Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 1,158,087,567 | ||
Entity Public Float | $ 2.5 | ||
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 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and Cash Equivalents | $ 38,337 | $ 21,184 |
Restricted Cash (includes $68,308 and $33,294, respectively, related to consolidated trusts) | 77,286 | 40,223 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 28,200 | 13,578 |
Investments in securities: | ||
Trading, at fair value (includes $6,544 and $3,037, respectively, pledged as collateral) | 136,542 | 48,123 |
Available-for-sale, at fair value | 1,697 | 2,404 |
Total investments in securities | 138,239 | 50,527 |
Mortgage loans: | ||
Mortgage loans held for sale | 5,197 | 6,773 |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3,659,247 | 3,336,405 |
Allowance for loan losses | (10,552) | (9,016) |
Total loans held for investment, net of allowance | 3,648,695 | 3,327,389 |
Total mortgage loans | 3,653,892 | 3,334,162 |
Advance to Lender | 10,449 | 6,453 |
Deferred Income Tax Assets, Net | 12,947 | 11,910 |
Interest Receivable | 9,937 | 8,604 |
Acquired property, net | 1,261 | 2,366 |
Other assets | 15,201 | 14,312 |
Total assets | 3,985,749 | 3,503,319 |
Liabilities: | ||
Interest Payable | 9,719 | 10,228 |
Other Liabilities | 15,035 | 11,097 |
Total liabilities | 3,960,490 | 3,488,711 |
Commitments and contingencies (Note 16) | 0 | 0 |
Fannie Mae stockholders’ equity: | ||
Senior Preferred Stock Value | 120,836 | 120,836 |
Preferred Stock, Value, Issued | 19,130 | 19,130 |
Common Stock, Value, Issued | 687 | 687 |
Accumulated deficit | (108,110) | (118,776) |
Accumulated other comprehensive income | 116 | 131 |
Treasury Stock, Value | (7,400) | (7,400) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 25,259 | 14,608 |
Total liabilities and equity | 3,985,749 | 3,503,319 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||
Mortgage loans: | ||
Interest Receivable | 216 | |
Consolidated Trusts [Member] | ||
ASSETS | ||
Restricted Cash (includes $68,308 and $33,294, respectively, related to consolidated trusts) | 68,308 | 33,294 |
Investments in securities: | ||
Trading, at fair value (includes $6,544 and $3,037, respectively, pledged as collateral) | 793 | 896 |
Mortgage loans: | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3,546,521 | 3,241,494 |
Interest Receivable | 9,635 | 8,172 |
Liabilities: | ||
Interest Payable | 8,955 | 9,361 |
Debt (includes $3,728 and $5,687, respectively, of debt of Fannie Mae and $24,586 and $21,880, respectively, of debt of consolidated trusts, at fair value) | 3,646,164 | 3,285,139 |
Other Liabilities | 1,523 | 376 |
Fannie Mae [Member] | ||
Mortgage loans: | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 112,726 | 94,911 |
Liabilities: | ||
Debt (includes $3,728 and $5,687, respectively, of debt of Fannie Mae and $24,586 and $21,880, respectively, of debt of consolidated trusts, at fair value) | $ 289,572 | $ 182,247 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Trading securities | $ 874 | $ 1,627 | $ 1,336 |
Available-for-sale securities | 98 | 175 | 230 |
Mortgage loans | 106,316 | 117,374 | 115,029 |
Interest Income, Federal Funds Sold and Securities Purchased under Agreements to Resell or similar arrangements | 146 | 843 | 742 |
Other | 135 | 163 | 136 |
Total interest income | 107,569 | 120,182 | 117,473 |
Interest expense: | |||
Short-term debt | (182) | (501) | (468) |
Long-term debt | (82,521) | (98,388) | (95,732) |
Total interest expense | (82,703) | (98,889) | (96,200) |
Net interest income | 24,866 | 21,293 | 21,273 |
Benefit (provision) for credit losses | (678) | 4,011 | 3,309 |
Net interest income after benefit (provision) for credit losses | 24,188 | 25,304 | 24,582 |
Non-interest Income: | |||
Investment gains, net | 907 | 1,770 | 952 |
Fair value gains (losses), net | (2,501) | (2,214) | 1,121 |
Fee and other income | 462 | 566 | 555 |
Non-interest income (loss) | (1,132) | 122 | 2,628 |
Administrative expenses: | |||
Salaries and employee benefits | (1,554) | (1,486) | (1,451) |
Professional services | (921) | (967) | (1,032) |
Other administrative expenses | (593) | (570) | (576) |
Total administrative expenses | (3,068) | (3,023) | (3,059) |
Foreclosed property expense | (177) | (515) | (617) |
Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees | (2,673) | (2,432) | (2,284) |
Other expenses, net | (1,131) | (745) | (472) |
Total expenses | (8,177) | (7,849) | (7,111) |
Income before federal income taxes | 14,879 | 17,577 | 20,099 |
Provision for federal income taxes | (3,074) | (3,417) | (4,140) |
Total comprehensive income | |||
Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes | (23) | (179) | (344) |
Other, net of taxes | 8 | (12) | (4) |
Total other comprehensive loss | (15) | (191) | (348) |
Total comprehensive income | 11,790 | 13,969 | 15,611 |
Net income | 11,805 | 14,160 | 15,959 |
Dividends distributed or amounts attributable to senior preferred stock | (11,790) | (13,969) | (12,613) |
Net income attributable to common stockholders | $ 15 | $ 191 | $ 3,346 |
Earnings (loss) per share: Basic | $ 0 | $ 0.03 | $ 0.58 |
Earnings (loss) per share: Diluted | $ 0 | $ 0.03 | $ 0.57 |
Weighted Average Number of Shares Outstanding, Basic | 5,867 | 5,762 | 5,762 |
Weighted-average common shares outstanding: Diluted | 5,893 | 5,893 | 5,893 |
Credit Enhancement Expense | $ (1,361) | $ (1,134) | $ (679) |
Change in expected credit enhancement recoveries | $ 233 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows provided by (used in) operating activities: | |||
Net income | $ 11,805 | $ 14,160 | $ 15,959 |
Reconciliation of net income to net cash provided by (used in) operating activities: | |||
Amortization of cost basis adjustments | (9,190) | (6,002) | (5,949) |
Benefit for credit losses | 678 | (4,011) | (3,309) |
Valuation gains | (2,618) | (1,809) | (911) |
Current and deferred federal income taxes | 3,152 | 1,517 | 3,680 |
Net gains related to the disposition of acquired property and preforeclosure sales, including credit enhancements | (924) | (917) | (1,785) |
Net change in accrued interest receivable | (2,749) | 332 | 204 |
Net change in servicer advances | 932 | (67) | (206) |
Other, net | (225) | (363) | 442 |
Net change in trading securities | (73,659) | (1,630) | (5,454) |
Interest Paid, Excluding Capitalized Interest, Operating Activities | (136) | (5,964) | (423) |
Net cash provided by (used in) operating activities | (72,934) | (4,754) | 2,248 |
Cash flows provided by investing activities: | |||
Proceeds from maturities and paydowns of trading securities held for investment | 47 | 58 | 182 |
Proceeds from sales of trading securities held for investment | 110 | 49 | 96 |
Proceeds from maturities and paydowns of available-for-sale securities | 364 | 469 | 695 |
Proceeds from sales of available-for-sale securities | 361 | 537 | 760 |
Purchases of loans held for investment | (766,699) | (261,808) | (172,155) |
Advances to lenders | (339,043) | (141,395) | (108,294) |
Proceeds from disposition of acquired property and preforeclosure sales | 5,991 | 7,425 | 9,321 |
Net change in federal funds sold and securities purchased under agreements to resell or similar arrangements | (14,622) | 19,360 | (13,468) |
Other, net | 287 | (80) | 78 |
Net cash provided by investing activities | 26,685 | 207,052 | 150,853 |
Cash flows used in financing activities: | |||
Payments of cash dividends on senior preferred stock to Treasury | 0 | (5,601) | (9,372) |
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | 0 | 3,687 |
Other, net | (510) | 480 | 63 |
Net cash used in financing activities | 100,465 | (190,314) | (163,938) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 54,216 | 11,984 | (10,837) |
Cash, cash equivalents and restricted cash at beginning of period | 61,407 | 49,423 | 60,260 |
Cash, cash equivalents and restricted cash at end of period | 115,623 | 61,407 | 49,423 |
Cash paid during the period for: | |||
Interest | 113,878 | 121,542 | 110,415 |
Income taxes | 3,950 | 1,900 | 460 |
Non-cash activities: | |||
Net mortgage loans acquired by assuming debt | 369,733 | 273,174 | 231,478 |
Net transfers from mortgage loans of Fannie Mae to mortgage loans of consolidated trusts | 709,451 | 248,463 | 185,310 |
Transfers from advances to lenders to loans held for investment of consolidated trusts | 318,426 | 128,272 | 102,865 |
Net transfers from mortgage loans to acquired property | 3,940 | 6,681 | 8,131 |
Fannie Mae [Member] | |||
Cash flows provided by investing activities: | |||
Proceeds from repayments of loans acquired as held for investment | 10,672 | 12,508 | 15,082 |
Proceeds from sales of loans acquired as held for investment | 8,744 | 17,794 | 17,511 |
Cash flows used in financing activities: | |||
Proceeds from the issuance of debt | 580,220 | 789,572 | 789,355 |
Payments to redeem debt | (472,795) | (834,294) | (834,366) |
Consolidated Trusts [Member] | |||
Cash flows provided by investing activities: | |||
Proceeds from repayments of loans acquired as held for investment | 1,120,473 | 552,135 | 401,045 |
Cash flows used in financing activities: | |||
Proceeds from the issuance of debt | 1,091,242 | 435,235 | 357,846 |
Payments to redeem debt | $ (1,097,692) | $ (575,706) | $ (471,151) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Transition impact of the adoption of the CECL standard | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Senior Preferred Stock | Senior Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance [Member] | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Deficit | Accumulated DeficitTransition impact of the adoption of the CECL standard | Accumulated DeficitCumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance [Member] |
Balance (shares) at Dec. 31, 2017 | 1 | 556 | 1,158 | |||||||||||||
Balance at Dec. 31, 2017 | $ 3,686 | $ (117,149) | $ (19,130) | $ (687) | $ 133,805 | $ (553) | $ 7,400 | |||||||||
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 $21, $0, and $3 respectively) | (79) | (79) | ||||||||||||||
Reclassification adjustment for gains included in net income (net of taxes of $70, $48, and $3 respectively) | (265) | (265) | ||||||||||||||
Other, net of taxes | (4) | (4) | ||||||||||||||
Other | 0 | 0 | ||||||||||||||
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 | |||||||||||||
Other comprehensive income, net of tax effect: | ||||||||||||||||
Changes in net unrealized gains on available-for-sale securities, net of tax | 21 | |||||||||||||||
Reclassification adjustment for gains included in net loss, net of tax | 70 | |||||||||||||||
Other (net of taxes) | 0 | |||||||||||||||
Senior preferred stock dividends paid per share | (5,601) | (5,601) | ||||||||||||||
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | |||||||||||||||
Net income | 14,160 | 14,160 | ||||||||||||||
Changes in net unrealized gains on available-for-sale securities (net of taxes of $21, $0, and $3 respectively) | 1 | 1 | ||||||||||||||
Reclassification adjustment for gains included in net income (net of taxes of $70, $48, and $3 respectively) | (180) | (180) | ||||||||||||||
Other, net of taxes | (12) | (12) | ||||||||||||||
Total comprehensive income | 13,969 | |||||||||||||||
Balance at Dec. 31, 2019 | (14,608) | $ 1,139 | $ (13,469) | $ (120,836) | $ (120,836) | $ (19,130) | $ (19,130) | $ (687) | $ (687) | 118,776 | $ 1,139 | $ 119,915 | (131) | $ (131) | 7,400 | $ 7,400 |
Balance (shares) at Dec. 31, 2019 | 1 | 1 | 556 | 556 | 1,158 | 1,158 | ||||||||||
Other comprehensive income, net of tax effect: | ||||||||||||||||
Changes in net unrealized gains on available-for-sale securities, net of tax | 0 | |||||||||||||||
Reclassification adjustment for gains included in net loss, net of tax | 48 | |||||||||||||||
Senior preferred stock dividends paid per share | 0 | |||||||||||||||
Proceeds from senior preferred stock purchase agreement with Treasury | 0 | |||||||||||||||
Net income | 11,805 | 11,805 | ||||||||||||||
Changes in net unrealized gains on available-for-sale securities (net of taxes of $21, $0, and $3 respectively) | (12) | (12) | ||||||||||||||
Reclassification adjustment for gains included in net income (net of taxes of $70, $48, and $3 respectively) | (11) | (11) | ||||||||||||||
Other, net of taxes | 8 | 8 | ||||||||||||||
Total comprehensive income | 11,790 | |||||||||||||||
Balance at Dec. 31, 2020 | (25,259) | $ (120,836) | $ (19,130) | $ (687) | $ 108,110 | $ (116) | $ 7,400 | |||||||||
Balance (shares) at Dec. 31, 2020 | 1 | 556 | 1,158 | |||||||||||||
Other comprehensive income, net of tax effect: | ||||||||||||||||
Changes in net unrealized gains on available-for-sale securities, net of tax | 3 | |||||||||||||||
Reclassification adjustment for gains included in net loss, net of tax | (3) | |||||||||||||||
Other (net of taxes) | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents (includes $68,308 and $33,294, respectively, related to consolidated trusts) | $ 77,286 | $ 40,223 |
Security Owned and Pledged as Collateral, Fair Value | 6,544 | 3,037 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 1,606 | 2,281 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 3 | |
Loans held for investment, at amortized cost of consolidated trusts (includes $12,057 and $14,075, respectively, at fair value) | 6,490 | 7,825 |
Interest Receivable | 9,937 | 8,604 |
Interest Payable | 9,719 | 10,228 |
Other Liabilities | $ 15,035 | $ 11,097 |
Senior preferred stock, 1,000,000 shares outstanding | 142,192,000,000 | 131,178,000,000 |
Preferred stock, 700,000,000 shares are authorized | 700,000,000 | 700,000,000 |
Preferred stock, shares outstanding | 555,374,922 | 555,374,922 |
Preferred stock, 555,374,922 shares issued | 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, Shares, Outstanding | 1,158,087,567 | 1,158,087,567 |
Treasury stock, at cost, 150,675,136 and 150,679,953 shares, respectively | 150,675,136 | 150,675,136 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||
Interest Receivable | $ 216 | |
Consolidated Trusts [Member] | ||
Restricted Cash and Cash Equivalents (includes $68,308 and $33,294, respectively, related to consolidated trusts) | 68,308 | $ 33,294 |
Interest Receivable | 9,635 | 8,172 |
Interest Payable | 8,955 | 9,361 |
Long-term debt | 24,586 | 21,880 |
Other Liabilities | 1,523 | 376 |
Fannie Mae [Member] | ||
Long-term debt | $ 3,728 | $ 5,687 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization Fannie Mae is a leading source of financing for mortgages in the United States. We are a shareholder-owned corporation organized as a government-sponsored entity (“GSE”) and existing under the Federal National Mortgage Association Charter Act (the “Charter Act” or our “charter”). Our charter is an act of Congress, and we have a mission under that charter to provide liquidity and stability to the residential mortgage market and to promote access to mortgage credit. As such, 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 who originate loans to borrowers. 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, with FHFA acting as our conservator, 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. 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 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 and the dividend and liquidation provisions of the senior preferred stock were amended in January 2021 pursuant to a letter agreement between us, through FHFA in its capacity as conservator, and Treasury. The terms of the agreement, including Treasury’s funding commitment, and the dividend and liquidation provisions of the senior preferred stock are described more fully in “Note 11, Equity.” The January 2021 letter agreement made a number of changes to the covenants in the senior preferred stock purchase agreement, as well as to the terms of the senior preferred stock. Because these changes were made subsequent to December 31, 2020, there was no impact to our 2020 financial statements as a result of the changes in the January 2021 letter agreement. These changes include the following: • The dividend provisions of the senior preferred stock were amended to permit us to retain increases in our net worth until our net worth exceeds the amount of adjusted total capital necessary for us to meet the capital requirements and buffers under the enterprise regulatory capital framework discussed in “Note 12, Regulatory Capital Requirements.” After the “capital reserve end date,” which is defined as the last day of the second consecutive fiscal quarter during which we have maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework, the amount of quarterly dividends to Treasury will be equal to the lesser of any quarterly increase in our net worth and a 10% annual rate on the then-current liquidation preference of the senior preferred stock. • At the end of each fiscal quarter, through and including the capital reserve end date, the liquidation preference of the senior preferred stock will be increased by an amount equal to the increase in our net worth, if any, during the immediately prior fiscal quarter. • We may issue and retain up to $70 billion in proceeds from the sale of common stock without Treasury’s prior consent, provided that (1) Treasury has already exercised its warrant in full, and (2) all currently pending significant litigation relating to the conservatorship and to an amendment to the senior preferred stock purchase agreement made in August 2012 has been resolved, which may require Treasury’s assent. • FHFA may release us from conservatorship without Treasury’s consent after (1) all currently pending significant litigation relating to the conservatorship and to the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, and (2) our common equity tier 1 capital, together with any other common stock that we may issue in a public offering, equals or exceeds 3% of our “adjusted total assets” under our enterprise regulatory capital framework. • New restrictive covenants were added that will impact both our single-family and multifamily business activities. We are still evaluating the appropriate accounting for this amendment to the senior preferred stock purchase agreement. The amendment will be accounted for as either a modification or an extinguishment of the existing instrument. To the extent that the amendment is required to be accounted for as a modification, there will be no change in the carrying value of the senior preferred stock, as it will be accounted for as an extension of the existing arrangement. However, to the extent that the amendment qualifies as an extinguishment, we will record the amended senior preferred stock at fair value with the difference between the current carrying value and the amended stock’s fair value recorded in accumulated deficit. Senior Preferred Stock For information about the senior preferred stock, see “Note 11, Equity.” 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 2020, 2019 and 2018 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, 2020, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $142.2 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. Since June 2019, some of the structured securities we issue are backed in whole or in part by Freddie Mac securities. Fannie Mae and Freddie Mac each have agreed to indemnify the other party 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; its failure to meet its obligations under the customer services agreement; its violations of laws; or with respect to material misstatements or omissions in offering documents, ongoing disclosures and related materials relating to the underlying resecuritized securities. Additionally, we make regular income tax payments to and receive tax refunds from the Internal Revenue Service (“IRS”), a bureau of Treasury. We received a refund of $4.0 billion, including $340 million of interest, from the IRS during the year ended December 31, 2020 for income tax adjustments related to tax years 2010 through 2016 . Transactions with Treasury Our administrative expenses were reduced by $19 million, $20 million and $24 million for the years ended December 31, 2020, 2019 and 2018, 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. In 2012, 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 “Interest income: Mortgage loans” and “TCCA fees,” respectively, in our consolidated statements of operations and comprehensive income. In 2020, FHFA provided guidance that we are not required to accrue or remit TCCA fees to Treasury with respect to loans backing MBS trusts that have been delinquent for four months or longer. Once payments on such loans resume, we will resume accrual and remittance to Treasury of the associated TCCA fees on the loans. We recognized $2.7 billion, $2.4 billion and $2.3 billion in TCCA fees during the years ended December 31, 2020, 2019 and 2018, respectively, of which $697 million and $626 million had not been remitted as of December 31, 2020 and 2019, 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 $211 million, $98 million and $75 million in “Other expenses, net” in connection with Treasury’s Capital Magnet Fund for the years ended December 31, 2020, 2019 and 2018, respectively. We paid $98 million and $75 million to Treasury’s Capital Magnet Fund in 2020 and 2019, respectively. In 2021, we expect to pay $211 million to Treasury’s Capital Magnet Fund based on our new business purchases in 2020. On January 14, 2021, we, through FHFA acting on our behalf in its capacity as our conservator, and Treasury, entered into a letter agreement modifying the terms of the senior preferred stock purchase agreement and 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 $139 million, $121 million and $110 million for the years ended December 31, 2020, 2019 and 2018, respectively. Transactions with CSS and Freddie Mac We contributed capital to CSS, the company we jointly own with Freddie Mac, of $88 million, $105 million and $135 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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. Presentation of 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. Early lender funding advances have terms up to 60 days and earn a short-term market rate of interest. Advances to lenders has been presented as a separate line item for all periods presented, as increased mortgage refinance activity resulted in a higher balance at period end. In prior periods, advances to lenders were recorded in “Other assets.” Presentation of Freestanding Credit Enhancement Expense and Recoveries Freestanding credit enhancements primarily include our Connecticut Avenue Securities ® (“CAS”) and Credit Insurance Risk Transfer TM (“CIRT TM ”) programs, enterprise-paid mortgage insurance (“EPMI”), and certain lender risk-sharing arrangements, including our multifamily Delegated Underwriting and Servicing (“DUS ® ”) program. We have revised our presentation of the expenses and recoveries associated with these programs as described below. Credit Enhancement Expense Credit enhancement expense consists of costs associated with our freestanding credit enhancements. We exclude from this expense costs related to our CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. Credit enhancement expense has been presented as a separate line item for all periods presented, as these expenses have become a more significant driver of our results of operations. In prior periods, credit enhancement expenses were recorded in “Other expenses, net.” Change in Expected Credit Enhancement Recoveries Change in expected credit enhancement recoveries consists of the change in benefits recognized from our freestanding credit enhancements, including any realized amounts. Benefits, if any, from our CAS, CIRT and EPMI programs previously recorded in “Fee and other income” have been reclassified to “Change in expected credit enhancement recoveries” for all periods presented. Benefits from other lender risk-sharing programs, including our multifamily DUS program, were recorded as a reduction of credit-related expense in periods prior to 2020. However, with our adoption of the Current Expected Credit Loss standard on January 1, 2020, benefits from freestanding credit enhancements are no longer recorded as a reduction of credit-related expenses. These benefits from lender risk-sharing have been reclassified into “Change in expected credit enhancement recoveries” on a prospective basis beginning January 1, 2020. Presentation of Yield Maintenance Fees Prior period multifamily yield maintenance fees have been reclassified to conform to the current-period presentation. Multifamily yield maintenance fees, or prepayment premiums, are fees that a borrower pays when they prepay their loan. For multifamily loans held in a consolidated trust, a portion of the yield maintenance fee is typically passed through to the holders of the trust certificate. As of January 1, 2020, we classify all yield maintenance fees as interest income. For consolidated loans, the portion of the fee passed through to the certificate holders of the trust is classified as interest expense. Previously, we classified multifamily yield maintenance fees as interest income only when the fee was associated with a loan refinancing, otherwise the fee was classified as fee and other income. The portion of the fees passed through to the certificate holders of the trust were previously classified as interest expense only when the fee was associated with a loan refinancing, otherwise the fee was classified as other expense. The changes in presentation have been applied retrospectively to all periods presented and were immaterial for prior periods. 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 Our consolidated financial statements include our accounts as well as the accounts of the other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in an entity such as a variable interest entity (“VIE”) through arrangements that do not involve voting interests. 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 whether 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 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. Uniform Mortgage-Backed Securities (“UMBS”) Uniform Mortgage-Backed Securities (“UMBS”) are common mortgage-backed securities issued by both Fannie Mae and Freddie Mac to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. We and Freddie Mac began issuing UMBS in June 2019. We and Freddie Mac also began resecuritizing UMBS certificates into structured securities in June 2019. The structured securities backed by UMBS that we issue include Supers, which are single-class resecuritization transactions, Real Estate Mortgage Investment Conduit securities (“REMICs”) and interest-only and principal-only strip securities (“SMBS”), which are multi-class resecuritization transactions. Since June 2019, we have resecuritized UMBS, Supers and other structured securities issued by Freddie Mac. The mortgage loans that serve as collateral for Freddie Mac-issued UMBS are not held in trusts that are consolidated by Fannie Mae. When we include Freddie Mac securities in our structured securities, we are subject to additional credit risk because we guarantee securities that were not previously guaranteed by Fannie Mae. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We have concluded that this additional credit risk is negligible because of the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury. Prior to June 2019, 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. Single-Class Securitization Trusts We create single-class securitization trusts to issue single-class Fannie Mae MBS (including UMBS) that evidence an undivided interest in the mortgage loans held in the trust. Investors in single-class Fannie Mae MBS receive principal and interest payments in proportion to their percentage ownership of the MBS issuance. We guarantee to each single-class securitization trust that we will supplement amounts received by the securitization trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie Mae MBS. Single-class securitization trusts are used for lender swap and portfolio securitization transactions. A lender swap transaction occurs when a mortgage lender delivers a pool of single-family mortgage loans to us, which we immediately deposit into an MBS trust. The MBS are then issued to the lender in exchange for the mortgage loans. A portfolio securitization transaction occurs when we purchase mortgage loans from third-party sellers for cash and later deposit these loans into an MBS trust. The securities issued through a portfolio securitization are then sold to investors for cash. We consolidate single-class securitization trusts that are issued under these programs when our role as guarantor and master servicer provides us with the power to direct matters, such as the servicing of the 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 (for example, when the loan collateral is subject to a Federal Housing Administration guaranty and related Servicing Guide). When |
Consolidations and Transfers of
Consolidations and Transfers of Financial Assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 ® , 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 the amortized cost in the beneficial interests that we have purchased. Limited Partnerships We invest 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. We did not consolidate any VIEs that were not already consolidated as of December 31, 2019. However, as of December 31, 2020, we deconsolidated certain VIEs that were consolidated and had combined total assets of $1.2 billion in unpaid principal balance as of December 31, 2019. 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. 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, 2020, 2019 and 2018, the unpaid principal balance of portfolio securitizations was $745.2 billion, $278.6 billion and $228.4 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, 2020, the unpaid principal balance of retained interests was $1.7 billion and its related fair value was $2.9 billion. The unpaid principal balance of retained interests was $2.9 billion and its related fair value was $4.0 billion as of December 31, 2019. For the years ended December 31, 2020, 2019 and 2018, the principal, interest and other fees received on retained interests was $700 million, $595 million and $585 million, respectively. Portfolio Securitizations We consolidate the substantial majority of our single-class MBS trusts; therefore, these portfolio securitization transactions do not qualify for sale treatment. The assets and liabilities of consolidated trusts created via portfolio securitization transactions that do not qualify as sales are reported in our consolidated balance sheets. We recognize assets obtained and liabilities incurred in qualifying sales of portfolio securitizations at fair value. Proceeds from the initial sale of securities from portfolio securitizations were $666 million for year ended December 31, 2020. There were no proceeds from the initial sale of securities from portfolio securitizations for years ended December 31, 2019 and 2018, respectively. Our continuing involvement in the form of guaranty assets and guaranty liabilities with assets that were transferred into unconsolidated trusts is not material to our consolidated financial statements. 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, 2020 2019 (Dollars in millions) Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts: Assets: Trading securities: Fannie Mae $ 1,611 $ 2,543 Non-Fannie Mae 3,608 5,100 Total trading securities 5,219 7,643 Available-for-sale securities: Fannie Mae 1,168 1,524 Non-Fannie Mae 318 574 Total available-for-sale securities 1,486 2,098 Other assets 41 56 Other liabilities (67) (78) Net carrying amount $ 6,679 $ 9,719 Our maximum exposure to loss generally represents the greater of our carrying value 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. Our maximum exposure to loss related to unconsolidated securitization and resecuritization trusts, which includes but is not limited to our exposure to these Freddie Mac securities, was approximately $146 billion and $62 billion as of December 31, 2020 and 2019, respectively. Our total exposure as of December 31, 2019 to Freddie Mac securities backing Fannie Mae-issued REMICs may have been lower than the amount disclosed because a portion of the Freddie Mac securities backing these Fannie Mae-issued REMICs may have been backed 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. The total assets of our unconsolidated securitization and resecuritization trusts were approximately $180 billion and $130 billion as of December 31, 2020 and 2019, 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 $126 million and the related net carrying value was $121 million as of December 31, 2020. As of December 31, 2019, the maximum exposure to loss was $98 million and the related net carrying value was $79 million. The total assets of these limited partnership investments were $2.6 billion and $2.0 billion as of December 31, 2020 and 2019, 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 and MCAS SPVs. The maximum exposure to loss related to these unconsolidated SPVs was $11.4 billion and $9.5 billion as of December 31, 2020 and 2019, respectively. The total assets related to these unconsolidated SPVs were $11.4 billion and $9.5 billion as of December 31, 2020 and 2019, respectively. The unpaid principal balance of our multifamily loan portfolio wa s $373.7 billion as of December 31, 2020. 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. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2020 | |
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 amortized cost of HFI loans for which we have not elected the fair value option at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and accrued interest receivable, net. For purposes of our consolidated balance sheets, we present accrued interest receivable, net separately from the amortized cost of our loans held for investment. 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. For purposes of the single-family mortgage loan disclosures below, we display loans by class of financing receivable type. In the current period, we revised the financing receivable classes used for disclosure to consist of: “20- and 30-year or more, amortizing fixed-rate,” “15-year or less, amortizing fixed-rate,” “Adjustable-rate” and “Other.” The “Other” class primarily consists of reverse mortgage loans, interest-only loans, negative-amortizing loans and second liens. We believe the revised classifications are more aligned with how we assess and manage the credit risk of our loans. We have revised the presentation of certain loan disclosures for prior periods to conform with the revised current-period classes of financing receivables. The following table displays the carrying value of our mortgage loans and allowance for loan losses. As of December 31, 2020 2019 (Dollars in millions) Single-family $ 3,216,146 $ 2,972,361 Multifamily 373,722 327,593 Total unpaid principal balance of mortgage loans 3,589,868 3,299,954 Cost basis and fair value adjustments, net 74,576 43,224 Allowance for loan losses for HFI loans (10,552) (9,016) Total mortgage loans (1) $ 3,653,892 $ 3,334,162 (1) Excludes $9.8 billion and $8.4 billion of accrued interest receivable, net of allowance as of December 31, 2020 and 2019, respectively. The following tables display information about our redesignation of loans, and the sales of mortgage loans during the period. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Single family loans redesignated from HFI to HFS: Amortized cost $ 8,309 $ 18,245 $ 23,494 Lower of cost or fair value adjustment at time of redesignation (1) (291) (995) (1,478) Allowance reversed at time of redesignation 963 2,484 3,385 Single family loans redesignated from HFS to HFI: Amortized cost $ 144 $ 28 $ 46 Allowance established at time of redesignation (15) (1) (2) Single-family loans sold: Unpaid principal balance $ 9,519 $ 19,737 $ 21,918 Realized gains, net 831 1,238 444 (1) Consists of the write-off against the allowance at the time of redesignation. The amortized cost of single-family mortgage loans for which formal foreclosure proceedings were in process was $5.0 billion and $7.6 billion as of December 31, 2020 and 2019, 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. In addition, in response to the COVID-19 pandemic, we have prohibited our servicers from completing foreclosures on our single-family loans through March 31, 2021, except in the case of vacant or abandoned properties. Aging Analysis The following tables display an aging analysis of the total amortized cost of our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option. Pursuant to the CARES Act, for purposes of reporting to the credit bureaus, servicers must report a borrower receiving a COVID-19-related payment accommodation during the covered period, such as a forbearance plan or loan modification, as current if the borrower was current prior to receiving the accommodation and the borrower makes all required payments in accordance with the accommodation. For purposes of our disclosures regarding delinquency status, we report loans receiving COVID-19-related payment forbearance as delinquent according to the contractual terms of the loan. The increase in loans classified as delinquent as of December 31, 2020 compared with December 31, 2019 was primarily attributable to the economic dislocation caused by the COVID-19 pandemic. As of December 31, 2020 30 - 59 Days 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Loans 90 Days or More Delinquent and Accruing Interest Nonaccrual Loans with No Allowance (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 24,928 $ 9,414 $ 88,276 $ 122,618 $ 2,619,585 $ 2,742,203 $ 68,526 $ 6,028 15-year or less, amortizing fixed-rate 1,987 601 5,028 7,616 449,443 457,059 4,292 240 Adjustable-rate 268 97 1,143 1,508 29,933 31,441 907 114 Other (2) 1,150 458 5,037 6,645 47,937 54,582 2,861 771 Total single-family 28,333 10,570 99,484 138,387 3,146,898 3,285,285 76,586 7,153 Multifamily (3) 1,140 N/A 3,688 4,828 372,598 377,426 610 302 Total $ 29,473 $ 10,570 $ 103,172 $ 143,215 $ 3,519,496 $ 3,662,711 $ 77,196 $ 7,455 As of December 31, 2019 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Loans 90 Days or More Delinquent and Accruing Interest (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 26,882 $ 7,126 $ 13,082 $ 47,090 $ 2,470,457 $ 2,517,547 $ 28 15-year or less, amortizing fixed-rate 1,616 286 445 2,347 371,740 374,087 — Adjustable-rate 412 85 167 664 44,244 44,908 — Other (2) 2,323 829 1,891 5,043 64,726 69,769 136 Total single-family 31,233 8,326 15,585 55,144 2,951,167 3,006,311 164 Multifamily (3) 7 N/A 115 122 330,496 330,618 — Total $ 31,240 $ 8,326 $ 15,700 $ 55,266 $ 3,281,663 $ 3,336,929 $ 164 (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) Reverse mortgage loans included in “Other” are not aged due to their nature 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 amortized cost in our single-family HFI loans by class, year of origination and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower’s equity in the home decreases, which may negatively affect the borrower’s ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan. As of December 31, 2020, by Year of Origination (1) 2020 2019 2018 2017 2016 Prior Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) 20- and 30-year or more, amortizing fixed-rate: Less than or equal to 80% $ 794,156 $ 233,994 $ 135,849 $ 183,315 $ 221,172 $ 775,636 $ 2,344,122 Greater than 80% and less than or equal to 90% 157,500 85,227 23,440 5,270 1,592 5,958 278,987 Greater than 90% and less than or equal to 100% 109,743 4,186 820 250 124 1,994 117,117 Greater than 100% 28 7 28 77 81 1,756 1,977 Total 20 and 30-year or more, amortizing fixed-rate 1,061,427 323,414 160,137 188,912 222,969 785,344 2,742,203 15-year or less, amortizing fixed-rate: Less than or equal to 80% 181,418 41,374 15,768 31,497 46,088 132,596 448,741 Greater than 80% and less than or equal to 90% 6,105 811 35 14 8 20 6,993 Greater than 90% and less than or equal to 100% 1,274 9 3 4 3 10 1,303 Greater than 100% — — 3 3 3 13 22 Total 15-year or less, amortizing fixed-rate 188,797 42,194 15,809 31,518 46,102 132,639 457,059 Adjustable-rate: Less than or equal to 80% 2,935 1,839 2,412 4,765 2,678 16,248 30,877 Greater than 80% and less than or equal to 90% 234 152 79 19 5 12 501 Greater than 90% and less than or equal to 100% 56 3 1 — — 2 62 Greater than 100% — — — — — 1 1 Total adjustable-rate 3,225 1,994 2,492 4,784 2,683 16,263 31,441 Other: Less than or equal to 80% — 41 328 811 1,028 36,216 38,424 Greater than 80% and less than or equal to 90% — 2 20 43 30 1,298 1,393 Greater than 90% and less than or equal to 100% — 2 8 16 10 602 638 Greater than 100% — — 4 8 9 631 652 Total other — 45 360 878 1,077 38,747 41,107 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 Total for all classes by LTV ratio: (2) Less than or equal to 80% $ 978,509 $ 277,248 $ 154,357 $ 220,388 $ 270,966 $ 960,696 $ 2,862,164 Greater than 80% and less than or equal to 90% 163,839 86,192 23,574 5,346 1,635 7,288 287,874 Greater than 90% and less than or equal to 100% 111,073 4,200 832 270 137 2,608 119,120 Greater than 100% 28 7 35 88 93 2,401 2,652 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 As of December 31, 2019 (1) 20- and 30-Year or More, Amortizing Fixed-Rate 15-Year or Less, Amortizing Fixed-Rate Adjustable-Rate Other Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) Less than or equal to 80% $ 2,145,018 $ 368,181 $ 43,415 $ 47,005 $ 2,603,619 Greater than 80% and less than or equal to 90% 237,623 4,556 1,275 2,872 246,326 Greater than 90% and less than or equal to 100% 130,152 1,284 215 1,398 133,049 Greater than 100% 4,754 66 3 1,365 6,188 Total $ 2,517,547 $ 374,087 $ 44,908 $ 52,640 $ 2,989,182 (1) Excludes $13.5 billion and $17.1 billion as of December 31, 2020 and 2019, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, which represents 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 amortized cost of our multifamily HFI loans by year of origination and credit-risk rating, excluding loans for which we have elected the fair value option. Property rental income and property valuations are key inputs to our internally assigned credit risk ratings. As of December 31, 2020, by Year of Origination 2020 2019 2018 2017 2016 Prior Total (Dollars in millions) Internally assigned credit risk rating: Non-classified (1) $ 71,977 $ 68,296 $ 62,087 $ 50,907 $ 43,174 $ 70,933 $ 367,374 Classified (2) 37 1,041 1,529 2,616 1,579 3,250 10,052 Total $ 72,014 $ 69,337 $ 63,616 $ 53,523 $ 44,753 $ 74,183 $ 377,426 As of December 31, 2019 (Dollars in millions) Credit risk profile by internally assigned grade: Non-classified (1) $ 323,773 Classified (2) 6,845 Total $ 330,618 (1) A loan categorized as “Non-classified” is current or adequately protected by the current financial strength and debt service capability of the borrower. 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, 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. However, our current TDR accounting described herein is temporarily impacted by our election to account for certain eligible loss mitigation activities under the COVID-19 Relief granted pursuant to the CARES Act, as extended by the Consolidated Appropriations Act of 2021. See “Note 1, Summary of Significant Accounting Policies” for more information on the relief from TDR accounting and disclosure requirements. The substantial majority of the loan modifications accounted for as a TDR result in term extensions, interest rate reductions or a combination of both. The average term extension of a single-family modified loan was 163 months, 162 months and 109 months for the years ended December 31, 2020, 2019 and 2018, respectively. The average interest rate reduction was 0.37, 0.13 and 0.21 percentage points for the years ended December 31, 2020, 2019 and 2018, respectively. The following table displays the number of loans and amortized cost of loans classified as a TDR during the period. For the Year Ended December 31, 2020 2019 2018 Number of Loans Amortized Cost Number of Loans Amortized Cost Number of Loans Amortized Cost (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed rate 29,938 $ 5,125 43,283 $ 7,140 79,397 $ 12,485 15-year or less, amortizing fixed rate 2,956 257 4,762 424 8,953 823 Adjustable-rate 467 72 813 123 844 129 Other 1,688 211 3,001 403 6,618 916 Total single-family 35,049 5,665 51,859 8,090 95,812 14,353 Multifamily — — 11 56 14 74 Total TDRs 35,049 $ 5,665 51,870 $ 8,146 95,826 $ 14,427 For loans that defaulted in the period presented and that were classified as a TDR in the twelve months prior to the default, the following table displays the number of loans and the amortized cost of these loans at the time of payment default. For 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, 2020 2019 2018 Number of Loans Amortized Cost Number of Loans Amortized Cost Number of Loans Amortized Cost (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed rate 14,127 $ 2,578 15,189 $ 2,366 18,344 $ 2,675 15-year or less, amortizing fixed rate 148 10 594 45 206 15 Adjustable-rate 16 2 91 14 63 8 Other 1,291 208 1,975 315 3,129 523 Total single-family 15,582 2,798 17,849 2,740 21,742 3,221 Multifamily 4 16 2 18 2 3 Total TDRs that subsequently defaulted 15,586 $ 2,814 17,851 $ 2,758 21,744 $ 3,224 Nonaccrual Loans The table below displays the forgone interest and the accrued interest receivable written off through the reversal of interest income for nonaccrual loans. For updates to our application of our nonaccrual policy for loans negatively impacted by the COVID-19 pandemic, see “Note 1, Summary of Significant Accounting Policies.” For the Year Ended December 31, 2020 (Dollars in millions) Single-family: Interest income forgone (1) $ 739 Accrued interest receivable written off through the reversal of interest income 206 Multifamily: Interest income forgone (1) $ 19 Accrued interest receivable written off through the reversal of interest income 19 (1) For loans on nonaccrual status held as of period end, represents the amount of interest income we did not recognize but would have recognized if the loans had performed in accordance with their original contractual terms. The table below includes the amortized cost of and interest income recognized on our HFI single-family and multifamily loans on nonaccrual status by class, excluding loans for which we have elected the fair value option. As of December 31, For the Year Ended December 31, 2020 2020 2019 Amortized Cost Total Interest Income Recognized (1) (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 22,907 $ 23,427 $ 461 15-year or less, amortizing fixed-rate 853 858 15 Adjustable-rate 270 288 5 Other 2,475 2,973 43 Total single-family 26,505 27,546 524 Multifamily 2,069 435 59 Total nonaccrual loans $ 28,574 $ 27,981 $ 583 (1) Single-family interest income recognized includes amounts accrued while the loans were performing, including the amortization of any deferred cost basis adjustments, as well as payments received on nonaccrual loans, for nonaccrual loans held as of period end. Multifamily interest income recognized includes amounts accrued while the loans were performing and the amortization of any deferred cost basis adjustments, for nonaccrual loans held as of period end. Individually Impaired Loans Prior to the adoption of the CECL standard, we recorded a specific loss reserve for individually impaired loans and a collective loss reserve for all other 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 amortized cost and related allowance for loan losses as of December 31, 2019 and average amortized cost, total interest income recognized and interest income recognized on a cash basis for individually impaired loans for the years ended December 31, 2019 and 2018. As of December 31, 2019 Unpaid Principal Balance Total Amortized Cost Related Allowance for Loan Losses (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: 20- and 30-year or more, amortizing fixed-rate $ 63,091 $ 61,033 $ (5,851) 15-year or less, amortizing fixed-rate 954 960 (24) Adjustable-rate 156 157 (9) Other 15,181 14,078 (2,291) Total single-family 79,382 76,228 (8,175) Multifamily 314 315 (45) Total individually impaired loans with related allowance recorded 79,696 76,543 (8,220) With no related allowance recorded: (1) Single-family: 20- and 30-year or more, amortizing fixed-rate 18,372 17,578 — 15-year or less, amortizing fixed-rate 410 407 — Adjustable-rate 265 265 — Other 3,014 2,718 — Total single-family 22,061 20,968 — Multifamily 363 365 — Total individually impaired loans with no related allowance recorded 22,424 21,333 — Total individually impaired loans (2) $ 102,120 $ 97,876 $ (8,220) (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 an amortized cost of $96.9 billion as of December 31, 2019. Includes multifamily loans restructured in a TDR with an amortized cost of $102 million as of December 31, 2019. For the Year Ended December 31, 2019 2018 Average Amortized Cost Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Amortized Cost Total Interest Income Recognized Interest Income Recognized on a Cash Basis (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: 20- and 30-year or more, amortizing fixed-rate $ 69,731 $ 2,908 $ 260 $ 83,498 $ 3,463 $ 372 15-year or less, amortizing fixed-rate 1,176 40 3 1,410 53 8 Adjustable-rate 141 6 1 154 6 1 Other 17,125 705 51 25,170 1,039 76 Total single-family 88,173 3,659 315 110,232 4,561 457 Multifamily 287 7 — 235 3 — Total individually impaired loans with related allowance recorded 88,460 3,666 315 110,467 4,564 457 With no related allowance recorded: (1) Single-family: 20- and 30-year or more, amortizing fixed-rate 15,569 977 143 14,347 938 113 15-year or less, amortizing fixed-rate 339 15 4 192 10 4 Adjustable-rate 331 15 2 466 19 2 Other 2,836 212 20 3,489 278 22 Total single-family 19,075 1,219 169 18,494 1,245 141 Multifamily 375 31 — 336 14 — Total individually impaired loans with no related allowance recorded 19,450 1,250 169 18,830 1,259 141 Total individually impaired loans $ 107,910 $ 4,916 $ 484 $ 129,297 $ 5,823 $ 598 (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. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
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. We record write-offs as a reduction to our allowance for loan losses at the point of foreclosure, completion of a short sale, upon the redesignation of nonperforming and reperforming loans from HFI to HFS or when a loan is determined to be uncollectible. See “Note 1, Summary of Significant Accounting Policies” for additional information and accounting policies on loans held for sale and changes resulting from our adoption of the CECL standard. The following table displays changes in our allowance for single-family loans, multifamily loans and total allowance for loan losses, including the transition impact of adopting the CECL standard. The provision for loan losses excludes provision for accrued interest receivable losses, guaranty loss reserves and credit losses on AFS debt securities. Cumulatively, these expenses are recognized as “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income. For the Year Ended December 31, 2020 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (8,759) Transition impact of the adoption of the CECL standard (1,229) Benefit for loan losses 127 Write-offs 457 Recoveries (93) Other 153 Ending Balance $ (9,344) Multifamily allowance for loan losses: Beginning balance $ (257) Transition impact of the adoption of the CECL standard (493) Provision for loan losses (593) Write-offs 136 Recoveries (1) Ending Balance $ (1,208) Total allowance for loan losses: Beginning balance $ (9,016) Transition impact of the adoption of the CECL standard (1,722) Provision for loan losses (466) Write-offs 593 Recoveries (94) Other 153 Ending Balance $ (10,552) Our benefit or provision for loan losses can vary substantially from period to period based on a number of factors, such as changes in actual and forecasted home prices or property valuations, fluctuations in actual and forecasted interest rates, borrower payment behavior, events such as natural disasters or pandemics, the types and volume of our loss mitigation activities, including forbearance and loan modifications, the volume of foreclosures completed, and the redesignation of loans from HFI to HFS. Our benefit or provision can also be impacted by updates to the models, assumptions, and data used in determining our allowance for loan losses. As described below, during 2020, our benefit or provision for loan losses and our loss reserves have been significantly affected by our estimates of the impact of the COVID-19 pandemic, which require significant management judgment. Changes in our estimates of borrowers that will ultimately receive forbearance and even more significantly, the loss mitigation outcomes of affected borrowers after the forbearance period ends, remain uncertain and can affect the amount of benefit or provision for loan losses we recognize. The primary factors that contributed to our single-family benefit for loan losses in 2020 were: • Benefit from actual and expected home price growth. In the first quarter of 2020, we significantly reduced our expectations for home price growth to near-zero for 2020. However, the negative impact from the first quarter of 2020 was more than offset by a robust increase in actual home price growth through the remainder of 2020 despite the COVID-19 pandemic. In addition, we also expect more moderate home price growth for 2021. Higher home prices decrease the likelihood that loans will default and decrease the amount of credit loss on loans that do default, which impacts our estimate of losses and ultimately decreases our loss reserves and provision for loan losses. • Benefit from lower actual and projected interest rates. For much of 2020, we continued to be in a historically low interest rate environment, which we expect to continue in 2021. As mortgage interest rates decline, we expect an increase in future prepayments on single-family loans, including modified loans. Higher expected prepayments shorten the expected lives of modified loans, which decreases the expected impairment relating to term and interest-rate concessions provided on these loans and results in a benefit for loan losses. • Benefit from the redesignation of certain reperforming single-family loans from HFI to HFS. In the third quarter of 2020, we resumed sales of reperforming loans after our suspension of new loan sales in the second quarter of 2020. As a result, we redesignated certain reperforming single-family loans from HFI to HFS in the second half of 2020, as we no longer intend to hold them for the foreseeable future or to maturity. Upon redesignation of these loans, we recorded the loans at the lower of cost or fair value with a write-off against the allowance for loan losses. Amounts recorded in the allowance related to these loans exceeded the amounts written off, resulting in a benefit. These benefits were substantially offset by the impact of the COVID-19 pandemic, including increased delinquencies, as described below, which resulted in a net benefit for the year. • Provision from changes in actual and expected loan delinquencies and change in assumptions regarding COVID-19 forbearance, which includes adjustments to modeled results. The economic dislocation caused by the COVID-19 pandemic was a significant driver of credit-related expenses during 2020, with the majority of the impact recognized in the first quarter of 2020. Estimating expected loan losses as a result of the COVID-19 pandemic continues to require significant management judgment regarding a number of matters, including our expectations surrounding the length of time that loans remain in forbearance and the type and extent of loss mitigation that may be needed when loans exit a COVID-19-related forbearance, political uncertainty and the high degree of uncertainty regarding the future course of the pandemic, including new strains of the virus and its effect on the economy. As a result, we believe the model used to estimate single-family loan losses does not capture the entirety of losses we expect to incur relating to COVID-19. Accordingly, management used its judgment to significantly increase the loss projections developed by our credit loss model in the first quarter of 2020. The model has consumed data from the initial quarters of the pandemic, including loan delinquencies, and updated credit profile data for loans in forbearance. As more of this data was consumed by our credit loss model throughout the year, we have reduced the non-modeled adjustment initially recorded in the first quarter of 2020. Management continued to apply its judgment and supplement model results as of December 31, 2020, taking into account the continued high degree of uncertainty regarding the future impact of the pandemic and its effect on the economy. In determining our allowance for loan losses as of December 31, 2020, we revised downward our estimate of the amount of single-family borrowers who would ultimately receive forbearance due to a COVID-19-related financial hardship from our March 31, 2020 estimate based on recent economic data and actual forbearance activity observed during the last nine months of 2020. The primary factor that contributed to a decrease in single-family write-offs in 2020 compared with 2019 was a reduction in the volume of reperforming loans redesignated from HFI to HFS. Our multifamily provision for loan losses in 2020 was driven by higher expected losses as a result of the economic dislocation caused by the COVID-19 pandemic and heightened economic uncertainty, driven by elevated unemployment, which we expect will result in a decrease in multifamily property income and property values. In addition, the multifamily provision for loan losses includes increased expected loan losses on seniors housing loans, as these properties have been disproportionately impacted by the pandemic. Consistent with the single-family discussion above, we believe the model we use to estimate multifamily loan losses does not capture the entirety of losses we expect to incur relating to COVID-19. Accordingly, management used its judgment to increase the loss projections developed by our credit loss model. The model has consumed data from the initial quarters of the pandemic, but we continue to apply management judgment and supplement model results as of December 31, 2020, taking into account the continued high degree of uncertainty that remains relating to the impact of the pandemic. The primary factor that contributed to increased multifamily write-offs in 2020 compared with 2019 was a write down in the value of a seniors housing portfolio during the third quarter of 2020 following its default on its forbearance agreement. The following tables display changes in single-family and multifamily allowance for loan losses for the years ended 2019 and 2018 and the amortized cost in our HFI loans by impairment or allowance methodology and portfolio segment as of each year-end prior to the adoption of the CECL standard. For a description of our previous allowance and impairment methodology refer to “Note 1, Summary of Significant Accounting Policies.” For the Year Ended December 31, 2019 2018 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (13,969) $ (18,849) Benefit for loan losses 3,988 2,990 Write-offs 1,299 2,148 Recoveries (71) (240) Other (6) (18) Ending Balance $ (8,759) $ (13,969) Multifamily allowance for loan losses: Beginning balance $ (234) $ (235) Provision for loan losses (27) (3) Write-offs 8 4 Recoveries (4) — Ending Balance $ (257) $ (234) Total allowance for loan losses: Beginning balance $ (14,203) $ (19,084) Benefit for loan losses 3,961 2,987 Write-offs 1,307 2,152 Recoveries (75) (240) Other (6) (18) Ending Balance $ (9,016) $ (14,203) As of December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175) $ (45) $ (8,220) Collectively reserved loans (584) (212) (796) Total allowance for loan losses $ (8,759) $ (257) $ (9,016) Amortized cost in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 Collectively reserved loans 2,909,115 329,938 3,239,053 Total amortized cost in loans $ 3,006,311 $ 330,618 $ 3,336,929 |
Investments in Securities
Investments in Securities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (Dollars in millions) Mortgage-related securities: Fannie Mae $ 2,404 $ 3,424 Other agency (1) 3,451 4,490 Private-label and other mortgage securities 158 629 Total mortgage-related securities (includes $793 million and $896 million, respectively, related to consolidated trusts) 6,013 8,543 Non-mortgage-related securities: U.S. Treasury securities 130,456 39,501 Other securities 73 79 Total non-mortgage-related securities 130,529 39,580 Total trading securities $ 136,542 $ 48,123 (1) Consists of Freddie Mac and Ginnie Mae mortgage-related securities. Our investment in U.S. Treasury securities increased as of December 31, 2020, compared with December 31, 2019 primarily driven by proceeds from significantly higher debt issuances during 2020 as well as proceeds from loan payoffs. The following table displays information about our net trading gains. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net trading gains $ 513 $ 322 $ 126 Net trading gains recognized in the period related to securities still held at period end 252 238 55 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 income (loss)” and we recognize realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income. We define the amortized cost basis of our AFS securities as unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments. Pursuant to the CECL standard, we record an allowance for credit losses for AFS securities that reflects the impairment for credit losses, which are limited to the amount that fair value is less than the amortized cost. Impairment due to non-credit losses are recorded as unrealized losses within other comprehensive income. The following tables display the amortized cost, allowance for credit losses, gross unrealized gains and losses in accumulated other comprehensive income (loss) (“AOCI”), and fair value by major security type for AFS securities. As of December 31, 2020 Total Amortized Cost (1) Allowance for Credit Losses Gross Unrealized Gains in AOCI Gross Unrealized Losses in AOCI Total Fair Value (1) (Dollars in millions) Fannie Mae $ 1,094 $ — $ 86 $ (12) $ 1,168 Other agency (2) 59 — 6 — 65 Alt-A and subprime private-label securities 4 — 2 — 6 Mortgage revenue bonds 211 (3) 8 — 216 Other mortgage-related securities 238 — 4 — 242 Total $ 1,606 $ (3) $ 106 $ (12) $ 1,697 As of December 31, 2019 Total Amortized Cost (1)(3) Gross Unrealized Gains Gross Unrealized Losses Total Fair Value (1) (Dollars in millions) Fannie Mae $ 1,445 $ 85 $ (10) $ 1,520 Other agency (2) 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 s (1) We exclude from amortized cost and fair value accrued interest of $6 million and $10 million as of December 31, 2020 and December 31, 2019, respectively, which we record in “Other assets” in our consolidated balance sheets. (2) Other agency securities consist of securities issued by Freddie Mac and Ginnie Mae. (3) Prior to our adoption of the CECL standard, total amortized cost represented the unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as temporary impairments recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income. Fannie Mae and Other Agency Securities Our Fannie Mae and other agency AFS securities consist of securities issued by us, Freddie Mac, or Ginnie Mae. The principal and interest on these securities are guaranteed by the issuing agency. We believe that the guaranty provided by the issuing agency, the support provided to the agencies by the U.S. government, the importance of the agencies to the liquidity and stability in the secondary mortgage market, and the long history of zero credit losses on agency mortgage-related securities are all indicators that there are currently no credit losses on these securities, even if the security is in an unrealized loss position. In addition, we generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we do not recognize an allowance for credit losses on agency mortgage-related securities. Non-Agency Mortgage-Related Securities As of December 31, 2020, substantially all of our non-agency mortgage-related securities were in an unrealized gain position. As a result, we have not recognized an allowance for credit losses on these 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, excluding allowance for credit losses. As of December 31, 2020 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses in AOCI Fair Value Gross Unrealized Losses in AOCI Fair Value (Dollars in millions) Fannie Mae $ (1) $ 40 $ (11) $ 94 Mortgage revenue bonds — — — — Other mortgage-related securities — — — — Total $ (1) $ 40 $ (11) $ 94 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 The following table displays the gross realized gains and proceeds on sales of AFS securities. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Gross realized gains $ 57 $ 265 $ 375 Total proceeds (excludes initial sale of securities from new portfolio securitizations) 361 537 662 The following tables display net unrealized gains on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax. As of December 31, 2020 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses $ 74 Other 42 Accumulated other comprehensive income $ 116 As of December 31, 2019 December 31, 2018 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded other-than-temporary impairment (“OTTI”) $ 97 $ 52 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 Other 34 46 Accumulated other comprehensive income $ 131 $ 322 Prior to our adoption of the CECL standard on January 1, 2020, we evaluated AFS securities for other-than-temporary impairment. The balance of the unrealized credit-loss component of AFS securities held by us and recognized in our consolidated statements of operations and comprehensive income was $36 million as of December 31, 2019. 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, 2020 Total Carrying Amount (1) Total Fair Value One Year or Less After One Year Through Five Years After Five Years Through Ten Years After Ten Years Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value (Dollars in millions) Fannie Mae $ 1,094 $ 1,168 $ — $ — $ 5 $ 6 $ 96 $ 108 $ 993 $ 1,054 Other agency 59 65 — — — — 9 10 50 55 Alt-A and subprime private-label securities 4 6 — — — — 3 3 1 3 Mortgage revenue bonds 208 216 1 1 27 28 19 20 161 167 Other mortgage-related securities 238 242 — — — — 19 21 219 221 Total $ 1,603 $ 1,697 $ 1 $ 1 $ 32 $ 34 $ 146 $ 162 $ 1,424 $ 1,500 Weighted-average yield (1) 5.27 % 5.90 % 6.54 % 6.11 % 5.16 % |
Financial Guarantees
Financial Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
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 maximum remaining contractual term of our guarantees is 32 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. With our adoption of the CECL standard on January 1, 2020, we measure our guaranty reserve for estimated credit losses for off-balance sheet exposures over the contractual period for which they are exposed to the credit risk, unless that obligation is unconditionally cancellable by the issuer. 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. When we began issuing UMBS 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 Freddie Mac securities backing unconsolidated Fannie Mae-issued structured securities of approximately $137.3 billion and $50.1 billion as of December 31, 2020 and December 31, 2019, respectively. 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, 2020 2019 Maximum Exposure Guaranty Obligation Maximum Recovery (1) Maximum Exposure Guaranty Obligation Maximum Recovery (1) (Dollars in millions) Unconsolidated Fannie Mae MBS $ 4,424 $ 18 $ 4,226 $ 5,801 $ 26 $ 5,545 Other guaranty arrangements (2) 11,828 109 2,438 12,670 128 2,553 Total $ 16,252 $ 127 $ 6,664 $ 18,471 $ 154 $ 8,098 (1) Recoverability of such credit enhancements and recourse is subject to, among other factors, the ability of our mortgage insurers and the U.S. government, as a financial guarantor, 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, 2020 | |
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, 2020 2019 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 12,173 0.18 26,662 1.56 (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 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, 2020 2019 Maturities Outstanding (1) Weighted- Average Interest Rate (2) Maturities Outstanding (1) Weighted- Average Interest Rate (2) (Dollars in millions) Senior fixed: Benchmark notes and bonds 2021 - 2030 $ 106,691 2.03 % 2020 - 2030 $ 86,114 2.66 % Medium-term notes (3) 2021 - 2030 48,524 0.63 2020 - 2026 32,590 1.57 Other (4) 2021 - 2038 6,701 3.90 2020 - 2038 5,254 5.01 Total senior fixed 161,916 1.69 123,958 2.47 Senior floating: Medium-term notes (3) 2021 - 2022 100,089 0.35 2020 - 2021 9,774 1.66 Connecticut Avenue Securities (5) 2023 - 2031 14,978 4.16 2023 - 2031 21,424 5.61 Other (6) 2037 416 7.75 2020 - 2037 398 6.27 Total senior floating 115,483 0.86 31,596 4.40 Secured borrowings (7) - — — 2021 - 2022 31 2.31 Total long-term debt of Fannie Mae (8) 277,399 1.34 155,585 2.86 Debt of consolidated trusts 2021 - 2060 3,646,164 1.88 2020 - 2059 3,285,139 2.78 Total long-term debt $ 3,923,563 1.85 % $ 3,440,724 2.78 % (1) Includes the effects of fair value adjustments. (2) Includes the effects of discounts, premiums and other cost basis adjustments. (3) Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt. (4) Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds. (5) 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. (6) Consists of structured debt instruments that are reported at fair value. (7) 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. (8) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments in a net discount position of $392 million and $2 million as of December 31, 2020 and 2019, 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 a foreign currency. 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 issued prior to November 2018, which are 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. 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, 2020 and 2019, the face amount of our debt securities of Fannie Mae was $290.0 billion and $182.2 billion, respectively. As of December 31, 2020, we had zero-coupon debt with a face amount of $5.1 billion, which had an effective interest rate of 0.50%. 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%. 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, 2020 and 2019 included $57.5 billion and $38.5 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, 2020 by year of maturity for each of the years 2021 through 2025 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 (Dollars in millions) 2021 $ 66,631 $ 92,454 2022 65,593 82,824 2023 30,946 20,814 2024 19,762 14,881 2025 39,593 21,985 Thereafter 54,874 44,441 Total long-term debt of Fannie Mae (1) 277,399 277,399 Debt of consolidated trusts (2) 3,646,164 3,646,164 Total long-term debt $ 3,923,563 $ 3,923,563 (1) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 As of December 31, 2019 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 $ 88,361 $ — $ 11,461 $ (595) $ 41,052 $ — $ 29,178 $ (970) Receive-fixed 92,315 233 33,919 (123) 73,579 816 26,382 (62) Basis 250 192 — — 273 149 — — Foreign currency 237 57 239 (58) 229 39 232 (65) Swaptions: Pay-fixed 5,530 37 2,025 (118) 4,600 18 6,375 (219) Receive-fixed 3,355 346 700 (16) 2,875 106 4,600 (232) Futures (1) 64,398 — — — 20,507 — — — Total gross risk management derivatives 254,446 865 48,344 (910) 143,115 1,128 66,767 (1,548) Accrued interest receivable (payable) — 97 — (105) — 226 — (250) Netting adjustment (2) — (905) — 995 — (1,288) — 1,694 Total net risk management derivatives $ 254,446 $ 57 $ 48,344 $ (20) $ 143,115 $ 66 $ 66,767 $ (104) Mortgage commitment derivatives: Mortgage commitments to purchase whole loans $ 35,292 $ 145 $ 51 $ — $ 7,115 $ 15 $ 1,787 $ (1) Forward contracts to purchase mortgage-related securities 144,215 844 607 — 55,531 137 9,560 (28) Forward contracts to sell mortgage-related securities 199 — 227,828 (1,426) 9,282 13 109,066 (277) Total mortgage commitment derivatives 179,706 989 228,486 (1,426) 71,928 165 120,413 (306) Credit enhancement derivatives 16,829 179 11,368 (49) 28,432 40 9,486 (25) Derivatives at fair value $ 450,981 $ 1,225 $ 288,198 $ (1,495) $ 243,475 $ 271 $ 196,666 $ (435) (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 $658 million and $1.0 billion as of December 31, 2020 and 2019, respectively. Cash collateral received was $568 million and $635 million as of December 31, 2020 and 2019, 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, 2020 2019 2018 (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ (2,764) $ (3,964) $ 2,940 Receive-fixed 2,226 3,685 (1,834) Basis 43 46 (21) Foreign currency 23 24 (51) Swaptions: Pay-fixed (146) (380) 100 Receive-fixed 595 117 (39) Futures (76) 273 38 Net contractual interest expense on interest-rate swaps (261) (833) (1,061) Total risk management derivatives fair value gains (losses), net (360) (1,032) 72 Mortgage commitment derivatives fair value gains (losses), net (2,654) (1,043) 324 Credit enhancement derivatives fair value gains (losses), net 182 (35) 26 Total derivatives fair value gains (losses), net $ (2,832) $ (2,110) $ 422 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, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (Dollars in millions) Current income tax benefit (provision) $ (3,803) $ (2,089) $ 114 Deferred income tax benefit (provision) (1) 729 (1,328) (4,254) Provision for federal income taxes $ (3,074) $ (3,417) $ (4,140) (1) Amount excludes the current income tax effect of items recognized directly in “Total Fannie Mae stockholders equity.” The following table displays the difference between the statutory corporate tax rate and our effective tax rate. For the Year Ended December 31, 2020 2019 2018 Statutory corporate tax rate 21.0 % 21.0 % 21.0 % Equity investments in affordable housing projects (0.1) (0.2) (0.6) Change in unrecognized tax benefits — (1.2) — Other (0.2) (0.2) 0.2 Effective tax rate 20.7 % 19.4 % 20.6 % 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 2020, 2019, and 2018 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. 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, 2020, 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, 2020 2019 (Dollars in millions) Deferred tax assets: Mortgage and mortgage-related assets $ 8,241 $ 9,290 Allowance for loan losses and basis in acquired property, net 1,798 1,240 Debt and derivative instruments 526 627 Partnership and other equity investments 129 152 Interest-only securities 2,561 788 Total deferred tax assets 13,255 12,097 Deferred tax liabilities: Unrealized gains on AFS securities, net 20 26 Other, net 288 161 Total deferred tax liabilities 308 187 Deferred tax assets, net $ 12,947 $ 11,910 Unrecognized Tax Benefits The following table displays the changes in our unrecognized tax benefits. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Unrecognized tax benefits as of January 1 $ — $ 416 $ 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 (1) Amount excludes tax credits of $151 million as of December 31, 2018. We had no unrecognized tax benefits as of December 31, 2020 and December 31, 2019. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We have two reportable business segments, which are based on the type of business activities each perform: Single-Family and Multifamily. 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 to third parties. • 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 enhancements. 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 to third parties. • 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 enhancements. 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 the 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, 2020 2019 (Dollars in millions) Single-Family $ 3,569,130 $ 3,149,212 Multifamily 416,619 354,107 Total assets $ 3,985,749 $ 3,503,319 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, 2020 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 21,502 $ 3,364 $ 24,866 Fee and other income (2) 368 94 462 Net revenues 21,870 3,458 25,328 Investment gains, net (3) 728 179 907 Fair value gains (losses), net (4) (2,539) 38 (2,501) Administrative expenses (2,559) (509) (3,068) Credit-related expense: (5) Provision for credit losses (75) (603) (678) Foreclosed property expense (157) (20) (177) Total credit-related expense (232) (623) (855) TCCA fees (6) (2,673) — (2,673) Credit enhancement expense (7) (1,141) (220) (1,361) Change in expected credit enhancement recoveries (8) 89 144 233 Other expenses, net (1,055) (76) (1,131) Income before federal income taxes 12,488 2,391 14,879 Provision for federal income taxes (2,607) (467) (3,074) Net income $ 9,881 $ 1,924 $ 11,805 For the Year Ended December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,013 $ 3,280 $ 21,293 Fee and other income (2) 453 113 566 Net revenues 18,466 3,393 21,859 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) Credit enhancement expense (7) (927) (207) (1,134) Change in expected credit enhancement recoveries (8) — — — Other expenses, net (734) (11) (745) 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 $ 3,111 $ 21,273 Fee and other income (2) 450 105 555 Net revenues 18,612 3,216 21,828 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) Credit enhancement expense (7) (514) (165) (679) Change in expected credit enhancement recoveries (8) — — — Other income (expenses), net (498) 26 (472) 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 (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 from which is remitted to Treasury and not retained by us. Also includes yield maintenance fees we recognized on the prepayment of multifamily loans. Prior periods have been restated to conform to current-period presentation. See “Note 1, Summary of Significant Accounting Policies” for more information about our change in presentation. (2) Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services. Multifamily fee and other income consists of fees associated with Multifamily business activities. (3) Single-family investment gains and losses primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains and losses primarily consists of gains and losses on resecuritization activity. (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, fair value option debt, 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. The presentation of our credit-related income or expense as of December 31, 2019 and 2018 represents amounts recognized prior to our transition to the lifetime loss model prescribed by the CECL standard. (6) Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA. (7) Single-family credit enhancement expense consists of costs associated with our freestanding credit enhancements, which include primarily costs associated with our CIRT, CAS and EPMI programs. Multifamily credit enhancement expense primarily consists of costs associated with our MCIRT and MCAS programs as well as amortization expense for certain lender risk-sharing programs. Excludes CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. (8) Consists of change in benefits recognized from our freestanding credit enhancements, primarily from our CAS and CIRT programs as well as certain lender risk-sharing arrangements, including our multifamily DUS program. See “Note 1, Summary of Significant Accounting Policies” for more information about our change in presentation. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | 11. Equity Common Stock Shares of common stock outstanding, net of shares held as treasury stock, totaled $1.2 billion as of December 31, 2020 and 2019. 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, 2020 2020 2019 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 0.150 (4) March 31, 2002 (5) Series G August 8, 2000 6 288 6 288 50 — (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, 2020 was $120,836. (2) Dividends on the senior preferred stock are currently 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 and ending September 30, 2020. The capital reserve amount, starting with the quarterly dividend period ending on December 31, 2020, increased to the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework described in “Note 12, Regulatory Capital Requirements.” (3) Any liquidation preference of our senior preferred stock in excess of $1 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 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, 2020. 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, 2020. 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, 2020. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7% or 10-year CMT rate plus 2.375%. (8) Issued and outstanding shares were 24,922 as of December 31, 2020 and 2019. (9) Rate effective December 31, 2020. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.5% 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, 2020. 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” below, 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, 2020 or 2019. 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. As a result of the January 2021 letter agreement, the dividend rate and liquidation preference of the senior preferred stock depend on whether we have reached the “capital reserve end date” which is defined in the January 2021 letter agreement as the last day of the second consecutive fiscal quarter during which we have maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework discussed in “Note 12, Regulatory Capital Requirements.” 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. We had no dividends declared and paid on the senior preferred stock for the year ended December 31, 2020. Dividends declared and paid on the senior preferred stock were $5.6 billion and $9.4 billion for the years ended December 31, 2019 and 2018, 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 senior preferred stock purchase agreement. Dividend amount prior to capital reserve end date. 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 an applicable capital reserve amount. The January 2021 letter agreement increased the applicable capital reserve amount, starting with the quarterly dividend period ending on December 31, 2020, from $25 billion to the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework. If our net worth does not exceed this amount as of the end of the immediately preceding fiscal quarter, then dividends will neither accumulate nor be payable for such period. 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. Dividend amount following capital reserve end date . Beginning on the first dividend period following the capital reserve end date, the applicable quarterly dividend amount on the senior preferred stock will be the lesser of: (1) a 10% annual rate on the then-current liquidation preference of the senior preferred stock; and (2) an amount equal to the incremental increase in our net worth during the immediately prior fiscal quarter. However, the applicable quarterly dividend amount will immediately increase to a 12% annual rate on the then-current liquidation preference of the senior preferred stock if we fail to timely pay dividends in cash to Treasury. This increased dividend amount will continue until the dividend period following the date we have paid, in cash, full cumulative dividends to Treasury (including any unpaid dividends), at which point the applicable quarterly dividend amount will revert to the prior calculation method. Liquidation preference. 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: • amendments to the terms of the senior preferred stock made in December 2017 increased the aggregate liquidation preference of the senior preferred stock by $3 billion as of December 31, 2017; • amendments to the terms of the senior preferred stock made in September 2019 provided 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; and • the January 2021 letter agreement revised these terms to provide that at the end of each fiscal quarter, 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. 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 before any distribution is made to the holders of our common stock or other preferred stock. The aggregate liquidation preference of the senior preferred stock was $142.2 billion as of December 31, 2020 and will further increase to $146.8 billion as of March 31, 2021, due to the increase in our net worth during the fourth quarter of 2020. 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 (1) 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 (2) 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 (1) accumulated and unpaid dividends previously added to the liquidation preference and not previously paid down; and (2) 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, the net proceeds of the issuance, with the exception of up to $70 billion in aggregate gross cash proceeds from the issuance of common stock, must be used to pay down the liquidation preference of the senior preferred stock; however, the liquidation preference of each share of senior preferred stock may not be paid down below $1,000 per share prior to the termination of Treasury’s funding commitment. Following the termination of Treasury’s funding commitment, we may pay down the liquidation preference of all outstanding shares of senior preferred stock at any time, in whole or in part. 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 12, 2021, 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, 2020, 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. If we were to have a net worth deficit in a future period, we would 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 to compensate Treasury for its ongoing support under the senior preferred stock purchase agreement. As amended by the January 2021 letter agreement, the agreement provides that (1) through and continuing until the capital reserve end date, the periodic commitment fee will not be set, accrue, or be payable, and (2) not later than the capital reserve end date, we and Treasury, in consultation with the Chair of the Federal Reserve, will agree to set the periodic commitment fee. 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 for stock issuances made (1) to Treasury, (2) pursuant to obligations that existed at the time we entered conservatorship, and (3) as amended by the January 2021 letter agreement, for common stock ranking pari passu or junior to the common stock issued to Treasury in connection with the exercise of its warrant, provided that (i) Treasury has already exercised its warrant in full, and (ii) all currently pending significant litigation relating to the conservatorship and the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, which may require Treasury’s assent. Net proceeds of the issuance of any shares of capital stock for cash while the senior preferred stock is outstanding, except for up to $70 billion in aggregate gross cash proceeds from the issuance of common stock, must be used to pay down the liquidation preference of the senior preferred stock; • terminating or seeking to terminate our conservatorship, other than through a receivership, except that, as revised by the January 2021 letter agreement, FHFA can terminate our conservatorship without the prior consent of Treasury if several conditions are met, including (1) all currently pending significant litigation relating to the conservatorship and the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, and (2) for two or more consecutive quarters, our common equity tier 1 capital (as defined in the enterprise regulatory capital framework), together with any stockholder equity that would result from a firm commitment public underwritten offering of common stock which is fully consummated concurrent with the termination of conservatorship, equals or exceeds at least 3% of our adjusted total assets (as defined in the enterprise regulatory capital framework); • 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. Covenants in the senior preferred stock purchase agreement also subject 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 is $250 billion and, as a result of the January 2021 letter agreement, will decrease to $225 billion on December 31, 2022 . We are currently managing our business to a $225 billion cap pursuant to instructions from FHFA. Our mortgage assets as of December 31, 2020 were $165 billion, which includes 10% of the notional value of interest-only securities we hold. This adjustment is based on instruction from FHFA for the purpose of measuring mortgage assets against the cap. We disclose the amount of our mortgage assets each month in the “Endnotes” to our Monthly Summaries, which are available on our website and announced in a press release. • 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. This debt limit is currently $300 billion, and it will decrease to $270 billion as of December 31, 2022. As calculated for this purpose, our indebtedness as of December 31, 2020 was $290 billion. Another covenant 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 to the changes described above to covenants already in the senior preferred stock purchase agreement, the January 2021 letter agreement added additional covenants: • We are required to comply with the terms of the enterprise regulatory capital framework as published by FHFA in the Federal Register on December 17, 2020, disregarding any subsequent amendments or modifications. • New restrictive covenants impact both our single-family and multifamily business activities, including the type and volume of loans we may acquire. 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 2020. Although the senior preferred stock purchase agreement does not specify penalties for failure to comply with the covenants in the agreement, FHFA, as our conservator and regulator, has the authority to direct compliance and to impose consequences for noncompliance. 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, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Enterprise Regulatory Capital Framework In November 2020, FHFA adopted a final rule establishing a new regulatory capital framework for the GSEs, which we refer to as the “enterprise regulatory capital framework.” The framework establishes new risk-based and leverage-based capital requirements for the GSEs. These requirements go beyond the current statutory capital requirements of Fannie Mae. The final rule goes into effect in February 2021, but the dates on which we must comply with the requirements of the capital framework are staggered and largely dependent on whether we remain in conservatorship. The new regulatory capital framework provides a granular assessment of credit risk specific to different mortgage loan categories, as well as components for market risk and operational risk. The regulatory capital framework set forth in the final rule includes the following: • Supplemental capital requirements relating to the amount and form of the capital we hold, based largely on definitions of capital used in U.S. banking regulators’ regulatory capital framework. The final rule specifies complementary leverage-based and risk-based requirements, which together determine the requirements for each tier of capital; • A requirement that we hold prescribed capital buffers that can be drawn down in periods of financial stress and then rebuilt over time as economic conditions improve. If we fall below the prescribed buffer amounts, we must restrict capital distributions such as stock repurchases and dividends, as well as discretionary bonus payments to executives, until the buffer amounts are restored; • A requirement to file quarterly public capital reports starting in 2022, regardless of our status in conservatorship; • Specific minimum percentages, or “floors,” on the risk-weights applicable to single-family and multifamily exposures, which has the effect of increasing the capital required to be held for loans otherwise subject to lower risk weights; • Specific floors on the risk-weights applicable to retained portions of credit risk transfer transactions, which has the effect of decreasing the capital relief obtained from these transactions; and • Additional elements based on U.S. banking regulators’ regulatory capital framework, including the planned eventual introduction of an advanced approach to complement the standardized approach for measuring risk-weighted assets. Under the final capital rule, regardless of our status in conservatorship, reporting requirements under the enterprise regulatory capital framework take effect on January 1, 2022, including public reporting of our calculations of regulatory capital levels, buffers, adjusted total assets, and total risk-weighted assets, as defined in the final rule. These reporting requirements are not expected to replace existing statutory capital reporting that is required by FHFA. Statutory Capital Classifications Though FHFA suspended our statutory capital classifications during conservatorship, we continue to submit capital reports to FHFA for monitoring purposes. These 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, these 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. The following table displays our current capital classification measures. As of December 31, 2020 2019 (Dollars in millions) Core capital (1) $ (95,694) $ (106,360) Statutory minimum capital requirement (2) 28,603 22,392 Deficit of core capital over statutory minimum capital requirement $ (124,297) $ (128,752) (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, 2020 and 2019, we had a minimum capital deficiency of $124.3 billion and $128.8 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. 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, the provisions of the senior preferred stock provide for dividends each quarter prior to the capital reserve end date in 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. Starting with the quarterly dividend period ending on December 31, 2020, the applicable capital reserve amount is the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework discussed above. After the capital reserve end date, the amount of quarterly dividends to Treasury will be equal to the lesser of any quarterly increase in our net worth and a 10% annual rate on the then-current liquidation preference of the senior preferred stock. As a result of this change, our ability to retain earnings in excess of the capital requirements and buffers set forth in the enterprise regulatory capital framework will be limited. 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, 2020 | |
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, 2020 2019 2020 2019 Midwest 14 % 15 % 11 % 10 % Northeast 17 17 15 15 Southeast 22 22 27 27 Southwest 19 18 22 23 West 28 28 25 25 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 credit 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. We report the delinquency status of our single-family and multifamily guaranty book of business below. We report loans receiving COVID-19-related payment forbearance as delinquent according to the contractual terms of the loans. 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. The increase in loans classified as seriously delinquent as of December 31, 2020 compared with December 31, 2019 was primarily attributable to the economic dislocation caused by the COVID-19 pandemic. As of December 31, 2020 2019 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 0.88 % 0.33 % 3.10 % 1.07 % 0.29 % 0.59 % Percentage of single-family conventional loans based on loan count 1.02 0.36 2.87 1.27 0.35 0.66 As of December 31, 2020 2019 Percentage of Seriously Delinquent Rate (1) Percentage of Seriously Delinquent Rate (1) Estimated mark-to-market LTV ratio: Greater than 100% * 22.43 % * 10.14 % Geographical distribution: California 19 2.62 19 0.32 Florida 6 4.17 6 0.84 Illinois 3 3.10 4 0.91 New Jersey 3 4.57 3 1.13 New York 5 4.79 5 1.18 All other states 64 2.59 63 0.64 Product distribution: Alt-A 1 9.32 2 2.95 Vintages: 2004 and prior 2 5.88 2 2.48 2005-2008 2 9.98 4 4.11 2009-2020 96 2.39 94 0.35 * Represents less than 0.5% of single-family conventional book of business. (1) Based on loan count, consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2020 and 2019. Multifamily Credit Risk Characteristics For multifamily loans, management monitors the serious delinquency rate, which is the percentage of multifamily loans, based on unpaid principal balance, that are 60 days or more past due, and other loans that have higher risk characteristics, to determine our overall credit quality indicator. Higher risk characteristics include, but are not limited to, current DSCR below 1.0 and original LTV ratios greater than 80%. We stratify multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan. The following tables display the delinquency status and serious delinquency rates for specified loan categories of our multifamily guaranty book of business. As of December 31, 2020 (1) 2019 (1) 30 Days Delinquent Seriously Delinquent (2) 30 Days Delinquent Seriously Delinquent (2) Percentage of multifamily guaranty book of business 0.29 % 0.98 % 0.02 % 0.04 % As of December 31, 2020 2019 Percentage of Multifamily Guaranty Book of Business (1) Serious Delinquency Rate (2)(3) Percentage of Multifamily Guaranty Book of Business (1) Serious Delinquency Rate (2)(3) Original LTV ratio: Greater than 80% 1 % 1.04 % 1 % — % Less than or equal to 80% 99 0.98 99 0.04 Current DSCR below 1.0 (4) 2 21.19 2 0.48 (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. Other Concentrations 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, 2020 2019 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 $ 170,890 $ 162,855 Pool mortgage insurance 291 339 Total mortgage insurance risk in force $ 171,181 5% $ 163,194 6% Mortgage insurance does not protect us from all losses on covered loans. For example, mortgage insurance does not cover property damage that is not covered by the hazard insurance we require, and such damage may result in a reduction to, or a denial of, mortgage insurance benefits. 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, 2020 2019 Counterparty: (1) Arch Capital Group Ltd. 21 % 23 % Radian Guaranty, Inc. 19 20 Mortgage Guaranty Insurance Corp. 18 18 Genworth Mortgage Insurance Corp. 16 15 Essent Guaranty, Inc. 16 14 Others 10 10 Total 100 % 100 % (1) Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty. Three of our mortgage insurer counterparties that are currently not approved to write new business—PMI Mortgage Insurance Co. (“PMI”), Triad Guaranty Insurance Corporation (“Triad”) and Republic Mortgage Insurance Company (“RMIC”)—are currently in run-off. A mortgage insurer that is in run-off continues to collect renewal premiums and process claims on its existing insurance business, but no longer writes new insurance, which increases the risk that the mortgage insurer will fail to pay claims fully. Entering run-off may limit sources of profits and liquidity for the mortgage insurer and could also cause the quality and speed of its claims processing to deteriorate. These three mortgage insurers provided a combined $2.4 billion, or 1%, of the risk-in-force mortgage insurance coverage of our single-family conventional guaranty book of business as of December 31, 2020. PMI and Triad have been paying only a portion of policyholder claims and deferring the remaining portion. PMI is currently paying 76.5% of claims under its mortgage insurance policies in cash and is deferring the remaining 23.5%, 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 their deferred policyholder claims or increase or decrease the amount of cash they pay on claims. RMIC is no longer deferring payments on policyholder claims, but remains in run-off. We have counterparty credit risk relating to the potential insolvency of, or non-performance by, monoline 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 expected credit 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, 2020 and 2019, our estimated benefit from mortgage insurance, which is based on estimated credit losses as of period end, reduced our loss reserves by $1.4 billion and $410 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 $560 million recorded in “Other assets” in our consolidated balance sheets as of December 31, 2020 and $654 million as of December 31, 2019 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 $497 million as of December 31, 2020 and $541 million as of December 31, 2019, 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, including loss mitigation, 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 (i.e., servicers that are not insured depository institutions), 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 As of December 31, 2020 2019 Wells Fargo Bank, N.A. (together with its affiliates) 13 % 17 % Remaining top five depository servicers 11 15 Top five non-depository servicers 24 27 Total 48 % 59 % Overall, the decrease in concentration of our top five single-family depository and non-depository servicers from December 31, 2019 to December 31, 2020 was primarily due to higher refinance activity in 2020, which increased the volume of mortgage loans serviced by smaller non-depository servicers. Compared with depository financial institutions, our non-depository servicers 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 depository financial 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 As of December 31, 2020 2019 Wells Fargo Bank, N.A. (together with its affiliates) 12 % 13 % Walker & Dunlop, LLC 12 12 Remaining top five servicers 24 23 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 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 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 $92.9 billion as of December 31, 2020, compared with $81.4 billion as of December 31, 2019. As of both December 31, 2020 and December 31, 2019, 51% of our maximum potential loss recovery on multifamily loans was from five 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, 2020 | |
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, 2020 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 $ 962 $ (952) $ 10 $ — $ — $ 10 Cleared risk management derivatives — 47 47 — — 47 Mortgage commitment derivatives 989 — 989 (406) (53) 530 Total derivative assets 1,951 (905) 1,046 (4) (406) (53) 587 Securities purchased under agreements to resell or similar arrangements (5) 46,644 — 46,644 — (46,644) — Total assets $ 48,595 $ (905) $ 47,690 $ (406) $ (46,697) $ 587 Liabilities: OTC risk management derivatives $ (1,015) $ 999 $ (16) $ — $ — $ (16) Cleared risk management derivatives — (4) (4) — 2 (2) Mortgage commitment derivatives (1,426) — (1,426) 406 1,017 (3) Total derivative liabilities (2,441) 995 (1,446) (4) 406 1,019 (21) Total liabilities $ (2,441) $ 995 $ (1,446) $ 406 $ 1,019 $ (21) 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) (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 $4.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. The fair value of non-cash collateral received was $46.6 billion and $24.7 billion, of which $46.6 billion and $23.8 billion could be sold or repledged as of December 31, 2020 and 2019, respectively. None of the underlying collateral was sold or repledged as of December 31, 2020 and 2019, respectively. (4) Excludes derivative assets of $179 million and $40 million as of December 31, 2020 and 2019, respectively, and derivative liabilities of $49 million and $25 million recognized in our consolidated balance sheets as of December 31, 2020 and 2019, respectively, that are not subject to enforceable master netting arrangements. (5) Includes $18.4 billion and $11.4 billion of securities purchased under agreements to resell classified as “Cash and cash equivalents” in our consolidated balance sheets as of December 31, 2020 and 2019, 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 Selling 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 Selling 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. In addition to these contractual relationships, we are also a clearing member of two divisions of the Fixed Income Clearing Corporation (“FICC”), a central counterparty (“CCP”). One FICC division clears our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. The other division clears our forward purchase and sale commitments of mortgage-related securities, including dollar roll transactions. As a result of these trades, we are required to post initial and variation margin payments and are exposed to the risk that FICC fails to perform. As a clearing member of FICC, we are exposed to the risk that the CCP or one or more of the CCP’s clearing members fails to perform its obligations as described below. • A default by or the financial or operational failure of FICC would require us to replace contracts cleared through FICC, thereby increasing operational costs and potentially resulting in losses. • We may also be exposed to losses if a clearing member of FICC defaults on its obligations as each clearing member is required to absorb a portion of those fellow-clearing member losses. As a result, we could lose the margin that we have posted to FICC. Moreover, our exposure could exceed the amount of margin that we previously posted to FICC, since FICC’s rules require non-defaulting clearing members to cover, on a pro rata basis, losses caused by a clearing member’s default. • We are unable to develop an estimate of the maximum potential amount of future payments that we could be required to make to FICC under these arrangements as our exposure is dependent on the volume of trades FICC clearing members execute now and in the future, which varies daily. Although we are unable to develop an estimate of our maximum exposure, we expect that losses caused by any clearing member would be partially offset by the fair value of margin posted by the defaulting clearing member and any other available assets of the CCP for those purposes. We believe that the risk of loss is remote due to the FICC's initial and daily mark-to-market margin requirements, guarantee funds and other resources that are available in the event of a default. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 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: Cash equivalents (2) $ 1,120 $ — $ — $ — $ 1,120 Trading securities: Mortgage-related securities: Fannie Mae — 2,310 94 — 2,404 Other agency — 3,450 1 — 3,451 Private-label and other mortgage securities — 158 — — 158 Non-mortgage-related securities: U.S. Treasury securities 130,456 — — — 130,456 Other securities — 73 — — 73 Total trading securities 130,456 5,991 95 — 136,542 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 973 195 — 1,168 Other agency — 65 — — 65 Alt-A and subprime private-label securities — 4 2 — 6 Mortgage revenue bonds — — 216 — 216 Other — 7 235 — 242 Total available-for-sale securities — 1,049 648 — 1,697 Mortgage loans — 5,629 861 — 6,490 Other assets: Risk management derivatives: Swaps — 376 203 — 579 Swaptions — 383 — — 383 Netting adjustment — — — (905) (905) Mortgage commitment derivatives — 989 — — 989 Credit enhancement derivatives — — 179 — 179 Total other assets — 1,748 382 (905) 1,225 Total assets at fair value $ 131,576 $ 14,417 $ 1,986 $ (905) $ 147,074 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 3,312 $ 416 $ — $ 3,728 Total of Fannie Mae — 3,312 416 — 3,728 Of consolidated trusts — 24,503 83 — 24,586 Total long-term debt — 27,815 499 — 28,314 Other liabilities: Risk management derivatives: Swaps — 881 — — 881 Swaptions — 134 — — 134 Netting adjustment — — — (995) (995) Mortgage commitment derivatives — 1,426 — — 1,426 Credit enhancement derivatives — — 49 — 49 Total other liabilities — 2,441 49 (995) 1,495 Total liabilities at fair value $ — $ 30,256 $ 548 $ (995) $ 29,809 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 Recurring fair value measurements: (Dollars in millions) 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 (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, 2020 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020 (4)(5) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2020 (1) Balance, December 31, 2019 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 Transfers into Level 3 Balance, December 31, 2020 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 45 $ (12) $ — $ — $ (1) $ — $ — $ (48) $ 110 $ 94 $ (8) $ — Other agency 1 — — — — — — (1) 1 1 — — Private-label and other mortgage securities — 3 — — (94) — (3) — 94 — — — Total trading securities $ 46 $ (9) (5)(6) $ — $ — $ (95) $ — $ (3) $ (49) $ 205 $ 95 $ (8) $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 171 $ 1 $ 4 $ — $ (1) $ — $ (15) $ (243) $ 278 $ 195 $ — $ — Alt-A and subprime private-label securities — — — — — — — — 2 2 — — Mortgage revenue bonds 315 (3) 2 — — — (98) — — 216 — 4 Other 306 (6) (1) — — — (64) — — 235 — — Total available-for-sale securities $ 792 $ (8) (6)(7) $ 5 $ — $ (1) $ — $ (177) $ (243) $ 280 $ 648 $ — $ 4 Mortgage loans $ 688 $ 47 (5)(6) $ — $ — $ (21) $ — $ (132) $ (104) $ 383 $ 861 $ 11 $ — Net derivatives 162 233 (5) — — — — (80) 18 — 333 159 — Long-term debt: Of Fannie Mae: Senior floating (398) (41) (5) — — — — 23 — — (416) (41) — Of consolidated trusts (75) (2) (5)(6) — — — — 18 5 (29) (83) (1) — Total long-term debt $ (473) $ (43) $ — $ — $ — $ — $ 41 $ 5 $ (29) $ (499) $ (42) $ — 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 (4)(5) 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 (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 Transfers into Level 3 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 (5)(6) $ — $ 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 (6)(7) $ (11) $ — $ (28) $ — $ (158) $ (106) $ 124 $ 792 $ — $ (3) Mortgage loans $ 937 $ 46 (5)(6) $ — $ — $ (52) $ — $ (136) $ (254) $ 147 $ 688 $ 26 $ — Net derivatives 194 109 (5) — — — — (119) (10) (12) 162 3 — Long-term debt: Of Fannie Mae: Senior floating (351) (47) (5) — — — — — — — (398) (47) — Of consolidated trusts (201) (8) (5)(6) — — — (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 (4)(5) 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 Transfers into Level 3 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 (5)(6) $ — $ 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 (6)(7) $ (53) $ — $ (22) $ — $ (263) $ (53) $ — $ 952 $ — $ — Mortgage loans $ 1,116 $ 38 (5)(6) $ — $ — $ — $ — $ (216) $ (162) $ 161 $ 937 $ 14 $ — Net derivatives 134 (38) (5) — — — — 45 53 — 194 40 — Long-term debt: Of Fannie Mae: Senior floating (376) 25 (5) — — — — — — — (351) 25 — Of consolidated trusts (582) 9 (5)(6) — — — 1 44 541 (214) (201) (2) — Total long-term debt $ (958) $ 34 $ — $ — $ — $ 1 $ 44 $ 541 $ (214) $ (552) $ 23 $ — (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) Amount represents temporary changes in fair value. Amortization, accretion and the impairment of credit losses (other-than-temporary impairment in years prior to 2020) are not considered unrealized and are not included in this amount. (5) Gains (losses) are included in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. (6) Gains (losses) are included in “Net interest income” in our consolidated statements of operations and comprehensive income. (7) Gains (losses) are included in “Investment gains, net” in our consolidated statements of operations and comprehensive income. 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, 2020 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) $ 95 Various Available-for-sale securities: Mortgage-related securities: Agency (3) 97 Consensus 98 Various Total agency 195 Alt-A and subprime private-label securities 2 Various Mortgage Revenue Bonds 144 Single Vendor Spreads (bps) 32.0 - 315.3 93.4 72 Various Total mortgage revenue bonds 216 Other 206 Discounted Cash Flow Spreads (bps) 425.0 - 443.0 434.2 29 Various Total other 235 Total available-for-sale securities $ 648 Net derivatives $ 203 Dealer Mark 130 Discounted Cash Flow Total net derivatives $ 333 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 (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, 2020 or December 31, 2019 that were measured on a nonrecurring basis. We held $25 million and $274 million in Level 2 assets as of December 31, 2020 and December 31, 2019, respectively, comprised of mortgage loans held for sale and mortgage loans held for investment that were impaired. We had no Level 2 liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2020 or December 31, 2019. The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. Fair Value Measurements as of December 31, Valuation Techniques 2020 2019 (Dollars in millions) Nonrecurring fair value measurements: Mortgage loans held for sale, at lower of cost or fair value Consensus $ 754 $ 471 Single Vendor 333 605 Total mortgage loans held for sale, at lower of cost or fair value 1,087 1,076 Single-family mortgage loans held for investment, at amortized cost Internal Model 979 555 Multifamily mortgage loans held for investment, at amortized cost Appraisals 225 — Asset Manager Estimate — 24 Internal Model 125 — Various 40 16 Total multifamily mortgage loans held for investment, at amortized cost 390 40 Acquired property, net: Single-family Accepted Offers 35 101 Appraisals 89 362 Internal Model 41 164 Walk Forwards 85 240 Various 11 51 Total single-family 261 918 Multifamily Various 25 9 Total nonrecurring assets at fair value $ 2,742 $ 2,598 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, spreads) 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, spreads) 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, spreads) 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 to value collateral contains four sub-component models: 1) Location Model, 2) Neighborhood Model, 3) Automated Valuation Model (“AVM”) Imputation Model and 4) Final Valuation Model. These models consider characteristics of the property, neighborhood, local housing markets, underlying loan and home price growth to derive a final estimated value. 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: We use 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”): We use BPOs 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 Accepted Offer: An Offer to Purchase Real Estate that has been submitted by a potential purchaser of an acquired property and accepted by Fannie Mae in a pending sale. 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.” Asset and Liability Derivative Instruments (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: We use one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Clearing House: We use the clearing house-provided value for interest-rate derivatives which are transacted through a clearing house. 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. Discounted Cash Flow: We use discounted cash flow to estimate fair value for credit enhancement derivatives related to CRT. Level 2 and 3 Instruments Valuation Techniques Classification Asset and Liability Derivative Instruments (collectively “Derivatives”) 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 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, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment Estimated Fair Value (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 115,623 $ 97,179 $ 18,444 $ — $ — $ 115,623 Federal funds sold and securities purchased under agreements to resell or similar arrangements 28,200 — 28,200 — — 28,200 Trading securities 136,542 130,456 5,991 95 — 136,542 Available-for-sale securities 1,697 — 1,049 648 — 1,697 Mortgage loans held for sale 5,197 — 116 5,502 — 5,618 Mortgage loans held for investment, net of allowance for loan losses 3,648,695 — 3,512,672 255,556 — 3,768,228 Advances to lenders 10,449 — 10,448 1 — 10,449 Derivative assets at fair value 1,225 — 1,748 382 (905) 1,225 Guaranty assets and buy-ups 115 — — 258 — 258 Total financial assets $ 3,947,743 $ 227,635 $ 3,578,668 $ 262,442 $ (905) $ 4,067,840 Financial liabilities: Short-term debt: Of Fannie Mae $ 12,173 $ — $ 12,177 $ — $ — $ 12,177 Long-term debt: Of Fannie Mae 277,399 — 288,414 878 — 289,292 Of consolidated trusts 3,646,164 — 3,756,673 31,584 — 3,788,257 Derivative liabilities at fair value 1,495 — 2,441 49 (995) 1,495 Guaranty obligations 127 — — 82 — 82 Total financial liabilities $ 3,937,358 $ — $ 4,059,705 $ 32,593 $ (995) $ 4,091,303 As of December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment Estimated Fair Value (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 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 c |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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. 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 August 31, 2037. 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 $94 million, $95 million and $100 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020 Loans and Mortgage-Related Securities (1) Operating Leases (2) Other (3) (Dollars in millions) 2021 $ 189,259 $ 55 $ 130 2022 — 66 83 2023 — 79 85 2024 — 81 5 2025 — 82 — Thereafter — 876 — Total $ 189,259 $ 1,239 $ 303 (1) Primarily includes 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, 2020 | |
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 2020 and 2019 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 2020 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 316 $ 219 $ 177 $ 162 Available-for-sale securities 31 26 19 22 Mortgage loans 28,938 27,007 25,810 24,561 Federal funds sold and securities purchased under agreements to resell or similar arrangements 107 14 14 11 Other 34 25 33 43 Total interest income 29,426 27,291 26,053 24,799 Interest expense: Short-term debt (102) (54) (19) (7) Long-term debt (23,977) (21,460) (19,378) (17,706) Total interest expense (24,079) (21,514) (19,397) (17,713) Net interest income 5,347 5,777 6,656 7,086 Benefit (provision) for credit losses (2,583) (12) 501 1,416 Net interest income after benefit for credit losses 2,764 5,765 7,157 8,502 Investment gains (losses) , net (158) 149 653 263 Fair value losses, net (276) (1,018) (327) (880) Fee and other income 120 90 93 159 Non-interest income (loss) (314) (779) 419 (458) Administrative expenses: Salaries and employee benefits (393) (382) (386) (393) Professional services (212) (231) (230) (248) Other administrative expenses (144) (141) (146) (162) Total administrative expenses (749) (754) (762) (803) Foreclosed property expense (80) (10) (71) (16) Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (637) (660) (679) (697) Credit enhancement expense (376) (360) (325) (300) Change in expected credit enhancement recoveries 188 273 (48) (180) Other expenses, net (218) (261) (313) (339) Total expenses (1,872) (1,772) (2,198) (2,335) Income before federal income taxes 578 3,214 5,378 5,709 Provision for federal income taxes (117) (669) (1,149) (1,139) Net income 461 2,545 4,229 4,570 Dividends distributed or amounts attributable to senior preferred stock (476) (2,532) (4,216) (4,566) Net income (loss) attributable to common stockholders $ (15) $ 13 $ 13 $ 4 Earnings per share: Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00 Diluted 0.00 0.00 0.00 0.00 Weighted-average common shares outstanding: Basic 5,867 5,867 5,867 5,867 Diluted 5,867 5,893 5,893 5,893 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 29,862 29,511 29,072 28,929 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 30,637 30,286 29,755 29,504 Interest expense: Short-term debt (125) (119) (125) (132) Long-term debt (25,716) (24,940) (24,282) (23,450) Total interest expense (25,841) (25,059) (24,407) (23,582) Net interest income 4,796 5,227 5,348 5,922 Benefit for credit losses 650 1,225 1,857 279 Net interest income after benefit for credit losses 5,446 6,452 7,205 6,201 Investment gains, net 133 461 253 923 Fair value gains (losses), net (831) (754) (713) 84 Fee and other income 134 113 188 131 Non-interest income (loss) (564) (180) (272) 1,138 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) Credit enhancement expense (216) (276) (290) (352) Other expenses, net (162) (203) (186) (194) Total expenses (1,855) (1,951) (1,934) (2,109) 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [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, which are based on the type of business activities each perform: Single-Family and Multifamily. 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. In 2012, 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 “Interest income: Mortgage loans” and “TCCA fees,” respectively, in our consolidated statements of operations and comprehensive income. In 2020, FHFA provided guidance that we are not required to accrue or remit TCCA fees to Treasury with respect to loans backing MBS trusts that have been delinquent for four months or longer. Once payments on such loans resume, we will resume accrual and remittance to Treasury of the associated TCCA fees on the loans. |
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. Presentation of 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. Early lender funding advances have terms up to 60 days and earn a short-term market rate of interest. Advances to lenders has been presented as a separate line item for all periods presented, as increased mortgage refinance activity resulted in a higher balance at period end. In prior periods, advances to lenders were recorded in “Other assets.” Presentation of Freestanding Credit Enhancement Expense and Recoveries Freestanding credit enhancements primarily include our Connecticut Avenue Securities ® (“CAS”) and Credit Insurance Risk Transfer TM (“CIRT TM ”) programs, enterprise-paid mortgage insurance (“EPMI”), and certain lender risk-sharing arrangements, including our multifamily Delegated Underwriting and Servicing (“DUS ® ”) program. We have revised our presentation of the expenses and recoveries associated with these programs as described below. Credit Enhancement Expense Credit enhancement expense consists of costs associated with our freestanding credit enhancements. We exclude from this expense costs related to our CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. Credit enhancement expense has been presented as a separate line item for all periods presented, as these expenses have become a more significant driver of our results of operations. In prior periods, credit enhancement expenses were recorded in “Other expenses, net.” Change in Expected Credit Enhancement Recoveries Change in expected credit enhancement recoveries consists of the change in benefits recognized from our freestanding credit enhancements, including any realized amounts. Benefits, if any, from our CAS, CIRT and EPMI programs previously recorded in “Fee and other income” have been reclassified to “Change in expected credit enhancement recoveries” for all periods presented. Benefits from other lender risk-sharing programs, including our multifamily DUS program, were recorded as a reduction of credit-related expense in periods prior to 2020. However, with our adoption of the Current Expected Credit Loss standard on January 1, 2020, benefits from freestanding credit enhancements are no longer recorded as a reduction of credit-related expenses. These benefits from lender risk-sharing have been reclassified into “Change in expected credit enhancement recoveries” on a prospective basis beginning January 1, 2020. Presentation of Yield Maintenance Fees Prior period multifamily yield maintenance fees have been reclassified to conform to the current-period presentation. Multifamily yield maintenance fees, or prepayment premiums, are fees that a borrower pays when they prepay their loan. For multifamily loans held in a consolidated trust, a portion of the yield maintenance fee is typically passed through to the holders of the trust certificate. As of January 1, 2020, we classify all yield maintenance fees as interest income. For consolidated loans, the portion of the fee passed through to the certificate holders of the trust is classified as interest expense. Previously, we classified multifamily yield maintenance fees as interest income only when the fee was associated with a loan refinancing, otherwise the fee was classified as fee and other income. The portion of the fees passed through to the certificate holders of the trust were previously classified as interest expense only when the fee was associated with a loan refinancing, otherwise the fee was classified as other expense. The changes in presentation have been applied retrospectively to all periods presented and were immaterial for prior periods. |
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 Our consolidated financial statements include our accounts as well as the accounts of the other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in an entity such as a variable interest entity (“VIE”) through arrangements that do not involve voting interests. |
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 whether 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 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. Uniform Mortgage-Backed Securities (“UMBS”) Uniform Mortgage-Backed Securities (“UMBS”) are common mortgage-backed securities issued by both Fannie Mae and Freddie Mac to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. We and Freddie Mac began issuing UMBS in June 2019. We and Freddie Mac also began resecuritizing UMBS certificates into structured securities in June 2019. The structured securities backed by UMBS that we issue include Supers, which are single-class resecuritization transactions, Real Estate Mortgage Investment Conduit securities (“REMICs”) and interest-only and principal-only strip securities (“SMBS”), which are multi-class resecuritization transactions. Since June 2019, we have resecuritized UMBS, Supers and other structured securities issued by Freddie Mac. The mortgage loans that serve as collateral for Freddie Mac-issued UMBS are not held in trusts that are consolidated by Fannie Mae. When we include Freddie Mac securities in our structured securities, we are subject to additional credit risk because we guarantee securities that were not previously guaranteed by Fannie Mae. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We have concluded that this additional credit risk is negligible because of the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury. Prior to June 2019, 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. Single-Class Securitization Trusts We create single-class securitization trusts to issue single-class Fannie Mae MBS (including UMBS) that evidence an undivided interest in the mortgage loans held in the trust. Investors in single-class Fannie Mae MBS receive principal and interest payments in proportion to their percentage ownership of the MBS issuance. We guarantee to each single-class securitization trust that we will supplement amounts received by the securitization trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie Mae MBS. Single-class securitization trusts are used for lender swap and portfolio securitization transactions. A lender swap transaction occurs when a mortgage lender delivers a pool of single-family mortgage loans to us, which we immediately deposit into an MBS trust. The MBS are then issued to the lender in exchange for the mortgage loans. A portfolio securitization transaction occurs when we purchase mortgage loans from third-party sellers for cash and later deposit these loans into an MBS trust. The securities issued through a portfolio securitization are then sold to investors for cash. We consolidate single-class securitization trusts that are issued under these programs when our role as guarantor and master servicer provides us with the power to direct matters, such as the servicing of the 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 (for example, when the loan collateral is subject to a Federal Housing Administration guaranty and related Servicing Guide). When we purchase single-class Fannie Mae MBS issued from a consolidated trust, we account for the transaction as an extinguishment of the related debt in our consolidated financial statements. We record a gain or loss on the extinguishment of such debt to the extent that the purchase price of the MBS does not equal the carrying value of the related consolidated debt reported in our consolidated balance sheets (including unamortized premiums, discounts or other cost basis adjustments) at the time of purchase. When we sell single-class Fannie Mae MBS that were issued from a consolidated trust, we account for the transaction as the issuance of debt in our consolidated financial statements. We amortize the related premiums, discounts and other cost basis adjustments into income over the contractual life of the MBS. If a single-class securitization trust is not consolidated, we account for the purchase and subsequent sale of such securities as the transfer of an investment security in accordance with the accounting guidance for transfers of financial assets. Single-Class Resecuritization Trusts Fannie Mae single-class resecuritization trusts are created by depositing MBS into a new securitization trust for the purpose of aggregating multiple mortgage-related securities into one combined security. Single-class resecuritization securities pass through directly to the holders of the securities all of the cash flows of the underlying MBS held in the trust. Since June 2019, these securities can be collateralized directly or indirectly by cash flows from underlying securities issued by Fannie Mae, Freddie Mac, or a combination of both. Resecuritization trusts backed directly or indirectly only by Fannie Mae MBS are non-commingled resecuritization trusts. Resecuritization trusts collateralized directly or indirectly by cash flows either in part or in whole from Freddie Mac MBS are commingled resecuritization trusts. Securities issued by our non-commingled single-class resecuritization trusts are backed solely by Fannie Mae MBS, and the guaranty we provide on the trust does not subject us to additional credit risk because we have already provided a guarantee on the underlying securities. Further, the securities issued by our non-commingled single-class resecuritization trusts pass through all of the cash flows of the underlying Fannie Mae MBS directly to the holders of the securities. Accordingly, these securities are deemed to be substantially the same as the underlying Fannie Mae MBS collateral. Additionally, our involvement with these trusts does not provide us with any incremental rights or powers that would enable us to direct any activities of the trusts. We have concluded that we are not the primary beneficiary of and, as a result, we do not consolidate our non-commingled single-class resecuritization trusts. Therefore, we account for purchases and sales of securities issued by non-commingled single-class resecuritization trusts as extinguishments and issuances of the underlying MBS debt, respectively. Securities issued by our commingled single-class resecuritization trusts are backed in whole or in part by Freddie Mac securities. As discussed in “Note 6, Financial Guarantees,” the guaranty we provide to the commingled single-class resecuritization trust subjects us to additional credit risk to the extent that we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. Accordingly, securities issued by our commingled resecuritization trusts are not deemed to be substantially the same as the underlying collateral. We do not have any incremental rights or powers related to commingled single-class resecuritization trusts that would enable us to direct any activities of the underlying trust. As a result, we have concluded that we are not the primary beneficiary of, and therefore do not consolidate, our commingled single-class resecuritization trusts unless we have the unilateral right to dissolve the trust. We have this right when we hold 100% of the beneficial interests issued by the resecuritization trust. Therefore, we account for purchases and sales of these securities as the transfer of an investment security. Multi-Class Resecuritization Trusts Multi-class resecuritization trusts are trusts we create to issue multi-class Fannie Mae structured securities, including REMICs and SMBS, in which the cash flows of the underlying mortgage assets are divided, creating several classes of securities, each of which represents a beneficial ownership interest in a separate portion of cash flows. We guarantee to each multi-class resecuritization trust that we will supplement amounts received by the trusts as required to permit timely guaranty payments on the related Fannie Mae structured securities. Since June 2019, these multi-class structured securities can be collateralized, directly or indirectly, by securities issued by Fannie Mae, Freddie Mac or a combination of both. The guaranty we provide to our non-commingled multi-class resecuritization trusts does not subject us to additional credit risk , because the underlying assets are Fannie Mae-issued securities for which we have already provided a guaranty. However, for commingled multi-class structured securities, we are subject to additional credit risk to the extent we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. For both commingled and non-commingled multi-class resecuritization trusts, we may also be exposed to prepayment risk via our ownership of securities issued by these trusts. We do not have the ability via our involvement with a multi-class resecuritization trust to impact either the credit risk or prepayment risk to which we are exposed. Therefore, we have concluded that we do not have the characteristics of a controlling financial interest and do not consolidate multi-class resecuritization trusts unless we have the unilateral right to dissolve the trust as noted below. Securities issued by multi-class resecuritization trusts do not directly pass through all of the cash flows of the underlying securities, and therefore the issued and underlying securities are not considered substantially the same. Accordingly, we account for purchases and sales of securities issued by the multi-class resecuritization trusts as purchases and sales of investment securities. Since June 2019, we may include UMBS, Supers and other structured securities that are either issued or backed by securities issued by Freddie Mac in our resecuritization trusts. As a result, we adopted a consolidation threshold for multi-class resecuritization trusts that is based on our ability to unilaterally dissolve the resecuritization trust. This ability exists only when we hold 100% of the outstanding beneficial interests issued by the resecuritization trust. This change in the consolidation threshold was applied prospectively upon the introduction of UMBS in the second quarter of 2019 and prior-period amounts were not recast. Prior to the introduction of UMBS, we consolidated multi-class resecuritization trusts when we held a substantial portion of the 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. |
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 (“AFS”) We classify and account for our securities as either trading or available-for-sale (“AFS”). We measure trading securities at fair value in our consolidated balance sheets with unrealized and realized gains and losses included as a component of “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. We include interest and dividends on securities in our consolidated statements of operations and comprehensive income. Interest 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. Impairment of Available-for-Sale Debt Securities An AFS debt security is impaired if the fair value of the investment is less than its amortized cost basis. 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 as an allowance in “Benefit (provision) for credit losses” 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. Credit losses are evaluated on an individual security basis and are limited to the difference between the fair value of the debt security and its amortized cost basis. If we intend to sell a debt security or it is more likely than not that we will be required to sell the debt security before recovery, any allowance for credit losses on the debt security is reversed and the amortized cost basis of the debt security is written down to its fair value through “Investment gains, 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 income (loss)” and we recognize realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income. We define the amortized cost basis of our AFS securities as unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments. Pursuant to the CECL standard, we record an allowance for credit losses for AFS securities that reflects the impairment for credit losses, which are limited to the amount that fair value is less than the amortized cost. Impairment due to non-credit losses are recorded as unrealized losses within other comprehensive income. |
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. Purchased 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. For nonperforming loans transferred from held for investment (“HFI”) to HFS, based upon a change in our intent, we record the loans at the lower of cost or fair value on the date of transfer. When the fair value of the nonperforming loan is less than its amortized cost, we record a write-off against the allowance for loan losses in an amount equal to the difference between the amortized cost basis and the fair value of the loan. If the amount written off upon transfer exceeds the allowance related to the transferred loan, we record the excess in provision for credit losses. If the amounts written off are less than the allowance related to the loans, we recognize a benefit for credit losses. Nonperforming loans include both seriously delinquent and reperforming loans, which are loans that were previously delinquent but are performing again because payments on the mortgage loan have become current with or without the use of a loan modification plan. 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. In the event that we reclassify a performing loan from HFI to HFS, based upon a change in our intent, the allowance for loan losses previously recorded on the HFI mortgage loan is reversed through “Benefit (provision) for credit losses” at the time of reclassification. The mortgage loan is reclassified into HFS at its amortized cost basis and a valuation allowance is established to the extent that the amortized cost basis of the loan exceeds its fair value. The initial recognition of the valuation allowance and any subsequent changes are recorded as a gain or loss in “Investment gains, net.” |
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 when we have the intent to securitize via consolidated trusts are generally classified as HFI in our consolidated balance sheets both prior to and subsequent to their securitization. We report the carrying value of HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and allowance for loan losses. We define the amortized cost of HFI loans as unpaid principal balance and accrued interest receivable, net, including any unamortized premiums, discounts, and other cost basis adjustments. For purposes of our consolidated balance sheets, we present accrued interest receivable separately from the amortized cost of our loans held for investment. We recognize interest income on HFI loans on an accrual basis using the effective yield method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. |
Nonaccrual Loans Policy | Nonaccrual Loans F or loans that were current as of March 1, 2020 and subsequently became delinquent or entered into forbearance during the COVID-19 pandemic, see the changes to our application of our nonaccrual guidance in the section on “New Accounting Guidance” below. For loans not subject to the COVID-19-related nonaccrual guidance, we discontinue accruing interest on loans when we believe collectability of principal and 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 on loans is reversed through interest income at the date a loan is placed on nonaccrual status. For single-family 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. As of January 1, 2020, we place a multifamily loan on nonaccrual status when the loan becomes two months or more past due according to its contractual terms unless the loan is well secured such that collectability of principal and accrued interest is reasonably assured. For multifamily loans on nonaccrual status, we apply any payment received on a cost recovery basis to reduce principal on the mortgage loan. We return a multifamily loan to accrual status when the borrower cures the delinquency of the loan. Activity related to the multifamily nonaccrual policy has been immaterial historically. Single-family and multifamily loans are reported past due if a full payment of principal and interest is not received within one month of its due date. |
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 (i.e., payment deferrals). 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. Our current TDR accounting described herein is temporarily impacted by our election to account for certain eligible loss mitigation activities under the relief granted pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). See the section below on “New Accounting Guidance” for more information on the impact of the CARES Act. We measure impairment of a loan restructured in a TDR based on the excess of the amortized cost 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, we measure impairment based on the difference between our amortized cost 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 The Current Expected Credit Loss Standard 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”) replaced the 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 as described below 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). Allowance for Loan Losses Our allowance for loan losses is a valuation account that is deducted from the amortized cost basis of HFI loans to present the net amount expected to be collected on the loans. The allowance for loan losses reflects an estimate of expected credit losses on single-family and multifamily HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. Estimates of credit losses are based on expected cash flows derived from internal models that estimate loan performance under simulated ranges of economic environments. Our modeled loan performance is based on our historical experience of loans with similar risk characteristics, adjusted to reflect current conditions and reasonable and supportable forecasts. Our historical loss experience and our credit loss estimates capture the possibility of remote events that could result in credit losses on loans that are considered low risk. The allowance for loan losses does not consider benefits from freestanding credit enhancements, such as our CAS and CIRT programs and multifamily DUS lender risk-sharing arrangements, which are recorded in “Other assets” in our consolidated balance sheets. For loans that were current as of March 1, 2020 and subsequently became delinquent or entered into forbearance during the COVID-19 pandemic, see changes to our allowance for loan losses in the section on “New Accounting Guidance” below. For loans not subject to the COVID-19 related guidance, we have elected not to measure an allowance for credit losses on accrued interest receivable balances as we have a nonaccrual policy to ensure the timely reversal of unpaid accrued interest. See “Note 4, Allowance for Loan Losses” for additional information about our current-period provision for loan losses, including a discussion of the estimates used in measuring the impact of the COVID-19 pandemic on our allowance. Changes to our estimate of expected credit losses, including changes due to the passage of time, are recorded through the benefit (provision) for credit losses. When calculating our allowance for loan losses, we consider only our amortized cost in the loans at the balance sheet date. We record write-offs as a reduction to the allowance for loan losses when losses are confirmed through the receipt of assets in satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale. Additionally, we record write-offs as a reduction to our allowance for loan losses when a loan is determined to be uncollectible, upon the transfer of a nonperforming loan from HFI to HFS and pursuant to the write-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”). |
Impaired Financing Receivable Policy | Single-Family Loans We estimate the amount expected to be collected on our single-family loans using a discounted cash flow approach. Our allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the present value of expected cash flows on the loan. Expected cash flows include payments from the borrower, net of servicing fees, contractually attached credit enhancements and proceeds from the sale of the underlying collateral, net of selling costs. When foreclosure of a single-family loan is probable, the allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the fair value of the collateral as of the reporting date, adjusted for the estimated costs to sell the property and the amount of expected recoveries from contractually attached credit enhancements or other proceeds we expect to receive. Expected cash flows are developed using internal models that capture market and loan characteristic inputs. Market inputs include information such as actual and forecasted home prices, interest rates, volatility and spreads, while loan characteristic inputs include information such as mark-to-market loan-to-value (“LTV”) ratios, delinquency status, geography and borrower FICO credit scores. The model assigns a probability to borrower events including contractual payment, loan payoff and default under various economic environments based on historical data, current conditions and reasonable and supportable forecasts. The two primary drivers of our forecasted economic environments are interest rates and home prices. Our model projects the range of possible interest rate scenarios over the life of the loan based on actual interest rates and observed option pricing volatility in the capital markets. We develop regional forecasts based on Metropolitan Statistical Area data for single-family home prices using a multi-path simulation that captures home price projections over a five-year period, the period for which we can develop reasonable and supportable forecasts. After the five-year period, the home price forecast immediately reverts to a historical long-term growth rate. Expected cash flows on the loan are discounted at the effective interest rate on the loan, adjusted for expected prepayments. For single-family loans that have not been modified in a TDR, the discount rate is updated each reporting period to reflect changes in expected prepayments. Expected cash flows do not include expected extensions of the contractual term unless such extension is the result of a reasonably expected TDR. We consider the effects of actual and reasonably expected TDRs in our estimate of credit losses. These effects include any economic concession provided or expected to be provided to a borrower experiencing financial difficulty. We consider our current servicing practices and our historical experience to estimate reasonably expected TDRs. When a loan is contractually modified in a TDR, to capture the concession, the discount rate on the loan is locked to the rate in effect just prior to the modification and is no longer updated for changes in expected prepayments. Multifamily Loans Our allowance for loan losses on multifamily loans is calculated based on estimated probabilities of default and loss severities to derive expected loss ratios, which are then applied to the amortized cost basis of the loans. Our probabilities of default and severity are estimated using internal models based on historical loss experience of loans with similar risk characteristics that affect credit performance, such as debt service coverage ratio (“DSCR”), mark-to-market LTV ratio, collateral type, age, loan size, geography, prepayment penalty term and note type. Our models simulate a range of possible future economic scenarios, which are used to estimate probabilities of default and loss severities. Key inputs to our models include rental income, which drives expected DSCRs for our loans, and capitalization rates, which project future property values. Our reasonable and supportable forecasts for multifamily rental income and capitalization rates, which are projected based on Metropolitan Statistical Area data, extend through the contractual maturity of the loans. For TDRs, we use a discounted cash flow approach to estimate expected credit losses. When foreclosure of a multifamily loan is probable, the allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the fair value of the collateral as of the reporting date, adjusted for the estimated costs to sell the property. Allowance for Loan Losses Prior to the Adoption of the CECL Standard For periods prior to the adoption of the CECL standard, we maintained an allowance for loan losses for loans classified as held for investment, including both loans held in our portfolio and loans held in consolidated Fannie Mae MBS trusts. This amount was calculated to represent probable losses incurred related to loans in our consolidated balance sheets, including concessions granted to borrowers upon modifications of their loans, as of the balance sheet date. The allowance for loan losses was a valuation allowance that reflected an estimate of incurred credit losses related to our loans held for investment. Our allowance for loan losses consisted of a specific loss reserve for individually impaired loans and a collective loss reserve for all other loans. We established a specific single-family loss reserve for individually impaired loans, which included loans we restructured as TDRs. The single-family loss reserve for individually impaired loans represented the majority of our single-family loss reserves due to the high volume of restructured loans. We typically measured impairment based on the difference between our amortized cost (previously referred to as recorded investment) in the loan and the present value of the estimated cash flows we expected to receive, which we calculated using the effective interest rate of the original loan or the effective interest rate at acquisition for an acquired credit-impaired loan. However, when foreclosure was probable on an individually impaired loan, we measured impairment based on the difference between our amortized costs in the loan and the fair value of the underlying property, adjusted for the estimated discounted costs to sell the property and estimated insurance or other proceeds we expected to receive. When a loan was restructured or modified, we measured impairment using a cash flow analysis discounted at the loan’s original effective interest rate. We established a collective single-family loss reserve for all other single-family loans in our single-family guaranty book of business using a model that estimated the probability of default on these loans to derive a loss reserve estimate given multiple factors, such as origination year, mark-to-market LTV ratio, delinquency status and loan product type. The loss severity estimates we used in determining our loss reserves reflected current available information on actual events and conditions as of each balance sheet date, including current home prices. Our loss severity estimates did not incorporate assumptions about future changes in home prices. We did, however, 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. We established a collective multifamily loss reserve for all loans in our multifamily guaranty book of business that were not individually impaired using an internal model that applied loss factors to loans in similar risk categories. Our loss factors were developed based on our historical default and loss severity experience. Management could also apply judgment to adjust the loss factors derived from our models, taking into consideration model imprecision and specific known events, such as current credit conditions, that could affect the credit quality of our multifamily loan portfolio but were not yet reflected in our model-generated loss factors. We established a specific multifamily loss reserve for multifamily loans that we determined were individually impaired. We identified multifamily loans for evaluation for impairment through a credit risk assessment process. As part of this assessment process, we stratified multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan and management judgment. We categorized loan credit risk, taking into consideration available operating statements and expected cash flows from the underlying property, the estimated value of the property, the historical loan payment experience and current relevant market conditions that could impact credit quality. If we concluded that a multifamily loan was impaired, we measured the impairment based on the difference between our amortized cost in the loan and the fair value of the underlying property less the estimated discounted costs to sell the property and any lender loss sharing or other proceeds we expected to receive. When a multifamily loan was deemed individually impaired because we had modified it, we measured the impairment based on the difference between our amortized cost in the loan and the present value of expected cash flows discounted at the loan’s original interest rate unless foreclosure was probable, in which case we measured impairment the same way we measured it for other individually impaired multifamily loans. |
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, Real Estate Acquired Through Foreclosure | 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 amortized cost in the loan over the fair value less estimated costs to sell the property as a write-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 amortized cost in the loan is recognized first to recover any previously written-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 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. |
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.After offsetting, we report derivatives in a gain position in “Other assets” and derivatives in a loss position in “Other liabilities” 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. |
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 |
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. |
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. We invest in LIHTC projects and elect 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 |
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 | Earnings (Loss) per ShareEarnings (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.”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. |
New Accounting Pronouncements Policy | New Accounting Guidance The CARES Act and Interagency Regulatory Guidance The Coronavirus Aid, Relief, and Economic Security Act, referred to as the CARES Act, which was enacted in March 2020, provides temporary relief from the accounting and reporting requirements for TDRs regarding certain loan modifications related to COVID-19. In December of 2020, the temporary relief provided by the CARES Act was extended pursuant to the Consolidated Appropriations Act of 2021. The CARES Act as extended provides that a financial institution may elect to suspend the TDR requirements under GAAP for loan modifications related to the COVID-19 pandemic that occur between March 1, 2020 through the earlier of January 1, 2022 or 60 days after the date on which the COVID-19 national emergency terminates (the “Applicable Period”), as long as the loan was not more than 30 days delinquent as of December 31, 2019. Loan modifications as defined by the CARES Act include forbearance arrangements, repayment plans, interest rate modifications and any similar arrangements that defer or delay the payment of principal or interest. We have elected to account for eligible loan modifications under Section 4013 of the CARES Act. Therefore, the initial relief (i.e., the forbearance arrangement) and the subsequent agreements (i.e., repayment plans, payment deferrals and loan modifications) that are necessary to allow the borrower to repay the past due amounts (collectively, the “COVID-19 Relief”), will not be subject to the specialized accounting or disclosures that are required for TDRs if the initial relief related to COVID-19 is granted during the Applicable Period and the borrower was no more than 30 days past due as of December 31, 2019. In addition to the CARES Act, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau and the State Banking Regulators (collectively, the “Banking Agencies”) issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” (the “Interagency Statement”) in April 2020. The Interagency Statement primarily provides incremental guidance related to the nonaccrual of interest income. It indicates that financial institutions may continue to accrue interest income on loans that are granted short-term payment delays, such as forbearance, if the delay is in response to COVID-19 and the loan was less than 30 days past due at the time the delay was granted. Pursuant to the Interagency Statement, we continue to recognize interest income at the current contractual yield for up to six months of delinquency on loans that were current at March 1, 2020 and have been negatively impacted by COVID-19. For loans that are in a forbearance arrangement beyond six months of delinquency, we continue to accrue interest income provided collection of principal and interest continues to be reasonably assured. Our evaluation of whether the collection of principal and interest is reasonably assured considers the probability of default, the current value of the collateral and any proceeds that are expected from contractually attached mortgage insurance. Once the forbearance period has ended, we will also consider the extent to which the borrower and the servicer have agreed to any of the loss mitigation options that are available. Multifamily loans that are in a forbearance arrangement are placed on nonaccrual status when the borrower is six months past due unless the loan is both well secured and in the process of collection. Loans that have been placed on nonaccrual status are returned to accrual status when the loan is brought current through borrower reperformance. A single-family loan may also be returned to accrual status when the loan is brought current through a modification of the loan or a payment deferral. Multifamily loans that have been placed in a repayment plan or that have been brought current through a modification are returned to accrual status once the borrower has made six consecutive contractual payments under the terms of the repayment plan or the modified loan. For loans in a forbearance arrangement that are placed on nonaccrual status, cash payments for interest are applied as a reduction of accrued interest receivable until the receivable has been reduced to zero, and then recognized as interest income. If a loan is modified, any capitalized interest that has not been previously recognized as interest income is recorded as a discount to the loan and amortized over the life of the loan. For loans that have been negatively impacted by COVID-19, we establish a valuation allowance for expected credit losses on the accrued interest receivable balance applying the process that we have established for both single-family and multifamily loans. The credit expense related to this valuation allowance is classified as a component of the provision for credit losses. Accrued interest receivable is written off when the amount is deemed to be uncollectible, in accordance with our write-off policy for mortgage loans. Loans that are in active forbearance plans are not evaluated for write-off. As a result of this update to our application of our nonaccrual policy for loans negatively impacted by COVID-19, we recognized $2.8 billion in interest income in 2020. We also recognized $216 million of provision for loan losses on the related accrued interest receivable in 2020. Adoption of the CECL Standard As described above, the CECL standard became effective for our fiscal year beginning January 1, 2020. The adoption of the standard on January 1, 2020 reduced our retained earnings by $1.1 billion on an after-tax basis. 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 TDRs). The increase in our single-family and multifamily 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 key inputs, such as home price (single-family) or rental income (multifamily), in different economic environments over a reasonable and supportable period. The increase in loss reserves for the single-family portion of our book was low relative to its size due to the credit quality of these loans and because, as of the date of adoption, our current model forecasted home price growth. The allowance for loan losses on the TDR book was already measured using an expected lifetime credit loss estimate. The credit losses on this portion of our single-family book decreased upon the adoption of the CECL standard 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 the CECL standard, we incorporated these costs in our estimate of credit losses for this book. Impacts on Key Balance Sheet Line Items upon Implementation of the CECL Standard The following table discloses the impact of adopting the CECL standard on key balance sheet line items. Balance as of December 31, 2019 Transition Impact of Adoption of the CECL Standard Balance as of January 1, 2020 (Dollars in millions) Mortgage loans held for sale $ 6,773 $ 50 $ 6,823 Allowance for loan losses (9,016) (1,722) (10,738) Other assets (1) 14,312 230 14,542 Deferred tax assets, net 11,910 303 12,213 Accumulated deficit (beginning retained earnings) (118,776) (1,139) (119,915) (1) Transition adjustment primarily represents the reclassification and recognition of freestanding credit enhancements not contractually attached to the loan. For a discussion of the current-period measurement of our allowance for loan losses under the CECL standard, including the expected impact of the COVID-19 pandemic, see “Note 4, Allowance for Loan Losses.” Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional temporary relief to ease the potential burden of transitioning away from LIBOR and other discontinued interest rates. Specifically, ASU 2020-04 provides optional practical expedients and exceptions under GAAP related to contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued. Qualifying for the accounting relief provided by ASU 2020-04 is subject to meeting certain criteria and is generally only available to contract modifications made and hedging relationships entered into or evaluated prospectively from March 12, 2020 through December 31, 2022. In May 2020, we modified trust agreements governing our Fannie Mae REMIC and other multi-class transactions issued prior to July 2013 that are backed by floating rate or reverse floating rate securities to include fallback provisions in order to ease the potential burden of transitioning away from LIBOR. The update to the fallback language in the Omnibus Trust Supplement qualified for the accounting relief provided by ASU 2020-04, and we accounted for the update as a modification to the existing agreements. The impact of the May 2020 agreement modifications governing Fannie Mae REMIC and multi-class transactions issued prior to July 2013 was not material to Fannie Mae. We had no hedge accounting relationships between March 12, 2020 and December 31, 2020. We will continue to evaluate ASU 2020-04 to determine the timing and extent to which we will apply the provided accounting relief. On January 7, 2021, the FASB issued ASU 2021-01, an update to ASU 2020-04, which clarifies the scope of the optional relief for reference rate reform provided by ASC Topic 848. The ASU permits entities to apply certain of the optional practical expedients and exceptions in ASC 848 to the accounting for derivative contracts and hedging activities that may be affected by changes in interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest (the “discounting transition”). These optional practical expedients and exceptions may be applied to derivative instruments impacted by the discounting transition even if such instruments do not reference a rate that is expected to be discontinued. The ASU is effective immediately and an entity may elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. The adoption of this ASU is not expected to have a material impact on our financial statements. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 whether 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 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. Uniform Mortgage-Backed Securities (“UMBS”) Uniform Mortgage-Backed Securities (“UMBS”) are common mortgage-backed securities issued by both Fannie Mae and Freddie Mac to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. We and Freddie Mac began issuing UMBS in June 2019. We and Freddie Mac also began resecuritizing UMBS certificates into structured securities in June 2019. The structured securities backed by UMBS that we issue include Supers, which are single-class resecuritization transactions, Real Estate Mortgage Investment Conduit securities (“REMICs”) and interest-only and principal-only strip securities (“SMBS”), which are multi-class resecuritization transactions. Since June 2019, we have resecuritized UMBS, Supers and other structured securities issued by Freddie Mac. The mortgage loans that serve as collateral for Freddie Mac-issued UMBS are not held in trusts that are consolidated by Fannie Mae. When we include Freddie Mac securities in our structured securities, we are subject to additional credit risk because we guarantee securities that were not previously guaranteed by Fannie Mae. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We have concluded that this additional credit risk is negligible because of the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury. Prior to June 2019, 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. Single-Class Securitization Trusts We create single-class securitization trusts to issue single-class Fannie Mae MBS (including UMBS) that evidence an undivided interest in the mortgage loans held in the trust. Investors in single-class Fannie Mae MBS receive principal and interest payments in proportion to their percentage ownership of the MBS issuance. We guarantee to each single-class securitization trust that we will supplement amounts received by the securitization trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie Mae MBS. Single-class securitization trusts are used for lender swap and portfolio securitization transactions. A lender swap transaction occurs when a mortgage lender delivers a pool of single-family mortgage loans to us, which we immediately deposit into an MBS trust. The MBS are then issued to the lender in exchange for the mortgage loans. A portfolio securitization transaction occurs when we purchase mortgage loans from third-party sellers for cash and later deposit these loans into an MBS trust. The securities issued through a portfolio securitization are then sold to investors for cash. We consolidate single-class securitization trusts that are issued under these programs when our role as guarantor and master servicer provides us with the power to direct matters, such as the servicing of the 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 (for example, when the loan collateral is subject to a Federal Housing Administration guaranty and related Servicing Guide). When we purchase single-class Fannie Mae MBS issued from a consolidated trust, we account for the transaction as an extinguishment of the related debt in our consolidated financial statements. We record a gain or loss on the extinguishment of such debt to the extent that the purchase price of the MBS does not equal the carrying value of the related consolidated debt reported in our consolidated balance sheets (including unamortized premiums, discounts or other cost basis adjustments) at the time of purchase. When we sell single-class Fannie Mae MBS that were issued from a consolidated trust, we account for the transaction as the issuance of debt in our consolidated financial statements. We amortize the related premiums, discounts and other cost basis adjustments into income over the contractual life of the MBS. If a single-class securitization trust is not consolidated, we account for the purchase and subsequent sale of such securities as the transfer of an investment security in accordance with the accounting guidance for transfers of financial assets. Single-Class Resecuritization Trusts Fannie Mae single-class resecuritization trusts are created by depositing MBS into a new securitization trust for the purpose of aggregating multiple mortgage-related securities into one combined security. Single-class resecuritization securities pass through directly to the holders of the securities all of the cash flows of the underlying MBS held in the trust. Since June 2019, these securities can be collateralized directly or indirectly by cash flows from underlying securities issued by Fannie Mae, Freddie Mac, or a combination of both. Resecuritization trusts backed directly or indirectly only by Fannie Mae MBS are non-commingled resecuritization trusts. Resecuritization trusts collateralized directly or indirectly by cash flows either in part or in whole from Freddie Mac MBS are commingled resecuritization trusts. Securities issued by our non-commingled single-class resecuritization trusts are backed solely by Fannie Mae MBS, and the guaranty we provide on the trust does not subject us to additional credit risk because we have already provided a guarantee on the underlying securities. Further, the securities issued by our non-commingled single-class resecuritization trusts pass through all of the cash flows of the underlying Fannie Mae MBS directly to the holders of the securities. Accordingly, these securities are deemed to be substantially the same as the underlying Fannie Mae MBS collateral. Additionally, our involvement with these trusts does not provide us with any incremental rights or powers that would enable us to direct any activities of the trusts. We have concluded that we are not the primary beneficiary of and, as a result, we do not consolidate our non-commingled single-class resecuritization trusts. Therefore, we account for purchases and sales of securities issued by non-commingled single-class resecuritization trusts as extinguishments and issuances of the underlying MBS debt, respectively. Securities issued by our commingled single-class resecuritization trusts are backed in whole or in part by Freddie Mac securities. As discussed in “Note 6, Financial Guarantees,” the guaranty we provide to the commingled single-class resecuritization trust subjects us to additional credit risk to the extent that we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. Accordingly, securities issued by our commingled resecuritization trusts are not deemed to be substantially the same as the underlying collateral. We do not have any incremental rights or powers related to commingled single-class resecuritization trusts that would enable us to direct any activities of the underlying trust. As a result, we have concluded that we are not the primary beneficiary of, and therefore do not consolidate, our commingled single-class resecuritization trusts unless we have the unilateral right to dissolve the trust. We have this right when we hold 100% of the beneficial interests issued by the resecuritization trust. Therefore, we account for purchases and sales of these securities as the transfer of an investment security. Multi-Class Resecuritization Trusts Multi-class resecuritization trusts are trusts we create to issue multi-class Fannie Mae structured securities, including REMICs and SMBS, in which the cash flows of the underlying mortgage assets are divided, creating several classes of securities, each of which represents a beneficial ownership interest in a separate portion of cash flows. We guarantee to each multi-class resecuritization trust that we will supplement amounts received by the trusts as required to permit timely guaranty payments on the related Fannie Mae structured securities. Since June 2019, these multi-class structured securities can be collateralized, directly or indirectly, by securities issued by Fannie Mae, Freddie Mac or a combination of both. The guaranty we provide to our non-commingled multi-class resecuritization trusts does not subject us to additional credit risk , because the underlying assets are Fannie Mae-issued securities for which we have already provided a guaranty. However, for commingled multi-class structured securities, we are subject to additional credit risk to the extent we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. For both commingled and non-commingled multi-class resecuritization trusts, we may also be exposed to prepayment risk via our ownership of securities issued by these trusts. We do not have the ability via our involvement with a multi-class resecuritization trust to impact either the credit risk or prepayment risk to which we are exposed. Therefore, we have concluded that we do not have the characteristics of a controlling financial interest and do not consolidate multi-class resecuritization trusts unless we have the unilateral right to dissolve the trust as noted below. Securities issued by multi-class resecuritization trusts do not directly pass through all of the cash flows of the underlying securities, and therefore the issued and underlying securities are not considered substantially the same. Accordingly, we account for purchases and sales of securities issued by the multi-class resecuritization trusts as purchases and sales of investment securities. Since June 2019, we may include UMBS, Supers and other structured securities that are either issued or backed by securities issued by Freddie Mac in our resecuritization trusts. As a result, we adopted a consolidation threshold for multi-class resecuritization trusts that is based on our ability to unilaterally dissolve the resecuritization trust. This ability exists only when we hold 100% of the outstanding beneficial interests issued by the resecuritization trust. This change in the consolidation threshold was applied prospectively upon the introduction of UMBS in the second quarter of 2019 and prior-period amounts were not recast. Prior to the introduction of UMBS, we consolidated multi-class resecuritization trusts when we held a substantial portion of the 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. |
Principles of Consolidation Policy | Principles of Consolidation Our consolidated financial statements include our accounts as well as the accounts of the other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in an entity such as a variable interest entity (“VIE”) through arrangements that do not involve voting interests. |
Comprehensive Text Block List (
Comprehensive Text Block List (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Allowance for Loan Losses Policy | Allowance for Loan Losses The Current Expected Credit Loss Standard 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”) replaced the 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 as described below 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). Allowance for Loan Losses Our allowance for loan losses is a valuation account that is deducted from the amortized cost basis of HFI loans to present the net amount expected to be collected on the loans. The allowance for loan losses reflects an estimate of expected credit losses on single-family and multifamily HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. Estimates of credit losses are based on expected cash flows derived from internal models that estimate loan performance under simulated ranges of economic environments. Our modeled loan performance is based on our historical experience of loans with similar risk characteristics, adjusted to reflect current conditions and reasonable and supportable forecasts. Our historical loss experience and our credit loss estimates capture the possibility of remote events that could result in credit losses on loans that are considered low risk. The allowance for loan losses does not consider benefits from freestanding credit enhancements, such as our CAS and CIRT programs and multifamily DUS lender risk-sharing arrangements, which are recorded in “Other assets” in our consolidated balance sheets. For loans that were current as of March 1, 2020 and subsequently became delinquent or entered into forbearance during the COVID-19 pandemic, see changes to our allowance for loan losses in the section on “New Accounting Guidance” below. For loans not subject to the COVID-19 related guidance, we have elected not to measure an allowance for credit losses on accrued interest receivable balances as we have a nonaccrual policy to ensure the timely reversal of unpaid accrued interest. See “Note 4, Allowance for Loan Losses” for additional information about our current-period provision for loan losses, including a discussion of the estimates used in measuring the impact of the COVID-19 pandemic on our allowance. Changes to our estimate of expected credit losses, including changes due to the passage of time, are recorded through the benefit (provision) for credit losses. When calculating our allowance for loan losses, we consider only our amortized cost in the loans at the balance sheet date. We record write-offs as a reduction to the allowance for loan losses when losses are confirmed through the receipt of assets in satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale. Additionally, we record write-offs as a reduction to our allowance for loan losses when a loan is determined to be uncollectible, upon the transfer of a nonperforming loan from HFI to HFS and pursuant to the write-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”). |
Risks and Uncertainties (Polici
Risks and Uncertainties (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Financing Receivable, Real Estate Acquired Through Foreclosure | 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 amortized cost in the loan over the fair value less estimated costs to sell the property as a write-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 amortized cost in the loan is recognized first to recover any previously written-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. |
Netting Arrangements (Policies)
Netting Arrangements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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.After offsetting, we report derivatives in a gain position in “Other assets” and derivatives in a loss position in “Other liabilities” 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. |
Fair Value (Policies)
Fair Value (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial InstrumentsThe 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.” |
Fair Value Measurements | 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 Option We elected the fair value option for loans and debt that 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. |
Commitments and Contingencies (
Commitments and Contingencies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. |
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 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. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | The following table discloses the impact of adopting the CECL standard on key balance sheet line items. Balance as of December 31, 2019 Transition Impact of Adoption of the CECL Standard Balance as of January 1, 2020 (Dollars in millions) Mortgage loans held for sale $ 6,773 $ 50 $ 6,823 Allowance for loan losses (9,016) (1,722) (10,738) Other assets (1) 14,312 230 14,542 Deferred tax assets, net 11,910 303 12,213 Accumulated deficit (beginning retained earnings) (118,776) (1,139) (119,915) (1) Transition adjustment primarily represents the reclassification and recognition of freestanding credit enhancements not contractually attached to the loan. |
Consolidations and Transfers _2
Consolidations and Transfers of Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (Dollars in millions) Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts: Assets: Trading securities: Fannie Mae $ 1,611 $ 2,543 Non-Fannie Mae 3,608 5,100 Total trading securities 5,219 7,643 Available-for-sale securities: Fannie Mae 1,168 1,524 Non-Fannie Mae 318 574 Total available-for-sale securities 1,486 2,098 Other assets 41 56 Other liabilities (67) (78) Net carrying amount $ 6,679 $ 9,719 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 and allowance for loan losses. As of December 31, 2020 2019 (Dollars in millions) Single-family $ 3,216,146 $ 2,972,361 Multifamily 373,722 327,593 Total unpaid principal balance of mortgage loans 3,589,868 3,299,954 Cost basis and fair value adjustments, net 74,576 43,224 Allowance for loan losses for HFI loans (10,552) (9,016) Total mortgage loans (1) $ 3,653,892 $ 3,334,162 (1) Excludes $9.8 billion and $8.4 billion of accrued interest receivable, net of allowance as of December 31, 2020 and 2019, respectively. The following tables display information about our redesignation of loans, and the sales of mortgage loans during the period. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Single family loans redesignated from HFI to HFS: Amortized cost $ 8,309 $ 18,245 $ 23,494 Lower of cost or fair value adjustment at time of redesignation (1) (291) (995) (1,478) Allowance reversed at time of redesignation 963 2,484 3,385 Single family loans redesignated from HFS to HFI: Amortized cost $ 144 $ 28 $ 46 Allowance established at time of redesignation (15) (1) (2) Single-family loans sold: Unpaid principal balance $ 9,519 $ 19,737 $ 21,918 Realized gains, net 831 1,238 444 (1) Consists of the write-off against the allowance at the time of redesignation. As of December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175) $ (45) $ (8,220) Collectively reserved loans (584) (212) (796) Total allowance for loan losses $ (8,759) $ (257) $ (9,016) Amortized cost in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 Collectively reserved loans 2,909,115 329,938 3,239,053 Total amortized cost in loans $ 3,006,311 $ 330,618 $ 3,336,929 |
Aging Analysis | The following tables display an aging analysis of the total amortized cost of our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option. Pursuant to the CARES Act, for purposes of reporting to the credit bureaus, servicers must report a borrower receiving a COVID-19-related payment accommodation during the covered period, such as a forbearance plan or loan modification, as current if the borrower was current prior to receiving the accommodation and the borrower makes all required payments in accordance with the accommodation. For purposes of our disclosures regarding delinquency status, we report loans receiving COVID-19-related payment forbearance as delinquent according to the contractual terms of the loan. The increase in loans classified as delinquent as of December 31, 2020 compared with December 31, 2019 was primarily attributable to the economic dislocation caused by the COVID-19 pandemic. As of December 31, 2020 30 - 59 Days 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Loans 90 Days or More Delinquent and Accruing Interest Nonaccrual Loans with No Allowance (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 24,928 $ 9,414 $ 88,276 $ 122,618 $ 2,619,585 $ 2,742,203 $ 68,526 $ 6,028 15-year or less, amortizing fixed-rate 1,987 601 5,028 7,616 449,443 457,059 4,292 240 Adjustable-rate 268 97 1,143 1,508 29,933 31,441 907 114 Other (2) 1,150 458 5,037 6,645 47,937 54,582 2,861 771 Total single-family 28,333 10,570 99,484 138,387 3,146,898 3,285,285 76,586 7,153 Multifamily (3) 1,140 N/A 3,688 4,828 372,598 377,426 610 302 Total $ 29,473 $ 10,570 $ 103,172 $ 143,215 $ 3,519,496 $ 3,662,711 $ 77,196 $ 7,455 As of December 31, 2019 30 - 59 Days Delinquent 60 - 89 Days Delinquent Seriously Delinquent (1) Total Delinquent Current Total Loans 90 Days or More Delinquent and Accruing Interest (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 26,882 $ 7,126 $ 13,082 $ 47,090 $ 2,470,457 $ 2,517,547 $ 28 15-year or less, amortizing fixed-rate 1,616 286 445 2,347 371,740 374,087 — Adjustable-rate 412 85 167 664 44,244 44,908 — Other (2) 2,323 829 1,891 5,043 64,726 69,769 136 Total single-family 31,233 8,326 15,585 55,144 2,951,167 3,006,311 164 Multifamily (3) 7 N/A 115 122 330,496 330,618 — Total $ 31,240 $ 8,326 $ 15,700 $ 55,266 $ 3,281,663 $ 3,336,929 $ 164 (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) Reverse mortgage loans included in “Other” are not aged due to their nature 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 amortized cost in our single-family HFI loans by class, year of origination and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower’s equity in the home decreases, which may negatively affect the borrower’s ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan. As of December 31, 2020, by Year of Origination (1) 2020 2019 2018 2017 2016 Prior Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) 20- and 30-year or more, amortizing fixed-rate: Less than or equal to 80% $ 794,156 $ 233,994 $ 135,849 $ 183,315 $ 221,172 $ 775,636 $ 2,344,122 Greater than 80% and less than or equal to 90% 157,500 85,227 23,440 5,270 1,592 5,958 278,987 Greater than 90% and less than or equal to 100% 109,743 4,186 820 250 124 1,994 117,117 Greater than 100% 28 7 28 77 81 1,756 1,977 Total 20 and 30-year or more, amortizing fixed-rate 1,061,427 323,414 160,137 188,912 222,969 785,344 2,742,203 15-year or less, amortizing fixed-rate: Less than or equal to 80% 181,418 41,374 15,768 31,497 46,088 132,596 448,741 Greater than 80% and less than or equal to 90% 6,105 811 35 14 8 20 6,993 Greater than 90% and less than or equal to 100% 1,274 9 3 4 3 10 1,303 Greater than 100% — — 3 3 3 13 22 Total 15-year or less, amortizing fixed-rate 188,797 42,194 15,809 31,518 46,102 132,639 457,059 Adjustable-rate: Less than or equal to 80% 2,935 1,839 2,412 4,765 2,678 16,248 30,877 Greater than 80% and less than or equal to 90% 234 152 79 19 5 12 501 Greater than 90% and less than or equal to 100% 56 3 1 — — 2 62 Greater than 100% — — — — — 1 1 Total adjustable-rate 3,225 1,994 2,492 4,784 2,683 16,263 31,441 Other: Less than or equal to 80% — 41 328 811 1,028 36,216 38,424 Greater than 80% and less than or equal to 90% — 2 20 43 30 1,298 1,393 Greater than 90% and less than or equal to 100% — 2 8 16 10 602 638 Greater than 100% — — 4 8 9 631 652 Total other — 45 360 878 1,077 38,747 41,107 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 Total for all classes by LTV ratio: (2) Less than or equal to 80% $ 978,509 $ 277,248 $ 154,357 $ 220,388 $ 270,966 $ 960,696 $ 2,862,164 Greater than 80% and less than or equal to 90% 163,839 86,192 23,574 5,346 1,635 7,288 287,874 Greater than 90% and less than or equal to 100% 111,073 4,200 832 270 137 2,608 119,120 Greater than 100% 28 7 35 88 93 2,401 2,652 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 As of December 31, 2019 (1) 20- and 30-Year or More, Amortizing Fixed-Rate 15-Year or Less, Amortizing Fixed-Rate Adjustable-Rate Other Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) Less than or equal to 80% $ 2,145,018 $ 368,181 $ 43,415 $ 47,005 $ 2,603,619 Greater than 80% and less than or equal to 90% 237,623 4,556 1,275 2,872 246,326 Greater than 90% and less than or equal to 100% 130,152 1,284 215 1,398 133,049 Greater than 100% 4,754 66 3 1,365 6,188 Total $ 2,517,547 $ 374,087 $ 44,908 $ 52,640 $ 2,989,182 (1) Excludes $13.5 billion and $17.1 billion as of December 31, 2020 and 2019, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, which represents 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. |
Troubled Debt Restructurings Activity | The following table displays the number of loans and amortized cost of loans classified as a TDR during the period. For the Year Ended December 31, 2020 2019 2018 Number of Loans Amortized Cost Number of Loans Amortized Cost Number of Loans Amortized Cost (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed rate 29,938 $ 5,125 43,283 $ 7,140 79,397 $ 12,485 15-year or less, amortizing fixed rate 2,956 257 4,762 424 8,953 823 Adjustable-rate 467 72 813 123 844 129 Other 1,688 211 3,001 403 6,618 916 Total single-family 35,049 5,665 51,859 8,090 95,812 14,353 Multifamily — — 11 56 14 74 Total TDRs 35,049 $ 5,665 51,870 $ 8,146 95,826 $ 14,427 For loans that defaulted in the period presented and that were classified as a TDR in the twelve months prior to the default, the following table displays the number of loans and the amortized cost of these loans at the time of payment default. For 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, 2020 2019 2018 Number of Loans Amortized Cost Number of Loans Amortized Cost Number of Loans Amortized Cost (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed rate 14,127 $ 2,578 15,189 $ 2,366 18,344 $ 2,675 15-year or less, amortizing fixed rate 148 10 594 45 206 15 Adjustable-rate 16 2 91 14 63 8 Other 1,291 208 1,975 315 3,129 523 Total single-family 15,582 2,798 17,849 2,740 21,742 3,221 Multifamily 4 16 2 18 2 3 Total TDRs that subsequently defaulted 15,586 $ 2,814 17,851 $ 2,758 21,744 $ 3,224 |
Financing Receivable, Nonaccrual | The table below displays the forgone interest and the accrued interest receivable written off through the reversal of interest income for nonaccrual loans. For updates to our application of our nonaccrual policy for loans negatively impacted by the COVID-19 pandemic, see “Note 1, Summary of Significant Accounting Policies.” For the Year Ended December 31, 2020 (Dollars in millions) Single-family: Interest income forgone (1) $ 739 Accrued interest receivable written off through the reversal of interest income 206 Multifamily: Interest income forgone (1) $ 19 Accrued interest receivable written off through the reversal of interest income 19 (1) For loans on nonaccrual status held as of period end, represents the amount of interest income we did not recognize but would have recognized if the loans had performed in accordance with their original contractual terms. The table below includes the amortized cost of and interest income recognized on our HFI single-family and multifamily loans on nonaccrual status by class, excluding loans for which we have elected the fair value option. As of December 31, For the Year Ended December 31, 2020 2020 2019 Amortized Cost Total Interest Income Recognized (1) (Dollars in millions) Single-family: 20- and 30-year or more, amortizing fixed-rate $ 22,907 $ 23,427 $ 461 15-year or less, amortizing fixed-rate 853 858 15 Adjustable-rate 270 288 5 Other 2,475 2,973 43 Total single-family 26,505 27,546 524 Multifamily 2,069 435 59 Total nonaccrual loans $ 28,574 $ 27,981 $ 583 (1) Single-family interest income recognized includes amounts accrued while the loans were performing, including the amortization of any deferred cost basis adjustments, as well as payments received on nonaccrual loans, for nonaccrual loans held as of period end. Multifamily interest income recognized includes amounts accrued while the loans were performing and the amortization of any deferred cost basis adjustments, for nonaccrual loans held as of period end. |
Individually Impaired Loans | The following tables display the unpaid principal balance, total amortized cost and related allowance for loan losses as of December 31, 2019 and average amortized cost, total interest income recognized and interest income recognized on a cash basis for individually impaired loans for the years ended December 31, 2019 and 2018. As of December 31, 2019 Unpaid Principal Balance Total Amortized Cost Related Allowance for Loan Losses (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: 20- and 30-year or more, amortizing fixed-rate $ 63,091 $ 61,033 $ (5,851) 15-year or less, amortizing fixed-rate 954 960 (24) Adjustable-rate 156 157 (9) Other 15,181 14,078 (2,291) Total single-family 79,382 76,228 (8,175) Multifamily 314 315 (45) Total individually impaired loans with related allowance recorded 79,696 76,543 (8,220) With no related allowance recorded: (1) Single-family: 20- and 30-year or more, amortizing fixed-rate 18,372 17,578 — 15-year or less, amortizing fixed-rate 410 407 — Adjustable-rate 265 265 — Other 3,014 2,718 — Total single-family 22,061 20,968 — Multifamily 363 365 — Total individually impaired loans with no related allowance recorded 22,424 21,333 — Total individually impaired loans (2) $ 102,120 $ 97,876 $ (8,220) (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 an amortized cost of $96.9 billion as of December 31, 2019. Includes multifamily loans restructured in a TDR with an amortized cost of $102 million as of December 31, 2019. For the Year Ended December 31, 2019 2018 Average Amortized Cost Total Interest Income Recognized Interest Income Recognized on a Cash Basis Average Amortized Cost Total Interest Income Recognized Interest Income Recognized on a Cash Basis (Dollars in millions) Individually impaired loans: With related allowance recorded: Single-family: 20- and 30-year or more, amortizing fixed-rate $ 69,731 $ 2,908 $ 260 $ 83,498 $ 3,463 $ 372 15-year or less, amortizing fixed-rate 1,176 40 3 1,410 53 8 Adjustable-rate 141 6 1 154 6 1 Other 17,125 705 51 25,170 1,039 76 Total single-family 88,173 3,659 315 110,232 4,561 457 Multifamily 287 7 — 235 3 — Total individually impaired loans with related allowance recorded 88,460 3,666 315 110,467 4,564 457 With no related allowance recorded: (1) Single-family: 20- and 30-year or more, amortizing fixed-rate 15,569 977 143 14,347 938 113 15-year or less, amortizing fixed-rate 339 15 4 192 10 4 Adjustable-rate 331 15 2 466 19 2 Other 2,836 212 20 3,489 278 22 Total single-family 19,075 1,219 169 18,494 1,245 141 Multifamily 375 31 — 336 14 — Total individually impaired loans with no related allowance recorded 19,450 1,250 169 18,830 1,259 141 Total individually impaired loans $ 107,910 $ 4,916 $ 484 $ 129,297 $ 5,823 $ 598 (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. |
Single-Family [Member] | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Aging Analysis | The following table displays the total amortized cost in our single-family HFI loans by class, year of origination and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower’s equity in the home decreases, which may negatively affect the borrower’s ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan. As of December 31, 2020, by Year of Origination (1) 2020 2019 2018 2017 2016 Prior Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) 20- and 30-year or more, amortizing fixed-rate: Less than or equal to 80% $ 794,156 $ 233,994 $ 135,849 $ 183,315 $ 221,172 $ 775,636 $ 2,344,122 Greater than 80% and less than or equal to 90% 157,500 85,227 23,440 5,270 1,592 5,958 278,987 Greater than 90% and less than or equal to 100% 109,743 4,186 820 250 124 1,994 117,117 Greater than 100% 28 7 28 77 81 1,756 1,977 Total 20 and 30-year or more, amortizing fixed-rate 1,061,427 323,414 160,137 188,912 222,969 785,344 2,742,203 15-year or less, amortizing fixed-rate: Less than or equal to 80% 181,418 41,374 15,768 31,497 46,088 132,596 448,741 Greater than 80% and less than or equal to 90% 6,105 811 35 14 8 20 6,993 Greater than 90% and less than or equal to 100% 1,274 9 3 4 3 10 1,303 Greater than 100% — — 3 3 3 13 22 Total 15-year or less, amortizing fixed-rate 188,797 42,194 15,809 31,518 46,102 132,639 457,059 Adjustable-rate: Less than or equal to 80% 2,935 1,839 2,412 4,765 2,678 16,248 30,877 Greater than 80% and less than or equal to 90% 234 152 79 19 5 12 501 Greater than 90% and less than or equal to 100% 56 3 1 — — 2 62 Greater than 100% — — — — — 1 1 Total adjustable-rate 3,225 1,994 2,492 4,784 2,683 16,263 31,441 Other: Less than or equal to 80% — 41 328 811 1,028 36,216 38,424 Greater than 80% and less than or equal to 90% — 2 20 43 30 1,298 1,393 Greater than 90% and less than or equal to 100% — 2 8 16 10 602 638 Greater than 100% — — 4 8 9 631 652 Total other — 45 360 878 1,077 38,747 41,107 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 Total for all classes by LTV ratio: (2) Less than or equal to 80% $ 978,509 $ 277,248 $ 154,357 $ 220,388 $ 270,966 $ 960,696 $ 2,862,164 Greater than 80% and less than or equal to 90% 163,839 86,192 23,574 5,346 1,635 7,288 287,874 Greater than 90% and less than or equal to 100% 111,073 4,200 832 270 137 2,608 119,120 Greater than 100% 28 7 35 88 93 2,401 2,652 Total $ 1,253,449 $ 367,647 $ 178,798 $ 226,092 $ 272,831 $ 972,993 $ 3,271,810 As of December 31, 2019 (1) 20- and 30-Year or More, Amortizing Fixed-Rate 15-Year or Less, Amortizing Fixed-Rate Adjustable-Rate Other Total (Dollars in millions) Estimated mark-to-market LTV ratio: (2) Less than or equal to 80% $ 2,145,018 $ 368,181 $ 43,415 $ 47,005 $ 2,603,619 Greater than 80% and less than or equal to 90% 237,623 4,556 1,275 2,872 246,326 Greater than 90% and less than or equal to 100% 130,152 1,284 215 1,398 133,049 Greater than 100% 4,754 66 3 1,365 6,188 Total $ 2,517,547 $ 374,087 $ 44,908 $ 52,640 $ 2,989,182 (1) Excludes $13.5 billion and $17.1 billion as of December 31, 2020 and 2019, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, which represents 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 amortized cost of our multifamily HFI loans by year of origination and credit-risk rating, excluding loans for which we have elected the fair value option. Property rental income and property valuations are key inputs to our internally assigned credit risk ratings. As of December 31, 2020, by Year of Origination 2020 2019 2018 2017 2016 Prior Total (Dollars in millions) Internally assigned credit risk rating: Non-classified (1) $ 71,977 $ 68,296 $ 62,087 $ 50,907 $ 43,174 $ 70,933 $ 367,374 Classified (2) 37 1,041 1,529 2,616 1,579 3,250 10,052 Total $ 72,014 $ 69,337 $ 63,616 $ 53,523 $ 44,753 $ 74,183 $ 377,426 As of December 31, 2019 (Dollars in millions) Credit risk profile by internally assigned grade: Non-classified (1) $ 323,773 Classified (2) 6,845 Total $ 330,618 (1) A loan categorized as “Non-classified” is current or adequately protected by the current financial strength and debt service capability of the borrower. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Allowance for Loan Losses Roll Forward by Segment | The following table displays changes in our allowance for single-family loans, multifamily loans and total allowance for loan losses, including the transition impact of adopting the CECL standard. The provision for loan losses excludes provision for accrued interest receivable losses, guaranty loss reserves and credit losses on AFS debt securities. Cumulatively, these expenses are recognized as “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income. For the Year Ended December 31, 2020 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (8,759) Transition impact of the adoption of the CECL standard (1,229) Benefit for loan losses 127 Write-offs 457 Recoveries (93) Other 153 Ending Balance $ (9,344) Multifamily allowance for loan losses: Beginning balance $ (257) Transition impact of the adoption of the CECL standard (493) Provision for loan losses (593) Write-offs 136 Recoveries (1) Ending Balance $ (1,208) Total allowance for loan losses: Beginning balance $ (9,016) Transition impact of the adoption of the CECL standard (1,722) Provision for loan losses (466) Write-offs 593 Recoveries (94) Other 153 Ending Balance $ (10,552) | The following tables display changes in single-family and multifamily allowance for loan losses for the years ended 2019 and 2018 and the amortized cost in our HFI loans by impairment or allowance methodology and portfolio segment as of each year-end prior to the adoption of the CECL standard. For a description of our previous allowance and impairment methodology refer to “Note 1, Summary of Significant Accounting Policies.” For the Year Ended December 31, 2019 2018 (Dollars in millions) Single-family allowance for loan losses: Beginning balance $ (13,969) $ (18,849) Benefit for loan losses 3,988 2,990 Write-offs 1,299 2,148 Recoveries (71) (240) Other (6) (18) Ending Balance $ (8,759) $ (13,969) Multifamily allowance for loan losses: Beginning balance $ (234) $ (235) Provision for loan losses (27) (3) Write-offs 8 4 Recoveries (4) — Ending Balance $ (257) $ (234) Total allowance for loan losses: Beginning balance $ (14,203) $ (19,084) Benefit for loan losses 3,961 2,987 Write-offs 1,307 2,152 Recoveries (75) (240) Other (6) (18) Ending Balance $ (9,016) $ (14,203) |
Allowance for Loan Losses and Total Recorded Investment in HFI Loans | The following table displays the carrying value of our mortgage loans and allowance for loan losses. As of December 31, 2020 2019 (Dollars in millions) Single-family $ 3,216,146 $ 2,972,361 Multifamily 373,722 327,593 Total unpaid principal balance of mortgage loans 3,589,868 3,299,954 Cost basis and fair value adjustments, net 74,576 43,224 Allowance for loan losses for HFI loans (10,552) (9,016) Total mortgage loans (1) $ 3,653,892 $ 3,334,162 (1) Excludes $9.8 billion and $8.4 billion of accrued interest receivable, net of allowance as of December 31, 2020 and 2019, respectively. The following tables display information about our redesignation of loans, and the sales of mortgage loans during the period. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Single family loans redesignated from HFI to HFS: Amortized cost $ 8,309 $ 18,245 $ 23,494 Lower of cost or fair value adjustment at time of redesignation (1) (291) (995) (1,478) Allowance reversed at time of redesignation 963 2,484 3,385 Single family loans redesignated from HFS to HFI: Amortized cost $ 144 $ 28 $ 46 Allowance established at time of redesignation (15) (1) (2) Single-family loans sold: Unpaid principal balance $ 9,519 $ 19,737 $ 21,918 Realized gains, net 831 1,238 444 (1) Consists of the write-off against the allowance at the time of redesignation. As of December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Allowance for loan losses by segment: Individually impaired loans $ (8,175) $ (45) $ (8,220) Collectively reserved loans (584) (212) (796) Total allowance for loan losses $ (8,759) $ (257) $ (9,016) Amortized cost in loans by segment: Individually impaired loans $ 97,196 $ 680 $ 97,876 Collectively reserved loans 2,909,115 329,938 3,239,053 Total amortized cost in loans $ 3,006,311 $ 330,618 $ 3,336,929 |
Investments in Securities (Tabl
Investments in Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Trading Securities | The following table displays our investments in trading securities. As of December 31, 2020 2019 (Dollars in millions) Mortgage-related securities: Fannie Mae $ 2,404 $ 3,424 Other agency (1) 3,451 4,490 Private-label and other mortgage securities 158 629 Total mortgage-related securities (includes $793 million and $896 million, respectively, related to consolidated trusts) 6,013 8,543 Non-mortgage-related securities: U.S. Treasury securities 130,456 39,501 Other securities 73 79 Total non-mortgage-related securities 130,529 39,580 Total trading securities $ 136,542 $ 48,123 (1) Consists of Freddie Mac and Ginnie Mae mortgage-related securities. |
Schedule of Trading Securities Gains (Losses), Net | The following table displays information about our net trading gains. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Net trading gains $ 513 $ 322 $ 126 Net trading gains recognized in the period related to securities still held at period end 252 238 55 |
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, 2020 2019 2018 (Dollars in millions) Gross realized gains $ 57 $ 265 $ 375 Total proceeds (excludes initial sale of securities from new portfolio securitizations) 361 537 662 |
Schedule of Available-for-sale Securities Reconciliation | The following tables display the amortized cost, allowance for credit losses, gross unrealized gains and losses in accumulated other comprehensive income (loss) (“AOCI”), and fair value by major security type for AFS securities. As of December 31, 2020 Total Amortized Cost (1) Allowance for Credit Losses Gross Unrealized Gains in AOCI Gross Unrealized Losses in AOCI Total Fair Value (1) (Dollars in millions) Fannie Mae $ 1,094 $ — $ 86 $ (12) $ 1,168 Other agency (2) 59 — 6 — 65 Alt-A and subprime private-label securities 4 — 2 — 6 Mortgage revenue bonds 211 (3) 8 — 216 Other mortgage-related securities 238 — 4 — 242 Total $ 1,606 $ (3) $ 106 $ (12) $ 1,697 As of December 31, 2019 Total Amortized Cost (1)(3) Gross Unrealized Gains Gross Unrealized Losses Total Fair Value (1) (Dollars in millions) Fannie Mae $ 1,445 $ 85 $ (10) $ 1,520 Other agency (2) 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 s (1) We exclude from amortized cost and fair value accrued interest of $6 million and $10 million as of December 31, 2020 and December 31, 2019, respectively, which we record in “Other assets” in our consolidated balance sheets. (2) Other agency securities consist of securities issued by Freddie Mac and Ginnie Mae. (3) Prior to our adoption of the CECL standard, total amortized cost represented the unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as temporary impairments recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income. |
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, excluding allowance for credit losses. As of December 31, 2020 Less Than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses in AOCI Fair Value Gross Unrealized Losses in AOCI Fair Value (Dollars in millions) Fannie Mae $ (1) $ 40 $ (11) $ 94 Mortgage revenue bonds — — — — Other mortgage-related securities — — — — Total $ (1) $ 40 $ (11) $ 94 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 |
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, 2020 Total Carrying Amount (1) Total Fair Value One Year or Less After One Year Through Five Years After Five Years Through Ten Years After Ten Years Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value Net Carrying Amount (1) Fair Value (Dollars in millions) Fannie Mae $ 1,094 $ 1,168 $ — $ — $ 5 $ 6 $ 96 $ 108 $ 993 $ 1,054 Other agency 59 65 — — — — 9 10 50 55 Alt-A and subprime private-label securities 4 6 — — — — 3 3 1 3 Mortgage revenue bonds 208 216 1 1 27 28 19 20 161 167 Other mortgage-related securities 238 242 — — — — 19 21 219 221 Total $ 1,603 $ 1,697 $ 1 $ 1 $ 32 $ 34 $ 146 $ 162 $ 1,424 $ 1,500 Weighted-average yield (1) 5.27 % 5.90 % 6.54 % 6.11 % 5.16 % (1) Net carrying amount consists of book value, net of allowance for credit losses on AFS debt securities. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables display net unrealized gains on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax. As of December 31, 2020 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses $ 74 Other 42 Accumulated other comprehensive income $ 116 As of December 31, 2019 December 31, 2018 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded other-than-temporary impairment (“OTTI”) $ 97 $ 52 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 Other 34 46 Accumulated other comprehensive income $ 131 $ 322 |
Financial Guarantees (Tables)
Financial Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Maximum Exposure Guaranty Obligation Maximum Recovery (1) Maximum Exposure Guaranty Obligation Maximum Recovery (1) (Dollars in millions) Unconsolidated Fannie Mae MBS $ 4,424 $ 18 $ 4,226 $ 5,801 $ 26 $ 5,545 Other guaranty arrangements (2) 11,828 109 2,438 12,670 128 2,553 Total $ 16,252 $ 127 $ 6,664 $ 18,471 $ 154 $ 8,098 (1) Recoverability of such credit enhancements and recourse is subject to, among other factors, the ability of our mortgage insurers and the U.S. government, as a financial guarantor, 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, 2020 | |
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, 2020 2019 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 12,173 0.18 26,662 1.56 (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, 2020 2019 Maturities Outstanding (1) Weighted- Average Interest Rate (2) Maturities Outstanding (1) Weighted- Average Interest Rate (2) (Dollars in millions) Senior fixed: Benchmark notes and bonds 2021 - 2030 $ 106,691 2.03 % 2020 - 2030 $ 86,114 2.66 % Medium-term notes (3) 2021 - 2030 48,524 0.63 2020 - 2026 32,590 1.57 Other (4) 2021 - 2038 6,701 3.90 2020 - 2038 5,254 5.01 Total senior fixed 161,916 1.69 123,958 2.47 Senior floating: Medium-term notes (3) 2021 - 2022 100,089 0.35 2020 - 2021 9,774 1.66 Connecticut Avenue Securities (5) 2023 - 2031 14,978 4.16 2023 - 2031 21,424 5.61 Other (6) 2037 416 7.75 2020 - 2037 398 6.27 Total senior floating 115,483 0.86 31,596 4.40 Secured borrowings (7) - — — 2021 - 2022 31 2.31 Total long-term debt of Fannie Mae (8) 277,399 1.34 155,585 2.86 Debt of consolidated trusts 2021 - 2060 3,646,164 1.88 2020 - 2059 3,285,139 2.78 Total long-term debt $ 3,923,563 1.85 % $ 3,440,724 2.78 % (1) Includes the effects of fair value adjustments. (2) Includes the effects of discounts, premiums and other cost basis adjustments. (3) Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt. (4) Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds. (5) 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. (6) Consists of structured debt instruments that are reported at fair value. (7) 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. (8) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments in a net discount position of $392 million and $2 million as of December 31, 2020 and 2019, respectively. |
Long-Term Debt by Year of Maturity | The following table displays the amount of our long-term debt as of December 31, 2020 by year of maturity for each of the years 2021 through 2025 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 (Dollars in millions) 2021 $ 66,631 $ 92,454 2022 65,593 82,824 2023 30,946 20,814 2024 19,762 14,881 2025 39,593 21,985 Thereafter 54,874 44,441 Total long-term debt of Fannie Mae (1) 277,399 277,399 Debt of consolidated trusts (2) 3,646,164 3,646,164 Total long-term debt $ 3,923,563 $ 3,923,563 (1) Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 As of December 31, 2019 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 $ 88,361 $ — $ 11,461 $ (595) $ 41,052 $ — $ 29,178 $ (970) Receive-fixed 92,315 233 33,919 (123) 73,579 816 26,382 (62) Basis 250 192 — — 273 149 — — Foreign currency 237 57 239 (58) 229 39 232 (65) Swaptions: Pay-fixed 5,530 37 2,025 (118) 4,600 18 6,375 (219) Receive-fixed 3,355 346 700 (16) 2,875 106 4,600 (232) Futures (1) 64,398 — — — 20,507 — — — Total gross risk management derivatives 254,446 865 48,344 (910) 143,115 1,128 66,767 (1,548) Accrued interest receivable (payable) — 97 — (105) — 226 — (250) Netting adjustment (2) — (905) — 995 — (1,288) — 1,694 Total net risk management derivatives $ 254,446 $ 57 $ 48,344 $ (20) $ 143,115 $ 66 $ 66,767 $ (104) Mortgage commitment derivatives: Mortgage commitments to purchase whole loans $ 35,292 $ 145 $ 51 $ — $ 7,115 $ 15 $ 1,787 $ (1) Forward contracts to purchase mortgage-related securities 144,215 844 607 — 55,531 137 9,560 (28) Forward contracts to sell mortgage-related securities 199 — 227,828 (1,426) 9,282 13 109,066 (277) Total mortgage commitment derivatives 179,706 989 228,486 (1,426) 71,928 165 120,413 (306) Credit enhancement derivatives 16,829 179 11,368 (49) 28,432 40 9,486 (25) Derivatives at fair value $ 450,981 $ 1,225 $ 288,198 $ (1,495) $ 243,475 $ 271 $ 196,666 $ (435) (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 $658 million and $1.0 billion as of December 31, 2020 and 2019, respectively. Cash collateral received was $568 million and $635 million as of December 31, 2020 and 2019, 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, 2020 2019 2018 (Dollars in millions) Risk management derivatives: Swaps: Pay-fixed $ (2,764) $ (3,964) $ 2,940 Receive-fixed 2,226 3,685 (1,834) Basis 43 46 (21) Foreign currency 23 24 (51) Swaptions: Pay-fixed (146) (380) 100 Receive-fixed 595 117 (39) Futures (76) 273 38 Net contractual interest expense on interest-rate swaps (261) (833) (1,061) Total risk management derivatives fair value gains (losses), net (360) (1,032) 72 Mortgage commitment derivatives fair value gains (losses), net (2,654) (1,043) 324 Credit enhancement derivatives fair value gains (losses), net 182 (35) 26 Total derivatives fair value gains (losses), net $ (2,832) $ (2,110) $ 422 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (Dollars in millions) Current income tax benefit (provision) $ (3,803) $ (2,089) $ 114 Deferred income tax benefit (provision) (1) 729 (1,328) (4,254) Provision for federal income taxes $ (3,074) $ (3,417) $ (4,140) (1) Amount excludes the current income tax effect of items recognized directly in “Total Fannie Mae stockholders equity.” |
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, 2020 2019 2018 Statutory corporate tax rate 21.0 % 21.0 % 21.0 % Equity investments in affordable housing projects (0.1) (0.2) (0.6) Change in unrecognized tax benefits — (1.2) — Other (0.2) (0.2) 0.2 Effective tax rate 20.7 % 19.4 % 20.6 % |
Schedule of Deferred Tax Assets and Liabilities | The following table displays our deferred tax assets and deferred tax liabilities. As of December 31, 2020 2019 (Dollars in millions) Deferred tax assets: Mortgage and mortgage-related assets $ 8,241 $ 9,290 Allowance for loan losses and basis in acquired property, net 1,798 1,240 Debt and derivative instruments 526 627 Partnership and other equity investments 129 152 Interest-only securities 2,561 788 Total deferred tax assets 13,255 12,097 Deferred tax liabilities: Unrealized gains on AFS securities, net 20 26 Other, net 288 161 Total deferred tax liabilities 308 187 Deferred tax assets, net $ 12,947 $ 11,910 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table displays the changes in our unrecognized tax benefits. For the Year Ended December 31, 2020 2019 2018 (Dollars in millions) Unrecognized tax benefits as of January 1 $ — $ 416 $ 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 (1) Amount excludes tax credits of $151 million as of December 31, 2018. We had no unrecognized tax benefits as of December 31, 2020 and December 31, 2019. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Total assets by segment | The following table displays total assets by segment. As of December 31, 2020 2019 (Dollars in millions) Single-Family $ 3,569,130 $ 3,149,212 Multifamily 416,619 354,107 Total assets $ 3,985,749 $ 3,503,319 |
Segment results | The following tables display our segment results. For the Year Ended December 31, 2020 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 21,502 $ 3,364 $ 24,866 Fee and other income (2) 368 94 462 Net revenues 21,870 3,458 25,328 Investment gains, net (3) 728 179 907 Fair value gains (losses), net (4) (2,539) 38 (2,501) Administrative expenses (2,559) (509) (3,068) Credit-related expense: (5) Provision for credit losses (75) (603) (678) Foreclosed property expense (157) (20) (177) Total credit-related expense (232) (623) (855) TCCA fees (6) (2,673) — (2,673) Credit enhancement expense (7) (1,141) (220) (1,361) Change in expected credit enhancement recoveries (8) 89 144 233 Other expenses, net (1,055) (76) (1,131) Income before federal income taxes 12,488 2,391 14,879 Provision for federal income taxes (2,607) (467) (3,074) Net income $ 9,881 $ 1,924 $ 11,805 For the Year Ended December 31, 2019 Single-Family Multifamily Total (Dollars in millions) Net interest income (1) $ 18,013 $ 3,280 $ 21,293 Fee and other income (2) 453 113 566 Net revenues 18,466 3,393 21,859 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) Credit enhancement expense (7) (927) (207) (1,134) Change in expected credit enhancement recoveries (8) — — — Other expenses, net (734) (11) (745) 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 $ 3,111 $ 21,273 Fee and other income (2) 450 105 555 Net revenues 18,612 3,216 21,828 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) Credit enhancement expense (7) (514) (165) (679) Change in expected credit enhancement recoveries (8) — — — Other income (expenses), net (498) 26 (472) 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 (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 from which is remitted to Treasury and not retained by us. Also includes yield maintenance fees we recognized on the prepayment of multifamily loans. Prior periods have been restated to conform to current-period presentation. See “Note 1, Summary of Significant Accounting Policies” for more information about our change in presentation. (2) Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services. Multifamily fee and other income consists of fees associated with Multifamily business activities. (3) Single-family investment gains and losses primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains and losses primarily consists of gains and losses on resecuritization activity. (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, fair value option debt, 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. The presentation of our credit-related income or expense as of December 31, 2019 and 2018 represents amounts recognized prior to our transition to the lifetime loss model prescribed by the CECL standard. (6) Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA. (7) Single-family credit enhancement expense consists of costs associated with our freestanding credit enhancements, which include primarily costs associated with our CIRT, CAS and EPMI programs. Multifamily credit enhancement expense primarily consists of costs associated with our MCIRT and MCAS programs as well as amortization expense for certain lender risk-sharing programs. Excludes CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. (8) Consists of change in benefits recognized from our freestanding credit enhancements, primarily from our CAS and CIRT programs as well as certain lender risk-sharing arrangements, including our multifamily DUS program. See “Note 1, Summary of Significant Accounting Policies” for more information about our change in presentation. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2020 2019 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 0.150 (4) March 31, 2002 (5) Series G August 8, 2000 6 288 6 288 50 — (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, 2020 was $120,836. (2) Dividends on the senior preferred stock are currently 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 and ending September 30, 2020. The capital reserve amount, starting with the quarterly dividend period ending on December 31, 2020, increased to the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework described in “Note 12, Regulatory Capital Requirements.” (3) Any liquidation preference of our senior preferred stock in excess of $1 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 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, 2020. 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, 2020. 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, 2020. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7% or 10-year CMT rate plus 2.375%. (8) Issued and outstanding shares were 24,922 as of December 31, 2020 and 2019. (9) Rate effective December 31, 2020. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.5% 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, 2020. 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 tables display net unrealized gains on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax. As of December 31, 2020 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses $ 74 Other 42 Accumulated other comprehensive income $ 116 As of December 31, 2019 December 31, 2018 (Dollars in millions) Net unrealized gains on AFS securities for which we have not recorded other-than-temporary impairment (“OTTI”) $ 97 $ 52 Net unrealized gains on AFS securities for which we have recorded OTTI — 224 Other 34 46 Accumulated other comprehensive income $ 131 $ 322 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Classification Measures | The following table displays our current capital classification measures. As of December 31, 2020 2019 (Dollars in millions) Core capital (1) $ (95,694) $ (106,360) Statutory minimum capital requirement (2) 28,603 22,392 Deficit of core capital over statutory minimum capital requirement $ (124,297) $ (128,752) (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, 2020 | |
Concentration Risk [Line Items] | |
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 multifamily guaranty book of business. 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. |
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, 2020 2019 2020 2019 Midwest 14 % 15 % 11 % 10 % Northeast 17 17 15 15 Southeast 22 22 27 27 Southwest 19 18 22 23 West 28 28 25 25 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, 2020 2019 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 $ 170,890 $ 162,855 Pool mortgage insurance 291 339 Total mortgage insurance risk in force $ 171,181 5% $ 163,194 6% |
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 (i.e., servicers that are not insured depository institutions), 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 As of December 31, 2020 2019 Wells Fargo Bank, N.A. (together with its affiliates) 13 % 17 % Remaining top five depository servicers 11 15 Top five non-depository servicers 24 27 Total 48 % 59 % |
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. The increase in loans classified as seriously delinquent as of December 31, 2020 compared with December 31, 2019 was primarily attributable to the economic dislocation caused by the COVID-19 pandemic. As of December 31, 2020 2019 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 0.88 % 0.33 % 3.10 % 1.07 % 0.29 % 0.59 % Percentage of single-family conventional loans based on loan count 1.02 0.36 2.87 1.27 0.35 0.66 |
Schedule of Risk Characteristics Guaranty Book of Business | As of December 31, 2020 2019 Percentage of Seriously Delinquent Rate (1) Percentage of Seriously Delinquent Rate (1) Estimated mark-to-market LTV ratio: Greater than 100% * 22.43 % * 10.14 % Geographical distribution: California 19 2.62 19 0.32 Florida 6 4.17 6 0.84 Illinois 3 3.10 4 0.91 New Jersey 3 4.57 3 1.13 New York 5 4.79 5 1.18 All other states 64 2.59 63 0.64 Product distribution: Alt-A 1 9.32 2 2.95 Vintages: 2004 and prior 2 5.88 2 2.48 2005-2008 2 9.98 4 4.11 2009-2020 96 2.39 94 0.35 * Represents less than 0.5% of single-family conventional book of business. (1) Based on loan count, consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2020 and 2019. |
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, 2020 2019 Counterparty: (1) Arch Capital Group Ltd. 21 % 23 % Radian Guaranty, Inc. 19 20 Mortgage Guaranty Insurance Corp. 18 18 Genworth Mortgage Insurance Corp. 16 15 Essent Guaranty, Inc. 16 14 Others 10 10 Total 100 % 100 % (1) Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty. |
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 As of December 31, 2020 2019 Wells Fargo Bank, N.A. (together with its affiliates) 12 % 13 % Walker & Dunlop, LLC 12 12 Remaining top five servicers 24 23 Total 48 % 48 % |
Schedule of Delinquency Status Guaranty Book of Business | As of December 31, 2020 (1) 2019 (1) 30 Days Delinquent Seriously Delinquent (2) 30 Days Delinquent Seriously Delinquent (2) Percentage of multifamily guaranty book of business 0.29 % 0.98 % 0.02 % 0.04 % |
Schedule of Risk Characteristics Guaranty Book of Business | As of December 31, 2020 2019 Percentage of Multifamily Guaranty Book of Business (1) Serious Delinquency Rate (2)(3) Percentage of Multifamily Guaranty Book of Business (1) Serious Delinquency Rate (2)(3) Original LTV ratio: Greater than 80% 1 % 1.04 % 1 % — % Less than or equal to 80% 99 0.98 99 0.04 Current DSCR below 1.0 (4) 2 21.19 2 0.48 (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, 2020 | |
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, 2020 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 $ 962 $ (952) $ 10 $ — $ — $ 10 Cleared risk management derivatives — 47 47 — — 47 Mortgage commitment derivatives 989 — 989 (406) (53) 530 Total derivative assets 1,951 (905) 1,046 (4) (406) (53) 587 Securities purchased under agreements to resell or similar arrangements (5) 46,644 — 46,644 — (46,644) — Total assets $ 48,595 $ (905) $ 47,690 $ (406) $ (46,697) $ 587 Liabilities: OTC risk management derivatives $ (1,015) $ 999 $ (16) $ — $ — $ (16) Cleared risk management derivatives — (4) (4) — 2 (2) Mortgage commitment derivatives (1,426) — (1,426) 406 1,017 (3) Total derivative liabilities (2,441) 995 (1,446) (4) 406 1,019 (21) Total liabilities $ (2,441) $ 995 $ (1,446) $ 406 $ 1,019 $ (21) 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) (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 $4.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. The fair value of non-cash collateral received was $46.6 billion and $24.7 billion, of which $46.6 billion and $23.8 billion could be sold or repledged as of December 31, 2020 and 2019, respectively. None of the underlying collateral was sold or repledged as of December 31, 2020 and 2019, respectively. (4) Excludes derivative assets of $179 million and $40 million as of December 31, 2020 and 2019, respectively, and derivative liabilities of $49 million and $25 million recognized in our consolidated balance sheets as of December 31, 2020 and 2019, respectively, that are not subject to enforceable master netting arrangements. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 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: Cash equivalents (2) $ 1,120 $ — $ — $ — $ 1,120 Trading securities: Mortgage-related securities: Fannie Mae — 2,310 94 — 2,404 Other agency — 3,450 1 — 3,451 Private-label and other mortgage securities — 158 — — 158 Non-mortgage-related securities: U.S. Treasury securities 130,456 — — — 130,456 Other securities — 73 — — 73 Total trading securities 130,456 5,991 95 — 136,542 Available-for-sale securities: Mortgage-related securities: Fannie Mae — 973 195 — 1,168 Other agency — 65 — — 65 Alt-A and subprime private-label securities — 4 2 — 6 Mortgage revenue bonds — — 216 — 216 Other — 7 235 — 242 Total available-for-sale securities — 1,049 648 — 1,697 Mortgage loans — 5,629 861 — 6,490 Other assets: Risk management derivatives: Swaps — 376 203 — 579 Swaptions — 383 — — 383 Netting adjustment — — — (905) (905) Mortgage commitment derivatives — 989 — — 989 Credit enhancement derivatives — — 179 — 179 Total other assets — 1,748 382 (905) 1,225 Total assets at fair value $ 131,576 $ 14,417 $ 1,986 $ (905) $ 147,074 Liabilities: Long-term debt: Of Fannie Mae: Senior floating $ — $ 3,312 $ 416 $ — $ 3,728 Total of Fannie Mae — 3,312 416 — 3,728 Of consolidated trusts — 24,503 83 — 24,586 Total long-term debt — 27,815 499 — 28,314 Other liabilities: Risk management derivatives: Swaps — 881 — — 881 Swaptions — 134 — — 134 Netting adjustment — — — (995) (995) Mortgage commitment derivatives — 1,426 — — 1,426 Credit enhancement derivatives — — 49 — 49 Total other liabilities — 2,441 49 (995) 1,495 Total liabilities at fair value $ — $ 30,256 $ 548 $ (995) $ 29,809 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 Recurring fair value measurements: (Dollars in millions) 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 (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, 2020 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020 (4)(5) Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2020 (1) Balance, December 31, 2019 Included in Net Income Included in Total OCI (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 Transfers into Level 3 Balance, December 31, 2020 (Dollars in millions) Trading securities: Mortgage-related: Fannie Mae $ 45 $ (12) $ — $ — $ (1) $ — $ — $ (48) $ 110 $ 94 $ (8) $ — Other agency 1 — — — — — — (1) 1 1 — — Private-label and other mortgage securities — 3 — — (94) — (3) — 94 — — — Total trading securities $ 46 $ (9) (5)(6) $ — $ — $ (95) $ — $ (3) $ (49) $ 205 $ 95 $ (8) $ — Available-for-sale securities: Mortgage-related: Fannie Mae $ 171 $ 1 $ 4 $ — $ (1) $ — $ (15) $ (243) $ 278 $ 195 $ — $ — Alt-A and subprime private-label securities — — — — — — — — 2 2 — — Mortgage revenue bonds 315 (3) 2 — — — (98) — — 216 — 4 Other 306 (6) (1) — — — (64) — — 235 — — Total available-for-sale securities $ 792 $ (8) (6)(7) $ 5 $ — $ (1) $ — $ (177) $ (243) $ 280 $ 648 $ — $ 4 Mortgage loans $ 688 $ 47 (5)(6) $ — $ — $ (21) $ — $ (132) $ (104) $ 383 $ 861 $ 11 $ — Net derivatives 162 233 (5) — — — — (80) 18 — 333 159 — Long-term debt: Of Fannie Mae: Senior floating (398) (41) (5) — — — — 23 — — (416) (41) — Of consolidated trusts (75) (2) (5)(6) — — — — 18 5 (29) (83) (1) — Total long-term debt $ (473) $ (43) $ — $ — $ — $ — $ 41 $ 5 $ (29) $ (499) $ (42) $ — 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 (4)(5) 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 (Loss) (1) Purchases (2) Sales (2) Issues (3) Settlements (3) Transfers out of Level 3 Transfers into Level 3 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 (5)(6) $ — $ 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 (6)(7) $ (11) $ — $ (28) $ — $ (158) $ (106) $ 124 $ 792 $ — $ (3) Mortgage loans $ 937 $ 46 (5)(6) $ — $ — $ (52) $ — $ (136) $ (254) $ 147 $ 688 $ 26 $ — Net derivatives 194 109 (5) — — — — (119) (10) (12) 162 3 — Long-term debt: Of Fannie Mae: Senior floating (351) (47) (5) — — — — — — — (398) (47) — Of consolidated trusts (201) (8) (5)(6) — — — (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 (4)(5) 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 Transfers into Level 3 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 (5)(6) $ — $ 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 (6)(7) $ (53) $ — $ (22) $ — $ (263) $ (53) $ — $ 952 $ — $ — Mortgage loans $ 1,116 $ 38 (5)(6) $ — $ — $ — $ — $ (216) $ (162) $ 161 $ 937 $ 14 $ — Net derivatives 134 (38) (5) — — — — 45 53 — 194 40 — Long-term debt: Of Fannie Mae: Senior floating (376) 25 (5) — — — — — — — (351) 25 — Of consolidated trusts (582) 9 (5)(6) — — — 1 44 541 (214) (201) (2) — Total long-term debt $ (958) $ 34 $ — $ — $ — $ 1 $ 44 $ 541 $ (214) $ (552) $ 23 $ — (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) Amount represents temporary changes in fair value. Amortization, accretion and the impairment of credit losses (other-than-temporary impairment in years prior to 2020) are not considered unrealized and are not included in this amount. (5) Gains (losses) are included in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. (6) Gains (losses) are included in “Net interest income” in our consolidated statements of operations and comprehensive income. (7) 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, 2020 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) $ 95 Various Available-for-sale securities: Mortgage-related securities: Agency (3) 97 Consensus 98 Various Total agency 195 Alt-A and subprime private-label securities 2 Various Mortgage Revenue Bonds 144 Single Vendor Spreads (bps) 32.0 - 315.3 93.4 72 Various Total mortgage revenue bonds 216 Other 206 Discounted Cash Flow Spreads (bps) 425.0 - 443.0 434.2 29 Various Total other 235 Total available-for-sale securities $ 648 Net derivatives $ 203 Dealer Mark 130 Discounted Cash Flow Total net derivatives $ 333 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 (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 | The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. Fair Value Measurements as of December 31, Valuation Techniques 2020 2019 (Dollars in millions) Nonrecurring fair value measurements: Mortgage loans held for sale, at lower of cost or fair value Consensus $ 754 $ 471 Single Vendor 333 605 Total mortgage loans held for sale, at lower of cost or fair value 1,087 1,076 Single-family mortgage loans held for investment, at amortized cost Internal Model 979 555 Multifamily mortgage loans held for investment, at amortized cost Appraisals 225 — Asset Manager Estimate — 24 Internal Model 125 — Various 40 16 Total multifamily mortgage loans held for investment, at amortized cost 390 40 Acquired property, net: Single-family Accepted Offers 35 101 Appraisals 89 362 Internal Model 41 164 Walk Forwards 85 240 Various 11 51 Total single-family 261 918 Multifamily Various 25 9 Total nonrecurring assets at fair value $ 2,742 $ 2,598 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, spreads) 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, spreads) 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, spreads) 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 to value collateral contains four sub-component models: 1) Location Model, 2) Neighborhood Model, 3) Automated Valuation Model (“AVM”) Imputation Model and 4) Final Valuation Model. These models consider characteristics of the property, neighborhood, local housing markets, underlying loan and home price growth to derive a final estimated value. 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: We use 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”): We use BPOs 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 Accepted Offer: An Offer to Purchase Real Estate that has been submitted by a potential purchaser of an acquired property and accepted by Fannie Mae in a pending sale. 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.” Asset and Liability Derivative Instruments (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: We use one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Clearing House: We use the clearing house-provided value for interest-rate derivatives which are transacted through a clearing house. 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. Discounted Cash Flow: We use discounted cash flow to estimate fair value for credit enhancement derivatives related to CRT. Level 2 and 3 Instruments Valuation Techniques Classification Asset and Liability Derivative Instruments (collectively “Derivatives”) 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 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, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment Estimated Fair Value (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 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” above. 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” described above. 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. 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. 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, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment Estimated Fair Value (Dollars in millions) Financial assets: Cash and cash equivalents and restricted cash $ 115,623 $ 97,179 $ 18,444 $ — $ — $ 115,623 Federal funds sold and securities purchased under agreements to resell or similar arrangements 28,200 — 28,200 — — 28,200 Trading securities 136,542 130,456 5,991 95 — 136,542 Available-for-sale securities 1,697 — 1,049 648 — 1,697 Mortgage loans held for sale 5,197 — 116 5,502 — 5,618 Mortgage loans held for investment, net of allowance for loan losses 3,648,695 — 3,512,672 255,556 — 3,768,228 Advances to lenders 10,449 — 10,448 1 — 10,449 Derivative assets at fair value 1,225 — 1,748 382 (905) 1,225 Guaranty assets and buy-ups 115 — — 258 — 258 Total financial assets $ 3,947,743 $ 227,635 $ 3,578,668 $ 262,442 $ (905) $ 4,067,840 Financial liabilities: Short-term debt: Of Fannie Mae $ 12,173 $ — $ 12,177 $ — $ — $ 12,177 Long-term debt: Of Fannie Mae 277,399 — 288,414 878 — 289,292 Of consolidated trusts 3,646,164 — 3,756,673 31,584 — 3,788,257 Derivative liabilities at fair value 1,495 — 2,441 49 (995) 1,495 Guaranty obligations 127 — — 82 — 82 Total financial liabilities $ 3,937,358 $ — $ 4,059,705 $ 32,593 $ (995) $ 4,091,303 As of December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustment Estimated Fair Value (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 |
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, 2020 2019 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 $ 6,490 $ 3,728 $ 24,586 $ 7,825 $ 5,687 $ 21,880 Unpaid principal balance 6,046 3,518 21,408 7,514 5,200 19,653 (1) Includes nonaccrual loans with a fair value of $139 million and $129 million as of December 31, 2020 and 2019, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of December 31, 2020 and 2019 is $8 million and $11 million, respectively. Includes loans that are 90 days or more past due with a fair value of $257 million and $80 million as of December 31, 2020 and 2019, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of December 31, 2020 and 2019 is $14 million and $10 million, respectively. |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Loans and Mortgage-Related Securities (1) Operating Leases (2) Other (3) (Dollars in millions) 2021 $ 189,259 $ 55 $ 130 2022 — 66 83 2023 — 79 85 2024 — 81 5 2025 — 82 — Thereafter — 876 — Total $ 189,259 $ 1,239 $ 303 (1) Primarily includes 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, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Information | The consolidated statements of operations for the quarterly periods in 2020 and 2019 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 2020 Quarter Ended March 31 June 30 September 30 December 31 (Dollars and shares in millions, except per share amounts) Interest income: Trading securities $ 316 $ 219 $ 177 $ 162 Available-for-sale securities 31 26 19 22 Mortgage loans 28,938 27,007 25,810 24,561 Federal funds sold and securities purchased under agreements to resell or similar arrangements 107 14 14 11 Other 34 25 33 43 Total interest income 29,426 27,291 26,053 24,799 Interest expense: Short-term debt (102) (54) (19) (7) Long-term debt (23,977) (21,460) (19,378) (17,706) Total interest expense (24,079) (21,514) (19,397) (17,713) Net interest income 5,347 5,777 6,656 7,086 Benefit (provision) for credit losses (2,583) (12) 501 1,416 Net interest income after benefit for credit losses 2,764 5,765 7,157 8,502 Investment gains (losses) , net (158) 149 653 263 Fair value losses, net (276) (1,018) (327) (880) Fee and other income 120 90 93 159 Non-interest income (loss) (314) (779) 419 (458) Administrative expenses: Salaries and employee benefits (393) (382) (386) (393) Professional services (212) (231) (230) (248) Other administrative expenses (144) (141) (146) (162) Total administrative expenses (749) (754) (762) (803) Foreclosed property expense (80) (10) (71) (16) Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (637) (660) (679) (697) Credit enhancement expense (376) (360) (325) (300) Change in expected credit enhancement recoveries 188 273 (48) (180) Other expenses, net (218) (261) (313) (339) Total expenses (1,872) (1,772) (2,198) (2,335) Income before federal income taxes 578 3,214 5,378 5,709 Provision for federal income taxes (117) (669) (1,149) (1,139) Net income 461 2,545 4,229 4,570 Dividends distributed or amounts attributable to senior preferred stock (476) (2,532) (4,216) (4,566) Net income (loss) attributable to common stockholders $ (15) $ 13 $ 13 $ 4 Earnings per share: Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00 Diluted 0.00 0.00 0.00 0.00 Weighted-average common shares outstanding: Basic 5,867 5,867 5,867 5,867 Diluted 5,867 5,893 5,893 5,893 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 29,862 29,511 29,072 28,929 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 30,637 30,286 29,755 29,504 Interest expense: Short-term debt (125) (119) (125) (132) Long-term debt (25,716) (24,940) (24,282) (23,450) Total interest expense (25,841) (25,059) (24,407) (23,582) Net interest income 4,796 5,227 5,348 5,922 Benefit for credit losses 650 1,225 1,857 279 Net interest income after benefit for credit losses 5,446 6,452 7,205 6,201 Investment gains, net 133 461 253 923 Fair value gains (losses), net (831) (754) (713) 84 Fee and other income 134 113 188 131 Non-interest income (loss) (564) (180) (272) 1,138 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) Credit enhancement expense (216) (276) (290) (352) Other expenses, net (162) (203) (186) (194) Total expenses (1,855) (1,951) (1,934) (2,109) 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Senior Preferred Stock Purchase Agreement (Details) - USD ($) | Sep. 08, 2008 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2017 | Sep. 07, 2008 |
Related Parties [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | |||||
Early Lender Funding Advances, Maximum Term | 60 days | |||||||
Weighted Average Number of Shares, Contingently Issuable | 4,700,000,000 | 4,600,000,000 | 4,600,000,000 | |||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 26,000,000 | 131,000,000 | 131,000,000 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 25,259,000,000 | $ 14,608,000,000 | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 11,790,000,000 | 13,969,000,000 | $ 15,611,000,000 | |||||
Proceeds from Issuance of Common Stock | 70,000,000,000 | |||||||
Accumulated deficit | (108,110,000,000) | (118,776,000,000) | $ (119,915,000,000) | |||||
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 | |||||
Capital Reserve Amount Fiscal Year Senior Preferred Stock Purchase Agreement September 2019 Amendment | $ 22,000,000,000 | |||||||
Aggregate liquidation preference of senior preferred stock | $ 142,200,000,000 | |||||||
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 | |||||||
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Parties [Line Items] | ||||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | $ (697,000,000) | $ (679,000,000) | $ (660,000,000) | $ (637,000,000) | $ (626,000,000) | $ (613,000,000) | $ (600,000,000) | $ (593,000,000) | $ (2,673,000,000) | $ (2,432,000,000) | $ (2,284,000,000) | |
Basis Points of Each Dollar of Unpaid Principal Balance | 420.00% | 420.00% | ||||||||||
Affordable Housing Program Obligation | $ 0.35 | $ 0.35 | ||||||||||
Proceeds from Income Tax Refunds | 4,000,000,000 | |||||||||||
Proceeds From Income Tax Refunds, Interest | $ 340,000,000 | |||||||||||
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 | $ 142,200,000,000 | $ 142,200,000,000 | ||||||||||
Home Affordable Modification Program Administrative Expense Reimbursement | $ 19,000,000 | 20,000,000 | 24,000,000 | |||||||||
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 | $ (2,673,000,000) | (2,432,000,000) | (2,284,000,000) | |||||||||
US Treasury [Member] | Other Expense [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Affordable Housing Program Assessments | 211,000,000 | 98,000,000 | 75,000,000 | |||||||||
us-gaap_AffordableHousingProgramAssessments | 98,000,000 | 75,000,000 | ||||||||||
US Treasury [Member] | Forecast [Member] | Other Expense [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Affordable Housing Program Assessments | $ 211,000,000 | |||||||||||
Federal Housing Finance Agency [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
FHFA assessment fees/expense | 139,000,000 | 121,000,000 | 110,000,000 | |||||||||
Common Securitization Solutions [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | 88,000,000 | 105,000,000 | $ 135,000,000 | |||||||||
FNM_SingleFamily | US Treasury [Member] | ||||||||||||
Related Parties [Line Items] | ||||||||||||
Recognized TCCA fees that had not been remitted to Treasury as of period end | $ 697,000,000 | $ 626,000,000 | $ 697,000,000 | $ 626,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies New Accounting Guidance (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Item Effected [Line Items] | ||||||||||||
Mortgage loans held for sale | $ 5,197,000,000 | $ 6,773,000,000 | $ 5,197,000,000 | $ 6,773,000,000 | $ 6,823,000,000 | |||||||
Allowance for Loan and Lease Losses, Real Estate | (10,552,000,000) | (9,016,000,000) | (10,552,000,000) | (9,016,000,000) | (10,738,000,000) | |||||||
Other assets | 15,201,000,000 | 14,312,000,000 | 15,201,000,000 | 14,312,000,000 | 14,542,000,000 | |||||||
Deferred Tax Assets, Net | 12,947,000,000 | 11,910,000,000 | 12,947,000,000 | 11,910,000,000 | 12,213,000,000 | |||||||
Mortgage loans | 24,561,000,000 | $ 25,810,000,000 | $ 27,007,000,000 | $ 28,938,000,000 | 28,929,000,000 | $ 29,072,000,000 | $ 29,511,000,000 | $ 29,862,000,000 | 106,316,000,000 | 117,374,000,000 | $ 115,029,000,000 | |
Accumulated deficit | $ (108,110,000,000) | $ (118,776,000,000) | (108,110,000,000) | $ (118,776,000,000) | (119,915,000,000) | |||||||
Provision for Loan and Lease Losses | $ 216,000,000 | |||||||||||
Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization Fannie Mae is a leading source of financing for mortgages in the United States. We are a shareholder-owned corporation organized as a government-sponsored entity (“GSE”) and existing under the Federal National Mortgage Association Charter Act (the “Charter Act” or our “charter”). Our charter is an act of Congress, and we have a mission under that charter to provide liquidity and stability to the residential mortgage market and to promote access to mortgage credit. As such, 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 who originate loans to borrowers. 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, with FHFA acting as our conservator, 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. 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 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 and the dividend and liquidation provisions of the senior preferred stock were amended in January 2021 pursuant to a letter agreement between us, through FHFA in its capacity as conservator, and Treasury. The terms of the agreement, including Treasury’s funding commitment, and the dividend and liquidation provisions of the senior preferred stock are described more fully in “Note 11, Equity.” The January 2021 letter agreement made a number of changes to the covenants in the senior preferred stock purchase agreement, as well as to the terms of the senior preferred stock. Because these changes were made subsequent to December 31, 2020, there was no impact to our 2020 financial statements as a result of the changes in the January 2021 letter agreement. These changes include the following: • The dividend provisions of the senior preferred stock were amended to permit us to retain increases in our net worth until our net worth exceeds the amount of adjusted total capital necessary for us to meet the capital requirements and buffers under the enterprise regulatory capital framework discussed in “Note 12, Regulatory Capital Requirements.” After the “capital reserve end date,” which is defined as the last day of the second consecutive fiscal quarter during which we have maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework, the amount of quarterly dividends to Treasury will be equal to the lesser of any quarterly increase in our net worth and a 10% annual rate on the then-current liquidation preference of the senior preferred stock. • At the end of each fiscal quarter, through and including the capital reserve end date, the liquidation preference of the senior preferred stock will be increased by an amount equal to the increase in our net worth, if any, during the immediately prior fiscal quarter. • We may issue and retain up to $70 billion in proceeds from the sale of common stock without Treasury’s prior consent, provided that (1) Treasury has already exercised its warrant in full, and (2) all currently pending significant litigation relating to the conservatorship and to an amendment to the senior preferred stock purchase agreement made in August 2012 has been resolved, which may require Treasury’s assent. • FHFA may release us from conservatorship without Treasury’s consent after (1) all currently pending significant litigation relating to the conservatorship and to the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, and (2) our common equity tier 1 capital, together with any other common stock that we may issue in a public offering, equals or exceeds 3% of our “adjusted total assets” under our enterprise regulatory capital framework. • New restrictive covenants were added that will impact both our single-family and multifamily business activities. We are still evaluating the appropriate accounting for this amendment to the senior preferred stock purchase agreement. The amendment will be accounted for as either a modification or an extinguishment of the existing instrument. To the extent that the amendment is required to be accounted for as a modification, there will be no change in the carrying value of the senior preferred stock, as it will be accounted for as an extension of the existing arrangement. However, to the extent that the amendment qualifies as an extinguishment, we will record the amended senior preferred stock at fair value with the difference between the current carrying value and the amended stock’s fair value recorded in accumulated deficit. Senior Preferred Stock For information about the senior preferred stock, see “Note 11, Equity.” 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 2020, 2019 and 2018 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, 2020, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $142.2 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. Since June 2019, some of the structured securities we issue are backed in whole or in part by Freddie Mac securities. Fannie Mae and Freddie Mac each have agreed to indemnify the other party 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; its failure to meet its obligations under the customer services agreement; its violations of laws; or with respect to material misstatements or omissions in offering documents, ongoing disclosures and related materials relating to the underlying resecuritized securities. Additionally, we make regular income tax payments to and receive tax refunds from the Internal Revenue Service (“IRS”), a bureau of Treasury. We received a refund of $4.0 billion, including $340 million of interest, from the IRS during the year ended December 31, 2020 for income tax adjustments related to tax years 2010 through 2016 . Transactions with Treasury Our administrative expenses were reduced by $19 million, $20 million and $24 million for the years ended December 31, 2020, 2019 and 2018, 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. In 2012, 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 “Interest income: Mortgage loans” and “TCCA fees,” respectively, in our consolidated statements of operations and comprehensive income. In 2020, FHFA provided guidance that we are not required to accrue or remit TCCA fees to Treasury with respect to loans backing MBS trusts that have been delinquent for four months or longer. Once payments on such loans resume, we will resume accrual and remittance to Treasury of the associated TCCA fees on the loans. We recognized $2.7 billion, $2.4 billion and $2.3 billion in TCCA fees during the years ended December 31, 2020, 2019 and 2018, respectively, of which $697 million and $626 million had not been remitted as of December 31, 2020 and 2019, 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 $211 million, $98 million and $75 million in “Other expenses, net” in connection with Treasury’s Capital Magnet Fund for the years ended December 31, 2020, 2019 and 2018, respectively. We paid $98 million and $75 million to Treasury’s Capital Magnet Fund in 2020 and 2019, respectively. In 2021, we expect to pay $211 million to Treasury’s Capital Magnet Fund based on our new business purchases in 2020. On January 14, 2021, we, through FHFA acting on our behalf in its capacity as our conservator, and Treasury, entered into a letter agreement modifying the terms of the senior preferred stock purchase agreement and 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 $139 million, $121 million and $110 million for the years ended December 31, 2020, 2019 and 2018, respectively. Transactions with CSS and Freddie Mac We contributed capital to CSS, the company we jointly own with Freddie Mac, of $88 million, $105 million and $135 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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. Presentation of 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. Early lender funding advances have terms up to 60 days and earn a short-term market rate of interest. Advances to lenders has been presented as a separate line item for all periods presented, as increased mortgage refinance activity resulted in a higher balance at period end. In prior periods, advances to lenders were recorded in “Other assets.” Presentation of Freestanding Credit Enhancement Expense and Recoveries Freestanding credit enhancements primarily include our Connecticut Avenue Securities ® (“CAS”) and Credit Insurance Risk Transfer TM (“CIRT TM ”) programs, enterprise-paid mortgage insurance (“EPMI”), and certain lender risk-sharing arrangements, including our multifamily Delegated Underwriting and Servicing (“DUS ® ”) program. We have revised our presentation of the expenses and recoveries associated with these programs as described below. Credit Enhancement Expense Credit enhancement expense consists of costs associated with our freestanding credit enhancements. We exclude from this expense costs related to our CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. Credit enhancement expense has been presented as a separate line item for all periods presented, as these expenses have become a more significant driver of our results of operations. In prior periods, credit enhancement expenses were recorded in “Other expenses, net.” Change in Expected Credit Enhancement Recoveries Change in expected credit enhancement recoveries consists of the change in benefits recognized from our freestanding credit enhancements, including any realized amounts. Benefits, if any, from our CAS, CIRT and EPMI programs previously recorded in “Fee and other income” have been reclassified to “Change in expected credit enhancement recoveries” for all periods presented. Benefits from other lender risk-sharing programs, including our multifamily DUS program, were recorded as a reduction of credit-related expense in periods prior to 2020. However, with our adoption of the Current Expected Credit Loss standard on January 1, 2020, benefits from freestanding credit enhancements are no longer recorded as a reduction of credit-related expenses. These benefits from lender risk-sharing have been reclassified into “Change in expected credit enhancement recoveries” on a prospective basis beginning January 1, 2020. Presentation of Yield Maintenance Fees Prior period multifamily yield maintenance fees have been reclassified to conform to the current-period presentation. Multifamily yield maintenance fees, or prepayment premiums, are fees that a borrower pays when they prepay their loan. For multifamily loans held in a consolidated trust, a portion of the yield maintenance fee is typically passed through to the holders of the trust certificate. As of January 1, 2020, we classify all yield maintenance fees as interest income. For consolidated loans, the portion of the fee passed through to the certificate holders of the trust is classified as interest expense. Previously, we classified multifamily yield maintenance fees as interest income only when the fee was associated with a loan refinancing, otherwise the fee was classified as fee and other income. The portion of the fees passed through to the certificate holders of the trust were previously classified as interest expense only when the fee was associated with a loan refinancing, otherwise the fee was classified as other expense. The changes in presentation have been applied retrospectively to all periods presented and were immaterial for prior periods. 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 Our consolidated financial statements include our accounts as well as the accounts of the other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in an entity such as a variable interest entity (“VIE”) through arrangements that do not involve voting interests. 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 whether 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 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. Uniform Mortgage-Backed Securities (“UMBS”) Uniform Mortgage-Backed Securities (“UMBS”) are common mortgage-backed securities issued by both Fannie Mae and Freddie Mac to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. We and Freddie Mac began issuing UMBS in June 2019. We and Freddie Mac also began resecuritizing UMBS certificates into structured securities in June 2019. The structured securities backed by UMBS that we issue include Supers, which are single-class resecuritization transactions, Real Estate Mortgage Investment Conduit securities (“REMICs”) and interest-only and principal-only strip securities (“SMBS”), which are multi-class resecuritization transactions. Since June 2019, we have resecuritized UMBS, Supers and other structured securities issued by Freddie Mac. The mortgage loans that serve as collateral for Freddie Mac-issued UMBS are not held in trusts that are consolidated by Fannie Mae. When we include Freddie Mac securities in our structured securities, we are subject to additional credit risk because we guarantee securities that were not previously guaranteed by Fannie Mae. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We have concluded that this additional credit risk is negligible because of the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury. Prior to June 2019, 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. Single-Class Securitization Trusts We create single-class securitization trusts to issue single-class Fannie Mae MBS (including UMBS) that evidence an undivided interest in the mortgage loans held in the trust. Investors in single-class Fannie Mae MBS receive principal and interest payments in proportion to their percentage ownership of the MBS issuance. We guarantee to each single-class securitization trust that we will supplement amounts received by the securitization trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie Mae MBS. Single-class securitization trusts are used for lender swap and portfolio securitization transactions. A lender swap transaction occurs when a mortgage lender delivers a pool of single-family mortgage loans to us, which we immediately deposit into an MBS trust. The MBS are then issued to the lender in exchange for the mortgage loans. A portfolio securitization transaction occurs when we purchase mortgage loans from third-party sellers for cash and later deposit these loans into an MBS trust. The securities issued through a portfolio securitization are then sold to investors for cash. We consolidate single-class securitization trusts that are issued under these programs when our role as guarantor and master servicer provides us with the power to direct matters, such as the servicing of the 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 (for example, when the loan collateral is subject to a Federal Housing Administration guaranty and related Servicing Guide). When | |||||||||||
Non Accrual Loans [Member] | ||||||||||||
Item Effected [Line Items] | ||||||||||||
Mortgage loans | $ 2,800,000,000 | |||||||||||
Accounting Standards Update 2016-13 [Member] | ||||||||||||
Item Effected [Line Items] | ||||||||||||
Mortgage loans held for sale | 50,000,000 | |||||||||||
Allowance for Loan and Lease Losses, Real Estate | (1,722,000,000) | |||||||||||
Other assets | 230,000,000 | |||||||||||
Deferred Tax Assets, Net | 303,000,000 | |||||||||||
Accumulated deficit | $ (1,139,000,000) |
Consolidations and Transfers _3
Consolidations and Transfers of Financial Assets Types of VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 3,985,749 | $ 3,503,319 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Conclusion to Consolidate, Change in Facts and Circumstances, Amount | $ 1,200 |
Consolidations and Transfers _4
Consolidations and Transfers of Financial Assets Unconsolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Variable Interest Entities [Line Items] | |||
Trading, at fair value | $ 136,542 | $ 48,123 | |
Available-for-sale securities | 1,697 | 2,404 | |
Other assets | 15,201 | $ 14,542 | 14,312 |
Other liabilities | (15,035) | (11,097) | |
Unpaid principal balance of mortgage loans | 3,589,868 | 3,299,954 | |
Assets | 3,985,749 | 3,503,319 | |
Multifamily [Member] | |||
Variable Interest Entities [Line Items] | |||
Unpaid principal balance of mortgage loans | 373,722 | 327,593 | |
Multifamily [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Unpaid principal balance of mortgage loans | 373,700 | ||
Fannie Mae Securities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Trading, at fair value | 1,611 | 2,543 | |
Available-for-sale securities | 1,168 | 1,524 | |
Non-Fannie Mae Securities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Trading, at fair value | 3,608 | 5,100 | |
Available-for-sale securities | 318 | 574 | |
Mortgage-related securities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Trading, at fair value | 5,219 | 7,643 | |
Available-for-sale securities | 1,486 | 2,098 | |
Other assets | 41 | 56 | |
Other liabilities | (67) | (78) | |
Net Assets | 6,679 | 9,719 | |
Maximum exposure to loss | 146,000 | 62,000 | |
Assets | 180,000 | 130,000 | |
Partnership Interest [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Net Assets | 121 | 79 | |
Maximum exposure to loss | 126 | 98 | |
Assets | 2,600 | 2,000 | |
Debt Securities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum exposure to loss | 11,400 | 9,500 | |
Assets | $ 11,400 | $ 9,500 |
Consolidations and Transfers _5
Consolidations and Transfers of Financial Assets Transfers of Financial Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers of Financial Assets [Line Items] | |||
Portfolio securitizations: unpaid principal balance | $ 745,200 | $ 278,600 | $ 228,400 |
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount | 666 | ||
Unconsolidated VIEs [Member] | |||
Transfers of Financial Assets [Line Items] | |||
Retained interests: principal and interest received | 700 | 595 | $ 585 |
Unconsolidated VIEs [Member] | Single Class MBS, REMIC & Megas [Member] | |||
Transfers of Financial Assets [Line Items] | |||
Retained interests: unpaid principal balance | 1,700 | 2,900 | |
Retained interest: fair value | $ 2,900 | $ 4,000 |
Loans in Mortgage Portfolio (De
Loans in Mortgage Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | $ 3,589,868 | $ 3,299,954 | ||
Cost basis and fair value adjustments, net | 74,576 | 43,224 | ||
Allowance for Loan and Lease Losses, Real Estate | (10,552) | (9,016) | $ (10,738) | |
Total mortgage loans | 3,653,892 | 3,334,162 | ||
Interest Receivable | 9,937 | 8,604 | ||
Financing Receivable Sale | 9,519 | 19,737 | $ 21,918 | |
Gain (Loss) on Sale of Mortgage Loans | 831 | 1,238 | 444 | |
Single-Family [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | 3,216,146 | 2,972,361 | ||
Financing Receivable, Reclassification to Held-for-sale | 8,309 | 18,245 | 23,494 | |
us-gaap_FinancingReceivableReclassificationToHeldForInvestment | 144 | 28 | 46 | |
Mortgage Loans in Process of Foreclosure, Amount | 5,000 | 7,600 | ||
Single-Family [Member] | Allowance for loans redesignated from HFI to HFS [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (291) | (995) | (1,478) | |
Charge-offs | 963 | 2,484 | 3,385 | |
Single-Family [Member] | Allowance for loans redesignated from HFS to HFI | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Loans and Leases Receivable, Allowance | (15) | (1) | $ (2) | |
Multifamily [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Unpaid principal balance of mortgage loans | 373,722 | 327,593 | ||
Mortgage loans [Member] | ||||
Loans in Mortgage Portfolio [Line Items] | ||||
Interest Receivable | $ 9,800 | $ 8,400 |
Mortgage Loans Aging (Details)
Mortgage Loans Aging (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | $ 143,215 | $ 55,266 |
Current, amortized cost | 3,519,496 | 3,281,663 |
Total amortized cost in loans | 3,662,711 | 3,336,929 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 77,196 | 164 |
Amortized cost in nonaccrual loans | 28,574 | 27,981 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | 7,455 | |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 29,473 | 31,240 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 10,570 | 8,326 |
Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 103,172 | 15,700 |
Single-Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 138,387 | 55,144 |
Current, amortized cost | 3,146,898 | 2,951,167 |
Total amortized cost in loans | 3,285,285 | 3,006,311 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 76,586 | 164 |
Amortized cost in nonaccrual loans | 26,505 | $ 27,546 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | $ 7,153 | |
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, amortized cost | $ 28,333 | $ 31,233 |
Single-Family [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 10,570 | 8,326 |
Single-Family [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 99,484 | 15,585 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 122,618 | 47,090 |
Current, amortized cost | 2,619,585 | 2,470,457 |
Total amortized cost in loans | 2,742,203 | 2,517,547 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 68,526 | 28 |
Amortized cost in nonaccrual loans | 22,907 | 23,427 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | 6,028 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 24,928 | 26,882 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 9,414 | 7,126 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 88,276 | 13,082 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 7,616 | 2,347 |
Current, amortized cost | 449,443 | 371,740 |
Total amortized cost in loans | 457,059 | 374,087 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 4,292 | 0 |
Amortized cost in nonaccrual loans | 853 | 858 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | 240 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 1,987 | 1,616 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 601 | 286 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 5,028 | 445 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 1,508 | 664 |
Current, amortized cost | 29,933 | 44,244 |
Total amortized cost in loans | 31,441 | 44,908 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 907 | 0 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | 114 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 268 | 412 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 97 | 85 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 1,143 | 167 |
Single-Family [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 6,645 | 5,043 |
Current, amortized cost | 47,937 | 64,726 |
Total amortized cost in loans | 54,582 | 69,769 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 2,861 | 136 |
Amortized cost in nonaccrual loans | 2,475 | 2,973 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | 771 | |
Single-Family [Member] | Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 1,150 | 2,323 |
Single-Family [Member] | Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 458 | 829 |
Single-Family [Member] | Other [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 5,037 | 1,891 |
Multifamily [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | 4,828 | 122 |
Current, amortized cost | 372,598 | 330,496 |
Total amortized cost in loans | 377,426 | 330,618 |
Amortized cost in loans 90 days or more delinquent and accruing interest | 610 | 0 |
Amortized cost in nonaccrual loans | 2,069 | 435 |
Table Footnote [Abstract] | ||
Financing Receivable, Nonaccrual, No Allowance | $ 302 | |
Multifamily [Member] | Minimum [Member] | ||
Table Footnote [Abstract] | ||
Serious delinquency: days past due | 60 days | |
Multifamily [Member] | Maximum [Member] | ||
Table Footnote [Abstract] | ||
Serious delinquency: days past due | 89 days | |
Multifamily [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | $ 1,140 | 7 |
Multifamily [Member] | Seriously Delinquent [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days delinquent, amortized cost | $ 3,688 | $ 115 |
Mortgage Loans Credit Quality I
Mortgage Loans Credit Quality Indicators - SF (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 3,662,711 | $ 3,336,929 |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3,659,247 | 3,336,405 |
Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,989,182 | |
Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,603,619 | |
Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 246,326 | |
Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 133,049 | |
Estimated mark-to-market LTV ratio greater than 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 6,188 | |
Fixed Rate Residential Mortgage [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,517,547 | |
Fixed Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,145,018 | |
Fixed Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 237,623 | |
Fixed Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 130,152 | |
Fixed Rate Residential Mortgage [Member] | Estimated mark-to-market LTV ratio greater than 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 4,754 | |
FixedRateResidentialMortgage15yearMember [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 374,087 | |
FixedRateResidentialMortgage15yearMember [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 368,181 | |
FixedRateResidentialMortgage15yearMember [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 4,556 | |
FixedRateResidentialMortgage15yearMember [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,284 | |
FixedRateResidentialMortgage15yearMember [Member] | Estimated mark-to-market LTV ratio greater than 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 66 | |
Adjustable Rate Residential Mortgage [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 44,908 | |
Adjustable Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 43,415 | |
Adjustable Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,275 | |
Adjustable Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 215 | |
Adjustable Rate Residential Mortgage [Member] | Estimated mark-to-market LTV ratio greater than 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3 | |
Other [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 52,640 | |
Other [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 47,005 | |
Other [Member] | Estimated mark-to-market loan-to-value ratio greater than 80% and less than or equal to 90% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,872 | |
Other [Member] | Estimated mark-to-market loan-to-value ratio greater than 90% and less than or equal to 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,398 | |
Other [Member] | Estimated mark-to-market LTV ratio greater than 100% [Member] | Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,365 | |
Single-Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 3,285,285 | 3,006,311 |
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,253,449 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 367,647 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 178,798 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 226,092 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 272,831 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 972,993 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3,271,810 | |
Single-Family [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 978,509 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 277,248 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 154,357 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 220,388 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 270,966 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 960,696 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,862,164 | |
Single-Family [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 163,839 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 86,192 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 23,574 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 5,346 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,635 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7,288 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 287,874 | |
Single-Family [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 111,073 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,200 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 832 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 270 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 137 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,608 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 119,120 | |
Single-Family [Member] | Estimated Mark To Market Loan To Value Ratio Greater Than 100 Percent, Loans Recorded Investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 28 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 35 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 88 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 93 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,401 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,652 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 2,742,203 | 2,517,547 |
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,061,427 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 323,414 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 160,137 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 188,912 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 222,969 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 785,344 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,742,203 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 794,156 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 233,994 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 135,849 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 183,315 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 221,172 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 775,636 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 2,344,122 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 157,500 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 85,227 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 23,440 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 5,270 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,592 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 5,958 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 278,987 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 109,743 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,186 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 820 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 250 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 124 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,994 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 117,117 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | Estimated Mark To Market Loan To Value Ratio Greater Than 100 Percent, Loans Recorded Investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 28 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 28 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 77 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 81 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,756 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,977 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 457,059 | 374,087 |
Financing Receivable, Year One, Originated, Current Fiscal Year | 188,797 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 42,194 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 15,809 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 31,518 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 46,102 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 132,639 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 457,059 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 181,418 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 41,374 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 15,768 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 31,497 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 46,088 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 132,596 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 448,741 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 6,105 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 811 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 35 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 14 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 8 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 20 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 6,993 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,274 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 9 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 3 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 10 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,303 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | Estimated Mark To Market Loan To Value Ratio Greater Than 100 Percent, Loans Recorded Investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 3 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 3 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 13 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 22 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 31,441 | 44,908 |
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,225 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,994 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,492 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,784 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,683 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 16,263 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 31,441 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | Estimated mark-to-market loan-to-value ratio less than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,935 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,839 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,412 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,765 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,678 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 16,248 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 30,877 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 234 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 152 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 79 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 19 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 12 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 501 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 56 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 62 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | Estimated Mark To Market Loan To Value Ratio Greater Than 100 Percent, Loans Recorded Investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1 | |
Single-Family [Member] | Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 54,582 | 69,769 |
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 45 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 360 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 878 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,077 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 38,747 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 41,107 | |
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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 41 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 328 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 811 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,028 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 36,216 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 38,424 | |
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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 20 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 43 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 30 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,298 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 1,393 | |
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] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 8 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 16 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 10 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 602 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 638 | |
Single-Family [Member] | Other [Member] | Estimated Mark To Market Loan To Value Ratio Greater Than 100 Percent, Loans Recorded Investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 4 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 8 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 9 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 631 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 652 | |
Single-Family [Member] | Government [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 13,500 | $ 17,100 |
Mortgage Loans Credit Quality_2
Mortgage Loans Credit Quality Indicators - MF (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | $ 3,662,711 | $ 3,336,929 |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 3,659,247 | 3,336,405 |
Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 377,426 | 330,618 |
Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 72,014 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 44,753 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 74,183 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 69,337 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 63,616 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 53,523 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 377,426 | |
Pass | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 323,773 | |
Pass | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 71,977 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 43,174 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 70,933 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,296 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 62,087 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 50,907 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 367,374 | |
Criticized | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment | 6,845 | |
Criticized | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 37 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,579 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 3,250 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,041 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,529 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,616 | |
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | 10,052 | |
Doubtful [Member] | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss (includes $6,490 and $7,825, respectively, at fair value) | $ 1 | $ 5 |
Mortgage Loans TDRs (Details)
Mortgage Loans TDRs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)contracts | Dec. 31, 2019USD ($)contracts | Dec. 31, 2018USD ($)contracts | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Average term extension of a single-family modified loan | 163 months | 162 months | 109 months |
Average interest rate reduction of a single-family modified loan | 0.37% | 0.13% | 0.21% |
Number of loans troubled debt restructurings activity | contracts | 35,049 | 51,870 | 95,826 |
Amortized cost troubled debt restructurings activity | $ | $ 5,665 | $ 8,146 | $ 14,427 |
Single-Family [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 35,049 | 51,859 | 95,812 |
Amortized cost troubled debt restructurings activity | $ | $ 5,665 | $ 8,090 | $ 14,353 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 29,938 | 43,283 | 79,397 |
Amortized cost troubled debt restructurings activity | $ | $ 5,125 | $ 7,140 | $ 12,485 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 2,956 | 4,762 | 8,953 |
Amortized cost troubled debt restructurings activity | $ | $ 257 | $ 424 | $ 823 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 467 | 813 | 844 |
Amortized cost troubled debt restructurings activity | $ | $ 72 | $ 123 | $ 129 |
Single-Family [Member] | Other [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 1,688 | 3,001 | 6,618 |
Amortized cost troubled debt restructurings activity | $ | $ 211 | $ 403 | $ 916 |
Multifamily [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings activity | contracts | 0 | 11 | 14 |
Amortized cost troubled debt restructurings activity | $ | $ 0 | $ 56 | $ 74 |
Mortgage Loans TDRs with Sub De
Mortgage Loans TDRs with Sub Defaults (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)contracts | Dec. 31, 2019USD ($)contracts | Dec. 31, 2018USD ($)contracts | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 15,586 | 17,851 | 21,744 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,814 | $ 2,758 | $ 3,224 |
Single-Family [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 15,582 | 17,849 | 21,742 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,798 | $ 2,740 | $ 3,221 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 14,127 | 15,189 | 18,344 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2,578 | $ 2,366 | $ 2,675 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 148 | 594 | 206 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 10 | $ 45 | $ 15 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 16 | 91 | 63 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 2 | $ 14 | $ 8 |
Single-Family [Member] | Other [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 1,291 | 1,975 | 3,129 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 208 | $ 315 | $ 523 |
Multifamily [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans troubled debt restructurings subsequent default | contracts | 4 | 2 | 2 |
Recorded investment troubled debt restructurings subsequent default | $ | $ 16 | $ 18 | $ 3 |
Mortgage Loans (Nonaccrual Loan
Mortgage Loans (Nonaccrual Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amortized cost in nonaccrual loans | $ 28,574 | $ 27,981 |
Financing Receivable, Nonaccrual, Interest Income | 583 | |
Single-Family [Member] | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 739 | |
Financing Receivable, Accrued Interest, Writeoff | 206 | |
Amortized cost in nonaccrual loans | 26,505 | 27,546 |
Financing Receivable, Nonaccrual, Interest Income | 524 | |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | ||
Amortized cost in nonaccrual loans | 22,907 | 23,427 |
Financing Receivable, Nonaccrual, Interest Income | 461 | |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | ||
Amortized cost in nonaccrual loans | 853 | 858 |
Financing Receivable, Nonaccrual, Interest Income | 15 | |
Single-Family [Member] | Adjustable Rate Loans [Member] | ||
Amortized cost in nonaccrual loans | 270 | 288 |
Single-Family [Member] | Other [Member] | ||
Amortized cost in nonaccrual loans | 2,475 | 2,973 |
Financing Receivable, Nonaccrual, Interest Income | 43 | |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | ||
Financing Receivable, Nonaccrual, Interest Income | 5 | |
Multifamily [Member] | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 19 | |
Financing Receivable, Accrued Interest, Writeoff | 19 | |
Amortized cost in nonaccrual loans | 2,069 | $ 435 |
Financing Receivable, Nonaccrual, Interest Income | $ 59 |
Mortgage Loans Individually Imp
Mortgage Loans Individually Impaired Loans (Details) $ in Millions | Dec. 31, 2019USD ($) |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | $ 79,696 |
Individually impaired loans with related allowance recorded: total recorded investment | 76,543 |
Related allowance for loan losses | (8,220) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 22,424 |
Individually impaired loans with no related allowance recorded: total recorded investment | 21,333 |
Total individually impaired loans: unpaid principal balance | 102,120 |
Total individually impaired loans: total recorded investment | 97,876 |
Single-Family [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 79,382 |
Individually impaired loans with related allowance recorded: total recorded investment | 76,228 |
Related allowance for loan losses | (8,175) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 22,061 |
Individually impaired loans with no related allowance recorded: total recorded investment | 20,968 |
Table Footnote [Abstract] | |
Troubled debt restructuring recorded investment | 96,900 |
Single-Family [Member] | Fixed Rate Residential Mortgage [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 63,091 |
Individually impaired loans with related allowance recorded: total recorded investment | 61,033 |
Related allowance for loan losses | (5,851) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 18,372 |
Individually impaired loans with no related allowance recorded: total recorded investment | 17,578 |
Single-Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 954 |
Individually impaired loans with related allowance recorded: total recorded investment | 960 |
Related allowance for loan losses | (24) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 410 |
Individually impaired loans with no related allowance recorded: total recorded investment | 407 |
Single-Family [Member] | Adjustable Rate Residential Mortgage [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 156 |
Individually impaired loans with related allowance recorded: total recorded investment | 157 |
Related allowance for loan losses | (9) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 265 |
Individually impaired loans with no related allowance recorded: total recorded investment | 265 |
Single-Family [Member] | Other [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 15,181 |
Individually impaired loans with related allowance recorded: total recorded investment | 14,078 |
Related allowance for loan losses | (2,291) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 3,014 |
Individually impaired loans with no related allowance recorded: total recorded investment | 2,718 |
Multifamily [Member] | |
Financing Receivable, Impaired [Line Items] | |
Individually impaired loans with related allowance recorded: unpaid principal balance | 314 |
Individually impaired loans with related allowance recorded: total recorded investment | 315 |
Related allowance for loan losses | (45) |
Individually impaired loans with no related allowance recorded: unpaid principal balance | 363 |
Individually impaired loans with no related allowance recorded: total recorded investment | 365 |
Table Footnote [Abstract] | |
Troubled debt restructuring recorded investment | $ 102 |
Mortgage Loans Individually I_2
Mortgage Loans Individually Impaired Loans - 2 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | $ 88,460 | $ 110,467 |
Individually impaired loans with related allowance recorded: total interest income recognized | 3,666 | 4,564 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 315 | 457 |
Individually impaired loans with no related allowance recorded: average recorded investment | 19,450 | 18,830 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 1,250 | 1,259 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 169 | 141 |
Individually impaired loans: average recorded investment | 107,910 | 129,297 |
Individually impaired loans: total interest income recognized | 4,916 | 5,823 |
Individually impaired loans: interest income recognized on a cash basis | 484 | 598 |
Single Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 88,173 | 110,232 |
Individually impaired loans with related allowance recorded: total interest income recognized | 3,659 | 4,561 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 315 | 457 |
Individually impaired loans with no related allowance recorded: average recorded investment | 19,075 | 18,494 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 1,219 | 1,245 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 169 | 141 |
Single Family [Member] | Fixed Rate Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 69,731 | 83,498 |
Individually impaired loans with related allowance recorded: total interest income recognized | 2,908 | 3,463 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 260 | 372 |
Individually impaired loans with no related allowance recorded: average recorded investment | 15,569 | 14,347 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 977 | 938 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 143 | 113 |
Single Family [Member] | FixedRateResidentialMortgage15yearMember [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 1,176 | 1,410 |
Individually impaired loans with related allowance recorded: total interest income recognized | 40 | 53 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 3 | 8 |
Individually impaired loans with no related allowance recorded: average recorded investment | 339 | 192 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 15 | 10 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 4 | 4 |
Single Family [Member] | Adjustable Rate Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 141 | 154 |
Individually impaired loans with related allowance recorded: total interest income recognized | 6 | 6 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 1 | 1 |
Individually impaired loans with no related allowance recorded: average recorded investment | 331 | 466 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 15 | 19 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 2 | 2 |
Single Family [Member] | Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 17,125 | 25,170 |
Individually impaired loans with related allowance recorded: total interest income recognized | 705 | 1,039 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 51 | 76 |
Individually impaired loans with no related allowance recorded: average recorded investment | 2,836 | 3,489 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 212 | 278 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | 20 | 22 |
Multifamily [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Individually impaired loans with related allowance recorded: average recorded investment | 287 | 235 |
Individually impaired loans with related allowance recorded: total interest income recognized | 7 | 3 |
Individually impaired loans with related allowance recorded: interest income recognized on a cash basis | 0 | 0 |
Individually impaired loans with no related allowance recorded: average recorded investment | 375 | 336 |
Individually impaired loans with no related allowance recorded: total interest income recognized | 31 | 14 |
Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis | $ 0 | $ 0 |
Allowance for Loan Losses Rollf
Allowance for Loan Losses Rollforward by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | $ (10,552) | $ (9,016) | $ (14,203) | $ (19,084) |
Benefit (provision) for loan losses | (466) | 3,961 | 2,987 | |
Write-offs | 593 | 1,307 | 2,152 | |
Recoveries | (94) | (75) | (240) | |
Other | 153 | (6) | (18) | |
Transition impact of the adoption of the CECL standard | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | (1,722) | |||
Single-Family [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | (9,344) | (8,759) | (13,969) | (18,849) |
Benefit (provision) for loan losses | 127 | 3,988 | 2,990 | |
Write-offs | 457 | 1,299 | 2,148 | |
Recoveries | (93) | (71) | (240) | |
Other | 153 | (6) | (18) | |
Single-Family [Member] | Transition impact of the adoption of the CECL standard | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | (1,229) | |||
Multifamily [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | (1,208) | (257) | (234) | $ (235) |
Benefit (provision) for loan losses | (593) | (27) | (3) | |
Write-offs | 136 | 8 | 4 | |
Recoveries | $ (1) | (4) | $ 0 | |
Multifamily [Member] | Transition impact of the adoption of the CECL standard | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | $ (493) |
Allowance for Loan Losses and T
Allowance for Loan Losses and Total Recorded Investment in HFI Loans (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses for individually impaired loans | $ (8,220) | ||
Allowance for loan losses for collectively reserved loans | (796) | ||
Total allowance for loan losses | $ (10,552) | $ (10,738) | (9,016) |
Recorded investment in individually impaired loans | 97,876 | ||
Recorded investment in collectively reserved loans | 3,239,053 | ||
Total amortized cost in loans | $ 3,662,711 | 3,336,929 | |
Single-Family [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses for individually impaired loans | (8,175) | ||
Allowance for loan losses for collectively reserved loans | (584) | ||
Total allowance for loan losses | (8,759) | ||
Recorded investment in individually impaired loans | 97,196 | ||
Recorded investment in collectively reserved loans | 2,909,115 | ||
Total amortized cost in loans | 3,006,311 | ||
Multifamily [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses for individually impaired loans | (45) | ||
Allowance for loan losses for collectively reserved loans | (212) | ||
Total allowance for loan losses | (257) | ||
Recorded investment in individually impaired loans | 680 | ||
Recorded investment in collectively reserved loans | 329,938 | ||
Total amortized cost in loans | $ 330,618 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Interest Receivable | $ 9,937 | $ 8,604 |
Investments in Securities Tradi
Investments in Securities Trading 1 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | $ 136,542 | $ 48,123 |
Consolidated Trusts [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 793 | 896 |
Mortgage-related securities [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 6,013 | 8,543 |
Fannie Mae [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 2,404 | 3,424 |
Other agency [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 3,451 | 4,490 |
Alt-A and subprime private-label securities [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 158 | 629 |
U.S. Treasury Securities [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 130,456 | 39,501 |
Debt Security, Corporate, US [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | 73 | 79 |
Non-mortgage-related securities [Member] | ||
Schedule of Investments in Trading Securities [Line Items] | ||
Trading, at fair value | $ 130,529 | $ 39,580 |
Investments in Securities Tra_2
Investments in Securities Trading 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net trading gains (losses) | $ 513 | $ 322 | $ 126 |
Net trading gains (losses) recognized in the period related to securities still held at period end | $ 252 | $ 238 | $ 55 |
Investments in Securities Avail
Investments in Securities Available-for-sale Securities 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains | $ 57 | $ 265 | $ 375 |
Proceeds from Sale of Available-for-sale Securities | $ 361 | $ 537 | $ 662 |
Investments in Securities Ava_2
Investments in Securities Available-for-sale Securities 2 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | $ 1,606 | $ 2,281 |
Allowance for Credit Losses | (3) | |
Gross unrealized gains | 106 | 137 |
Gross unrealized losses | (12) | (14) |
Total fair value | 1,697 | 2,404 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | 6 | 10 |
Fannie Mae [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 1,094 | 1,445 |
Allowance for Credit Losses | 0 | |
Gross unrealized gains | 86 | 85 |
Gross unrealized losses | (12) | (10) |
Total fair value | 1,168 | 1,520 |
Other agency [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 59 | 183 |
Allowance for Credit Losses | 0 | |
Gross unrealized gains | 6 | 15 |
Gross unrealized losses | 0 | 0 |
Total fair value | 65 | 198 |
Alt-A and subprime private-label securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 4 | 34 |
Allowance for Credit Losses | 0 | |
Gross unrealized gains | 2 | 23 |
Gross unrealized losses | 0 | 0 |
Total fair value | 6 | 57 |
Mortgage revenue bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 211 | 309 |
Allowance for Credit Losses | (3) | |
Gross unrealized gains | 8 | 9 |
Gross unrealized losses | 0 | (3) |
Total fair value | 216 | 315 |
Other mortgage-related securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total amortized cost | 238 | 310 |
Allowance for Credit Losses | 0 | |
Gross unrealized gains | 4 | 5 |
Gross unrealized losses | 0 | (1) |
Total fair value | $ 242 | $ 314 |
Investments in Securities Ava_3
Investments in Securities Available-for-sale Securities 3 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | 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 | 40 | 130 | |
12 Consecutive Months or Longer, Gross Unrealized Losses | (11) | (13) | |
12 Consecutive Months or Longer, Fair Value | 94 | 340 | |
Net unrealized gains on AFS securities for which we have not recorded OTTI | 74 | 97 | $ 52 |
Accumulated other comprehensive income | 116 | 131 | 322 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Available-for-sale Securities, Other-than-temporary Impairment Recorded | 224 | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (42) | 34 | $ 46 |
Fannie Mae [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less Than 12 Consecutive Months, Gross Unrealized Losses | (1) | 0 | |
Less Than 12 Consecutive Months, Fair Value | 40 | 0 | |
12 Consecutive Months or Longer, Gross Unrealized Losses | (11) | (10) | |
12 Consecutive Months or Longer, Fair Value | 94 | 337 | |
Mortgage revenue bonds [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 | 0 | (3) | |
12 Consecutive Months or Longer, Fair Value | 0 | 3 | |
Other mortgage-related securities [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 | 130 | |
12 Consecutive Months or Longer, Gross Unrealized Losses | 0 | 0 | |
12 Consecutive Months or Longer, Fair Value | $ 0 | $ 0 |
Investments in Securities Other
Investments in Securities Other-than-temporary Impairments 1 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Available-for-sale Securities, Other-than-temporary Impairment not Recorded | $ 74 | 97 | $ 52 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 42 | (34) | (46) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 116 | $ 131 | $ 322 |
Investments in Securities Matur
Investments in Securities Maturity Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | $ 1,606 | $ 2,281 |
Total fair value | 1,697 | 2,404 |
One Year or Less, Amortized Cost | 1 | |
One Year or Less, Fair Value | 1 | |
After One Year through Five Years, Amortized Cost | 32 | |
After One Year through Five Years, Fair Value | 34 | |
After Five Years through Ten Years, Amortized Cost | 146 | |
After Five Years through Ten Years, Fair Value | 162 | |
After Ten Years, Amortized Cost | 1,424 | |
After Ten Years, Fair Value | $ 1,500 | |
Weighted average yield | 5.27% | |
One Year or Less, weighted average yield | 5.90% | |
After One Year through Five Years, weighted average yield | 6.54% | |
After Five Years through Ten Years, weighted average yield | 6.11% | |
After Ten Years, weighted average yield | 5.16% | |
Carrying Value [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | $ 1,603 | |
Fannie Mae [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 1,094 | 1,445 |
Total fair value | 1,168 | 1,520 |
One Year or Less, Amortized Cost | 0 | |
One Year or Less, Fair Value | 0 | |
After One Year through Five Years, Amortized Cost | 5 | |
After One Year through Five Years, Fair Value | 6 | |
After Five Years through Ten Years, Amortized Cost | 96 | |
After Five Years through Ten Years, Fair Value | 108 | |
After Ten Years, Amortized Cost | 993 | |
After Ten Years, Fair Value | 1,054 | |
Other agency [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 59 | 183 |
Total fair value | 65 | 198 |
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 | 9 | |
After Five Years through Ten Years, Fair Value | 10 | |
After Ten Years, Amortized Cost | 50 | |
After Ten Years, Fair Value | 55 | |
Alt-A and subprime private-label securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 4 | 34 |
Total fair value | 6 | 57 |
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 | 1 | |
After Ten Years, Fair Value | 3 | |
Mortgage revenue bonds [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 211 | 309 |
Total fair value | 216 | 315 |
One Year or Less, Amortized Cost | 1 | |
One Year or Less, Fair Value | 1 | |
After One Year through Five Years, Amortized Cost | 27 | |
After One Year through Five Years, Fair Value | 28 | |
After Five Years through Ten Years, Amortized Cost | 19 | |
After Five Years through Ten Years, Fair Value | 20 | |
After Ten Years, Amortized Cost | 161 | |
After Ten Years, Fair Value | 167 | |
Mortgage revenue bonds [Member] | Carrying Value [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 208 | |
Other mortgage-related securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity | ||
Total amortized cost | 238 | 310 |
Total fair value | 242 | $ 314 |
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 | 19 | |
After Five Years through Ten Years, Fair Value | 21 | |
After Ten Years, Amortized Cost | 219 | |
After Ten Years, Fair Value | $ 221 |
Financial Guarantees and Maximu
Financial Guarantees and Maximum Recovery (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Guarantees and Maximum Recovery [Line Items] | ||
Contractual terms of our guarantees | 32 years | |
Maximum exposure | $ 16,252 | $ 18,471 |
Guaranty obligation | 127 | 154 |
Maximum recovery | 6,664 | 8,098 |
Unconsolidated Fannie Mae MBS [Member] | Unconsolidated VIEs [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Maximum exposure | 4,424 | 5,801 |
Guaranty obligation | 18 | 26 |
Maximum recovery | 4,226 | 5,545 |
Other guaranty arrangements [Member] | Unconsolidated VIEs [Member] | ||
Financial Guarantees and Maximum Recovery [Line Items] | ||
Maximum exposure | 11,828 | 12,670 |
Guaranty obligation | 109 | 128 |
Maximum recovery | 2,438 | 2,553 |
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 | $ 137,300 | $ 50,100 |
Short-Term Debt (Details)
Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-Term Debt [Line Items] | ||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 0 | $ 478 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Member] | ||
Short-Term Debt [Line Items] | ||
Debt, Weighted Average Interest Rate | 0.00% | 1.67% |
Fannie Mae [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term debt, outstanding | $ 12,173 | $ 26,662 |
Short-term debt, weighted-average interest rate | 0.18% | 1.56% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 3,923,563 | $ 3,440,724 |
Long-term debt, weighted-average interest rate | 1.85% | 2.78% |
Fannie Mae [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 277,399 | $ 155,585 |
Long-term debt, weighted-average interest rate | 1.34% | 2.86% |
Net unamortized discount, fair value adjustments and other cost basis adjustments | $ 392 | $ 2 |
Fannie Mae [Member] | Senior Fixed [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 161,916 | $ 123,958 |
Long-term debt, weighted-average interest rate | 1.69% | 2.47% |
Fannie Mae [Member] | Senior fixed other debt [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 6,701 | $ 5,254 |
Long-term debt, weighted-average interest rate | 3.90% | 5.01% |
Fannie Mae [Member] | Senior fixed medium-term notes [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 48,524 | $ 32,590 |
Long-term debt, weighted-average interest rate | 0.63% | 1.57% |
Fannie Mae [Member] | Senior fixed benchmark notes and bonds [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 106,691 | $ 86,114 |
Long-term debt, weighted-average interest rate | 2.03% | 2.66% |
Fannie Mae [Member] | Senior floating [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 115,483 | $ 31,596 |
Long-term debt, weighted-average interest rate | 0.86% | 4.40% |
Fannie Mae [Member] | Senior floating Connecticut Avenue Securities [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 14,978 | $ 21,424 |
Long-term debt, weighted-average interest rate | 4.16% | 5.61% |
Fannie Mae [Member] | Senior floating other debt [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 416 | $ 398 |
Long-term debt, weighted-average interest rate | 7.75% | 6.27% |
Fannie Mae [Member] | Senior floating medium-term notes [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 100,089 | $ 9,774 |
Long-term debt, weighted-average interest rate | 0.35% | 1.66% |
Fannie Mae [Member] | Secured borrowings [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 0 | $ 31 |
Long-term debt, weighted-average interest rate | 0.00% | 2.31% |
Consolidated Trusts [Member] | ||
Long-Term Debt [Line Items] | ||
Long-term debt, outstanding | $ 3,646,164 | $ 3,285,139 |
Long-term debt, weighted-average interest rate | 1.88% | 2.78% |
Short-Term and Long-Term Debt C
Short-Term and Long-Term Debt Characteristics of Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | $ 3,923,563,000,000 | $ 3,440,724,000,000 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,923,563,000,000 | |
Consolidated Trusts [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,646,164,000,000 | 3,285,139,000,000 |
Consolidated Trusts [Member] | Earlier of Contractual Maturity or Next Call Date [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
Total long-term debt | 3,646,164,000,000 | |
Fannie Mae [Member] | ||
Long-Term Debt [Line Items] | ||
Face amount | 290,000,000,000 | 182,200,000,000 |
Long-Term Debt by Year of Maturity [Abstract] | ||
2021 | 66,631,000,000 | |
2022 | 65,593,000,000 | |
2023 | 30,946,000,000 | |
2024 | 19,762,000,000 | |
2025 | 39,593,000,000 | |
Thereafter | 54,874,000,000 | |
Total long-term debt | 277,399,000,000 | 155,585,000,000 |
Net unamortized discount, fair value adjustments and other cost basis adjustments | 392,000,000 | 2,000,000 |
Fannie Mae [Member] | Zero-Coupon Debt [Member] | ||
Long-Term Debt [Line Items] | ||
Face amount | $ 5,100,000,000 | 0.0163 |
Effective interest rate | 0.50% | |
Fannie Mae [Member] | Callable [Member] | ||
Long-Term Debt [Line Items] | ||
Outstanding debt | $ 57,500,000,000 | $ 38,500,000,000 |
Fannie Mae [Member] | Earlier of Contractual Maturity or Next Call Date [Member] | ||
Long-Term Debt by Year of Maturity [Abstract] | ||
2021 | 92,454,000,000 | |
2022 | 82,824,000,000 | |
2023 | 20,814,000,000 | |
2024 | 14,881,000,000 | |
2025 | 21,985,000,000 | |
Thereafter | 44,441,000,000 | |
Total long-term debt | $ 277,399,000,000 |
Derivative Instruments Derivati
Derivative Instruments Derivatives 1 - Notional and FV Position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Derivatives [Abstract] | ||
Notional amount | $ 450,981 | $ 243,475 |
Derivative asset, estimated fair value | 1,225 | 271 |
Netting adjustment | (905) | (1,288) |
Derivative Liabilities [Abstract] | ||
Notional amount | 288,198 | 196,666 |
Derivative liability, estimated fair value | (1,495) | (435) |
Netting adjustment | 995 | 1,694 |
Table Footnote [Abstract] | ||
Cash collateral posted for derivative instruments | 658 | 1,000 |
Cash collateral received for derivative instruments | 568 | 635 |
Pay-fixed swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 88,361 | 41,052 |
Derivative asset, estimated fair value | 0 | 0 |
Derivative Liabilities [Abstract] | ||
Notional amount | 11,461 | 29,178 |
Derivative liability, estimated fair value | (595) | (970) |
Receive-fixed Swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 92,315 | 73,579 |
Derivative asset, estimated fair value | 233 | 816 |
Derivative Liabilities [Abstract] | ||
Notional amount | 33,919 | 26,382 |
Derivative liability, estimated fair value | (123) | (62) |
Basis swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 250 | 273 |
Derivative asset, estimated fair value | 192 | 149 |
Derivative Liabilities [Abstract] | ||
Notional amount | 0 | 0 |
Derivative liability, estimated fair value | 0 | 0 |
Foreign currency swap | ||
Asset Derivatives [Abstract] | ||
Notional amount | 237 | 229 |
Derivative asset, estimated fair value | 57 | 39 |
Derivative Liabilities [Abstract] | ||
Notional amount | 239 | 232 |
Derivative liability, estimated fair value | (58) | (65) |
Pay-fixed swaption | ||
Asset Derivatives [Abstract] | ||
Notional amount | 5,530 | 4,600 |
Derivative asset, estimated fair value | 37 | 18 |
Derivative Liabilities [Abstract] | ||
Notional amount | 2,025 | 6,375 |
Derivative liability, estimated fair value | (118) | (219) |
Receive-fixed swaption | ||
Asset Derivatives [Abstract] | ||
Notional amount | 3,355 | 2,875 |
Derivative asset, estimated fair value | 346 | 106 |
Derivative Liabilities [Abstract] | ||
Notional amount | 700 | 4,600 |
Derivative liability, estimated fair value | (16) | (232) |
Futures | ||
Asset Derivatives [Abstract] | ||
Notional amount | 64,398 | 20,507 |
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 | 254,446 | 143,115 |
Derivative asset, estimated fair value | 865 | 1,128 |
Accrued interest receivable | 97 | 226 |
Netting adjustment | (905) | (1,288) |
Total net risk management derivatives - Asset | 57 | 66 |
Derivative Liabilities [Abstract] | ||
Notional amount | 48,344 | 66,767 |
Derivative liability, estimated fair value | (910) | (1,548) |
Accrued interest payable | (105) | (250) |
Netting adjustment | 995 | 1,694 |
Total net risk management derivatives - Liability | (20) | (104) |
Mortgage commitments to purchase whole loans | ||
Asset Derivatives [Abstract] | ||
Notional amount | 35,292 | 7,115 |
Derivative asset, estimated fair value | 145 | 15 |
Derivative Liabilities [Abstract] | ||
Notional amount | 51 | 1,787 |
Derivative liability, estimated fair value | 0 | (1) |
Forward contracts to purchase mortgage-related securities | ||
Asset Derivatives [Abstract] | ||
Notional amount | 144,215 | 55,531 |
Derivative asset, estimated fair value | 844 | 137 |
Derivative Liabilities [Abstract] | ||
Notional amount | 607 | 9,560 |
Derivative liability, estimated fair value | 0 | (28) |
Forward contracts to sell mortgage-related securities | ||
Asset Derivatives [Abstract] | ||
Notional amount | 199 | 9,282 |
Derivative asset, estimated fair value | 0 | 13 |
Derivative Liabilities [Abstract] | ||
Notional amount | 227,828 | 109,066 |
Derivative liability, estimated fair value | (1,426) | (277) |
Mortgage commitment derivatives | ||
Asset Derivatives [Abstract] | ||
Notional amount | 179,706 | 71,928 |
Derivative asset, estimated fair value | 989 | 165 |
Netting adjustment | 0 | 0 |
Derivative Liabilities [Abstract] | ||
Notional amount | 228,486 | 120,413 |
Derivative liability, estimated fair value | (1,426) | (306) |
Netting adjustment | 0 | 0 |
Credit enhancement derivatives | ||
Asset Derivatives [Abstract] | ||
Notional amount | 16,829 | 28,432 |
Derivative asset, estimated fair value | 179 | 40 |
Derivative Liabilities [Abstract] | ||
Notional amount | 11,368 | 9,486 |
Derivative liability, estimated fair value | $ (49) | $ (25) |
Derivative Instruments Deriva_2
Derivative Instruments Derivatives 2 - FV Gains and Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | $ (2,832) | $ (2,110) | $ 422 | ||||||||
Net accrual of periodic settlements | $ 7,086 | $ 6,656 | $ 5,777 | $ 5,347 | $ 5,922 | $ 5,348 | $ 5,227 | $ 4,796 | 24,866 | 21,293 | 21,273 |
Pay-fixed swap | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | (2,764) | (3,964) | 2,940 | ||||||||
Receive-fixed Swap | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | 2,226 | 3,685 | (1,834) | ||||||||
Basis swap | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | 43 | 46 | (21) | ||||||||
Foreign currency swap | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | 23 | 24 | (51) | ||||||||
Pay-fixed swaption | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | (146) | (380) | 100 | ||||||||
Receive-fixed swaption | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | 595 | 117 | (39) | ||||||||
Futures | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | (76) | 273 | 38 | ||||||||
Risk management derivatives | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | (360) | (1,032) | 72 | ||||||||
Net accrual of periodic settlements | (261) | (833) | (1,061) | ||||||||
Mortgage commitment derivatives | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | (2,654) | (1,043) | 324 | ||||||||
Credit enhancement derivatives | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative fair value gains (losses), net | $ 182 | $ (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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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) | $ (3,803) | (2,089) | $ 114 | ||||||||
Deferred income tax provision | 729 | (1,328) | (4,254) | ||||||||
Provision for federal income taxes | $ (1,139) | $ (1,149) | $ (669) | $ (117) | $ (865) | $ (1,036) | $ (889) | $ (627) | $ (3,074) | $ (3,417) | $ (4,140) |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||
Statutory corporate tax rate | 21.00% | 21.00% | 21.00% | ||||||||
Equity investments in affordable housing projects | (0.10%) | (0.20%) | (0.60%) | ||||||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | 0.00% | (1.20%) | 0.00% | ||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.20%) | (0.20%) | 0.20% | ||||||||
Effective tax rate | 20.70% | 19.40% | 20.60% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Deferred tax assets: | |||
Mortgage and mortgage-related assets | $ 8,241,000,000 | $ 9,290,000,000 | |
Allowance for loan losses and basis in acquired property, net | 1,798,000,000 | 1,240,000,000 | |
Debt and derivative instruments | 526,000,000 | 627,000,000 | |
Partnership and other equity investments | 129,000,000 | 152,000,000 | |
Deferred Tax Assets, Investments | 2,561,000,000 | 788,000,000 | |
Total deferred tax assets | 13,255,000,000 | 12,097,000,000 | |
Deferred tax liabilities: | |||
Unrealized gains on AFS securities, net | 20,000,000 | 26,000,000 | |
Deferred Tax Liabilities, Other | 288,000,000 | 161,000,000 | |
Total deferred tax liabilities | 308,000,000 | 187,000,000 | |
Net deferred tax assets | $ 12,947,000,000 | $ 12,213,000,000 | $ 11,910,000,000 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits as of January 1 | $ (416) | $ (514) |
Unrecognized tax benefits as of December 31 | 0 | (416) |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 0 | (98) |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ (416) | 0 |
Unrecognized Tax Benefit Resulting in Tax Credits and/or Net Operating Loss Carryforward | $ 151 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Reporting Assets (Detai
Segment Reporting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,985,749 | $ 3,503,319 |
Operating Segments [Member] | FNM_SingleFamily | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,569,130 | 3,149,212 |
Operating Segments [Member] | FNM_MultifamilyMember | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 416,619 | $ 354,107 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $ 7,086 | $ 6,656 | $ 5,777 | $ 5,347 | $ 5,922 | $ 5,348 | $ 5,227 | $ 4,796 | $ 24,866 | $ 21,293 | $ 21,273 |
Fee and other income | 462 | 566 | 555 | ||||||||
Net revenues | 25,328 | 21,859 | 21,828 | ||||||||
Investment gains, net | 263 | 653 | 149 | (158) | 923 | 253 | 461 | 133 | 907 | 1,770 | 952 |
Fair value gains (losses), net | (880) | (327) | (1,018) | (276) | 84 | (713) | (754) | (831) | (2,501) | (2,214) | 1,121 |
Administrative expenses | (803) | (762) | (754) | (749) | (786) | (749) | (744) | (744) | (3,068) | (3,023) | (3,059) |
Benefit (provision) for credit losses | 1,416 | 501 | (12) | (2,583) | 279 | 1,857 | 1,225 | 650 | (678) | 4,011 | 3,309 |
Foreclosed property income (expense) | (151) | (96) | (128) | (140) | (177) | (515) | (617) | ||||
Credit-related income (expense) | (855) | 3,496 | 2,692 | ||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (697) | (679) | (660) | (637) | (626) | (613) | (600) | (593) | (2,673) | (2,432) | (2,284) |
Other expenses, net | (339) | (313) | (261) | (218) | (194) | (186) | (203) | (162) | (1,131) | (745) | (472) |
Income before federal income taxes | 5,709 | 5,378 | 3,214 | 578 | 5,230 | 4,999 | 4,321 | 3,027 | 14,879 | 17,577 | 20,099 |
Provision for federal income taxes | (1,139) | (1,149) | (669) | (117) | (865) | (1,036) | (889) | (627) | (3,074) | (3,417) | (4,140) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,570 | 4,229 | 2,545 | 461 | 4,365 | 3,963 | 3,432 | 2,400 | 11,805 | 14,160 | 15,959 |
Credit Enhancement Expense | (300) | (325) | (360) | (376) | $ (352) | $ (290) | $ (276) | $ (216) | (1,361) | (1,134) | (679) |
Change in expected credit enhancement recoveries | $ (180) | $ (48) | $ 273 | $ 188 | 233 | 0 | 0 | ||||
US Treasury [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (2,673) | (2,432) | (2,284) | ||||||||
Operating Segments [Member] | FNM_MultifamilyMember | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 3,364 | 3,280 | 3,111 | ||||||||
Fee and other income | 94 | 113 | 105 | ||||||||
Net revenues | 3,458 | 3,393 | 3,216 | ||||||||
Investment gains, net | 179 | 181 | 102 | ||||||||
Fair value gains (losses), net | 38 | 2 | (89) | ||||||||
Administrative expenses | (509) | (458) | (428) | ||||||||
Benefit (provision) for credit losses | (603) | (27) | (4) | ||||||||
Foreclosed property income (expense) | (20) | 8 | (13) | ||||||||
Credit-related income (expense) | (623) | (19) | (17) | ||||||||
Other expenses, net | (76) | (11) | |||||||||
Income before federal income taxes | 2,391 | 2,881 | 2,645 | ||||||||
Provision for federal income taxes | (467) | (558) | (432) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,924 | 2,323 | 2,213 | ||||||||
Credit Enhancement Expense | (220) | (207) | (165) | ||||||||
Change in expected credit enhancement recoveries | 144 | 0 | 0 | ||||||||
Other Income | (26) | ||||||||||
Operating Segments [Member] | FNM_SingleFamily | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 21,502 | 18,013 | 18,162 | ||||||||
Fee and other income | 368 | 453 | 450 | ||||||||
Net revenues | 21,870 | 18,466 | 18,612 | ||||||||
Investment gains, net | 728 | 1,589 | 850 | ||||||||
Fair value gains (losses), net | (2,539) | (2,216) | 1,210 | ||||||||
Administrative expenses | (2,559) | (2,565) | (2,631) | ||||||||
Benefit (provision) for credit losses | (75) | 4,038 | 3,313 | ||||||||
Foreclosed property income (expense) | (157) | (523) | (604) | ||||||||
Credit-related income (expense) | (232) | 3,515 | 2,709 | ||||||||
Other expenses, net | (1,055) | (734) | (498) | ||||||||
Income before federal income taxes | 12,488 | 14,696 | 17,454 | ||||||||
Provision for federal income taxes | (2,607) | (2,859) | (3,708) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 9,881 | 11,837 | 13,746 | ||||||||
Credit Enhancement Expense | (1,141) | (927) | (514) | ||||||||
Change in expected credit enhancement recoveries | 89 | 0 | 0 | ||||||||
Operating Segments [Member] | US Treasury [Member] | FNM_MultifamilyMember | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | 0 | 0 | 0 | ||||||||
Operating Segments [Member] | US Treasury [Member] | FNM_SingleFamily | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | $ (2,673) | $ (2,432) | $ (2,284) |
Equity Narratives (Details)
Equity Narratives (Details) | Sep. 08, 2008USD ($)$ / shares | Sep. 08, 2008USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2022USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2017USD ($) | Sep. 07, 2008$ / shares |
Class of Stock [Line Items] | |||||||||
Preferred Stock, Redemption Terms | two | ||||||||
Common Stock, Shares, Outstanding | shares | 1,158,087,567 | 1,158,087,567 | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 11,790,000,000 | $ 13,969,000,000 | $ 15,611,000,000 | ||||||
Preferred Stock, Covenant, Maximum Mortgage Assets | 250,000,000,000 | ||||||||
Payment Of Cash Dividends On Senior Preferred Stock To Treasury | 0 | 5,601,000,000 | 9,372,000,000 | ||||||
FHFA Debt Limit | $ 300,000,000,000 | ||||||||
Accumulated Deficit | |||||||||
Class of Stock [Line Items] | |||||||||
Payment Of Cash Dividends On Senior Preferred Stock To Treasury | $ 5,601,000,000 | $ 9,372,000,000 | |||||||
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 | $ 142,200,000,000 | ||||||||
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 | ||||||
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 | $ 290,000,000,000 | $ 182,200,000,000 | |||||||
Forecast [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred Stock, Covenant, Maximum Mortgage Assets | $ 225,000,000,000 | ||||||||
Debt Instrument, Face Amount | $ 270,000,000,000 |
Equity Schedule of Stock by Cla
Equity Schedule of Stock by Class (Details) | Sep. 08, 2008USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Mar. 31, 2021shares | Sep. 30, 2020USD ($) | Dec. 31, 2017USD ($)shares | 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 | 142,192,000,000 | 131,178,000,000 | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 25,259,000,000 | $ 14,608,000,000 | $ 6,240,000,000 | $ (3,686,000,000) | ||||||||
Preferred stock, shares issued | shares | 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 | 1,158,087,567 | 1,158,087,567 | ||||||||||
Weighted Average Number of Shares, Contingently Issuable | shares | 4,700,000,000 | 4,600,000,000 | 4,600,000,000 | |||||||||
Preferred Stock, Redemption Terms | two | |||||||||||
Payment Of Cash Dividends On Senior Preferred Stock To Treasury | $ 0 | $ 5,601,000,000 | $ 9,372,000,000 | |||||||||
Forecast [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Senior preferred stock, shares outstanding | shares | 146,800,000,000 | |||||||||||
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, 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, 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, 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, stated value per share | $ / shares | $ 50 | |||||||||||
Preferred stock, annual dividend rate (as a percent) | 0.15% | |||||||||||
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, stated value per share | $ / shares | $ 50 | |||||||||||
Preferred stock, annual dividend rate (as a percent) | 0.00% | |||||||||||
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, 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, 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, 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, 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, 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, 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, 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, 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, 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, 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, stated value per share | $ / shares | $ 25 | |||||||||||
Preferred stock, annual dividend rate (as a percent) | 7.75% | |||||||||||
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 | $ 200,000,000 | $ 2,000,000,000 | ||||||||
Preferred stock, stated value per share | $ / shares | $ 25 | |||||||||||
Preferred stock, annual dividend rate (as a percent) | 8.25% | |||||||||||
Preferred Stock, Liquidation Preference, Value | $ 25,000,000 | |||||||||||
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 | |||||||||
Aggregate liquidation preference of senior preferred stock | $ 142,200,000,000 | |||||||||||
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 | $ 120,836,000,000 | $ 117,149,000,000 | ||||||||
Accumulated Deficit | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (108,110,000,000) | (118,776,000,000) | (127,335,000,000) | $ (133,805,000,000) | ||||||||
Payment Of Cash Dividends On Senior Preferred Stock To Treasury | $ 5,601,000,000 | $ 9,372,000,000 | ||||||||||
Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares, Outstanding | shares | 556,000,000 | 556,000,000 | 556,000,000 | 556,000,000 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 19,130,000,000 | $ 19,130,000,000 | $ 19,130,000,000 | $ 19,130,000,000 | ||||||||
Preferred stock, shares issued | shares | 556,000,000 | 556,000,000 |
Equity Accumulated Other Compre
Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | |||
Net unrealized gains on AFS securities for which we have not recorded OTTI | $ 74 | $ 97 | $ 52 |
Other | 42 | (34) | (46) |
Accumulated other comprehensive income | 116 | $ 131 | $ 322 |
Mortgage Assets | 165,000 | ||
FHFA Debt Limit | $ 300,000 |
Equity Changes in AOCI (Details
Equity Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Statutory corporate tax rate | 21.00% | 21.00% | 21.00% |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 14,608 | ||
Total other comprehensive loss | (15) | $ (191) | $ (348) |
Ending balance | $ 25,259 | $ 14,608 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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) | $ 25,259,000,000 | $ 14,608,000,000 | $ 6,240,000,000 | $ (3,686,000,000) | |
Core capital | (95,694,000,000) | (106,360,000,000) | |||
Statutory minimum capital requirement | 28,603,000,000 | 22,392,000,000 | |||
Deficit of core capital over statutory minimum capital requirement | $ (124,297,000,000) | (128,752,000,000) | |||
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 | $ 25,259,000,000 | 14,608,000,000 | |||
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 | $ 3,000,000,000 |
Concentrations of Credit Risk G
Concentrations of Credit Risk Geographic Concentration (Details) - Guaranty Book of Business [Member] | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 14.00% | 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 | 19.00% | 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 | 11.00% | 10.00% |
Multifamily [Member] | Northeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 15.00% | 15.00% |
Multifamily [Member] | Southeast [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 27.00% | 27.00% |
Multifamily [Member] | Southwest [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 22.00% | 23.00% |
Multifamily [Member] | West [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of book of business | 25.00% | 25.00% |
Concentrations of Credit Risk S
Concentrations of Credit Risk SF Risk Characteristics (Details) - Single-Family [Member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30 days delinquent (percentage of book of business) | 0.88% | 1.07% |
60 days delinquent (percentage of book of business) | 0.33% | 0.29% |
Seriously delinquent (percentage of book of business) | 3.10% | 0.59% |
30 days delinquent (percentage of conventional loans) | 1.02% | 1.27% |
60 days delinquent (percentage of conventional loans) | 0.36% | 0.35% |
Seriously delinquent (percentage of conventional loans) | 2.87% | 0.66% |
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) | 2.62% | 0.32% |
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) | 4.17% | 0.84% |
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) | 3.10% | 0.91% |
Percentage of book of business | 3.00% | 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) | 4.57% | 1.13% |
Percentage of book of business | 3.00% | 3.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 4.79% | 1.18% |
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) | 2.59% | 0.64% |
Percentage of book of business | 64.00% | 63.00% |
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) | 22.43% | 10.14% |
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) | 9.32% | 2.95% |
Percentage of book of business | 1.00% | 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) | 5.88% | 2.48% |
Percentage of book of business | 2.00% | 2.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | 2005 - 2008 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 9.98% | 4.11% |
Percentage of book of business | 2.00% | 4.00% |
Guaranty Book of Business [Member] | Conventional Mortgage [Member] | 2009 - 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Seriously delinquent (percentage of conventional loans) | 2.39% | 0.35% |
Percentage of book of business | 96.00% | 94.00% |
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, 2020 | Dec. 31, 2019 | |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serious delinquency: days past due | 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 | |
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) | 0.29% | 0.02% |
Seriously delinquent (percentage of book of business) | 0.98% | 0.04% |
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 | 1.04% | 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 | 0.98% | 0.04% |
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 | 21.19% | 0.48% |
Concentrations of Credit Risk O
Concentrations of Credit Risk Other Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Estimated benefit included in combined loss reserves | $ 1,400 | $ 410 |
Receivable from claims on insured, defaulted loans excluding government insured loans | 560 | 654 |
Allowance for mortgage insurance receivable | $ 497 | 541 |
PMI [Member] | ||
Concentration Risk [Line Items] | ||
Mortgage insurance coverage risk in force percentage to be paid in cash | 76.50% | |
Mortgage insurance coverage risk in force percentage to be deferred | 23.50% | |
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] | Guaranty Book of Business [Member] | ||
Concentration Risk [Line Items] | ||
Primary mortgage insurance coverage risk in force | $ 170,890 | 162,855 |
Mortgage insurance coverage risk in force | $ 171,181 | $ 163,194 |
Mortgage insurance coverage risk in force as a percentage of book of business | 5.00% | 6.00% |
Pool mortgage insurance coverage risk in force | $ 291 | $ 339 |
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 | 48.00% | 59.00% |
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 | $ 2,400 | |
Percentage of concentration risk | 1.00% | |
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 | 21.00% | 23.00% |
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 | 19.00% | 20.00% |
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 | 16.00% | 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 | 16.00% | 14.00% |
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% | 10.00% |
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 | 13.00% | 17.00% |
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 | 11.00% | 15.00% |
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 | 24.00% | 27.00% |
Multifamily [Member] | ||
Concentration Risk [Line Items] | ||
Maximum potential loss recovery from lenders under risk sharing agreements | $ 92,900 | $ 81,400 |
Multifamily [Member] | Lender Concentration Risk [Member] | Four Major Lenders [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 51.00% | |
Multifamily [Member] | Guaranty Book of Business [Member] | Credit Concentration Risk [Member] | Wells Fargo Bank N.A. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 13.00% |
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 | 24.00% | 23.00% |
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, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral, Amount Eligible to be Repledged by Counterparty | $ 4,700 | $ 2,300 |
Assets: | ||
Derivative assets, gross amount | 1,951 | 1,519 |
Derivative asset, gross amount offset | (905) | (1,288) |
Derivative assets, net amount presented in our consolidated balance sheets | 1,046 | 231 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | (406) | (101) |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | (53) | (1) |
Derivative assets, net amount | 587 | 129 |
Securities purchased under agreements to resell, or similar arrangements, gross amount | 46,644 | 24,928 |
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 | 46,644 | 24,928 |
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 | (46,644) | (24,928) |
Securities purchased under agreements to resell or similar arrangements, net amount | 0 | 0 |
Total assets, gross amount | 48,595 | 26,447 |
Total assets, gross amount offset | (905) | (1,288) |
Total assets, net amount presented in the consolidated balance sheets | 47,690 | 25,159 |
Total assets, under the master netting arrangements, not offset in our consolidated balance sheets, financial instruments | (406) | (101) |
Total assets, under master netting arrangements, not offset in our consolidated balance sheets, collateral | (46,697) | (24,929) |
Total assets, net amount | 587 | 129 |
Liabilities: | ||
Derivative liabilities, gross amount | (2,441) | (2,104) |
Derivative liabilities, gross amount offset | 995 | 1,694 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (1,446) | (410) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 406 | 101 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 1,019 | 182 |
Derivative liabilities, net amount | (21) | (127) |
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 | (2,441) | (2,582) |
Total liabilities, gross amount offset | 995 | 1,694 |
Total liabilities, net amount presented in our consolidated balance sheets | (1,446) | (888) |
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial statements | 406 | 101 |
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 1,019 | 657 |
Total liabilities, net amount | (21) | (130) |
Securities Received as Collateral | 46,600 | 24,700 |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 46,600 | 23,800 |
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 0 | 0 |
Derivative Asset, Not Subject to Master Netting Arrangement | 179 | 40 |
Derivative Liability, Not Subject to Master Netting Arrangement | 49 | 25 |
Risk management derivatives | ||
Assets: | ||
Derivative asset, gross amount offset | (905) | (1,288) |
Liabilities: | ||
Derivative liabilities, gross amount offset | 995 | 1,694 |
Mortgage commitment derivatives | ||
Assets: | ||
Derivative assets, gross amount | 989 | 165 |
Derivative asset, gross amount offset | 0 | 0 |
Derivative assets, net amount presented in our consolidated balance sheets | 989 | 165 |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | (406) | (101) |
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | (53) | (1) |
Derivative assets, net amount | 530 | 63 |
Liabilities: | ||
Derivative liabilities, gross amount | (1,426) | (306) |
Derivative liabilities, gross amount offset | 0 | 0 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (1,426) | (306) |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments | 406 | 101 |
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral | 1,017 | 181 |
Derivative liabilities, net amount | (3) | (24) |
Over the Counter [Member] | Risk management derivatives | ||
Assets: | ||
Derivative assets, gross amount | 962 | 1,354 |
Derivative asset, gross amount offset | (952) | (1,334) |
Derivative assets, net amount presented in our consolidated balance sheets | 10 | 20 |
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 | 10 | 20 |
Liabilities: | ||
Derivative liabilities, gross amount | (1,015) | (1,798) |
Derivative liabilities, gross amount offset | 999 | 1,695 |
Derivative liabilities, net amount presented in our consolidated balance sheets | (16) | (103) |
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 | (16) | (103) |
Exchange Cleared [Member] | Risk management derivatives | ||
Assets: | ||
Derivative assets, gross amount | 0 | 0 |
Derivative asset, gross amount offset | 47 | 46 |
Derivative assets, net amount presented in our consolidated balance sheets | 47 | 46 |
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 | 47 | 46 |
Liabilities: | ||
Derivative liabilities, gross amount | 0 | 0 |
Derivative liabilities, gross amount offset | (4) | (1) |
Derivative liabilities, net amount presented in our consolidated balance sheets | (4) | (1) |
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 | 2 | 1 |
Derivative liabilities, net amount | (2) | 0 |
Cash and Cash Equivalents [Member] | ||
Liabilities: | ||
Securities Purchased under Agreements to Resell | $ 18,400 | $ 11,400 |
Netting Arrangements Narratives
Netting Arrangements Narratives (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Fair value of non-cash collateral we pledged | $ 4,700 | $ 2,300 |
Fair value of non-cash collateral received | 46,600 | 24,700 |
Fair value of non-cash collateral received that could be sold or repledged | 46,600 | 23,800 |
Fair value of underlying collateral that was sold or repledged | 0 | 0 |
Derivative assets not subject to an enforceable master netting arrangement | 179 | 40 |
Derivative liabilities not subject to an enforceable master netting arrangement | 49 | 25 |
Cash and Cash Equivalents [Member] | ||
Derivative [Line Items] | ||
Securities purchased under agreements to resell | $ 18,400 | $ 11,400 |
Fair Value Levels Hierarchy (De
Fair Value Levels Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Mortgage loans held for investment, at fair value | $ 6,490 | $ 7,825 |
Other assets [Abstract] | ||
Derivative asset, gross amount offset | (905) | (1,288) |
Other liabilities [Abstract] | ||
Derivative liabilities, gross amount offset | (995) | (1,694) |
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 | 3,728 | 5,687 |
Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 24,586 | 21,880 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Trading securities | 130,456 | 39,501 |
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 nonrecurring assets at fair value | 227,635 | 89,558 |
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 | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for investment, at fair value | 3,512,672 | 3,270,535 |
Other assets [Abstract] | ||
Derivative assets at fair value | 1,748 | 1,360 |
Total nonrecurring assets at fair value | 3,578,668 | 3,313,691 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 2,441 | 2,092 |
Total liabilities at fair value | 4,059,705 | 3,506,144 |
Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 288,414 | 164,144 |
Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 3,756,673 | 3,312,763 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for investment, at fair value | 255,556 | 127,650 |
Other assets [Abstract] | ||
Derivative assets at fair value | 382 | 199 |
Total nonrecurring assets at fair value | 262,442 | 136,048 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 49 | 37 |
Total liabilities at fair value | 32,593 | 32,362 |
Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 878 | 401 |
Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 31,584 | 31,827 |
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 | 1,120 | |
Assets [Abstract] | ||
Trading securities | 136,542 | 48,123 |
Available-for-sale securities | 1,697 | 2,404 |
Mortgage loans held for investment, at fair value | 6,490 | 7,825 |
Other assets [Abstract] | ||
Derivative asset, gross amount offset | (905) | (1,288) |
Derivative assets at fair value | 1,225 | 271 |
Total nonrecurring assets at fair value | 147,074 | 58,623 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 28,314 | 27,567 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1,495 | 435 |
Derivative liabilities, gross amount offset | (995) | (1,694) |
Total liabilities at fair value | 29,809 | 28,002 |
Recurring Fair Value Measurements [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 579 | 1,230 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 881 | 1,347 |
Recurring Fair Value Measurements [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 383 | 124 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 134 | 451 |
Recurring Fair Value Measurements [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 179 | 40 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 49 | 25 |
Recurring Fair Value Measurements [Member] | Mortgage commitment derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 989 | 165 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1,426 | 306 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 3,728 | 5,687 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 3,728 | 5,687 |
Recurring Fair Value Measurements [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 24,586 | 21,880 |
Recurring Fair Value Measurements [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 2,404 | 3,424 |
Available-for-sale securities | 1,168 | 1,520 |
Recurring Fair Value Measurements [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 3,451 | 4,490 |
Available-for-sale securities | 65 | 198 |
Recurring Fair Value Measurements [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 158 | 629 |
Available-for-sale securities | 6 | 57 |
Recurring Fair Value Measurements [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 216 | 315 |
Recurring Fair Value Measurements [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 242 | 314 |
Recurring Fair Value Measurements [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 130,456 | 39,501 |
Recurring Fair Value Measurements [Member] | Debt Security, Corporate, US [Member] | ||
Assets [Abstract] | ||
Trading securities | 73 | 79 |
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 | 1,120 | |
Assets [Abstract] | ||
Trading securities | 130,456 | 39,501 |
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 nonrecurring assets at fair value | 131,576 | 39,501 |
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 | 130,456 | 39,501 |
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] | ||
Assets [Abstract] | ||
Trading securities | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for investment, at fair value | 5,629 | 7,137 |
Other assets [Abstract] | ||
Derivative assets at fair value | 1,748 | 1,360 |
Total nonrecurring assets at fair value | 14,417 | 18,685 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 27,815 | 27,094 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 2,441 | 2,092 |
Total liabilities at fair value | 30,256 | 29,186 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 376 | 1,071 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 881 | 1,346 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Swaptions [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 383 | 124 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 134 | 440 |
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 | 989 | 165 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 1,426 | 306 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 3,312 | 5,289 |
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 | 3,312 | 5,289 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 24,503 | 21,805 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 2,310 | 3,379 |
Available-for-sale securities | 973 | 1,349 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 3,450 | 4,489 |
Available-for-sale securities | 65 | 198 |
Recurring Fair Value Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alt-A and subprime private-label securities [Member] | ||
Assets [Abstract] | ||
Trading securities | 158 | 629 |
Available-for-sale securities | 4 | 57 |
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 | 7 | 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 | 73 | 79 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for investment, at fair value | 861 | 688 |
Other assets [Abstract] | ||
Derivative assets at fair value | 382 | 199 |
Total nonrecurring assets at fair value | 1,986 | 1,725 |
Liabilities [Abstract] | ||
Long-term debt, fair value | 499 | 473 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 49 | 37 |
Total liabilities at fair value | 548 | 510 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Swaps [Member] | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 203 | 159 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 0 | 1 |
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 | 0 | 11 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Credit enhancement derivatives | ||
Other assets [Abstract] | ||
Derivative assets at fair value | 179 | 40 |
Other liabilities [Abstract] | ||
Derivatives liabilities at fair value | 49 | 25 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [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] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 416 | 398 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | Senior floating [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 416 | 398 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Liabilities [Abstract] | ||
Long-term debt, fair value | 83 | 75 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Assets [Abstract] | ||
Trading securities | 94 | 45 |
Available-for-sale securities | 195 | 171 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other agency [Member] | ||
Assets [Abstract] | ||
Trading securities | 1 | 1 |
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 | 0 |
Available-for-sale securities | 2 | 0 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage revenue bonds [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 216 | 315 |
Recurring Fair Value Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale securities | 235 | 306 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (8) | $ 1 | $ 4 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 46 | 33 | 1,201 |
Total gains or (losses) (realized/unrealized) Included in Net Income | (9) | 3 | 77 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 77 | 1 |
Sales | (95) | (22) | (1,059) |
Issues | 0 | 0 | 0 |
Settlements | (3) | (17) | (7) |
Transfers out of Level 3 | (49) | (108) | (181) |
Transfers into Level 3 | 205 | 80 | 1 |
Ending Balance | 95 | 46 | 33 |
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 | (8) | 1 | 4 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 45 | 32 | 971 |
Total gains or (losses) (realized/unrealized) Included in Net Income | (12) | 3 | 163 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 77 | 1 |
Sales | (1) | (22) | 1,059 |
Issues | 0 | 0 | 0 |
Settlements | 0 | (16) | (1) |
Transfers out of Level 3 | (48) | (108) | (44) |
Transfers into Level 3 | 110 | 79 | 1 |
Ending Balance | 94 | 45 | 32 |
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 | 1 | 0 | 35 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | 0 | (1) |
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 | 0 | 0 | 1 |
Transfers out of Level 3 | (1) | 0 | (33) |
Transfers into Level 3 | 1 | 1 | 0 |
Ending Balance | 1 | 1 | 0 |
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 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | 1 | 195 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 3 | 0 | (85) |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | (94) | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (3) | (1) | (5) |
Transfers out of Level 3 | 0 | 0 | 104 |
Transfers into Level 3 | 94 | 0 | 0 |
Ending Balance | 0 | 0 | 1 |
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 | 792 | 952 | 1,313 |
Total gains or (losses) (realized/unrealized) Included in Net Income | (8) | 19 | 30 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 5 | (11) | (53) |
Purchases | 0 | 0 | 0 |
Sales | (1) | (28) | (22) |
Issues | 0 | 0 | 0 |
Settlements | (177) | (158) | (263) |
Transfers out of Level 3 | (243) | (106) | (53) |
Transfers into Level 3 | 280 | 124 | 0 |
Ending Balance | 648 | 792 | 952 |
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 | 171 | 152 | 208 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 1 | 0 | 2 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 4 | 7 | 1 |
Purchases | 0 | 0 | 0 |
Sales | (1) | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (15) | (8) | (10) |
Transfers out of Level 3 | (243) | (103) | (49) |
Transfers into Level 3 | 278 | 123 | 0 |
Ending Balance | 195 | 171 | 152 |
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 | 0 | 24 | 77 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 0 | 5 | 0 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | (5) | (45) |
Purchases | 0 | 0 | 0 |
Sales | 0 | (23) | 0 |
Issues | 0 | 0 | 0 |
Settlements | 0 | (1) | (4) |
Transfers out of Level 3 | 0 | 0 | 4 |
Transfers into Level 3 | 2 | 0 | 0 |
Ending Balance | 2 | 0 | 24 |
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 | 315 | 434 | 671 |
Total gains or (losses) (realized/unrealized) Included in Net Income | (3) | 1 | 0 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 2 | (3) | (7) |
Purchases | 0 | 0 | 0 |
Sales | 0 | (5) | (22) |
Issues | 0 | 0 | 0 |
Settlements | (98) | (112) | (208) |
Transfers out of Level 3 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Ending Balance | 216 | 315 | 434 |
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 | 306 | 342 | 357 |
Total gains or (losses) (realized/unrealized) Included in Net Income | (6) | 13 | 28 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | (1) | (10) | (2) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | (64) | (37) | (41) |
Transfers out of Level 3 | 0 | (3) | 0 |
Transfers into Level 3 | 0 | 1 | 0 |
Ending Balance | 235 | 306 | 342 |
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 | 11 | 26 | 14 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 688 | 937 | 1,116 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 47 | 46 | 38 |
Total gains or (losses) (realized/unrealized) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | (21) | (52) | 0 |
Issues | 0 | 0 | 0 |
Settlements | (132) | (136) | (216) |
Transfers out of Level 3 | (104) | (254) | (162) |
Transfers into Level 3 | 383 | 147 | 161 |
Ending Balance | 861 | 688 | 937 |
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 | 159 | 3 | 40 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 162 | 194 | 134 |
Total gains or (losses) (realized/unrealized) Included in Net Income | 233 | 109 | (38) |
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 | (80) | 119 | 45 |
Transfers out of Level 3 | 18 | (10) | 53 |
Transfers into Level 3 | 0 | (12) | 0 |
Ending Balance | 333 | 162 | 194 |
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 | (42) | (51) | 23 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (473) | (552) | (958) |
Total gains (losses) (realized/unrealized) Included in Net Income | (43) | 55 | 34 |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 2 | 1 |
Settlements | 41 | 19 | 44 |
Transfers out of Level 3 | 5 | 200 | 541 |
Transfers Into Level 3 | (29) | (83) | (214) |
Ending Balance | (499) | (473) | (552) |
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 | (1) | (4) | (2) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (75) | (201) | (582) |
Total gains (losses) (realized/unrealized) Included in Net Income | (2) | (8) | 9 |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 2 | 1 |
Settlements | 18 | 19 | 44 |
Transfers out of Level 3 | 5 | 200 | 541 |
Transfers Into Level 3 | (29) | (83) | (214) |
Ending Balance | (83) | (75) | (201) |
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 | (41) | (47) | 25 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | (398) | (351) | (376) |
Total gains (losses) (realized/unrealized) Included in Net Income | (41) | (47) | 25 |
Total gains (losses) Included in Other Comprehensive Income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issues | 0 | 0 | 0 |
Settlements | 23 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 |
Ending Balance | (416) | (398) | (351) |
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 | 4 | (3) | 0 |
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 | 0 | 6 | 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 | 0 | 1 |
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 | 4 | (1) | (2) |
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 | 0 | (8) | 1 |
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 |
Fair Value Level 3 Valuation In
Fair Value Level 3 Valuation Inputs - Recurring (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 6,490 | $ 7,825 |
Net derivatives | 1,046 | 231 |
Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 136,542 | 48,123 |
Available-for-sale securities | 1,697 | 2,404 |
Mortgage loans held for investment, at fair value | 6,490 | 7,825 |
Long-term debt | (28,314) | (27,567) |
Total nonrecurring assets at fair value | 147,074 | 58,623 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 130,456 | 39,501 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Mortgage loans held for sale, at lower of cost or fair value | 0 | 0 |
Total nonrecurring assets at fair value | 227,635 | 89,558 |
Fair Value, Inputs, Level 1 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 130,456 | 39,501 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Long-term debt | 0 | 0 |
Total nonrecurring assets at fair value | 131,576 | 39,501 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Total nonrecurring assets at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for investment, at fair value | 3,512,672 | 3,270,535 |
Mortgage loans held for sale, at lower of cost or fair value | 116 | 229 |
Total nonrecurring assets at fair value | 3,578,668 | 3,313,691 |
Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for investment, at fair value | 5,629 | 7,137 |
Long-term debt | (27,815) | (27,094) |
Total nonrecurring assets at fair value | 14,417 | 18,685 |
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 | 25 | 274 |
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for investment, at fair value | 255,556 | 127,650 |
Mortgage loans held for sale, at lower of cost or fair value | 5,502 | 7,054 |
Total nonrecurring assets at fair value | 262,442 | 136,048 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for investment, at fair value | 861 | 688 |
Net derivatives | 333 | 162 |
Long-term debt | (499) | (473) |
Total nonrecurring assets at fair value | 1,986 | 1,725 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Net derivatives | 130 | 15 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Dealer Mark [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Net derivatives | 203 | 147 |
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 | 1,087 | 1,076 |
Total nonrecurring assets at fair value | 2,742 | 2,598 |
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 | 754 | 471 |
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 | 333 | 605 |
Agency [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 195 | |
Agency [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Consensus without inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 97 | |
Agency [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 98 | 107 |
Alt-A and subprime private-label securities [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 158 | 629 |
Available-for-sale securities | 6 | 57 |
Alt-A and subprime private-label securities [Member] | Fair Value, Inputs, Level 1 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Alt-A and subprime private-label securities [Member] | Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 158 | 629 |
Available-for-sale securities | 4 | 57 |
Alt-A and subprime private-label securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 2 | 0 |
Alt-A and subprime private-label securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 171 | |
Mortgage revenue bonds [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 216 | 315 |
Mortgage revenue bonds [Member] | Fair Value, Inputs, Level 1 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage revenue bonds [Member] | Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage revenue bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 216 | 315 |
Mortgage revenue bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Single vendor with inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 144 | 222 |
Mortgage revenue bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Trading securities | 64 | |
Available-for-sale securities | 72 | 93 |
Other [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 242 | 314 |
Other [Member] | Fair Value, Inputs, Level 1 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 7 | 8 |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | 235 | 306 |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | $ 206 | $ 267 |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Available-for-sale securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 3200.00% | 23.00% |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Available-for-sale securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 31530.00% | 205.10% |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Discounted cash flow with inputs [Member] | Available-for-sale securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Spread (bps) | 9340.00% | 76.10% |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | $ 29 | $ 39 |
Subprime [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Fair Value Measurements [Member] | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Available-for-sale securities | $ 2 |
Fair Value Level 3 Valuation -
Fair Value Level 3 Valuation - Nonrecurring (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | $ 6,490 | $ 7,825 |
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 | 116 | 229 |
Mortgage loans held for investment, at fair value | 3,512,672 | 3,270,535 |
Total nonrecurring assets at fair value | 3,578,668 | 3,313,691 |
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 | 5,502 | 7,054 |
Mortgage loans held for investment, at fair value | 255,556 | 127,650 |
Total nonrecurring assets at fair value | 262,442 | 136,048 |
Fair Value, Recurring [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 6,490 | 7,825 |
Total nonrecurring assets at fair value | 147,074 | 58,623 |
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 | 5,629 | 7,137 |
Total nonrecurring assets at fair value | 14,417 | 18,685 |
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 | 861 | 688 |
Total nonrecurring assets at fair value | 1,986 | 1,725 |
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 | 25 | 274 |
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 | 1,087 | 1,076 |
Total nonrecurring assets at fair value | 2,742 | 2,598 |
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 | 754 | 471 |
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 | 333 | 605 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_MultifamilyMember | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 390 | 40 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_MultifamilyMember | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 40 | 16 |
Acquired property, net | 25 | 9 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_MultifamilyMember | Internal model [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 125 | |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_MultifamilyMember | Asset Manager Estimate [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 0 | 24 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_MultifamilyMember | Appraisals [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 225 | |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 261 | 918 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | Other valuation technique [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 11 | 51 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | Internal model [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage loans held for investment, at fair value | 979 | 555 |
Acquired property, net | 41 | 164 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | Accepted Offers [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 35 | 101 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | Appraisals [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | 89 | 362 |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | FNM_SingleFamily | Walk Forwards [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Acquired property, net | $ 85 | $ 240 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement [Domain] | ||
Financial assets [Abstract] | ||
Netting adjustment | $ (905) | $ (1,288) |
Financial liabilities [Abstract] | ||
Netting adjustment | (995) | (1,694) |
Mortgage loans held for investment, at fair value | 6,490 | 7,825 |
Netting adjustment | (905) | (1,288) |
Netting adjustment | (995) | (1,694) |
Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Trading securities | 136,542 | 48,123 |
Available-for-sale securities | 1,697 | 2,404 |
Mortgage loans held for investment, at fair value | 6,490 | 7,825 |
Derivative assets at fair value | 1,225 | 271 |
Netting adjustment | (905) | (1,288) |
Total assets at fair value | 147,074 | 58,623 |
Financial liabilities [Abstract] | ||
Long-term debt | 28,314 | 27,567 |
Derivatives liabilities at fair value | 1,495 | 435 |
Netting adjustment | (995) | (1,694) |
Total liabilities at fair value | 29,809 | 28,002 |
Other [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Available-for-sale securities | 242 | 314 |
Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 24,586 | 21,880 |
Consolidated Trusts [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 24,586 | 21,880 |
Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,728 | 5,687 |
Fannie Mae [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,728 | 5,687 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 97,179 | 50,057 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 0 | 0 |
Trading securities | 130,456 | 39,501 |
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 | 227,635 | 89,558 |
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] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Trading securities | 130,456 | 39,501 |
Available-for-sale securities | 0 | 0 |
Mortgage loans held for investment, at fair value | 0 | 0 |
Derivative assets at fair value | 0 | 0 |
Total assets at fair value | 131,576 | 39,501 |
Financial liabilities [Abstract] | ||
Long-term debt | 0 | 0 |
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] | Other [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consolidated Trusts [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 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] | Fannie Mae [Member] | Fair Value, Recurring [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 | 18,444 | 11,350 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 28,200 | 13,578 |
Trading securities | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for sale | 116 | 229 |
Mortgage loans held for investment, at fair value | 3,512,672 | 3,270,535 |
Advances to lenders | 10,448 | 6,451 |
Derivative assets at fair value | 1,748 | 1,360 |
Guaranty assets and buy-ups | 0 | 0 |
Total assets at fair value | 3,578,668 | 3,313,691 |
Financial liabilities [Abstract] | ||
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Derivatives liabilities at fair value | 2,441 | 2,092 |
Guaranty obligations | 0 | 0 |
Total liabilities at fair value | 4,059,705 | 3,506,144 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Trading securities | 5,991 | 8,576 |
Available-for-sale securities | 1,049 | 1,612 |
Mortgage loans held for investment, at fair value | 5,629 | 7,137 |
Derivative assets at fair value | 1,748 | 1,360 |
Total assets at fair value | 14,417 | 18,685 |
Financial liabilities [Abstract] | ||
Long-term debt | 27,815 | 27,094 |
Derivatives liabilities at fair value | 2,441 | 2,092 |
Total liabilities at fair value | 30,256 | 29,186 |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Available-for-sale securities | 7 | 8 |
Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,756,673 | 3,312,763 |
Significant Other Observable Inputs (Level 2) [Member] | Consolidated Trusts [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 24,503 | 21,805 |
Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 12,177 | 26,667 |
Long-term debt | 288,414 | 164,144 |
Significant Other Observable Inputs (Level 2) [Member] | Fannie Mae [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,312 | 5,289 |
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 | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for sale | 5,502 | 7,054 |
Mortgage loans held for investment, at fair value | 255,556 | 127,650 |
Advances to lenders | 1 | 2 |
Derivative assets at fair value | 382 | 199 |
Guaranty assets and buy-ups | 258 | 305 |
Total assets at fair value | 262,442 | 136,048 |
Financial liabilities [Abstract] | ||
Derivatives liabilities at fair value | 49 | 37 |
Guaranty obligations | 82 | 97 |
Total liabilities at fair value | 32,593 | 32,362 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Trading securities | 95 | 46 |
Available-for-sale securities | 648 | 792 |
Mortgage loans held for investment, at fair value | 861 | 688 |
Derivative assets at fair value | 382 | 199 |
Total assets at fair value | 1,986 | 1,725 |
Financial liabilities [Abstract] | ||
Long-term debt | 499 | 473 |
Derivatives liabilities at fair value | 49 | 37 |
Total liabilities at fair value | 548 | 510 |
Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | Fair Value, Recurring [Member] | ||
Financial assets [Abstract] | ||
Available-for-sale securities | 235 | 306 |
Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | Fair Value, Recurring [Member] | Discounted cash flow with inputs [Member] | ||
Financial assets [Abstract] | ||
Available-for-sale securities | $ 206 | $ 267 |
Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | Available-for-sale securities [Member] | Other [Member] | Fair Value, Recurring [Member] | Measurement Input, Default Rate [Member] | Discounted cash flow with inputs [Member] | ||
Financial assets [Abstract] | ||
Debt Securities, Available-for-sale, Measurement Input | 425 | 3 |
Significant Unobservable Inputs (Level 3) [Member] | Maximum [Member] | Available-for-sale securities [Member] | Other [Member] | Fair Value, Recurring [Member] | Measurement Input, Default Rate [Member] | Discounted cash flow with inputs [Member] | ||
Financial assets [Abstract] | ||
Debt Securities, Available-for-sale, Measurement Input | 443 | 3 |
Significant Unobservable Inputs (Level 3) [Member] | Weighted Average [Member] | Available-for-sale securities [Member] | Other [Member] | Fair Value, Recurring [Member] | Measurement Input, Default Rate [Member] | Discounted cash flow with inputs [Member] | ||
Financial assets [Abstract] | ||
Debt Securities, Available-for-sale, Measurement Input | 434.2 | 3 |
Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | $ 31,584 | $ 31,827 |
Significant Unobservable Inputs (Level 3) [Member] | Consolidated Trusts [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 83 | 75 |
Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 0 | 0 |
Long-term debt | 878 | 401 |
Significant Unobservable Inputs (Level 3) [Member] | Fannie Mae [Member] | Fair Value, Recurring [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 416 | 398 |
Carrying Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 115,623 | 61,407 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 28,200 | 13,578 |
Trading securities | 136,542 | 48,123 |
Available-for-sale securities | 1,697 | 2,404 |
Mortgage loans held for sale | 5,197 | 6,773 |
Mortgage loans held for investment, at fair value | 3,648,695 | 3,327,389 |
Advances to lenders | 10,449 | 6,453 |
Derivative assets at fair value | 1,225 | 271 |
Guaranty assets and buy-ups | 115 | 142 |
Total assets at fair value | 3,947,743 | 3,466,540 |
Financial liabilities [Abstract] | ||
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Derivatives liabilities at fair value | 1,495 | 435 |
Guaranty obligations | 127 | 154 |
Total liabilities at fair value | 3,937,358 | 3,468,453 |
Carrying Value [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,646,164 | 3,285,139 |
Carrying Value [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 12,173 | 26,662 |
Long-term debt | 277,399 | 155,585 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents and restricted cash | 115,623 | 61,407 |
Federal funds sold and securities purchased under agreements to resell or similar arrangements | 28,200 | 13,578 |
Trading securities | 136,542 | 48,123 |
Available-for-sale securities | 1,697 | 2,404 |
Mortgage loans held for sale | 5,618 | 7,283 |
Mortgage loans held for investment, at fair value | 3,768,228 | 3,398,185 |
Advances to lenders | 10,449 | 6,453 |
Derivative assets at fair value | 1,225 | 271 |
Guaranty assets and buy-ups | 258 | 305 |
Total assets at fair value | 4,067,840 | 3,538,009 |
Financial liabilities [Abstract] | ||
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 478 | |
Derivatives liabilities at fair value | 1,495 | 435 |
Guaranty obligations | 82 | 97 |
Total liabilities at fair value | 4,091,303 | 3,536,812 |
Estimate of Fair Value Measurement [Member] | Consolidated Trusts [Member] | ||
Financial liabilities [Abstract] | ||
Long-term debt | 3,788,257 | 3,344,590 |
Estimate of Fair Value Measurement [Member] | Fannie Mae [Member] | ||
Financial liabilities [Abstract] | ||
Short-term debt | 12,177 | 26,667 |
Long-term debt | $ 289,292 | $ 164,545 |
Fair Value Option (Details)
Fair Value Option (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Mortgage loans held for investment, at fair value | $ 6,490 | $ 6,490 | $ 7,825 | |
Fair value of nonaccrual loans | 139 | 139 | 129 | |
Difference between unpaid principal balance and the fair value of nonaccrual loans | 8 | 8 | 11 | |
Fair value of loans that are 90 days past due | 257 | 257 | 80 | |
Difference between unpaid principal balance and the fair value of these 90 days or more days past due loans | 14 | $ 14 | 10 | |
FNM_SingleFamily | Minimum [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Serious delinquency: days past due | 90 days | |||
Fannie Mae [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Long-term debt, fair value | 3,728 | $ 3,728 | 5,687 | |
Consolidated Trusts [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Long-term debt, fair value | 24,586 | 24,586 | 21,880 | |
Loans [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Mortgage loans held for investment, at fair value | 6,490 | 6,490 | 7,825 | |
Loans, unpaid principal balance | 6,046 | 6,046 | 7,514 | |
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 263 | 357 | $ (128) | |
Long-term debt [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (432) | (765) | $ 688 | |
Long-term debt [Member] | Fannie Mae [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Long-term debt, fair value | 3,728 | 3,728 | 5,687 | |
Long-Term Debt, unpaid principal balance | 3,518 | 3,518 | 5,200 | |
Long-term debt [Member] | Consolidated Trusts [Member] | ||||
Fair Value Inputs, Quantitative Information [Line Items] | ||||
Long-term debt, fair value | 24,586 | 24,586 | 21,880 | |
Long-Term Debt, unpaid principal balance | $ 21,408 | $ 21,408 | $ 19,653 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unconditional Purchase Obligation [Line Items] | |||
Purchase Obligation | $ 189,259 | ||
Rent expenses for operating leases | $ 94 | $ 95 | $ 100 |
Commitments and Contingencies F
Commitments and Contingencies Fiscal Year Maturity Schedule (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unconditional Purchase Obligation [Line Items] | |||
Operating Leases, Rent Expense | $ 94 | $ 95 | $ 100 |
Loans and Mortgage-Related Securities [Abstract] | |||
2020 | 189,259 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Total | 189,259 | ||
Operating Leases [Abstract] | |||
2020 | 55 | ||
2021 | 66 | ||
2022 | 79 | ||
2023 | 81 | ||
2024 | 82 | ||
Thereafter | 876 | ||
Total | 1,239 | ||
Other [Abstract] | |||
2020 | 130 | ||
2021 | 83 | ||
2022 | 85 | ||
2023 | 5 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Total | $ 303 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||||||||||
Trading securities | $ 162 | $ 177 | $ 219 | $ 316 | $ 350 | $ 418 | $ 432 | $ 427 | $ 874 | $ 1,627 | $ 1,336 |
Available-for-sale securities | 22 | 19 | 26 | 31 | 37 | 40 | 45 | 53 | 98 | 175 | 230 |
Mortgage loans interest income | 24,561 | 25,810 | 27,007 | 28,938 | 28,929 | 29,072 | 29,511 | 29,862 | 106,316 | 117,374 | 115,029 |
Interest Income, Federal Funds Sold and Securities Purchased under Agreements to Resell or similar arrangements | 11 | 14 | 14 | 107 | 145 | 178 | 257 | 263 | 146 | 843 | 742 |
Other | 43 | 33 | 25 | 34 | 43 | 47 | 41 | 32 | 135 | 163 | 136 |
Total interest income | 24,799 | 26,053 | 27,291 | 29,426 | 29,504 | 29,755 | 30,286 | 30,637 | 107,569 | 120,182 | 117,473 |
Interest expense: | |||||||||||
Short-term debt interest expense | (7) | (19) | (54) | (102) | (132) | (125) | (119) | (125) | (182) | (501) | (468) |
Long-term debt interest expense | (17,706) | (19,378) | (21,460) | (23,977) | (23,450) | (24,282) | (24,940) | (25,716) | (82,521) | (98,388) | (95,732) |
Total interest expense | (17,713) | (19,397) | (21,514) | (24,079) | (23,582) | (24,407) | (25,059) | (25,841) | (82,703) | (98,889) | (96,200) |
Net interest income | 7,086 | 6,656 | 5,777 | 5,347 | 5,922 | 5,348 | 5,227 | 4,796 | 24,866 | 21,293 | 21,273 |
Benefit (provision) for credit losses | 1,416 | 501 | (12) | (2,583) | 279 | 1,857 | 1,225 | 650 | (678) | 4,011 | 3,309 |
Net interest income after benefit (provision) for credit losses | 8,502 | 7,157 | 5,765 | 2,764 | 6,201 | 7,205 | 6,452 | 5,446 | 24,188 | 25,304 | 24,582 |
Investment gains (losses), net | 263 | 653 | 149 | (158) | 923 | 253 | 461 | 133 | 907 | 1,770 | 952 |
Fair value gains (losses), net | (880) | (327) | (1,018) | (276) | 84 | (713) | (754) | (831) | (2,501) | (2,214) | 1,121 |
Fee and other income | 159 | 93 | 90 | 120 | 131 | 188 | 113 | 134 | 462 | 566 | 555 |
Non-interest income (loss) | (458) | 419 | (779) | (314) | 1,138 | (272) | (180) | (564) | (1,132) | 122 | 2,628 |
Salaries and employee benefits | (393) | (386) | (382) | (393) | (363) | (361) | (376) | (386) | (1,554) | (1,486) | (1,451) |
Professional services | (248) | (230) | (231) | (212) | (268) | (241) | (233) | (225) | (921) | (967) | (1,032) |
Other administrative expenses | (162) | (146) | (141) | (144) | (155) | (147) | (135) | (133) | (593) | (570) | (576) |
Total administrative expenses | (803) | (762) | (754) | (749) | (786) | (749) | (744) | (744) | (3,068) | (3,023) | (3,059) |
Foreclosed property expense | (16) | (71) | (10) | (80) | (177) | (515) | (617) | ||||
Foreclosed property expense | (151) | (96) | (128) | (140) | (177) | (515) | (617) | ||||
Temporary Payroll Cut Continuation Act of 2011 (TCCA) fees | (697) | (679) | (660) | (637) | (626) | (613) | (600) | (593) | (2,673) | (2,432) | (2,284) |
Credit Enhancement Expense | (300) | (325) | (360) | (376) | (352) | (290) | (276) | (216) | (1,361) | (1,134) | (679) |
Change in expected credit enhancement recoveries | (180) | (48) | 273 | 188 | 233 | 0 | 0 | ||||
Other expenses, net | (339) | (313) | (261) | (218) | (194) | (186) | (203) | (162) | (1,131) | (745) | (472) |
Total expenses | (2,335) | (2,198) | (1,772) | (1,872) | (2,109) | (1,934) | (1,951) | (1,855) | (8,177) | (7,849) | (7,111) |
Income before federal income taxes | 5,709 | 5,378 | 3,214 | 578 | 5,230 | 4,999 | 4,321 | 3,027 | 14,879 | 17,577 | 20,099 |
Provision for federal income taxes | (1,139) | (1,149) | (669) | (117) | (865) | (1,036) | (889) | (627) | (3,074) | (3,417) | (4,140) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,570 | 4,229 | 2,545 | 461 | 4,365 | 3,963 | 3,432 | 2,400 | 11,805 | 14,160 | 15,959 |
Dividends distributed or available for distribution to senior preferred stockholder | (4,566) | (4,216) | (2,532) | (476) | (4,266) | (3,977) | (3,365) | (2,361) | (11,790) | (13,969) | (12,613) |
Net income attributable to common stockholders | $ 4 | $ 13 | $ 13 | $ (15) | $ 99 | $ (14) | $ 67 | $ 39 | $ 15 | $ 191 | $ 3,346 |
Earnings (loss) per share: Basic | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0 | $ 0.01 | $ 0.01 | $ 0 | $ 0.03 | $ 0.58 |
Earnings (loss) per share: Diluted | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0 | $ 0.01 | $ 0.01 | $ 0 | $ 0.03 | $ 0.57 |
Weighted-average common shares outstanding: Basic | 5,867 | 5,867 | 5,867 | 5,867 | 5,762 | 5,762 | 5,762 | 5,762 | 5,867 | 5,762 | 5,762 |
Weighted-average common shares outstanding: Diluted | 5,893 | 5,893 | 5,893 | 5,867 | 5,893 | 5,762 | 5,893 | 5,893 | 5,893 | 5,893 | 5,893 |
Uncategorized Items - fnm-20201
Label | Element | Value |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansPlanAmendmentsTaxEffect | $ 3,000,000 |