percentage of conventional loans) | 0.66% | 0.76% |
Percentage of book of business | 100.00% | 100.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | California | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 0.32% | 0.34% |
Percentage of book of business | 19.00% | 19.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | Florida | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 0.84% | 1.16% |
Percentage of book of business | 6.00% | 6.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | ILLINOIS | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 0.91% | 0.98% |
Percentage of book of business | 4.00% | 4.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | New Jersey | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 1.13% | 1.38% |
Percentage of book of business | 3.00% | 4.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 1.18% | 1.40% |
Percentage of book of business | 5.00% | 5.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | All other states | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 0.64% | 0.73% |
Percentage of book of business | 63.00% | 62.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | Estimated mark-to-market LTV ratio greater than 100% [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 10.14% | 9.85% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | Alt-A [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 2.95% | 3.35% |
Percentage of book of business | 2.00% | 2.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | 2004 and Prior | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 2.48% | 2.69% |
Percentage of book of business | 2.00% | 3.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | 2005 - 2008 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 4.11% | 4.61% |
Percentage of book of business | 4.00% | 5.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | 2009 - 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 0.35% | 0.34% |
Percentage of book of business | 94.00% | 92.00% |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serious delinquency: days past due | 90 days | 90 days |
Concentrations of Credit Risk M
Concentrations of Credit Risk MF Risk Characteristics (Details) - Multifamily [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serious delinquency: days past due | 60 days | 60 days |
Current debt service coverage ratio reporting lag | 3 months | |
Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serious delinquency: days past due | 89 days | 89 days |
Current debt service coverage ratio reporting lag | 6 months | |
Current Debt Service Coverage Ratio, Higher Risk Loans1 | 1 | |
Guaranty Book of Business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 days delinquent (percentage of book of business) | 0.02% | 0.02% |
Seriously delinquent (percentage of book of business) | 0.04% | 0.06% |
Percentage of book of business | 100.00% | 100.00% |
Guaranty Book of Business [Member] | Original LTV ratio greater than 80% [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of book of business | 1.00% | 1.00% |
Loans seriously delinquent, percentage by unpaid principal balance | 0.00% | 0.00% |
Guaranty Book of Business [Member] | Original LTV ratio less than or equal to 80% [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of book of business | 99.00% | 99.00% |
Loans seriously delinquent, percentage by unpaid principal balance | 0.04% | 0.06% |
Guaranty Book of Business [Member] | Current DSCR less than 100% [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of book of business | 2.00% | 2.00% |
Loans seriously delinquent, percentage by unpaid principal balance | 0.48% | 1.38% |
Concentrations of Credit Risk O
Concentrations of Credit Risk Other Concentrations (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)counterparties | Dec. 31, 2018USD ($)counterparties | |
Concentration Risk [Line Items] | ||
Estimated benefit included in combined loss reserves | $ 410 | $ 691 |
Receivable from claims on insured, defaulted loans excluding government insured loans | 654 | 745 |
Allowance for mortgage insurance receivable | $ 541 | 564 |
PMI [Member] | ||
Concentration Risk [Line Items] | ||
Mortgage insurance coverage risk in force percentage to be paid in cash | 74.50% | |
Mortgage insurance coverage risk in force percentage to be deferred | 25.50% | |
Triad [Member] | ||
Concentration Risk [Line Items] | ||
Mortgage insurance coverage risk in force percentage to be paid in cash | 75.00% | |
Mortgage insurance coverage risk in force percentage to be deferred | 25.00% | |
Single-Family [Member] | ||
Concentration Risk [Line Items] | ||
Number of Insurance Companies Who Provided Majority of Mortgage Insurance | 3 | |
Single-Family [Member] | Guaranty Book of Business [Member] | ||
Concentration Risk [Line Items] | ||
Primary mortgage insurance coverage risk in force | $ 162,855 | 152,379 |
Mortgage insurance coverage risk in force | $ 163,194 | $ 152,788 |
Mortgage insurance coverage risk in force as a percentage of book of business | 6.00% | 5.00% |
Pool mortgage insurance coverage risk in force | $ 339 | $ 409 |
Single-Family [Member] | Guaranty Book of Business [Member] | Conventional Mortgage [Member] | Minimum [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Loans with Detailed Loan Level Information | 99.00% | |
Single-Family [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Group of Largest Mortgage Servicers including Affiliates [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 59.00% | 56.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Mortgage insurance coverage risk in force for insurers with credit quality deterioration | $ 3,300 | |
Percentage of concentration risk | 2.00% | |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Arch Capital Group Ltd. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 23.00% | 25.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Radian Guaranty, Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 20.00% | 21.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Mortgage Guaranty Insurance Corp. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 18.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Genworth Mortgage Insurance Corp. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 15.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Essent Guaranty, Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 12.00% |
Single-Family [Member] | Guaranty Book of Business [Member] | Insurance Service Provider Concentration Risk [Member] | Other counterparties [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 9.00% |
Single-Family [Member] | Depository Servicer [Member] | ||
Concentration Risk [Line Items] | ||
Number of Largest Mortgage Servicers Servicing Majority of Guaranty Book of Business | 5 | 5 |
Single-Family [Member] | Depository Servicer [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Wells Fargo Bank N.A. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 18.00% |
Single-Family [Member] | Depository Servicer [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Other Top Servicers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 16.00% |
Single-Family [Member] | Non-Depository Servicer [Member] | ||
Concentration Risk [Line Items] | ||
Number of Largest Mortgage Servicers Servicing Majority of Guaranty Book of Business | 5 | 5 |
Single-Family [Member] | Non-Depository Servicer [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Group of Largest Mortgage Servicers including Affiliates [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 27.00% | 22.00% |
Multifamily [Member] | ||
Concentration Risk [Line Items] | ||
Maximum potential loss recovery from lenders under risk sharing agreements | $ 81,400 | $ 71,800 |
Number of Largest Mortgage Servicers Servicing Majority of Guaranty Book of Business | 5 | 5 |
Multifamily [Member] | Lender Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Number of Lenders, Maximum Potential Loss Recovery | counterparties | 4 | 4 |
Multifamily [Member] | Lender Concentration Risk [Member] | Four Major Lenders [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 44.00% | 44.00% |
Multifamily [Member] | Guaranty Book of Business [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Loans with Detailed Loan Level Information | 99.00% | |
Multifamily [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Wells Fargo Bank N.A. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 14.00% |
Multifamily [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Group of Largest Mortgage Servicers including Affiliates [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 48.00% | 48.00% |
Multifamily [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Other Top Servicers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 23.00% | 22.00% |
Multifamily [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Walker & Dunlop, LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 12.00% |
Netting Arrangements (Details)
Netting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral, Amount Eligible to be Repledged by Counterparty | $ 2,300 | $ 1,900 |
Assets: | ||
Derivative assets, gross amount | 1,519 | 2,667 |
Derivative asset, gross amount offset | (1,288) | (2,266) |
Derivative assets, net amount presented in our consolidated balance sheets | 231 | 401 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | (101) | (153) |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | (1) | (7) |
Derivative assets, net amount | 129 | 241 |
Securities purchased under agreements to resell, or similar arrangements, gross amount | 24,928 | 48,288 |
Securities purchased under agreements to resell or similar arrangements, gross amount offset | 0 | 0 |
Securities purchased under agreements to resell or similar arrangements, net amount presented in our consolidated balance sheets | 24,928 | 48,288 |
Securities purchased under agreements to resell, under master netting arrangement, amounts not offset in our consolidated balance sheets, financial instruments | 0 | 0 |
Securities purchased under agreements to resell or similar arrangements, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | (24,928) | (48,288) |
Securities purchased under agreements to resell or similar arrangements, net amount | 0 | 0 |
Total assets, gross amount | 26,447 | 50,955 |
Total assets, gross amount offset | (1,288) | (2,266) |
Total assets, net amount presented in the consolidated balance sheets | 25,159 | 48,689 |
Total assets, under the master netting arrangements, not offset in our consolidated balance sheets, financial instruments | (101) | (153) |
Total assets, under master netting arrangements, not offset in our consolidated balance sheets, collateral | (24,929) | (48,295) |
Total assets, net amount | 129 | 241 |
Liabilities: | ||
Derivative liabilities, gross amount | (2,104) | (3,081) |
Derivative liabilities, gross amount offset | 1,694 | 2,315 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (410) | (766) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 101 | 153 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 182 | 489 |
Derivative liabilities, net amount | (127) | (124) |
Securities Sold under Agreements to Repurchase, Gross | (478) | |
Securities Sold under Agreements to Repurchase, Not Subject to Master Netting Arrangement | (478) | |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 475 | |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | (3) | |
Total liabilities, gross amount | (2,582) | (3,081) |
Total liabilities, gross amount offset | 1,694 | 2,315 |
Total liabilities, net amount presented in our consolidated balance sheets | (888) | (766) |
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial statements | 101 | 153 |
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 657 | 489 |
Total liabilities, net amount | (130) | (124) |
Securities Received as Collateral | 24,700 | 48,400 |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 23,800 | 45,700 |
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 0 | 0 |
Derivative Asset, Not Subject to Master Netting Arrangement | 40 | 57 |
Derivative Liability, Not Subject to Master Netting Arrangement | 25 | 11 |
Risk management derivatives | ||
Assets: | ||
Derivative asset, gross amount offset | (1,288) | (2,266) |
Liabilities: | ||
Derivative liabilities, gross amount offset | 1,694 | 2,315 |
Mortgage commitment derivatives | ||
Assets: | ||
Derivative assets, gross amount | 165 | 379 |
Derivative asset, gross amount offset | 0 | 0 |
Derivative assets, net amount presented in our consolidated balance sheets | 165 | 379 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | (101) | (153) |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | (1) | (7) |
Derivative assets, net amount | 63 | 219 |
Liabilities: | ||
Derivative liabilities, gross amount | (306) | (648) |
Derivative liabilities, gross amount offset | 0 | 0 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (306) | (648) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 101 | 153 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 181 | 466 |
Derivative liabilities, net amount | (24) | (29) |
Over the Counter [Member] | Risk management derivatives | ||
Assets: | ||
Derivative assets, gross amount | 1,354 | 2,288 |
Derivative asset, gross amount offset | (1,334) | (2,273) |
Derivative assets, net amount presented in our consolidated balance sheets | 20 | 15 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 0 | 0 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 0 | 0 |
Derivative assets, net amount | 20 | 15 |
Liabilities: | ||
Derivative liabilities, gross amount | (1,798) | (2,433) |
Derivative liabilities, gross amount offset | 1,695 | 2,342 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (103) | (91) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 0 | 0 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 0 | 0 |
Derivative liabilities, net amount | (103) | (91) |
Exchange Cleared [Member] | Risk management derivatives | ||
Assets: | ||
Derivative assets, gross amount | 0 | 0 |
Derivative asset, gross amount offset | 46 | 7 |
Derivative assets, net amount presented in our consolidated balance sheets | 46 | 7 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 0 | 0 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 0 | 0 |
Derivative assets, net amount | 46 | 7 |
Liabilities: | ||
Derivative liabilities, gross amount | 0 | 0 |
Derivative liabilities, gross amount offset | (1) | (27) |
Derivative liabilities, net amount presented in our consolidated balance sheets | (1) | (27) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 0 | 0 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 1 | 23 |
Derivative liabilities, net amount | 0 | (4) |
Cash and Cash Equivalents [Member] | ||
Liabilities: | ||
Securities Purchased under Agreements to Resell | $ 11,400 | $ 15,400 |
Netting Arrangements Narratives
Netting Arrangements Narratives (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Fair value of non-cash collateral we pledged | $ 2,300 | $ 1,900 |
Fair value of non-cash collateral received | 24,700 | 48,400 |
Fair value of non-cash collateral received that could be sold or repledged | 23,800 | 45,700 |
Fair value of underlying collateral that was sold or repledged | 0 | 0 |
Derivative assets not subject to an enforceable master netting arrangement | 40 | 57 |
Derivative liabilities not subject to an enforceable master netting arrangement | 25 | 11 |
Cash and Cash Equivalents [Member] | ||
Derivative [Line Items] | ||
Securities purchased under agreements to resell | $ 11,400 | $ 15,400 |
Fair Value Levels Hierarchy (De
Fair Value Levels Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Mortgage loans held for investment, at fair value | $ 7,825 | $ 8,922 |
Other assets [Abstract] | ||
Derivative asset, gross amount offset | (1,288) | (2,266) |
Other liabilities [Abstract] | ||
Derivative liabilities, gross amount offset | (1,694) | (2,315) |
Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative asset, gross amount offset | 0 | 0 |
Other liabilities [Abstract] | ||
Derivative liabilities, gross amount offset | 0 | 0 |
Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 5,687 | 6,826 |
Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 21,880 | 23,753 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Trading securities | 39,501 | 35,502 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Total assets at fair value | 89,558 | 69,575 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Trading securities | 8,576 | 6,332 |
Available-for-sale securities | 1,612 | 2,477 |
Mortgage loans held for investment, at fair value | 3,270,535 | 2,990,104 |
Other assets [Abstract] | ||
Derivative assets at fair value | 1,360 | 2,515 |
Total assets at fair value | 3,313,691 | 3,053,308 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 2,092 | 3,077 |
Total liabilities at fair value | 3,506,144 | 3,303,620 |
Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 164,144 | 211,403 |
Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 3,312,763 | 3,064,239 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Trading securities | 46 | 33 |
Available-for-sale securities | 792 | 952 |
Mortgage loans held for investment, at fair value | 127,650 | 216,404 |
Other assets [Abstract] | ||
Derivative assets at fair value | 199 | 209 |
Total assets at fair value | 136,048 | 225,812 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 37 | 15 |
Total liabilities at fair value | 32,362 | 39,950 |
Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 401 | 771 |
Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 31,827 | 39,043 |
Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 748 | |
Assets [Abstract] | ||
Trading securities | 48,123 | 41,867 |
Available-for-sale securities | 2,404 | 3,429 |
Mortgage loans held for investment, at fair value | 7,825 | 8,922 |
Other assets [Abstract] | ||
Derivative asset, gross amount offset | (1,288) | (2,266) |
Derivative assets at fair value | 271 | 458 |
Total assets at fair value | 58,623 | 55,424 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 27,567 | 30,579 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 435 | 777 |
Derivative liabilities, gross amount offset | (1,694) | (2,315) |
Total liabilities at fair value | 28,002 | 31,356 |
Recurring Fair Value Measurements [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 1,230 | 2,077 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1,347 | 2,091 |
Recurring Fair Value Measurements [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 124 | 211 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 451 | 342 |
Recurring Fair Value Measurements [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 40 | 57 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 25 | 11 |
Recurring Fair Value Measurements [Member] | Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 165 | 379 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 306 | 648 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 5,687 | 6,826 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 5,687 | 6,826 |
Recurring Fair Value Measurements [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 21,880 | 23,753 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 3,424 | 1,467 |
Available-for-sale securities | 1,520 | 1,797 |
Recurring Fair Value Measurements [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 4,490 | 3,503 |
Available-for-sale securities | 198 | 256 |
Recurring Fair Value Measurements [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 629 | 1,306 |
Available-for-sale securities | 57 | 592 |
Recurring Fair Value Measurements [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 315 | 434 |
Recurring Fair Value Measurements [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 314 | 350 |
Recurring Fair Value Measurements [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 39,501 | 35,502 |
Recurring Fair Value Measurements [Member] | Debt Security, Corporate, US [Member] | ||
Assets [Abstract] | ||
Trading securities | 79 | 89 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 748 | |
Assets [Abstract] | ||
Trading securities | 39,501 | 35,502 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Total assets at fair value | 39,501 | 36,250 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 39,501 | 35,502 |
Recurring Fair Value Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Debt Security, Corporate, US [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Assets [Abstract] | ||
Trading securities | 8,576 | 6,332 |
Available-for-sale securities | 1,612 | 2,477 |
Mortgage loans held for investment, at fair value | 7,137 | 7,985 |
Other assets [Abstract] | ||
Derivative assets at fair value | 1,360 | 2,515 |
Total assets at fair value | 18,685 | 19,309 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 27,094 | 30,027 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 2,092 | 3,077 |
Total liabilities at fair value | 29,186 | 33,104 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 1,071 | 1,962 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1,346 | 2,089 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 124 | 211 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 440 | 342 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 165 | 342 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 306 | 646 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 5,289 | 6,475 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 5,289 | 6,475 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 21,805 | 23,552 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 3,379 | 1,435 |
Available-for-sale securities | 1,349 | 1,645 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 4,489 | 3,503 |
Available-for-sale securities | 198 | 256 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 629 | 1,305 |
Available-for-sale securities | 57 | 568 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 8 | 8 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Security, Corporate, US [Member] | ||
Assets [Abstract] | ||
Trading securities | 79 | 89 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Assets [Abstract] | ||
Trading securities | 46 | 33 |
Available-for-sale securities | 792 | 952 |
Mortgage loans held for investment, at fair value | 688 | 937 |
Other assets [Abstract] | ||
Derivative assets at fair value | 199 | 209 |
Total assets at fair value | 1,725 | 2,131 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 473 | 552 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 37 | 15 |
Total liabilities at fair value | 510 | 567 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 159 | 115 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1 | 2 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 0 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 11 | 0 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 40 | 57 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 25 | 11 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 0 | 37 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 2 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 398 | 351 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 398 | 351 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 75 | 201 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 45 | 32 |
Available-for-sale securities | 171 | 152 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 1 | 0 |
Available-for-sale securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 1 |
Available-for-sale securities | 0 | 24 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 315 | 434 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 306 | 342 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 0 | 0 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Debt Security, Corporate, US [Member] | ||
Assets [Abstract] | ||
Trading securities | $ 0 | $ 0 |
Fair Value Level 3 Rollforward
Fair Value Level 3 Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trading Assets, Excluding Debt and Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | $ 1 | $ 4 | $ 11 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 33 | 1,201 | 1,127 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 3 | 77 | 59 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 77 | 1 | 99 |
Sales | (22) | (1,059) | (81) |
Issues | 0 | 0 | 0 |
Settlements | (17) | (7) | (39) |
Transfers out of Level 3 | (108) | (181) | (991) |
Transfers into Level 3 | 80 | 1 | 1,027 |
Ending Balance | 46 | 33 | 1,201 |
Trading Assets, Excluding Debt and Equity Securities [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 1 | 4 | 6 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 32 | 971 | 835 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 3 | 163 | 41 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 77 | 1 | 64 |
Sales | (22) | (1,059) | 0 |
Issues | 0 | 0 | 0 |
Settlements | (16) | (1) | (5) |
Transfers out of Level 3 | (108) | (44) | (991) |
Transfers into Level 3 | 79 | 1 | 1,027 |
Ending Balance | 45 | 32 | 971 |
Trading Assets, Excluding Debt and Equity Securities [Member] | Other agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | 35 | 0 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | (1) | 0 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 35 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | 0 | (1) | 0 |
Transfers out of Level 3 | 0 | (33) | 0 |
Transfers into Level 3 | 1 | 0 | 0 |
Ending Balance | 1 | 0 | 35 |
Trading Assets, Excluding Debt and Equity Securities [Member] | Alt-A and subprime private-label securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 5 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 1 | 195 | 292 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | (85) | 18 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | (81) |
Issues | 0 | 0 | 0 |
Settlements | (1) | (5) | (34) |
Transfers out of Level 3 | 0 | (104) | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending Balance | 0 | 1 | 195 |
Available-for-sale securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 952 | 1,313 | 2,153 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 19 | 30 | 99 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | (11) | (53) | (76) |
Purchases | 0 | 0 | 0 |
Sales | (28) | (22) | (503) |
Issues | 0 | 0 | 0 |
Settlements | (158) | (263) | (342) |
Transfers out of Level 3 | (106) | (53) | (76) |
Transfers into Level 3 | 124 | 0 | 58 |
Ending Balance | 792 | 952 | 1,313 |
Available-for-sale securities [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 152 | 208 | 230 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | 2 | 2 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 7 | 1 | (1) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (8) | (10) | (9) |
Transfers out of Level 3 | (103) | (49) | (72) |
Transfers into Level 3 | 123 | 0 | 58 |
Ending Balance | 171 | 152 | 208 |
Available-for-sale securities [Member] | Other agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | 5 | |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | ||
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | ||
Purchases | 0 | ||
Sales | (1) | ||
Issues | 0 | ||
Settlements | 0 | ||
Transfers out of Level 3 | (4) | ||
Transfers into Level 3 | 0 | ||
Ending Balance | 0 | ||
Available-for-sale securities [Member] | Alt-A and subprime private-label securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 24 | 77 | 217 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 5 | 0 | 54 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | (5) | (45) | (53) |
Purchases | 0 | 0 | 0 |
Sales | (23) | 0 | (105) |
Issues | 0 | 0 | 0 |
Settlements | (1) | (4) | (36) |
Transfers out of Level 3 | 0 | (4) | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending Balance | 0 | 24 | 77 |
Available-for-sale securities [Member] | Mortgage revenue bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 434 | 671 | 1,272 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 1 | 0 | 35 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | (3) | (7) | (11) |
Purchases | 0 | 0 | 0 |
Sales | (5) | (22) | (392) |
Issues | 0 | 0 | 0 |
Settlements | (112) | (208) | (233) |
Transfers out of Level 3 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending Balance | 315 | 434 | 671 |
Available-for-sale securities [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 342 | 357 | 429 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 13 | 28 | 8 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | (10) | (2) | (11) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | (5) |
Issues | 0 | 0 | 0 |
Settlements | (37) | (41) | (64) |
Transfers out of Level 3 | (3) | 0 | 0 |
Transfers into Level 3 | 1 | 0 | 0 |
Ending Balance | 306 | 342 | 357 |
Mortgage loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 26 | 14 | 25 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 937 | 1,116 | 1,197 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 46 | 38 | 45 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 5 |
Sales | (52) | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (136) | (216) | (233) |
Transfers out of Level 3 | (254) | (162) | (70) |
Transfers into Level 3 | 147 | 161 | 172 |
Ending Balance | 688 | 937 | 1,116 |
Net derivatives [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 3 | 40 | 13 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 194 | 134 | 44 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 109 | (38) | 111 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (119) | (45) | (22) |
Transfers out of Level 3 | (10) | 53 | 6 |
Transfers into Level 3 | (12) | 0 | (5) |
Ending Balance | 162 | 194 | 134 |
Long-term debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | (51) | 23 | (40) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (552) | (958) | (588) |
Total gains (losses) (realized/unrealized) Included in Net Income | (55) | (34) | (38) |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 2 | 1 | 2 |
Settlements | 19 | 44 | 66 |
Transfers out of Level 3 | 200 | 541 | 388 |
Transfers Into Level 3 | (83) | (214) | (784) |
Ending Balance | (473) | (552) | (958) |
Long-term debt [Member] | Consolidated Trusts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | (4) | (2) | (11) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (201) | (582) | (241) |
Total gains (losses) (realized/unrealized) Included in Net Income | (8) | 9 | (9) |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 2 | 1 | 2 |
Settlements | 19 | 44 | 66 |
Transfers out of Level 3 | 200 | 541 | 388 |
Transfers Into Level 3 | (83) | (214) | (784) |
Ending Balance | (75) | (201) | (582) |
Long-term debt [Member] | Senior floating [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | (47) | 25 | (29) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (351) | (376) | (347) |
Total gains (losses) (realized/unrealized) Included in Net Income | (47) | 25 | (29) |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 |
Ending Balance | (398) | (351) | (376) |
Other Comprehensive Income (Loss) [Member] | Trading Assets, Excluding Debt and Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Trading Assets, Excluding Debt and Equity Securities [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Trading Assets, Excluding Debt and Equity Securities [Member] | Other agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Trading Assets, Excluding Debt and Equity Securities [Member] | Alt-A and subprime private-label securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | (3) | 0 | 1 |
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 6 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | Other agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | ||
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | Alt-A and subprime private-label securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 1 | 4 |
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | Mortgage revenue bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | (1) | (2) | 4 |
Other Comprehensive Income (Loss) [Member] | Available-for-sale securities [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | (8) | 1 | (7) |
Other Comprehensive Income (Loss) [Member] | Mortgage loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Net derivatives [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net Unrealized Gains (Losses) included in net income related to assets still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Long-term debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Long-term debt [Member] | Consolidated Trusts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Long-term debt [Member] | Senior floating [Member] | Fannie Mae [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net unrealized Gains (Losses) included in net income related to liabilities still held | $ 0 | $ 0 | $ 0 |
Fair Value Level 3 Valuation In
Fair Value Level 3 Valuation Inputs - Recurring (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 7,825 | $ 8,922 |
Net derivatives | 231 | 401 |
Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 48,123 | 41,867 |
Available-for-sale securities | 2,404 | 3,429 |
Mortgage loans held for investment, at fair value | 7,825 | 8,922 |
Long-term debt | (27,567) | (30,579) |
Recurring Fair Value Measurements [Member] | Alt-A and subprime private-label securities [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 629 | 1,306 |
Available-for-sale securities | 57 | 592 |
Recurring Fair Value Measurements [Member] | Mortgage revenue bonds [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 315 | 434 |
Recurring Fair Value Measurements [Member] | Other [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 314 | 350 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 8,576 | 6,332 |
Available-for-sale securities | 1,612 | 2,477 |
Mortgage loans held for investment, at fair value | 3,270,535 | 2,990,104 |
Mortgage loans held for sale, at lower of cost or fair value | 229 | 238 |
Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 8,576 | 6,332 |
Available-for-sale securities | 1,612 | 2,477 |
Mortgage loans held for investment, at fair value | 7,137 | 7,985 |
Long-term debt | (27,094) | (30,027) |
Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | Alt-A and subprime private-label securities [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 629 | 1,305 |
Available-for-sale securities | 57 | 568 |
Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | Mortgage revenue bonds [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | Other [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 8 | 8 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 274 | 91 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 46 | 33 |
Available-for-sale securities | 792 | 952 |
Mortgage loans held for investment, at fair value | 127,650 | 216,404 |
Mortgage loans held for sale, at lower of cost or fair value | 7,054 | 7,856 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 46 | 33 |
Available-for-sale securities | 792 | 952 |
Mortgage loans held for investment, at fair value | 688 | 937 |
Net derivatives | 162 | 194 |
Long-term debt | (473) | (552) |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Agency [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 171 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Alt-A and subprime private-label securities [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 0 | 1 |
Available-for-sale securities | 0 | 24 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Mortgage revenue bonds [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 315 | 434 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 306 | 342 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Consensus without inputs [Member] | Agency [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 107 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | $ 267 | $ 294 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 3.00% | 0.754% |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 3.00% | 3.90% |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Maximum [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.0470 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Maximum [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.082 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Maximum [Member] | Measurement Input, Loss Severity [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.700 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 3.00% | 3.891% |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.0470 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.082 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Other [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | Measurement Input, Loss Severity [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.700 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Single vendor with inputs [Member] | Mortgage revenue bonds [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | $ 222 | $ 349 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Single vendor with inputs [Member] | Mortgage revenue bonds [Member] | Available-for-sale securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 0.23% | (0.005%) |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Single vendor with inputs [Member] | Mortgage revenue bonds [Member] | Available-for-sale securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 2.051% | 3.328% |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Single vendor with inputs [Member] | Mortgage revenue bonds [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 0.761% | 0.59% |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Net derivatives | $ 15 | $ 81 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | Agency [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 46 | 32 |
Available-for-sale securities | 64 | 152 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | Alt-A and subprime private-label securities [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 24 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | Mortgage revenue bonds [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 1 | |
Available-for-sale securities | 93 | 85 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | Other [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 39 | 48 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Dealer Mark [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Net derivatives | 147 | 113 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 1,076 | 1,750 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | Consensus without inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 471 | 631 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | Single vendor without inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 605 | 1,119 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | Single-Family [Member] | Internal model [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 555 | 818 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | Multifamily [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 40 | 142 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | Multifamily [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 16 | $ 40 |
Fair Value Level 3 Valuation -
Fair Value Level 3 Valuation - Nonrecurring (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 7,825 | $ 8,922 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 229 | 238 |
Mortgage loans held for investment, at fair value | 3,270,535 | 2,990,104 |
Total nonrecurring assets at fair value | 3,313,691 | 3,053,308 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 7,054 | 7,856 |
Mortgage loans held for investment, at fair value | 127,650 | 216,404 |
Total nonrecurring assets at fair value | 136,048 | 225,812 |
Fair Value, Recurring [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 7,825 | 8,922 |
Total nonrecurring assets at fair value | 58,623 | 55,424 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 7,137 | 7,985 |
Total nonrecurring assets at fair value | 18,685 | 19,309 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 688 | 937 |
Total nonrecurring assets at fair value | 1,725 | 2,131 |
Fair Value, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 274 | 91 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 1,076 | 1,750 |
Total nonrecurring assets at fair value | 2,598 | 3,771 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consensus without inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | 471 | 631 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single vendor without inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for sale, at lower of cost or fair value | $ 605 | $ 1,119 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Accepted Offers [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Number of properties measured | 12.00% | 15.00% |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Proprietary Home Price Model and Appraisals [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Number of properties measured | 85.00% | 82.00% |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | $ 918 | $ 1,011 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 51 | 41 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | Internal model [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 555 | 818 |
Acquired property, net | 164 | 219 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | Accepted Offers [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 101 | 151 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | Appraisals [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 362 | 419 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Single-Family [Member] | Walk Forwards [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 240 | 181 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Multifamily [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 40 | 142 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Multifamily [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 16 | 40 |
Acquired property, net | 9 | 50 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Multifamily [Member] | Asset Manager Estimate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 24 | $ 102 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement [Domain] | ||
Financial assets [Abstract] | ||
Netting adjustment | $ (1,288) | $ (2,266) |
Financial liabilities [Abstract] | ||
Netting adjustment | (1,694) | (2,315) |
Mortgage loans held for investment, at fair value | 7,825 | 8,922 |
Netting adjustment | (1,288) | (2,266) |
Netting adjustment | (1,694) | (2,315) |
Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 5,687 | 6,826 |
Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 21,880 | 23,753 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 50,057 | 34,073 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 0 | 0 |
Trading securities | 39,501 | 35,502 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Advances to lenders | 0 | 0 |
Derivative assets at fair value | 0 | 0 |
Guaranty assets and buy-ups | 0 | 0 |
Total assets at fair value | 89,558 | 69,575 |
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 0 |
Guaranty obligations | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 11,350 | 15,350 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 13,578 | 32,938 |
Trading securities | 8,576 | 6,332 |
Available-for-sale securities | 1,612 | 2,477 |
Mortgage loans held for sale | 229 | 238 |
Mortgage loans held for investment, at fair value | 3,270,535 | 2,990,104 |
Advances to lenders | 6,451 | 3,354 |
Derivative assets at fair value | 1,360 | 2,515 |
Guaranty assets and buy-ups | 0 | 0 |
Total assets at fair value | 3,313,691 | 3,053,308 |
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 2,092 | 3,077 |
Guaranty obligations | 0 | 0 |
Total liabilities at fair value | 3,506,144 | 3,303,620 |
Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 26,667 | 24,901 |
Long-term debt | 164,144 | 211,403 |
Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,312,763 | 3,064,239 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 0 | 0 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 0 | 0 |
Trading securities | 46 | 33 |
Available-for-sale securities | 792 | 952 |
Mortgage loans held for sale | 7,054 | 7,856 |
Mortgage loans held for investment, at fair value | 127,650 | 216,404 |
Advances to lenders | 2 | 2 |
Derivative assets at fair value | 199 | 209 |
Guaranty assets and buy-ups | 305 | 356 |
Total assets at fair value | 136,048 | 225,812 |
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 37 | 15 |
Guaranty obligations | 97 | 121 |
Total liabilities at fair value | 32,362 | 39,950 |
Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 0 | 0 |
Long-term debt | 401 | 771 |
Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 31,827 | 39,043 |
Carrying Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 61,407 | 49,423 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 13,578 | 32,938 |
Trading securities | 48,123 | 41,867 |
Available-for-sale securities | 2,404 | 3,429 |
Mortgage loans held for sale | 6,773 | 7,701 |
Mortgage loans held for investment, at fair value | 3,327,389 | 3,241,694 |
Advances to lenders | 6,453 | 3,356 |
Derivative assets at fair value | 271 | 458 |
Guaranty assets and buy-ups | 142 | 147 |
Total assets at fair value | 3,466,540 | 3,381,013 |
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 435 | 777 |
Guaranty obligations | 154 | 160 |
Total liabilities at fair value | 3,468,453 | 3,392,857 |
Carrying Value [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 26,662 | 24,896 |
Long-term debt | 155,585 | 207,178 |
Carrying Value [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,285,139 | 3,159,846 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 61,407 | 49,423 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 13,578 | 32,938 |
Trading securities | 48,123 | 41,867 |
Available-for-sale securities | 2,404 | 3,429 |
Mortgage loans held for sale | 7,283 | 8,094 |
Mortgage loans held for investment, at fair value | 3,398,185 | 3,206,508 |
Advances to lenders | 6,453 | 3,356 |
Derivative assets at fair value | 271 | 458 |
Guaranty assets and buy-ups | 305 | 356 |
Total assets at fair value | 3,538,009 | 3,346,429 |
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 435 | 777 |
Guaranty obligations | 97 | 121 |
Total liabilities at fair value | 3,536,812 | 3,341,255 |
Estimate of Fair Value Measurement [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 26,667 | 24,901 |
Long-term debt | 164,545 | 212,174 |
Estimate of Fair Value Measurement [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | $ 3,344,590 | $ 3,103,282 |
Fair Value Option (Details)
Fair Value Option (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Quantitative Information [Line Items] | |||
Mortgage loans held for investment, at fair value | $ 7,825 | $ 8,922 | |
Fair value of nonaccrual loans | 129 | 161 | |
Difference between unpaid principal balance and the fair value of nonaccrual loans | 11 | 19 | |
Fair value of loans that are 90 days past due | 80 | 102 | |
Difference between unpaid principal balance and the fair value of these 90 days or more days past due loans | $ 10 | 14 | |
Single-Family [Member] | Minimum [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Serious delinquency: days past due | 90 days | ||
Consolidated Trusts [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Long-term debt, fair value | $ 21,880 | 23,753 | |
Fannie Mae [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Long-term debt, fair value | 5,687 | 6,826 | |
Loans [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Mortgage loans held for investment, at fair value | 7,825 | 8,922 | |
Loans, unpaid principal balance | 7,514 | 8,832 | |
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 136 | 357 | (128) |
Long-term debt [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ (294) | (765) | 688 |
Long-term debt [Member] | Consolidated Trusts [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Long-term debt, fair value | 21,880 | 23,753 | |
Long-Term Debt, unpaid principal balance | 19,653 | 22,080 | |
Long-term debt [Member] | Fannie Mae [Member] | |||
Fair Value Inputs, Quantitative Information [Line Items] | |||
Long-term debt, fair value | 5,687 | 6,826 | |
Long-Term Debt, unpaid principal balance | $ 5,200 | $ 6,241 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unconditional Purchase Obligation [Line Items] | |||
Purchase Obligation | $ 74,283 | ||
Rent expenses for operating leases | 95 | $ 100 | $ 61 |
Mortgage commitment derivatives | |||
Unconditional Purchase Obligation [Line Items] | |||
Purchase Obligation | $ 74,000 |
Commitments and Contingencies F
Commitments and Contingencies Fiscal Year Maturity Schedule (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unconditional Purchase Obligation [Line Items] | |||
Operating Leases, Rent Expense | $ 95 | $ 100 | $ 61 |
Loans and Mortgage-Related Securities [Abstract] | |||
2020 | 74,283 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Total | 74,283 | ||
Operating Leases [Abstract] | |||
2020 | 59 | ||
2021 | 55 | ||
2022 | 56 | ||
2023 | 49 | ||
2024 | 50 | ||
Thereafter | 475 | ||
Total | 744 | ||
Other [Abstract] | |||
2020 | 109 | ||
2021 | 40 | ||
2022 | 6 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Total | 155 | ||
Mortgage commitment derivatives | |||
Loans and Mortgage-Related Securities [Abstract] | |||
Total | $ 74,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||||||||||
Trading securities | $ 350 | $ 418 | $ 432 | $ 427 | $ 419 | $ 363 | $ 318 | $ 236 | $ 1,627 | $ 1,336 | $ 706 |
Available-for-sale securities | 37 | 40 | 45 | 53 | 55 | 54 | 50 | 71 | 175 | 230 | 335 |
Mortgage loans interest income | 28,759 | 28,858 | 29,379 | 29,768 | 29,541 | 28,723 | 28,307 | 28,034 | 116,764 | 114,605 | 108,319 |
Interest Income, Federal Funds Sold and Securities Purchased under Agreements to Resell | 145 | 178 | 257 | 263 | 285 | 166 | 149 | 142 | 843 | 742 | 373 |
Other | 43 | 47 | 41 | 32 | 34 | 38 | 33 | 31 | 163 | 136 | 123 |
Total interest income | 29,334 | 29,541 | 30,154 | 30,543 | 30,334 | 29,344 | 28,857 | 28,514 | 119,572 | 117,049 | 109,856 |
Interest expense: | |||||||||||
Short-term debt interest expense | (132) | (125) | (119) | (125) | (137) | (114) | (110) | (107) | (501) | (468) | (250) |
Long-term debt interest expense | (23,352) | (24,187) | (24,885) | (25,685) | (25,224) | (23,861) | (23,370) | (23,175) | (98,109) | (95,630) | (88,873) |
Total interest expense | (23,484) | (24,312) | (25,004) | (25,810) | (25,361) | (23,975) | (23,480) | (23,282) | (98,610) | (96,098) | (89,123) |
Net interest income | 5,850 | 5,229 | 5,150 | 4,733 | 4,973 | 5,369 | 5,377 | 5,232 | 20,962 | 20,951 | 20,733 |
Benefit (provision) for credit losses | 279 | 1,857 | 1,225 | 650 | 1,080 | 716 | 1,296 | 217 | 4,011 | 3,309 | 2,041 |
Net interest income after benefit for credit losses | 6,129 | 7,086 | 6,375 | 5,383 | 6,053 | 6,085 | 6,673 | 5,449 | 24,973 | 24,260 | 22,774 |
Investment gains (losses), net | 923 | 253 | 461 | 133 | 259 | 166 | 277 | 250 | 1,770 | 952 | 1,522 |
Fair value gains (losses), net | 84 | (713) | (754) | (831) | (539) | 386 | 229 | 1,045 | (2,214) | 1,121 | (1,211) |
Fee and other income | 301 | 402 | 246 | 227 | 149 | 271 | 239 | 320 | 1,176 | 979 | 2,227 |
Non-interest income | 1,308 | (58) | (47) | (471) | (131) | 823 | 745 | 1,615 | 732 | 3,052 | 2,538 |
Salaries and employee benefits | (363) | (361) | (376) | (386) | (350) | (355) | (365) | (381) | (1,486) | (1,451) | (1,328) |
Professional services | (268) | (241) | (233) | (225) | (288) | (247) | (254) | (243) | (967) | (1,032) | (933) |
Other administrative expenses | (155) | (147) | (135) | (133) | (176) | (138) | (136) | (126) | (570) | (576) | (476) |
Total administrative expenses | (786) | (749) | (744) | (744) | (814) | (740) | (755) | (750) | (3,023) | (3,059) | (2,737) |
Foreclosed property expense | (151) | (96) | (128) | (140) | (157) | (159) | (139) | (162) | (515) | (617) | (521) |
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (626) | (613) | (600) | (593) | (586) | (576) | (565) | (557) | (2,432) | (2,284) | (2,096) |
Other expenses, net | (644) | (571) | (535) | (408) | (307) | (377) | (366) | (203) | (2,158) | (1,253) | (1,511) |
Total expenses | (2,207) | (2,029) | (2,007) | (1,885) | (1,864) | (1,852) | (1,825) | (1,672) | (8,128) | (7,213) | (6,865) |
Income before federal income taxes | 5,230 | 4,999 | 4,321 | 3,027 | 4,058 | 5,056 | 5,593 | 5,392 | 17,577 | 20,099 | 18,447 |
Provision for federal income taxes | (865) | (1,036) | (889) | (627) | (828) | (1,045) | (1,136) | (1,131) | (3,417) | (4,140) | (15,984) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,365 | 3,963 | 3,432 | 2,400 | 3,230 | 4,011 | 4,457 | 4,261 | 14,160 | 15,959 | 2,463 |
Dividends distributed or available for distribution to senior preferred stockholder | (4,266) | (3,977) | (3,365) | (2,361) | (3,241) | (3,975) | (4,459) | (938) | (13,969) | (12,613) | (8,944) |
Net income (loss) attributable to common stockholders | $ 99 | $ (14) | $ 67 | $ 39 | $ (11) | $ 36 | $ (2) | $ 3,323 | $ 191 | $ 3,346 | $ (6,481) |
Earnings (loss) per share: Basic | $ 0.02 | $ 0 | $ 0.01 | $ 0.01 | $ 0 | $ 0.01 | $ 0 | $ 0.58 | $ 0.03 | $ 0.58 | $ (1.12) |
Earnings (loss) per share: Diluted | $ 0.02 | $ 0 | $ 0.01 | $ 0.01 | $ 0 | $ 0.01 | $ 0 | $ 0.56 | $ 0.03 | $ 0.57 | $ (1.12) |
Weighted-average common shares outstanding: Basic | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 | 5,762 |
Weighted-average common shares outstanding: Diluted | 5,893 | 5,762 | 5,893 | 5,893 | 5,762 | 5,893 | 5,762 | 5,893 | 5,893 | 5,893 | 5,762 |