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Available-for-sale, at fair value (includes $935 and $1,191, respectively, related to consolidated trusts)

40,695

74,198

63,181

77,582

Total investments in securities

103,876

151,780

Mortgage loans:

Loans held for sale, at lower of cost or fair value (includes $72 and $66, respectively, related to consolidated trusts)

464

311

Loans held for investment, at amortized cost (includes $10,800 and $3,611, respectively, at fair value and loans pledged as collateral that may be sold or repledged of $943 and $798, respectively, related to consolidated trusts)

3,007,737

2,970,466

Total loans held for investment, net of allowance

(58,795)

(72,156)

2,948,942

2,898,310

Total mortgage loans

2,949,406

2,898,621

Accrued interest receivable, net (includes $7,567 and $8,466, respectively, related to consolidated trusts)

9,176

10,000

Acquired property, net

^[1]

10,489

11,373

Other assets (includes cash pledged as collateral of $1,222 and $1,109, respectively)

27,939

25,374

Total assets

3,222,422

3,211,484

Liabilities:

Accrued interest payable (includes $8,645 and $9,302, respectively, related to consolidated trusts)

11,303

12,648

Other liabilities (includes $1,059 and $629, respectively, related to consolidated trusts)

14,378

13,535

Total liabilities

3,215,198

3,216,055

Commitments and contingencies (Note 18)

Fannie Mae stockholders’ equity (deficit):

Senior preferred stock, 1,000,000 shares issued and outstanding

117,149

112,578

Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding

19,130

Common stock, no par value, no maximum authorization—1,308,762,703 shares issued, 1,158,077,970 and 1,157,767,400 shares outstanding, respectively

687

Accumulated deficit

(122,766)

(128,381)

Accumulated other comprehensive income (loss)

384

(1,235)

Treasury stock, at cost, 150,684,733 and 150,995,303 shares, respectively

(7,401)

(7,403)

Total Fannie Mae stockholders’ equity (deficit)

7,183

(4,624)

Noncontrolling interest

Total equity (deficit)

7,224

(4,571)

Total liabilities and equity (deficit)

3,222,422

3,211,484

Mortgage loans:

355,544

380,134

Debt (includes $793 and $838, respectively, of debt of Fannie Mae and $11,647 and $3,939, respectively, of debt of consolidated trusts, at fair value)

(50,519)

(57,309)

Total mortgage loans

305,417

323,070

Liabilities:

615,864

732,444

Restricted cash (includes $61,976 and $45,900, respectively, related to consolidated trusts)

ASSETS

61,976

45,900

Investments in securities:

Available-for-sale, at fair value (includes $935 and $1,191, respectively, related to consolidated trusts)

935

1,191

Mortgage loans:

Loans held for sale, at lower of cost or fair value (includes $72 and $66, respectively, related to consolidated trusts)

2,652,193

2,590,332

Accrued interest receivable, net (includes $7,567 and $8,466, respectively, related to consolidated trusts)

(8,276)

(14,847)

Total mortgage loans

2,643,989

2,575,551

7,567

8,466

Liabilities:

Accrued interest payable (includes $8,645 and $9,302, respectively, related to consolidated trusts)

8,645

9,302

Debt (includes $793 and $838, respectively, of debt of Fannie Mae and $11,647 and $3,939, respectively, of debt of consolidated trusts, at fair value)

2,573,653

2,457,428

Other liabilities (includes $1,059 and $629, respectively, related to consolidated trusts)

$ 1,059

$ 629

[1]	Includes valuation allowance of $669 million, $1.0 billion and $1.9 billion for the years ended December 31, 2012, 2011 and 2010, respectively.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
ASSETS
Restricted cash	$ 67,919	$ 50,797
Investments in securities:
Available-for-sale, at fair value	63,181	77,582
Mortgage loans:
Loans held for sale, at lower of cost or fair value	464	311
Accrued interest receivable, net	9,176	10,000
Cash pledged as collateral included in other assets	1,222	1,109
Liabilities:
Accrued interest payable	11,303	12,648
Other liabilities	$ 14,378	$ 13,535
Fannie Mae stockholders’ equity (deficit):
Senior preferred stock issued, shares	1,000,000	1,000,000
Senior preferred stock outstanding, shares	1,000,000	1,000,000
Preferred stock authorized	700,000,000	700,000,000
Preferred stock issued	555,374,922	555,374,922
Preferred stock outstanding	555,374,922	555,374,922
Common stock issued	1,308,762,703	1,308,762,703
Common stock outstanding	1,158,077,970	1,157,767,400
Treasury stock, shares	150,684,733	150,995,303
Fannie Mae [Member]
Liabilities:
Debt at fair value	$ 793	$ 838
Consolidated Trusts [Member]
ASSETS
Restricted cash	61,976	45,900
Investments in securities:
Available-for-sale, at fair value	935	1,191
Mortgage loans:
Loans held for sale, at lower of cost or fair value	72	66
Loans at fair value included in loans held for investment, at amortized cost	10,800	3,611
Loans pledged as collateral that may be sold or repledged included in loans held for investment, at amortized cost	943	798
Accrued interest receivable, net	7,567	8,466
Liabilities:
Accrued interest payable	8,645	9,302
Debt at fair value	11,647	3,939
Other liabilities	$ 1,059	$ 629

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Interest income:

Trading securities

$ 989

$ 1,087

$ 1,251

Available-for-sale securities

3,299

3,277

5,290

Mortgage loans (includes $110,451, $123,633, and $132,591, respectively, related to consolidated trusts)

124,706

138,462

147,583

196

117

146

Total interest income

129,190

142,943

154,270

Interest expense:

Long-term debt (includes $95,612, $108,641, and $118,373, respectively, related to consolidated trusts)

152

310

631

107,537

123,352

137,230

Total interest expense

107,689

123,662

137,861

Net interest income

21,501

19,281

16,409

Benefit (provision) for credit losses

852

(26,718)

(24,896)

Net interest income (loss) after benefit (provision) for credit losses

22,353

(7,437)

(8,487)

Investment gains, net

487

506

346

Other-than-temporary impairments

(311)

(614)

(694)

Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)

(402)

306

(28)

Debt extinguishment losses, net

(713)

(308)

(722)

^[1]

Fair value losses, net

(2,977)

(6,621)

(511)

(244)

(232)

(568)

Fee and other income

1,487

1,163

1,084

Non-interest loss

(1,960)

(5,492)

(371)

Administrative expenses:

Salaries and employee benefits

1,195

1,236

1,277

Professional services

766

736

942

Occupancy expenses

188

179

170

Other administrative expenses

218

219

208

Total administrative expenses

2,367

2,370

2,597

Foreclosed property (income) expense

(254)

780

1,718

Other expenses

1,060

866

927

Total expenses

3,173

4,016

5,242

Income (loss) before federal income taxes

17,220

(16,945)

(14,100)

Benefit for federal income taxes

Net income (loss)

17,220

(16,855)

(14,018)

Other comprehensive income (loss):

Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes

1,735

622

3,504

Total other comprehensive income

(116)

(175)

(60)

1,619

447

3,444

Total comprehensive income (loss)

18,839

(16,408)

(10,574)

Less: Comprehensive loss attributable to noncontrolling interest

Total comprehensive income (loss) attributable to Fannie Mae

18,843

(16,408)

(10,570)

Less: Net loss attributable to noncontrolling interest

Net income (loss) attributable to Fannie Mae

17,224

(16,855)

(14,014)

Preferred stock dividends

(11,603)

(9,614)

(7,704)

Undistributed earnings available for distribution to senior preferred stockholders

(4,224)

Net income (loss) attributable to common stockholders (Note 11)

$ 1,397

$ (26,469)

$ (21,718)

Earnings (loss) per share:

Basic

$ 0.24

$ (4.61)

$ (3.81)

Diluted

$ 0.24

$ (4.61)

$ (3.81)

Weighted-average common shares outstanding:

Basic

^[2]

5,762

5,737

5,694

Diluted

^[2]

5,893

5,737

5,694

[1]	Certain prior period amounts have been reclassified to conform to the current period presentation.
[2]	Includes 4.7 billion for the year ended December 31, 2012, and 4.6 billion for both the years ended December 31, 2011 and 2010 of weighted-average shares of common stock, that would be issued upon the full exercise of the warrant issued to Treasury from the date the warrant was issued through December 31, 2012, 2011 and 2010, respectively.

Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Mortgage loans	$ 124,706	$ 138,462	$ 147,583
Long-term debt	107,537	123,352	137,230
Consolidated Trusts [Member]
Mortgage loans	110,451	123,633	132,591
Long-term debt	$ 95,612	$ 108,641	$ 118,373

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows provided by (used in) operating activities:
Net income (loss)	$ 17,220	$ (16,855)	$ (14,018)
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:
Amortization of cost basis adjustments	(2,335)	(369)	126
(Benefit) provision for credit losses	(852)	26,718	24,896
Valuation (gains) losses	(1,345)	(408)	(1,289)
(Gains) losses from partnership investments	(119)	(82)	74
Current and deferred federal income taxes	10	1,044	258
Purchases of loans held for sale	(603)	(737)	(81)
Proceeds from repayments and sales of loans held for sale	177	68	88
Net change in trading securities, excluding non-cash transfers	31,972	(17,048)	(23,612)
Payments for foreclosed property expenses	(5,722)	(5,394)	(5,658)
Other, net	(1,402)	(2,175)	(8,179)
Net cash provided by (used in) operating activities	37,001	(15,238)	(27,395)
Cash flows provided by investing activities:
Purchases of trading securities held for investment	(3,216)	(2,951)	(8,547)
Proceeds from maturities and paydowns of trading securities held for investment	3,508	2,591	2,638
Proceeds from sales of trading securities held for investment	3,861	1,526	21,556
Purchases of available-for-sale securities	(34)	(192)	(413)
Proceeds from maturities and paydowns of available-for-sale securities	12,636	13,552	17,102
Proceeds from sales of available-for-sale securities	1,306	3,192	7,867
Purchases of loans held for investment	(210,488)	(78,099)	(86,724)
Net change in restricted cash	(17,122)	12,881	(15,025)
Advances to lenders	(144,064)	(70,914)	(74,130)
Proceeds from disposition of acquired property and preforeclosure sales	38,685	47,248	39,682
Net change in federal funds sold and securities purchased under agreements to resell or similar agreements	13,500	(34,249)	41,471
Other, net	468	468	(753)
Net cash provided by investing activities	527,693	464,388	540,179
Cash flows used in financing activities:
Payments of cash dividends on senior preferred stock to Treasury	(11,608)	(9,613)	(7,706)
Proceeds from senior preferred stock purchase agreement with Treasury	4,571	23,978	27,700
Other, net	(9)	146	4
Net cash used in financing activities	(561,116)	(448,908)	(502,299)
Net increase (decrease) in cash and cash equivalents	3,578	242	10,485
Cash and cash equivalents at beginning of period	17,539	17,297	6,812
Cash and cash equivalents at end of period	21,117	17,539	17,297
Cash paid during the period for:
Interest	119,259	128,806	140,651
Non-cash activities:
Net mortgage loans acquired by assuming debt	537,862	448,437	484,699
Net transfers from (to) mortgage loans of Fannie Mae to (from) mortgage loans of consolidated trusts	165,272	33,859	(121,852)
Transfers from advances to lenders to loans held for investment of consolidated trusts	133,554	69,223	68,385
Net transfers from mortgage loans to acquired property	46,981	56,517	66,081
Fannie Mae [Member]
Cash flows provided by investing activities:
Proceeds from repayments of loans held for investment	31,322	25,190	20,715
Cash flows used in financing activities:
Proceeds from the issuance of debt	736,065	766,598	1,155,993
Payments to redeem debt	(854,111)	(815,838)	(1,146,363)
Consolidated Trusts [Member]
Cash flows provided by investing activities:
Proceeds from repayments of loans held for investment	797,331	544,145	574,740
Cash flows used in financing activities:
Proceeds from the issuance of debt	396,513	233,516	276,575
Payments to redeem debt	$ (832,537)	$ (647,695)	$ (808,502)

Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Millions	Total	Senior Preferred Stock	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Noncontrolling Interest
Balance at Dec. 31, 2009	$ (11,983)	$ 60,900	$ 20,348	$ 664	$ 2,083	$ (83,531)	$ (5,126)	$ (7,398)	$ 77
Balance (shares) at Dec. 31, 2009		1,000,000	579,735,457	1,113,358,051
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in investment in noncontrolling interest	9								9
Comprehensive income (loss):
Net income (loss)	(14,018)					(14,014)			(4)
Other comprehensive income, net of tax effect:
Changes in net unrealized losses on available-for-sale securities (net of tax of $702, $250, and $1,644, respectively)	3,054						3,054
Reclassification adjustment for other-than-temporary impairments recognized in net income (loss) (net of tax of $250, $99, and $253 , respectively)	469						469
Reclassification adjustment for (gains) losses included in net income (loss) (net of tax of $9, $28, and $10, respectively)	(19)						(19)
Unrealized gains (losses) on guaranty assets and guaranty fee buy-ups	1						1
Prior service cost and actuarial gains, net of amortization for defined benefit plans	(61)						(61)
Total comprehensive income (loss)	(10,574)
Senior preferred stock dividends	(7,706)				(2,265)	(5,441)
Increase to senior preferred liquidation preference	27,700	$ 27,700
Conversion of convertible preferred stock into common stock (shares)			(2,867,318)	4,417,947
Conversion of convertible preferred stock into common stock	0		$ (144)	$ 3	141
Other	37				41			(4)
Other (shares)			0	728,196
Balance at Dec. 31, 2010	(2,517)	$ 88,600	$ 20,204	$ 667	0	(102,986)	(1,682)	(7,402)	82
Balance (shares) at Dec. 31, 2010		1,000,000	576,868,139	1,118,504,194
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in investment in noncontrolling interest	(29)								(29)
Comprehensive income (loss):
Net income (loss)	(16,855)					(16,855)			0
Other comprehensive income, net of tax effect:
Changes in net unrealized losses on available-for-sale securities (net of tax of $702, $250, and $1,644, respectively)	465						465
Reclassification adjustment for other-than-temporary impairments recognized in net income (loss) (net of tax of $250, $99, and $253 , respectively)	209						209
Reclassification adjustment for (gains) losses included in net income (loss) (net of tax of $9, $28, and $10, respectively)	(52)						(52)
Prior service cost and actuarial gains, net of amortization for defined benefit plans	(175)						(175)
Total comprehensive income (loss)	(16,408)
Senior preferred stock dividends	(9,613)				(1,072)	(8,541)
Increase to senior preferred liquidation preference	23,978	$ 23,978
Conversion of convertible preferred stock into common stock (shares)			(21,493,217)	38,669,995
Conversion of convertible preferred stock into common stock	0		$ (1,074)	$ 20	1,054
Other	18				18	1		(1)
Other (shares)			0
Balance at Dec. 31, 2011	(4,571)	$ 112,578	$ 19,130	$ 687	0	(128,381)	(1,235)	(7,403)	53
Balance (shares) at Dec. 31, 2011		1,000,000	555,374,922	1,157,767,400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in investment in noncontrolling interest	(8)								(8)
Comprehensive income (loss):
Net income (loss)	17,220					17,224			(4)
Other comprehensive income, net of tax effect:
Changes in net unrealized losses on available-for-sale securities (net of tax of $702, $250, and $1,644, respectively)	1,289						1,289
Reclassification adjustment for other-than-temporary impairments recognized in net income (loss) (net of tax of $250, $99, and $253 , respectively)	463						463
Reclassification adjustment for (gains) losses included in net income (loss) (net of tax of $9, $28, and $10, respectively)	(17)						(17)
Prior service cost and actuarial gains, net of amortization for defined benefit plans	(116)						(116)
Total comprehensive income (loss)	18,839
Senior preferred stock dividends	(11,608)				1	(11,609)
Increase to senior preferred liquidation preference	4,571	$ 4,571
Other	1				(1)	0		2
Other (shares)			0	0
Balance at Dec. 31, 2012	$ 7,224	$ 117,149	$ 19,130	$ 687	$ 0	$ (122,766)	$ 384	$ (7,401)	$ 41
Balance (shares) at Dec. 31, 2012		1,000,000	555,374,922	1,157,767,400

Consolidated Statements of Changes in Equity (Deficit) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Statement of Stockholders' Equity [Abstract]
Tax on unrealized losses on available-for-sale securities	$ 702	$ 250	$ 1,644
Tax on reclassification adjustment for other-than-temporary impairments recognized in net income (loss)	250	99	253
Tax on reclassification adjustment for (gains) losses included in net income (loss)	$ 9	$ 28	$ 10

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Organization

We are a stockholder-owned corporation organized and existing under the Federal National Mortgage Association Charter Act (the “Charter Act” or our “charter”). We are a government-sponsored enterprise (“GSE”), and we are subject to government oversight and regulation. Our regulators include the Federal Housing Finance Agency (“FHFA”), the U.S. Department of Housing and Urban Development (“HUD”), the U.S. Securities and Exchange Commission (“SEC”), and the U.S. Department of the Treasury (“Treasury”). The U.S. government does not guarantee our securities or other obligations.

We operate in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities, including mortgage-related securities guaranteed by us, from primary mortgage market institutions, such as commercial banks, savings and loan associations, mortgage banking companies, securities dealers and other investors. We do not lend money directly to consumers in the primary mortgage market. We provide additional liquidity in the secondary mortgage market by issuing guaranteed mortgage-related securities.

We operate under three business segments: Single-Family Credit Guaranty (“Single-Family”), Multifamily and Capital Markets. Our Single-Family segment generates revenue primarily from the guaranty fees on the mortgage loans underlying guaranteed single-family Fannie Mae mortgage-backed securities (“Fannie Mae MBS”). Our Multifamily segment generates revenue from a variety of sources, including guaranty fees on the mortgage loans underlying multifamily Fannie Mae MBS, transaction fees associated with the multifamily business and bond credit enhancement fees. Our Capital Markets segment invests in mortgage loans, mortgage-related securities and other investments, and generates income primarily from the difference, or spread, between the yield on the mortgage assets we own and the interest we pay on the debt we issue in the global capital markets to fund the purchases of these mortgage assets.

Conservatorship

On September 7, 2008, the Secretary of the Treasury and the Director of FHFA announced several actions taken by Treasury and FHFA regarding Fannie Mae, which included: (1) placing us in conservatorship and (2) the execution of a senior preferred stock purchase agreement by our conservator, on our behalf, and Treasury, pursuant to which we issued to Treasury both senior preferred stock and a warrant to purchase common stock.

Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended 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 has since delegated specified authorities to our Board of Directors and has delegated to management the authority to conduct our day-to-day operations. The conservator retains the authority to withdraw its delegations at any time.

We were directed by FHFA to voluntarily delist our common stock and each listed series of our preferred stock from the New York Stock Exchange and the Chicago Stock Exchange. The last trading day for the listed securities on the New York Stock Exchange and the Chicago Stock Exchange was July 7, 2010, and since July 8, 2010, the securities have been traded on the over-the-counter market.

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. The GSE Act, however, provides that 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. As of April 2, 2013, FHFA has not exercised this power.

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. FHFA issued a rule establishing a framework for conservatorship and receivership operations for the GSEs, which became effective in 2011. The rule established procedures for conservatorship and receivership, and priorities of claims for contract parties and other claimants. This rule is part of FHFA’s implementation of the powers provided by the Federal Housing Finance Regulatory Reform Act of 2008, and does not seek to anticipate or predict future conservatorships or receiverships.

The conservatorship has no specified termination date and there continues to be uncertainty regarding the future of our company, including how long the company will continue to exist in its current form, the extent of our role in the market, 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. Under the GSE Act, FHFA must place us into receivership if the Director of FHFA makes a written determination that our assets are less than our obligations or if we have not been paying our debts, in either case, for a period of 60 days. In addition, the Director of FHFA may place us in receivership at his discretion at any time for other reasons, including conditions that FHFA has already asserted existed at the time the former Director of FHFA placed us into conservatorship. Placement into receivership would have a material adverse effect on holders of our common stock, preferred stock, debt securities and Fannie Mae MBS. Should we be placed into receivership, different assumptions would be required to determine the carrying value of our assets, which could lead to substantially different financial results. We are not aware of any plans of FHFA to significantly change our business model or capital structure in the near term.

Senior Preferred Stock and Warrant Issued to Treasury

Senior Preferred Stock

On September 7, 2008, we, through FHFA in its capacity as conservator, entered into a senior preferred stock purchase agreement with Treasury. This agreement was amended on September 26, 2008, May 6, 2009, December 24, 2009 and August 17, 2012.

Pursuant to the senior preferred stock purchase agreement, Treasury has committed to provide us with funding as described below to help us maintain a positive net worth thereby avoiding the mandatory receivership trigger described above. As consideration for Treasury’s funding commitment, we issued one million shares of senior preferred stock and a warrant to purchase shares of our common stock to Treasury.

In 2009, the maximum amount of Treasury’s funding commitment to us under the senior preferred stock purchase agreement was increased pursuant to an amendment to the agreement. The amendment provided that the $200 billion maximum amount of the commitment from Treasury would increase as necessary to accommodate any net worth deficiencies attributable to periods during 2010, 2011 and 2012. The amendment further provided that to the extent we had a positive net worth as of December 31, 2012, the maximum amount of funding available to us after 2012 would depend on the size of that positive net worth relative to our cumulative draws for net worth deficiencies attributable to periods during 2010, 2011 and 2012, as follows:


•	If our positive net worth as of December 31, 2012 was less than the cumulative draws for net worth deficiencies attributable to periods during 2010, 2011 and 2012, then the amount of available funding would have been $124.8 billion less our positive net worth as of December 31, 2012.


•	If our positive net worth as of December 31, 2012 was greater than the cumulative draws for net worth deficiencies attributable to periods during 2010, 2011 and 2012, then the amount of available funding would have been $124.8 billion less the cumulative draws attributable to periods during 2010, 2011 and 2012.

Because our $7.2 billion positive net worth as of December 31, 2012 was less than our $40.9 billion in cumulative draws attributable to periods during 2010, 2011 and 2012, the amount of remaining available funding under the senior preferred stock purchase agreement is $117.6 billion.

The aggregate liquidation preference of the senior preferred stock was $117.1 billion as of December 31, 2012. This number represents the $116.1 billion we have drawn from Treasury pursuant to the senior preferred stock purchase agreement as of December 31, 2012 and the $1.0 billion initial aggregate liquidation preference of the senior preferred stock.

We were scheduled to begin paying a quarterly commitment fee to Treasury under the senior preferred stock purchase agreement beginning on March 31, 2011; however, Treasury waived the quarterly commitment fee for each quarter of 2012 and 2011.

In August 2012, we, through FHFA acting on our behalf in its capacity as conservator, entered into an amendment to the senior preferred stock purchase agreement with Treasury. The revisions to the senior preferred stock purchase agreement in the amendment included, among other things, the following:

•

Dividends. The method for calculating the amount of dividends we are required to pay Treasury on the senior preferred stock changed as of January 1, 2013. The method for calculating the amount of dividends payable on the senior preferred stock in effect prior to this amendment, which remained in effect through December 31, 2012, was to apply an annual dividend rate of 10% to the aggregate liquidation preference of the senior preferred stock. Effective January 1, 2013, when, as and if declared by our Board of Directors, the amount of dividends payable on the senior preferred stock for a dividend period will be determined based on our net worth as of the end of the immediately preceding fiscal quarter. For each dividend period from January 1, 2013 through and including December 31, 2017, the dividend amount will be 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. If our net worth does not exceed the applicable capital reserve amount as of the end of a fiscal quarter, then no dividend amount will accrue or be payable for the applicable dividend period. The applicable capital reserve amount will be $3.0 billion for 2013 and will be reduced by $600 million each year until it reaches zero on January 1, 2018. For each dividend period thereafter, the dividend amount will be the entire amount of our net worth, if any, as of the end of the immediately preceding fiscal quarter.


•	Periodic Commitment Fee. Effective January 1, 2013, the periodic commitment fee provided for under the agreement is suspended, as long as the dividend payment provisions described above remain in effect.

This amendment to the senior preferred stock purchase agreement was not accounted for as an extinguishment of the existing senior preferred stock purchase agreement. As a result, we did not recognize a gain or loss upon modification of the senior preferred stock purchase agreement. Consistent with our accounting policy, dividends on the modified senior preferred stock will continue to be accrued upon declaration, which occurs each quarter when FHFA directs us to pay the quarterly dividend to Treasury.

Warrant Issued to Treasury

On September 7, 2008, we issued a warrant to Treasury giving it the right 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 Treasury exercises the warrant. Treasury has the right to exercise the warrant, 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 loss per share. The weighted-average shares of common stock outstanding for 2012, 2011 and 2010, 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 prevent 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 our delegation of authority from FHFA.

We fund our business primarily through the issuance of short-term and long-term debt securities in the domestic and international capital markets. Because debt issuance is our primary funding source, 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 us and the financial markets.

We believe that continued federal government support of our business and the financial markets, as well as our status as a GSE, are essential to maintaining our access to debt funding. Changes or perceived changes in federal government support of our business and the financial markets or our status as a GSE could materially and adversely affect our liquidity, financial condition and results of operations. In addition, due to our reliance on the U.S. government’s support, our access to debt funding or the cost of debt funding also could be materially adversely affected by a change or perceived change in the creditworthiness of the U.S. government. A downgrade in our credit ratings could reduce demand for our debt securities and increase our borrowing costs. Standard & Poor’s Ratings Services’ (“S&P”) downgrade of our credit rating on August 8, 2011, which was a result of a similar action on the U.S. government’s sovereign credit rating, has not adversely affected our access to debt funding or the cost of our debt funding. Future changes or disruptions in the financial markets could significantly change the amount, mix and cost of funds we obtain, which also could increase our liquidity and roll-over risk and have a material adverse impact on our liquidity, financial condition and results of operations.

In 2011, Treasury and HUD released a report to Congress on reforming America’s housing finance market. The report provides that the Obama Administration will work with FHFA to determine the best way to responsibly reduce Fannie Mae’s and Freddie Mac’s role in the market and ultimately wind down both institutions. The report emphasizes the importance of proceeding with a careful transition plan and providing the necessary financial support to Fannie Mae and Freddie Mac during the transition period. In 2012, Treasury Secretary Geithner stated that the Administration intended to release new details around approaches to housing finance reform, including a transition plan for Fannie Mae and Freddie Mac, and to work with congressional leaders to explore options for legislation. As of April 2, 2013, no further details have been released.

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”). The accompanying consolidated financial statements include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated.

Related Parties

As a result of our issuance to Treasury of the 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, 2012, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $117.1 billion. Our administrative expenses were reduced by $96 million, $106 million and $167 million for the years ended December 31, 2012, 2011 and 2010, 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.

During 2011, we received a refund of $1.1 billion from the Internal Revenue Service (“IRS”) related to the carryback of our 2009 operating loss to the 2008 and 2007 tax years. In addition, we effectively settled our 2007 and 2008 tax years with the IRS and as a result, we recognized an income tax benefit of $90 million in our consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2011.

In 2009, we entered into a memorandum of understanding with Treasury, FHFA and Freddie Mac pursuant to which we agreed to provide assistance to state and local housing finance agencies (“HFAs”) through two primary programs: a temporary credit and liquidity facilities (“TCLF”) program and a new issue bond (“NIB”) program. Pursuant to the TCLF program, Treasury has purchased participation interests in temporary credit and liquidity facilities provided by us and Freddie Mac to the HFAs, which facilities create a credit and liquidity backstop for the HFAs. Pursuant to the NIB program, Treasury has purchased new securities issued and guaranteed by us and Freddie Mac, which are backed by new housing bonds issued by the HFAs.

Under the TCLF program, we had $1.6 billion and $3.0 billion outstanding, which includes principal and interest, of standby credit and liquidity support as of December 31, 2012 and 2011, respectively. Under the NIB program, we had $6.1 billion and $7.5 billion outstanding of pass-through securities backed by single-family and multifamily housing bonds issued by HFAs as of December 31, 2012 and 2011, respectively. Treasury will bear the initial losses of principal under the TCLF program and the NIB program up to 35% of the total original principal on a combined program-wide basis, and thereafter we will bear the losses of principal that are attributable to the TCLF and the securities we have issued. Treasury will bear all losses of unpaid interest under the two programs. As of December 31, 2012, there had been no losses of principal or interest under the TCLF program or the NIB program.

In December 2011, Congress enacted the Temporary Payroll Tax Cut Continuation Act (“TCCA”) of 2011 which, among other provisions, requires that we increase our single-family guaranty fees by at least 10 basis points and remit this increase to Treasury. Effective April 1, 2012, the guaranty fee on all single-family residential mortgages delivered to Fannie Mae on or after that date for securitization was increased by 10 basis points. FHFA and Treasury have advised us to remit this fee increase to Treasury with respect to all loans acquired by us on or after April 1, 2012 and before January 1, 2022, and to continue to remit these amounts to Treasury on and after January 1, 2022 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated.

The resulting fee revenue and expense are recorded in “Mortgage loans interest income” and “Other expenses,” respectively, in our consolidated statements of operations and comprehensive income (loss). We recognized $238 million as other expenses for the year ended December 31, 2012 relating to TCCA guaranty fees, consisting of $104 million in TCCA-related guaranty fees we have remitted to Treasury for our obligations through September 30, 2012 and $134 million in TCCA-related guaranty fees for the three months ended December 31, 2012 that had not been remitted to Treasury.

FHFA’s control of both us and Freddie Mac has caused us and Freddie Mac to be related parties. No transactions outside of normal business activities have occurred between us and Freddie Mac. As of December 31, 2012 and 2011, we held Freddie Mac mortgage-related securities with a fair value of $12.2 billion and $15.6 billion, respectively, and accrued interest receivable of $51 million and $69 million, respectively. We recognized interest income on these securities held by us of $551 million, $700 million and $1.1 billion for the years ended December 31, 2012, 2011 and 2010, respectively. In addition, Freddie Mac may be an investor in variable interest entities that we have consolidated, and we may be an investor in variable interest entities that Freddie Mac has consolidated.

In 2010, we entered into an agreement with certain wholly-owned subsidiaries of Ally Financial, Inc. (“Ally”). Under the agreement, we received $462 million in exchange for our release of specified Ally affiliates from potential liability relating to certain private-label securities sponsored by the affiliates and for certain selling representation and warranty liability related to mortgage loans sold and/or serviced by one of Ally’s subsidiaries as of or prior to June 30, 2010.

On January 31, 2013, we reached an agreement with GMAC Mortgage LLC (a subsidiary of Ally) pursuant to which we received $265 million in exchange for our release of potential liability primarily related to representation and warranty liabilities due to title defects, mortgage insurance coverage claims and compensatory fees. As a result of this settlement, we recorded $173 million as a benefit to “Benefit (provision) for credit losses,” in our consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2012. Treasury has majority ownership of Ally.

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, valuation of certain financial instruments and other assets and liabilities, recoverability of our deferred tax assets, allowance for loan losses and reserve for guaranty losses, and other-than-temporary impairment of investment securities. Actual results could be different from these estimates.

As of December 31, 2012, we have concluded that it is more likely than not that our deferred tax assets will not be realized in their entirety and that therefore, we should retain the valuation allowance against our net deferred tax assets. Giving more weight to evidence that could be objectively verified than to evidence that could not be objectively verified, we determined that the factors in favor of releasing the allowance were outweighed by the evidence against releasing the valuation allowance. See “Note 10, Income Taxes,” for additional information regarding the factors that led to our conclusion to retain the valuation allowance against our deferred tax assets.

We continually monitor delinquency and default trends and periodically make changes in our historically developed assumptions to better reflect present conditions.

In the three months ended September 30, 2012, we enhanced our collective single-family loss reserve model and our model that calculates loss reserves for individually impaired loans. The combined impact from these changes resulted in an approximately $3.5 billion increase to our allowance for loan losses and provision for credit losses. The components of the enhancement to our loan loss models are as follows:

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We enhanced our loan loss models for loans in our collective single-family loss reserve to reflect more recent experience of default expectations. The impact of this change had the most pronounced effect on loans with higher mark-to-market LTV ratios, where we have observed better than anticipated payment performance in recent periods. Historically, we had limited information on the performance of loans with higher mark-to-market LTV ratios. However, we have recently observed that loans with higher mark-to-market LTV ratios have performed better than the prior models estimated since the prior models had limited observations. As a result of incorporating these recent observations, our loss expectations have improved for these loans. The change resulted in an approximately $1.5 billion decrease to our allowance for loan losses and provision for credit losses.

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We enhanced our single-family loan loss models for individually impaired loans based on current observable trends of payment behavior on our modified loans to reflect slower prepayment and default expectations for these loans, which significantly extended the expected average life of our modified loans. Since a loan modification changes the contractual terms of a loan such that a concession is granted to the borrower, an extension of the average life of a modified loan increases the charge we record related to the concession. Therefore, while our expectations of credit loss decreased due to better performance of our modified loans, this decrease was more than offset by an increase in the present value of the concession granted to the borrower by the modification. The change resulted in an approximately $5.0 billion increase to our allowance for loan losses and provision for credit losses.

In the three months ended June 30, 2012, we updated our assumptions used to project cash flow estimates on our Alt-A and subprime private-label securities to incorporate recent observable market trends, which included extending the time it takes to liquidate loans underlying these securities and increasing severity rates for loans where the servicer stopped advancing payments. These updates resulted in lower net present value of cash flow projections on our Alt-A and subprime private-label securities and increased our other-than-temporary impairment expense by approximately $500 million.

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 entities through arrangements that do not involve voting interests, such as a variable interest entity (“VIE”).

VIE Assessment

In 2009, the Financial Accounting Standards Board (“FASB”) concurrently revised the accounting guidance related to the consolidation of VIEs (the “consolidation accounting guidance”) and the guidance related to transfers of financial assets, and we adopted the revised guidance for these topics prospectively effective January 1, 2010 (the “transition date”).

We have interests in various entities that are considered VIEs. A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights.

We determine if an entity is a VIE by performing a qualitative analysis, which requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If we cannot conclude after a qualitative analysis whether an entity is a VIE, we perform a quantitative analysis.

The primary types of VIE entities with which we are involved are securitization trusts guaranteed by us via lender swap and portfolio securitization transactions, 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.

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. An enterprise is deemed to be the primary beneficiary of a VIE when the enterprise has 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 the party that 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 such that we no longer hold substantially all of the certificates issued by a multi-class resecuritization trust.

Measurement of Consolidated Assets and Liabilities

As of the transition date for the revised consolidation accounting guidance, we initially measured the assets and liabilities of the consolidated securitization trusts at their unpaid principal balances and established a corresponding valuation allowance and accrued interest, as it was not practicable to determine the carrying amount of such assets and liabilities. The securitization assets and liabilities that did not qualify for the use of this practical expedient were initially measured at fair value. As such, we recognized in our consolidated balance sheets the mortgage loans underlying our consolidated trusts as “Mortgage loans held for investment of consolidated trusts.” We also recognized securities issued by these trusts that are held by third parties in our consolidated balance sheets as “Debt of consolidated trusts.”

Subsequent to the transition date, 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 subsequent to transition (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 consolidated. 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 “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss).

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 as “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss).

Purchase/Sale of Fannie Mae Securities

We actively purchase and may subsequently sell guaranteed MBS that have been issued through our lender swap and portfolio securitization transaction programs. 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.

Single-Class Securitization Trusts

We create single-class securitization trusts to issue single-class Fannie Mae MBS 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 single-class 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 both our lender swap and portfolio securitization transaction programs. 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 (e.g., when the loan collateral is subject to an FHA guarantee 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 the other cost basis adjustments) at the time of purchase. We account for the sale of an MBS from Fannie Mae’s portfolio that was issued from a consolidated trust as the issuance of debt in our consolidated financial statements. We amortize the related premiums, discounts and other cost basis adjustments into income over time.

To determine the order in which consolidated debt is extinguished, we have elected to use a daily convention in the application of the last-issued first-extinguished method. Under this method, we record the net daily change in each MBS holding as either the issuance of debt if there has been an increase in the position that is held by third parties, or the extinguishment of the most recently issued related debt if there has been a decrease in the position held by third parties. The impact of this method is that we record the net daily activity for an MBS as if it were a single buy or sell trade, which results in a change in our beginning debt balance if the total unpaid principal balance purchased does not match the total unpaid principal balance sold.

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

Single-class resecuritization trusts are created by depositing Fannie Mae MBS into a new securitization trust for the purpose of aggregating multiple MBS into a single larger security. The cash flows from the new security represent an aggregation of the cash flows from the underlying MBS. We guarantee to each single-class resecuritization trust that we will supplement amounts received by the trust as required to permit timely payments of principal and interest on the related Fannie Mae securities. However, we assume no additional credit risk in such a resecuritization transaction, because the underlying assets are MBS for which we have already provided a guaranty. Additionally, our involvement with these trusts does not provide any incremental rights or power that would enable Fannie Mae to direct any activities of the trusts. As a result, we have concluded that we are not the primary beneficiaries of, and therefore do not consolidate, our single-class resecuritization trusts.

As our single-class resecuritization securities pass through all of the cash flows of the underlying MBS directly to the holders of the securities, they are deemed to be substantially the same as the underlying MBS. Therefore, we account for purchases of our single-class resecuritization securities as an extinguishment of the underlying MBS debt and the sale of these securities as an issuance of the underlying MBS debt.

Multi-Class Resecuritization Trusts

Multi-class resecuritization trusts are trusts we create to issue multi-class Fannie Mae securities, including Real Estate Mortgage Investment Conduit (“REMIC”) and strip securities, 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 payments of principal and interest, as applicable, on the related Fannie Mae securities. However, we assume no additional credit risk in such a resecuritization transaction because the underlying assets are Fannie Mae MBS for which we have already provided a guaranty. Although we may be exposed to prepayment risk via our ownership of the securities issued by these trusts, we do not have the ability via our involvement with a multi-class resecuritization trust to impact the economic risk to which we are exposed. Therefore, we do not consolidate such a multi-class resecuritization trust until we hold a substantial portion of the outstanding beneficial interests that have been issued by the trust and are therefore considered the primary beneficiary of the trust.

In contrast to our single-class resecuritization trust, the cash flows from the underlying MBS are divided between the debt securities issued by the multi-class resecuritization trust, and therefore, the debt issued by a multi-class resecuritization trust is not substantially the same as the consolidated MBS debt. As a result, if a multi-class resecuritization trust is not consolidated, we account for the purchase and sale of such securities as the transfer of an investment security in accordance with the accounting guidance for the transfers of financial assets rather than the issuance or extinguishment of the related multi-class debt. However, if a multi-class resecuritization trust is consolidated, we account for the purchase of the securities issued by consolidated multi-class resecuritization trusts as an extinguishment of the debt issued by these trusts and the subsequent sale of such securities as the issuance of multi-class debt.

When we do not consolidate a multi-class resecuritization trust, we recognize in our consolidated financial statements both our investment in the trust and the mortgage loans of the Fannie Mae MBS trusts that we consolidate that underlie the multi-class resecuritization trust. Additionally, we recognize the unsecured corporate debt issued to third parties to fund the purchase of our investments in the multi-class resecuritization trusts and the debt issued to third parties of the MBS trusts we consolidate that underlie the multi-class resecuritization trusts. This results in the recognition of interest income from investments in multi-class resecuritization trusts and interest expense from the unsecured debt issued to third parties to fund the purchase of the investments in multi-class resecuritization trusts, as well as interest income from the mortgage loans and interest expense from the debt issued to third parties from the MBS trusts we consolidate that underlie the multi-class resecuritization trusts.

Transfers of Financial Assets

We evaluate a transfer of financial assets to determine whether the transfer qualifies as a sale. If the 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 such a transfer. Transfers of financial assets for which we surrender control of the transferred assets are recorded 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 proceeds from the sale is recorded as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss). Retained interests are primarily derived from transfers associated with our portfolio securitizations in the form of Fannie Mae MBS, REMIC certificates, guaranty assets and master servicing assets (“MSAs”). We separately describe the subsequent accounting, as well as how we determine fair value, for our retained interests in the Fannie Mae MBS included in “Investments in Securities” section of this note.

We enter into dollar roll transactions, which involve contemporaneous purchase and sale trades of agency securities, traded on a “to-be-announced” basis. When we enter into such agreements, we first account for our forward commitments to buy and sell the agency securities as derivatives in our financial statements at the trade date for both the purchase and sales trades. For certain dollar roll transactions, we may fully or partially settle the forward purchase or sale subsequent to the trade date, but prior to the contractual settlement date such that all or a portion of the securities will not be delivered according to the terms of the original trade. When such a settlement occurs, the contemporaneous purchase and sale trades no longer meet the “substantially the same” criteria as necessary for secured financing treatment, and the remaining transfers are accounted for as purchases or sales of securities. Purchased securities are initially recognized at fair value and accounted for as described in “Investment in Securities” section of this note.

For those commitments that are not settled prior to the contractual settlement date for the first trade, we assess whether both the purchase and sale trades have the same primary obligor, form and type, maturity, interest rate, collateral, and unpaid principal balance, and thus meet all of the criteria to be considered substantially the same. If the “substantially the same” criteria are met as of the settlement date for the first trade, we will account for the transaction as a secured financing and extinguish both the purchase and sale commitments as of that date. Dollar roll transactions involving transfers of securities issued by consolidated MBS trusts are accounted for as issuances or extinguishments of the related consolidated MBS debt in our consolidated financial statements.

We also enter into other 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 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.

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 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. We classify cash flows related to dollar roll transactions that do not meet the requirements to be accounted for as secured borrowings as purchases and sales of securities in investing activities. We classify cash flows from trading securities based on their nature and purpose. We classify cash flows from trading securities that we intend to hold for investment (the majority of our mortgage-related trading securities) as investing activities and cash flows from trading securities that we do not intend to hold for investment (primarily our non-mortgage-related securities) as operating activities.

For consolidated trusts, we classify cash flows related to mortgage loans held by our consolidated trusts as either investing activities (for principal repayments) or operating activities (for interest received from borrowers included as a component of our net income (loss). 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 (loss). 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.

Restricted Cash

We and our servicers advance payments on delinquent loans to consolidated Fannie Mae MBS trusts. We recognize the cash advanced as “Restricted cash” in our consolidated balance sheets to the extent such amounts are due to, but have not yet been remitted to, the MBS certificateholders. In addition, 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.”

We also recognize “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.

Investments in Securities

Securities Classified as Available-for-Sale or Trading

We classify and account for our securities as either available-for-sale (“AFS”) or trading. We measure AFS securities at fair value in our consolidated balance sheets, with unrealized gains and losses included in “Accumulated other comprehensive income (loss)” (“AOCI”), net of applicable income taxes. We recognize realized gains and losses on AFS securities when securities are sold. We calculate the gains and losses using the specific identification method and record them in “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss). 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 losses, net” in our consolidated statements of operations and comprehensive income (loss). We include interest and dividends on securities, including amortization of the premium and discount at acquisition, in our consolidated statements of operations and comprehensive income (loss). When we receive multiple deliveries of securities on the same day that are backed by the same pools of loans, we calculate the specific cost of each security as the average price of the trades that delivered those securities. Currently, we do not have any securities classified as held-to-maturity, although we may elect to do so in the future.

Other-Than-Temporary Impairment of Debt Securities

We evaluate available-for-sale securities for other-than-temporary impairment on a quarterly basis. An other-than-temporary impairment is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell or it is more likely than not that we will be required to sell the security before recovery. We recognize in our consolidated statements of operations and comprehensive income (loss), the entire difference between the amortized cost basis of the security and its fair value. An other-than-temporary impairment is also considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend or it is not more likely than not we will be required to sell the security before recovery. We separate the difference between the amortized cost basis of the security and its fair value into the amount representing the credit loss, which we recognize in our consolidated statements of operations and comprehensive income (loss), and the amount related to all other factors, which we recognize in “Other comprehensive income (loss),” net of applicable taxes. In determining whether a credit loss exists, we use our best estimate of cash flows expected to be collected from the debt security.

We consider guarantees, insurance contracts or other credit enhancements (such as collateral) in determining our best estimate of cash flows expected to be collected only if (1) such guarantees, insurance contracts or other credit enhancements provide for payments to be made solely to reimburse us for failure of the issuer to satisfy its required payment obligations, (2) such guarantees, insurance contracts or other credit enhancements are contractually attached to the security and (3) collection of the amounts receivable under these agreements is deemed probable. Guarantees, insurance contracts or other credit enhancements are considered contractually attached if they are part of and trade with the security upon transfer of the security to a third party.

In periods after we recognize an other-than-temporary impairment of debt securities, we use the prospective interest method to recognize interest income. Under the prospective interest method, we calculate a new effective yield for subsequent recognition of interest income and measurement of impairment when we determine that there has been a significant increase in expected or actual cash flows. We consider a significant increase in cash flows to be at least a ten percent increase over two consecutive quarters of the expected or actual cash flows. We calculate the new effective yield by using the new cost basis and the significantly increased actual or expected cash flows.

Mortgage Loans

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 held for investment (“HFI”). When we consolidate a 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, mortgages acquired when we have the intent to securitize via trusts that are consolidated will generally be classified as HFI in our consolidated balance sheets both prior to and subsequent to their securitization.

We report HFI loans at their outstanding unpaid principal balance adjusted for any deferred and unamortized cost basis adjustments, including purchase premiums, discounts and other cost basis adjustments. We recognize interest income on HFI loans on an accrual basis using the interest method, including the amortization of any deferred cost basis adjustments, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured.

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 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 (loss). 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 on a pool basis by aggregating those loans based on similar risks and characteristics, such as product types and interest rates.

In the event that we reclassify HFS loans to HFI, we record the loans at lower of cost or fair value on the date of reclassification. We recognize any lower of cost or fair value adjustment recognized upon reclassification as a basis adjustment to the HFI loan.

Nonaccrual Loans

We discontinue accruing interest on loans when we believe collectibility of principal or interest is not reasonably assured, which for single-family loans 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. We generally place multifamily loans on nonaccrual status when the loan is deemed to be individually impaired, unless the loan is well secured such that collectibility of principal and accrued interest is reasonably assured.

When a loan is placed on nonaccrual status, interest previously accrued but not collected becomes part of our recorded investment in the loan and is collectively reviewed for impairment. For single-family loans, we recognize interest income for loans on nonaccrual status when cash is received. For multifamily loans, we apply any payment received on a cost recovery basis to reduce principal on the mortgage loan unless the loan is determined to be well secured.

We return a single-family loan to accrual status at the point that the borrower has made sufficient payments to reduce their delinquency below our nonaccrual threshold. For modified single-family loans, the loan is not returned to accrual status until the borrower successfully makes all required payments during the trial period (generally three to four months) and the modification is made permanent. We generally return a multifamily loan to accrual status when the borrower cures the delinquency of the loan or we otherwise determine that the loan is well secured such that collectibility is reasonably assured.

Restructured Loans

A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties 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 below market 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 do not currently include principal or past due interest forgiveness as part of our loss mitigation programs, and as a result, we 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 provide us reasonable assurance regarding the collectibility of the principal and interest due in accordance with the loan’s modified terms, which include any past due interest amounts that are capitalized 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.

In addition to these loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans, forbearance arrangements, and the capitalization only of past due amounts. Repayment plans and forbearance arrangements are informal agreements with the borrower that do not result in the legal modification of the loan. 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, the delay is no longer considered insignificant, and the restructuring is accounted for as a TDR.

We measure impairment of a loan restructured in a TDR individually based on the excess of the recorded investment in the loan over the present value of the expected future cash inflows discounted at the loan’s original effective interest rate. Costs incurred to complete a TDR are expensed as incurred. However, when foreclosure is probable on an individually impaired loan, we measure impairment based on the difference between our recorded investment in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive.

In April 2011, FASB issued new guidance effective for the three months ended September 30, 2011 that applied retrospectively to January 1, 2011. The new guidance clarified how to determine when a borrower is experiencing financial difficulty, when a concession is granted by a creditor, and when a delay in payment is considered insignificant. The primary impact to us of adopting this new guidance was the refinement of how we define an insignificant delay. As a result, we lowered our threshold for an insignificant delay from approximately nine missed payments to three missed payments and thus this type of additional loss mitigation activity that had previously been excluded is now considered a TDR. This refinement was necessary in order to conform our policy to the new guidance on insignificant delay provided by the FASB.

As a result of adopting the new TDR accounting guidance, we identified approximately 22,000 loan restructurings for the nine months ended September 30, 2011 that had not defaulted as of September 30, 2011 and were not previously considered TDRs. The impact of this was an increase in our provision for loan losses of $514 million in our condensed consolidated statements of operations and comprehensive loss for the three months ended September 30, 2011. This amount reflects the net increase in our allowance for loan losses due to identifying these restructurings as TDRs and measuring their impairment on an individual basis offset by the elimination of our allowance for loan loss measured on a collective basis related to these loans.

Allowance for Loan Losses and Reserve for Guaranty Losses

Our allowance for loan losses is a valuation allowance that reflects an estimate of incurred credit losses related to our recorded investment in both single-family and multifamily HFI loans. This population includes both HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. When calculating our loan loss allowance, we consider only our net recorded investment in the loan at the balance sheet date, which includes the loan’s unpaid principal balance and accrued interest recognized while the loan was on accrual status and any applicable cost basis adjustments. We record charge-offs as a reduction to the allowance for loan losses when losses are confirmed through the receipt of assets in full satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale. We recognize incurred losses by recording a charge to the provision for loan losses, which is a component of “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income (loss).

In the three months ended September 30, 2012, we identified a misstatement in the classification of TDRs related to certain borrowers who used the bankruptcy process to receive a discharge of the mortgage debt or to cure a mortgage delinquency over time. We determined that the discharge of mortgage debt in bankruptcy was a concession in cases in which the discharge effectively resulted in us losing our ability to hold the borrower personally liable for deficiencies under state law, although we continue to be able to foreclose on the collateral. We also determined that curing a mortgage delinquency over time through bankruptcy resulted in a concession similar to other long-term repayment plans. Therefore, we determined that these loans should have been classified as TDRs and measured for individual impairment when estimating the allowance for loan losses as of December 31, 2011. To correct this misstatement, we recorded an out-of-period adjustment of approximately $850 million to increase the “Provision for credit losses” in our condensed consolidated statement of operations and comprehensive income (loss) for the three months ended September 30, 2012.

Additionally, for the year ended December 31, 2012, we identified misstatements in our consideration of the benefit for repurchase requests, the calculation used to discount the deferred payment obligation for certain mortgage insurers currently in run-off, and the calculation of the recorded investment and yield on certain populations of individually impaired loans when estimating the allowance for loan losses as of December 31, 2011. In addition, we identified a misstatement in the calculation of the default rate used for certain bonds to estimate the reserve for guaranty losses as of December 31, 2011. To correct the above misstatements, we have recorded an out-of-period adjustment of $1.2 billion to increase the provision for credit losses in our consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2012.

The impact of the above misstatements was an out-of-period adjustment of approximately $2.1 billion to increase the provision for credit losses in our consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2012. We have evaluated the effects of these misstatements, both quantitatively and qualitatively, and concluded that no prior periods are materially misstated. We have also concluded that the misstatement is not material to our 2012 consolidated financial statements.

The reserve for guaranty losses is a liability account which is a component of “Other liabilities” in our consolidated balance sheets that reflects an estimate of incurred credit losses related to our guaranty to each unconsolidated Fannie Mae MBS trust that we will supplement amounts received by the Fannie Mae MBS trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS and our agreements to purchase credit-impaired loans from lenders under the terms of our long-term standby commitments. As a result, the guaranty reserve considers not only the principal and interest due on the loan at the current balance sheet date, but also any additional interest payments due to the trust from the current balance sheet date until the point of loan acquisition or foreclosure.

We recognize incurred losses by recording a charge to the provision for guaranty losses, which is a component of “Benefit (provision) for credit losses,” in our consolidated statements of operations and comprehensive income (loss).

Single-Family Loans

We recognize credit losses related to groups of similar single-family HFI loans that are not individually impaired when (1) available information as of each balance sheet date indicates that it is probable a loss has occurred and (2) the amount of the loss can be reasonably estimated. We aggregate such loans, based on similar risk characteristics, for purposes of estimating incurred credit losses and establish a collective single-family loss reserve using an econometric model that derives an overall loss reserve estimate. The estimate takes into account multiple factors which include but are not limited to origination year, loan product type, mark-to-market loan-to-value (“LTV”) ratio; and delinquency status. Once loans are aggregated, there typically is not a single, distinct event that would result in an individual loan or pool of loans being impaired. Accordingly, to determine an estimate of incurred credit losses, we base our allowance and reserve methodology on historical events and trends, such as loss severity (in event of default), default rates, and recoveries from mortgage insurance contracts and other credit enhancements that provide loan level loss coverage and are either contractually attached to a loan or that were entered into contemporaneously with and in contemplation of a guaranty or loan purchase transaction. In determining our collective reserve, we use recent actual severity experienced in our real-estate owned (“REO”) and loss mitigation operations, including the sales of our own foreclosed properties, to estimate the loss given default. Our allowance calculation also incorporates a loss confirmation period (the anticipated time lag between a credit loss event and the confirmation of the credit loss resulting from that event) to ensure our allowance estimate captures credit losses that have been incurred as of the balance sheet date but have not been confirmed. In addition, management performs a review of the observable data used in its estimate to ensure it is representative of prevailing economic conditions and other events existing as of the balance sheet date.

We record charge-offs as a reduction to the allowance for loan losses or reserve for guaranty losses when losses are confirmed through the receipt of assets in full satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale. The excess of a loan’s unpaid principal balance, accrued interest, and any applicable cost basis adjustments (“our total exposure”) over the fair value of the assets received is treated as a charge-off loss that is deducted from the allowance for loan losses or reserve for guaranty losses. The amount charged off also considers estimated proceeds from primary mortgage insurance or other credit enhancements that are either contractually attached to a loan or that were entered into contemporaneously with and in contemplation of a guaranty or loan purchase transaction as a recovery of our total exposure, up to the amount of loss recognized as a charge-off. We record additional proceeds from primary mortgage insurance and credit enhancements in excess of our total exposure as a recovery of any forgone contractually past due interest, and then as an offset to the expenses recorded in “Foreclosed property (income) expense” in our consolidated statements of operations and comprehensive income (loss) when received.

Individually Impaired Single-Family Loans

Individually impaired single-family loans currently include those restructured in a TDR and acquired credit-impaired loans. We consider a loan to be impaired when, based on current information, it is probable that we will not receive all amounts due, including interest, in accordance with the contractual terms of the loan agreement. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment and shortfalls in amounts received. Determination of whether a delay in payment or shortfall in amount is more than insignificant requires management’s judgment as to the facts and circumstances surrounding the loan.

Our measurement of impairment on an individually impaired loan follows the method that is most consistent with our expectations of recovery of our recorded investment in the loan. When a loan has been restructured, we measure impairment using a cash flow analysis discounted at the loan’s original effective interest rate. If we expect to recover our recorded investment in an individually impaired loan through probable foreclosure of the underlying collateral, we measure impairment based on the fair value of the collateral, reduced by estimated disposal costs on a discounted basis and adjusted for estimated proceeds from mortgage, flood, or hazard insurance or similar sources. For individually impaired loans that we believe are probable of foreclosure, we take into consideration the sales prices of foreclosed properties in determining the value of the underlying real estate collateral.

We use internal models to project cash flows used to assess impairment of individually impaired loans, and generally update the market and loan characteristic inputs we use in these models monthly, using month-end data. Market inputs include information such as interest rates, volatility and spreads, while loan characteristic inputs include information such as mark-to-market LTV ratios and delinquency status. The loan characteristic inputs are key factors that affect the predicted rate of default for loans evaluated for impairment through our internal cash flow models. For example, loans with an unsuccessful trial modification, which are often accompanied by high delinquency rates, have much higher predicted default rates compared to performing loans with completed modifications, particularly those with a significant payment reduction in the borrower’s required monthly payment. We evaluate the reasonableness of our models by comparing the results with actual performance and our assessment of current market conditions. In addition, we review our models at least annually for reasonableness and predictive ability in accordance with our corporate model review policy. Accordingly, we believe the projected cash flows generated by our models that we use to assess impairment appropriately reflect the expected future performance of the loans.

Multifamily Loans

We identify multifamily loans for evaluation for impairment through a credit risk assessment process. Based on this evaluation, we determine for loans that are not in homogeneous pools whether or not a loan is individually impaired. We consider a loan to be individually impaired when, based on current information gathered in our risk assessment process, it is probable that we will not receive all amounts due, including interest, in accordance with the contractual terms of the loan agreement. If we determine that a multifamily loan is individually impaired, we generally measure impairment on that loan based on the fair value of the underlying collateral less estimated costs to sell the property. If we determine that an individual loan that was specifically evaluated for impairment is not individually impaired, we include the loan as part of a pool of loans with similar characteristics that are evaluated collectively for incurred losses.

We stratify multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan. We categorize loan credit risk based on relevant observable data about a borrower’s ability to pay, including multifamily market economic fundamentals, review of available current borrower financial information, operating statements on the underlying collateral, current debt service coverage ratios, historical payment experience, estimates of the current collateral values and other related credit documentation. As a result of this analysis, multifamily loans are categorized based on management’s judgment into the following categories: (1) Green (loan with acceptable risk); (2) Yellow (loan with signs of potential weakness); (3) Orange (loan with a well-defined weakness that may jeopardize the timely full repayment); and (4) Red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values). We evaluate loans in the orange and red risk categories to determine which ones are individually impaired.

For each risk category, certain observed default probability and loss severity (in event of default) factors, based on historical performance of loans in the same risk category, are applied against our recorded investment in the loans, including recorded accrued interest associated with such loans, to determine an appropriate allowance. Such performance data reflect historical delinquencies and charge-offs, as well as loan size. In addition, we consider any credit enhancements such as letters of credit or loss sharing arrangements with our lenders.

Advances to Lenders

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.

We report cash outflows from advances to lenders as an investing activity in our consolidated statements of cash flows. Settlements of the advances to lenders, other than through lender repurchases of loans, are not collected in cash, but rather in the receipt of either loans or Fannie Mae MBS. Accordingly, this activity is reflected as a non-cash transfer in our consolidated statements of cash flows in the line item entitled “Transfers from advances to lenders to loans held for investment of consolidated trusts.”

Acquired Property, Net

“Acquired property, net” includes foreclosed property and any receivable outstanding on short sales received in full satisfaction of a loan. We recognize foreclosed property upon the earlier of the loan foreclosure event or when we take physical possession of the property (i.e., through a deed-in-lieu of foreclosure transaction). We initially measure foreclosed property at its fair value less its estimated costs to sell. We treat any excess of our recorded investment in the loan over the fair value less estimated costs to sell the property as a charge-off to the “Allowance for loan losses.” Any excess of the fair value less estimated costs to sell the property over our recorded investment in the loan is recognized first to recover any forgone, contractually due interest, then to “Foreclosed property (income) expense” in our consolidated statements of operations and comprehensive income (loss).

We classify foreclosed properties as held for sale 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, on a discounted basis if the sale is expected to occur beyond one year from the date of foreclosure. 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 (income) expense” in our consolidated statements of operations and comprehensive income (loss). 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 (income) expense” in our consolidated statements of operations and comprehensive income (loss).

Properties that do not meet the criteria to be classified as held for sale 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.

Fannie Mae MBS included in “Investments in securities”

When we own unconsolidated Fannie Mae MBS, we do not derecognize any components of the guaranty assets, guaranty obligations, reserve for guaranty losses, 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 value Fannie Mae MBS based on their legal terms, which includes the Fannie Mae guaranty to the MBS trust, and continue to reflect the unamortized obligation to stand ready to perform over the term of our guaranty and any incurred credit losses in our “Other liabilities” and “Reserve for guaranty losses,” respectively. We disclose the aggregate amount of Fannie Mae MBS held as “Investments in securities” in our consolidated balance sheets as well as the amount of our “Reserve for guaranty losses” and “Other liabilities” that relates to Fannie Mae MBS held as “Investments in securities.” Upon subsequent sale of a Fannie Mae MBS, we continue to account for any outstanding recorded amounts associated with the guaranty transaction on the same basis of accounting as prior to the sale of Fannie Mae MBS, as no new assets were retained and no new liabilities have been assumed upon the subsequent sale.

Amortization of Cost Basis Adjustments

We generally amortize cost basis adjustments, including premiums and discounts on mortgage loans and securities, as a yield adjustment using the interest method over the contractual term of the loan or security. We amortize these cost basis adjustments into interest income for mortgage securities and for loans we classify as HFI. We do not amortize cost basis adjustments for loans that we classify as HFS, but include them in the calculation of the gain or loss on the sale of those loans.

We cease amortization of cost basis adjustments during periods in which we are not recognizing interest income on a loan because the collection of the principal and interest payments is not reasonably assured (that is, when the loan is placed on nonaccrual status).

Commitments to Purchase and Sell Mortgage Loans and Securities

We enter into commitments to purchase and sell mortgage-backed securities and to purchase single-family and multifamily mortgage loans. Certain commitments to purchase or sell mortgage-backed securities and to purchase single-family mortgage loans are generally accounted for as derivatives. Our commitments to purchase multifamily loans are not accounted for as derivatives because they do not meet the criteria for net settlement.

When derivative purchase commitments settle, we include the fair value on the settlement date in the cost basis of the loan or unconsolidated security we purchase. When derivative commitments to sell securities settle, we include the fair value of the commitment on the settlement date in the cost basis of the security we sell. Purchases and sales of securities issued by our consolidated MBS trusts are treated as extinguishment or issuance 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 the derivative accounting literature. 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.

Commitments to purchase securities that we do not account for as derivatives and do not require trade-date accounting are accounted for as forward contracts to purchase securities. We designate these commitments as AFS or trading at inception and account for them in a manner consistent with that category of securities.

Derivative Instruments

We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade date basis. We report derivatives in a gain position after offsetting by counterparty in “Other assets” and derivatives in a loss position after offsetting by counterparty in “Other liabilities” in our consolidated balance sheets.

We offset the carrying amounts of certain derivatives that are in gain positions and loss positions with the same counterparty as well as cash collateral receivables and payables associated with derivative positions under master netting arrangements. We offset these amounts only when we have the legal right to offset under the contract and we have met all the offsetting conditions.

We evaluate financial instruments that we purchase or issue and other financial and non-financial contracts for embedded derivatives. To identify embedded derivatives that we must account for separately, we determine if: (1) the economic characteristics of the embedded derivative are not clearly and closely related to the economic characteristics of the financial instrument or other contract (i.e., the hybrid contract); (2) the financial instrument or other contract itself is not already measured at fair value with changes in fair value included in earnings; and (3) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. If the embedded derivative meets all three of these conditions we elect to carry the hybrid contract in its entirety at fair value with changes in fair value recorded in earnings.

Collateral

We enter into various transactions where we pledge and accept collateral, the most common of which are our derivative transactions. Required collateral levels vary depending on the credit rating and type of counterparty. We also pledge and receive collateral under our repurchase and reverse repurchase agreements. In order to reduce potential exposure to repurchase counterparties, a third-party custodian typically maintains the collateral and any margin. We monitor the fair value of the collateral received from our counterparties, and we may require additional collateral from those counterparties, as we deem appropriate.

Cash Collateral

We record cash collateral accepted from a counterparty that we have the right to use as “Cash and cash equivalents” and cash collateral accepted from a counterparty that we do not have the right to use as “Restricted cash” in our consolidated balance sheets. We net our obligation to return cash collateral pledged to us against the fair value of derivatives in a gain position recorded in “Other assets” in our consolidated balance sheets as part of our counterparty netting calculation.

For derivative positions with the same counterparty under master netting arrangements where we pledge cash collateral, we remove it from “Cash and cash equivalents” and net the right to receive it against the fair value of derivatives in a loss position recorded in “Other liabilities” in our consolidated balance sheets as a part of our counterparty netting calculation.

Non-Cash Collateral

We classify securities pledged to counterparties as either “Investments in securities” or “Cash and cash equivalents” in our consolidated balance sheets. Securities pledged to counterparties that have been consolidated with the underlying assets recognized as loans are included as “Mortgage loans” in our consolidated balance sheets.

Our liability to third party holders of Fannie Mae MBS that arises as the result of a consolidation of a securitization trust is collateralized by the underlying loans and/or mortgage related securities.

We had reverse repurchase agreements outstanding of $45.8 billion and $49.5 billion as of December 31, 2012 and 2011, respectively. The fair value of non-cash collateral we accepted was $46.2 billion and $50.1 billion as of December 31, 2012 and 2011, respectively, of which we were permitted to sell or repledge $25.0 billion and $20.0 billion as of December 31, 2012 and 2011, respectively. None of the underlying collateral was sold or repledged as of December 31, 2012 or 2011.

Debt

Our consolidated balance sheets contain debt of Fannie Mae as well as debt of consolidated trusts. Effective January 1, 2011, we reported 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. The debt of consolidated trusts represents the amount of Fannie Mae MBS issued from such trusts which 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. We remeasure the carrying amount, accrued interest and basis adjustments of debt denominated in a foreign currency into U.S. dollars using foreign exchange spot rates as of the balance sheet dates and report any associated gains or losses as a component of “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss).

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. We remeasure interest expense for debt denominated in a foreign currency into U.S. dollars using the daily spot rates. The difference in rates arising from the month-end spot exchange rate used to calculate the interest accruals and the daily spot rates used to record the interest expense is a foreign currency transaction gain or loss for the period and is recognized as a component of “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss).

When we purchase a Fannie Mae MBS issued from a consolidated single-class securitization trust, we extinguish the related debt of the consolidated trust as the MBS debt is no longer owed to a third-party. We record debt extinguishment gains or losses related to debt of consolidated trusts to the extent that the purchase price of the MBS does not equal the carrying value of the related consolidated MBS debt reported in our balance sheets (including unamortized premiums, discounts and other cost basis adjustments) at the time of purchase.

Income Taxes

We recognize deferred tax assets and liabilities for the difference in the bases of assets and liabilities for financial accounting and tax purposes. We measure deferred tax assets and liabilities using enacted tax rates that are expected to be applicable to the taxable income or deductions in the period(s) the assets are realized or the liabilities are settled. We adjust deferred tax assets and liabilities for the effects of changes in tax laws and rates on the date 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 reduce our deferred tax assets by an allowance if, based on the weight of available positive and negative evidence, it is more likely than not that we will not realize some portion, or all, of the deferred tax asset.

We account for income tax uncertainty 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 (a probability of greater than 50%) that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then recognize a tax benefit equal to 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” in our consolidated statements of operations and comprehensive income (loss).

Pension and Other Postretirement Benefits

We provide pension and postretirement benefits and account for these benefit costs on an accrual basis. We determine pension and postretirement benefit amounts recognized in our consolidated financial statements on an actuarial basis using several different assumptions. The two most significant assumptions used in the valuation are the discount rate and the long-term rate of return on assets. In determining our net periodic benefit cost, we apply a discount rate in the actuarial valuation of our pension and postretirement benefit obligations. In determining the discount rate as of each balance sheet date, we consider the current yields on high-quality, corporate fixed-income debt instruments with maturities corresponding to the expected duration of our benefit obligations. Additionally, the net periodic benefit cost recognized in our consolidated financial statements for our qualified pension plan is impacted by the long-term rate of return on plan assets. We base our assumption of the long-term rate of return on the current investment portfolio mix, actual long-term historical return information and the estimated future long-term investment returns for each class of assets. We measure plan assets and obligations as of the date of our consolidated financial statements. We recognize the over-funded or under-funded status of our benefit plans as a prepaid benefit cost (an asset) in “Other assets” or an accrued benefit cost (a liability) in “Other liabilities,” respectively, in our consolidated balance sheets. We recognize actuarial gains and losses and prior service costs and credits when incurred as adjustments to the prepaid benefit cost or accrued benefit cost with a corresponding offset in other comprehensive income (loss).

Earnings (Loss) per Share

Earnings (loss) per share (“EPS”) is presented for both basic EPS and diluted EPS. We compute basic EPS by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In addition to common shares outstanding, the computation of basic EPS includes instruments for which the holder has (or is deemed to have) the present rights as of the end of the reporting period to share in current period earnings (loss) with common stockholders (i.e., participating securities and common shares that are currently issuable for little or no cost to the holder). We include in the denominator of our basic EPS computation the weighted-average number of shares of common stock that would be issued upon the full exercise of the warrant issued to Treasury. Diluted EPS includes all the components of basic EPS, plus the dilutive effect of common stock equivalents such as convertible securities and stock options, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The calculation of income available to common stockholders and earnings per share is based on the underlying premise that all income after payment of dividends on preferred shares is available to and will be distributed to the common shareholders. However, as a result of our conservatorship status and the terms of the senior preferred stock purchase agreement with Treasury, no amounts will be available to distribute as dividends to common or preferred stockholders (other than to Treasury as holder of the senior preferred stock).

Other Comprehensive Income (Loss)

Other comprehensive income (loss) is the change in equity, net of tax, resulting from certain transactions that we record directly to stockholders’ equity (deficit). These transactions include unrealized gains and losses on certain AFS securities and certain commitments whose underlying securities are classified as AFS. It also includes change in prior service costs and credits and actuarial gains and losses associated with pension and postretirement benefits in other comprehensive income (loss).

Compensatory Fees

We charge our primary servicers a compensatory fee for servicing delays within their control when they fail to comply with established loss mitigation and foreclosure timelines per our Servicing Guide, which sets forth our policies and procedures related to servicing our single-family mortgages. Compensatory fees are intended to compensate us for damages attributed to such servicing delays and to emphasize the importance of servicer performance.

We recognize a compensatory fee receivable when the amounts are chargeable per our Servicing Guide and are considered reasonably assured of collection. We subsequently establish a valuation allowance for any amounts we estimate to be uncollectible. If such fees are not reasonably assured of collection, we recognize them on a cash basis when received. The income associated with these fees is recognized as a component of “Foreclosed property (income) expense” in our consolidated statements of operations and comprehensive income (loss).

Reclassifications

To conform to our current period presentation, we have reclassified certain amounts reported in our consolidated financial statements.

New Accounting Guidance

Effective January 1, 2012, we prospectively adopted guidance issued by the Financial Accounting Standards Board (“FASB”) related to fair value measurement. The new guidance does not expand the use of fair value; instead, it provides guidance about how fair value should be determined where it already is required or permitted under U.S. GAAP. The new fair value guidance changes certain fair value principles and clarifies the FASB’s intent on certain items, including a clarification that the principal market should be determined based on the market the entity has access to with the greatest volume and level of activity for the asset or liability. It also expands the disclosures about fair value measurements. The adoption of this guidance did not have a material impact on our consolidated financial statements; however, it required us to expand our fair value disclosures. See “Note 17, Fair Value,” for additional information regarding the impact upon adoption of this guidance.

In December 2011 and January 2013, the FASB issued guidance on additional disclosures about derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset on the balance sheet or subject to a master netting arrangement or similar agreement. The additional disclosures about these instruments are intended to enable investors to understand the effect or potential effect of those arrangements on the company’s financial positions. The required disclosures will enhance comparability between companies that prepare their financial statements in accordance with GAAP and those that follow international financial reporting standards. The updated guidance does not change existing offsetting eligibility criteria or the permitted balance sheet presentation for those instruments that meet the eligibility criteria. The new guidance became effective for us on January 1, 2013, and will be applied retrospectively. We do not expect that the adoption of these amendments will have a material impact on our consolidated financial statements.

Consolidations and Transfers of Financial Assets

12 Months Ended

Dec. 31, 2012

Consolidations and Transfers of Financial Assets [Abstract]

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 trusts guaranteed by us via lender swap and portfolio securitization transactions, mortgage and asset-backed trusts that were not created by us, as well as housing partnerships that are established to finance the acquisition, construction, development or rehabilitation of affordable multifamily and single-family housing. These interests include investments in securities issued by VIEs, such as Fannie Mae MBS created pursuant to our securitization transactions and our guaranty to the entity. 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.

Types of VIEs

Securitization 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. 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. We have securitized mortgage loans since 1981.

In our structured securitization transactions, we earn fees for assisting lenders and dealers with the design and issuance of structured mortgage-related securities. The trusts created in these transactions have permitted activities that are similar to those for our lender swap and portfolio securitization transactions. The assets of these trusts may include mortgage-related securities and/or mortgage loans. The trusts created for Fannie Mae Mega securities issue single-class securities while the trusts created for REMIC, grantor trust and stripped mortgage-backed securities (“SMBS”) issue single-class and multi-class securities, the latter of which separate the cash flows from underlying assets into separately tradable interests. Our obligations and continued involvement in these trusts are similar to those described for lender swap and portfolio securitization transactions. We have securitized mortgage assets in structured transactions since 1986.

We also invest in mortgage-backed securities that have been issued via private-label trusts. These trusts are structured to provide investors with a beneficial interest in a pool of receivables or other financial assets, typically mortgage loans. The trusts act as vehicles to allow loan originators to securitize assets. Securities are structured from the underlying pool of assets to provide for varying degrees of risk. The originators of the financial assets or the underwriters of the transaction create the trusts and typically own the residual interest in the trusts’ assets. Our involvement in these entities is typically limited to our recorded investment in the beneficial interests that we have purchased. We have invested in these vehicles since 1987.

Limited Partnerships

We have historically made equity investments in various limited partnerships that sponsor affordable housing projects utilizing the low-income housing tax credit 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.

We no longer recognize net operating losses or impairment on our LIHTC partnership investments as the carrying value was reduced to zero in the consolidated financial statements as of December 31, 2009. We did not make any LIHTC investments in 2012, other than pursuant to existing prior commitments.

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.

As of December 31, 2012, we consolidated certain VIEs that were not consolidated as of December 31, 2011, generally due to increases in the amount of the certificates issued by the entity that are held in our portfolio (for example, when we hold a substantial portion of the securities issued by Fannie Mae multi-class resecuritization trusts). As a result of consolidating these entities, which had combined total assets of $3.5 billion in unpaid principal balance as of December 31, 2012, we derecognized our investment in these entities and recognized the assets and liabilities of the consolidated entities at fair value.

As of December 31, 2012, we also deconsolidated certain VIEs that were consolidated as of December 31, 2011, generally due to decreases in the amount of the certificates issued by the entity that are held in our portfolio. As a result of deconsolidating these entities, which had combined total assets of $102 million in unpaid principal balance as of December 31, 2011, we derecognized the assets and liabilities of the entities and recognized at fair value our retained interests as securities in our consolidated balance sheets.

Unconsolidated VIEs

We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include securitization trusts, as well as other investment entities. The following table displays the carrying amount and classification of our assets and liabilities that relate to our involvement with unconsolidated VIEs as of December 31, 2012 and 2011, as well as our maximum exposure to loss and the total assets of those unconsolidated VIEs.



				As of December 31, 2012
				Mortgage-Backed Trusts			Limited Partnership Investments
				(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets:
Assets:
Available-for-sale securities⁽¹⁾				$	57,004			$	—
Trading securities⁽¹⁾				22,706				—
Other assets				145				120
Other liabilities				(1,449		)		(124		)
Net carrying amount				$	78,406			$	(4	)
Maximum exposure to loss⁽¹⁾				$	87,397			$	118
Total assets of unconsolidated VIEs⁽¹⁾				$	645,332			$	11,675


	As of December 31, 2011
	Mortgage-Backed Trusts			Asset-Backed Trusts			Limited Partnership Investments
	(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets:
Assets:
Available-for-sale securities ⁽¹⁾	$	69,101		$	—			$	—
Trading securities ⁽¹⁾	24,292			2,111				—
Other assets	271			—				145
Other liabilities	(1,347		)	—				(153		)
Net carrying amount	$	92,317		$	2,111			$	(8	)
Maximum exposure to loss ⁽¹⁾	$	100,146		$	2,111			$	137
Total assets of unconsolidated VIEs ⁽¹⁾	$	641,346		$	256,845			$	12,256

__________


⁽¹⁾	Contains securities recognized in our consolidated balance sheets due to consolidation of certain multi-class resecuritization trusts.

Our maximum exposure to loss generally represents the greater of our recorded investment in the entity or the unpaid principal balance of the assets covered by our guaranty. However, our securities issued by Fannie Mae multi-class resecuritization trusts that are not consolidated do not give rise to any additional exposure to loss as we already consolidate the underlying collateral.

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 portfolio in a portfolio securitization transaction. For the years ended December 31, 2012, 2011 and 2010, the unpaid principal balance of portfolio securitizations was $225.1 billion, $118.5 billion and $120.0 billion, respectively.

The following table displays some key characteristics of the securities retained in unconsolidated portfolio securitization trusts as of December 31, 2012 and 2011.



	Fannie Mae Single-class MBS & Fannie Mae Megas			REMICS & SMBS
	(Dollars in millions)
As of December 31, 2012
Unpaid principal balance	$	456		$	8,667
Fair value	504			9,818
Weighted-average coupon	6.20		%	5.53		%
Weighted-average loan age	6.4		years	4.6		years
Weighted-average maturity	22.5		years	15.0		years

As of December 31, 2011
Unpaid principal balance	$	588		$	12,697
Fair value	654			14,043
Weighted-average coupon	6.21		%	5.86		%
Weighted-average loan age	5.4		years	4.5		years
Weighted-average maturity	23.5		years	18.6		years

For the years ended December 31, 2012, 2011 and 2010, the principal and interest received on retained interests was $2.4 billion, $3.0 billion and $3.5 billion, respectively.

Managed Loans

We define “managed loans” as on-balance sheet mortgage loans as well as mortgage loans that we have securitized in unconsolidated portfolio securitization trusts. The following table displays the unpaid principal balances of managed loans, including those managed loans that were delinquent as of December 31, 2012 and 2011.



	As of December 31,
	2012						2011
	Unpaid Principal Balance			Principal Amount of Delinquent Loans⁽¹⁾			Unpaid Principal Balance			Principal Amount of Delinquent Loans⁽¹⁾
		(Dollars in millions)
Loans held for investment:
Of Fannie Mae		$	370,354		$	102,504		$	396,276		$	122,392
Of consolidated trusts		2,607,880			17,829			2,570,339			24,893
Loans held for sale		459			135			312			57
Securitized loans		2,272			4			2,273			71
Total loans managed		$	2,980,965		$	120,472		$	2,969,200		$	147,413

__________


⁽¹⁾	Represents the unpaid principal balance of loans held for investment, loans held for sale and securitized loans for which we are no longer accruing interest and loans 90 days or more delinquent which are continuing to accrue interest.

Qualifying Sales of Portfolio Securitizations

As we consolidate the substantial majority of our single-class MBS trusts, these portfolio securitization transactions do not qualify for sale treatment. Therefore, 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. We recognized net gains on portfolio securitizations of $34 million, $146 million and $26 million for the years ended December 31, 2012, 2011 and 2010, respectively. Proceeds from the initial sale of securities from portfolio securitizations were $672 million, $1.0 billion and $660 million for the years ended December 31, 2012, 2011 and 2010, 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.

Other Securitizations

We also completed other portfolio securitization transactions that did not qualify as sales during the year ended December 31, 2012 and were accounted for as secured borrowings. Proceeds from these transactions were $421 million and were recorded as long-term debt of Fannie Mae in our consolidated balance sheet. As of December 31, 2012, the fair value of trading securities underlying these transactions was $178 million, and the unpaid principal balance of mortgage loans of consolidated trusts underlying these transactions was $201 million. The related assets have been transferred to MBS trusts and are restricted solely for the purpose of servicing the related MBS. We did not complete any securitizations of this type during the years ended December 31, 2011 and 2010.

Mortgage Loans

12 Months Ended

Dec. 31, 2012

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans

We own both 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 HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and an allowance for loan losses. We report HFS loans at the lower of cost or fair value determined on a pooled basis, and record valuation changes in our consolidated statements of operations and comprehensive income (loss).

The following table displays our mortgage loans as of December 31, 2012 and 2011.



	As of December 31,
	2012												2011
	Of Fannie Mae				Of Consolidated Trusts				Total				Of Fannie Mae				Of Consolidated Trusts				Total
	(Dollars in millions)
Single-family		$	309,277			$	2,480,999			$	2,790,276			$	319,496			$	2,470,533			$	2,790,029
Multifamily		61,464				126,953				188,417				77,026				99,872				176,898
Total unpaid principal balance of mortgage loans		370,741				2,607,952				2,978,693				396,522				2,570,405				2,966,927
Cost basis and fair value adjustments, net		(14,805		)		44,313				29,508				(16,143		)		19,993				3,850
Allowance for loan losses for loans held for investment		(50,519		)		(8,276		)		(58,795		)		(57,309		)		(14,847		)		(72,156		)
Total mortgage loans		$	305,417			$	2,643,989			$	2,949,406			$	323,070			$	2,575,551			$	2,898,621

For the year ended December 31, 2012, we redesignated loans with a carrying value of $33 million from HFI to HFS. For the year ended December 31, 2011, we redesignated loans with a carrying value of $561 million from HFI to HFS. For the year ended December 31, 2010, we did not redesignate loans between HFI and HFS other than at the transition date.

Aging Analysis

The following tables display an aging analysis of the total recorded investment in our HFI mortgage loans, excluding loans for which we have elected the fair value option, by portfolio segment and class as of December 31, 2012 and 2011.



	As of December 31, 2012⁽¹⁾
	30 - 59 Days Delinquent			60 - 89 Days Delinquent			Seriously Delinquent⁽²⁾			Total Delinquent			Current		Total		Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest⁽³⁾			Recorded Investment in Nonaccrual Loans
	(Dollars in millions)
Single-family:
Primary⁽⁴⁾		$	39,043		$	13,513		$	67,737		$	120,293	$	2,424,022	$	2,544,315		$	2,162	$	78,822
Government⁽⁵⁾		82			40			340			462		50,408		50,870			340		—
Alt-A		6,009			2,417			22,181			30,607		121,099		151,706			502		24,048
Other⁽⁶⁾		2,613			1,053			8,527			12,193		57,336		69,529			297		9,209
Total single-family		47,747			17,023			98,785			163,555		2,652,865		2,816,420			3,301		112,079
Multifamily⁽⁷⁾		178			NA			428			606		190,445		191,051			—		2,214
Total		$	47,925		$	17,023		$	99,213		$	164,161	$	2,843,310	$	3,007,471		$	3,301	$	114,293



	As of December 31, 2011⁽¹⁾
	30 - 59 Days Delinquent			60 - 89 Days Delinquent			Seriously Delinquent⁽²⁾			Total Delinquent			Current		Total		Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest			Recorded Investment in Nonaccrual Loans
	(Dollars in millions)
Single-family:
Primary⁽⁴⁾		$	43,516		$	15,282		$	80,712		$	139,510	$	2,341,646	$	2,481,156		$	111	$	95,959
Government⁽⁵⁾		109			49			327			485		51,391		51,876			327		—
Alt-A		7,155			3,054			28,323			38,532		138,880		177,412			14		31,356
Other⁽⁶⁾		3,403			1,431			11,277			16,111		73,115		89,226			96		12,533
Total single-family		54,183			19,816			120,639			194,638		2,605,032		2,799,670			548		139,848
Multifamily⁽⁷⁾		210			NA			1,105			1,315		177,906		179,221			—		2,764
Total		$	54,393		$	19,816		$	121,744		$	195,953	$	2,782,938	$	2,978,891		$	548	$	142,612

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	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.


⁽³⁾	Includes loans with a recorded investment of $2.8 billion, which were repurchased in January 2013 pursuant to our resolution agreement with Bank of America. These loans were returned to accrual status to reflect the change in our assessment of collectibility resulting from this agreement, see “Note 20, Subsequent Events.”


⁽⁴⁾	Consists of mortgage loans that are not included in other loan classes.


⁽⁵⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A. Primarily consists of reverse mortgages which due to their nature are not aged and are included in the current column.


⁽⁶⁾	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁷⁾	Multifamily loans 60-89 days delinquent are included in the seriously delinquent column

Credit Quality Indicators

The following table displays the total recorded investment in our single-family HFI loans, excluding loans for which we have elected the fair value option, by class and credit quality indicator as of December 31, 2012 and 2011. The single-family credit quality indicator is updated quarterly.



	As of December 31,
	2012⁽¹⁾⁽²⁾							2011⁽¹⁾⁽²⁾
	Primary⁽³⁾		Alt-A		Other⁽⁴⁾			Primary⁽³⁾		Alt-A		Other⁽⁴⁾
	(Dollars in millions)
Estimated mark-to-market LTV ratio:⁽⁵⁾
Less than or equal to 80%	$	1,703,384	$	57,419		$	21,936	$	1,464,348	$	61,618		$	23,414
Greater than 80%and less than or equal to 90%	346,018		18,313			7,287		412,342		21,369			9,224
Greater than 90%and less than or equal to 100%	219,736		16,930			7,369		246,648		19,790			9,445
Greater than 100%and less than or equal to 110%	100,302		14,293			7,169		128,428		16,164			8,951
Greater than 110% and less than or equal to 120%	59,723		10,994			6,231		73,836		12,534			7,912
Greater than 120% and less than or equal to 125%	20,620		4,387			2,665		25,750		5,087			3,557
Greater than 125%	94,532		29,370			16,872		129,804		40,850			26,723
Total	$	2,544,315	$	151,706		$	69,529	$	2,481,156	$	177,412		$	89,226

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Excludes $50.9 billion and $51.9 billion as of December 31, 2012 and 2011, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV.


⁽³⁾	Consists of mortgage loans that are not included in other loan classes.


⁽⁴⁾	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁵⁾	The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates periodic changes in home value.

The following table displays the total recorded investment in our multifamily HFI loans, excluding loans for which we have elected the fair value option, by credit quality indicator as of December 31, 2012 and 2011. The multifamily credit quality indicator is updated quarterly.



	As of December 31,
	2012⁽¹⁾			2011⁽¹⁾
	(Dollars in millions)
Credit risk profile by internally assigned grade:⁽²⁾
Green		$	154,235		$	131,740
Yellow⁽³⁾		21,304			28,354
Orange		14,199			17,355
Red		1,313			1,772
Total		$	191,051		$	179,221

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).


⁽³⁾	Includes approximately $5.1 billion and $6.9 billion of unpaid principal balance as of December 31, 2012 and 2011, respectively, classified as yellow due to no available current financial information.

Individually Impaired Loans

Individually impaired loans include TDRs, acquired credit-impaired loans, and multifamily loans that we have assessed as probable that we will not collect all contractual amounts due, regardless of whether we are currently accruing interest. The following tables display the total recorded investment, unpaid principal balance, and related allowance as of December 31, 2012 and 2011 and interest income recognized and average recorded investment for the years ended December 31, 2012 and 2011 for individually impaired loans.



	As of December 31,
	2012										2011
	Unpaid Principal Balance			Total Recorded Investment⁽¹⁾			Related Allowance for Loan Losses		Related Allowance for Accrued Interest Receivable		Unpaid Principal Balance			Total Recorded Investment⁽¹⁾			Related Allowance for Loan Losses		Related Allowance for Accrued Interest Receivable
	(Dollars in millions)
Individually impaired loans:
With related allowance recorded:
Single-family:
Primary⁽²⁾		$	132,754		$	126,106	$	28,610	$	628		$	116,825		$	109,684	$	29,598	$	674
Government⁽³⁾		214			208		38		4			258			258		67		8
Alt-A		38,387			35,620		11,154		267			34,318			31,516		11,121		268
Other⁽⁴⁾		16,873			16,114		4,743		86			16,181			15,363		5,353		99
Total single-family		188,228			178,048		44,545		985			167,582			156,821		46,139		1,049
Multifamily		2,449			2,471		489		13			2,832			2,855		718		32
Total individually impaired loans with related allowance recorded		190,677			180,519		45,034		998			170,414			159,676		46,857		1,081

With no related allowance recorded:⁽⁵⁾
Single-family:
Primary⁽²⁾		16,222			13,901		—		—			9,370			6,471		—		—
Government⁽³⁾		104			104		—		—			25			17		—		—
Alt-A		3,994			2,822		—		—			3,056			1,538		—		—
Other⁽⁴⁾		1,218			977		—		—			680			367		—		—
Total single-family		21,538			17,804		—		—			13,131			8,393		—		—
Multifamily		2,056			2,068		—		—			1,759			1,771		—		—
Total individually impaired loans with no related allowance recorded		23,594			19,872		—		—			14,890			10,164		—		—
Total individually impaired loans⁽⁶⁾		$	214,271		$	200,391	$	45,034	$	998		$	185,304		$	169,840	$	46,857	$	1,081



	For the Year Ended December 31,
	2012									2011									2010
	Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis			Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis			Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis
	(Dollars in millions)
Individually impaired loans:
With related allowance recorded:
Single-family:
Primary⁽²⁾		$	115,767		$	4,077		$	654		$	100,797		$	3,735		$	733		$	81,258		$	3,314		$	1,470
Government⁽³⁾		216			11			—			229			12			—			141			9			—
Alt-A		32,978			1,048			151			29,561			982			186			25,361			897			407
Other⁽⁴⁾		15,593			444			65			14,431			435			90			12,094			384			204
Total single-family		164,554			5,580			870			145,018			5,164			1,009			118,854			4,604			2,081
Multifamily		2,535			125			2			2,430			103			5			1,496			202			10
Total individually impaired loans with related allowance recorded		167,089			5,705			872			147,448			5,267			1,014			120,350			4,806			2,091

With no related allowance recorded:⁽⁵⁾
Single-family:
Primary⁽²⁾		8,264			1,075			231			6,884			606			204			7,860			336			55
Government⁽³⁾		78			7			—			12			7			—			11			8			—
Alt-A		1,811			253			55			1,771			205			63			2,091			121			20
Other⁽⁴⁾		455			95			24			467			57			19			589			36			7
Total single-family		10,608			1,430			310			9,134			875			286			10,551			501			82
Multifamily		1,781			56			2			993			48			8			642			71			5
Total individually impaired loans with no related allowance recorded		12,389			1,486			312			10,127			923			294			11,193			572			87
Total individually impaired loans⁽⁶⁾		$	179,478		$	7,191		$	1,184		$	157,575		$	6,190		$	1,308		$	131,543		$	5,378		$	2,178

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁵⁾	The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.


⁽⁶⁾	Includes single-family loans restructured in a TDR with a recorded investment of $193.4 billion and $161.9 billion as of December 31, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $1.1 billion and $956 million as of December 31, 2012 and 2011, respectively.

⁽⁷⁾

Total single-family interest income recognized of $7.0 billion for the year ended December 31, 2012 consists of $5.3 billion of contractual interest and $1.7 billion of effective yield adjustments. Total single-family interest income recognized of $6.0 billion for the year ended December 31, 2011 consists of $4.5 billion of contractual interest and $1.6 billion of effective yield adjustments. Total single-family interest income recognized of $5.1 billion for the year ended December 31, 2010 consists of $3.9 billion of contractual interest and $1.3 billion of effective yield adjustments.

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 as TDRs loans to certain borrowers who have received bankruptcy relief.

The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. During the years ended December 31, 2012 and 2011, the average term extension of a single-family modified loan was 131 and 90 months, respectively, and the average interest rate reduction was 2.15 and 2.95 percentage points, respectively.

The following table displays the number of loans and recorded investment in loans restructured in a TDR for the years ended December 31, 2012 and 2011.



	For the Year Ended December 31,
	2012					2011
	Number of Loans		RecordedInvestment⁽¹⁾			Number of Loans		RecordedInvestment⁽¹⁾
	(Dollars in millions)
Single-family:
Primary⁽²⁾		270,913		$	39,527		160,227		$	28,329
Government⁽³⁾		394		50			497		86
Alt-A		50,572		9,116			33,416		7,108
Other⁽⁴⁾		15,484		3,489			14,724		3,644
Total single-family		337,363		52,182			208,864		39,167
Multifamily		46		324			47		223
Total troubled debt restructurings		337,409		$	52,506		208,911		$	39,390

__________

⁽¹⁾

Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Based on the nature of our modification programs, which do not include principal or past-due interest forgiveness, there is not a material difference between the recorded investment in our loans pre- and post- modification, therefore amounts represent recorded investment post-modification.


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

The following table displays the number of loans and recorded investment in loans that had a payment default for the years ended December 31, 2012 and 2011 and were modified in a TDR in the twelve months prior to the 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,
	2012					2011
	Number of Loans		RecordedInvestment ⁽¹⁾			Number of Loans		RecordedInvestment ⁽¹⁾
	(Dollars in millions)
Single-family:
Primary⁽²⁾		46,824		$	7,828		66,088		$	11,585
Government⁽³⁾		200		33			376		95
Alt-A		8,848		1,761			14,223		3,045
Other⁽⁴⁾		4,011		948			6,843		1,670
Total single-family		59,883		10,570			87,530		16,395
Multifamily		7		35			8		49
Total TDRs that subsequently defaulted		59,890		$	10,605		87,538		$	16,444

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Represents our recorded investment in the loan at time of payment default.


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2012

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Loan Losses

Allowance for Loan Losses and Reserve for Guaranty Losses

We maintain an allowance for loan losses for loans held for investment in our mortgage portfolio and loans backing Fannie Mae MBS issued from consolidated trusts and a reserve for guaranty losses related to loans backing Fannie Mae MBS issued from unconsolidated trusts and loans that we have guaranteed under long-term standby commitments. We refer to our allowance for loan losses and reserve for guaranty losses collectively as our combined loss reserves. When calculating our reserve for guaranty losses, we consider all contractually past due interest income including payments expected to be missed between the balance sheet date and the point of loan acquisition or foreclosure. When calculating our loan loss allowance, we consider only our net recorded investment in the loan at the balance sheet date, which includes interest income only while the loan was on accrual status.

The following table displays changes in single-family, multifamily and total allowance for loan losses for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012										2011										2010
	Of Fannie Mae			Of Consolidated Trusts				Total			Of Fannie Mae			Of Consolidated Trusts				Total			Of Fannie Mae			Of Consolidated Trusts				Total
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance, January 1	$	56,294			$	14,339		$	70,633		$	47,377			$	12,603		$	59,980		$	6,721			$	1,749		$	8,470
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				43,170			43,170
(Benefit) provision for loan losses⁽²⁾	(1,482		)		465			(1,017		)	13,940				11,683			25,623			12,923				11,592			24,515
Charge-offs⁽³⁾⁽⁴⁾	(14,055		)		(823		)	(14,878		)	(19,026		)		(1,772		)	(20,798		)	(15,438		)		(7,026		)	(22,464		)
Recoveries	1,632				152			1,784			3,636				1,636			5,272			1,913				1,164			3,077
Transfers⁽⁵⁾	6,437				(6,437		)	—			9,901				(9,901		)	—			44,599				(44,599		)	—
Other⁽⁶⁾	1,022				143			1,165			466				90			556			(3,341		)		6,553			3,212
Ending balance	$	49,848			$	7,839		$	57,687		$	56,294			$	14,339		$	70,633		$	47,377			$	12,603		$	59,980
Multifamily allowance for loan losses:
Beginning balance, January 1	$	1,015			$	508		$	1,523		$	1,153			$	423		$	1,576		$	1,357			$	98		$	1,455
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				406			406
(Benefit) provision for loan losses⁽²⁾	(131		)		(43		)	(174		)	140				151			291			144				43			187
Charge-offs⁽³⁾⁽⁴⁾	(261		)		—			(261		)	(372		)		—			(372		)	(414		)		—			(414		)
Transfers⁽⁵⁾	29				(29		)	—			79				(79		)	—			115				(115		)	—
Other⁽⁶⁾	19				1			20			15				13			28			(49		)		(9		)	(58		)
Ending balance	$	671			$	437		$	1,108		$	1,015			$	508		$	1,523		$	1,153			$	423		$	1,576
Total allowance for loan losses:
Beginning balance, January 1	$	57,309			$	14,847		$	72,156		$	48,530			$	13,026		$	61,556		$	8,078			$	1,847		$	9,925
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				43,576			43,576
(Benefit) provision for loan losses⁽²⁾	(1,613		)		422			(1,191		)	14,080				11,834			25,914			13,067				11,635			24,702
Charge-offs⁽³⁾⁽⁴⁾	(14,316		)		(823		)	(15,139		)	(19,398		)		(1,772		)	(21,170		)	(15,852		)		(7,026		)	(22,878		)
Recoveries	1,632				152			1,784			3,636				1,636			5,272			1,913				1,164			3,077
Transfers⁽⁵⁾	6,466				(6,466		)	—			9,980				(9,980		)	—			44,714				(44,714		)	—
Other⁽⁶⁾	1,041				144			1,185			481				103			584			(3,390		)		6,544			3,154
Ending balance	$	50,519			$	8,276		$	58,795		$	57,309			$	14,847		$	72,156		$	48,530			$	13,026		$	61,556

__________

⁽¹⁾

Upon recognition of the mortgage loans held by newly consolidated trusts and the associated accrued interest receivable at the transition date of our adoption of the consolidation accounting guidance on January 1, 2010, we increased our “Allowance for loan losses” by $43.6 billion, increased our “Allowance for accrued interest receivable” by $7.0 billion and decreased our “Reserve for guaranty losses” by $54.1 billion. The net decrease of $3.5 billion reflects the difference in the methodology used to estimate incurred losses for our allowance for loan losses and accrued interest receivable versus our reserve for guaranty losses.


⁽²⁾	(Benefit) provision for loan losses is included in benefit (provision) for credit losses in our consolidated statements of operations and comprehensive income (loss).


⁽³⁾	While we purchase the substantial majority of loans that are four or more months delinquent from our MBS trusts, we do not exercise this option to purchase loans during a forbearance period. Charge-offs of consolidated trusts generally represent loans that remained in our consolidated trusts at the time of default.

⁽⁴⁾

Total charge-offs include accrued interest of $872 million, $1.4 billion and $2.4 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Single-family charge-offs include accrued interest of $843 million, $1.4 billion and $2.3 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Multifamily charge-offs include accrued interest of $29 million, $46 million and $64 million for the years ended December 31, 2012, 2011 and 2010, respectively.


⁽⁵⁾	Includes transfers from trusts for delinquent loan purchases.

⁽⁶⁾

Amounts represent the net activity recorded in our allowances for accrued interest receivable and preforeclosure property taxes and insurance receivable from borrowers. The (benefit) provision for credit losses, charge-offs, recoveries and transfer activity included in this table reflects all changes for both the allowance for loan losses and the valuation allowances for accrued interest and preforeclosure property taxes and insurance receivable that relate to the mortgage loans.

As of December 31, 2012, the allowance for accrued interest receivable for loans of Fannie Mae was $1.5 billion and for loans of consolidated trusts was $192 million. As of December 31, 2011, the allowance for accrued interest receivable for loans of Fannie Mae was $2.2 billion and for loans of consolidated trusts was $336 million.

The following table displays the allowance for loan losses and total recorded investment in our HFI loans, excluding loans for which we have elected the fair value option, by impairment or reserve methodology and portfolio segment as of December 31, 2012 and 2011.



	As of December 31,
	2012							2011
	Single-Family		Multifamily			Total		Single-Family		Multifamily			Total
	(Dollars in millions)
Allowance for loan losses by segment:
Individually impaired loans⁽¹⁾	$	44,545		$	489	$	45,034	$	46,139		$	718	$	46,857
Collectively reserved loans	13,142			619		13,761		24,494			805		25,299
Total allowance for loan losses	$	57,687		$	1,108	$	58,795	$	70,633		$	1,523	$	72,156

Recorded investment in loans by segment:⁽²⁾
Individually impaired loans⁽¹⁾	$	195,852		$	4,539	$	200,391	$	165,214		$	4,626	$	169,840
Collectively reserved loans	2,620,568			186,512		2,807,080		2,634,456			174,595		2,809,051
Total recorded investment in loans	$	2,816,420		$	191,051	$	3,007,471	$	2,799,670		$	179,221	$	2,978,891

__________


⁽¹⁾	Includes acquired credit-impaired loans.


⁽²⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.

Reserve for Guaranty Losses

The following table displays changes in the reserve for guaranty losses for the years ended December 31, 2012, 2011, and 2010.



	For the Year Ended December 31,
		2012			2011			2010
		(Dollars in millions)
Reserve for guaranty losses:
Beginning balance, January 1		$	994		$	323		$	54,430
Adoption of consolidation accounting guidance		—			—			(54,103		)
Provision for guaranty losses		339			804			194
Charge-offs		(174		)	(138		)	(203		)
Recoveries		72			5			5
Ending balance, December 31		$	1,231		$	994		$	323

Investments in Securities

12 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

Investments in Securities

Trading Securities

Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss). The following table displays our investments in trading securities as of December 31, 2012 and 2011.



	As of December 31,
	2012		2011
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae	$	6,248	$	7,424
Freddie Mac	2,793		2,732
Ginnie Mae	437		287
Alt-A private-label securities	1,330		1,349
Subprime private-label securities	1,319		1,280
CMBS	9,826		10,411
Mortgage revenue bonds	675		724
Other mortgage-related securities	117		143
Total	22,745		24,350
Non-mortgage-related securities:
U.S. Treasury securities	17,950		47,737
Asset-backed securities	—		2,111
Total	17,950		49,848
Total trading securities	$	40,695	$	74,198

The following table displays information about our net trading gains and losses for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended
	December 31,
	2012				2011			2010
		(Dollars in millions)
Net trading gains (losses):
Mortgage-related securities		$	1,014		$	274			$	2,607
Non-mortgage-related securities		(10		)	(8		)		85
Total		$	1,004		$	266			$	2,692
Net trading gains (losses) recorded in the period related to securities still held at period end:
Mortgage-related securities		$	1,035		$	268			$	2,485
Non-mortgage-related securities		2			(1		)		56
Total		$	1,037		$	267			$	2,541

Available-for-Sale Securities

We measure AFS securities at fair value with unrealized gains and losses recorded net of tax as a component of “Other comprehensive income (loss)” and we record realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss).

The following table displays the gross realized gains, losses and proceeds on sales of AFS securities for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended
	December 31,
	2012		2011		2010
	(Dollars in millions)
Gross realized gains	$	40	$	182	$	566
Gross realized losses	16		90		293
Total proceeds⁽¹⁾	634		2,152		7,207

__________


⁽¹⁾	Excludes proceeds from the initial sale of securities from new portfolio securitizations included in “Note 2, Consolidations and Transfers of Financial Assets.”

The following tables display the amortized cost, gross unrealized gains and losses and fair value by major security type for AFS securities we held as of December 31, 2012 and 2011.



		As of December 31, 2012
	Total Amortized Cost ⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses - OTTI ⁽²⁾				Gross Unrealized Losses - Other ⁽³⁾				Total Fair Value
		(Dollars in millions)
Fannie Mae		$	9,580		$	871		$	—			$	(16	)	$	10,435
Freddie Mac		8,652			728			—				—			9,380
Ginnie Mae		645			106			—				—			751
Alt-A private-label securities		11,356			452			(637		)		(96		)	11,075
Subprime private-label securities		8,137			217			(669		)		(238		)	7,447
CMBS⁽⁴⁾		12,284			824			—				(11		)	13,097
Mortgage revenue bonds		7,782			157			(45		)		(52		)	7,842
Other mortgage-related securities		3,330			109			(18		)		(267		)	3,154
Total		$	61,766		$	3,464		$	(1,369	)		$	(680	)	$	63,181



		As of December 31, 2011
	Total Amortized Cost ⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses - OTTI ⁽²⁾				Gross Unrealized Losses - Other ⁽³⁾				Total Fair Value
		(Dollars in millions)
Fannie Mae		$	15,486		$	1,381		$	(3	)		$	(14	)	$	16,850
Freddie Mac		11,906			917			—				—			12,823
Ginnie Mae		775			127			—				—			902
Alt-A private-label securities		13,314			233			(1,618		)		(246		)	11,683
Subprime private-label securities		9,556			17			(1,534		)		(453		)	7,586
CMBS⁽⁴⁾		13,949			181			—				(104		)	14,026
Mortgage revenue bonds		10,172			202			(56		)		(64		)	10,254
Other mortgage-related securities		3,687			92			(39		)		(282		)	3,458
Total		$	78,845		$	3,150		$	(3,250	)		$	(1,163	)	$	77,582

__________


⁽¹⁾	Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments as well as the credit component of other-than-temporary impairments (“OTTI”) recognized in our consolidated statements of operations and comprehensive income (loss).


⁽²⁾	Represents the noncredit component of other-than-temporary impairments losses recorded in “Accumulated other comprehensive income (loss)” as well as cumulative changes in fair value of securities for which we previously recognized the credit component of other-than-temporary impairments.


⁽³⁾	Represents the gross unrealized losses on securities for which we have not recognized other-than-temporary impairments.


⁽⁴⁾	Amortized cost includes $527 million and $686 million as of December 31, 2012 and 2011, respectively, of increases to the carrying amount from previous fair value hedge accounting.

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 that we held as of December 31, 2012 and 2011.



		As of December 31, 2012
	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		$	(5	)	$	599		$	(11	)	$	372
Alt-A private-label securities		(18		)	541			(715		)	4,465
Subprime private-label securities		(14		)	243			(893		)	5,058
CMBS		—			—			(11		)	240
Mortgage revenue bonds		(3		)	127			(94		)	1,198
Other mortgage-related securities		(3		)	95			(282		)	1,529
Total		$	(43	)	$	1,605		$	(2,006	)	$	12,862

		As of December 31, 2011
	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		$	(4	)	$	519		$	(13	)	$	208
Alt-A private-label securities		(133		)	1,414			(1,731		)	6,525
Subprime private-label securities		(73		)	471			(1,914		)	6,686
CMBS		(20		)	1,458			(84		)	2,790
Mortgage revenue bonds		(4		)	114			(116		)	1,971
Other mortgage-related securities		(21		)	547			(300		)	1,588
Total		$	(255	)	$	4,523		$	(4,158	)	$	19,768

Other-Than-Temporary Impairments

We recognize the credit component of other-than-temporary impairments of our debt securities in “Net other-than-temporary impairments” and the noncredit component in “Other comprehensive income (loss)” in our consolidated statements of operations and comprehensive income (loss) for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery.

The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral and in the credit performance of the underlying issuer, among other factors. As of December 31, 2012, $2.0 billion of gross unrealized losses on AFS securities had existed for a period of 12 consecutive months or longer. Gross unrealized losses on AFS securities as of December 31, 2012 include unrealized losses on securities with other-than-temporary impairment in which a portion of the impairment remains in “Accumulated other comprehensive income (loss).” The securities with unrealized losses for 12 consecutive months or longer, on average, had a fair value as of December 31, 2012 that was 87% of their amortized cost basis. Based on our review for impairments of AFS securities, which includes an evaluation of the collectibility of cash flows and any intent or requirement to sell the securities, we have concluded that we do not have an intent to sell and we believe it is not more likely than not that we will be required to sell the securities. Additionally, our projections of cash flows indicate that we will recover these unrealized losses over the lives of the securities.

The following table displays our net other-than-temporary impairments by major security type recognized in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended
	December 31,
	2012			2011				2010⁽¹⁾
		(Dollars in millions)
Alt-A private-label securities		$	365		$	563			$	327
Subprime private-label securities		329			(303		)		368
Other		19			48				27
Net other-than-temporary impairments		$	713		$	308			$	722

__________


⁽¹⁾	Certain prior period amounts have been reclassified to conform to the current period presentation.

Net other-than-temporary impairments recorded in the year ended December 31, 2012 increased compared with the year ended December 31, 2011, driven primarily by an update to the assumptions used to project cash flow estimates on our Alt-A and subprime private-label securities. For additional information, refer to “Note 1, Summary of Significant Accounting Policies.”

The following table displays activity related to the unrealized credit component on debt securities held by us and recognized in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2012 and 2011. A related unrealized noncredit component has been recognized in “Other comprehensive income (loss).”



	For the Year Ended
	December 31,
	2012			2011
	(Dollars in millions)
Balance, January 1	$	8,915		$	8,215
Additions for the credit component on debt securities for which OTTI was not previously recognized	15			23
Additions for the credit component on debt securities for which OTTI was previously recognized	698			285
Reductions for securities no longer in portfolio at period end	(5		)	(7		)
(Reductions) additions for amortization resulting from changes in cash flows expected to be collected over the remaining life of the securities⁽¹⁾	(409		)	399
Balance, December 31	$	9,214		$	8,915

__________


⁽¹⁾	Amount includes out-of-period adjustment of $727 million in 2011 due to an overstatement of income and amortized cost.

As of December 31, 2012, those debt securities with other-than-temporary impairment for which we recognized the credit component of other-than-temporary impairments in our consolidated statements of operations and comprehensive income (loss) consisted predominantly of Alt-A and subprime private-label securities. We evaluate Alt-A (including option adjustable rate mortgage (“ARM”)) and subprime private-label securities for other-than-temporary impairment by discounting the projected cash flows from econometric models to estimate the portion of loss in value attributable to credit. Separate components of a third-party model project regional home prices, unemployment and interest rates. The model combines these factors with available current information regarding attributes of loans in pools backing the private-label mortgage-related securities to project prepayment speeds, conditional default rates, loss severities and delinquency rates. It incorporates detailed information on security-level subordination levels and cash flow priority of payments to project security level cash flows. We have recorded other-than-temporary impairments for the year ended December 31, 2012 based on this analysis. For securities we determined were not other-than-temporarily impaired, we concluded that either the bond had no projected credit loss or if we projected a loss, that the present value of expected cash flows was greater than the security’s cost basis.

The following table displays the modeled attributes, including default rates and severities, which are used to determine whether our senior interests in certain non-agency mortgage-related securities will experience a cash shortfall as of December 31, 2012. Assumption of voluntary prepayment rates is also an input to the present value of expected losses.



	As of December 31, 2012
				Alt-A
	Subprime			Option ARM				Fixed Rate				Variable Rate				Hybrid Rate
	(Dollars in millions)
Vintage Year
2004 & Prior:
Unpaid principal balance	$	1,404			$	438			$	2,836			$	431			$	1,955
Weighted average collateral default⁽¹⁾	39.9		%		37.3		%		12.8		%		26.6		%		16.3		%
Weighted average collateral severities⁽²⁾	69.0				60.0				53.7				53.0				47.1
Weighted average voluntary prepayment rates⁽³⁾	6.6				6.2				12.1				6.5				9.4
Average credit enhancement⁽⁴⁾	51.9				11.4				12.1				23.0				9.2
2005
Unpaid principal balance	$	136			$	1,171			$	1,015			$	467			$	2,058
Weighted average collateral default⁽¹⁾	66.5		%		51.0		%		36.6		%		46.7		%		33.3		%
Weighted average collateral severities⁽²⁾	74.3				66.1				64.5				62.7				54.7
Weighted average voluntary prepayment rates⁽³⁾	2.6				4.8				7.3				5.4				6.0
Average credit enhancement⁽⁴⁾	65.3				17.1				0.8				11.8				3.9
2006
Unpaid principal balance	$	10,543			$	995			$	464			$	1,400			$	1,434
Weighted average collateral default⁽¹⁾	69.2		%		65.2		%		38.3		%		51.8		%		30.9		%
Weighted average collateral severities⁽²⁾	76.4				67.4				66.4				63.4				55.3
Weighted average voluntary prepayment rates⁽³⁾	2.4				3.6				5.8				4.2				6.0
Average credit enhancement⁽⁴⁾	13.1				11.2				0.2				0.6				—
2007 & After:
Unpaid principal balance	$	570			$	—			$	—			$	—			$	101
Weighted average collateral default⁽¹⁾	64.6		%		N/A				N/A				N/A				37.1		%
Weighted average collateral severities⁽²⁾	66.9				N/A				N/A				N/A				57.2
Weighted average voluntary prepayment rates⁽³⁾	1.9				N/A				N/A				N/A				6.9
Average credit enhancement⁽⁴⁾	27.4				N/A				N/A				N/A				21.7
Total
Unpaid principal balance	$	12,653			$	2,604			$	4,315			$	2,298			$	5,548
Weighted average collateral default⁽¹⁾	65.8		%		54.1		%		21.1		%		46.0		%		26.8		%
Weighted average collateral severities⁽²⁾	75.2				65.6				57.6				61.3				52.2
Weighted average voluntary prepayment rates⁽³⁾	2.8				4.6				10.3				4.9				7.2
Average credit enhancement⁽⁴⁾	18.6				13.9				8.2				7.1				5.1

__________


⁽¹⁾	The expected remaining cumulative default rate of the collateral pool backing the securities, as a percentage of the current collateral unpaid principal balance, weighted by security unpaid principal balance.


⁽²⁾	The expected remaining loss given default of the collateral pool backing the securities, calculated as the ratio of remaining cumulative loss divided by cumulative defaults, weighted by security unpaid principal balance.


⁽³⁾	The average monthly voluntary prepayment rate, weighted by security unpaid principal balance.


⁽⁴⁾	The average percent current credit enhancement provided by subordination of other securities. Excludes excess interest projections and monoline bond insurance.

For mortgage revenue bonds, where we cannot utilize credit-sensitized cash flows, we perform a qualitative and quantitative analysis to assess whether a bond is other-than-temporarily impaired. If a bond is deemed to be other-than-temporarily impaired, the projected contractual cash flows of the security are reduced by a default loss amount based on the security’s lowest credit rating as provided by the major nationally recognized statistical rating organizations. The lower the security’s credit rating, the larger the amount by which the contractual cash flows are reduced. These adjusted cash flows are then used in the present value calculation to determine the credit portion of other-than-temporary impairments. While we have recognized other-than-temporary impairments on these bonds, we expect to realize no credit losses on the vast majority of our holdings due to the inherent financial strength of the issuers, or in some cases, the amount of external credit support from mortgage collateral or financial guarantees. The fair values of these bonds are impacted by the low levels of market liquidity and greater expected yield, which has led to unrealized losses in the portfolio that we deem to be temporary.

Other mortgage-related securities include manufactured housing securities, some of which have been other-than-temporarily impaired in 2012. For manufactured housing securities, we utilize models that incorporate recent historical performance information and other relevant public data to run cash flows and assess for other-than-temporary impairments. Given the significant seasoning of these securities we expect that the future performance will be in line with how the securities are currently performing. We model securities assuming the benefit of those external financial guarantees that are deemed creditworthy. If we determined that securities were not other-than-temporarily impaired, we concluded that either the bond had no projected credit loss or, if a loss was projected, that present value of expected cash flows was greater than the security’s cost basis.

We analyzed commercial mortgage-backed securities (“CMBS”) using a CMBS loss forecast model that incorporates a loan level loss forecast. This forecast takes into account loan performance, loan status, loan attributes, structures, metropolitan area, property type and macroeconomic expectations. Given the current high level of credit enhancement and collateral loss expectations, no single bond is expected to experience a principal write-down or interest shortfall. Our CMBS loss forecast expectations may change as macroeconomic conditions and the commercial real estate market evolve. As of December 31, 2012, we had no other-than-temporary impairments in our holdings of CMBS as we projected the remaining subordination to be more than sufficient to absorb the level of projected losses. While downgrades have occurred in this sector, all of our holdings remained investment grade as of December 31, 2012.

Maturity Information

The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining maturity, assuming no principal prepayments, as of December 31, 2012. 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, 2012
	Total Amortized Cost				Total Fair Value		One Year or Less						After One Year Through Five Years						After Five Years Through Ten Years						After Ten Years
	Total Amortized Cost				Total Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value
	(Dollars in millions)
Fannie Mae		$	9,580		$	10,435		$	—		$	—		$	85		$	90		$	847		$	899		$	8,648		$	9,446
Freddie Mac		8,652			9,380			2			2			79			83			786			845			7,785			8,450
Ginnie Mae		645			751			—			—			2			2			7			8			636			741
Alt-A private-label securities		11,356			11,075			—			—			—			—			178			183			11,178			10,892
Subprime private-label securities		8,137			7,447			—			—			—			—			—			—			8,137			7,447
CMBS		12,284			13,097			—			—			11,892			12,699			149			164			243			234
Mortgage revenue bonds		7,782			7,842			46			48			309			319			647			657			6,780			6,818
Other mortgage-related securities		3,330			3,154			—			—			—			8			2			2			3,328			3,144
Total		$	61,766		$	63,181		$	48		$	50		$	12,367		$	13,201		$	2,616		$	2,758		$	46,735		$	47,172
Weighted average yield⁽¹⁾		4.64		%				4.25		%				3.87		%				5.03		%				4.82		%

__________


⁽¹⁾	Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax exempt obligations have been computed on a tax equivalent basis.

Accumulated Other Comprehensive Income (Loss)

The following table displays our accumulated other comprehensive income (loss) by major categories as of December 31, 2012, 2011 and 2010.



	As of December 31,
	2012			2011				2010⁽¹⁾
	(Dollars in millions)
Net unrealized gains on available-for-sale securities for which we have not recorded OTTI, net of tax	$	1,399			$	1,152		$	304
Net unrealized losses on available-for-sale securities for which we have recorded OTTI, net of tax	(465		)		(1,953		)	(1,736		)
Prior service cost and actuarial gains, net of amortization for defined benefit plans, net of tax	(505		)		(389		)	(214		)
Other losses	(45		)		(45		)	(36		)
Accumulated other comprehensive income (loss)	$	384			$	(1,235	)	$	(1,682	)

__________


⁽¹⁾	Includes a net increase of $3.4 billion from the adoption of the consolidation accounting guidance.

The entire disclosure for investments in certain debt and equity securities.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Financial Guarantees

12 Months Ended

Dec. 31, 2012

Guarantees [Abstract]

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 guarantees expose us to credit losses on the mortgage loans or, in the case of mortgage-related securities, the underlying mortgage loans of the related securities. The contractual terms of our guarantees range from 30 days to 40 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.

For those guarantees recognized in our consolidated balance sheets, our maximum potential exposure under these guarantees is primarily comprised of the unpaid principal balance of the underlying mortgage loans, which totaled $50.6 billion and $59.4 billion as of December 31, 2012 and 2011, respectively.

In addition, we had maximum potential exposure of $8.3 billion and $9.3 billion for other guarantees not recognized in our consolidated balance sheets as of December 31, 2012 and 2011, respectively, which primarily represents the unpaid principal balance of loans underlying guarantees issued prior to January 1, 2010, the effective date of current accounting guidance on guaranty accounting.

The maximum amount we could recover through available credit enhancements and recourse with third parties on guarantees recognized in our consolidated balance sheets was $13.3 billion and $14.1 billion as of December 31, 2012 and 2011, respectively. The maximum amount we could recover through available credit enhancements and recourse with third parties on guarantees not recognized in our consolidated balance sheets was $3.6 billion and $4.0 billion as of December 31, 2012 and 2011, respectively. Recoverability of such credit enhancements and recourse is subject to, among other factors, our mortgage insurers’ and financial guarantors’ ability to meet their obligations to us.

Risk Characteristics of our Book of Business

We gauge our performance risk under our guaranty based on the delinquency status of the mortgage loans we hold in portfolio, or in the case of mortgage-backed securities, the mortgage loans underlying the related securities.

For single-family loans, management monitors the serious delinquency rate, which is the percentage of single-family loans 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.

For multifamily loans, management monitors the serious delinquency rate, which is the percentage of loans 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, original debt service coverage ratios (“DSCR”) below 1.10, current DSCR below 1.0, and high original and current estimated LTV ratios. We stratify multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan.

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 these 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.

The following tables display the current delinquency status and certain higher risk characteristics of our single-family conventional and total multifamily guaranty book of business as of December 31, 2012 and 2011.



	As of December 31,
	2012⁽¹⁾						2011⁽¹⁾
	30 Days Delinquent		60 Days Delinquent		Seriously Delinquent⁽²⁾		30 Days Delinquent		60 Days Delinquent		Seriously Delinquent⁽²⁾
Percentage of single-family conventional guaranty book of business⁽³⁾	1.75	%	0.63	%	3.66	%	1.98	%	0.73	%	4.47	%
Percentage of single-family conventional loans⁽⁴⁾	1.96		0.66		3.29		2.17		0.74		3.91



	As of December 31,
	2012⁽¹⁾				2011⁽¹⁾
	Percentage of Single-Family Conventional Guaranty Book of Business⁽³⁾		Percentage Seriously Delinquent⁽²⁾⁽⁵⁾		Percentage of Single-Family Conventional Guaranty Book of Business⁽³⁾		Percentage Seriously Delinquent⁽²⁾⁽⁵⁾
Estimated mark-to-market loan-to-value ratio:
Greater than 100%	13	%	13.42	%	18	%	13.76	%
Geographical distribution:
Arizona	2		2.14		2		3.65
California	19		1.69		19		2.46
Florida	6		10.06		6		11.80
Nevada	1		6.70		1		7.42
Select Midwest states⁽⁶⁾	10		3.51		10		4.39
All other states	62		2.85		62		3.18
Product distribution:
Alt-A	6		11.36		7		12.43
Subprime	*		20.60		*		23.18
Vintages:
2005	5		7.79		7		7.27
2006	5		12.15		7		11.81
2007	7		12.99		10		12.62
2008	5		6.63		7		5.64
All other vintages	78		1.36		69		1.59
Select combined risk characteristics:
Original LTV ratio > 90% and FICO score < 620	1		14.76		1		18.67

__________


*	Represents less than 0.5% of the single-family conventional guaranty book of business.


⁽¹⁾	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.


⁽²⁾	Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2012 and 2011.


⁽³⁾	Calculated based on the aggregate unpaid principal balance of single-family conventional loans for each category divided by the aggregate unpaid principal balance of loans in our single-family conventional guaranty book of business.


⁽⁴⁾	Calculated based on the number of single-family conventional loans that were delinquent divided by the total number of loans in our single-family conventional guaranty book of business.


⁽⁵⁾	Calculated based on the number of single-family conventional loans that were seriously delinquent divided by the total number of single-family conventional loans for each category included in our guaranty book of business.


⁽⁶⁾	Consists of Illinois, Indiana, Michigan, and Ohio.



	As of December 31,
	2012⁽¹⁾⁽²⁾				2011⁽¹⁾⁽²⁾
	30 Days Delinquent		Seriously Delinquent⁽³⁾		30 Days Delinquent		Seriously Delinquent⁽³⁾
Percentage of multifamily guaranty book of business	0.23	%	0.24	%	0.11	%	0.59	%



	As of December 31,
	2012⁽¹⁾				2011⁽¹⁾
	Percentage of Multifamily Guaranty Book of Business⁽²⁾		Percentage Seriously Delinquent⁽³⁾⁽⁴⁾		Percentage of Multifamily Guaranty Book of Business⁽²⁾		Percentage Seriously Delinquent⁽³⁾⁽⁴⁾
Original loan-to-value ratio:
Greater than 80%	4	%	0.36	%	5	%	2.51	%
Less than or equal to 80%	96		0.24		95		0.49
Original debt service coverage ratio:
Less than or equal to 1.10	8		0.22		8		0.24
Greater than 1.10	92		0.25		92		0.62
Current debt service coverage ratio less than 1.0⁽⁵⁾	5		2.11		7		3.66

__________


⁽¹⁾	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011 excluding loans that have been defeased.


⁽²⁾	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.


⁽³⁾	Consists of multifamily loans that were 60 days or more past due as of the dates indicated.


⁽⁴⁾	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 guaranty book of business.


⁽⁵⁾	Our estimates of current DSCRs are based on the latest available income information for these properties. Although we use the most recently available results of our multifamily borrowers, there is a lag in reporting, which typically can range from 6 to 12 months.

Fannie Mae MBS Included in Investments in Securities

For Fannie Mae MBS included in “Investments in securities” in our consolidated balance sheets, we do not eliminate or extinguish the guaranty arrangement because it is a contractual arrangement with the unconsolidated MBS trusts. We determine the fair value of Fannie Mae MBS based on observable market prices because most Fannie Mae MBS are actively traded. Fannie Mae MBS receive high credit quality ratings primarily because of our guaranty. Absent our guaranty, Fannie Mae MBS would be subject to the credit risk on the underlying loans. We continue to recognize a guaranty obligation and a reserve for guaranty losses associated with these securities because we carry these securities in our consolidated financial statements as guaranteed Fannie Mae MBS. The fair value of the guaranty obligation, net of deferred profit, associated with Fannie Mae MBS included in “Investments in securities” approximates the fair value of the credit risk that exists on these Fannie Mae MBS absent our guaranty. The fair value of our guaranty obligations associated with the Fannie Mae MBS included in “Investments in securities” was $1.8 billion and $2.2 billion as of December 31, 2012 and 2011, respectively.

Acquired Property Net

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

Acquired Property, Net

Acquired property, net consists of held-for-sale foreclosed property received in full satisfaction of a loan, net of a valuation allowance for declines in the fair value of the properties after initial acquisition. We classify properties as held for sale when we intend to sell the property and are actively marketing it for sale. The following table displays the activity in acquired property net of the related valuation allowance for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Beginning balance, January 1	$	11,373		$	16,173		$	9,142
Additions	16,292			18,049			25,199
Disposals	(16,629		)	(21,617		)	(16,237		)
Write-downs, net of recoveries	(547		)	(1,232		)	(1,931		)
Ending balance, December 31⁽¹⁾	$	10,489		$	11,373		$	16,173

__________


⁽¹⁾	Includes valuation allowance of $669 million, $1.0 billion and $1.9 billion for the years ended December 31, 2012, 2011 and 2010, respectively.

We classify as held for use those properties that we do not intend to sell or that are not ready for immediate sale in their current condition, which are reflected in “Other assets” in our consolidated balance sheets. The following table displays the activity and carrying amount of acquired properties held for use for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012				2011				2010
	(Dollars in millions)
Beginning balance, January 1		$	835			$	889			$	44
Transfers in from held for sale, net and additions		1,173				1,045				977
Transfers to held for sale, net		(748		)		(547		)		(64		)
Depreciation, asset write-downs, and other		(387		)		(552		)		(68		)
Ending balance, December 31		$	873			$	835			$	889

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 40
-Section 40
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6905009&loc=d3e18511-111553

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
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-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6905009&loc=d3e18551-111553

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6375948&loc=d3e4437-111522

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 35
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=16397438&loc=d3e1424-110224

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(4))
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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-URI http://asc.fasb.org/extlink&oid=16397438&loc=d3e1739-110224

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 10
-Subparagraph 4
-Article 9

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 11
-Article 9

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 2, 6, 9-11, 18, 20
-IssueDate 2006-05-01
-Chapter 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 11
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 28
-Article 12

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 10
-Subparagraph a, b
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph f
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-Name Statement of Financial Accounting Standard (FAS)
-Number 34
-Paragraph 9, 11, 12, 13, 14, 15, 21
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Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Short-Term Borrowings

The following table displays our outstanding short-term borrowings (borrowings with an original contractual maturity of one year or less) and weighted-average interest rates of these borrowings as of December 31, 2012 and 2011.



	As of December 31,
	2012						2011
	Outstanding			Weighted- Average Interest Rate⁽¹⁾			Outstanding			Weighted- Average Interest Rate⁽¹⁾
		(Dollars in millions)
Fixed-rate short-term debt:
Discount notes⁽²⁾		$	104,730		0.15	%		$	146,301		0.13	%
Foreign exchange discount notes⁽³⁾		503			1.61			371			1.88
Other⁽⁴⁾		—			—			80			0.04
Total short-term debt of Fannie Mae		105,233			0.16			146,752			0.13
Debt of consolidated trusts		3,483			0.15			4,973			0.09
Total short-term debt		$	108,716		0.16	%		$	151,725		0.13	%

__________


⁽¹⁾	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.


⁽²⁾	Represents unsecured general obligations with maturities ranging from overnight to 360 days from the date of issuance.

⁽³⁾

Represents foreign exchange discount notes we issue in the Euro commercial paper market with maturities ranging from 5 to 360 days which enable investors to hold short-term investments in different currencies. We do not incur foreign exchange risk on these transactions, as we simultaneously enter into foreign currency swaps that have the effect of converting debt that we issue in foreign denominated currencies into U.S. dollars.


⁽⁴⁾	Consists of foreign exchange discount notes denominated in U.S. dollars.

Intraday Lines of Credit

We periodically use secured and unsecured intraday funding lines of credit provided by several large financial institutions. We post collateral which, in some circumstances, the secured party has the right to repledge to third parties. As these lines of credit are uncommitted intraday loan facilities, we may be unable to draw on them if and when needed. We had secured uncommitted lines of credit of $15.0 billion and $25.0 billion as of December 31, 2012 and 2011, respectively. We had no borrowings outstanding from these lines of credit as of December 31, 2012. We had no unsecured, uncommitted lines of credit as of December 31, 2012 and $500 million as of December 31, 2011.

Long-Term Debt

Long-term debt represents borrowings with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt as of December 31, 2012 and 2011.



	As of December 31,
	2012						2011
	Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾		Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2013 - 2030		$	251,768	2.59	%	2012 - 2030		$	277,146	2.81	%
Medium-term notes⁽²⁾	2013 - 2022		172,288		1.35		2012 - 2021		176,886		1.61
Foreign exchange notes and bonds	2021 - 2028		694		5.44		2021 - 2028		662		5.44
Other⁽³⁾⁽⁴⁾	2013 - 2038		40,819		4.99		2012 - 2040		50,912		5.29
Total senior fixed			465,569		2.35				505,606		2.64
Senior floating:
Medium-term notes⁽²⁾	2013 - 2019		38,633		0.27		2012 - 2016		71,855		0.32
Other⁽³⁾⁽⁴⁾	2020 - 2037		365		8.22		2020 - 2037		420		8.01
Total senior floating			38,998		0.33				72,275		0.35
Subordinated fixed:
Qualifying subordinated⁽⁵⁾	2013 - 2014		2,522		5.00		2012 - 2014		4,894		5.08
Subordinated debentures	2019		3,197		9.92		2019		2,917		9.91
Total subordinated fixed			5,719		7.75				7,811		6.88
Secured borrowings⁽⁶⁾	2021 - 2022		345		1.87		—		—		—
Total long-term debt of Fannie Mae⁽⁷⁾			510,631		2.25				585,692		2.42
Debt of consolidated trusts⁽⁴⁾	2013 - 2052		2,570,170		3.36		2012 - 2051		2,452,455		4.18
Total long-term debt			$	3,080,801	3.18	%			$	3,038,147	3.84	%

__________


⁽¹⁾	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.


⁽²⁾	Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt.


⁽³⁾	Includes long-term debt that is not included in other debt categories.


⁽⁴⁾	Includes a portion of structured debt instruments that is reported at fair value.


⁽⁵⁾	Consists of subordinated debt issued with an interest deferral feature.


⁽⁶⁾	Represents our remaining liability resulting from the transfers of financial assets from our consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments.


⁽⁷⁾	Reported amounts include a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion and $9.2 billion as of December 31, 2012 and 2011, respectively.

Our long-term debt includes a variety of debt types. We issue both fixed and floating-rate medium-term notes with maturities greater than one year that are issued through dealer banks. We also offer Benchmark Notes and other bonds in large, regularly-scheduled issuances that provide increased efficiency, liquidity and tradability to the market. Additionally, we have issued notes and bonds denominated in several foreign currencies and are able to issue debt in numerous other currencies. We effectively convert all foreign currency-denominated transactions into U.S. dollars through the use of foreign currency swaps for the purpose of funding our mortgage assets.

Our 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.

Debt of Consolidated Trusts

Debt of consolidated trusts represents the amount of Fannie Mae MBS issued from consolidated trusts and held by third-party certificateholders.

Characteristics of Debt

As of December 31, 2012 and 2011, the face amount of our debt securities of Fannie Mae was $621.8 billion and $741.6 billion, respectively. As of December 31, 2012 and 2011, we had zero-coupon debt with a face amount of $120.7 billion and $165.8 billion, respectively, which had an effective interest rate of 0.93% and 0.68%, respectively.

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, 2012 and 2011 included $177.8 billion and $187.9 billion, respectively, of callable debt that could be redeemed in whole or in part at our option or the option of the investor any time on or after a specified date.

The following table displays the amount of our long-term debt as of December 31, 2012 by year of maturity for each of the years 2013 through 2017 and thereafter. The first column assumes that we pay off this debt at maturity or on the call date if the call has been announced, while the second column assumes that we redeem our callable debt at the next available call date.



	Long-Term Debt by Year of Maturity			Assuming Callable Debt Redeemed at Next Available Call Date
		(Dollars in millions)
2013		$	103,187		$	252,419
2014		95,040			111,089
2015		76,591			48,130
2016		53,872			34,077
2017		90,794			42,248
Thereafter		91,147			22,668
Total debt of Fannie Mae⁽¹⁾		510,631			510,631
Debt of consolidated trusts⁽²⁾		2,570,170			2,570,170
Total long-term debt⁽³⁾		$	3,080,801		$	3,080,801

__________


⁽¹⁾	Reported amount includes a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion.


⁽²⁾	Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time.


⁽³⁾	Includes a portion of structured debt instruments that is reported at fair value.

The following table displays the amount of our debt of Fannie Mae that was called and repurchased and the associated weighted-average interest rates for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012				2011			2010
	(Dollars in millions)
Debt called		$	200,713		$	201,651		$	289,770
Weighted-average interest rate of debt called		2.0		%	2.4		%	3.1		%
Debt repurchased		$	44		$	2,887		$	1,333
Weighted-average interest rate of debt repurchased		3.8		%	3.1		%	3.3		%

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments

Derivative instruments are an integral part of our strategy in managing interest rate risk. Derivative instruments may be privately negotiated contracts, which are often referred to as over-the-counter derivatives, or they may be listed and traded on an exchange. When deciding whether to use derivatives, we consider a number of factors, such as cost, efficiency, the effect on our liquidity, results of operations, and our overall interest rate risk management strategy. We use derivatives when we believe they will provide greater relative value or more efficient execution of our strategy than debt securities. 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 derivatives we use for interest rate risk management purposes consist primarily of contracts that fall into the following 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.

We enter into forward commitments to purchase mortgage loans and to purchase or sell mortgage-related securities that lock in the future delivery of these instruments at a fixed price or yield. Certain commitments to purchase mortgage loans and purchase or sell mortgage-related securities meet the criteria to be accounted for as derivatives. We typically settle the notional amount of our mortgage loan commitments that are accounted for as a derivative.

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, 2012 and 2011.



	As of December 31, 2012										As of December 31, 2011
	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	$	19,450	$	270		$	239,017	$	(18,237	)	$	30,950	$	102		$	155,807	$	(17,391	)
Receive-fixed	231,346		10,514			57,190		(200		)	170,668		8,118			59,027		(93		)
Basis	23,199		151			1,700		—			382		122			9,240		(44		)
Foreign currency	686		193			509		(45		)	581		155			451		(62		)
Swaptions:
Pay-fixed	33,050		102			36,225		(184		)	48,600		165			47,750		(194		)
Receive-fixed	15,970		3,572			36,225		(2,279		)	33,695		6,371			47,750		(3,238		)
Other⁽¹⁾	7,374		26			13		(1		)	8,214		52			75		—
Total gross risk management derivatives	331,075		14,828			370,879		(20,946		)	293,090		15,085			320,100		(21,022		)
Accrued interest receivable (payable)	—		1,242			—		(1,508		)	—		920			—		(1,238		)
Netting adjustment⁽²⁾	—		(15,791		)	—		22,046			—		(15,829		)	—		21,898
Total net risk management derivatives	$	331,075	$	279		$	370,879	$	(408	)	$	293,090	$	176		$	320,100	$	(362	)



Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	$	12,360	$	27	$	5,232	$	(8	)	$	9,710	$	73	$	422	$	—
Forward contracts to purchase mortgage-related securities	34,545		103		12,557		(23		)	32,707		309		2,570		(6		)
Forward contracts to sell mortgage-related securities	18,886		26		75,477		(266		)	1,370		3		54,656		(548		)
Total mortgage commitment derivatives	$	65,791	$	156	$	93,266	$	(297	)	$	43,787	$	385	$	57,648	$	(554	)
Derivatives at fair value	$	396,866	$	435	$	464,145	$	(705	)	$	336,877	$	561	$	377,748	$	(916	)

__________


⁽¹⁾	Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts that we account for as derivatives. The mortgage insurance contracts have payment provisions that are not based on a notional amount.

⁽²⁾

The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting agreements to settle with the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $6.3 billion and $6.8 billion as of December 31, 2012 and 2011, respectively. No cash collateral was received as of December 31, 2012 and $779 million was received as of December 31, 2011.

A majority of our derivative instruments contain provisions that require our senior unsecured debt to maintain a minimum credit rating from S&P and Moody’s. If our senior unsecured debt were to fall below established thresholds in our derivatives agreements, which range from A+ to BBB+, we could be required to provide additional collateral to or terminate transactions with certain counterparties. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position as of December 31, 2012 was $6.4 billion, for which we posted collateral of $6.3 billion in the normal course of business. Had all of the credit-risk-related contingency features underlying these agreements been triggered, an additional $159 million of collateral would have been required to be posted as collateral or to immediately settle our positions based on the individual agreements and our fair value position as of December 31, 2012.

The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position as of December 31, 2011 was $7.2 billion, for which we posted collateral of $6.8 billion in the normal course of business. Had all of the credit risk-related contingency features underlying these agreements been triggered, an additional $362 million would have been required to be posted as collateral or to immediately settle our positions based on the individual agreements and our fair value position as of December 31, 2011.

We record all derivative gains and losses, including accrued interest, in “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss). The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	(6,681	)	$	(18,040	)	$	(17,573	)
Receive-fixed	4,052			7,939			14,382
Basis	99			86			17
Foreign currency	75			156			157
Swaptions:
Pay-fixed	132			860			(2,026		)
Receive-fixed	410			2,932			3,327
Other⁽¹⁾	(25		)	(72		)	(91		)
Total risk management derivatives fair value losses, net	(1,938		)	(6,139		)	(1,807		)
Mortgage commitment derivatives fair value losses, net	(1,688		)	(423		)	(1,193		)
Total derivatives fair value losses, net	$	(3,626	)	$	(6,562	)	$	(3,000	)

__________


⁽¹⁾	Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts.

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 obtain a replacement derivative from a different counterparty at a higher cost or may be unable to find a suitable replacement. We manage our counterparty credit exposure mainly through master netting arrangements which allow us to net derivative assets and liabilities with the same counterparty and by requiring counterparties to post collateral, which includes cash, U.S. Treasury securities, agency debt and agency mortgage-related securities.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax

Income Taxes

We operate as a government-sponsored enterprise. We are subject to federal income tax, but we are exempt from state and local income taxes.

Deferred Tax Assets and Liabilities

We recognize deferred tax assets and liabilities for future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under GAAP and their respective tax bases, and for net operating loss carryforwards and tax credit carryforwards. We evaluate the recoverability of our deferred tax assets, weighing all positive and negative evidence, and are required to establish or maintain a valuation allowance for these assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which the evidence can be objectively verified. If negative evidence exists, positive evidence is necessary to support a conclusion that a valuation allowance is not needed.

Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, including:


•	the sustainability of recent profitability required to realize the deferred tax assets;


•	the cumulative net losses in our consolidated statements of operations 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 carryforward periods for net operating losses and tax credits.

As of December 31, 2012, we have concluded that it is more likely than not that our deferred tax asset will not be realized in its entirety and that therefore we should retain the valuation allowance against our net deferred tax assets. The valuation allowance as of December 31, 2012 was $58.9 billion. Giving more weight to evidence that could be objectively verified than to evidence that could not be objectively verified, we determined that the factors in favor of releasing the allowance were outweighed by the evidence against releasing the valuation allowance. The factors that weighed against releasing the allowance as of December 31, 2012 and ultimately outweighed the factors in favor of releasing the reserve discussed below were the following:


•	on a cumulative basis, we reported losses in our consolidated statements of operations for the three-years ended December 31, 2012;


•	the impact of a reduction in funds available to us under the senior preferred stock purchase agreement that would have resulted from releasing the valuation allowance during the three months ended December 31, 2012, which we discuss below;


•	stability in the housing market is relatively recent and home prices, while improving, are still well below their peak, which results in uncertainty regarding our projections of future credit losses;


•	the uncertainty surrounding the future of our company given we are in conservatorship; and


•	we have a limited recent history of profitability and a large number of delinquent loans in our book of business.

Under the terms of the senior preferred stock purchase agreement, the amount of funding available to us after December 31, 2012 is adjusted based on our positive net worth as of December 31, 2012 and is not affected by any positive net worth we may have on future dates. Accordingly, the amount of funding available under the senior preferred stock purchase agreement will be reduced only to the extent that we draw funds from Treasury under the agreement in the future. A decision to release the valuation allowance in 2013 will not reduce the funding available to us under the senior preferred stock purchase agreement.

Releasing the valuation allowance during the three months ended December 31, 2012 would have decreased our available funding under the senior preferred stock purchase agreement to approximately $84 billion, compared to approximately $118 billion of available funding that resulted from not releasing the valuation allowance in the fourth quarter.

There was significant uncertainty regarding the effects that an approximately $34 billion reduction in the funds available to us under the senior preferred stock purchase agreement would have had on our business and financial results, including regulatory actions that would limit our business operations to ensure safety and soundness of the company, particularly in view of the fact that stability in the housing market and improvements in our financial results are relatively recent. This uncertainty was a significant consideration in our determination not to release the valuation allowance as of December 31, 2012.

In addition, it is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. We utilize a rolling three years of pre-tax income or loss as the primary measure of cumulative losses in recent years. Over the three years ended December 31, 2012, we remain in a cumulative loss position. However, we expect that as of the three months ended March 31, 2013, we will report income for the fifth consecutive quarter and we will show cumulative profits for the past twelve quarters.

The following factors weighed in favor of releasing the allowance as of December 31, 2012:


•	our 2012 profitability and our expectations regarding the sustainability of profits;


•	the strong credit profile of the loans we have acquired since 2009;


•	the significant size of our guaranty book of business and our contractual rights for future revenue from this book of business;


•	our taxable income for 2012 and our expectations regarding the likelihood of future taxable income; and


•	the carryforward periods for our net operating losses and tax credits.

We will continue to evaluate the recoverability of our deferred tax assets. Our evaluation in future quarters will be made by reviewing all relevant factors as of the end of those periods including the factors discussed above to the extent applicable. Releasing all or a portion of the valuation allowance after December 31, 2012 will not reduce the funding available to us under the senior preferred stock purchase agreement as discussed above. In addition, we expect that, for the three months ended March 31, 2013, we will no longer be in a three-year cumulative loss position. Accordingly, although we have not completed the analysis, we believe that, after considering all relevant factors, we may release the valuation allowance as early as the three months ended March 31, 2013.

If we reverse all or a significant portion of our valuation allowance in a future period we would record a material tax benefit in net income reflecting the reversal. This tax benefit would increase our net worth as of the end of the period in which we record it and, as a result, the amount of the dividend we will be required to pay Treasury in the following quarter pursuant to the terms of the senior preferred stock purchase agreement. This tax benefit would also result in a large negative effective tax rate in the period in which the valuation allowance is released.

In addition, if all or a significant portion of the valuation allowance is reversed, our effective tax rate will approach the statutory tax rate after the year in which the reversal is recorded. Our recorded effective tax rate has been at or close to zero since we established our valuation allowance because our provision or benefit for income taxes, as it relates to the change in the deferred tax asset balance, has been offset by a corresponding decrease or increase to our valuation allowance.

The following table displays our deferred tax assets, deferred tax liabilities, and valuation allowance as of December 31, 2012 and 2011.



		As of December 31,
		2012				2011
	(Dollars in millions)
Deferred tax assets:
Allowance for loan losses and basis in acquired property, net			$	26,263			$	29,935
Mortgage and mortgage-related assets			14,912				12,358
Debt and derivative instruments			5,450				6,562
Partnership credits			5,933				5,473
Partnership and other equity investments			1,610				1,809
Unrealized losses on AFS securities, net			—				442
Net operating loss and alternative minimum tax credit carryforwards			2,586				5,904
Other, net			2,084				2,053
Total deferred tax assets			58,838				64,536
Deferred tax liabilities:
Unrealized gains on AFS securities, net			496				—
Other, net			—				23
Total deferred tax liabilities			496				23
Valuation allowance			(58,851		)		(64,080		)
Net deferred tax (liabilities) assets			$	(509	)		$	433

As of December 31, 2012, we had $8.3 billion of net operating loss carryforwards that expire in 2030 through 2031, $1.5 billion of capital loss carryforwards that expire in 2014 through 2017, $5.9 billion of partnership tax credit carryforwards that expire in various years through 2031, and $344 million of alternative minimum tax credit carryforwards that have an indefinite carryforward period.

Benefit for Income Taxes

The following table displays the components of our benefit for federal income taxes for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Current income tax benefit		$	—		$	90		$	82
Deferred income tax benefit ⁽¹⁾		—			—			—
Benefit for federal income taxes		$	—		$	90		$	82

__________


⁽¹⁾	Amount excludes the income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).”

During 2011, we received a refund of $1.1 billion from the IRS related to the carryback of our 2009 operating loss to the 2008 and 2007 tax years. In addition, we effectively settled our 2007 and 2008 tax years with the IRS and, as a result, we recognized an income tax benefit of $90 million in our consolidated statements of operations and comprehensive loss for 2011.

The following table displays the difference between our effective tax rates and the statutory federal tax rates for the years ended December 31, 2012, 2011 and 2010, respectively.



	For the Year Ended December 31,
	2012				2011				2010
Statutory corporate tax rate		35.0		%		35.0		%		35.0		%
Tax-exempt interest		(0.7	)			0.9				1.3
Equity investments in affordable housing projects		(3.9	)			4.8				6.3
Other		0.2				1.0				0.1
Valuation allowance		(30.6	)			(41.2	)			(42.1	)
Effective tax rate		—		%		0.5		%		0.6		%

Our effective tax rate is the benefit for federal income taxes expressed as a percentage of income or loss before federal income taxes. Our effective tax rate was different from the federal statutory rate of 35% for the year ended December 31, 2012 due primarily to the decrease to our valuation allowance for our net deferred tax assets that resulted in the recognition of $5.3 billion in our benefit for income taxes, fully offset by a corresponding decrease in our deferred tax assets. Our effective tax rates were different from the federal statutory rate of 35% for the years ended December 31, 2011 and 2010 due primarily to the increase to our valuation allowance for our net deferred tax assets that resulted in the recognition of $7.0 billion and $5.9 billion, respectively, in our provision for income taxes, fully offset by a corresponding increase in our deferred tax assets in each period. Our effective tax rate for the year ended December 31, 2011 was further impacted by the release of a portion of the valuation allowance for deferred tax assets resulting from a settlement agreement reached with the IRS for our unrecognized tax benefits for the tax years 2007 through 2008.

Unrecognized Tax Benefits

We had $648 million, $758 million, and $864 million of unrecognized tax benefits as of December 31, 2012, 2011 and 2010, respectively. Of these amounts, we had $60 million as of December 31, 2010 that was resolved favorably in 2011 and reduced our effective tax rate in 2011. There are no unrecognized tax benefits as of December 31, 2012 and 2011 that would reduce our effective tax rate in future periods. As of December 31, 2012 and 2011, we had no accrued interest payable related to unrecognized tax benefits. As of December 31, 2010, we had accrued interest payable related to unrecognized tax benefits of $5 million. For the years ended December 31, 2012 and 2011, we had no interest expense related to unrecognized tax benefits and did not have any tax expense related to tax penalties. For the year ended 2010, we had total interest expense related to unrecognized tax benefits of $2 million and did not have any tax expense related to tax penalties.

The IRS is currently examining our federal income tax returns related to the 2009 and 2010 tax years. In 2011, we effectively settled our federal income tax returns for the tax years 2007 and 2008 with the IRS, which resulted in a $105 million reduction in our gross balance of unrecognized tax benefits. In 2010, we and the IRS appeals division reached an agreement for all issues related to the tax years 1999 through 2004, which resulted in a $99 million reduction in our gross balance of unrecognized tax benefits for the tax years 1999 through 2004.

The following table displays the changes in our unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010, respectively.



	For the Year Ended December 31,
	2012				2011				2010
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$	758			$	864			$	911
Gross increases—tax positions in prior years		—				1				83
Gross decreases—tax positions in prior years		(110		)		(2		)		(31		)
Settlements		—				(105		)		(99		)
Unrecognized tax benefits as of December 31⁽¹⁾		$	648			$	758			$	864

__________


⁽¹⁾	Amounts exclude tax credits and net operating losses of $648 million, $758 million and $804 million as of December 31, 2012, 2011 and 2010, respectively.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Earnings (Loss) Per Share

Earnings Per Share (Notes)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

The following table displays the computation of basic and diluted loss per share of common stock for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars and shares in millions, except per share amounts)
Net income (loss)	$	17,220		$	(16,855	)	$	(14,018	)
Less: Net loss attributable to noncontrolling interest	4			—			4
Net income (loss) attributable to Fannie Mae	17,224			(16,855		)	(14,014		)
Preferred stock dividends	(11,603		)	(9,614		)	(7,704		)
Undistributed earnings available for distribution to senior preferred stockholder	(4,224		)	—			—
Net income (loss) attributable to common stockholders	$	1,397		$	(26,469	)	$	(21,718	)
Weighted-average common shares outstanding—Basic⁽¹⁾	5,762			5,737			5,694
Convertible preferred stock	131			—			—
Weighted-average common shares outstanding—Diluted⁽¹⁾	5,893			5,737			5,694
Earnings (loss) per share:
Basic	$	0.24		$	(4.61	)	$	(3.81	)
Diluted	$	0.24		$	(4.61	)	$	(3.81	)

__________


⁽¹⁾	Includes 4.7 billion for the year ended December 31, 2012, and 4.6 billion for both the years ended December 31, 2011 and 2010 of weighted-average shares of common stock, that would be issued upon the full exercise of the warrant issued to Treasury from the date the warrant was issued through December 31, 2012, 2011 and 2010, respectively.

In 2012, the terms of the senior preferred stock purchase agreement were amended to ultimately require the payment of our entire net worth to Treasury. Although the calculation of earnings per share presented above and on our consolidated statements of operations and comprehensive income (loss) reflects basic and diluted earnings of $0.24 attributable to common stockholders for the year ended December 31, 2012, such amounts are not available to common stockholders under the amended terms of the senior preferred stock purchase agreement.

There was no impact to the numerator of our diluted EPS calculation from the dilutive convertible preferred stock for the year ended December 31, 2012.

Weighted-average options and performance awards to purchase approximately 3 million, 5 million and 8 million shares of common stock were outstanding for the years ended December 31, 2012, 2011 and 2010, respectively, and were excluded from the computation of diluted EPS in the table above as they would have been anti-dilutive.

Employee Retirement Benefits

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Employee Retirement Benefits

We sponsor both defined benefit plans and defined contribution plans for our employees, as well as a healthcare plan that provides certain health benefits for retired employees and their dependents. Net periodic benefit costs for defined benefit and healthcare plans, which are determined on an actuarial basis, and expenses for our defined contribution plans, are included in “Salaries and employee benefits expense” in our consolidated statements of operations and comprehensive income (loss). For the years ended December 31, 2012, 2011 and 2010, we recognized net periodic benefit costs for our defined benefit and healthcare plans and expenses for our defined contribution plans of $133 million, $118 million and $112 million, respectively.

Defined Benefit Pension Plans and Postretirement Health Care Plan

Our defined benefit pension plans include qualified and nonqualified noncontributory plans. Pension plan benefits are based on years of credited service and a percentage of eligible compensation. In 2007, the defined benefit pension plans were amended to cease benefits accruals for employees that did not meet certain criteria to be grandfathered under the plan and to vest those employees in their frozen accruals.

We fund our qualified pension plan through employer contributions to a qualified irrevocable trust that is maintained for the sole benefit of plan participants and their beneficiaries. Contributions to our qualified pension plan are subject to a minimum funding requirement and maximum funding limit under the Employee Retirement Income Security Act of 1974 (“ERISA”) and IRS regulations.

Our nonqualified defined benefit pension plans consist of an Executive Pension Plan, Supplemental Pension Plan and the Supplemental Pension Plan of 2003. These plans cover certain employees and supplement the benefits payable under the qualified pension plan. The Executive Pension Plan was frozen in 2009. Benefits under the Executive Pension Plan are paid through a rabbi trust.

The Supplemental Pension Plan provides retirement benefits to employees who participate in our qualified pension plan and do not receive a benefit from the Executive Pension Plan, and whose salary exceeds the statutory compensation cap applicable to the qualified plan or whose benefit is limited by the statutory benefit cap. The Supplemental Pension Plan of 2003 provides additional benefits to our officers based on eligible incentive compensation, if any, received by an officer, but the amount of incentive compensation considered is limited to 50% of the officer’s base salary. We pay benefits under our unfunded defined benefit Supplemental Pension Plans from our cash and cash equivalents.

We also sponsor a postretirement Health Care Plan that covers substantially all regular full-time employees who meet the applicable age and service requirements. We subsidize premium costs for medical coverage for some employees who meet the age and service requirements. Employees hired after 2007 receive access to our retiree medical plan, when eligible, but they do not qualify for the subsidy. We accrue and pay the benefits for our unfunded postretirement Health Care Plan from our cash and cash equivalents.

The following table displays components of our net periodic benefit cost for our qualified and nonqualified pension plans and other postretirement plan for the years ended December 31, 2012, 2011 and 2010. The net periodic benefit cost for each period is calculated based on assumptions at the end of the prior year.



	For the Year Ended December 31,
	2012								2011								2010
					Other Post-								Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan				Plans				Plan
	(Dollars in millions)
Service cost		$	37			$	6			$	39			$	6			$	37			$	6
Interest cost		72				9				72				9				66				9
Expected return on plan assets		(73		)		—				(69		)		—				(60		)		—
Other		30				(3		)		12				(7		)		9				(2		)
Net periodic benefit cost		$	66			$	12			$	54			$	8			$	52			$	13

Prior service costs, which are changes in benefit obligations due to plan amendments, are amortized over the average remaining service period for active employees for our pension plans and prior to the full eligibility date for the other postretirement Health Care Plan.

The following table displays the changes in the pre-tax and after-tax amounts recognized in AOCI that have not been recognized as a component of net periodic benefit cost for the years ended December 31, 2012 and 2011.



	For the Year Ended
	2012								2011
					Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan
	(Dollars in millions)
Actuarial Loss:
Beginning balance, January 1		$	393			$	36			$	218			$	42
Current year actuarial loss (gain)		135				8				184				(5		)
Amortization		(29		)		(1		)		(9		)		(1		)
Ending balance, December 31		499				43				393				36
Prior Service Cost (Credit):
Beginning balance, January 1		$	4			$	(46	)		$	6			$	(56	)
Prior service credit due to curtailments		—				—				—				5
Amortization		(1		)		6				(2		)		5
Ending balance, December 31		3				(40		)		4				(46		)
Transition Obligation:
Beginning balance, January 1		$	—			$	2			$	—			$	4
Amortization		—				(2		)		—				(2		)
Ending balance, December 31		—				—				—				2
Pre-tax and after-tax amount recorded in AOCI		$	502			$	3			$	397			$	(8	)

As of December 31, 2012 we expect to recognize pre-tax amounts in AOCI of $42 million in net periodic benefit costs associated with our pension plans and $3 million in net periodic benefit credits associated with our other postretirement plan in 2013.

The following table displays the status of our pension and other postretirement plans as of December 31, 2012 and 2011.



	As of December 31,
	2012								2011
					Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan
	(Dollars in millions)
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year		$	1,452			$	183			$	1,257			$	180
Service cost		37				6				39				6
Interest cost		72				9				72				9
Plan participants’ contributions		—				2				—				2
Net actuarial loss (gain)		198				9				131				(1		)
Curtailment gain		—				—				(14		)		(5		)
Benefits paid		(35		)		(8		)		(33		)		(8		)
Projected benefit obligation at end of year		1,724				201				1,452				183
Change in Plan Assets:
Fair value of plan assets at beginning of year		1,042				—				942				—
Actual return on plan assets		136				—				2				—
Employer contributions		84				6				131				6
Plan participants’ contributions		—				2				—				2
Benefits paid		(35		)		(8		)		(33		)		(8		)
Fair value of plan assets at end of year		1,227				—				1,042				—
Funded status at end of year⁽¹⁾		$	(497	)		$	(201	)		$	(410	)		$	(183	)

__________


⁽¹⁾	Included in other liabilities of our consolidated balance sheets as of December 31, 2012 and 2011.

Actuarial gains or losses reflect annual changes in the amount of either the benefit obligation or the fair value of plan assets that result from the difference between actual experience and projected amounts or from changes in assumptions.

The accumulated benefit obligation for our pension plans was $1.6 billion and $1.3 billion as of December 31, 2012 and 2011, respectively.

Contributions to the qualified pension plan increase the plan assets while contributions to the unfunded plans are made to fund current period benefit payments or to fulfill annual funding requirements. We were not required to make minimum contributions to our qualified pension plan for each of the years in the three-year period ended December 31, 2012 since we met the minimum funding requirements as prescribed by ERISA. However, we did make a discretionary contribution to our qualified pension plan of $76 million, $124 million and $42 million during 2012, 2011 and 2010, respectively.

During 2012, we contributed $76 million to our qualified pension plan, $8 million to our nonqualified pension plans and $6 million to our other postretirement benefit plan. During 2013, we anticipate contributing $48 million to our benefit plans, consisting of $31 million to our qualified pension plan, $9 million to our nonqualified pension plans and $8 million to our other postretirement plan.

The fair value of plan assets of our funded qualified pension plan was less than our accumulated benefit obligation by $140 million and $100 million as of December 31, 2012 and 2011, respectively. There were no plan assets returned to us as of April 2, 2013 and we do not expect any plan assets to be returned to us during the remainder of 2013.

Assumptions

Pension and other postretirement benefit amounts recognized in our consolidated financial statements are determined on an actuarial basis using several different assumptions that are measured as of December 31, 2012, 2011 and 2010. The following table displays the actuarial assumptions for our plans used in determining the net periodic benefit costs and the projected and accumulated benefit obligations as of December 31, 2012, 2011 and 2010.



	As of December 31,
	Pension Benefits						Postretirement Benefits
	2012		2011		2010		2012		2011		2010
Weighted-average assumptions used to determine net periodic benefit costs:
Discount rate	4.95	%	5.65	%	6.10	%	4.75	%	5.40	%	5.75	%
Average rate of increase in future compensation	4.00		4.00		4.00
Expected long-term weighted-average rate of return on plan assets	7.00		7.25		7.50
Weighted-average assumptions used to determine benefit obligation at year-end:
Discount rate	4.15	%	4.95	%	5.65	%	4.05	%	4.75	%	5.40	%
Average rate of increase in future compensation	4.00		4.00		4.00
Health care cost trend rate assumed for next year:
Pre-65							7.50	%	8.00	%	8.00	%
Post-65							7.50		8.00		8.00
Rate that cost trend rate gradually declines to and remains at:							5.00		5.00		5.00
Year that rate reaches the ultimate trend rate							2018		2018		2018

As of December 31, 2012, the effect of a 1% increase in the assumed health care cost trend rate would change the accumulated postretirement benefit obligation by $8 million. The effect of a 1% decrease in the assumed health care cost trend rate would change the accumulated postretirement benefit obligation by $11 million.

We review our pension and other postretirement benefit plan assumptions on an annual basis. We calculate the net periodic benefit cost each year based on assumptions established at the end of the previous calendar year, unless we remeasure as a result of a curtailment. In determining our net periodic benefit costs, we assess the discount rate to be used in the annual actuarial valuation of our pension and other postretirement benefit obligations at year-end. We consider the current yields on high-quality, corporate fixed-income debt instruments with maturities corresponding to the expected duration of our benefit obligations and supported by cash flow matching analysis based on expected cash flows specific to the characteristics of our plan participants, such as age and gender. As of December 31, 2012, the discount rate used to determine our obligation decreased by 80 basis points for pension and 70 basis points for postretirement, reflecting a corresponding rate decrease in corporate-fixed income debt instruments during 2012. We also assess the long-term rate of return on plan assets for our qualified pension plan. The return on asset assumption reflects our expectations for plan-level returns over a term of approximately seven to ten years. Given the longer-term nature of the assumption and a stable investment policy, it may or may not change from year to year. However, if longer-term market cycles or other economic developments impact the global investment environment, or asset allocation changes are made, we may adjust our assumption accordingly. Changes in assumptions used in determining pension and other postretirement benefits resulted in an increase in benefit cost of $22 million, $17 million, and $4 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Qualified Pension Plan Assets

The following table displays our qualified pension plan assets by asset category at their fair value as of December 31, 2012 and 2011. The fair value of assets in Level 1 have been determined based on quoted prices of identical assets in active markets as of year end, while the fair value of assets in Level 2 have been determined based on the net asset value per share of the investments as of year end. None of the fair values for plan assets were determined by using significant unobservable inputs, or Level 3.



	Fair Value Measurement as of December 31,
	2012								2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Total
	(Dollars in millions)
Cash equivalents		$	—		$	16	$	16		$	—		$	22	$	22
Equity securities:
U.S. large-cap⁽¹⁾		405			—		405			353			—		353
U.S. mid/small cap⁽²⁾		105			—		105			91			—		91
International⁽³⁾		—			215		215			—			167		167
Fixed income securities:
Investment grade credit⁽⁴⁾		—			486		486			—			409		409
Total plan assets at fair value		$	510		$	717	$	1,227		$	444		$	598	$	1,042

__________


⁽¹⁾	Consists of a publicly traded equity index fund that tracks the S&P 500.


⁽²⁾	Consists of a publicly traded equity index fund that tracks all regularly traded U.S. stocks except those in the S&P 500.


⁽³⁾	Consists of an international equity fund that tracks an index of approximately 6,100 and 6,400 securities for 2012 and 2011, respectively, across over 40 countries. United Kingdom has the largest share with 15% and 16% in 2012 and 2011, respectively.


⁽⁴⁾	Consists of a bond fund that tracks a broadly diversified investment grade index that consists of approximately 3,600 and 3,000 issuances of investment grade bonds for 2012 and 2011, respectively, from diverse industries. International markets represent 19% and 20% of the fund in 2012 and 2011, respectively.

Our investment strategy is to diversify our plan assets in order to reduce our concentration risk, reflect the plan’s profile over time, and maintain an asset allocation that allows us to meet current and future benefit obligations. The assets of the qualified pension plan consist of exchange-listed stocks, held in broadly diversified index funds. We also invest in a broadly diversified indexed fixed income account. In addition, the plan holds liquid short-term investments that provide for monthly pension payments, plan expenses and, from time to time, may represent uninvested contributions or reallocation of plan assets. The target allocations for plan assets are from 55% to 65% for equity securities, 35% to 45% for fixed income securities and up to 2% for all other types of investments. The plan fiduciary periodically assesses our asset allocation to ensure it is consistent with our plan objective.

Expected Benefit Payments

The following table displays the benefits we expect to pay in each of the next five years and in the aggregate for the subsequent five years for our pension plans and other postretirement plan and are based on the same assumptions used to measure our benefit obligation as of December 31, 2012.



	Expected Retirement Plan Benefit Payments
				Other Postretirement Benefits
	Pension Benefits			Before Medicare Part D Subsidy			Medicare Part D Subsidy
	(Dollars in millions)
2013		$	40		$	8		$	1
2014		44			8			1
2015		49			9			1
2016		54			9			1
2017		59			10			1
2018 — 2022		405			64			6

Defined Contribution Plans

Retirement Savings Plan

The Retirement Savings Plan is a defined contribution plan that includes a 401(k) before-tax feature, a regular after-tax feature and a Roth after-tax feature. Under the plan, eligible employees may allocate investment balances to a variety of investment options.

We match employee contributions in cash up to 6% of eligible compensation (base salary, overtime pay and eligible incentive compensation) for employees who are not active in our defined benefit pension plan and up to 3% of eligible compensation (base salary only) for employees who are active in our defined benefit pension plan. Matching contributions for employees who are not active in our defined benefit pension plan are 100% vested and matching contributions for employees who are active in our defined benefit pension plan are fully vested after 5 years of service.

All employees, with the exception of those who participated in the Executive Pension Plan, receive a 2% contribution regardless of employee contributions to this plan. Participants are fully vested in this 2% contribution after three years of service.

The maximum employee contribution as established by the IRS was $17,000 for the year ended December 31, 2012 and $16,500 for the years ended December 31, 2011 and 2010, with additional “catch-up” contributions permitted for participants aged 50 and older of $5,500.

There was no option to invest directly in our common stock for the years ended December 31, 2012, 2011 and 2010. We recorded expense for this plan of $53 million, $55 million and $47 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Supplemental Retirement Savings Plan

The Supplemental Retirement Savings Plan is an unfunded, nonqualified defined contribution plan. This plan supplements our Retirement Savings Plan to provide benefits to employees who are not grandfathered under our defined benefit pension plan and whose annual eligible earnings exceed the IRS annual limit on eligible compensation for 401(k) plans.

We credit to the plan 8% of a participant’s eligible compensation that exceeds the IRS annual limit of $250,000 in 2012. Eligible compensation consists of base salary plus eligible incentive compensation earned, if any, up to a combined maximum of two times base salary. The 8% credit consists of (1) a 6% credit that vests immediately, and (2) a 2% credit that vests after three years of service.

The entire disclosure for pension and other postretirement benefits.

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Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

Our three reportable segments are: Single-Family, Multifamily, and Capital Markets. We use these three segments to generate revenue and manage business risk, and each segment is based on the type of business activities it performs. Under our segment reporting, the sum of the results for our three business segments does not equal our consolidated statements of operations and comprehensive income (loss), as we separate the activity related to our consolidated trusts from the results generated by our three segments. We also include an eliminations/adjustments category to reconcile our business segment financial results and the activity related to our consolidated trusts to net income (loss) in our consolidated statements of operations and comprehensive income (loss).

The section below provides a discussion of the three business segments and how each segment’s financial information reconciles to our consolidated financial statements.

Single-Family

Revenue for our Single-Family business is from the guaranty fees the segment receives as compensation for assuming the credit risk on the mortgage loans underlying single-family Fannie Mae MBS, most of which are held within consolidated trusts, and on the single-family mortgage loans held in our mortgage portfolio. The primary source of profit for the Single-Family segment is the difference between the guaranty fees earned and the costs of providing the guaranty, including credit-related losses.

Our segment reporting presentation differs from our consolidated balance sheets and statements of operations and comprehensive income (loss) in order to reflect the activities and results of the Single-Family segment. The significant differences from the consolidated statements of operations and comprehensive income (loss) are as follows:

•

Guaranty fee income—Guaranty fee income reflects the cash guaranty fees paid by MBS trusts to Single-Family, the amortization of deferred cash fees (both the previously recorded deferred cash fees that were eliminated from our consolidated balance sheets at transition and deferred guaranty fees received subsequent to transition that are currently recognized in our consolidated financial statements through interest income), such as buy-ups, buy-downs, and risk-based pricing adjustments, and the guaranty fees from the Capital Markets group on single-family loans in our mortgage portfolio. To reconcile to our consolidated statements of operations and comprehensive income (loss), we eliminate guaranty fees and the amortization of deferred cash fees related to consolidated trusts as they are now reflected as a component of interest income; however, such accounting continues to be reflected for the segment reporting presentation.

•

Net interest income (loss)—Net interest loss within the Single-Family segment reflects interest expense to reimburse Capital Markets and consolidated trusts for contractual interest not received on mortgage loans, when interest income is no longer recognized in accordance with our nonaccrual accounting policy in our consolidated statements of operations and comprehensive income (loss). Net interest income (loss), also includes an allocated cost of capital charge among the three segments that is not included in net interest income in the consolidated statement of operations and comprehensive income (loss).

Multifamily

The primary sources of revenue for our Multifamily business are guaranty fees the segment receives as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS, most of which are held within consolidated trusts, guaranty fees on the multifamily mortgage loans held in our mortgage portfolio, transaction fees associated with the multifamily business and bond credit enhancement fees. Investments in rental and for-sale housing generate revenue and losses from operations and the eventual sale of the assets. While the Multifamily guaranty business is similar to our Single-Family business, neither the economic return nor the nature of the credit risk is similar to that of Single-Family.

Our segment reporting presentation differs from our consolidated balance sheets and statements of operations and comprehensive income (loss) in order to reflect the activities and results of the Multifamily segment. The significant differences from the consolidated statements of operations and comprehensive income (loss) are as follows:


•	Guaranty fee income—Guaranty fee income reflects the cash guaranty fees paid by MBS trusts to Multifamily and the guaranty fees from the Capital Markets group on multifamily loans in Fannie Mae’s portfolio. To reconcile to our consolidated statements of operations and comprehensive income (loss), we eliminate guaranty fees related to consolidated trusts.

•

Gains (losses) from partnership investments—Gains (losses) from partnership investments primarily reflect gains or losses on investments in affordable rental and for-sale housing partnerships measured under the equity method of accounting. To reconcile to our consolidated statements of operations and comprehensive income (loss), we adjust the gains or losses to reflect the consolidation of certain partnership investments.

Capital Markets Group

Our Capital Markets group generates most of its revenue from the difference, or spread, between the interest we earn on our mortgage assets and the interest we pay on the debt we issue to fund these assets. We refer to this spread as our net interest yield. Changes in the fair value of the derivative instruments and trading securities we hold impact the net income or loss reported by the Capital Markets group. The net income or loss reported by our Capital Markets group is also affected by the impairment of AFS securities.

Our segment reporting presentation differs from our consolidated balance sheets and statements of operations and comprehensive income (loss) in order to reflect the activities and results of the Capital Markets group. The significant differences from the consolidated statements of operations and comprehensive income (loss) are as follows:

•

Net interest income—Net interest income reflects the interest income on mortgage loans and securities owned by Fannie Mae and interest expense on funding debt issued by Fannie Mae, including accretion and amortization of any cost basis adjustments. To reconcile to our consolidated statements of operations and comprehensive income (loss), we adjust for the impact of consolidated trusts and intercompany eliminations as follows:

•

Interest income: Interest income consists of interest on the segment’s interest-earning assets, which differs from interest-earning assets in our consolidated balance sheets. We exclude loans and securities that underlie the consolidated trusts from our Capital Markets group balance sheets. The net interest income reported by the Capital Markets group excludes the interest income earned on assets held by consolidated trusts. As a result, we report interest income and amortization of cost basis adjustments only on securities and loans that are held in our portfolio. For mortgage loans held in our portfolio, when interest income is no longer recognized in accordance with our nonaccrual accounting policy, the Capital Markets group recognizes interest income for reimbursement from Single-Family and Multifamily for the contractual interest due under the terms of our intracompany guaranty arrangement.

•

Interest expense: Interest expense consists of contractual interest on the Capital Markets group’s interest-bearing liabilities, including the accretion and amortization of any cost basis adjustments. It excludes interest expense on debt issued by consolidated trusts. Therefore, the interest expense recognized on the Capital Markets group income statement is limited to our funding debt, which is reported as “Debt of Fannie Mae” in our consolidated balance sheets. Net interest expense also includes an allocated cost of capital charge among the three business segments that is not included in net interest income in our consolidated statements of operations and comprehensive income (loss).


•	Investment gains or losses, net—Investment gains or losses, net reflects the gains and losses on securitizations and sales of available-for-sale securities from our portfolio. To reconcile to our consolidated statements of operations and comprehensive income (loss), we eliminate gains and losses on securities that have been consolidated to loans.

•

Fair value gains or losses, net—Fair value gains or losses, net for the Capital Markets group includes derivative gains and losses, foreign exchange gains and losses, and the fair value gains and losses on certain debt securities in our portfolio. To reconcile to our consolidated statements of operations and comprehensive income (loss), we eliminate fair value gains or losses on Fannie Mae MBS that have been consolidated to loans.

•

Other expenses, net—Debt extinguishment gains or losses recorded on the segment statements of operations relate exclusively to our funding debt, which is reported as “Debt of Fannie Mae” in our consolidated balance sheets. To reconcile to our consolidated statements of operations and comprehensive income (loss), we include debt extinguishment gains or losses related to consolidated trusts to arrive at our total recognized debt extinguishment gains or losses.

Segment Allocations and Results

Our business segment financial results include directly attributable revenues and expenses. Additionally, we allocate to each of our segments: (1) capital using FHFA minimum capital requirements adjusted for over- or under-capitalization; (2) indirect administrative costs; and (3) a provision or benefit for federal income taxes. In addition, we allocate intracompany guaranty fee income as a charge from the Single-Family and Multifamily segments to Capital Markets for managing the credit risk on mortgage loans held by the Capital Markets group.

The following tables display our business segment financial results for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31, 2012
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(790	)		$	(13	)	$	13,241			$	7,156				$	1,907		⁽³⁾	$	21,501
Benefit for credit losses	672				180			—				—					—				852
Net interest (loss) income after benefit for credit losses	(118		)		167			13,241				7,156					1,907				22,353
Guaranty fee income (expense)	8,151				1,040			(1,291		)		(4,737		)	⁽⁴⁾		(2,951		)	⁽⁴⁾	212			⁽⁴⁾
Investment gains (losses), net	8				37			6,217				(1		)			(5,774		)	⁽⁵⁾	487
Net other-than-temporary impairments	—				—			(711		)		(2		)			—				(713		)
Fair value losses, net	(8		)		—			(3,041		)		(313		)			385			⁽⁶⁾	(2,977		)
Debt extinguishment (losses) gains, net	—				—			(277		)		33					—				(244		)
Gains from partnership investments	—				123			—				—					(4		)		119			⁽⁷⁾
Fee and other income (expense)	759				207			717				(395		)			(13		)		1,275
Administrative expenses	(1,590		)		(269		)	(508		)		—					—				(2,367		)
Foreclosed property income	247				7			—				—					—				254
Other expenses	(1,079		)		(5		)	(22		)		—					(73		)		(1,179		)
Income before federal income taxes	6,370				1,307			14,325				1,741					(6,523		)		17,220
(Provision) benefit for federal income taxes	(80		)		204			(124		)		—					—				—
Net income	6,290				1,511			14,201				1,741					(6,523		)		17,220
Less: Net loss attributable to noncontrolling interest	—				—			—				—					4			⁽⁸⁾	4
Net income attributable to Fannie Mae	$	6,290			$	1,511		$	14,201			$	1,741				$	(6,519	)		$	17,224



	For the Year Ended December 31, 2011
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(2,411	)		$	(38	)	$	13,920			$	5,765				$	2,045		⁽³⁾	$	19,281
Provision for credit losses	(26,453		)		(265		)	—				—					—				(26,718		)
Net interest (loss) income after provision for credit losses	(28,864		)		(303		)	13,920				5,765					2,045				(7,437		)
Guaranty fee income (expense)	7,507				884			(1,497		)		(4,486		)	⁽⁴⁾		(2,181		)	⁽⁴⁾	227			⁽⁴⁾
Investment (losses) gains, net	(2		)		18			3,711				(315		)			(2,906		)	⁽⁵⁾	506
Net other-than-temporary impairments	—				—			(306		)		(2		)			—				(308		)
Fair value losses, net	(7		)		—			(6,596		)		(226		)			208			⁽⁶⁾	(6,621		)
Debt extinguishment (losses) gains, net	—				—			(254		)		22					—				(232		)
Gains from partnership investments	—				81			—				—					—				81			⁽⁷⁾
Fee and other income (expense)	579				218			478				(329		)			(10		)		936
Administrative expenses	(1,638		)		(264		)	(468		)		—					—				(2,370		)
Foreclosed property expense	(765		)		(15		)	—				—					—				(780		)
Other (expenses) income	(857		)		25			(34		)		—					(81		)		(947		)
(Loss) income before federal income taxes	(24,047		)		644			8,954				429					(2,925		)		(16,945		)
Benefit (provision) for federal income taxes	106				(61		)	45				—					—				90
Net (loss) income attributable to Fannie Mae	$	(23,941	)		$	583		$	8,999			$	429				$	(2,925	)		$	(16,855	)



	For the Year Ended December 31, 2010
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(5,386	)		$	3		$	14,321			$	5,073				$	2,398		⁽³⁾	$	16,409
Provision for credit losses	(24,740		)		(156		)	—				—					—				(24,896		)
Net interest (loss) income after provision for credit losses	(30,126		)		(153		)	14,321				5,073					2,398				(8,487		)
Guaranty fee income (expense)	7,206				791			(1,440		)		(4,525		)	⁽⁴⁾		(1,830		)	⁽⁴⁾	202			⁽⁴⁾
Investment gains (losses), net	9				6			4,047				(418		)			(3,298		)	⁽⁵⁾	346
Net other-than-temporary impairments	—				—			(720		)		(2		)			—				(722		)
Fair value gains (losses), net	—				—			239				(155		)			(595		)	⁽⁶⁾	(511		)
Debt extinguishment losses, net	—				—			(459		)		(109		)			—				(568		)
Losses from partnership investments	—				(70		)	—				—					(4		)		(74		)	⁽⁷⁾
Fee and other income (expense)	306				146			519				(88		)			(1		)		882
Administrative expenses	(1,628		)		(384		)	(585		)		—					—				(2,597		)
Foreclosed property expense	(1,680		)		(38		)	—				—					—				(1,718		)
Other (expenses) income	(836		)		(68		)	125				—					(74		)		(853		)
(Loss) income before federal income taxes	(26,749		)		230			16,047				(224		)			(3,404		)		(14,100		)
Benefit (provision) for federal income taxes	69				(14		)	27				—					—				82
Net (loss) income	(26,680		)		216			16,074				(224		)			(3,404		)		(14,018		)
Less: Net loss attributable to noncontrolling interest	—				—			—				—					4			⁽⁸⁾	4
Net (loss) income attributable to Fannie Mae	$	(26,680	)		$	216		$	16,074			$	(224	)			$	(3,400	)		$	(14,014	)

__________


⁽¹⁾	Represents activity related to the assets and liabilities of consolidated trusts in our consolidated balance sheets.


⁽²⁾	Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our consolidated results.


⁽³⁾	Represents the amortization expense of cost basis adjustments on securities that we own in our portfolio that on a GAAP basis are eliminated.

⁽⁴⁾

Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee income is included in fee and other income in our consolidated statements of operations and comprehensive income (loss).

⁽⁵⁾

Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale securities that are issued by consolidated trusts and retained in the Capital Markets portfolio. The adjustment also includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio securitization transactions that do not qualify for sale accounting under GAAP.


⁽⁶⁾	Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are retained in the Capital Markets portfolio.


⁽⁷⁾	Gains (losses) from partnership investments are included in other expenses in our consolidated statements of operations and comprehensive income (loss).


⁽⁸⁾	Represents the adjustment from equity method accounting to consolidation accounting for partnership investments that are consolidated in our consolidated balance sheets.

The following table displays total assets by segment as of December 31, 2012 and 2011.



	As of December 31,
	2012			2011
	(Dollars in millions)
Single-Family	$	17,595		$	11,822
Multifamily	5,182			5,747
Capital Markets	723,217			836,700
Consolidated trusts	2,749,571			2,676,952
Eliminations/adjustments	(273,143		)	(319,737		)
Total assets	$	3,222,422		$	3,211,484

We operate our business solely in the United States and its territories, and accordingly, we generate no revenue from and have no assets in geographic locations other than the United States and its territories.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Equity (Deficit)

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Equity (Deficit)

Common Stock

Shares of common stock outstanding, net of shares held as treasury stock, totaled 1.2 billion as of December 31, 2012 and 2011.

During the 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 “Senior Preferred Stock and Common Stock Warrant” section of this note.

Preferred Stock

The following table displays our senior preferred stock and preferred stock outstanding as of December 31, 2012 and 2011.



		Issued and Outstanding as of December 31,												Annual Dividend Rate as of December 31, 2012
		2012				2011				Stated Value per Share
Title	Issue Date	Shares		Amount		Shares		Amount		Stated Value per Share						Redeemable on or After
(Dollars and shares in millions, except per share amounts)
Senior Preferred Stock
Series 2008-2	September 8, 2008		1	$	117,149		1	$	112,578		$	117,149	⁽¹⁾	10.000	%⁽²⁾	N/A	⁽³⁾
Total			1	$	117,149		1	$	112,578

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			0.230	⁽⁴⁾	March 31, 2002	⁽⁵⁾
Series G	August 8, 2000		6	288			6	288			50			0.080	⁽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 Variable Liquidation Preference agreement with Treasury, the Stated Value per share on December 31, 2012 was $117,149.


⁽²⁾	Rate effective September 9, 2008 through December 31, 2012.

⁽³⁾

Any liquidation preference of our senior preferred stock in excess of $1.0 billion may be repaid through an issuance of common or preferred stock. The initial $1.0 billion liquidation preference may be repaid only in conjunction with termination of the senior preferred stock purchase agreement. The provisions for termination under the senior preferred stock purchase agreement are very restrictive and cannot occur while we are in conservatorship.


⁽⁴⁾	Rate effective March 31, 2012. Variable dividend rate resets every two years at a per annum rate equal to the two-year Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year. As of December 31, 2012, the annual dividend rate was 0.23%.


⁽⁵⁾	Represents initial call date. Redeemable every two years thereafter.


⁽⁶⁾	Rate effective September 30, 2012. 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. As of December 31, 2012, the annual dividend rate was 0.08%.


⁽⁷⁾	Rate effective December 31, 2012. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.00% or 10-year CMT rate plus 2.375%. As of December 31, 2012, the annual dividend rate was 7.00%.


⁽⁸⁾	Issued and outstanding shares were 24,922 as of December 31, 2012 and 2011, respectively.


⁽⁹⁾	Rate effective December 31, 2012. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.50% or 3-Month LIBOR plus 0.75%. As of December 31, 2012, the annual dividend rate was 4.50%.


⁽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, 2012. 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%. As of December 31, 2012, the annual dividend rate was 7.75%.


⁽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 one million shares in the amount of $25 million on June 4, 2008 under the same terms as the initial issuance.

As described under “Senior Preferred Stock and Common Stock Warrant” we issued senior preferred stock that ranks senior to all other series of preferred stock as to both dividends and distributions upon dissolution, liquidation or winding up of the company. During the conservatorship, the rights and powers of preferred stockholders (other than holders of senior preferred stock) are suspended. 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, 2012 or 2011.

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.

Conversions of Preferred Stock to Common Stock

During 2011, 38,669,995 shares of common stock were issued upon conversion of 21,493,217 shares of 8.75% Non-Cumulative Mandatory Convertible Preferred Stock, Series 2008-1 at the option of the holders pursuant to the terms of the preferred stock. In May 2011, the mandatory conversion date, 36,398,449 shares of common stock were issued upon the mandatory conversion of all remaining outstanding shares (20,018,947 shares) of 8.75% Non-Cumulative Mandatory Convertible Preferred Stock, Series 2008-1, in accordance with its terms. In 2010, 2,867,318 shares of Mandatory Convertible Series 2008-1 were converted to 4,417,947 shares of common stock.

Senior Preferred Stock and Common Stock Warrant

On September 8, 2008, we issued one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2 (“senior preferred stock”), 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 in consideration for the initial commitment from Treasury to provide up to $100.0 billion in cash to us under the terms set forth in the senior preferred stock purchase agreement prior to subsequent amendments. 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 (deficit) 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. The liquidation preference of the senior preferred stock is subject to adjustment. To the extent dividends payable in any period are not paid in cash, the dividends will accrue and be added to the liquidation preference of the senior preferred stock. In addition, any amounts paid by Treasury to us pursuant to Treasury’s funding commitment provided in the senior preferred stock purchase agreement and any quarterly commitment fee payable under the senior preferred stock purchase agreement that is not paid in cash to or waived by Treasury will be added to the liquidation preference of the senior preferred stock. As of April 2, 2013 we have received a total of $116.1 billion under Treasury’s funding commitment.

Treasury, as holder of the senior preferred stock, is entitled to receive, when, as and if declared by our Board of Directors, out of legally available funds, cumulative quarterly cash dividends. Dividends declared and paid on our senior preferred stock were $11.6 billion, $9.6 billion and $7.7 billion for the years ended December 31, 2012, 2011and 2010, respectively. Effective January 1, 2013, the amount of dividends payable on the senior preferred stock for a dividend period are determined based on our net worth as of the end of the immediately preceding fiscal quarter. Our net worth as defined by the agreement is 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 in respect of capital stock), in each case as reflected in our balance sheets prepared in accordance with GAAP. For each dividend period from January 1, 2013 through and including December 31, 2017, the dividend amount will be 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 capital reserve amount is $3.0 billion during 2013 and will be reduced by $600 million each year until it reaches zero on January 1, 2018. Our first quarter 2013 dividend on the senior preferred stock of $4.2 billion was declared by the conservator and paid by us on March 29, 2013. For each dividend period beginning in 2018, the dividend amount will be the entire amount of our net worth, if any, as of the end of the immediately preceding fiscal quarter.

As a result of these revised dividend payment provisions, beginning in 2013, when we have quarterly earnings that result in a net worth greater than the applicable capital reserve amount, we will pay dividends to Treasury in the next quarter; but if our net worth does not exceed the applicable capital reserve amount as of the end of a quarter, then we will not be required to accrue or pay any dividends in the next quarter.

The senior preferred stock ranks prior to our common stock and all other outstanding series of our preferred stock as to both dividends and rights upon liquidation. 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 without the prior written consent of Treasury. Shares of the senior preferred stock are not convertible. Shares of the senior preferred stock have no general or special voting rights, other than those set forth in the certificate of designation for the senior preferred stock or otherwise required by law. The consent of holders of at least two-thirds of all outstanding shares of senior preferred stock is generally required to amend the terms of the senior preferred stock or to create any class or series of stock that ranks prior to or on parity with the senior preferred stock.

We are not permitted to redeem the senior preferred stock in full prior to the termination of Treasury’s funding commitment under the senior preferred stock purchase agreement. However, we are permitted to pay down the liquidation preference of the outstanding shares of senior preferred stock to the extent of (1) accrued 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 the extent we issue any shares of capital stock for cash at any time the senior preferred stock is outstanding (which requires Treasury’s approval), we are required to use the net proceeds of the issuance to pay down the liquidation preference of the senior preferred stock; however, the liquidation preference of each share of senior preferred stock may not be paid down below $1,000 per share prior to the termination of Treasury’s funding commitment. Following the termination of Treasury’s funding commitment, we may pay down the liquidation preference of all outstanding shares of senior preferred stock at any time, in whole or in part. If we pay down the liquidation preference of each outstanding share of senior preferred stock in full, the shares will be considered redeemed as of the payment date.

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 common stock outstanding on a fully diluted basis on the date of exercise. 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) a notice of exercise; (b) payment of the exercise price of $0.00001 per share; and (c) 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 April 2, 2013, Treasury had 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. We have received a total of $116.1 billion from Treasury pursuant to the senior preferred stock purchase agreement as of December 31, 2012. The aggregate liquidation preference of the senior preferred stock, including the initial aggregate liquidation preference of $1.0 billion, remains at $117.1 billion as of December 31, 2012.

While we had a positive net worth as of December 31, 2012, in some future periods we could have a net worth deficit and, if so, would be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement. As of December 31, 2012, the remaining amount of funding available to us under the agreement was $117.6 billion.

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

Treasury has waived the quarterly commitment fee under the senior preferred stock purchase agreement for each quarter of 2012 and 2011. In addition, pursuant to the amendment to the senior preferred stock purchase agreement described in “Note 1, Summary of Significant Accounting Policies,” the periodic commitment fee under the agreement was suspended effective January 1, 2013.

Covenants

The senior preferred stock purchase agreement, as amended, provides that, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury:


•	Declare or pay any dividend (preferred or otherwise) or make any other distribution with respect to any Fannie Mae equity securities (other than with respect to the senior preferred stock or warrant);


•	Redeem, purchase, retire or otherwise acquire any Fannie Mae equity securities (other than the senior preferred stock or warrant);


•	Sell or issue any Fannie Mae equity securities (other than the senior preferred stock, the warrant and the common stock issuable upon exercise of the warrant and other than as required by the terms of any binding agreement in effect on the date of the senior preferred stock purchase agreement);


•	Terminate the conservatorship (other than in connection with a receivership);

•

Sell, transfer, lease or otherwise dispose of any assets, other than dispositions for fair market value: (a) to a limited life regulated entity (in the context of receivership); (b) of assets and properties in the ordinary course of business, consistent with past practice; (c) of assets and properties having fair market value individually or in aggregate less than $250 million in one transaction or a series of related transactions; (d) in connection with a liquidation of Fannie Mae by a receiver; (e) of cash or cash equivalents for cash or cash equivalents; or (f) to the extent necessary to comply with the covenant described below relating to the reduction of our mortgage assets;


•	Incur indebtedness that would result in our aggregate indebtedness exceeding $874.8 billion through December 31, 2012. For every year thereafter, our debt cap will equal 120% of the amount of mortgage assets we are allowed to own on December 31 of the immediately preceding calendar year;


•	Issue any subordinated debt;


•	Enter into a corporate reorganization, recapitalization, merger, acquisition or similar event; or

•

Engage in transactions with affiliates unless the transaction is (a) pursuant to the senior preferred stock purchase agreement, the senior preferred stock or the warrant, (b) upon arm’s-length terms or (c) a transaction undertaken in the ordinary course or pursuant to a contractual obligation or customary employment arrangement in existence on the date of the senior preferred stock purchase agreement.

The agreement, as amended, also provides that we may not own mortgage assets in excess of $650 billion as of December 31, 2012. On each December 31 thereafter, we are required to reduce our mortgage assets to 85% of the maximum allowable amount that we were permitted to own as of December 31 of the immediately preceding calendar year, until the amount of our mortgage assets reaches $250 billion.

Under the agreement, the effect of changes in generally accepted accounting principles that occurred subsequent to the date of the agreement and that require us to recognize additional mortgage assets in our consolidated balance sheets were not considered for purposes of evaluating our compliance with the limitation on the amount of mortgage assets we may own. In addition, the definition of indebtedness in the agreement was revised to clarify that it also does not give effect to any change that may be made in respect of the FASB guidance on accounting for transfers of financial assets or any similar accounting guidance.

In addition, the agreement provides that we may not enter into any new compensation arrangements with, or increase amounts or benefits payable under existing compensation arrangements of, any named executive officer or other executive officer (each as defined by SEC rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury. As of December 31, 2012, we were in compliance with the senior preferred stock purchase agreement covenants.

We are required to provide an annual risk management plan to Treasury no later than December 15 of each year we remain in conservatorship, beginning in 2012. Each annual risk management plan is required to set out our strategy for reducing our risk profile and to describe the actions we will take to reduce the financial and operational risks associated with each of our business segments. Each plan delivered after December 15, 2012 must include an assessment of our performance against the planned actions described in the prior year’s plan. We submitted our risk management plan to Treasury in December 2012.

Termination Provisions

The senior preferred stock purchase agreement provides that Treasury’s funding commitment will terminate under any the following circumstances: (1) the completion of our liquidation and fulfillment of Treasury’s obligations under its funding commitment at that time, (2) the payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guaranty obligations), or (3) 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.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2012

Regulatory Capital Requirements

FHFA has announced that during the conservatorship our existing statutory and FHFA-directed regulatory capital requirements will not be binding and that FHFA will not issue quarterly capital classifications. We submit capital reports to FHFA during the conservatorship and FHFA monitors our capital levels. FHFA has stated that it does not intend to report our critical capital, risk-based capital or subordinated debt levels during the conservatorship. Our regulatory capital classification measures are determined based on guidance from FHFA, in which FHFA (1) directed us, for loans backing Fannie Mae MBS held by third parties, to continue reporting our minimum capital requirements based on 0.45% of the unpaid principal balance and critical capital based on 0.25% of the unpaid principal balance, regardless of whether these loans have been consolidated pursuant to accounting rules, and (2) issued a regulatory interpretation stating that our minimum capital requirements are not automatically affected by the consolidation accounting guidance. Additionally, our regulatory capital classification measures exclude the funds provided to us by Treasury pursuant to the senior preferred stock purchase agreement, as the senior preferred stock does not qualify as core capital due to its cumulative dividend provisions.

Pursuant to the GSE Act, if the Director of FHFA makes a written determination that our total assets are less than our total obligations (a net worth deficit) for a period of 60 days, FHFA is mandated by law to appoint a receiver for Fannie Mae. Treasury’s funding commitment under the senior preferred stock purchase agreement is intended to ensure that we avoid a net worth deficit, in order to avoid this mandatory trigger of receivership. In order to avoid a net worth deficit, our conservator may request funds on our behalf from Treasury under the senior preferred stock purchase agreement.

FHFA has directed us, during the time we are under conservatorship, to focus on managing to a positive net worth. We had a positive net worth of $7.2 billion as of December 31, 2012 and a net worth deficit of $4.6 billion as of December 31, 2011.

The following table displays our regulatory capital classification measures as of December 31, 2012 and 2011.



	As of December 31,
	2012⁽¹⁾			2011⁽¹⁾
	(Dollars in millions)
Core Capital⁽²⁾	$	(110,350	)	$	(115,967	)
Statutory minimum capital requirement⁽³⁾	30,862			32,463
Deficit of core capital over statutory minimum capital requirement	$	(141,212	)	$	(148,430	)

__________


⁽¹⁾	Amounts as of December 31, 2012 and 2011 represent estimates that we have submitted to FHFA.


⁽²⁾	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 (loss) or (b) senior preferred stock.

⁽³⁾

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 (See 12 CFR 1750.4 for existing adjustments made by the Director).

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, 2012 and 2011, we had a minimum capital deficiency of $141.2 billion and $148.4 billion, respectively. Under the terms of the senior preferred stock purchase agreement, starting January 1, 2013, we are required to pay Treasury each quarter dividends equal to the excess of our net worth as of the end of the preceding quarter over an applicable capital reserve amount. As a result, in periods in which we have net worth, our minimum capital deficiency will decline to the extent of our net worth but the deficiency will increase in the subsequent period as we pay Treasury the corresponding preferred stock dividend. Set forth below are additional restrictions related to our capital requirements.

Restrictions on Capital Distributions and Dividends

Restrictions Under GSE Act. Under the GSE Act, FHFA has the 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 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 Subordinated Debt. During any period in which we defer payment of interest on qualifying subordinated debt, we may not declare or pay dividends on, or redeem, purchase or acquire, our common stock or preferred stock. Our qualifying subordinated debt provides for the deferral of the payment of interest for up to five years if either: our core capital is below 125% of our critical capital requirement; or our core capital is below our statutory minimum capital requirement, and the U.S. Secretary of the Treasury, acting on our request, exercises his or her discretionary authority pursuant to Section 304(c) of the Charter Act to purchase our debt obligations. As of December 31, 2012 and 2011, our core capital was below 125% of our critical capital requirement; however, we have been directed by FHFA to continue paying principal and interest on our outstanding subordinated debt during the conservatorship and thereafter until directed otherwise, regardless of our existing capital levels.

Prior to conservatorship, we were subject to certain regulatory capital requirements, including minimum capital requirements, under the terms of various agreements and consent orders with OFHEO. We were in compliance with these regulatory capital requirements until they were suspended October 9, 2008 following our entry into conservatorship.

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 15, 16, 17
-IssueDate 2006-05-01
-Chapter 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Concentrations of Credit Risk

Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2012

Risks and Uncertainties [Abstract]

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, including those conditions arising through April 2, 2013, 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 sellers/servicers, mortgage insurers, financial guarantors, lenders with risk sharing, 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. The geographic dispersion of our single-family business has been consistently diversified over the years ended December 31, 2012 and 2011, with our largest exposures in the Western region of the United States, which represented approximately 27% of our single-family conventional guaranty book of business as of December 31, 2012 and 2011. Except for California, where approximately 19% of the gross unpaid principal balance of our single-family conventional mortgage loans held or securitized in Fannie Mae MBS as of December 31, 2012 and 2011 were located, no other significant concentrations existed in any state.

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. We may also require credit enhancements if the original LTV ratio of a single-family conventional mortgage loan is less than 80%. As of December 31, 2012, approximately 36% of our single-family conventional guaranty book of business consists of loans with an estimated mark-to-market LTV greater than 80% compared with approximately 44% as of December 31, 2011.

Multifamily Loan Borrowers

Numerous factors affect a multifamily borrower’s ability to repay the loan and the value of the property underlying the loan. The most significant factors affecting credit risk are rental rates and capitalization rates for the mortgaged property. Rental rates vary among geographic regions of the United States. The average unpaid principal balance for multifamily loans is significantly larger than for single-family borrowers and, therefore, individual defaults for multifamily borrowers can be more significant to us. However, these loans, while individually large, represent a small percentage of our total guaranty book of business. Our multifamily geographic concentrations have been consistently diversified over the years ended December 31, 2012 and 2011, with our largest exposure in the Western region of the United States, which represented 32% and 34% of our multifamily guaranty book of business as of December 31, 2012 and 2011, respectively. Except for California and New York, no other significant concentrations existed in any states as of December 31, 2012 and 2011. As of December 31, 2012, 25% and 13% of the gross unpaid principal balance of multifamily mortgage loans held by us or securitized in Fannie Mae MBS were located in California and New York, respectively. As of December 31, 2011, 26% and 13% of the gross unpaid principal balance of our portfolio of multifamily mortgage loans held by us or securitized in Fannie Mae MBS were located in California and New York, respectively.

As part of our multifamily risk management activities, we perform detailed loan reviews that evaluate borrower and geographic concentrations, lender qualifications, counterparty risk, property performance and contract compliance. We generally require mortgage servicers to 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.

The following table displays the regional geographic concentration of single-family and multifamily loans in our mortgage portfolio and those loans held or securitized in Fannie Mae MBS as of December 31, 2012 and 2011.



	Geographic Concentration⁽¹⁾
	Percentage of Conventional Single-Family Guaranty Book of Business⁽²⁾						Percentage of Multifamily Guaranty Book of Business⁽³⁾
	As of December 31,						As of December 31,
	2012			2011			2012			2011
Midwest		15	%		15	%		8	%		8	%
Northeast		19			19			21			21
Southeast		23			24			21			20
Southwest		16			15			18			17
West		27			27			32			34
Total		100	%		100	%		100	%		100	%

__________


⁽¹⁾	Midwest includes IL, IN, IA, MI, MN, NE, ND, OH, SD, WI; Northeast includes CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT, VI; Southeast includes AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV; Southwest includes AZ, AR, CO, KS, LA, MO, NM, OK, TX, UT; West includes AK, CA, GU, HI, ID, MT, NV, OR, WA and WY.


⁽²⁾	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted over 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.


⁽³⁾	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011.

Alt-A and Subprime Loans and Securities

We own and guarantee Alt-A and subprime mortgage loans and mortgage-related securities. An Alt-A mortgage loan generally refers to a mortgage loan that has been underwritten with reduced or alternative documentation than that required for a full documentation mortgage loan but may also include other alternative product features. As a result, Alt-A mortgage loans generally have a higher risk of default than non-Alt-A mortgage loans. In reporting our Alt-A exposure, we have classified mortgage loans as Alt-A if and only if the lenders that deliver the mortgage loans to us have classified the loans as Alt-A, based on documentation or other product features. We have classified private-label mortgage-related securities held in our investment portfolio as Alt-A if the securities were labeled as such when issued.

A subprime mortgage loan generally refers to a mortgage loan made to a borrower with a weaker credit profile than that of a prime borrower. As a result of the weaker credit profile, subprime borrowers have a higher likelihood of default than prime borrowers. Subprime mortgage loans were typically originated by lenders specializing in this type of business or by subprime divisions of large lenders, using processes unique to subprime loans. In reporting our subprime exposure, we have classified mortgage loans as subprime if and only if the loans were originated by a lender specializing in subprime business or by a subprime division of a large lender; however, we exclude loans originated by these lenders from the subprime classification if we acquired the loans in accordance with our standard underwriting criteria, which typically require compliance by the lender with our Selling Guide, which sets forth our policies and procedures related to selling single-family mortgages to us, (including standard representations and warranties) and/or evaluation of the loans through our Desktop Underwriter system.

We apply our classification criteria in order to discuss our exposure to subprime and Alt-A loans. However, there is no universally accepted definition of subprime or Alt-A loans. Our single-family conventional guaranty book of business includes loans with some features that are similar to Alt-A loans or subprime loans that we have not classified as Alt-A or subprime because they do not meet our classification criteria. We have classified private-label mortgage-related securities held in our investment portfolio as subprime if the securities were labeled as such when issued. We reduce our risk associated with some of these loans through credit enhancements, as described below under “Mortgage Insurers.” We do not rely solely on our classifications of loans as Alt-A or subprime to evaluate the credit risk exposure relating to these loans in our single-family conventional guaranty book of business. For more information about the credit risk characteristics of loans in our single-family guaranty book of business, see “Note 3, Mortgage Loans” and “Note 6, Financial Guarantees.”

The Alt-A mortgage loans and Fannie Mae MBS backed by Alt-A loans of $157.0 billion in unpaid principal balance represented 5% of our single-family mortgage credit book of business as of December 31, 2012, compared to $183.8 billion in unpaid principal balance which represented 6% of our single-family mortgage credit book of business as of December 31, 2011. Subprime loans, private-label securities backed by Alt-A loans and private-label securities backed by subprime loans each represented less than 1% percent of our single-family mortgage credit book of business as of December 31, 2012 and 2011.

Other Concentrations

Mortgage Sellers/Servicers. Mortgage servicers collect mortgage and escrow payments from borrowers, pay taxes and insurance costs from escrow accounts, monitor and report delinquencies, and perform other required activities on our behalf. Our mortgage sellers/servicers are also obligated to repurchase loans or foreclosed properties, or reimburse us for losses if the foreclosed property has been sold, under certain circumstances, such as if it is determined that the mortgage loan did not meet our underwriting or eligibility requirements, if loan representations and warranties are violated or if mortgage insurers rescind coverage. Our business with mortgage servicers is concentrated. Our five largest single-family mortgage servicers, including their affiliates, serviced approximately 57% of our single-family guaranty book of business as of December 31, 2012, compared with approximately 63% as of December 31, 2011. Our ten largest multifamily mortgage servicers, including their affiliates, serviced approximately 67% of our multifamily guaranty book of business as of both December 31, 2012 and 2011.

If a significant mortgage seller/servicer counterparty, or a number of mortgage sellers/servicers fails to meet their obligations to us, it could result in a significant increase in our credit losses and have a material adverse effect on our results of operations, liquidity, financial condition and net worth.

Mortgage Insurers. Mortgage insurance “risk in force” generally represents our maximum potential loss recovery under the applicable mortgage insurance policies. We had total mortgage insurance coverage risk in force of $91.7 billion and $91.2 billion on the single-family mortgage loans in our guaranty book of business as of December 31, 2012 and 2011, respectively, which represented 3% of our single-family guaranty book of business as of December 31, 2012 and 2011. Our primary mortgage insurance coverage risk in force was $90.5 billion and $87.3 billion as of December 31, 2012 and 2011, respectively. Our pool mortgage insurance coverage risk in force was $1.2 billion and $3.9 billion as of December 31, 2012 and 2011, respectively. Our top six mortgage insurance companies provided 93% and 94% of our mortgage insurance as of December 31, 2012 and 2011, respectively.

As of April 2, 2013, three of our largest primary mortgage insurers—PMI Mortgage Insurance Co. (“PMI”), Triad Guaranty Insurance Corporation (“Triad”) and Republic Mortgage Insurance Company (“RMIC”)—are under various forms of supervised control by their state regulators and are in run-off; Genworth Mortgage Insurance Corporation (“Genworth”) and Mortgage Guaranty Insurance Corporation (“MGIC”) are operating pursuant to waivers they received from their regulators of the state regulatory capital requirements applicable to their main insurance writing entity, as the capital of each entity has fallen below applicable state regulatory capital requirements; and Radian Guaranty, Inc. (“Radian”) has disclosed that, in the absence of additional capital contributions to its main insurance writing entity, its capital might fall below state regulatory capital requirements in the future. These six mortgage insurers provided a combined $70.3 billion, or 77%, of our risk in force mortgage insurance coverage of our single-family guaranty book of business as of December 31, 2012.

The payment of claims by RMIC, PMI and Triad has been partially deferred pursuant to orders from their state regulators. Pursuant to a new corrective order, effective December 3, 2012, RMIC is now paying 60% of all valid claims and 40% is deferred as a policyholder claim. This new order increased RMIC’s payment from 50% and is retroactive for all claims after January 19, 2012, the date of the original order. PMI continues to pay 50% on all valid claims and 50% is deferred as a policyholder claim. Finally, Triad continues to pay 60% on all valid claims and 40% is deferred as a policyholder claim. It is uncertain when, or if, any of these mortgage insurers’ regulators will allow them to begin paying their deferred policyholder claims and/or increase the amount of cash they pay on claims.

The financial condition of some of our mortgage insurer counterparties has improved during 2012 but there is still significant risk that these counterparties will fail to fulfill their obligations to reimburse us for claims under insurance policies. If we determine that it is probable that we will not collect all of our claims from one or more of these mortgage insurer counterparties, it could result in an increase in our loss reserves, which could adversely affect our earnings, liquidity, financial condition and net worth.

Our total loss reserves incorporate an estimated recovery amount from mortgage insurance coverage. We evaluate the financial condition of our mortgage insurer counterparties and adjust the contractually due mortgage insurance benefit for collectibility in order to ensure that our total loss reserves reflect probable losses as of the balance sheet date. The following table displays our estimated benefit from mortgage insurers as of December 31, 2012 and 2011 that reduces our total loss reserves.



		As of December 31,
	2012			2011
		(Dollars in millions)
Contractual mortgage insurance benefit		$	9,993		$	15,099
Less: Collectibility adjustment⁽¹⁾		708			2,867
Estimated benefit included in total loss reserves		$	9,285		$	12,232

__________


⁽¹⁾	Represents an adjustment that reduces the contractual benefit for our assessment of our mortgage insurer counterparties’ inability to fully pay the contractual mortgage insurance claims.

We had outstanding receivables of $3.7 billion recorded in “Other assets” in our consolidated balance sheets as of December 31, 2012 and $3.6 billion as of December 31, 2011 related to amounts claimed on insured, defaulted loans, of which $1.1 billion as of December 31, 2012 and $639 million as of December 31, 2011 was due from our mortgage sellers/servicers. We assessed the total outstanding receivables for collectibility, and they are recorded net of a valuation allowance of $551 million as of December 31, 2012 and $570 million as of December 31, 2011. The valuation allowance reduces our claim receivable to the amount which is considered probable of collection as of December 31, 2012 and 2011.

We received proceeds under our primary and pool mortgage insurance policies for single-family loans of $5.1 billion and $5.8 billion for the years ended December 31, 2012 and 2011, respectively.

Financial Guarantors. We are the beneficiary of financial guarantees on non-agency securities held in our investment portfolio and on non-agency securities that have been resecuritized to include a Fannie Mae guaranty and sold to third parties. The following table displays the total unpaid principal balance of guaranteed non-agency securities in our portfolio as of December 31, 2012 and 2011.



	As of December 31,
	2012		2011
	(Dollars in millions)
Alt-A private-label securities	$	928	$	1,279
Subprime private-label securities	1,264		1,398
Mortgage revenue bonds	4,374		4,931
Other mortgage-related securities	292		317
Non mortgage-related securities	—		46
Total	$	6,858	$	7,971

If a financial guarantor fails to meet its obligations to us with respect to the securities for which we have obtained financial guarantees, it could reduce the fair value of our mortgage-related securities and result in financial losses to us, which could have a material adverse effect on our earnings, liquidity, financial condition and net worth. With the exception of Ambac Assurance Corporation (“Ambac”), none of our non-governmental financial guarantor counterparties has failed to repay us for claims under guaranty contracts. Pursuant to a court order, effective August 31, 2012, Ambac pays 25% on all filed claims that are valid. Ambac provided coverage on $3.0 billion, or 44%, of our total non-governmental guarantees, as of December 31, 2012.

We are also the beneficiary of financial guarantees included in securities issued by Freddie Mac, the federal government and its agencies that totaled $27.3 billion as of December 31, 2012 and $31.4 billion as of December 31, 2011.

We model our securities without assuming the benefit of non-governmental financial guarantees. We then adjust results for those external financial guarantees from guarantors that we determine are creditworthy, although we continue to seek collection of any amounts due to us from all counterparties. As of December 31, 2012, when modeling our securities for impairments we did not assume the benefit of external financial guarantees from non-governmental counterparties. See “Note 5, Investments in Securities” for a further discussion of our model methodology and key inputs used to determine other-than-temporary-impairment.

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 single-family loans was $11.9 billion as of December 31, 2012 and $12.8 billion as of December 31, 2011. As of December 31, 2012 and 2011, 55% and 58% of our maximum potential loss recovery on single-family loans was from three lenders. 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 $36.4 billion as of December 31, 2012 and $32.1 billion as of December 31, 2011. As of December 31, 2012 and 2011, 35% and 40% of our maximum potential loss recovery on multifamily loans was from three DUS lenders.

Parties Associated with Our Off-Balance Sheet Transactions. We enter into financial instrument transactions that create off-balance sheet credit risk in the normal course of our business. These transactions are designed to meet the financial needs of our customers, and manage our credit, market or liquidity risks.

We have entered into guarantees for which we have not recognized a guaranty obligation in our consolidated balance sheets relating to periods prior to 2003, the effective date of accounting guidance related to guaranty accounting. Our maximum potential exposure under these guarantees is $8.3 billion as of December 31, 2012 and $9.3 billion as of December 31, 2011. If we were required to make payments under these guarantees, we would pursue recovery through our right to the collateral backing the underlying loans, available credit enhancements and recourse with third parties that provide a maximum coverage of $3.6 billion as of December 31, 2012 and $4.0 billion as of December 31, 2011.

Derivatives Counterparties. For information on credit risk associated with our derivatives transactions refer to “Note 9, Derivative Instruments.”

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Fair Value

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

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.

Effective January 1, 2012, we adopted new accounting guidance that requires enhanced disclosures about fair value measurement. Upon adoption of the new fair value guidance, we made changes to the principal markets that we use to estimate the fair value of the following categories of mortgage loans: (a) for loans that are one month delinquent, we changed to the GSE securitization market; (b) for loans that are two and three months delinquent, we changed to the whole loan market; and (c) for loans that have been modified in a troubled debt restructuring but have been reperforming for nine months or more, we changed to the whole loan market. After making these changes, (a) the principal market for all performing loans and those loans that are one month delinquent is the GSE securitization market; and (b) the principal market for all loans that are two or more months delinquent and all loans that have been modified in a troubled debt restructuring is the whole loan market. The impact of making these changes to our principal markets was a net decrease in the estimated fair value of our loans of $24.4 billion as of March 31, 2012.

In addition, we enhanced our fair value estimation process for HARP loans to use the modified build-up approach, as described in “Fair Value of Financial Instruments—HARP Loans.” Previously, we measured the fair value of these loans using our standard build-up approach. Based on the definition of HARP at the time we implemented this process enhancement, the impact of this enhancement was an increase in the estimated fair value of HARP loans of $7.4 billion as of March 31, 2012.

In the three months ended September 30, 2012, we updated our assumptions for prepayment speeds, severities and default rates, which resulted in an increase in the fair value of our loans of approximately $23 billion. These updates resulted in lower expectation of losses on certain loans, primarily performing loans with high LTV ratios.

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 as of December 31, 2012 and 2011.



		Fair Value Measurements as of December 31, 2012
	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⁾		$	1,150		$	—		$	—		$	—			$	1,150
Trading securities:
Mortgage-related securities:
Fannie Mae		—			6,180			68			—				6,248
Freddie Mac		—			2,791			2			—				2,793
Ginnie Mae		—			436			1			—				437
Alt-A private-label securities		—			1,226			104			—				1,330
Subprime private-label securities		—			—			1,319			—				1,319
CMBS		—			9,826			—			—				9,826
Mortgage revenue bonds		—			—			675			—				675
Other		—			—			117			—				117
Non-mortgage-related securities:
U.S. Treasury securities		17,950			—			—			—				17,950
Total trading securities		17,950			20,459			2,286			—				40,695
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			10,406			29			—				10,435
Freddie Mac		—			9,370			10			—				9,380
Ginnie Mae		—			751			—			—				751
Alt-A private-label securities		—			4,511			6,564			—				11,075
Subprime private-label securities		—			—			7,447			—				7,447
CMBS		—			13,097			—			—				13,097
Mortgage revenue bonds		—			5			7,837			—				7,842
Other		—			7			3,147			—				3,154
Total available-for-sale securities		—			38,147			25,034			—				63,181
Mortgage loans of consolidated trusts		—			8,166			2,634			—				10,800
Other assets:
Risk management derivatives:
Swaps		—			12,224			146			—				12,370
Swaptions		—			3,674			—			—				3,674
Other		—			—			26			—				26
Netting adjustment		—			—			—			(15,791		)		(15,791		)
Mortgage commitment derivatives		—			153			3			—				156
Total other assets		—			16,051			175			(15,791		)		435
Total assets at fair value		$	19,100		$	82,823		$	30,129		$	(15,791	)		$	116,261



		Fair Value Measurements as of December 31, 2012
	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)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior fixed		$	—		$	393		$	—		$	—		$	393
Senior floating		—			—			400			—			400
Total of Fannie Mae		—			393			400			—			793
Of consolidated trusts		—			10,519			1,128			—			11,647
Total long-term debt		—			10,912			1,528			—			12,440
Other liabilities:
Risk management derivatives:
Swaps		—			19,836			154			—			19,990
Swaptions		—			2,463			—			—			2,463
Other		—			1			—			—			1
Netting adjustment		—			—			—			(22,046		)	(22,046		)
Mortgage commitment derivatives		—			290			7			—			297
Total other liabilities		—			22,590			161			(22,046		)	705
Total liabilities at fair value		$	—		$	33,502		$	1,689		$	(22,046	)	$	13,145



		Fair Value Measurements as of December 31, 2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Assets:
Cash equivalents⁽²⁾		$	600		$	—		$	—		$	—			$	600
Trading securities:
Mortgage-related securities:
Fannie Mae		—			5,687			1,737			—				7,424
Freddie Mac		—			2,732			—			—				2,732
Ginnie Mae		—			278			9			—				287
Alt-A private-label securities		—			1,004			345			—				1,349
Subprime private-label securities		—			—			1,280			—				1,280
CMBS		—			10,411			—			—				10,411
Mortgage revenue bonds		—			—			724			—				724
Other		—			—			143			—				143
Non-mortgage-related securities:
U.S. Treasury securities		47,737			—			—			—				47,737
Asset-backed securities		—			2,111			—			—				2,111
Total trading securities		47,737			22,223			4,238			—				74,198
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			15,904			946			—				16,850
Freddie Mac		—			12,811			12			—				12,823
Ginnie Mae		—			902			—			—				902
Alt-A private-label securities		—			4,427			7,256			—				11,683
Subprime private-label securities		—			—			7,586			—				7,586
CMBS		—			14,026			—			—				14,026
Mortgage revenue bonds		—			7			10,247			—				10,254
Other		—			13			3,445			—				3,458
Total available-for-sale securities		—			48,090			29,492			—				77,582
Mortgage loans of consolidated trusts		—			1,292			2,319			—				3,611
Other assets:
Risk management derivatives:
Swaps		—			9,247			170			—				9,417
Swaptions		—			6,536			—			—				6,536
Other		—			1			51			—				52
Netting adjustment		—			—			—			(15,829		)		(15,829		)
Mortgage commitment derivatives		—			368			17			—				385
Total other assets		—			16,152			238			(15,829		)		561
Total assets at fair value		$	48,337		$	87,757		$	36,287		$	(15,829	)		$	156,552



		Fair Value Measurements as of December 31, 2011
	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)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior fixed		$	—		$	432		$	—		$	—			$	432
Senior floating		—			—			406			—				406
Total of Fannie Mae		—			432			406			—				838
Of consolidated trusts		—			3,174			765			—				3,939
Total long-term debt		—			3,606			1,171			—				4,777
Other liabilities:
Risk management derivatives:
Swaps		—			18,661			167			—				18,828
Swaptions		—			3,432			—			—				3,432
Netting adjustment		—			—			—			(21,898		)		(21,898		)
Mortgage commitment derivatives		—			548			6			—				554
Total other liabilities		—			22,641			173			(21,898		)		916
Total liabilities at fair value		$	—		$	26,247		$	1,344		$	(21,898	)		$	5,693

__________


⁽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 agreements 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 are classified as Level 1.

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) for the years ended December 31, 2012, 2011 and 2010. 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 (loss) for Level 3 assets and liabilities for the years ended December 31, 2012, 2011 and 2010. When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2012

				Total (Losses) or Gains (Realized/Unrealized)																											Net Unrealized (Losses) Gains Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2012⁽⁵⁾
	Balance, December 31, 2011			Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3 ⁽⁴⁾			Transfers into Level 3 ⁽⁴⁾			Balance, December 31, 2012
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	1,737		$	(2	)		$	—		$	—	$	(33	)	$	—		$	(118	)	$	(1,581	)	$	65		$	68			$	(6	)
Freddie Mac	—			—				—			—		—			—			—			—			2			2				—
Ginnie Mae	9			—				—			—		—			—			—			(9		)	1			1				—
Alt-A private-label securities	345			165				—			—		—			—			(111		)	(907		)	612			104				39
Subprime private-label securities	1,280			192				—			—		—			—			(153		)	—			—			1,319				192
Mortgage revenue bonds	724			(29		)		—			—		—			—			(20		)	—			—			675				(29		)
Other	143			(19		)		—			—		—			—			(7		)	—			—			117				(19		)
Total trading securities	$	4,238		$	307			$	—		$	—	$	(33	)	$	—		$	(409	)	$	(2,497	)	$	680		$	2,286			$	177

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	946		$	—			$	(8	)	$	43	$	(43	)	$	—		$	(24	)	$	(895	)	$	10		$	29			$	—
Freddie Mac	12			—				—			—		—			—			(2		)	—			—			10				—
Alt-A private-label securities	7,256			(87		)		584			—		—			—			(1,072		)	(3,325		)	3,208			6,564				—
Subprime private-label securities	7,586			(126		)		1,280			—		—			—			(1,293		)	—			—			7,447				—
Mortgage revenue bonds	10,247			9				(23		)	29		(76		)	—			(2,349		)	—			—			7,837				—
Other	3,445			12				59			—		—			—			(369		)	—			—			3,147				—
Total available-for-sale securities	$	29,492		$	(192	)		$	1,892		$	72	$	(119	)	$	—		$	(5,109	)	$	(4,220	)	$	3,218		$	25,034			$	—

Mortgage loans of consolidated trusts	$	2,319		$	235			$	—		$	935	$	—		$	—		$	(411	)	$	(562	)	$	118		$	2,634			$	159
Net derivatives	65			(23		)		—			—		—			(8		)	(20		)	—			—			14				(9		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(406	)	$	(21	)		$	—		$	—	$	—		$	—		$	27		$	—		$	—		$	(400	)		$	(21	)
Of consolidated trusts	(765		)	(180		)		—			—		—			(523		)	233			474			(367		)	(1,128		)		(158		)
Total long-term debt	$	(1,171	)	$	(201	)		$	—		$	—	$	—		$	(523	)	$	260		$	474		$	(367	)	$	(1,528	)		$	(179	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2011

				Total Gains or (Losses) (Realized/Unrealized)																											Net Unrealized Gains (Losses) Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2011⁽⁵⁾
	Balance, December 31, 2010			Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, December 31, 2011
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	2,202		$	14			$	—		$	663	$	(161	)	$	—		$	(433	)	$	(600	)	$	52		$	1,737			$	36
Ginnie Mae	—			—				—			9		(9		)	—			—			(27		)	36			9				—
Alt-A private-label securities	20			19				—			—		—			—			(32		)	(188		)	526			345				(1		)
Subprime private-label securities	1,581			(125		)		—			—		—			—			(176		)	—			—			1,280				(125		)
Mortgage revenue bonds	609			141				—			—		—			—			(26		)	—			—			724				144
Other	152			1				—			—		—			—			(6		)	(147		)	143			143				—
Non-mortgage-related:
Asset-backed securities	12			—				—			—		—			—			(5		)	(9		)	2			—				—
Total trading securities	$	4,576		$	50			$	—		$	672	$	(170	)	$	—		$	(678	)	$	(971	)	$	759		$	4,238			$	54

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	114		$	—			$	44		$	1,756	$	(383	)	$	—		$	(22	)	$	(1,023	)	$	460		$	946			$	—
Freddie Mac	3			—				—			—		—			—			(1		)	—			10			12				—
Alt-A private-label securities	7,049			(100		)		119			—		—			—			(974		)	(1,684		)	2,846			7,256				—
Subprime private-label securities	9,932			(386		)		(580		)	—		(363		)	—			(1,017		)	—			—			7,586				—
Mortgage revenue bonds	11,030			(22		)		834			—		(109		)	—			(1,486		)	—			—			10,247				—
Other	3,806			(7		)		50			—		—			—			(404		)	—			—			3,445				—
Total available-for-sale securities	$	31,934		$	(515	)		$	467		$	1,756	$	(855	)	$	—		$	(3,904	)	$	(2,707	)	$	3,316		$	29,492			$	—

Mortgage loans of consolidated trusts	$	2,207		$	8			$	—		$	184	$	—		$	—		$	(339	)	$	(106	)	$	365		$	2,319			$	9
Net derivatives	104			123				—			—		—			(4		)	(87		)	(71		)	—			65				59
Long-term debt:
Of Fannie Mae:
Senior floating	$	(421	)	$	(88	)		$	—		$	—	$	—		$	—		$	103		$	—		$	—		$	(406	)		$	(88	)
Of consolidated trusts	(627		)	(35		)		—			—		4			(70		)	89			185			(311		)	(765		)		(19		)
Total long-term debt	$	(1,048	)	$	(123	)		$	—		$	—	$	4		$	(70	)	$	192		$	185		$	(311	)	$	(1,171	)		$	(107	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2010

				Impact of the transition to the Consolidation Accounting Guidance				Total (Losses) or Gains (Realized/Unrealized)																			Net Unrealized Gains (Losses) Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2010⁽⁵⁾
	Balance, December 31, 2009							Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases, Sales, Issuances, and Settlements, Net			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, December 31, 2010
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	5,656			$	(2	)	$	(1	)		$	—		$	(223	)	$	(5,551	)	$	2,323		$	2,202			$	13
Freddie Mac	—				—			—				—			(1		)	(3		)	4			—				—
Alt-A private-label securities	564				62			226				—			(77		)	(1,069		)	314			20				4
Subprime private-label securities	1,780				—			41				—			(240		)	—			—			1,581				41
Mortgage revenue bonds	600				—			67				—			(58		)	—			—			609				66
Other	154				—			6				—			(8		)	—			—			152				5
Non-mortgage-related:
Asset-backed securities	107				—			1				—			(62		)	(47		)	13			12				—
Total trading securities	$	8,861			$	60		$	340			$	—		$	(669	)	$	(6,670	)	$	2,654		$	4,576			$	129

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	596			$	(203	)	$	(1	)		$	2		$	181		$	(580	)	$	119		$	114			$	—
Freddie Mac	27				—			—				(1		)	(29		)	—			6			3				—
Ginnie Mae	123				—			—				2			(125		)	—			—			—				—
Alt-A private-label securities	8,312				471			(54		)		1,240			(1,322		)	(4,951		)	3,353			7,049				—
Subprime private-label securities	10,746				(118		)	(70		)		1,078			(1,704		)	—			—			9,932				—
Mortgage revenue bonds	12,820				21			11				82			(1,902		)	(2		)	—			11,030				—
Other	3,530				366			(3		)		402			(489		)	—			—			3,806				—
Total available-for-sale securities	$	36,154			$	537		$	(117	)		$	2,805		$	(5,390	)	$	(5,533	)	$	3,478		$	31,934			$	—

Mortgage loans of consolidated trusts	$	—			$	—		$	(29	)		$	—		$	2,188		$	(11	)	$	59		$	2,207			$	(29	)
Guaranty assets and buy-ups	2,577				(2,568		)	1				1			(11		)	—			—			—				—
Net derivatives	123				—			61				—			(74		)	(1		)	(5		)	104				(33		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(601	)		$	—		$	20			$	—		$	160		$	—		$	—		$	(421	)		$	24
Of consolidated trusts	—				(77		)	19				—			(631		)	92			(30		)	(627		)		2
Total long-term debt	$	(601	)		$	(77	)	$	39			$	—		$	(471	)	$	92		$	(30	)	$	(1,048	)		$	26

__________


⁽¹⁾	Gains (losses) included in other comprehensive income (loss) are included in “Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes” in the consolidated statements of operations and comprehensive income (loss).


⁽²⁾	Purchases and sales include activity related to the consolidation and deconsolidation of assets of securitization trusts.


⁽³⁾	Issues and settlements include activity related to the consolidation and deconsolidation of liabilities of securitization trusts.

⁽⁴⁾

Transfers out of Level 3 consisted primarily of Fannie Mae MBS and private-label mortgage-related securities backed by Alt-A loans. Prices for these securities were obtained from multiple third-party vendors supported by market observable inputs. Transfers into Level 3 consisted primarily of private-label mortgage-related securities backed by Alt-A loans. Prices for these securities are based on inputs from a single source or inputs that were not readily observable.


⁽⁵⁾	Amount represents temporary changes in fair value. Amortization, accretion and other-than-temporary impairments are not considered unrealized and are not included in this amount.

The following tables display realized and unrealized gains and losses included in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010, for our Level 3 assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis.



		For the Year Ended December 31, 2012
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income (loss)		$	272		$	326		$	(484	)		$	12		$	126
Net unrealized gains related to Level 3 assets and liabilities still held as of December 31, 2012		$	—		$	148		$	—			$	—		$	148



		For the Year Ended December 31, 2011
	Interest Income				Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized (losses) gains included in net income (loss)		$	(327	)		$	86		$	(229	)		$	13		$	(457	)
Net unrealized (losses) gains related to Level 3 assets and liabilities still held as of December 31, 2011		$	(3	)		$	18		$	—			$	—		$	15



		For the Year Ended December 31, 2010
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income (loss)		$	319		$	416		$	(480	)		$	40		$	295
Net unrealized gains related to Level 3 assets and liabilities still held as of December 31, 2010		$	—		$	93		$	—			$	—		$	93

Nonrecurring Changes in Fair Value

The following table displays assets and liabilities measured in our consolidated balance sheets 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 for impairment) as of December 31, 2012.



	Fair Value Measurements as of December 31, 2012
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value
	(Dollars in millions)
Nonrecurring fair value measurements:
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	104		$	135		$	239
Single-family mortgage loans held for investment, at amortized cost:⁽¹⁾
Of Fannie Mae		—			—			23,314			23,314
Of consolidated trusts		—			—			227			227
Multifamily mortgage loans held for investment, at amortized cost		—			—			1,624			1,624
Acquired property, net:
Single-family		—			—			3,692			3,692
Multifamily		—			—			74			74
Other assets		—			—			384			384
Total nonrecurring fair value measurements		$	—		$	104		$	29,450		$	29,554

_________


⁽¹⁾	Excludes estimated recoveries from mortgage insurance proceeds.

The following tables display assets and liabilities measured in our consolidated balance sheets at fair value on a nonrecurring basis and the gains or losses recognized for these assets and liabilities for the years ended December 31, 2011 and 2010.



														For the Year Ended December 31, 2011
	Fair Value Measurements
	For the Year Ended December 31, 2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value				Total Gains (Losses)
		(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	3		$	197		$	200	⁽¹⁾		$	12
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			44,592			44,592		⁽²⁾		(3,077		)
Of consolidated trusts		—			—			882			882		⁽²⁾		(142		)
Multifamily mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			1,910			1,910		⁽²⁾		(348		)
Acquired property, net:
Single-family		—			—			19,498			19,498		⁽³⁾		(2,639		)
Multifamily		—			—			363			363		⁽³⁾		(87		)
Other assets		—			—			1,537			1,537		⁽⁴⁾		(209		)
Total assets at fair value		$	—		$	3		$	68,979		$	68,982			$	(6,490	)



														For the Year Ended December 31, 2010
	Fair Value Measurements
	For the Year Ended December 31, 2010
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value				Total Losses
	(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	6,776		$	535		$	7,311	⁽¹⁾⁽⁵⁾		$	(91	)	⁽⁵⁾
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			38,150			38,150		⁽²⁾		(2,244		)
Of consolidated trusts		—			—			1,294			1,294		⁽²⁾		(235		)
Multifamily mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			1,836			1,836		⁽²⁾		(481		)
Acquired property, net:
Single-family		—			—			20,248			20,248		⁽³⁾		(2,617		)
Multifamily		—			—			206			206		⁽³⁾		(65		)
Other assets:
Guaranty assets		—			—			27			27				(6		)
Partnership investments		—			—			107			107				(145		)
Other assets		—			—			597			597		⁽⁴⁾		(43		)
Total assets at fair value		$	—		$	6,776		$	63,000		$	69,776			$	(5,927	)

_________


⁽¹⁾	Includes $73 million and $7.1 billion of mortgage loans held for sale that were sold, deconsolidated, retained as a mortgage-related security or redesignated to mortgage loans held for investment as of December 31, 2011 and 2010, respectively.


⁽²⁾	Includes $8.1 billion and $3.4 billion of mortgage loans held for investment that were liquidated or transferred to foreclosed properties as of December 31, 2011 and 2010, respectively.


⁽³⁾	Includes $14.5 billion and $10.5 billion of acquired properties that were sold or transferred as of December 31, 2011 and 2010, respectively.


⁽⁴⁾	Includes $411 million and $22 million of other assets that were sold or transferred as of December 31, 2011 and 2010, respectively.


⁽⁵⁾	Includes $7.1 billion of estimated fair value and $68 million in losses due to the adoption of the consolidation accounting guidance.

The following table displays valuation techniques and the range and weighted-average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2012.



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾	Fair Value
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency⁽²⁾	Consensus						$	44
	Single Vendor						27
Total Agency							71
Alt-A private-label securities	Discounted Cash Flow	Default Rate (%)	5.7	-	17.6	12.5
		Prepayment Speed (%)	0.6	-	4.0	1.7
		Severity (%)	65.0	-	70.0	67.6
		Spreads (bps)	526.0	-	612.0	567.0	87
	Consensus						17
Total Alt-A private-label securities							104
Subprime private-label securities	Consensus	Default Rate (%)	10.9	-	23.0	16.0
		Prepayment Speed (%)	0.3	-	7.9	2.6
		Severity (%)	80.0			80.0
		Spreads (bps)	427.0	-	657.0	488.5	544
	Consensus						355
	Discounted Cash Flow	Default Rate (%)	14.1	-	20.4	18.7
		Prepayment Speed (%)	3.4	-	8.3	5.6
		Severity (%)	80.0			80.0
		Spreads (bps)	422.0	-	637.0	564.8	236
	Single Vendor						184
Total subprime private-label securities							1,319
Mortgage revenue bonds	Discounted Cash Flow	Spreads (bps)	260.0	-	375.0	320.4	636
	Single Vendor						39
Total mortgage revenue bonds							675
Other	Other						117
Total trading securities							$	2,286



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted Average⁽¹⁾	Fair Value
	(Dollars in millions)
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	Other						$	39
Alt-A private-label securities	Discounted Cash Flow	Default Rate (%)	0.0	-	23.6	6.4
		Prepayment Speed (%)	0.0	-	20.8	7.4
		Severity (%)	50.0	-	70.0	57.2
		Spreads (bps)	288.0	-	643.0	442.8	3,003
	Consensus	Default Rate (%)	0.0	-	17.7	3.6
		Prepayment Speed (%)	0.2	-	41.3	10.0
		Severity (%)	50.0	-	70.0	54.9
		Spreads (bps)	300.0	-	634.0	429.0	2,285
	Consensus						1,231
	Single Vendor						45
Total Alt-A private-label securities							6,564
Subprime private-label securities	Consensus	Default Rate (%)	0.0	-	27.4	15.4
		Prepayment Speed (%)	0.0	-	14.4	3.0
		Severity (%)	65.0	-	80.0	77.8
		Spreads (bps)	325.0	-	660.0	493.7	3,333
	Consensus						2,326
	Discounted Cash Flow	Default Rate (%)	0.0	-	24.3	15.7
		Prepayment Speed (%)	0.0	-	10.9	2.9
		Severity (%)	65.0	-	80.0	76.7
		Spreads (bps)	299.0	-	654.0	527.0	1,710
	Other						78
Total subprime private-label securities							7,447
Mortgage revenue bonds	Single Vendor						5,721
	Discounted Cash Flow	Spreads (bps)	77.0	-	375.0	297.7	1,911
	Other						205
Total mortgage revenue bonds							7,837
Other	Consensus						1,009
	Discounted Cash Flow	Default Rate (%)	4.0	-	10.0	5.0
		Prepayment Speed (%)	0.2	-	10.0	3.0
		Severity (%)	50.0	-	85.0	84.8
		Spreads (bps)	431.0	-	1,154.0	588.6	916
	Consensus	Default Rate (%)	0.0	-	5.0	4.7
		Prepayment Speed (%)	1.0	-	14.1	3.6
		Severity (%)	65.0	-	85.0	83.8
		Spreads (bps)	450.0	-	729.0	585.8	534
	Other						688
Total Other							3,147
Total available-for-sale securities							$	25,034



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted Average⁽¹⁾	Fair Value
	(Dollars in millions)
Mortgage loans of consolidated trusts:
Single-family	Build-Up	Default Rate (%)	0.1	-	99.3	18.4
		Prepayment Speed (%)	4.4	-	92.0	19.4
		Severity (%)	5.6	-	97.3	33.3	$	1,698
	Consensus						303
	Consensus	Default Rate (%)	0.0	-	9.0	6.4
		Prepayment Speed (%)	1.7	-	14.4	10.4
		Severity (%)	65.0	-	70.0	67.1
		Spreads (bps)	468.0	-	851.0	567.9	302
	Discounted Cash Flow	Default Rate (%)	0.0	-	8.5	6.0
		Prepayment Speed (%)	1.7	-	14.4	5.3
		Severity (%)	65.0	-	70.0	65.0
		Spreads (bps)	507.0	-	1,030.0	733.4	106
	Single Vendor						50
Total single-family							2,459
Multifamily	Build-Up	Spreads (bps)	77.0	-	363.4	154.5	175
Total mortgage loans of consolidated trusts							$	2,634
Net derivatives	Dealer Mark						$	144
	Internal Model						(130		)
Total net derivatives							$	14
Long-term debt:
Of Fannie Mae:
Senior floating	Discounted Cash Flow						$	(400	)
Of consolidated trusts	Consensus						(370		)
	Discounted Cash Flow	Default Rate (%)	0.0	-	10.0	5.8
		Prepayment Speed (%)	0.0	-	100.0	36.9
		Severity (%)	50.0	-	70.0	63.4
		Spreads (bps)	98.0	-	1,030.0	331.4	(330		)
	Consensus	Default Rate (%)	0.0	-	9.0	6.2
		Prepayment Speed (%)	1.7	-	14.4	10.9
		Severity (%)	65.0	-	70.0	67.5
		Spreads (bps)	468.0	-	851.0	584.3	(271		)
	Single Vendor						(157		)
Total of consolidated trusts							(1,128		)
Total long-term debt							$	(1,528	)

_________

⁽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⁾	Includes Fannie Mae, Freddie Mac and Ginnie Mae securities.

The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2012. The significant unobservable inputs related to these techniques primarily relate to collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property.



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Fair Value
	(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus		$	135
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae	Internal Model		23,314
Of consolidated trusts	Internal Model		227
Multifamily mortgage loans held for investment, at amortized cost	Appraisals		194
	Broker Price Opinions		395
	Asset Manager Estimate		1,001
	Other		34
Total multifamily mortgage loans held for investment, at amortized cost			1,624
Acquired property, net:
Single-family	Accepted Offers		787
	Appraisals		467
	Walk Forwards		1,348
	Internal Model		1,014
	Other		76
Total single-family			3,692
Multifamily	Accepted Offers		20
	Appraisals		8
	Broker Price Opinions		46
Total multifamily			74
Other Assets	Appraisals		8
	Walk Forwards		43
	Internal Model		203
	Other		130
Total other assets			384
Total nonrecurring assets at fair value			$	29,450

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.

Cash Equivalents, Trading Securities and Available-for-Sale Securities

These securities are recorded in our consolidated balance sheets at fair value on a recurring basis. Fair value is measured using quoted market prices in active markets for identical assets, when available.

A description of our securities valuation techniques is as follows:

Single Vendor: This valuation technique utilizes one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above.

Consensus: This technique utilizes an average of two or more vendor prices for similar securities. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, default rates) are disclosed in the table above.

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.

We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy. We classify securities 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.

For agency and 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 the sensitivities of the fair value of our recurring Level 3 securities of the valuation hierarchy to various unobservable inputs are discussed above in isolation, 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

The majority of HFI loans are reported in our consolidated balance sheets at the principal amount outstanding, net of cost basis adjustments and an allowance for loan losses. We estimate the fair value of HFI loans using the build-up and consensus valuation techniques, as discussed below, for periodic disclosure of financial instruments as required by GAAP. For our remaining loans, which include those containing embedded derivatives that would otherwise require bifurcation and consolidated loans of senior-subordinated trust structures, we elected the fair value option and therefore, we record these loans at fair value in our consolidated balance sheets. We measure these loans on a recurring basis using the build-up, consensus, discounted cash flow and single vendor price techniques. Certain impaired loans are measured at fair value on a nonrecurring basis by using the fair value of their underlying collateral. Specific techniques used include internal models, broker price opinions and appraisals.

A description of our loan valuation techniques is as follows:

Build-Up: The fair value of performing loans represents an estimate of the prices we would receive if we were to securitize those loans and is determined based on comparisons to Fannie Mae MBS with similar characteristics, either on a pool or loan level. We use the observable market values of our Fannie Mae MBS determined primarily from third-party pricing services, quoted market prices in active markets for similar securities, and other observable market data as a base value. In the build-up valuation technique we start with the base value for our Fannie Mae MBS then we 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. We estimate the fair value of the GO using our internal GO valuation models, which calculate the present value of expected cash flows based on management’s best estimate of certain key assumptions such as current mark-to-market LTV ratios, future house prices, default rates, severity rates and required rate of return. We may further adjust the model values based on our current market pricing when such transactions reflect credit characteristics that are similar to our outstanding GO. These 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.

Consensus: The fair value of single-family nonperforming loans represents an estimate of the prices we would receive if we were to sell these loans in the nonperforming whole-loan market. These nonperforming loans are either two or more months delinquent, in an open modification period, or in a closed modification state (both performing and nonperforming in accordance with the loan’s modified terms). We calculate the fair value of nonperforming loans based on assumptions about key factors, including collateral value and mortgage insurance repayment. Collateral value is derived from the current estimated mark-to-market LTV ratio of the individual loan along with a state-level distressed property sales discount. The fair value of mortgage insurance is estimated by taking the loan level coverage and adjusting it by the expected claims paying ability of the associated mortgage insurer. The expected claims paying abilities used for estimating the fair value of mortgage insurance are consistent with our credit loss forecast. Using these assumptions, along with indicative bids for a representative sample of nonperforming loans, we estimate the fair value. The bids on sample loans are obtained from multiple active market participants. Fair value is estimated from the extrapolation of these indicative sample bids plus an amount for the recovery of any associated mortgage insurance estimated through our GO valuation models as described above. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Discounted Cash Flow: We estimate the fair value of a portion of our senior-subordinated trust structures using discounted cash flow at the security level as a proxy for estimating loan fair value. This valuation technique uses unobservable inputs such as prepayment speeds, default rates, spreads, and loss severities to estimate the fair value of our securities. These inputs are weighted in a model that calculates the expected cash flow of the security which is used as the basis of 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 a portion of our senior-subordinated trust structures using the single vendor valuation technique at the security level as a proxy for estimating loan fair value. This valuation technique estimates fair value based upon prices received from one specific vendor. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Internal Model: We estimate the fair value of a portion of our single-family nonperforming loans using the value of the underlying collateral. The inputs into this internal model include property level data such as prior sales prices, tax assessment values, property characteristics, and historical foreclosure sales data. This internal model takes one of two approaches when valuing foreclosed properties. The first approach relies on comparable foreclosed property sales, where the value of the target property is the weighted average price of comparable foreclosed property sales. The weights in the comparable sales approach are determined by various factors such as geographic distance, transaction time, and the value difference. The second approach relies on model calibrations that consider the target property’s attributes such as prior sales prices, tax assessment values, and property characteristics to derive the foreclosed property values. In the second approach, we build separate predictive models for each Metropolitan Statistical Area (“MSA”). Specifically, we use data on prior sales prices, tax assessment values, property characteristics, and historical foreclosure sales to calibrate the models in each MSA. We can use the available data about that property and our MSA-level model to estimate the fair value for a given property. The majority of the internal model valuations come from the comparable sales approach. The determination of whether the internal model valuations in a particular geographic area should use the comparable sales approach or model calibration is based on the quarterly evaluation of these two approaches for valuation accuracy. The unobservable inputs used in this technique include model weights based upon geographic distance, transaction time, and metropolitan statistics. When a physical address is not available, we estimate fair value using state-average foreclosed property values. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Appraisals: For a portion of our multifamily loans, we use appraisals to estimate the fair value of the loan. There are three approaches used to estimate fair value of a specific property: (1) cost, (2) income capitalization and (3) sales comparison. This technique uses an average of the three estimates. The cost approach uses the insurable value as a basis. The unobservable inputs used in this model include the estimated cost to construct or replace multifamily properties in the closest localities available. The income capitalization approach estimates the fair value using the present value of the future cash flow expectations by applying an appropriate overall capitalization rate to the forecasted net operating income. The significant unobservable inputs used in this calculation include rental income, fees associated with rental income, expenses associated with the property including taxes, payroll, insurance and other items, and capitalization rates, which are determined through market extraction and the debt service coverage ratio. The sales comparison approach compares the prices paid for similar properties, the prices asked by owners and offers made. The unobservable inputs to this methodology include ratios of sales prices to annual gross income, price paid per unit and adjustments made based on financing, conditions of sale, and physical characteristics of the property. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Broker Price Opinion (“BPO”): For a portion of our multifamily loans, we use BPO to estimate the fair value of the loan. This technique uses both current property value and the property value adjusted for stabilization and market conditions. These approaches compute net operating income based on current rents and expenses and use a range of market capitalization rates to estimate property value. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Asset Manager Estimate (“AME”): For a portion of our multifamily loans, AME is used to estimate the fair value of the loan. 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. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

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 the sensitivities of the fair value of mortgage loans classified as Level 3 of the valuation hierarchy to various unobservable inputs are discussed above in isolation, 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

Acquired property, net represents foreclosed property received in full satisfaction of a loan net of a valuation allowance. Acquired property is initially recorded in our consolidated balance sheets at its fair value less its estimated cost to sell. The initial fair value of foreclosed properties is determined using a hierarchy based on the reliability of available information. The hierarchy for single-family acquired property includes accepted offers, appraisals, broker price opinions and proprietary home price model values. The hierarchy for multifamily acquired property includes accepted offers, appraisals, and broker price opinions. We consider an accepted offer on a specific foreclosed property to be the best estimate of its fair value. If we have not accepted an offer on the property we use the highest available valuation methodology as described in our valuation hierarchy to determine fair value. While accepted offers represent an agreement in principle to transact, a significant portion of these agreements do not get executed for various reasons, and are therefore classified as Level 3 of the valuation hierarchy.

Third-party valuations can be obtained from either an appraisal or a broker price opinion. These valuations are kept current using a monthly walk forward process that updates them for any change in the value of the property. When accepted offers or third-party valuations are not available, we generally utilize the home price values determined using an internal model.

Subsequent to initial measurement, the foreclosed properties that we intend to sell are reported at the lower of the carrying amount or fair value less estimated costs to sell. Foreclosed properties classified as held for use, included in “Other Assets” in our consolidated balance sheets, are depreciated and impaired when circumstances indicate that the carrying amount of the property is no longer recoverable. The fair values of our single-family foreclosed properties subsequent to initial measurement are determined using the same information hierarchy used for the initial fair value measurement.

The most commonly used techniques in our valuation of acquired property are proprietary home price model and appraisals (both current and walk forward). Based on the number of properties measured as of December 31, 2012, these methodologies comprised approximately 78% of our valuations, while accepted offers comprised approximately 20% of our valuations.

Acquired property is classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

A description of our acquired property valuation techniques is as follows:

Single-family acquired property valuation techniques

Appraisal: An appraisal is an estimate of the value of a specific property by a certified or licensed appraiser, in accordance with the Uniform Standards of Professional Appraisal Practice. Data most commonly used is from the local Multiple Listing Service and includes properties currently listed for sale, properties under contract, and closed transactions. The appraiser performs an analysis that starts with these data points and then adjusts for differences between the comparable properties and the property being appraised, to arrive at an estimated value for the specific property. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. The appraiser typically uses recent historical data for the estimate of value.

Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s knowledge. The broker uses research of pertinent data in the appropriate market, and a sales comparison approach that is similar to the appraisal process. The broker typically has insight into local market trends, such as the number of and terms of offers, lack of offers, increasing supply, shortage of inventory and overall interest in buying a home. 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.

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. The majority of third-party values are updated by comparing the difference in our internal home price model from the month of the original appraisal/broker price opinion to the current period and by applying the resulting percentage change to the original value. If a price is not determinable through our internal home price model, we use our zip code level home price index to update the valuations.

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.”

Derivatives Assets and Liabilities (collectively “Derivatives”)

Derivatives are recorded in our consolidated balance sheets at fair value on a recurring basis. 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.

A description of our derivatives valuation techniques is as follows:

Internal Model: We use internal models to value interest rate swaps which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount swap cash flows to present value. Option-based derivatives use an internal model that projects the probability of various levels of interest rates by referencing swaption volatilities provided by market makers/dealers. The projected cash flows of the underlying swaps of these option-based derivatives are discounted to present value using yield curves derived from observable interest rates and spreads.

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.

Debt

The majority of debt of Fannie Mae is recorded in our consolidated balance sheets at the principal amount outstanding, net of cost basis adjustments. We elected the fair value option for certain structured debt instruments, which are recorded in our consolidated balance sheets at fair value on a recurring basis.

We use third-party pricing services that reference observable market data such as interest rates and spreads to measure the fair value of debt, and thus classify that debt as Level 2 of the valuation hierarchy.

A description of our debt valuation techniques is as follows:

Discounted Cash Flow: For structured debt instruments that are not valued by third-party pricing services, cash flows are evaluated taking into consideration any structured derivatives through which we have swapped out of the structured features of the notes. The resulting cash flows are discounted to present value using a yield curve derived from market prices observed for Fannie Mae Benchmark Notes and adjusted to reflect fair values at the offer side of the market. Market swaption volatilities are also referenced for the valuation of callable structured debt instruments. Since the derivatives considered in the valuations of these structured debt instruments are classified as Level 3 of the valuation hierarchy, the valuations of the structured debt instruments result in a Level 3 classification.

Consensus: Certain consolidated MBS debt with embedded derivatives is recorded in our consolidated balance sheets at fair value on a recurring basis. Consolidated MBS debt is traded in the market as MBS assets. Accordingly, we estimate the fair value of our consolidated MBS debt using quoted market prices in active markets for similar liabilities when traded as assets. For a portion of our senior-subordinated trust structures, we estimate the fair value using the average of two or more vendor valuation techniques at the security level as a proxy for estimating debt fair value. This valuation technique estimates fair value based upon prices received from more than one vendor. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Single Vendor: Certain consolidated MBS debt with embedded derivatives is recorded in our consolidated balance sheets at fair value on a recurring basis. Consolidated MBS debt is traded in the market as MBS assets. Accordingly, we estimate the fair value of our consolidated MBS debt using quoted market prices in active markets for similar liabilities when traded as assets. For a portion of our senior-subordinated trust structures, we estimate the fair value using the single vendor valuation technique at the security level as a proxy for estimating debt fair value. This valuation technique estimates fair value based upon prices received from one specific vendor. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Cash Equivalents, Trading Securities and Available-for-Sale Securities.” These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.

Valuation Control Processes

We have control processes that are designed to ensure that our fair value measurements are appropriate and reliable, that they are based on observable inputs wherever possible and that our valuation approaches are consistently applied and the assumptions used are reasonable. Our control processes consist of a framework that provides for a segregation of duties and oversight of our fair value methodologies and valuations, as well as validation procedures.

The Pricing Group within our Finance Division is responsible for estimating the fair value of the majority of our financial assets and financial liabilities. These fair values are verified by our Price Verification Group, which is a control group separate from the group responsible for obtaining prices. Our Modeling and Analytics Group develops models that are used in estimating the fair value of assets and liabilities for financial reporting purposes. In addition, our Model Oversight Committee (“MOC”) facilitates the cross-functional coordination and effectiveness of our modeling efforts in terms of research, model use and risk governance. The MOC is comprised of senior representatives from Underwriting and Pricing, Capital Markets, Credit Portfolio Management, Enterprise Risk Management, Finance and Modeling & Analytics and is chaired by our Chief Risk Officer. Our Model Risk Oversight Group is responsible for establishing risk management controls and for reviewing, validating and approving models used in the determination of fair value measurements for financial reporting. Fair value measurements for acquired property and collateral dependent loans are determined by other valuation groups in the Finance division.

Our Valuation Oversight Committee (“VOC”) includes senior representation from our Capital Markets segment, our Enterprise Risk Office and our Finance division, and is responsible for providing overall governance for our valuation processes and results. The composition of the VOC is determined by the VOC chair, our Chief Financial Officer, with the objective of obtaining appropriate representation from Finance, Enterprise Risk Management and select business units within Fannie Mae. Based on its review of valuation methodologies and fair value results for various financial instruments used for financial reporting, the VOC is responsible for advising the VOC chair, who has the ultimate responsibility over all valuation processes and results. The VOC also reviews trend analysis for various financial assets and liabilities on a quarterly basis.

We use third-party vendor prices and dealer quotes to estimate fair value of some of our financial assets and liabilities. Third-party vendor prices are primarily used to estimate fair value for trading securities, available-for-sale securities, debt of Fannie Mae, and consolidated MBS debt. Our Pricing Group performs various review and validation procedures prior to utilizing these prices in our fair value estimation process. We verify selected prices, using a variety of methods, including corroborating the prices by reference to other independent market data, such as non-binding broker or dealer quotations, relevant benchmark indices, and prices of similar instruments. We also review prices for reasonableness based on variations from prices provided in previous periods, comparing prices to internally estimated prices, using primarily a discounted cash flow approach, and conducting relative value comparisons based on specific characteristics of securities.

We have discussions with the pricing services as part of our due diligence process in order to maintain a current understanding of the valuation processes and related assumptions and inputs that these vendors use in developing prices. The prices provided to us by third-party pricing services reflect the existence of market reliance upon credit enhancements, if any, and the current lack of liquidity in the marketplace. If we determine that a price provided to us is outside established parameters, we will further examine the price, including having follow-up discussions with the pricing service or dealer. If we conclude that a price is not valid, we will adjust the price for various factors, such as liquidity, bid-ask spreads and credit considerations. All of these procedures are executed before we use the prices in preparing our financial statements.

Our Price Verification Group is responsible for performing monthly independent price verification, primarily related to financial assets and financial liabilities that are priced by our Pricing Group. This is generally accomplished by comparing the value that the Price Verification Group obtains through its own sources and methods with values provided by the Pricing Group. Alternatively, the Price Verification Group may perform reviews of the assumptions used by the Pricing Group to estimate the fair value of products we hold that have material estimation risk because observable market-based inputs do not exist. This group provides an update to the VOC on results, relevant market information and pricing trends, and significant valuation challenges and resolution of those challenges with the Pricing Group on a quarterly basis.

We have an internal property valuation function that utilizes an internal model to compare the values received on a property and assign a risk rating based on several factors including the deviation between the various values. Property valuations with risk ratings above a specified threshold are reviewed for reasonableness by a team of property valuation experts. The internal model that is used to assign a risk rating and the threshold specified is subject to VOC oversight. In addition, our Quality Control Group reviews the overall work performed and inspects a portion of the properties in major markets, for which the third-party valuations are obtained, in order to assess the quality of the valuations.

We calibrate the performance of our proprietary distressed home price model using actual offers in recently observed transactions. The model’s performance is reviewed on a monthly basis by the REO valuation team and compared quarterly to specific model performance thresholds. The results of the validation are regularly reviewed with the VOC.

Our Appraisal Review Group reviews appraisals to determine whether they have been performed in accordance with appraisal standards and the results are consistent with our observed transactions on similar properties. We and/or third-party servicers review broker price opinions to determine whether the values provided are consistent with our observed transactions on similar properties. We conduct quarterly portfolio reviews, annual audits and periodic reviews of the counterparties that provide services to review broker price opinions. In addition, valuation results and trend analyses are reviewed at least monthly by REO management.

Fair Value of Financial Instruments

The following table displays the carrying value and estimated fair value of our financial instruments as of December 31, 2012 and 2011. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans, which are off-balance sheet financial instruments 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 certain financial instruments, such as plan obligations for pension and postretirement health care benefits, employee stock option and stock purchase plans, and also excludes all non-financial instruments. As a result, 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, 2012															December 31, 2011
	Carrying Value		Quoted Price in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Netting Adjust-ment			Estimated Fair Value		Carrying Value		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents and restricted cash	$	89,036		$	75,786	$	13,250		$	—	$	—		$	89,036	$	68,336	$	68,336
Federal funds sold and securities purchased under agreements to resell or similar arrangements	32,500			—		32,500			—		—			32,500		46,000		46,000
Trading securities	40,695			17,950		20,459			2,286		—			40,695		74,198		74,198
Available-for-sale securities	63,181			—		38,147			25,034		—			63,181		77,582		77,582
Mortgage loans held for sale	464			—		267			208		—			475		311		325
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	305,025			—		39,018			232,170		—			271,188		322,825		294,996
Of consolidated trusts	2,643,917			—		2,528,004			234,424		—			2,762,428		2,575,485		2,652,025
Mortgage loans held for investment	2,948,942			—		2,567,022			466,594		—			3,033,616		2,898,310		2,947,021
Advances to lenders	7,592			—		6,936			572		—			7,508		5,538		5,420
Derivative assets at fair value	435			—		16,051			175		(15,791		)	435		561		561
Guaranty assets and buy-ups	327			—		—			692		—			692		503		901
Total financial assets	$	3,183,172		$	93,736	$	2,694,632		$	495,561	$	(15,791	)	$	3,268,138	$	3,171,339	$	3,220,344

Financial liabilities:
Short-term debt:
Of Fannie Mae	$	105,233		$	—	$	105,253		$	—	$	—		$	105,253	$	146,752	$	146,782
Of consolidated trusts	3,483			—		—			3,483		—			3,483		4,973		4,973
Long-term debt:
Of Fannie Mae	510,631			—		534,516			1,056		—			535,572		585,692		613,983
Of consolidated trusts	2,570,170			—		2,685,008			16,171		—			2,701,179		2,452,455		2,596,657
Derivative liabilities at fair value	705			—		22,590			161		(22,046		)	705		916		916
Guaranty obligations	599			—		—			3,113		—			3,113		811		3,944
Total financial liabilities	$	3,190,821		$	—	$	3,347,367		$	23,984	$	(22,046	)	$	3,349,305	$	3,191,599	$	3,367,255

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 (exclusive of dollar roll repurchase transactions).

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 liquid collateral. Were we to calculate the fair value of these instruments we would use observable inputs resulting in Level 2 classification.

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” and these loans are classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that significant inputs are unobservable, the loans are classified within Level 3 of the valuation hierarchy.

Advances to Lenders—The carrying value for the majority of our advances to lenders approximates fair value due to the short-term nature and the negligible inherent credit risk. Were we 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 for which the carrying value does not approximate fair value. These loans do not qualify for Fannie Mae MBS securitization and are valued using market-based techniques including credit spreads, severities and prepayment speeds for similar loans, through third-party pricing services or through a model approach incorporating both interest rate and credit risk simulating a loan sale via a synthetic structure. We classify these valuations as Level 3 given that significant inputs are not observable or are determined by extrapolation of observable points.

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 within Level 3 of the valuation hierarchy. 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 classified within Level 3 of the fair value hierarchy.

We estimate the fair value of guaranty assets based on the present value of expected future cash flows of the underlying mortgage assets using management’s best estimate of certain key assumptions, which include prepayment speeds, forward yield curves, and discount rates commensurate with the risks involved. These cash flows are projected using proprietary prepayment, interest rate and credit risk models. Because guaranty assets are like an interest-only income stream, the projected cash flows from our guaranty assets are discounted using one-month LIBOR plus an option-adjusted spread that is calibrated using a representative sample of interest-only swaps that reference Fannie Mae MBS. We believe the remitted fee income is less liquid than interest-only swaps and more like an excess servicing strip. We take a further discount of the present value for these liquidity considerations. This discount is based on market quotes from dealers.

The fair value of the guaranty assets includes the fair value of any associated buy-ups, which is estimated in the same manner as guaranty assets but is recorded separately as a component of “Other assets” in our consolidated balance sheets.

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. These obligations are classified within Level 3. The valuation methodology and inputs used in estimating the fair value of the guaranty obligation are described under “Fair Value Measurement—Mortgage Loans Held for Investment, Build-up.”

HARP Loans—We measure the fair value of 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 GSE securitization market. For a description of the build-up valuation methodology, refer to “Fair Value Measurement—Mortgage Loans Held for Investment.” We will continue to use this pricing methodology as long as the HARP program is available to market participants. If, subsequent to delivery, the refinanced loan becomes past due or is modified as a part of a troubled debt restructuring, the fair value of the guaranty obligation is then measured consistent with other loans that have these characteristics.

The total compensation that we receive for the delivery of a HARP loan reflects the pricing that we are willing to offer because HARP is a part of a broader government program intended to provide assistance to homeowners and prevent foreclosures. If these benefits were not reflected in the pricing for these loans (that is, if the loans were valued using our standard build-up approach), the fair value disclosed in the table above would be lower by $7.6 billion as of December 31, 2012. The total fair value of the loans in our portfolio that have been refinanced under HARP as of December 31, 2012 as presented in the table above is $255.2 billion. In the three months ended December 31, 2012, we revised how we categorize our loans to reflect all loans with LTV ratios at origination in excess of 80% as HARP loans. Previously we did not categorize loans that were backed by second homes or investor properties as HARP loans.

Fair Value Option

We elected the fair value option for loans which contain embedded derivatives that would otherwise require bifurcation. Under the fair value option, we elected to carry these instruments at fair value instead of bifurcating the embedded derivative from the respective loan.

We elected the fair value option for all long-term structured debt instruments that are issued in response to specific investor demand and have interest rates that are based on a calculated index or formula and are economically hedged with derivatives at the time of issuance. By electing the fair value option for these instruments, we are able to eliminate the volatility in our results of operations that would otherwise result from the accounting asymmetry created by recording these structured debt instruments at cost while recording the related derivatives at fair value.

We elected the fair value option for the financial assets and liabilities of the consolidated senior-subordinate trust structures. By electing the fair value option for these instruments, we are able to eliminate the volatility in our results of operations that would otherwise result from different accounting treatment between loans at cost and debt at cost.

Interest income for the mortgage loans is recorded in “Mortgage loans interest income” and interest expense for the debt instruments is recorded in “Long-term debt interest expense” in our consolidated statements of operations and comprehensive income (loss).

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, 2012 and 2011.



		As of
		December 31, 2012									December 31, 2011
	Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾			Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾
		(Dollars in millions)
Fair value		$	10,800		$	793		$	11,647		$	3,611		$	838		$	3,939
Unpaid principal balance		10,657			674			10,803			4,122			712			4,012

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $273 million and $195 million as of December 31, 2012 and 2011, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of December 31, 2012 and 2011 is $189 million and $232 million, respectively. Includes loans that are 90 days or more past due with a fair value of $386 million and $310 million as of December 31, 2012 and 2011, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of December 31, 2012 and 2011 is $201 million and $262 million, respectively.


⁽²⁾	Includes interest-only debt instruments with no unpaid principal balance and a fair value of $100 million and $115 million as of December 31, 2012 and 2011, respectively.

Changes in Fair Value under the Fair Value Option Election

The following table displays fair value gains and losses, net, including changes attributable to instrument-specific credit risk, for loans and debt for which the fair value election was made. Amounts are recorded as a component of “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012											2011										2010
	Loans			Long-Term Debt				Total Losses				Loans			Long-Term Debt				Total Losses			Loans			Long-Term Debt				Total Losses
	(Dollars in millions)
Changes in instrument-specific credit risk	$	(25	)		$	(13	)		$	(38	)	$	(215	)		$	10		$	(205	)	$	(58	)		$	(9	)	$	(67	)
Other changes in fair value	(124		)		(76		)		(200		)	79				(92		)	(13		)	(73		)		14			(59		)
Fair value (losses) gains, net	$	(149	)		$	(89	)		$	(238	)	$	(136	)		$	(82	)	$	(218	)	$	(131	)		$	5		$	(126	)

In determining the changes in the instrument-specific credit risk for loans, the changes in the associated credit-related components of these loans, primarily the guaranty obligation, were taken into consideration with the overall change in the fair value of the loans for which we elected the fair value option for financial instruments. In determining the changes in the instrument-specific credit risk for debt, the changes in Fannie Mae debt spreads to LIBOR that occurred during the period were taken into consideration with the overall change in the fair value of the debt for which we elected the fair value option for financial instruments. Specifically, cash flows are evaluated taking into consideration any derivatives through which Fannie Mae has swapped out of the structured features of the notes and thus created a floating-rate LIBOR-based debt instrument. The change in value of these LIBOR-based cash flows based on the Fannie Mae yield curve at the beginning and end of the period represents the instrument-specific risk.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

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.

On a quarterly and annual basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, reserves and disclosures.

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 trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel view the evidence and applicable law. Further, FHFA adopted a regulation in 2011, which provides, in part, that while we are in conservatorship, FHFA will not pay claims by our current or former shareholders, unless the Director of FHFA determines it is in the interest of the conservatorship. The presence of this regulation and the Director of FHFA’s assertion that FHFA will not pay claims asserted in certain cases discussed below while we are in conservatorship creates additional uncertainty in those cases.

We establish a reserve for those matters when a loss is probable and we can reasonably estimate the amount of such loss. Reserves have been established for certain of the matters noted below. These reserves did not have a material adverse effect on our financial statements. We note, however, that in light of the uncertainties involved in such actions and proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves we have currently accrued.

For the remaining legal actions or proceedings, including those where there is only a reasonable possibility that a loss may be incurred, we are not currently able to estimate the reasonably possible losses or ranges of losses and we have not established a reserve with respect to those actions or proceedings. 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 substantial or indeterminate damages, where there may be novel or unsettled legal questions relevant to the proceedings, or where settlement negotiations have not occurred or progressed. Further, as noted above, FHFA’s regulation and the Director of FHFA’s assertion creates additional uncertainty with respect to certain cases.

Given the uncertainties involved in any action or proceeding, regardless of whether we have established a reserve, 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. Based on our current knowledge with respect to the matters described below, we believe we have valid defenses to the claims in these proceedings and intend to defend these matters vigorously regardless of whether or not we have recorded a loss reserve.

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 advanced fees and expenses of certain current and former officers and directors in connection with various legal proceedings pursuant to indemnification agreements.

In re Fannie Mae Securities Litigation

Fannie Mae is a defendant in a consolidated class action lawsuit initially filed in 2004 and currently pending in the U.S. District Court for the District of Columbia. In the consolidated complaint filed in 2005, lead plaintiffs Ohio Public Employees Retirement System and State Teachers Retirement System of Ohio allege that we and certain former officers, as well as our former outside auditor, made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder. Plaintiffs contend that Fannie Mae’s accounting statements were inconsistent with GAAP requirements relating to hedge accounting and the amortization of premiums and discounts, and seek unspecified compensatory damages, attorneys’ fees, and other fees and costs. On January 7, 2008, the court defined the class as all purchasers of Fannie Mae common stock and call options and all sellers of publicly traded Fannie Mae put options during the period from April 17, 2001 through December 22, 2004. On October 17, 2008, FHFA, as conservator for Fannie Mae, intervened in this case. In 2011, the parties filed various motions for summary judgment. On September 20, 2012, the court granted summary judgment to defendant Franklin D. Raines, Fannie Mae’s former Chief Executive Officer, on all claims against him. On October 16, 2012, the court granted summary judgment to defendant J. Timothy Howard, Fannie Mae’s former Chief Financial Officer, on all claims against him. On November 20, 2012, the court granted summary judgment to defendant Leanne Spencer, Fannie Mae’s former Controller, on all claims against her. The other motions for summary judgment remain pending.

As discussed above, FHFA adopted a regulation in 2011, that provides in part that while we are in conservatorship, FHFA will not pay claims by our current or former shareholders, unless the Director of FHFA determines it is in the interest of the conservatorship. FHFA’s regulation has been challenged by lead plaintiffs in a separate lawsuit also pending in the U.S. District Court for the District of Columbia.

In September and December 2010, plaintiffs served expert reports claiming damages to plaintiffs under various scenarios ranging cumulatively from $2.2 billion to $8.6 billion. Given the substantial and novel legal questions that remain, including those raised by FHFA’s regulation and the Director of FHFA’s determination, we are currently unable to estimate the reasonably possible loss or range of loss arising from this litigation.

2008 Class Action Lawsuits

Fannie Mae is a defendant in two consolidated class actions filed in 2008 and currently pending in the U.S. District Court for the Southern District of New York—In re Fannie Mae 2008 Securities Litigation and In re 2008 Fannie Mae ERISA Litigation. On February 11, 2009, the Judicial Panel on Multidistrict Litigation ordered that the cases be coordinated for pretrial proceedings.

In re Fannie Mae 2008 Securities Litigation

In a consolidated amended complaint filed on June 22, 2009, lead plaintiffs Massachusetts Pension Reserves Investment Management Board and Boston Retirement Board (for common shareholders) and Tennessee Consolidated Retirement System (for preferred shareholders) allege that we, certain of our former officers, and certain of our underwriters violated Sections 12(a)(2) and 15 of the Securities Act of 1933. Lead plaintiffs also allege that we, certain of our former officers, and our outside auditor, violated Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934. Lead plaintiffs seek various forms of relief, including rescission, damages, interest, costs, attorneys’ and experts’ fees, and other equitable and injunctive relief. On October 13, 2009, the Court entered an order allowing FHFA to intervene.

In 2009, the Court granted the defendants’ motion to dismiss the Securities Act claims as to all defendants. In 2010, the Court granted in part and denied in part the defendants’ motions to dismiss the Securities Exchange Act claims. As a result of the partial denial, some of the Securities Exchange Act claims remained pending against us and certain of our former officers. Fannie Mae filed its answer to the consolidated complaint on December 31, 2010. In 2011, lead plaintiffs filed motions to certify a class of persons who, between November 8, 2006 and September 5, 2008, inclusive, purchased or acquired (a) Fannie Mae common stock and options or (b) Fannie Mae preferred stock.

Plaintiffs filed a second amended joint consolidated class action complaint on March 2, 2012 and added FHFA as a defendant. On August 30, 2012, the court denied defendants’ motions to dismiss the second amended complaint, allowing plaintiffs’ Securities Exchange Act claims premised on Fannie Mae’s subprime and Alt-A disclosures to proceed along with plaintiffs’ claims premised on Fannie Mae’s risk management disclosures. Fannie Mae filed its answer to the second amended complaint on October 29, 2012. Discovery is ongoing.

Given the stage of this lawsuit, the absence of a specified demand or claim by the plaintiff, and the substantial and novel legal questions that remain, we are currently unable to estimate the reasonably possible loss or range of loss arising from this litigation.

In re 2008 Fannie Mae ERISA Litigation

In a consolidated complaint filed in 2009, plaintiffs allege that certain of our current and former officers and directors, including former members of Fannie Mae’s Benefit Plans Committee and the Compensation Committee of Fannie Mae’s Board of Directors, as fiduciaries of Fannie Mae’s Employee Stock Ownership Plan (“ESOP”), breached their duties to ESOP participants and beneficiaries by investing ESOP funds in Fannie Mae common stock when it was no longer prudent to continue to do so. Plaintiffs purport to represent a class of participants and beneficiaries of the ESOP whose accounts invested in Fannie Mae common stock beginning April 17, 2007. The plaintiffs seek unspecified damages, attorneys’ fees and other fees and costs, and injunctive and other equitable relief. On February 1, 2012, plaintiffs sought leave to amend their complaint to add new factual allegations and the court granted plaintiffs’ motion. Plaintiffs filed an amended complaint on March 2, 2012 adding two current Board members and then-CEO Michael J. Williams as defendants. On October 22, 2012, the court granted in part and denied in part defendants’ motions to dismiss. The court dismissed with prejudice claims against seven former and current directors and officers who joined the Board of Directors or Benefit Plans Committee after Fannie Mae was placed into conservatorship. The court allowed plaintiffs’ breach of fiduciary duty and failure to monitor claims to go forward, but dismissed plaintiffs’ conflict of interest claim. Discovery is ongoing.

Comprehensive Investment Services v. Mudd, et al.

This individual securities action was originally filed on May 13, 2009, by plaintiff Comprehensive Investment Services, Inc. against certain of our former officers and directors, and certain of our underwriters in the U.S. District Court for the Southern District of Texas. On July 7, 2009, this case was transferred to the Southern District of New York for coordination with In re Fannie Mae 2008 Securities Litigation and In re 2008 Fannie Mae ERISA Litigation. Plaintiff filed an amended complaint on May 11, 2011 against us, certain of our former officers, and certain of our underwriters. The amended complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder; violations of Section 20(a) of the Securities Exchange Act of 1934; and violations of the Texas Business and Commerce Code, common law fraud, and negligent misrepresentation in connection with Fannie Mae’s May 2008 $2.0 billion offering of 8.25% non-cumulative preferred Series T stock. Plaintiff seeks relief in the form of rescission, actual damages, punitive damages, interest, costs, attorneys’ and experts’ fees, and other equitable and injunctive relief. Plaintiff filed a second amended complaint on March 2, 2012. On August 30, 2012, the court denied defendants’ motions to dismiss the second amended complaint, allowing plaintiff’s Securities Exchange Act claims premised on Fannie Mae’s subprime and Alt-A disclosures and risk management disclosures to proceed. The court granted defendants’ motions to dismiss the state law claims, as well as the federal claims based on alleged violations of GAAP, and also dismissed two of our former officers from the action. On October 10, 2012, the court denied plaintiff’s motion for reconsideration of the court’s order dismissing plaintiff’s state law claims against certain underwriters of Fannie Mae’s Series T preferred stock. Fannie Mae filed its answer to the amended complaint on October 29, 2012. Discovery is ongoing.

Smith v. Fannie Mae, et al.

This individual securities action was originally filed on February 25, 2010, by plaintiff Edward Smith against Fannie Mae and certain of its former officers as well as several underwriters in the U.S. District Court for the Central District of California. On April 12, 2010, this case was transferred to the Southern District of New York for coordination with In re Fannie Mae 2008 Securities Litigation and In re 2008 Fannie Mae ERISA Litigation. Plaintiff filed an amended complaint on April 19, 2011, which alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder; violations of Section 20(a) of the Securities Exchange Act of 1934; common law fraud and negligence claims; and California state law claims for misrepresentation in connection with Fannie Mae’s December 2007 $7.0 billion offering of 7.75% fixed-to-floating rate non-cumulative preferred Series S stock. Plaintiff seeks relief in the form of rescission, actual damages (including interest), and exemplary and punitive damages. Plaintiff filed a second amended complaint, allowing plaintiff’s Securities Exchange Act claims premised on Fannie Mae’s subprime and Alt-A disclosures and risk management disclosures to proceed, but granted defendants’ motions to dismiss the state law claims. On October 10, 2012, the court denied plaintiff’s motion for reconsideration of the court’s order dismissing plaintiff’s state law claims against certain underwriters of Fannie Mae’s Series S preferred stock. Fannie Mae filed its answer to the amended complaint on October 29, 2012. Discovery is ongoing.

Transfer Tax Litigation

A number of lawsuits have been filed against us in multiple states challenging our right to claim an exemption under our charter from transfer taxes in connection with the recordation of deeds upon transfers of real property by sale or foreclosure. The plaintiffs in several of these lawsuits seek to represent a nationwide class of localities. In addition, we have filed a lawsuit against the state of Illinois and four counties seeking a judgment that we are exempt from these transfer taxes. If any of these lawsuits are decided against us, we may be required to pay past transfer taxes, damages, fees and/or costs. Although we believe that our charter provides us with an exemption from these taxes and therefore we have a valid defense in these lawsuits, in March 2012 a federal district court in Michigan held in two cases that we are not exempt from Michigan transfer taxes under our charter. We, along with FHFA and Freddie Mac, filed a Petition for Permission to Appeal the two Michigan decisions with the U.S. Court of Appeals for the Sixth Circuit, which was granted on September 5, 2012. The appeal is fully briefed. Since these two adverse rulings in Michigan, a number of courts have agreed with our position that we are exempt from these transfer taxes under our charter. We do not expect the outcome of these lawsuits to have a material impact on our results of operations or financial condition.

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. Unfunded lending represents off-balance sheet commitments for the unutilized portion of lending agreements entered into with multifamily borrowers.

We lease certain premises and equipment under agreements that expire at various dates through 2029. 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 $41 million, $40 million and $35 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The following table summarizes by remaining maturity, non cancelable future commitments related to loan and mortgage purchases, unfunded lending, operating leases, and other agreements as of December 31, 2012.



	As of December 31, 2012
	Loans and Mortgage-Related Securities⁽¹⁾			Unfunded Lending			Operating Leases			Other⁽²⁾
	(Dollars in millions)
2013		$	65,309		$	11		$	35		$	51
2014		1			1			34			50
2015		—			4			30			22
2016		—			—			24			21
2017		—			—			22			1
Thereafter		—			—			9			—
Total		$	65,310		$	16		$	154		$	145

__________


⁽¹⁾	Includes $64.7 billion that has been accounted for as mortgage commitment derivatives.


⁽²⁾	Includes purchase commitments for certain telecom services, computer software and services, and other agreements.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Information (Unaudited)

The consolidated statements of operations for the quarterly periods in 2012 and 2011 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. 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 2012 Quarter Ended
	March 31				June 30				September 30				December 31
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	449			$	73			$	234			$	233
Available-for-sale securities		727				1,035				789				748
Mortgage loans		32,570				32,023				30,593				29,520
Other		38				40				53				65
Total interest income		33,784				33,171				31,669				30,566
Interest expense:
Short-term debt		42				32				38				40
Long-term debt		28,545				27,711				26,314				24,967
Total interest expense		28,587				27,743				26,352				25,007
Net interest income		5,197				5,428				5,317				5,559
(Provision) benefit for credit losses⁽¹⁾		(2,000		)		3,041				(2,079		)		1,890
Net interest income after (provision) benefit for credit losses		3,197				8,469				3,238				7,449
Investment gains, net		116				131				134				106
Other-than-temporary impairments		(80		)		(196		)		(17		)		(18		)
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)		16				(403		)		(21		)		6
Net other-than-temporary impairments		(64		)		(599		)		(38		)		(12		)
Fair value gains (losses), net		283				(2,449		)		(1,020		)		209
Debt extinguishment losses, net		(34		)		(93		)		(54		)		(63		)
Fee and other income		375				395				378				339
Non-interest income (loss)		676				(2,615		)		(600		)		579
Administrative expenses:
Salaries and employee benefits		306				292				294				303
Professional services		168				179				195				224
Occupancy expenses		43				48				48				49
Other administrative expenses		47				48				51				72
Total administrative expenses		564				567				588				648
Foreclosed property expense (income)		339				(70		)		(48		)		(475		)
Other expenses		252				238				285				285
Total expenses		1,155				735				825				458
Net income		2,718				5,119				1,813				7,570
Less: Net loss (income) attributable to noncontrolling interest		1				(5		)		8				—
Net income attributable to Fannie Mae		2,719				5,114				1,821				7,570
Preferred stock dividends		(2,817		)		(2,929		)		(2,929		)		(2,928		)
Undistributed earnings available for distribution to senior preferred stockholder		—				—				—				(4,224		)
Net (loss) income attributable to common stockholders (Note 11)		$	(98	)		$	2,185			$	(1,108	)		$	418
(Loss) earnings per share:
Basic		$	(0.02	)		$	0.38			$	(0.19	)		$	0.07
Diluted		(0.02		)		0.37				(0.19		)		0.07
Weighted-average common shares outstanding:
Basic		5,761				5,762				5,762				5,762
Diluted		5,761				5,893				5,762				5,893

__________


⁽¹⁾	Includes out-of-period adjustments of $548 million, $503 million, $850 million, and $172 million which increased our provision for credit losses for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively.




	For the 2011 Quarter Ended
	March 31				June 30				September 30				December 31⁽¹⁾
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	284			$	264			$	274			$	265
Available-for-sale securities		1,213				1,152				1,160				(248		)
Mortgage loans		35,590				35,333				34,334				33,205
Other		28				25				26				38
Total interest income		37,115				36,774				35,794				33,260
Interest expense:
Short-term debt		107				81				66				56
Long-term debt		32,048				31,721				30,542				29,041
Total interest expense		32,155				31,802				30,608				29,097
Net interest income		4,960				4,972				5,186				4,163
Provision for credit losses		(10,554		)		(6,537		)		(4,151		)		(5,476		)
Net interest (loss) income after provision for credit losses		(5,594		)		(1,565		)		1,035				(1,313		)
Investment gains, net		75				171				73				187
Other-than-temporary impairments		(57		)		(28		)		(232		)		(297		)
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)		13				(28		)		(30		)		351
Net other-than-temporary impairments		(44		)		(56		)		(262		)		54
Fair value gains (losses), net		289				(1,634		)		(4,525		)		(751		)
Debt extinguishment gains (losses), net		13				(43		)		(119		)		(83		)
Fee and other income		237				265				291				370
Non-interest income (loss)		570				(1,297		)		(4,542		)		(223		)
Administrative expenses:
Salaries and employee benefits		320				310				323				283
Professional services		189				169				173				205
Occupancy expenses		42				43				46				48
Other administrative expenses		54				47				49				69
Total administrative expenses		605				569				591				605
Foreclosed property expense (income)		488				(478		)		733				37
Other expenses		352				32				254				228
Total expenses		1,445				123				1,578				870
Loss before federal income taxes		(6,469		)		(2,985		)		(5,085		)		(2,406		)
(Provision) benefit for federal income taxes		(2		)		93				—				(1		)
Net loss		(6,471		)		(2,892		)		(5,085		)		(2,407		)
Less: Net (income) loss attributable to noncontrolling interest		—				(1		)		—				1
Net loss attributable to Fannie Mae		(6,471		)		(2,893		)		(5,085		)		(2,406		)
Preferred stock dividends		(2,216		)		(2,282		)		(2,494		)		(2,622		)
Net loss attributable to common stockholders		$	(8,687	)		$	(5,175	)		$	(7,579	)		$	(5,028	)
Loss per share—Basic and Diluted		$	(1.52	)		$	(0.90	)		$	(1.32	)		$	(0.87	)
Weighted-average common shares outstanding—Basic and Diluted		5,698				5,730				5,760				5,760

__________


⁽¹⁾	Includes an out-of-period adjustment of $933 million comprised of $1.2 billion to reduce “Interest Income: Available-for-sale securities” offset by a $264 million reduction to “Other-than-temporary impairments” in our consolidated statement of operations and comprehensive loss for the three months ended December 31, 2011.

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

Segment Reporting, Policy [Policy Text Block]

Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

Repurchase Request Resolution Agreement

On January 6, 2013, we entered into an agreement (the “resolution agreement”) with Bank of America, N.A., Countrywide Home Loans, Inc., and other parties, each of which is an affiliate of Bank of America Corporation, to resolve certain repurchase requests arising from breaches of selling representations and warranties.

The resolution agreement resolved our outstanding and expected future repurchase requests arising from breaches of selling representations and warranties on specified single-family loans delivered to us by Bank of America and Countrywide that were originated between January 1, 2000 and December 31, 2008. The resolution agreement included the following components:


•	Bank of America made a cash payment to us of $3.6 billion related to repurchase requests in January 2013; and


•	Bank of America repurchased approximately 29,500 loans from us in January 2013 for an aggregate repurchase price of $6.6 billion, subject to a reconciliation process.

The resolution agreement also provided that:


•	We released Bank of America from current and future repurchase liability in connection with seller representations and warranties on the loans covered by the agreement, except for repurchase obligations arising out of specified excluded defects (for example, certain violations of our Charter Act);


•	We retained ownership of all of the loans covered by the agreement, other than the loans that Bank of America repurchased pursuant to the agreement and any additional loans that will be repurchased by Bank of America in the future due to an excluded defect;

•

Bank of America continues to be responsible for certain payments and related obligations with respect to mortgage insurance rescissions, cancellations and denials on the loans covered by the agreement, which obligations are in addition to the cash payment and the repurchase price described above. In January 2013, Bank of America made an initial cash payment of $518 million related to mortgage insurance claims; and


•	Bank of America continues to be responsible for its servicing, third-party indemnification and recourse obligations with respect to the loans covered by the agreement.

The resolution agreement addressed $11.3 billion of unpaid principal balance, or 97%, of our outstanding repurchase requests made to Bank of America as of December 31, 2012. Accordingly, the amount of our outstanding repurchase requests will decrease substantially in the three months ending March 31, 2013 as outstanding repurchase requests to Bank of America represent 73% of our total repurchase requests outstanding as of December 31, 2012.

The following table displays the impact of this agreement that we recognized in our consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2012.



	For the Year Ended
	December 31, 2012
	(Dollars in millions)
Net interest income		$	181
Benefit for credit losses		841
Foreclosed property income		106
Total		$	1,128

Below we describe the resolution agreement’s impact on our consolidated statement of operations and comprehensive income (loss).

As of December 31, 2012, we adjusted our allowance for loan losses to consider the net impact of the resolution agreement as it related to both the loans to be repurchased as well as the loans for which we retained ownership. For loans that Bank of America repurchased in accordance with the resolution agreement, we eliminated the associated allowance for loan losses as we no longer expected to incur any loss on them. For loans that we retained, we adjusted the estimated repurchase benefit in the allowance for loan losses to reflect only the compensation we would receive under the terms of the agreement. In addition, the loans that Bank of America repurchased that were on nonaccrual status before the settlement of the agreement were returned to accrual status as of December 31, 2012 to reflect the change in our assessment of collectibility, which resulted in additional net interest income for the year ended December 31, 2012.

For loans that had previously charged off, for the year ended December 31, 2012, we recognized foreclosed property income and a benefit for credit losses for cash received under the terms of the resolution agreement for which we had an outstanding repurchase request or mortgage insurance receivable as of December 31, 2012. The income recognized for the year ended December 31, 2012 relates to cash received for these receivables in excess of the amounts previously charged off.

Upon settlement of the resolution agreement in the three months ending March 31, 2013, the unamortized basis adjustments on the loans repurchased by Bank of America will be recognized into net interest income, resulting in additional net interest income. In addition, in the three months ending March 31, 2013 we expect to record foreclosed property income and a benefit for credit losses for cash received under the terms of the agreement for previously charged off loans for which we had no outstanding repurchase request as of December 31, 2012.

Compensatory Fee Resolution Agreement

On January 6, 2013, we and Bank of America entered into an agreement (the “compensatory fee agreement”) to resolve outstanding and certain future compensatory fees owed by Bank of America due to servicing delays. Bank of America made an initial payment to us of $1.3 billion in January 2013. Subsequent to the initial payment, we and Bank of America will complete a loan review process in 2013 as specified in the compensatory fee agreement to mutually determine the final amount of compensatory fees owed. For the year ended December 31, 2012, we recognized income of $203 million in “Foreclosed property (income) expense” in our consolidated statement of operations and comprehensive income (loss) as a result of the compensatory fee agreement. Any remaining amount will be recognized in 2013 once we have completed a sufficient portion of the loan review process to determine the final amount of income that will be received under the terms of the agreement.

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Basis of Presentation [Policy Text Block]

Basis of Presentation

Single-Family Guaranty Fees 10 Basis Points Increase due to the Temporary Payroll Tax Cut Continuation Act of 2011 Provision [Policy Text Block]

Effective April 1, 2012, the guaranty fee on all single-family residential mortgages delivered to Fannie Mae on or after that date for securitization was increased by 10 basis points. FHFA and Treasury have 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.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Consolidations, Policy [Policy Text Block]

Principles of Consolidation

Unconsolidated VIEs

We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include securitization trusts, as well as other investment entities.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

VIE Assessment

Primary Beneficiary Determination

Measurement of Consolidated Assets and Liabilities

Purchase/Sale of Fannie Mae Securities

Single-Class Securitization Trusts

Single-Class Resecuritization Trusts

Multi-Class Resecuritization Trusts

Transfers and Servicing of Financial Assets, Policy [Policy Text Block]

Transfers of Financial Assets

Qualifying Sales of Portfolio Securitizations

We recognize assets obtained and liabilities incurred in qualifying sales of portfolio securitizations at fair value.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents and Statements of Cash Flows

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

Marketable Securities, Policy [Policy Text Block]

Investments in Securities

Securities Classified as Available-for-Sale or Trading

Available-for-sale Securities, Policy [Policy Text Block]

Other-Than-Temporary Impairment of Debt Securities

Available-for-Sale Securities

Other-Than-Temporary Impairments

Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block]

Loans Held for Investment

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Loans Held for Sale

Nonaccrual Loans [Policy Text Block]

Nonaccrual Loans

Troubled Debt Restructurings [Policy Text Block]

Restructured Loans

Allowance for Loan Losses [Policy Text Block]

Allowance for Loan Losses and Reserve for Guaranty Losses

Impaired Financing Receivable, Policy [Policy Text Block]

Single-Family Loans

Individually Impaired Single-Family Loans

Multifamily Loans

Advances to Lenders [Policy Text Block]

Advances to Lenders

Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block]

Acquired Property, Net

Amortization of Cost Basis Adjustments [Policy Text Block]

Amortization of Cost Basis Adjustments

Commitments to Purchase and Sell Mortgage Loans and Securities [Policy Text Block]

Commitments to Purchase and Sell Mortgage Loans and Securities

Derivatives, Policy [Policy Text Block]


•	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.

Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block]

Derivatives, Embedded Derivatives [Policy Text Block]

Repurchase Agreements, Collateral, Policy [Policy Text Block]

Collateral

Cash Collateral

Non-Cash Collateral

Debt, Policy [Policy Text Block]

Debt

Interest Expense, Policy [Policy Text Block]

Income Tax, Policy [Policy Text Block]

Income Taxes

Income Tax Uncertainties, Policy [Policy Text Block]

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Pension and Other Postretirement Benefits

Earnings Per Share, Policy [Policy Text Block]

Earnings (Loss) per Share

Comprehensive Income, Policy [Policy Text Block]

Other Comprehensive Income (Loss)

Compensatory Fees, Policy [Policy Text Block]

Compensatory Fees

Reclassification, Policy [Policy Text Block]

Reclassifications

To conform to our current period presentation, we have reclassified certain amounts reported in our consolidated financial statements.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Guidance

Consolidations and Transfers of Financial Assets Consolidation and Transfer of Financial Assets (Policies)	12 Months Ended
	Dec. 31, 2012
Consolidations and Transfers of Financial Assets [Abstract]
Consolidations, Policy [Policy Text Block]	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 entities through arrangements that do not involve voting interests, such as a variable interest entity (“VIE”). We have interests in various entities that are considered to be VIEs. The primary types of entities are securitization trusts guaranteed by us via lender swap and portfolio securitization transactions, mortgage and asset-backed trusts that were not created by us, as well as housing partnerships that are established to finance the acquisition, construction, development or rehabilitation of affordable multifamily and single-family housing. These interests include investments in securities issued by VIEs, such as Fannie Mae MBS created pursuant to our securitization transactions and our guaranty to the entity. 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. Unconsolidated VIEs We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include securitization trusts, as well as other investment entities.
Transfers and Servicing of Financial Assets, Policy [Policy Text Block]	We evaluate a transfer of financial assets to determine whether the transfer qualifies as a sale. If the 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 such a transfer. Transfers of financial assets for which we surrender control of the transferred assets are recorded 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 proceeds from the sale is recorded as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss). Retained interests are primarily derived from transfers associated with our portfolio securitizations in the form of Fannie Mae MBS, REMIC certificates, guaranty assets and master servicing assets (“MSAs”). We separately describe the subsequent accounting, as well as how we determine fair value, for our retained interests in the Fannie Mae MBS included in “Investments in Securities” section of this note. We enter into dollar roll transactions, which involve contemporaneous purchase and sale trades of agency securities, traded on a “to-be-announced” basis. When we enter into such agreements, we first account for our forward commitments to buy and sell the agency securities as derivatives in our financial statements at the trade date for both the purchase and sales trades. For certain dollar roll transactions, we may fully or partially settle the forward purchase or sale subsequent to the trade date, but prior to the contractual settlement date such that all or a portion of the securities will not be delivered according to the terms of the original trade. When such a settlement occurs, the contemporaneous purchase and sale trades no longer meet the “substantially the same” criteria as necessary for secured financing treatment, and the remaining transfers are accounted for as purchases or sales of securities. Purchased securities are initially recognized at fair value and accounted for as described in “Investment in Securities” section of this note. For those commitments that are not settled prior to the contractual settlement date for the first trade, we assess whether both the purchase and sale trades have the same primary obligor, form and type, maturity, interest rate, collateral, and unpaid principal balance, and thus meet all of the criteria to be considered substantially the same. If the “substantially the same” criteria are met as of the settlement date for the first trade, we will account for the transaction as a secured financing and extinguish both the purchase and sale commitments as of that date. Dollar roll transactions involving transfers of securities issued by consolidated MBS trusts are accounted for as issuances or extinguishments of the related consolidated MBS debt in our consolidated financial statements. We also enter into other 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. 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 portfolio in a portfolio securitization transaction Qualifying Sales of Portfolio Securitizations As we consolidate the substantial majority of our single-class MBS trusts, these portfolio securitization transactions do not qualify for sale treatment. Therefore, 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.

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Disclosure of accounting policy for transfers and servicing financial assets, including securitization transactions as well as repurchase and resale agreements. This disclosure may include how the entity (1) determines whether a transaction is accounted for as a sale; (2) accounts for a sale transaction, including the initial and subsequent accounting for any interests that the entity obtains or continues to hold in the transaction, how such interests are valued, and the significant assumptions used in the valuation; (3) accounts for a transaction that does not qualify for sale treatment (that is, a financing); and (4) accounts for its servicing assets and liabilities ("servicing"), including how such servicing is measured initially and subsequently, and the methodology and significant assumptions used to value such servicing.

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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 30
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122625-111746

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 41
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-Subparagraph a, b, c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 17
-Subparagraph e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph B6-B12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 9-15, 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Mortgage Loans Mortgage Loans Policy (Policies)	12 Months Ended
Mortgage Loans Mortgage Loans Policy (Policies)	Dec. 31, 2012
Mortgage Loans on Real Estate [Abstract]
Troubled Debt Restructurings [Policy Text Block]	Restructured Loans A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties 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 below market 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 do not currently include principal or past due interest forgiveness as part of our loss mitigation programs, and as a result, we 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 provide us reasonable assurance regarding the collectibility of the principal and interest due in accordance with the loan’s modified terms, which include any past due interest amounts that are capitalized 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. In addition to these loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans, forbearance arrangements, and the capitalization only of past due amounts. Repayment plans and forbearance arrangements are informal agreements with the borrower that do not result in the legal modification of the loan. 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, the delay is no longer considered insignificant, and the restructuring is accounted for as a TDR. We measure impairment of a loan restructured in a TDR individually based on the excess of the recorded investment in the loan over the present value of the expected future cash inflows discounted at the loan’s original effective interest rate. Costs incurred to complete a TDR are expensed as incurred. However, when foreclosure is probable on an individually impaired loan, we measure impairment based on the difference between our recorded investment in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive. 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.

Investments in Securities Investment in Securities Policies (Policies)	12 Months Ended
	Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]
Trading Securities, Policy [Policy Text Block]	Trading Securities Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value losses, net” in our consolidated statements of operations and comprehensive income (loss).
Available-for-sale Securities, Policy [Policy Text Block]	Other-Than-Temporary Impairment of Debt Securities We evaluate available-for-sale securities for other-than-temporary impairment on a quarterly basis. An other-than-temporary impairment is considered to have occurred when the fair value of a debt security is below its amortized cost basis and we intend to sell or it is more likely than not that we will be required to sell the security before recovery. We recognize in our consolidated statements of operations and comprehensive income (loss), the entire difference between the amortized cost basis of the security and its fair value. An other-than-temporary impairment is also considered to have occurred if we do not expect to recover the entire amortized cost basis of a debt security even if we do not intend or it is not more likely than not we will be required to sell the security before recovery. We separate the difference between the amortized cost basis of the security and its fair value into the amount representing the credit loss, which we recognize in our consolidated statements of operations and comprehensive income (loss), and the amount related to all other factors, which we recognize in “Other comprehensive income (loss),” net of applicable taxes. In determining whether a credit loss exists, we use our best estimate of cash flows expected to be collected from the debt security. We consider guarantees, insurance contracts or other credit enhancements (such as collateral) in determining our best estimate of cash flows expected to be collected only if (1) such guarantees, insurance contracts or other credit enhancements provide for payments to be made solely to reimburse us for failure of the issuer to satisfy its required payment obligations, (2) such guarantees, insurance contracts or other credit enhancements are contractually attached to the security and (3) collection of the amounts receivable under these agreements is deemed probable. Guarantees, insurance contracts or other credit enhancements are considered contractually attached if they are part of and trade with the security upon transfer of the security to a third party. In periods after we recognize an other-than-temporary impairment of debt securities, we use the prospective interest method to recognize interest income. Under the prospective interest method, we calculate a new effective yield for subsequent recognition of interest income and measurement of impairment when we determine that there has been a significant increase in expected or actual cash flows. We consider a significant increase in cash flows to be at least a ten percent increase over two consecutive quarters of the expected or actual cash flows. We calculate the new effective yield by using the new cost basis and the significantly increased actual or expected cash flows. Available-for-Sale Securities We measure AFS securities at fair value with unrealized gains and losses recorded net of tax as a component of “Other comprehensive income (loss)” and we record realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income (loss). Other-Than-Temporary Impairments We recognize the credit component of other-than-temporary impairments of our debt securities in “Net other-than-temporary impairments” and the noncredit component in “Other comprehensive income (loss)” in our consolidated statements of operations and comprehensive income (loss) for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery.

Disclosure of accounting policy for investments in debt and equity securities that are classified as available-for-sale. This policy also may describe the entity's accounting treatment for transfers between investment categories, how the entity determines whether impairments of available-for-sale securities are other than temporary, and how the fair values of such securities are determined.

Disclosure of accounting policy for investments in debt and equity securities that are classified as trading securities. This policy also may describe the entity's accounting treatment for transfers between investment categories and how the fair values of such securities are determined.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Acquired Property Net (Policies)	12 Months Ended
Acquired Property Net (Policies)	Dec. 31, 2012
Real Estate [Abstract]
Foreclosed Properties Acquired Held-For-Use [Policy Text Block]	We classify as held for use those properties that we do not intend to sell or that are not ready for immediate sale in their current condition, which are reflected in “Other assets” in our consolidated balance sheets.

Derivative Instruments Derivative Policy (Policies)

12 Months Ended

Dec. 31, 2012

Derivatives, Policy [Policy Text Block]


•	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.

Disclosure of accounting policy for its derivative instruments and hedging activities.

Segment Reporting Segment Reporting Policy (Policies)	12 Months Ended
Segment Reporting Segment Reporting Policy (Policies)	Dec. 31, 2012
Segment Reporting [Abstract]
Segment Reporting, Policy [Policy Text Block]	We operate under three business segments: Single-Family Credit Guaranty (“Single-Family”), Multifamily and Capital Markets. Our Single-Family segment generates revenue primarily from the guaranty fees on the mortgage loans underlying guaranteed single-family Fannie Mae mortgage-backed securities (“Fannie Mae MBS”). Our Multifamily segment generates revenue from a variety of sources, including guaranty fees on the mortgage loans underlying multifamily Fannie Mae MBS, transaction fees associated with the multifamily business and bond credit enhancement fees. Our Capital Markets segment invests in mortgage loans, mortgage-related securities and other investments, and generates income primarily from the difference, or spread, between the yield on the mortgage assets we own and the interest we pay on the debt we issue in the global capital markets to fund the purchases of these mortgage assets. Our three reportable segments are: Single-Family, Multifamily, and Capital Markets. We use these three segments to generate revenue and manage business risk, and each segment is based on the type of business activities it performs. Under our segment reporting, the sum of the results for our three business segments does not equal our consolidated statements of operations and comprehensive income (loss), as we separate the activity related to our consolidated trusts from the results generated by our three segments. We also include an eliminations/adjustments category to reconcile our business segment financial results and the activity related to our consolidated trusts to net income (loss) in our consolidated statements of operations and comprehensive income (loss).

Fair Value Fair Value Policy (Policies)	12 Months Ended
Fair Value Fair Value Policy (Policies)	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	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. Effective January 1, 2012, we adopted new accounting guidance that requires enhanced disclosures about fair value measurement. Upon adoption of the new fair value guidance, we made changes to the principal markets that we use to estimate the fair value of the following categories of mortgage loans: (a) for loans that are one month delinquent, we changed to the GSE securitization market; (b) for loans that are two and three months delinquent, we changed to the whole loan market; and (c) for loans that have been modified in a troubled debt restructuring but have been reperforming for nine months or more, we changed to the whole loan market. After making these changes, (a) the principal market for all performing loans and those loans that are one month delinquent is the GSE securitization market; and (b) the principal market for all loans that are two or more months delinquent and all loans that have been modified in a troubled debt restructuring is the whole loan market. The impact of making these changes to our principal markets was a net decrease in the estimated fair value of our loans of $24.4 billion as of March 31, 2012. In addition, we enhanced our fair value estimation process for HARP loans to use the modified build-up approach, as described in “Fair Value of Financial Instruments—HARP Loans.” Previously, we measured the fair value of these loans using our standard build-up approach. Based on the definition of HARP at the time we implemented this process enhancement, the impact of this enhancement was an increase in the estimated fair value of HARP loans of $7.4 billion as of March 31, 2012. Fair Value Option We elected the fair value option for loans which contain embedded derivatives that would otherwise require bifurcation. Under the fair value option, we elected to carry these instruments at fair value instead of bifurcating the embedded derivative from the respective loan. We elected the fair value option for all long-term structured debt instruments that are issued in response to specific investor demand and have interest rates that are based on a calculated index or formula and are economically hedged with derivatives at the time of issuance. By electing the fair value option for these instruments, we are able to eliminate the volatility in our results of operations that would otherwise result from the accounting asymmetry created by recording these structured debt instruments at cost while recording the related derivatives at fair value. We elected the fair value option for the financial assets and liabilities of the consolidated senior-subordinate trust structures. By electing the fair value option for these instruments, we are able to eliminate the volatility in our results of operations that would otherwise result from different accounting treatment between loans at cost and debt at cost. Interest income for the mortgage loans is recorded in “Mortgage loans interest income” and interest expense for the debt instruments is recorded in “Long-term debt interest expense” in our consolidated statements of operations and comprehensive income (loss).

Commitments and Contingencies Commitments and Contingencies Policy (Policies)	12 Months Ended
	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies, Policy [Policy Text Block]	On a quarterly and annual basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, reserves and disclosures. We establish a reserve for those matters when a loss is probable and we can reasonably estimate the amount of such loss. For the remaining legal actions or proceedings, including those where there is only a reasonable possibility that a loss may be incurred, we are not currently able to estimate the reasonably possible losses or ranges of losses and we have not established a reserve with respect to those actions or proceedings.
Loan and Mortgage Related Securities Commitments, Policy [Policy Text Block]	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. Unfunded lending represents off-balance sheet commitments for the unutilized portion of lending agreements entered into with multifamily borrower

Disclosure of accounting policy for commitments and contingencies, which may include policies for recognizing and measuring loss and gain contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
-Paragraph 8
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-HCO
-Paragraph 12, 13
-IssueDate 2006-05-01
-Chapter 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Technical Bulletin (FTB)
-Number 90-1
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 45
-Paragraph 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 45
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 45
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 8
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-Publisher FASB
-Name FASB Technical Bulletin (FTB)
-Number 90-1
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 24
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-Publisher FASB
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Consolidations and Transfers of Financial Assets [Abstract]

Consolidations and Transfers of Financial Assets (Tables)

12 Months Ended

Dec. 31, 2012

Unconsolidated Variable Interest Entities [Table Text Block]

The following table displays the carrying amount and classification of our assets and liabilities that relate to our involvement with unconsolidated VIEs as of December 31, 2012 and 2011, as well as our maximum exposure to loss and the total assets of those unconsolidated VIEs.



				As of December 31, 2012
				Mortgage-Backed Trusts			Limited Partnership Investments
				(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets:
Assets:
Available-for-sale securities⁽¹⁾				$	57,004			$	—
Trading securities⁽¹⁾				22,706				—
Other assets				145				120
Other liabilities				(1,449		)		(124		)
Net carrying amount				$	78,406			$	(4	)
Maximum exposure to loss⁽¹⁾				$	87,397			$	118
Total assets of unconsolidated VIEs⁽¹⁾				$	645,332			$	11,675


	As of December 31, 2011
	Mortgage-Backed Trusts			Asset-Backed Trusts			Limited Partnership Investments
	(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets:
Assets:
Available-for-sale securities ⁽¹⁾	$	69,101		$	—			$	—
Trading securities ⁽¹⁾	24,292			2,111				—
Other assets	271			—				145
Other liabilities	(1,347		)	—				(153		)
Net carrying amount	$	92,317		$	2,111			$	(8	)
Maximum exposure to loss ⁽¹⁾	$	100,146		$	2,111			$	137
Total assets of unconsolidated VIEs ⁽¹⁾	$	641,346		$	256,845			$	12,256

__________


⁽¹⁾	Contains securities recognized in our consolidated balance sheets due to consolidation of certain multi-class resecuritization trusts.

Key Characteristics of the Securities Retained in Unconsolidated Portfolio Securitization Trusts [Table Text Block]

The following table displays some key characteristics of the securities retained in unconsolidated portfolio securitization trusts as of December 31, 2012 and 2011.



	Fannie Mae Single-class MBS & Fannie Mae Megas			REMICS & SMBS
	(Dollars in millions)
As of December 31, 2012
Unpaid principal balance	$	456		$	8,667
Fair value	504			9,818
Weighted-average coupon	6.20		%	5.53		%
Weighted-average loan age	6.4		years	4.6		years
Weighted-average maturity	22.5		years	15.0		years

As of December 31, 2011
Unpaid principal balance	$	588		$	12,697
Fair value	654			14,043
Weighted-average coupon	6.21		%	5.86		%
Weighted-average loan age	5.4		years	4.5		years
Weighted-average maturity	23.5		years	18.6		years

Managed Loans [Table Text Block]

The following table displays the unpaid principal balances of managed loans, including those managed loans that were delinquent as of December 31, 2012 and 2011.



	As of December 31,
	2012						2011
	Unpaid Principal Balance			Principal Amount of Delinquent Loans⁽¹⁾			Unpaid Principal Balance			Principal Amount of Delinquent Loans⁽¹⁾
		(Dollars in millions)
Loans held for investment:
Of Fannie Mae		$	370,354		$	102,504		$	396,276		$	122,392
Of consolidated trusts		2,607,880			17,829			2,570,339			24,893
Loans held for sale		459			135			312			57
Securitized loans		2,272			4			2,273			71
Total loans managed		$	2,980,965		$	120,472		$	2,969,200		$	147,413

__________


⁽¹⁾	Represents the unpaid principal balance of loans held for investment, loans held for sale and securitized loans for which we are no longer accruing interest and loans 90 days or more delinquent which are continuing to accrue interest.

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6528138

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 35
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 2, 14, 15, 16, 23, 24, 25, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 24
-Appendix D

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph C4
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 22B
-Appendix D

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 23A
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 22E
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Mortgage Loans (Tables)

12 Months Ended

Dec. 31, 2012

Loans in Mortgage Portfolio [Table Text Block]

The following table displays our mortgage loans as of December 31, 2012 and 2011.



	As of December 31,
	2012												2011
	Of Fannie Mae				Of Consolidated Trusts				Total				Of Fannie Mae				Of Consolidated Trusts				Total
	(Dollars in millions)
Single-family		$	309,277			$	2,480,999			$	2,790,276			$	319,496			$	2,470,533			$	2,790,029
Multifamily		61,464				126,953				188,417				77,026				99,872				176,898
Total unpaid principal balance of mortgage loans		370,741				2,607,952				2,978,693				396,522				2,570,405				2,966,927
Cost basis and fair value adjustments, net		(14,805		)		44,313				29,508				(16,143		)		19,993				3,850
Allowance for loan losses for loans held for investment		(50,519		)		(8,276		)		(58,795		)		(57,309		)		(14,847		)		(72,156		)
Total mortgage loans		$	305,417			$	2,643,989			$	2,949,406			$	323,070			$	2,575,551			$	2,898,621

Aging Analysis [Table Text Block]



	As of December 31, 2012⁽¹⁾
	30 - 59 Days Delinquent			60 - 89 Days Delinquent			Seriously Delinquent⁽²⁾			Total Delinquent			Current		Total		Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest⁽³⁾			Recorded Investment in Nonaccrual Loans
	(Dollars in millions)
Single-family:
Primary⁽⁴⁾		$	39,043		$	13,513		$	67,737		$	120,293	$	2,424,022	$	2,544,315		$	2,162	$	78,822
Government⁽⁵⁾		82			40			340			462		50,408		50,870			340		—
Alt-A		6,009			2,417			22,181			30,607		121,099		151,706			502		24,048
Other⁽⁶⁾		2,613			1,053			8,527			12,193		57,336		69,529			297		9,209
Total single-family		47,747			17,023			98,785			163,555		2,652,865		2,816,420			3,301		112,079
Multifamily⁽⁷⁾		178			NA			428			606		190,445		191,051			—		2,214
Total		$	47,925		$	17,023		$	99,213		$	164,161	$	2,843,310	$	3,007,471		$	3,301	$	114,293



	As of December 31, 2011⁽¹⁾
	30 - 59 Days Delinquent			60 - 89 Days Delinquent			Seriously Delinquent⁽²⁾			Total Delinquent			Current		Total		Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest			Recorded Investment in Nonaccrual Loans
	(Dollars in millions)
Single-family:
Primary⁽⁴⁾		$	43,516		$	15,282		$	80,712		$	139,510	$	2,341,646	$	2,481,156		$	111	$	95,959
Government⁽⁵⁾		109			49			327			485		51,391		51,876			327		—
Alt-A		7,155			3,054			28,323			38,532		138,880		177,412			14		31,356
Other⁽⁶⁾		3,403			1,431			11,277			16,111		73,115		89,226			96		12,533
Total single-family		54,183			19,816			120,639			194,638		2,605,032		2,799,670			548		139,848
Multifamily⁽⁷⁾		210			NA			1,105			1,315		177,906		179,221			—		2,764
Total		$	54,393		$	19,816		$	121,744		$	195,953	$	2,782,938	$	2,978,891		$	548	$	142,612

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	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.


⁽³⁾	Includes loans with a recorded investment of $2.8 billion, which were repurchased in January 2013 pursuant to our resolution agreement with Bank of America. These loans were returned to accrual status to reflect the change in our assessment of collectibility resulting from this agreement, see “Note 20, Subsequent Events.”


⁽⁴⁾	Consists of mortgage loans that are not included in other loan classes.


⁽⁵⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A. Primarily consists of reverse mortgages which due to their nature are not aged and are included in the current column.


⁽⁶⁾	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁷⁾	Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.

Individually Impaired Loans [Table Text Block]

The following tables display the total recorded investment, unpaid principal balance, and related allowance as of December 31, 2012 and 2011 and interest income recognized and average recorded investment for the years ended December 31, 2012 and 2011 for individually impaired loans.



	As of December 31,
	2012										2011
	Unpaid Principal Balance			Total Recorded Investment⁽¹⁾			Related Allowance for Loan Losses		Related Allowance for Accrued Interest Receivable		Unpaid Principal Balance			Total Recorded Investment⁽¹⁾			Related Allowance for Loan Losses		Related Allowance for Accrued Interest Receivable
	(Dollars in millions)
Individually impaired loans:
With related allowance recorded:
Single-family:
Primary⁽²⁾		$	132,754		$	126,106	$	28,610	$	628		$	116,825		$	109,684	$	29,598	$	674
Government⁽³⁾		214			208		38		4			258			258		67		8
Alt-A		38,387			35,620		11,154		267			34,318			31,516		11,121		268
Other⁽⁴⁾		16,873			16,114		4,743		86			16,181			15,363		5,353		99
Total single-family		188,228			178,048		44,545		985			167,582			156,821		46,139		1,049
Multifamily		2,449			2,471		489		13			2,832			2,855		718		32
Total individually impaired loans with related allowance recorded		190,677			180,519		45,034		998			170,414			159,676		46,857		1,081

With no related allowance recorded:⁽⁵⁾
Single-family:
Primary⁽²⁾		16,222			13,901		—		—			9,370			6,471		—		—
Government⁽³⁾		104			104		—		—			25			17		—		—
Alt-A		3,994			2,822		—		—			3,056			1,538		—		—
Other⁽⁴⁾		1,218			977		—		—			680			367		—		—
Total single-family		21,538			17,804		—		—			13,131			8,393		—		—
Multifamily		2,056			2,068		—		—			1,759			1,771		—		—
Total individually impaired loans with no related allowance recorded		23,594			19,872		—		—			14,890			10,164		—		—
Total individually impaired loans⁽⁶⁾		$	214,271		$	200,391	$	45,034	$	998		$	185,304		$	169,840	$	46,857	$	1,081



	For the Year Ended December 31,
	2012									2011									2010
	Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis			Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis			Average Recorded Investment			Total Interest Income Recognized⁽⁷⁾			Interest Income Recognized on a Cash Basis
	(Dollars in millions)
Individually impaired loans:
With related allowance recorded:
Single-family:
Primary⁽²⁾		$	115,767		$	4,077		$	654		$	100,797		$	3,735		$	733		$	81,258		$	3,314		$	1,470
Government⁽³⁾		216			11			—			229			12			—			141			9			—
Alt-A		32,978			1,048			151			29,561			982			186			25,361			897			407
Other⁽⁴⁾		15,593			444			65			14,431			435			90			12,094			384			204
Total single-family		164,554			5,580			870			145,018			5,164			1,009			118,854			4,604			2,081
Multifamily		2,535			125			2			2,430			103			5			1,496			202			10
Total individually impaired loans with related allowance recorded		167,089			5,705			872			147,448			5,267			1,014			120,350			4,806			2,091

With no related allowance recorded:⁽⁵⁾
Single-family:
Primary⁽²⁾		8,264			1,075			231			6,884			606			204			7,860			336			55
Government⁽³⁾		78			7			—			12			7			—			11			8			—
Alt-A		1,811			253			55			1,771			205			63			2,091			121			20
Other⁽⁴⁾		455			95			24			467			57			19			589			36			7
Total single-family		10,608			1,430			310			9,134			875			286			10,551			501			82
Multifamily		1,781			56			2			993			48			8			642			71			5
Total individually impaired loans with no related allowance recorded		12,389			1,486			312			10,127			923			294			11,193			572			87
Total individually impaired loans⁽⁶⁾		$	179,478		$	7,191		$	1,184		$	157,575		$	6,190		$	1,308		$	131,543		$	5,378		$	2,178

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁵⁾	The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.


⁽⁶⁾	Includes single-family loans restructured in a TDR with a recorded investment of $193.4 billion and $161.9 billion as of December 31, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $1.1 billion and $956 million as of December 31, 2012 and 2011, respectively.

⁽⁷⁾

Troubled Debt Restructurings Activity [Table Text Block]

The following table displays the number of loans and recorded investment in loans restructured in a TDR for the years ended December 31, 2012 and 2011.



	For the Year Ended December 31,
	2012					2011
	Number of Loans		RecordedInvestment⁽¹⁾			Number of Loans		RecordedInvestment⁽¹⁾
	(Dollars in millions)
Single-family:
Primary⁽²⁾		270,913		$	39,527		160,227		$	28,329
Government⁽³⁾		394		50			497		86
Alt-A		50,572		9,116			33,416		7,108
Other⁽⁴⁾		15,484		3,489			14,724		3,644
Total single-family		337,363		52,182			208,864		39,167
Multifamily		46		324			47		223
Total troubled debt restructurings		337,409		$	52,506		208,911		$	39,390

__________

⁽¹⁾


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.



	For the Year Ended December 31,
	2012					2011
	Number of Loans		RecordedInvestment ⁽¹⁾			Number of Loans		RecordedInvestment ⁽¹⁾
	(Dollars in millions)
Single-family:
Primary⁽²⁾		46,824		$	7,828		66,088		$	11,585
Government⁽³⁾		200		33			376		95
Alt-A		8,848		1,761			14,223		3,045
Other⁽⁴⁾		4,011		948			6,843		1,670
Total single-family		59,883		10,570			87,530		16,395
Multifamily		7		35			8		49
Total TDRs that subsequently defaulted		59,890		$	10,605		87,538		$	16,444

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Represents our recorded investment in the loan at time of payment default.


⁽²⁾	Consists of mortgage loans that are not included in other loan classes.


⁽³⁾	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.


⁽⁴⁾	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

Credit Quality Indicators [Table Text Block]



	As of December 31,
	2012⁽¹⁾⁽²⁾							2011⁽¹⁾⁽²⁾
	Primary⁽³⁾		Alt-A		Other⁽⁴⁾			Primary⁽³⁾		Alt-A		Other⁽⁴⁾
	(Dollars in millions)
Estimated mark-to-market LTV ratio:⁽⁵⁾
Less than or equal to 80%	$	1,703,384	$	57,419		$	21,936	$	1,464,348	$	61,618		$	23,414
Greater than 80%and less than or equal to 90%	346,018		18,313			7,287		412,342		21,369			9,224
Greater than 90%and less than or equal to 100%	219,736		16,930			7,369		246,648		19,790			9,445
Greater than 100%and less than or equal to 110%	100,302		14,293			7,169		128,428		16,164			8,951
Greater than 110% and less than or equal to 120%	59,723		10,994			6,231		73,836		12,534			7,912
Greater than 120% and less than or equal to 125%	20,620		4,387			2,665		25,750		5,087			3,557
Greater than 125%	94,532		29,370			16,872		129,804		40,850			26,723
Total	$	2,544,315	$	151,706		$	69,529	$	2,481,156	$	177,412		$	89,226

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Excludes $50.9 billion and $51.9 billion as of December 31, 2012 and 2011, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV.


⁽³⁾	Consists of mortgage loans that are not included in other loan classes.


⁽⁴⁾	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.


⁽⁵⁾	The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates periodic changes in home value.

Credit Quality Indicators [Table Text Block]



	As of December 31,
	2012⁽¹⁾			2011⁽¹⁾
	(Dollars in millions)
Credit risk profile by internally assigned grade:⁽²⁾
Green		$	154,235		$	131,740
Yellow⁽³⁾		21,304			28,354
Orange		14,199			17,355
Red		1,313			1,772
Total		$	191,051		$	179,221

__________


⁽¹⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.


⁽²⁾	Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).


⁽³⁾	Includes approximately $5.1 billion and $6.9 billion of unpaid principal balance as of December 31, 2012 and 2011, respectively, classified as yellow due to no available current financial information.

Allowance for Loan Losses and Reserve for Guaranty Losses (Tables)

12 Months Ended

Dec. 31, 2012

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Loan Losses Roll Forward by Segment [Table Text Block]

The following table displays changes in single-family, multifamily and total allowance for loan losses for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012										2011										2010
	Of Fannie Mae			Of Consolidated Trusts				Total			Of Fannie Mae			Of Consolidated Trusts				Total			Of Fannie Mae			Of Consolidated Trusts				Total
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance, January 1	$	56,294			$	14,339		$	70,633		$	47,377			$	12,603		$	59,980		$	6,721			$	1,749		$	8,470
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				43,170			43,170
(Benefit) provision for loan losses⁽²⁾	(1,482		)		465			(1,017		)	13,940				11,683			25,623			12,923				11,592			24,515
Charge-offs⁽³⁾⁽⁴⁾	(14,055		)		(823		)	(14,878		)	(19,026		)		(1,772		)	(20,798		)	(15,438		)		(7,026		)	(22,464		)
Recoveries	1,632				152			1,784			3,636				1,636			5,272			1,913				1,164			3,077
Transfers⁽⁵⁾	6,437				(6,437		)	—			9,901				(9,901		)	—			44,599				(44,599		)	—
Other⁽⁶⁾	1,022				143			1,165			466				90			556			(3,341		)		6,553			3,212
Ending balance	$	49,848			$	7,839		$	57,687		$	56,294			$	14,339		$	70,633		$	47,377			$	12,603		$	59,980
Multifamily allowance for loan losses:
Beginning balance, January 1	$	1,015			$	508		$	1,523		$	1,153			$	423		$	1,576		$	1,357			$	98		$	1,455
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				406			406
(Benefit) provision for loan losses⁽²⁾	(131		)		(43		)	(174		)	140				151			291			144				43			187
Charge-offs⁽³⁾⁽⁴⁾	(261		)		—			(261		)	(372		)		—			(372		)	(414		)		—			(414		)
Transfers⁽⁵⁾	29				(29		)	—			79				(79		)	—			115				(115		)	—
Other⁽⁶⁾	19				1			20			15				13			28			(49		)		(9		)	(58		)
Ending balance	$	671			$	437		$	1,108		$	1,015			$	508		$	1,523		$	1,153			$	423		$	1,576
Total allowance for loan losses:
Beginning balance, January 1	$	57,309			$	14,847		$	72,156		$	48,530			$	13,026		$	61,556		$	8,078			$	1,847		$	9,925
Adoption of consolidation accounting guidance⁽¹⁾	—				—			—			—				—			—			—				43,576			43,576
(Benefit) provision for loan losses⁽²⁾	(1,613		)		422			(1,191		)	14,080				11,834			25,914			13,067				11,635			24,702
Charge-offs⁽³⁾⁽⁴⁾	(14,316		)		(823		)	(15,139		)	(19,398		)		(1,772		)	(21,170		)	(15,852		)		(7,026		)	(22,878		)
Recoveries	1,632				152			1,784			3,636				1,636			5,272			1,913				1,164			3,077
Transfers⁽⁵⁾	6,466				(6,466		)	—			9,980				(9,980		)	—			44,714				(44,714		)	—
Other⁽⁶⁾	1,041				144			1,185			481				103			584			(3,390		)		6,544			3,154
Ending balance	$	50,519			$	8,276		$	58,795		$	57,309			$	14,847		$	72,156		$	48,530			$	13,026		$	61,556

__________

⁽¹⁾


⁽²⁾	(Benefit) provision for loan losses is included in benefit (provision) for credit losses in our consolidated statements of operations and comprehensive income (loss).


⁽³⁾	While we purchase the substantial majority of loans that are four or more months delinquent from our MBS trusts, we do not exercise this option to purchase loans during a forbearance period. Charge-offs of consolidated trusts generally represent loans that remained in our consolidated trusts at the time of default.

⁽⁴⁾


⁽⁵⁾	Includes transfers from trusts for delinquent loan purchases.

⁽⁶⁾

Allowance for Loan Losses and Total Recorded Investment in HFI Loans [Table Text Block]



	As of December 31,
	2012							2011
	Single-Family		Multifamily			Total		Single-Family		Multifamily			Total
	(Dollars in millions)
Allowance for loan losses by segment:
Individually impaired loans⁽¹⁾	$	44,545		$	489	$	45,034	$	46,139		$	718	$	46,857
Collectively reserved loans	13,142			619		13,761		24,494			805		25,299
Total allowance for loan losses	$	57,687		$	1,108	$	58,795	$	70,633		$	1,523	$	72,156

Recorded investment in loans by segment:⁽²⁾
Individually impaired loans⁽¹⁾	$	195,852		$	4,539	$	200,391	$	165,214		$	4,626	$	169,840
Collectively reserved loans	2,620,568			186,512		2,807,080		2,634,456			174,595		2,809,051
Total recorded investment in loans	$	2,816,420		$	191,051	$	3,007,471	$	2,799,670		$	179,221	$	2,978,891

__________


⁽¹⁾	Includes acquired credit-impaired loans.


⁽²⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable

Reserve for Guaranty Losses [Table Text Block]

The following table displays changes in the reserve for guaranty losses for the years ended December 31, 2012, 2011, and 2010.



	For the Year Ended December 31,
		2012			2011			2010
		(Dollars in millions)
Reserve for guaranty losses:
Beginning balance, January 1		$	994		$	323		$	54,430
Adoption of consolidation accounting guidance		—			—			(54,103		)
Provision for guaranty losses		339			804			194
Charge-offs		(174		)	(138		)	(203		)
Recoveries		72			5			5
Ending balance, December 31		$	1,231		$	994		$	323

Investments in Securities (Tables)

12 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities as of December 31, 2012 and 2011.



	As of December 31,
	2012		2011
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae	$	6,248	$	7,424
Freddie Mac	2,793		2,732
Ginnie Mae	437		287
Alt-A private-label securities	1,330		1,349
Subprime private-label securities	1,319		1,280
CMBS	9,826		10,411
Mortgage revenue bonds	675		724
Other mortgage-related securities	117		143
Total	22,745		24,350
Non-mortgage-related securities:
U.S. Treasury securities	17,950		47,737
Asset-backed securities	—		2,111
Total	17,950		49,848
Total trading securities	$	40,695	$	74,198

Schedule of Trading Securities Gains (Losses), Net [Table Text Block]

The following table displays information about our net trading gains and losses for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended
	December 31,
	2012				2011			2010
		(Dollars in millions)
Net trading gains (losses):
Mortgage-related securities		$	1,014		$	274			$	2,607
Non-mortgage-related securities		(10		)	(8		)		85
Total		$	1,004		$	266			$	2,692
Net trading gains (losses) recorded in the period related to securities still held at period end:
Mortgage-related securities		$	1,035		$	268			$	2,485
Non-mortgage-related securities		2			(1		)		56
Total		$	1,037		$	267			$	2,541

Schedule of Realized Gain (Loss) [Table Text Block]

The following table displays the gross realized gains, losses and proceeds on sales of AFS securities for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended
	December 31,
	2012		2011		2010
	(Dollars in millions)
Gross realized gains	$	40	$	182	$	566
Gross realized losses	16		90		293
Total proceeds⁽¹⁾	634		2,152		7,207

__________


⁽¹⁾	Excludes proceeds from the initial sale of securities from new portfolio securitizations included in “Note 2, Consolidations and Transfers of Financial Assets.”

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The following tables display the amortized cost, gross unrealized gains and losses and fair value by major security type for AFS securities we held as of December 31, 2012 and 2011.



		As of December 31, 2012
	Total Amortized Cost ⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses - OTTI ⁽²⁾				Gross Unrealized Losses - Other ⁽³⁾				Total Fair Value
		(Dollars in millions)
Fannie Mae		$	9,580		$	871		$	—			$	(16	)	$	10,435
Freddie Mac		8,652			728			—				—			9,380
Ginnie Mae		645			106			—				—			751
Alt-A private-label securities		11,356			452			(637		)		(96		)	11,075
Subprime private-label securities		8,137			217			(669		)		(238		)	7,447
CMBS⁽⁴⁾		12,284			824			—				(11		)	13,097
Mortgage revenue bonds		7,782			157			(45		)		(52		)	7,842
Other mortgage-related securities		3,330			109			(18		)		(267		)	3,154
Total		$	61,766		$	3,464		$	(1,369	)		$	(680	)	$	63,181



		As of December 31, 2011
	Total Amortized Cost ⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses - OTTI ⁽²⁾				Gross Unrealized Losses - Other ⁽³⁾				Total Fair Value
		(Dollars in millions)
Fannie Mae		$	15,486		$	1,381		$	(3	)		$	(14	)	$	16,850
Freddie Mac		11,906			917			—				—			12,823
Ginnie Mae		775			127			—				—			902
Alt-A private-label securities		13,314			233			(1,618		)		(246		)	11,683
Subprime private-label securities		9,556			17			(1,534		)		(453		)	7,586
CMBS⁽⁴⁾		13,949			181			—				(104		)	14,026
Mortgage revenue bonds		10,172			202			(56		)		(64		)	10,254
Other mortgage-related securities		3,687			92			(39		)		(282		)	3,458
Total		$	78,845		$	3,150		$	(3,250	)		$	(1,163	)	$	77,582

__________


⁽¹⁾	Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments as well as the credit component of other-than-temporary impairments (“OTTI”) recognized in our consolidated statements of operations and comprehensive income (loss).


⁽²⁾	Represents the noncredit component of other-than-temporary impairments losses recorded in “Accumulated other comprehensive income (loss)” as well as cumulative changes in fair value of securities for which we previously recognized the credit component of other-than-temporary impairments.


⁽³⁾	Represents the gross unrealized losses on securities for which we have not recognized other-than-temporary impairments.


⁽⁴⁾	Amortized cost includes $527 million and $686 million as of December 31, 2012 and 2011, respectively, of increases to the carrying amount from previous fair value hedge accounting.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]



		As of December 31, 2012
	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		$	(5	)	$	599		$	(11	)	$	372
Alt-A private-label securities		(18		)	541			(715		)	4,465
Subprime private-label securities		(14		)	243			(893		)	5,058
CMBS		—			—			(11		)	240
Mortgage revenue bonds		(3		)	127			(94		)	1,198
Other mortgage-related securities		(3		)	95			(282		)	1,529
Total		$	(43	)	$	1,605		$	(2,006	)	$	12,862

		As of December 31, 2011
	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		$	(4	)	$	519		$	(13	)	$	208
Alt-A private-label securities		(133		)	1,414			(1,731		)	6,525
Subprime private-label securities		(73		)	471			(1,914		)	6,686
CMBS		(20		)	1,458			(84		)	2,790
Mortgage revenue bonds		(4		)	114			(116		)	1,971
Other mortgage-related securities		(21		)	547			(300		)	1,588
Total		$	(255	)	$	4,523		$	(4,158	)	$	19,768

Schedule of Gains (Losses) on Investments, Other-than-temporary Impairments [Table Text Block]



	For the Year Ended
	December 31,
	2012			2011				2010⁽¹⁾
		(Dollars in millions)
Alt-A private-label securities		$	365		$	563			$	327
Subprime private-label securities		329			(303		)		368
Other		19			48				27
Net other-than-temporary impairments		$	713		$	308			$	722

__________


⁽¹⁾	Certain prior period amounts have been reclassified to conform to the current period presentation.

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]



	For the Year Ended
	December 31,
	2012			2011
	(Dollars in millions)
Balance, January 1	$	8,915		$	8,215
Additions for the credit component on debt securities for which OTTI was not previously recognized	15			23
Additions for the credit component on debt securities for which OTTI was previously recognized	698			285
Reductions for securities no longer in portfolio at period end	(5		)	(7		)
(Reductions) additions for amortization resulting from changes in cash flows expected to be collected over the remaining life of the securities⁽¹⁾	(409		)	399
Balance, December 31	$	9,214		$	8,915

__________


⁽¹⁾	Amount includes out-of-period adjustment of $727 million in 2011 due to an overstatement of income and amortized cost.

Schedule of Modeled Attributes Used to Determine Potential Cash Shortfalls [Table Text Block]



	As of December 31, 2012
				Alt-A
	Subprime			Option ARM				Fixed Rate				Variable Rate				Hybrid Rate
	(Dollars in millions)
Vintage Year
2004 & Prior:
Unpaid principal balance	$	1,404			$	438			$	2,836			$	431			$	1,955
Weighted average collateral default⁽¹⁾	39.9		%		37.3		%		12.8		%		26.6		%		16.3		%
Weighted average collateral severities⁽²⁾	69.0				60.0				53.7				53.0				47.1
Weighted average voluntary prepayment rates⁽³⁾	6.6				6.2				12.1				6.5				9.4
Average credit enhancement⁽⁴⁾	51.9				11.4				12.1				23.0				9.2
2005
Unpaid principal balance	$	136			$	1,171			$	1,015			$	467			$	2,058
Weighted average collateral default⁽¹⁾	66.5		%		51.0		%		36.6		%		46.7		%		33.3		%
Weighted average collateral severities⁽²⁾	74.3				66.1				64.5				62.7				54.7
Weighted average voluntary prepayment rates⁽³⁾	2.6				4.8				7.3				5.4				6.0
Average credit enhancement⁽⁴⁾	65.3				17.1				0.8				11.8				3.9
2006
Unpaid principal balance	$	10,543			$	995			$	464			$	1,400			$	1,434
Weighted average collateral default⁽¹⁾	69.2		%		65.2		%		38.3		%		51.8		%		30.9		%
Weighted average collateral severities⁽²⁾	76.4				67.4				66.4				63.4				55.3
Weighted average voluntary prepayment rates⁽³⁾	2.4				3.6				5.8				4.2				6.0
Average credit enhancement⁽⁴⁾	13.1				11.2				0.2				0.6				—
2007 & After:
Unpaid principal balance	$	570			$	—			$	—			$	—			$	101
Weighted average collateral default⁽¹⁾	64.6		%		N/A				N/A				N/A				37.1		%
Weighted average collateral severities⁽²⁾	66.9				N/A				N/A				N/A				57.2
Weighted average voluntary prepayment rates⁽³⁾	1.9				N/A				N/A				N/A				6.9
Average credit enhancement⁽⁴⁾	27.4				N/A				N/A				N/A				21.7
Total
Unpaid principal balance	$	12,653			$	2,604			$	4,315			$	2,298			$	5,548
Weighted average collateral default⁽¹⁾	65.8		%		54.1		%		21.1		%		46.0		%		26.8		%
Weighted average collateral severities⁽²⁾	75.2				65.6				57.6				61.3				52.2
Weighted average voluntary prepayment rates⁽³⁾	2.8				4.6				10.3				4.9				7.2
Average credit enhancement⁽⁴⁾	18.6				13.9				8.2				7.1				5.1

__________


⁽¹⁾	The expected remaining cumulative default rate of the collateral pool backing the securities, as a percentage of the current collateral unpaid principal balance, weighted by security unpaid principal balance.


⁽²⁾	The expected remaining loss given default of the collateral pool backing the securities, calculated as the ratio of remaining cumulative loss divided by cumulative defaults, weighted by security unpaid principal balance.


⁽³⁾	The average monthly voluntary prepayment rate, weighted by security unpaid principal balance.


⁽⁴⁾	The average percent current credit enhancement provided by subordination of other securities. Excludes excess interest projections and monoline bond insurance.

Investments Classified by Contractual Maturity Date [Table Text Block]



		As of December 31, 2012
	Total Amortized Cost				Total Fair Value		One Year or Less						After One Year Through Five Years						After Five Years Through Ten Years						After Ten Years
	Total Amortized Cost				Total Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value		Amortized Cost				Fair Value
	(Dollars in millions)
Fannie Mae		$	9,580		$	10,435		$	—		$	—		$	85		$	90		$	847		$	899		$	8,648		$	9,446
Freddie Mac		8,652			9,380			2			2			79			83			786			845			7,785			8,450
Ginnie Mae		645			751			—			—			2			2			7			8			636			741
Alt-A private-label securities		11,356			11,075			—			—			—			—			178			183			11,178			10,892
Subprime private-label securities		8,137			7,447			—			—			—			—			—			—			8,137			7,447
CMBS		12,284			13,097			—			—			11,892			12,699			149			164			243			234
Mortgage revenue bonds		7,782			7,842			46			48			309			319			647			657			6,780			6,818
Other mortgage-related securities		3,330			3,154			—			—			—			8			2			2			3,328			3,144
Total		$	61,766		$	63,181		$	48		$	50		$	12,367		$	13,201		$	2,616		$	2,758		$	46,735		$	47,172
Weighted average yield⁽¹⁾		4.64		%				4.25		%				3.87		%				5.03		%				4.82		%

__________


⁽¹⁾	Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax exempt obligations have been computed on a tax equivalent basis.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table displays our accumulated other comprehensive income (loss) by major categories as of December 31, 2012, 2011 and 2010.



	As of December 31,
	2012			2011				2010⁽¹⁾
	(Dollars in millions)
Net unrealized gains on available-for-sale securities for which we have not recorded OTTI, net of tax	$	1,399			$	1,152		$	304
Net unrealized losses on available-for-sale securities for which we have recorded OTTI, net of tax	(465		)		(1,953		)	(1,736		)
Prior service cost and actuarial gains, net of amortization for defined benefit plans, net of tax	(505		)		(389		)	(214		)
Other losses	(45		)		(45		)	(36		)
Accumulated other comprehensive income (loss)	$	384			$	(1,235	)	$	(1,682	)

__________


⁽¹⁾	Includes a net increase of $3.4 billion from the adoption of the consolidation accounting guidance.

Financial Guarantees (Tables)

12 Months Ended

Dec. 31, 2012

Delinquency Status Guaranty Book of Business [Table Text Block]

Guarantor Obligations [Line Items]



	As of December 31,
	2012⁽¹⁾						2011⁽¹⁾
	30 Days Delinquent		60 Days Delinquent		Seriously Delinquent⁽²⁾		30 Days Delinquent		60 Days Delinquent		Seriously Delinquent⁽²⁾
Percentage of single-family conventional guaranty book of business⁽³⁾	1.75	%	0.63	%	3.66	%	1.98	%	0.73	%	4.47	%
Percentage of single-family conventional loans⁽⁴⁾	1.96		0.66		3.29		2.17		0.74		3.91

Risk Characteristics Guaranty Book of Business [Table Text Block]



	As of December 31,
	2012⁽¹⁾				2011⁽¹⁾
	Percentage of Single-Family Conventional Guaranty Book of Business⁽³⁾		Percentage Seriously Delinquent⁽²⁾⁽⁵⁾		Percentage of Single-Family Conventional Guaranty Book of Business⁽³⁾		Percentage Seriously Delinquent⁽²⁾⁽⁵⁾
Estimated mark-to-market loan-to-value ratio:
Greater than 100%	13	%	13.42	%	18	%	13.76	%
Geographical distribution:
Arizona	2		2.14		2		3.65
California	19		1.69		19		2.46
Florida	6		10.06		6		11.80
Nevada	1		6.70		1		7.42
Select Midwest states⁽⁶⁾	10		3.51		10		4.39
All other states	62		2.85		62		3.18
Product distribution:
Alt-A	6		11.36		7		12.43
Subprime	*		20.60		*		23.18
Vintages:
2005	5		7.79		7		7.27
2006	5		12.15		7		11.81
2007	7		12.99		10		12.62
2008	5		6.63		7		5.64
All other vintages	78		1.36		69		1.59
Select combined risk characteristics:
Original LTV ratio > 90% and FICO score < 620	1		14.76		1		18.67

__________


*	Represents less than 0.5% of the single-family conventional guaranty book of business.


⁽¹⁾	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.


⁽²⁾	Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2012 and 2011.


⁽³⁾	Calculated based on the aggregate unpaid principal balance of single-family conventional loans for each category divided by the aggregate unpaid principal balance of loans in our single-family conventional guaranty book of business.


⁽⁴⁾	Calculated based on the number of single-family conventional loans that were delinquent divided by the total number of loans in our single-family conventional guaranty book of business.


⁽⁵⁾	Calculated based on the number of single-family conventional loans that were seriously delinquent divided by the total number of single-family conventional loans for each category included in our guaranty book of business.


⁽⁶⁾	Consists of Illinois, Indiana, Michigan, and Ohio.

Delinquency Status Guaranty Book of Business [Table Text Block]

Guarantor Obligations [Line Items]



	As of December 31,
	2012⁽¹⁾⁽²⁾				2011⁽¹⁾⁽²⁾
	30 Days Delinquent		Seriously Delinquent⁽³⁾		30 Days Delinquent		Seriously Delinquent⁽³⁾
Percentage of multifamily guaranty book of business	0.23	%	0.24	%	0.11	%	0.59	%

Risk Characteristics Guaranty Book of Business [Table Text Block]



	As of December 31,
	2012⁽¹⁾				2011⁽¹⁾
	Percentage of Multifamily Guaranty Book of Business⁽²⁾		Percentage Seriously Delinquent⁽³⁾⁽⁴⁾		Percentage of Multifamily Guaranty Book of Business⁽²⁾		Percentage Seriously Delinquent⁽³⁾⁽⁴⁾
Original loan-to-value ratio:
Greater than 80%	4	%	0.36	%	5	%	2.51	%
Less than or equal to 80%	96		0.24		95		0.49
Original debt service coverage ratio:
Less than or equal to 1.10	8		0.22		8		0.24
Greater than 1.10	92		0.25		92		0.62
Current debt service coverage ratio less than 1.0⁽⁵⁾	5		2.11		7		3.66

__________


⁽¹⁾	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011 excluding loans that have been defeased.


⁽²⁾	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.


⁽³⁾	Consists of multifamily loans that were 60 days or more past due as of the dates indicated.


⁽⁴⁾	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 guaranty book of business.


⁽⁵⁾	Our estimates of current DSCRs are based on the latest available income information for these properties. Although we use the most recently available results of our multifamily borrowers, there is a lag in reporting, which typically can range from 6 to 12 months.

Acquired Property Net (Tables)

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

Activity in acquired property and the related valuation allowance [Table Text Block]

The following table displays the activity in acquired property net of the related valuation allowance for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Beginning balance, January 1	$	11,373		$	16,173		$	9,142
Additions	16,292			18,049			25,199
Disposals	(16,629		)	(21,617		)	(16,237		)
Write-downs, net of recoveries	(547		)	(1,232		)	(1,931		)
Ending balance, December 31⁽¹⁾	$	10,489		$	11,373		$	16,173

__________


⁽¹⁾	Includes valuation allowance of $669 million, $1.0 billion and $1.9 billion for the years ended December 31, 2012, 2011 and 2010, respectively.

Acquired properties held-for-use [Table Text Block]

The following table displays the activity and carrying amount of acquired properties held for use for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012				2011				2010
	(Dollars in millions)
Beginning balance, January 1		$	835			$	889			$	44
Transfers in from held for sale, net and additions		1,173				1,045				977
Transfers to held for sale, net		(748		)		(547		)		(64		)
Depreciation, asset write-downs, and other		(387		)		(552		)		(68		)
Ending balance, December 31		$	873			$	835			$	889

Short-Term Borrowings and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Short-Term Borrowings [Table Text Block]



	As of December 31,
	2012						2011
	Outstanding			Weighted- Average Interest Rate⁽¹⁾			Outstanding			Weighted- Average Interest Rate⁽¹⁾
		(Dollars in millions)
Fixed-rate short-term debt:
Discount notes⁽²⁾		$	104,730		0.15	%		$	146,301		0.13	%
Foreign exchange discount notes⁽³⁾		503			1.61			371			1.88
Other⁽⁴⁾		—			—			80			0.04
Total short-term debt of Fannie Mae		105,233			0.16			146,752			0.13
Debt of consolidated trusts		3,483			0.15			4,973			0.09
Total short-term debt		$	108,716		0.16	%		$	151,725		0.13	%

__________


⁽¹⁾	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.


⁽²⁾	Represents unsecured general obligations with maturities ranging from overnight to 360 days from the date of issuance.

⁽³⁾


⁽⁴⁾	Consists of foreign exchange discount notes denominated in U.S. dollars.

Long-Term Debt [Table Text Block]

The following table displays our outstanding long-term debt as of December 31, 2012 and 2011.



	As of December 31,
	2012						2011
	Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾		Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2013 - 2030		$	251,768	2.59	%	2012 - 2030		$	277,146	2.81	%
Medium-term notes⁽²⁾	2013 - 2022		172,288		1.35		2012 - 2021		176,886		1.61
Foreign exchange notes and bonds	2021 - 2028		694		5.44		2021 - 2028		662		5.44
Other⁽³⁾⁽⁴⁾	2013 - 2038		40,819		4.99		2012 - 2040		50,912		5.29
Total senior fixed			465,569		2.35				505,606		2.64
Senior floating:
Medium-term notes⁽²⁾	2013 - 2019		38,633		0.27		2012 - 2016		71,855		0.32
Other⁽³⁾⁽⁴⁾	2020 - 2037		365		8.22		2020 - 2037		420		8.01
Total senior floating			38,998		0.33				72,275		0.35
Subordinated fixed:
Qualifying subordinated⁽⁵⁾	2013 - 2014		2,522		5.00		2012 - 2014		4,894		5.08
Subordinated debentures	2019		3,197		9.92		2019		2,917		9.91
Total subordinated fixed			5,719		7.75				7,811		6.88
Secured borrowings⁽⁶⁾	2021 - 2022		345		1.87		—		—		—
Total long-term debt of Fannie Mae⁽⁷⁾			510,631		2.25				585,692		2.42
Debt of consolidated trusts⁽⁴⁾	2013 - 2052		2,570,170		3.36		2012 - 2051		2,452,455		4.18
Total long-term debt			$	3,080,801	3.18	%			$	3,038,147	3.84	%

__________


⁽¹⁾	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.


⁽²⁾	Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt.


⁽³⁾	Includes long-term debt that is not included in other debt categories.


⁽⁴⁾	Includes a portion of structured debt instruments that is reported at fair value.


⁽⁵⁾	Consists of subordinated debt issued with an interest deferral feature.


⁽⁶⁾	Represents our remaining liability resulting from the transfers of financial assets from our consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments.


⁽⁷⁾	Reported amounts include a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion and $9.2 billion as of December 31, 2012 and 2011, respectively.

Long-Term Debt by Year of Maturity [Table Text Block]



	Long-Term Debt by Year of Maturity			Assuming Callable Debt Redeemed at Next Available Call Date
		(Dollars in millions)
2013		$	103,187		$	252,419
2014		95,040			111,089
2015		76,591			48,130
2016		53,872			34,077
2017		90,794			42,248
Thereafter		91,147			22,668
Total debt of Fannie Mae⁽¹⁾		510,631			510,631
Debt of consolidated trusts⁽²⁾		2,570,170			2,570,170
Total long-term debt⁽³⁾		$	3,080,801		$	3,080,801

__________


⁽¹⁾	Reported amount includes a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion.


⁽²⁾	Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time.


⁽³⁾	Includes a portion of structured debt instruments that is reported at fair value.

Debt Called or Repurchased [Table Text Block]



	For the Year Ended December 31,
	2012				2011			2010
	(Dollars in millions)
Debt called		$	200,713		$	201,651		$	289,770
Weighted-average interest rate of debt called		2.0		%	2.4		%	3.1		%
Debt repurchased		$	44		$	2,887		$	1,333
Weighted-average interest rate of debt repurchased		3.8		%	3.1		%	3.3		%

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-02.22)
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Notional and Fair Value Position [Table Text Block]

The following table displays the notional amount and estimated fair value of our asset and liability derivative instruments as of December 31, 2012 and 2011.



	As of December 31, 2012										As of December 31, 2011
	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	$	19,450	$	270		$	239,017	$	(18,237	)	$	30,950	$	102		$	155,807	$	(17,391	)
Receive-fixed	231,346		10,514			57,190		(200		)	170,668		8,118			59,027		(93		)
Basis	23,199		151			1,700		—			382		122			9,240		(44		)
Foreign currency	686		193			509		(45		)	581		155			451		(62		)
Swaptions:
Pay-fixed	33,050		102			36,225		(184		)	48,600		165			47,750		(194		)
Receive-fixed	15,970		3,572			36,225		(2,279		)	33,695		6,371			47,750		(3,238		)
Other⁽¹⁾	7,374		26			13		(1		)	8,214		52			75		—
Total gross risk management derivatives	331,075		14,828			370,879		(20,946		)	293,090		15,085			320,100		(21,022		)
Accrued interest receivable (payable)	—		1,242			—		(1,508		)	—		920			—		(1,238		)
Netting adjustment⁽²⁾	—		(15,791		)	—		22,046			—		(15,829		)	—		21,898
Total net risk management derivatives	$	331,075	$	279		$	370,879	$	(408	)	$	293,090	$	176		$	320,100	$	(362	)



Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	$	12,360	$	27	$	5,232	$	(8	)	$	9,710	$	73	$	422	$	—
Forward contracts to purchase mortgage-related securities	34,545		103		12,557		(23		)	32,707		309		2,570		(6		)
Forward contracts to sell mortgage-related securities	18,886		26		75,477		(266		)	1,370		3		54,656		(548		)
Total mortgage commitment derivatives	$	65,791	$	156	$	93,266	$	(297	)	$	43,787	$	385	$	57,648	$	(554	)
Derivatives at fair value	$	396,866	$	435	$	464,145	$	(705	)	$	336,877	$	561	$	377,748	$	(916	)

__________


⁽¹⁾	Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts that we account for as derivatives. The mortgage insurance contracts have payment provisions that are not based on a notional amount.

⁽²⁾

Fair Value Gain (Loss), Net [Table Text Block]

The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	(6,681	)	$	(18,040	)	$	(17,573	)
Receive-fixed	4,052			7,939			14,382
Basis	99			86			17
Foreign currency	75			156			157
Swaptions:
Pay-fixed	132			860			(2,026		)
Receive-fixed	410			2,932			3,327
Other⁽¹⁾	(25		)	(72		)	(91		)
Total risk management derivatives fair value losses, net	(1,938		)	(6,139		)	(1,807		)
Mortgage commitment derivatives fair value losses, net	(1,688		)	(423		)	(1,193		)
Total derivatives fair value losses, net	$	(3,626	)	$	(6,562	)	$	(3,000	)

__________


⁽¹⁾	Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts.

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

The following table displays the components of our benefit for federal income taxes for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Current income tax benefit		$	—		$	90		$	82
Deferred income tax benefit ⁽¹⁾		—			—			—
Benefit for federal income taxes		$	—		$	90		$	82

__________


⁽¹⁾	Amount excludes the income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).”

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table displays the difference between our effective tax rates and the statutory federal tax rates for the years ended December 31, 2012, 2011 and 2010, respectively.



	For the Year Ended December 31,
	2012				2011				2010
Statutory corporate tax rate		35.0		%		35.0		%		35.0		%
Tax-exempt interest		(0.7	)			0.9				1.3
Equity investments in affordable housing projects		(3.9	)			4.8				6.3
Other		0.2				1.0				0.1
Valuation allowance		(30.6	)			(41.2	)			(42.1	)
Effective tax rate		—		%		0.5		%		0.6		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table displays our deferred tax assets, deferred tax liabilities, and valuation allowance as of December 31, 2012 and 2011.



		As of December 31,
		2012				2011
	(Dollars in millions)
Deferred tax assets:
Allowance for loan losses and basis in acquired property, net			$	26,263			$	29,935
Mortgage and mortgage-related assets			14,912				12,358
Debt and derivative instruments			5,450				6,562
Partnership credits			5,933				5,473
Partnership and other equity investments			1,610				1,809
Unrealized losses on AFS securities, net			—				442
Net operating loss and alternative minimum tax credit carryforwards			2,586				5,904
Other, net			2,084				2,053
Total deferred tax assets			58,838				64,536
Deferred tax liabilities:
Unrealized gains on AFS securities, net			496				—
Other, net			—				23
Total deferred tax liabilities			496				23
Valuation allowance			(58,851		)		(64,080		)
Net deferred tax (liabilities) assets			$	(509	)		$	433

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table displays the changes in our unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010, respectively.



	For the Year Ended December 31,
	2012				2011				2010
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$	758			$	864			$	911
Gross increases—tax positions in prior years		—				1				83
Gross decreases—tax positions in prior years		(110		)		(2		)		(31		)
Settlements		—				(105		)		(99		)
Unrecognized tax benefits as of December 31⁽¹⁾		$	648			$	758			$	864

__________


⁽¹⁾	Amounts exclude tax credits and net operating losses of $648 million, $758 million and $804 million as of December 31, 2012, 2011 and 2010, respectively.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted [Table Text Block]

The following table displays the computation of basic and diluted loss per share of common stock for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31,
	2012			2011			2010
	(Dollars and shares in millions, except per share amounts)
Net income (loss)	$	17,220		$	(16,855	)	$	(14,018	)
Less: Net loss attributable to noncontrolling interest	4			—			4
Net income (loss) attributable to Fannie Mae	17,224			(16,855		)	(14,014		)
Preferred stock dividends	(11,603		)	(9,614		)	(7,704		)
Undistributed earnings available for distribution to senior preferred stockholder	(4,224		)	—			—
Net income (loss) attributable to common stockholders	$	1,397		$	(26,469	)	$	(21,718	)
Weighted-average common shares outstanding—Basic⁽¹⁾	5,762			5,737			5,694
Convertible preferred stock	131			—			—
Weighted-average common shares outstanding—Diluted⁽¹⁾	5,893			5,737			5,694
Earnings (loss) per share:
Basic	$	0.24		$	(4.61	)	$	(3.81	)
Diluted	$	0.24		$	(4.61	)	$	(3.81	)

__________


⁽¹⁾	Includes 4.7 billion for the year ended December 31, 2012, and 4.6 billion for both the years ended December 31, 2011 and 2010 of weighted-average shares of common stock, that would be issued upon the full exercise of the warrant issued to Treasury from the date the warrant was issued through December 31, 2012, 2011 and 2010, respectively.

Employee Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Net Periodic Benefit Costs [Table Text Block]



	For the Year Ended December 31,
	2012								2011								2010
					Other Post-								Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan				Plans				Plan
	(Dollars in millions)
Service cost		$	37			$	6			$	39			$	6			$	37			$	6
Interest cost		72				9				72				9				66				9
Expected return on plan assets		(73		)		—				(69		)		—				(60		)		—
Other		30				(3		)		12				(7		)		9				(2		)
Net periodic benefit cost		$	66			$	12			$	54			$	8			$	52			$	13

Pre- and Post-tax Amounts Recognized in AOCI [Table Text Block]



	For the Year Ended
	2012								2011
					Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan
	(Dollars in millions)
Actuarial Loss:
Beginning balance, January 1		$	393			$	36			$	218			$	42
Current year actuarial loss (gain)		135				8				184				(5		)
Amortization		(29		)		(1		)		(9		)		(1		)
Ending balance, December 31		499				43				393				36
Prior Service Cost (Credit):
Beginning balance, January 1		$	4			$	(46	)		$	6			$	(56	)
Prior service credit due to curtailments		—				—				—				5
Amortization		(1		)		6				(2		)		5
Ending balance, December 31		3				(40		)		4				(46		)
Transition Obligation:
Beginning balance, January 1		$	—			$	2			$	—			$	4
Amortization		—				(2		)		—				(2		)
Ending balance, December 31		—				—				—				2
Pre-tax and after-tax amount recorded in AOCI		$	502			$	3			$	397			$	(8	)

Status of Pension and Other Postretirement Plans [Table Text Block]

The following table displays the status of our pension and other postretirement plans as of December 31, 2012 and 2011.



	As of December 31,
	2012								2011
					Other Post-								Other Post-
	Pension				Retirement				Pension				Retirement
	Plans				Plan				Plans				Plan
	(Dollars in millions)
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year		$	1,452			$	183			$	1,257			$	180
Service cost		37				6				39				6
Interest cost		72				9				72				9
Plan participants’ contributions		—				2				—				2
Net actuarial loss (gain)		198				9				131				(1		)
Curtailment gain		—				—				(14		)		(5		)
Benefits paid		(35		)		(8		)		(33		)		(8		)
Projected benefit obligation at end of year		1,724				201				1,452				183
Change in Plan Assets:
Fair value of plan assets at beginning of year		1,042				—				942				—
Actual return on plan assets		136				—				2				—
Employer contributions		84				6				131				6
Plan participants’ contributions		—				2				—				2
Benefits paid		(35		)		(8		)		(33		)		(8		)
Fair value of plan assets at end of year		1,227				—				1,042				—
Funded status at end of year⁽¹⁾		$	(497	)		$	(201	)		$	(410	)		$	(183	)

__________


⁽¹⁾	Included in other liabilities of our consolidated balance sheets as of December 31, 2012 and 2011.

Schedule of Assumptions Used [Table Text Block]

The following table displays the actuarial assumptions for our plans used in determining the net periodic benefit costs and the projected and accumulated benefit obligations as of December 31, 2012, 2011 and 2010.



	As of December 31,
	Pension Benefits						Postretirement Benefits
	2012		2011		2010		2012		2011		2010
Weighted-average assumptions used to determine net periodic benefit costs:
Discount rate	4.95	%	5.65	%	6.10	%	4.75	%	5.40	%	5.75	%
Average rate of increase in future compensation	4.00		4.00		4.00
Expected long-term weighted-average rate of return on plan assets	7.00		7.25		7.50
Weighted-average assumptions used to determine benefit obligation at year-end:
Discount rate	4.15	%	4.95	%	5.65	%	4.05	%	4.75	%	5.40	%
Average rate of increase in future compensation	4.00		4.00		4.00
Health care cost trend rate assumed for next year:
Pre-65							7.50	%	8.00	%	8.00	%
Post-65							7.50		8.00		8.00
Rate that cost trend rate gradually declines to and remains at:							5.00		5.00		5.00
Year that rate reaches the ultimate trend rate							2018		2018		2018

Qualified Pension Plan Assets by Asset Category at Their Fair Value [Table Text Block]



	Fair Value Measurement as of December 31,
	2012								2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Total
	(Dollars in millions)
Cash equivalents		$	—		$	16	$	16		$	—		$	22	$	22
Equity securities:
U.S. large-cap⁽¹⁾		405			—		405			353			—		353
U.S. mid/small cap⁽²⁾		105			—		105			91			—		91
International⁽³⁾		—			215		215			—			167		167
Fixed income securities:
Investment grade credit⁽⁴⁾		—			486		486			—			409		409
Total plan assets at fair value		$	510		$	717	$	1,227		$	444		$	598	$	1,042

__________


⁽¹⁾	Consists of a publicly traded equity index fund that tracks the S&P 500.


⁽²⁾	Consists of a publicly traded equity index fund that tracks all regularly traded U.S. stocks except those in the S&P 500.


⁽³⁾	Consists of an international equity fund that tracks an index of approximately 6,100 and 6,400 securities for 2012 and 2011, respectively, across over 40 countries. United Kingdom has the largest share with 15% and 16% in 2012 and 2011, respectively.


⁽⁴⁾	Consists of a bond fund that tracks a broadly diversified investment grade index that consists of approximately 3,600 and 3,000 issuances of investment grade bonds for 2012 and 2011, respectively, from diverse industries. International markets represent 19% and 20% of the fund in 2012 and 2011, respectively.

Schedule of Expected Benefit Payments [Table Text Block]



	Expected Retirement Plan Benefit Payments
				Other Postretirement Benefits
	Pension Benefits			Before Medicare Part D Subsidy			Medicare Part D Subsidy
	(Dollars in millions)
2013		$	40		$	8		$	1
2014		44			8			1
2015		49			9			1
2016		54			9			1
2017		59			10			1
2018 — 2022		405			64			6

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 4, 7, 16, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Segment results [Table Text Block]

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

The following tables display our business segment financial results for the years ended December 31, 2012, 2011 and 2010.



	For the Year Ended December 31, 2012
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(790	)		$	(13	)	$	13,241			$	7,156				$	1,907		⁽³⁾	$	21,501
Benefit for credit losses	672				180			—				—					—				852
Net interest (loss) income after benefit for credit losses	(118		)		167			13,241				7,156					1,907				22,353
Guaranty fee income (expense)	8,151				1,040			(1,291		)		(4,737		)	⁽⁴⁾		(2,951		)	⁽⁴⁾	212			⁽⁴⁾
Investment gains (losses), net	8				37			6,217				(1		)			(5,774		)	⁽⁵⁾	487
Net other-than-temporary impairments	—				—			(711		)		(2		)			—				(713		)
Fair value losses, net	(8		)		—			(3,041		)		(313		)			385			⁽⁶⁾	(2,977		)
Debt extinguishment (losses) gains, net	—				—			(277		)		33					—				(244		)
Gains from partnership investments	—				123			—				—					(4		)		119			⁽⁷⁾
Fee and other income (expense)	759				207			717				(395		)			(13		)		1,275
Administrative expenses	(1,590		)		(269		)	(508		)		—					—				(2,367		)
Foreclosed property income	247				7			—				—					—				254
Other expenses	(1,079		)		(5		)	(22		)		—					(73		)		(1,179		)
Income before federal income taxes	6,370				1,307			14,325				1,741					(6,523		)		17,220
(Provision) benefit for federal income taxes	(80		)		204			(124		)		—					—				—
Net income	6,290				1,511			14,201				1,741					(6,523		)		17,220
Less: Net loss attributable to noncontrolling interest	—				—			—				—					4			⁽⁸⁾	4
Net income attributable to Fannie Mae	$	6,290			$	1,511		$	14,201			$	1,741				$	(6,519	)		$	17,224



	For the Year Ended December 31, 2011
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(2,411	)		$	(38	)	$	13,920			$	5,765				$	2,045		⁽³⁾	$	19,281
Provision for credit losses	(26,453		)		(265		)	—				—					—				(26,718		)
Net interest (loss) income after provision for credit losses	(28,864		)		(303		)	13,920				5,765					2,045				(7,437		)
Guaranty fee income (expense)	7,507				884			(1,497		)		(4,486		)	⁽⁴⁾		(2,181		)	⁽⁴⁾	227			⁽⁴⁾
Investment (losses) gains, net	(2		)		18			3,711				(315		)			(2,906		)	⁽⁵⁾	506
Net other-than-temporary impairments	—				—			(306		)		(2		)			—				(308		)
Fair value losses, net	(7		)		—			(6,596		)		(226		)			208			⁽⁶⁾	(6,621		)
Debt extinguishment (losses) gains, net	—				—			(254		)		22					—				(232		)
Gains from partnership investments	—				81			—				—					—				81			⁽⁷⁾
Fee and other income (expense)	579				218			478				(329		)			(10		)		936
Administrative expenses	(1,638		)		(264		)	(468		)		—					—				(2,370		)
Foreclosed property expense	(765		)		(15		)	—				—					—				(780		)
Other (expenses) income	(857		)		25			(34		)		—					(81		)		(947		)
(Loss) income before federal income taxes	(24,047		)		644			8,954				429					(2,925		)		(16,945		)
Benefit (provision) for federal income taxes	106				(61		)	45				—					—				90
Net (loss) income attributable to Fannie Mae	$	(23,941	)		$	583		$	8,999			$	429				$	(2,925	)		$	(16,855	)



	For the Year Ended December 31, 2010
	Business Segments										Other Activity/Reconciling Items
	Single-Family			Multifamily				Capital Markets			Consolidated Trusts⁽¹⁾					Eliminations/ Adjustments⁽²⁾					Total Results
	(Dollars in millions)
Net interest (loss) income	$	(5,386	)		$	3		$	14,321			$	5,073				$	2,398		⁽³⁾	$	16,409
Provision for credit losses	(24,740		)		(156		)	—				—					—				(24,896		)
Net interest (loss) income after provision for credit losses	(30,126		)		(153		)	14,321				5,073					2,398				(8,487		)
Guaranty fee income (expense)	7,206				791			(1,440		)		(4,525		)	⁽⁴⁾		(1,830		)	⁽⁴⁾	202			⁽⁴⁾
Investment gains (losses), net	9				6			4,047				(418		)			(3,298		)	⁽⁵⁾	346
Net other-than-temporary impairments	—				—			(720		)		(2		)			—				(722		)
Fair value gains (losses), net	—				—			239				(155		)			(595		)	⁽⁶⁾	(511		)
Debt extinguishment losses, net	—				—			(459		)		(109		)			—				(568		)
Losses from partnership investments	—				(70		)	—				—					(4		)		(74		)	⁽⁷⁾
Fee and other income (expense)	306				146			519				(88		)			(1		)		882
Administrative expenses	(1,628		)		(384		)	(585		)		—					—				(2,597		)
Foreclosed property expense	(1,680		)		(38		)	—				—					—				(1,718		)
Other (expenses) income	(836		)		(68		)	125				—					(74		)		(853		)
(Loss) income before federal income taxes	(26,749		)		230			16,047				(224		)			(3,404		)		(14,100		)
Benefit (provision) for federal income taxes	69				(14		)	27				—					—				82
Net (loss) income	(26,680		)		216			16,074				(224		)			(3,404		)		(14,018		)
Less: Net loss attributable to noncontrolling interest	—				—			—				—					4			⁽⁸⁾	4
Net (loss) income attributable to Fannie Mae	$	(26,680	)		$	216		$	16,074			$	(224	)			$	(3,400	)		$	(14,014	)

__________


⁽¹⁾	Represents activity related to the assets and liabilities of consolidated trusts in our consolidated balance sheets.


⁽²⁾	Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our consolidated results.


⁽³⁾	Represents the amortization expense of cost basis adjustments on securities that we own in our portfolio that on a GAAP basis are eliminated.

⁽⁴⁾

⁽⁵⁾


⁽⁶⁾	Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are retained in the Capital Markets portfolio.


⁽⁷⁾	Gains (losses) from partnership investments are included in other expenses in our consolidated statements of operations and comprehensive income (loss).


⁽⁸⁾	Represents the adjustment from equity method accounting to consolidation accounting for partnership investments that are consolidated in our consolidated balance sheets.

Total assets by segment [Table Text Block]

The following table displays total assets by segment as of December 31, 2012 and 2011.



	As of December 31,
	2012			2011
	(Dollars in millions)
Single-Family	$	17,595		$	11,822
Multifamily	5,182			5,747
Capital Markets	723,217			836,700
Consolidated trusts	2,749,571			2,676,952
Eliminations/adjustments	(273,143		)	(319,737		)
Total assets	$	3,222,422		$	3,211,484

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

Preferred Stock [Table Text Block]

Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Preferred Stock

The following table displays our senior preferred stock and preferred stock outstanding as of December 31, 2012 and 2011.



		Issued and Outstanding as of December 31,												Annual Dividend Rate as of December 31, 2012
		2012				2011				Stated Value per Share
Title	Issue Date	Shares		Amount		Shares		Amount		Stated Value per Share						Redeemable on or After
(Dollars and shares in millions, except per share amounts)
Senior Preferred Stock
Series 2008-2	September 8, 2008		1	$	117,149		1	$	112,578		$	117,149	⁽¹⁾	10.000	%⁽²⁾	N/A	⁽³⁾
Total			1	$	117,149		1	$	112,578

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			0.230	⁽⁴⁾	March 31, 2002	⁽⁵⁾
Series G	August 8, 2000		6	288			6	288			50			0.080	⁽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 Variable Liquidation Preference agreement with Treasury, the Stated Value per share on December 31, 2012 was $117,149.


⁽²⁾	Rate effective September 9, 2008 through December 31, 2012.

⁽³⁾


⁽⁴⁾	Rate effective March 31, 2012. Variable dividend rate resets every two years at a per annum rate equal to the two-year Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year. As of December 31, 2012, the annual dividend rate was 0.23%.


⁽⁵⁾	Represents initial call date. Redeemable every two years thereafter.


⁽⁶⁾	Rate effective September 30, 2012. 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. As of December 31, 2012, the annual dividend rate was 0.08%.


⁽⁷⁾	Rate effective December 31, 2012. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.00% or 10-year CMT rate plus 2.375%. As of December 31, 2012, the annual dividend rate was 7.00%.


⁽⁸⁾	Issued and outstanding shares were 24,922 as of December 31, 2012 and 2011, respectively.


⁽⁹⁾	Rate effective December 31, 2012. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.50% or 3-Month LIBOR plus 0.75%. As of December 31, 2012, the annual dividend rate was 4.50%.


⁽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, 2012. 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%. As of December 31, 2012, the annual dividend rate was 7.75%.


⁽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 one million shares in the amount of $25 million on June 4, 2008 under the same terms as the initial issuance.

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6403732&loc=d3e21300-112643

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.28,29)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 30
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 150
-Paragraph 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29
-Article 5

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2012

Regulatory Capital Classification Measures [Table Text Block]

The following table displays our regulatory capital classification measures as of December 31, 2012 and 2011.



	As of December 31,
	2012⁽¹⁾			2011⁽¹⁾
	(Dollars in millions)
Core Capital⁽²⁾	$	(110,350	)	$	(115,967	)
Statutory minimum capital requirement⁽³⁾	30,862			32,463
Deficit of core capital over statutory minimum capital requirement	$	(141,212	)	$	(148,430	)

__________


⁽¹⁾	Amounts as of December 31, 2012 and 2011 represent estimates that we have submitted to FHFA.


⁽²⁾	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 (loss) or (b) senior preferred stock.

⁽³⁾

Concentrations of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2012

Risks and Uncertainties [Abstract]

Estimated Benefit from Mortgage Insurers [Table Text Block]

The following table displays our estimated benefit from mortgage insurers as of December 31, 2012 and 2011 that reduces our total loss reserves.



		As of December 31,
	2012			2011
		(Dollars in millions)
Contractual mortgage insurance benefit		$	9,993		$	15,099
Less: Collectibility adjustment⁽¹⁾		708			2,867
Estimated benefit included in total loss reserves		$	9,285		$	12,232

__________


⁽¹⁾	Represents an adjustment that reduces the contractual benefit for our assessment of our mortgage insurer counterparties’ inability to fully pay the contractual mortgage insurance claims.

Geographic Concentration Risk [Member]

Concentration Risk [Line Items]

Concentration Risk [Table Text Block]



	Geographic Concentration⁽¹⁾
	Percentage of Conventional Single-Family Guaranty Book of Business⁽²⁾						Percentage of Multifamily Guaranty Book of Business⁽³⁾
	As of December 31,						As of December 31,
	2012			2011			2012			2011
Midwest		15	%		15	%		8	%		8	%
Northeast		19			19			21			21
Southeast		23			24			21			20
Southwest		16			15			18			17
West		27			27			32			34
Total		100	%		100	%		100	%		100	%

__________


⁽¹⁾	Midwest includes IL, IN, IA, MI, MN, NE, ND, OH, SD, WI; Northeast includes CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT, VI; Southeast includes AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV; Southwest includes AZ, AR, CO, KS, LA, MO, NM, OK, TX, UT; West includes AK, CA, GU, HI, ID, MT, NV, OR, WA and WY.


⁽²⁾	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted over 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.


⁽³⁾	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011.

Guaranteed Non-Agency Securities [Member]

Concentration Risk [Line Items]

Concentration Risk [Table Text Block]

The following table displays the total unpaid principal balance of guaranteed non-agency securities in our portfolio as of December 31, 2012 and 2011.



	As of December 31,
	2012		2011
	(Dollars in millions)
Alt-A private-label securities	$	928	$	1,279
Subprime private-label securities	1,264		1,398
Mortgage revenue bonds	4,374		4,931
Other mortgage-related securities	292		317
Non mortgage-related securities	—		46
Total	$	6,858	$	7,971

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

Recurring Changes in Fair Value [Table Text Block]

Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]



		Fair Value Measurements as of December 31, 2012
	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⁾		$	1,150		$	—		$	—		$	—			$	1,150
Trading securities:
Mortgage-related securities:
Fannie Mae		—			6,180			68			—				6,248
Freddie Mac		—			2,791			2			—				2,793
Ginnie Mae		—			436			1			—				437
Alt-A private-label securities		—			1,226			104			—				1,330
Subprime private-label securities		—			—			1,319			—				1,319
CMBS		—			9,826			—			—				9,826
Mortgage revenue bonds		—			—			675			—				675
Other		—			—			117			—				117
Non-mortgage-related securities:
U.S. Treasury securities		17,950			—			—			—				17,950
Total trading securities		17,950			20,459			2,286			—				40,695
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			10,406			29			—				10,435
Freddie Mac		—			9,370			10			—				9,380
Ginnie Mae		—			751			—			—				751
Alt-A private-label securities		—			4,511			6,564			—				11,075
Subprime private-label securities		—			—			7,447			—				7,447
CMBS		—			13,097			—			—				13,097
Mortgage revenue bonds		—			5			7,837			—				7,842
Other		—			7			3,147			—				3,154
Total available-for-sale securities		—			38,147			25,034			—				63,181
Mortgage loans of consolidated trusts		—			8,166			2,634			—				10,800
Other assets:
Risk management derivatives:
Swaps		—			12,224			146			—				12,370
Swaptions		—			3,674			—			—				3,674
Other		—			—			26			—				26
Netting adjustment		—			—			—			(15,791		)		(15,791		)
Mortgage commitment derivatives		—			153			3			—				156
Total other assets		—			16,051			175			(15,791		)		435
Total assets at fair value		$	19,100		$	82,823		$	30,129		$	(15,791	)		$	116,261



		Fair Value Measurements as of December 31, 2012
	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)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior fixed		$	—		$	393		$	—		$	—		$	393
Senior floating		—			—			400			—			400
Total of Fannie Mae		—			393			400			—			793
Of consolidated trusts		—			10,519			1,128			—			11,647
Total long-term debt		—			10,912			1,528			—			12,440
Other liabilities:
Risk management derivatives:
Swaps		—			19,836			154			—			19,990
Swaptions		—			2,463			—			—			2,463
Other		—			1			—			—			1
Netting adjustment		—			—			—			(22,046		)	(22,046		)
Mortgage commitment derivatives		—			290			7			—			297
Total other liabilities		—			22,590			161			(22,046		)	705
Total liabilities at fair value		$	—		$	33,502		$	1,689		$	(22,046	)	$	13,145



		Fair Value Measurements as of December 31, 2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Assets:
Cash equivalents⁽²⁾		$	600		$	—		$	—		$	—			$	600
Trading securities:
Mortgage-related securities:
Fannie Mae		—			5,687			1,737			—				7,424
Freddie Mac		—			2,732			—			—				2,732
Ginnie Mae		—			278			9			—				287
Alt-A private-label securities		—			1,004			345			—				1,349
Subprime private-label securities		—			—			1,280			—				1,280
CMBS		—			10,411			—			—				10,411
Mortgage revenue bonds		—			—			724			—				724
Other		—			—			143			—				143
Non-mortgage-related securities:
U.S. Treasury securities		47,737			—			—			—				47,737
Asset-backed securities		—			2,111			—			—				2,111
Total trading securities		47,737			22,223			4,238			—				74,198
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			15,904			946			—				16,850
Freddie Mac		—			12,811			12			—				12,823
Ginnie Mae		—			902			—			—				902
Alt-A private-label securities		—			4,427			7,256			—				11,683
Subprime private-label securities		—			—			7,586			—				7,586
CMBS		—			14,026			—			—				14,026
Mortgage revenue bonds		—			7			10,247			—				10,254
Other		—			13			3,445			—				3,458
Total available-for-sale securities		—			48,090			29,492			—				77,582
Mortgage loans of consolidated trusts		—			1,292			2,319			—				3,611
Other assets:
Risk management derivatives:
Swaps		—			9,247			170			—				9,417
Swaptions		—			6,536			—			—				6,536
Other		—			1			51			—				52
Netting adjustment		—			—			—			(15,829		)		(15,829		)
Mortgage commitment derivatives		—			368			17			—				385
Total other assets		—			16,152			238			(15,829		)		561
Total assets at fair value		$	48,337		$	87,757		$	36,287		$	(15,829	)		$	156,552



		Fair Value Measurements as of December 31, 2011
	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)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior fixed		$	—		$	432		$	—		$	—			$	432
Senior floating		—			—			406			—				406
Total of Fannie Mae		—			432			406			—				838
Of consolidated trusts		—			3,174			765			—				3,939
Total long-term debt		—			3,606			1,171			—				4,777
Other liabilities:
Risk management derivatives:
Swaps		—			18,661			167			—				18,828
Swaptions		—			3,432			—			—				3,432
Netting adjustment		—			—			—			(21,898		)		(21,898		)
Mortgage commitment derivatives		—			548			6			—				554
Total other liabilities		—			22,641			173			(21,898		)		916
Total liabilities at fair value		$	—		$	26,247		$	1,344		$	(21,898	)		$	5,693

__________


⁽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 agreements 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 are classified as Level 1.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Table Text Block]



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2012

				Total (Losses) or Gains (Realized/Unrealized)																											Net Unrealized (Losses) Gains Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2012⁽⁵⁾
	Balance, December 31, 2011			Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3 ⁽⁴⁾			Transfers into Level 3 ⁽⁴⁾			Balance, December 31, 2012
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	1,737		$	(2	)		$	—		$	—	$	(33	)	$	—		$	(118	)	$	(1,581	)	$	65		$	68			$	(6	)
Freddie Mac	—			—				—			—		—			—			—			—			2			2				—
Ginnie Mae	9			—				—			—		—			—			—			(9		)	1			1				—
Alt-A private-label securities	345			165				—			—		—			—			(111		)	(907		)	612			104				39
Subprime private-label securities	1,280			192				—			—		—			—			(153		)	—			—			1,319				192
Mortgage revenue bonds	724			(29		)		—			—		—			—			(20		)	—			—			675				(29		)
Other	143			(19		)		—			—		—			—			(7		)	—			—			117				(19		)
Total trading securities	$	4,238		$	307			$	—		$	—	$	(33	)	$	—		$	(409	)	$	(2,497	)	$	680		$	2,286			$	177

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	946		$	—			$	(8	)	$	43	$	(43	)	$	—		$	(24	)	$	(895	)	$	10		$	29			$	—
Freddie Mac	12			—				—			—		—			—			(2		)	—			—			10				—
Alt-A private-label securities	7,256			(87		)		584			—		—			—			(1,072		)	(3,325		)	3,208			6,564				—
Subprime private-label securities	7,586			(126		)		1,280			—		—			—			(1,293		)	—			—			7,447				—
Mortgage revenue bonds	10,247			9				(23		)	29		(76		)	—			(2,349		)	—			—			7,837				—
Other	3,445			12				59			—		—			—			(369		)	—			—			3,147				—
Total available-for-sale securities	$	29,492		$	(192	)		$	1,892		$	72	$	(119	)	$	—		$	(5,109	)	$	(4,220	)	$	3,218		$	25,034			$	—

Mortgage loans of consolidated trusts	$	2,319		$	235			$	—		$	935	$	—		$	—		$	(411	)	$	(562	)	$	118		$	2,634			$	159
Net derivatives	65			(23		)		—			—		—			(8		)	(20		)	—			—			14				(9		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(406	)	$	(21	)		$	—		$	—	$	—		$	—		$	27		$	—		$	—		$	(400	)		$	(21	)
Of consolidated trusts	(765		)	(180		)		—			—		—			(523		)	233			474			(367		)	(1,128		)		(158		)
Total long-term debt	$	(1,171	)	$	(201	)		$	—		$	—	$	—		$	(523	)	$	260		$	474		$	(367	)	$	(1,528	)		$	(179	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2011

				Total Gains or (Losses) (Realized/Unrealized)																											Net Unrealized Gains (Losses) Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2011⁽⁵⁾
	Balance, December 31, 2010			Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, December 31, 2011
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	2,202		$	14			$	—		$	663	$	(161	)	$	—		$	(433	)	$	(600	)	$	52		$	1,737			$	36
Ginnie Mae	—			—				—			9		(9		)	—			—			(27		)	36			9				—
Alt-A private-label securities	20			19				—			—		—			—			(32		)	(188		)	526			345				(1		)
Subprime private-label securities	1,581			(125		)		—			—		—			—			(176		)	—			—			1,280				(125		)
Mortgage revenue bonds	609			141				—			—		—			—			(26		)	—			—			724				144
Other	152			1				—			—		—			—			(6		)	(147		)	143			143				—
Non-mortgage-related:
Asset-backed securities	12			—				—			—		—			—			(5		)	(9		)	2			—				—
Total trading securities	$	4,576		$	50			$	—		$	672	$	(170	)	$	—		$	(678	)	$	(971	)	$	759		$	4,238			$	54

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	114		$	—			$	44		$	1,756	$	(383	)	$	—		$	(22	)	$	(1,023	)	$	460		$	946			$	—
Freddie Mac	3			—				—			—		—			—			(1		)	—			10			12				—
Alt-A private-label securities	7,049			(100		)		119			—		—			—			(974		)	(1,684		)	2,846			7,256				—
Subprime private-label securities	9,932			(386		)		(580		)	—		(363		)	—			(1,017		)	—			—			7,586				—
Mortgage revenue bonds	11,030			(22		)		834			—		(109		)	—			(1,486		)	—			—			10,247				—
Other	3,806			(7		)		50			—		—			—			(404		)	—			—			3,445				—
Total available-for-sale securities	$	31,934		$	(515	)		$	467		$	1,756	$	(855	)	$	—		$	(3,904	)	$	(2,707	)	$	3,316		$	29,492			$	—

Mortgage loans of consolidated trusts	$	2,207		$	8			$	—		$	184	$	—		$	—		$	(339	)	$	(106	)	$	365		$	2,319			$	9
Net derivatives	104			123				—			—		—			(4		)	(87		)	(71		)	—			65				59
Long-term debt:
Of Fannie Mae:
Senior floating	$	(421	)	$	(88	)		$	—		$	—	$	—		$	—		$	103		$	—		$	—		$	(406	)		$	(88	)
Of consolidated trusts	(627		)	(35		)		—			—		4			(70		)	89			185			(311		)	(765		)		(19		)
Total long-term debt	$	(1,048	)	$	(123	)		$	—		$	—	$	4		$	(70	)	$	192		$	185		$	(311	)	$	(1,171	)		$	(107	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2010

				Impact of the transition to the Consolidation Accounting Guidance				Total (Losses) or Gains (Realized/Unrealized)																			Net Unrealized Gains (Losses) Included in Net Income (Loss) Related to Assets and Liabilities Still Held as of December 31, 2010⁽⁵⁾
	Balance, December 31, 2009							Included in Net Income (Loss)			Included in Other Comprehensive Income (Loss)⁽¹⁾				Purchases, Sales, Issuances, and Settlements, Net			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, December 31, 2010
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	5,656			$	(2	)	$	(1	)		$	—		$	(223	)	$	(5,551	)	$	2,323		$	2,202			$	13
Freddie Mac	—				—			—				—			(1		)	(3		)	4			—				—
Alt-A private-label securities	564				62			226				—			(77		)	(1,069		)	314			20				4
Subprime private-label securities	1,780				—			41				—			(240		)	—			—			1,581				41
Mortgage revenue bonds	600				—			67				—			(58		)	—			—			609				66
Other	154				—			6				—			(8		)	—			—			152				5
Non-mortgage-related:
Asset-backed securities	107				—			1				—			(62		)	(47		)	13			12				—
Total trading securities	$	8,861			$	60		$	340			$	—		$	(669	)	$	(6,670	)	$	2,654		$	4,576			$	129

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	596			$	(203	)	$	(1	)		$	2		$	181		$	(580	)	$	119		$	114			$	—
Freddie Mac	27				—			—				(1		)	(29		)	—			6			3				—
Ginnie Mae	123				—			—				2			(125		)	—			—			—				—
Alt-A private-label securities	8,312				471			(54		)		1,240			(1,322		)	(4,951		)	3,353			7,049				—
Subprime private-label securities	10,746				(118		)	(70		)		1,078			(1,704		)	—			—			9,932				—
Mortgage revenue bonds	12,820				21			11				82			(1,902		)	(2		)	—			11,030				—
Other	3,530				366			(3		)		402			(489		)	—			—			3,806				—
Total available-for-sale securities	$	36,154			$	537		$	(117	)		$	2,805		$	(5,390	)	$	(5,533	)	$	3,478		$	31,934			$	—

Mortgage loans of consolidated trusts	$	—			$	—		$	(29	)		$	—		$	2,188		$	(11	)	$	59		$	2,207			$	(29	)
Guaranty assets and buy-ups	2,577				(2,568		)	1				1			(11		)	—			—			—				—
Net derivatives	123				—			61				—			(74		)	(1		)	(5		)	104				(33		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(601	)		$	—		$	20			$	—		$	160		$	—		$	—		$	(421	)		$	24
Of consolidated trusts	—				(77		)	19				—			(631		)	92			(30		)	(627		)		2
Total long-term debt	$	(601	)		$	(77	)	$	39			$	—		$	(471	)	$	92		$	(30	)	$	(1,048	)		$	26

__________


⁽¹⁾	Gains (losses) included in other comprehensive income (loss) are included in “Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes” in the consolidated statements of operations and comprehensive income (loss).


⁽²⁾	Purchases and sales include activity related to the consolidation and deconsolidation of assets of securitization trusts.


⁽³⁾	Issues and settlements include activity related to the consolidation and deconsolidation of liabilities of securitization trusts.

⁽⁴⁾


⁽⁵⁾	Amount represents temporary changes in fair value. Amortization, accretion and other-than-temporary impairments are not considered unrealized and are not included in this amount.

Realized and Unrealized Gain and Losses for Level 3 Assets and Liabilities Measured on Recurring Basis [Table Text Block]



		For the Year Ended December 31, 2012
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income (loss)		$	272		$	326		$	(484	)		$	12		$	126
Net unrealized gains related to Level 3 assets and liabilities still held as of December 31, 2012		$	—		$	148		$	—			$	—		$	148



		For the Year Ended December 31, 2011
	Interest Income				Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized (losses) gains included in net income (loss)		$	(327	)		$	86		$	(229	)		$	13		$	(457	)
Net unrealized (losses) gains related to Level 3 assets and liabilities still held as of December 31, 2011		$	(3	)		$	18		$	—			$	—		$	15



		For the Year Ended December 31, 2010
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income (loss)		$	319		$	416		$	(480	)		$	40		$	295
Net unrealized gains related to Level 3 assets and liabilities still held as of December 31, 2010		$	—		$	93		$	—			$	—		$	93

Nonrecurring Changes in Fair Value [Table Text Block]



	Fair Value Measurements as of December 31, 2012
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value
	(Dollars in millions)
Nonrecurring fair value measurements:
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	104		$	135		$	239
Single-family mortgage loans held for investment, at amortized cost:⁽¹⁾
Of Fannie Mae		—			—			23,314			23,314
Of consolidated trusts		—			—			227			227
Multifamily mortgage loans held for investment, at amortized cost		—			—			1,624			1,624
Acquired property, net:
Single-family		—			—			3,692			3,692
Multifamily		—			—			74			74
Other assets		—			—			384			384
Total nonrecurring fair value measurements		$	—		$	104		$	29,450		$	29,554

_________


⁽¹⁾	Excludes estimated recoveries from mortgage insurance proceeds.



														For the Year Ended December 31, 2011
	Fair Value Measurements
	For the Year Ended December 31, 2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value				Total Gains (Losses)
		(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	3		$	197		$	200	⁽¹⁾		$	12
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			44,592			44,592		⁽²⁾		(3,077		)
Of consolidated trusts		—			—			882			882		⁽²⁾		(142		)
Multifamily mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			1,910			1,910		⁽²⁾		(348		)
Acquired property, net:
Single-family		—			—			19,498			19,498		⁽³⁾		(2,639		)
Multifamily		—			—			363			363		⁽³⁾		(87		)
Other assets		—			—			1,537			1,537		⁽⁴⁾		(209		)
Total assets at fair value		$	—		$	3		$	68,979		$	68,982			$	(6,490	)



														For the Year Ended December 31, 2010
	Fair Value Measurements
	For the Year Ended December 31, 2010
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value				Total Losses
	(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	6,776		$	535		$	7,311	⁽¹⁾⁽⁵⁾		$	(91	)	⁽⁵⁾
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			38,150			38,150		⁽²⁾		(2,244		)
Of consolidated trusts		—			—			1,294			1,294		⁽²⁾		(235		)
Multifamily mortgage loans held for investment, at amortized cost:
Of Fannie Mae		—			—			1,836			1,836		⁽²⁾		(481		)
Acquired property, net:
Single-family		—			—			20,248			20,248		⁽³⁾		(2,617		)
Multifamily		—			—			206			206		⁽³⁾		(65		)
Other assets:
Guaranty assets		—			—			27			27				(6		)
Partnership investments		—			—			107			107				(145		)
Other assets		—			—			597			597		⁽⁴⁾		(43		)
Total assets at fair value		$	—		$	6,776		$	63,000		$	69,776			$	(5,927	)

_________


⁽¹⁾	Includes $73 million and $7.1 billion of mortgage loans held for sale that were sold, deconsolidated, retained as a mortgage-related security or redesignated to mortgage loans held for investment as of December 31, 2011 and 2010, respectively.


⁽²⁾	Includes $8.1 billion and $3.4 billion of mortgage loans held for investment that were liquidated or transferred to foreclosed properties as of December 31, 2011 and 2010, respectively.


⁽³⁾	Includes $14.5 billion and $10.5 billion of acquired properties that were sold or transferred as of December 31, 2011 and 2010, respectively.


⁽⁴⁾	Includes $411 million and $22 million of other assets that were sold or transferred as of December 31, 2011 and 2010, respectively.


⁽⁵⁾	Includes $7.1 billion of estimated fair value and $68 million in losses due to the adoption of the consolidation accounting guidance.

Valuation Techniques and Significant Unobservable Inputs for Level 3 Assets and Liabilities [Table Text Block]



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾	Fair Value
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency⁽²⁾	Consensus						$	44
	Single Vendor						27
Total Agency							71
Alt-A private-label securities	Discounted Cash Flow	Default Rate (%)	5.7	-	17.6	12.5
		Prepayment Speed (%)	0.6	-	4.0	1.7
		Severity (%)	65.0	-	70.0	67.6
		Spreads (bps)	526.0	-	612.0	567.0	87
	Consensus						17
Total Alt-A private-label securities							104
Subprime private-label securities	Consensus	Default Rate (%)	10.9	-	23.0	16.0
		Prepayment Speed (%)	0.3	-	7.9	2.6
		Severity (%)	80.0			80.0
		Spreads (bps)	427.0	-	657.0	488.5	544
	Consensus						355
	Discounted Cash Flow	Default Rate (%)	14.1	-	20.4	18.7
		Prepayment Speed (%)	3.4	-	8.3	5.6
		Severity (%)	80.0			80.0
		Spreads (bps)	422.0	-	637.0	564.8	236
	Single Vendor						184
Total subprime private-label securities							1,319
Mortgage revenue bonds	Discounted Cash Flow	Spreads (bps)	260.0	-	375.0	320.4	636
	Single Vendor						39
Total mortgage revenue bonds							675
Other	Other						117
Total trading securities							$	2,286



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted Average⁽¹⁾	Fair Value
	(Dollars in millions)
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	Other						$	39
Alt-A private-label securities	Discounted Cash Flow	Default Rate (%)	0.0	-	23.6	6.4
		Prepayment Speed (%)	0.0	-	20.8	7.4
		Severity (%)	50.0	-	70.0	57.2
		Spreads (bps)	288.0	-	643.0	442.8	3,003
	Consensus	Default Rate (%)	0.0	-	17.7	3.6
		Prepayment Speed (%)	0.2	-	41.3	10.0
		Severity (%)	50.0	-	70.0	54.9
		Spreads (bps)	300.0	-	634.0	429.0	2,285
	Consensus						1,231
	Single Vendor						45
Total Alt-A private-label securities							6,564
Subprime private-label securities	Consensus	Default Rate (%)	0.0	-	27.4	15.4
		Prepayment Speed (%)	0.0	-	14.4	3.0
		Severity (%)	65.0	-	80.0	77.8
		Spreads (bps)	325.0	-	660.0	493.7	3,333
	Consensus						2,326
	Discounted Cash Flow	Default Rate (%)	0.0	-	24.3	15.7
		Prepayment Speed (%)	0.0	-	10.9	2.9
		Severity (%)	65.0	-	80.0	76.7
		Spreads (bps)	299.0	-	654.0	527.0	1,710
	Other						78
Total subprime private-label securities							7,447
Mortgage revenue bonds	Single Vendor						5,721
	Discounted Cash Flow	Spreads (bps)	77.0	-	375.0	297.7	1,911
	Other						205
Total mortgage revenue bonds							7,837
Other	Consensus						1,009
	Discounted Cash Flow	Default Rate (%)	4.0	-	10.0	5.0
		Prepayment Speed (%)	0.2	-	10.0	3.0
		Severity (%)	50.0	-	85.0	84.8
		Spreads (bps)	431.0	-	1,154.0	588.6	916
	Consensus	Default Rate (%)	0.0	-	5.0	4.7
		Prepayment Speed (%)	1.0	-	14.1	3.6
		Severity (%)	65.0	-	85.0	83.8
		Spreads (bps)	450.0	-	729.0	585.8	534
	Other						688
Total Other							3,147
Total available-for-sale securities							$	25,034



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted Average⁽¹⁾	Fair Value
	(Dollars in millions)
Mortgage loans of consolidated trusts:
Single-family	Build-Up	Default Rate (%)	0.1	-	99.3	18.4
		Prepayment Speed (%)	4.4	-	92.0	19.4
		Severity (%)	5.6	-	97.3	33.3	$	1,698
	Consensus						303
	Consensus	Default Rate (%)	0.0	-	9.0	6.4
		Prepayment Speed (%)	1.7	-	14.4	10.4
		Severity (%)	65.0	-	70.0	67.1
		Spreads (bps)	468.0	-	851.0	567.9	302
	Discounted Cash Flow	Default Rate (%)	0.0	-	8.5	6.0
		Prepayment Speed (%)	1.7	-	14.4	5.3
		Severity (%)	65.0	-	70.0	65.0
		Spreads (bps)	507.0	-	1,030.0	733.4	106
	Single Vendor						50
Total single-family							2,459
Multifamily	Build-Up	Spreads (bps)	77.0	-	363.4	154.5	175
Total mortgage loans of consolidated trusts							$	2,634
Net derivatives	Dealer Mark						$	144
	Internal Model						(130		)
Total net derivatives							$	14
Long-term debt:
Of Fannie Mae:
Senior floating	Discounted Cash Flow						$	(400	)
Of consolidated trusts	Consensus						(370		)
	Discounted Cash Flow	Default Rate (%)	0.0	-	10.0	5.8
		Prepayment Speed (%)	0.0	-	100.0	36.9
		Severity (%)	50.0	-	70.0	63.4
		Spreads (bps)	98.0	-	1,030.0	331.4	(330		)
	Consensus	Default Rate (%)	0.0	-	9.0	6.2
		Prepayment Speed (%)	1.7	-	14.4	10.9
		Severity (%)	65.0	-	70.0	67.5
		Spreads (bps)	468.0	-	851.0	584.3	(271		)
	Single Vendor						(157		)
Total of consolidated trusts							(1,128		)
Total long-term debt							$	(1,528	)

_________

⁽¹⁾


⁽²⁾	Includes Fannie Mae, Freddie Mac and Ginnie Mae securities.

Level 3 Assets Measured on Nonrecurring Basis [Table Text Block]



	Fair Value Measurements as of December 31, 2012
	Valuation Techniques	Fair Value
	(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus		$	135
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae	Internal Model		23,314
Of consolidated trusts	Internal Model		227
Multifamily mortgage loans held for investment, at amortized cost	Appraisals		194
	Broker Price Opinions		395
	Asset Manager Estimate		1,001
	Other		34
Total multifamily mortgage loans held for investment, at amortized cost			1,624
Acquired property, net:
Single-family	Accepted Offers		787
	Appraisals		467
	Walk Forwards		1,348
	Internal Model		1,014
	Other		76
Total single-family			3,692
Multifamily	Accepted Offers		20
	Appraisals		8
	Broker Price Opinions		46
Total multifamily			74
Other Assets	Appraisals		8
	Walk Forwards		43
	Internal Model		203
	Other		130
Total other assets			384
Total nonrecurring assets at fair value			$	29,450

Fair Value of Financial Instruments [Table Text Block]

As a result, 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, 2012															December 31, 2011
	Carrying Value		Quoted Price in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Netting Adjust-ment			Estimated Fair Value		Carrying Value		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents and restricted cash	$	89,036		$	75,786	$	13,250		$	—	$	—		$	89,036	$	68,336	$	68,336
Federal funds sold and securities purchased under agreements to resell or similar arrangements	32,500			—		32,500			—		—			32,500		46,000		46,000
Trading securities	40,695			17,950		20,459			2,286		—			40,695		74,198		74,198
Available-for-sale securities	63,181			—		38,147			25,034		—			63,181		77,582		77,582
Mortgage loans held for sale	464			—		267			208		—			475		311		325
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	305,025			—		39,018			232,170		—			271,188		322,825		294,996
Of consolidated trusts	2,643,917			—		2,528,004			234,424		—			2,762,428		2,575,485		2,652,025
Mortgage loans held for investment	2,948,942			—		2,567,022			466,594		—			3,033,616		2,898,310		2,947,021
Advances to lenders	7,592			—		6,936			572		—			7,508		5,538		5,420
Derivative assets at fair value	435			—		16,051			175		(15,791		)	435		561		561
Guaranty assets and buy-ups	327			—		—			692		—			692		503		901
Total financial assets	$	3,183,172		$	93,736	$	2,694,632		$	495,561	$	(15,791	)	$	3,268,138	$	3,171,339	$	3,220,344

Financial liabilities:
Short-term debt:
Of Fannie Mae	$	105,233		$	—	$	105,253		$	—	$	—		$	105,253	$	146,752	$	146,782
Of consolidated trusts	3,483			—		—			3,483		—			3,483		4,973		4,973
Long-term debt:
Of Fannie Mae	510,631			—		534,516			1,056		—			535,572		585,692		613,983
Of consolidated trusts	2,570,170			—		2,685,008			16,171		—			2,701,179		2,452,455		2,596,657
Derivative liabilities at fair value	705			—		22,590			161		(22,046		)	705		916		916
Guaranty obligations	599			—		—			3,113		—			3,113		811		3,944
Total financial liabilities	$	3,190,821		$	—	$	3,347,367		$	23,984	$	(22,046	)	$	3,349,305	$	3,191,599	$	3,367,255

Fair Value Option [Table Text Block]

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, 2012 and 2011.



		As of
		December 31, 2012									December 31, 2011
	Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾			Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾
		(Dollars in millions)
Fair value		$	10,800		$	793		$	11,647		$	3,611		$	838		$	3,939
Unpaid principal balance		10,657			674			10,803			4,122			712			4,012

__________

⁽¹⁾


⁽²⁾	Includes interest-only debt instruments with no unpaid principal balance and a fair value of $100 million and $115 million as of December 31, 2012 and 2011, respectively.



	For the Year Ended December 31,
	2012											2011										2010
	Loans			Long-Term Debt				Total Losses				Loans			Long-Term Debt				Total Losses			Loans			Long-Term Debt				Total Losses
	(Dollars in millions)
Changes in instrument-specific credit risk	$	(25	)		$	(13	)		$	(38	)	$	(215	)		$	10		$	(205	)	$	(58	)		$	(9	)	$	(67	)
Other changes in fair value	(124		)		(76		)		(200		)	79				(92		)	(13		)	(73		)		14			(59		)
Fair value (losses) gains, net	$	(149	)		$	(89	)		$	(238	)	$	(136	)		$	(82	)	$	(218	)	$	(131	)		$	5		$	(126	)

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14217-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (c)(2),(d),(e)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a),(c)(1),(d)(1)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 22
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph d, e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Non Cancelable Future Commitments by Remaining Maturity [Table Text Block]



	As of December 31, 2012
	Loans and Mortgage-Related Securities⁽¹⁾			Unfunded Lending			Operating Leases			Other⁽²⁾
	(Dollars in millions)
2013		$	65,309		$	11		$	35		$	51
2014		1			1			34			50
2015		—			4			30			22
2016		—			—			24			21
2017		—			—			22			1
Thereafter		—			—			9			—
Total		$	65,310		$	16		$	154		$	145

__________


⁽¹⁾	Includes $64.7 billion that has been accounted for as mortgage commitment derivatives.


⁽²⁾	Includes purchase commitments for certain telecom services, computer software and services, and other agreements.

Selected Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Information [Table Text Block]



	For the 2012 Quarter Ended
	March 31				June 30				September 30				December 31
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	449			$	73			$	234			$	233
Available-for-sale securities		727				1,035				789				748
Mortgage loans		32,570				32,023				30,593				29,520
Other		38				40				53				65
Total interest income		33,784				33,171				31,669				30,566
Interest expense:
Short-term debt		42				32				38				40
Long-term debt		28,545				27,711				26,314				24,967
Total interest expense		28,587				27,743				26,352				25,007
Net interest income		5,197				5,428				5,317				5,559
(Provision) benefit for credit losses⁽¹⁾		(2,000		)		3,041				(2,079		)		1,890
Net interest income after (provision) benefit for credit losses		3,197				8,469				3,238				7,449
Investment gains, net		116				131				134				106
Other-than-temporary impairments		(80		)		(196		)		(17		)		(18		)
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)		16				(403		)		(21		)		6
Net other-than-temporary impairments		(64		)		(599		)		(38		)		(12		)
Fair value gains (losses), net		283				(2,449		)		(1,020		)		209
Debt extinguishment losses, net		(34		)		(93		)		(54		)		(63		)
Fee and other income		375				395				378				339
Non-interest income (loss)		676				(2,615		)		(600		)		579
Administrative expenses:
Salaries and employee benefits		306				292				294				303
Professional services		168				179				195				224
Occupancy expenses		43				48				48				49
Other administrative expenses		47				48				51				72
Total administrative expenses		564				567				588				648
Foreclosed property expense (income)		339				(70		)		(48		)		(475		)
Other expenses		252				238				285				285
Total expenses		1,155				735				825				458
Net income		2,718				5,119				1,813				7,570
Less: Net loss (income) attributable to noncontrolling interest		1				(5		)		8				—
Net income attributable to Fannie Mae		2,719				5,114				1,821				7,570
Preferred stock dividends		(2,817		)		(2,929		)		(2,929		)		(2,928		)
Undistributed earnings available for distribution to senior preferred stockholder		—				—				—				(4,224		)
Net (loss) income attributable to common stockholders (Note 11)		$	(98	)		$	2,185			$	(1,108	)		$	418
(Loss) earnings per share:
Basic		$	(0.02	)		$	0.38			$	(0.19	)		$	0.07
Diluted		(0.02		)		0.37				(0.19		)		0.07
Weighted-average common shares outstanding:
Basic		5,761				5,762				5,762				5,762
Diluted		5,761				5,893				5,762				5,893

__________


⁽¹⁾	Includes out-of-period adjustments of $548 million, $503 million, $850 million, and $172 million which increased our provision for credit losses for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively.




	For the 2011 Quarter Ended
	March 31				June 30				September 30				December 31⁽¹⁾
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	284			$	264			$	274			$	265
Available-for-sale securities		1,213				1,152				1,160				(248		)
Mortgage loans		35,590				35,333				34,334				33,205
Other		28				25				26				38
Total interest income		37,115				36,774				35,794				33,260
Interest expense:
Short-term debt		107				81				66				56
Long-term debt		32,048				31,721				30,542				29,041
Total interest expense		32,155				31,802				30,608				29,097
Net interest income		4,960				4,972				5,186				4,163
Provision for credit losses		(10,554		)		(6,537		)		(4,151		)		(5,476		)
Net interest (loss) income after provision for credit losses		(5,594		)		(1,565		)		1,035				(1,313		)
Investment gains, net		75				171				73				187
Other-than-temporary impairments		(57		)		(28		)		(232		)		(297		)
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)		13				(28		)		(30		)		351
Net other-than-temporary impairments		(44		)		(56		)		(262		)		54
Fair value gains (losses), net		289				(1,634		)		(4,525		)		(751		)
Debt extinguishment gains (losses), net		13				(43		)		(119		)		(83		)
Fee and other income		237				265				291				370
Non-interest income (loss)		570				(1,297		)		(4,542		)		(223		)
Administrative expenses:
Salaries and employee benefits		320				310				323				283
Professional services		189				169				173				205
Occupancy expenses		42				43				46				48
Other administrative expenses		54				47				49				69
Total administrative expenses		605				569				591				605
Foreclosed property expense (income)		488				(478		)		733				37
Other expenses		352				32				254				228
Total expenses		1,445				123				1,578				870
Loss before federal income taxes		(6,469		)		(2,985		)		(5,085		)		(2,406		)
(Provision) benefit for federal income taxes		(2		)		93				—				(1		)
Net loss		(6,471		)		(2,892		)		(5,085		)		(2,407		)
Less: Net (income) loss attributable to noncontrolling interest		—				(1		)		—				1
Net loss attributable to Fannie Mae		(6,471		)		(2,893		)		(5,085		)		(2,406		)
Preferred stock dividends		(2,216		)		(2,282		)		(2,494		)		(2,622		)
Net loss attributable to common stockholders		$	(8,687	)		$	(5,175	)		$	(7,579	)		$	(5,028	)
Loss per share—Basic and Diluted		$	(1.52	)		$	(0.90	)		$	(1.32	)		$	(0.87	)
Weighted-average common shares outstanding—Basic and Diluted		5,698				5,730				5,760				5,760

__________


⁽¹⁾	Includes an out-of-period adjustment of $933 million comprised of $1.2 billion to reduce “Interest Income: Available-for-sale securities” offset by a $264 million reduction to “Other-than-temporary impairments” in our consolidated statement of operations and comprehensive loss for the three months ended December 31, 2011.

Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Impact of the Repurchase Request Resolution Agreement [Table Text Block]

The following table displays the impact of this agreement that we recognized in our consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2012.



	For the Year Ended
	December 31, 2012
	(Dollars in millions)
Net interest income		$	181
Benefit for credit losses		841
Foreclosed property income		106
Total		$	1,128

Summary of Significant Accounting Policies Narratives(Details)

3 Months Ended

9 Months Ended

12 Months Ended

36 Months Ended

Jan. 31, 2013

USD ($)

Sep. 08, 2008

USD ($)

Sep. 07, 2008

USD ($)

$ / units

Dec. 31, 2012

USD ($)

Sep. 30, 2012

USD ($)

Jun. 30, 2012

USD ($)

Mar. 31, 2012

USD ($)

Dec. 31, 2011

USD ($)

Sep. 30, 2011

USD ($)

Jun. 30, 2011

USD ($)

Mar. 31, 2011

USD ($)

Sep. 30, 2012

USD ($)

Sep. 30, 2011

contracts

Dec. 31, 2012

USD ($)

contracts

Dec. 31, 2011

USD ($)

contracts

Dec. 31, 2010

USD ($)

Dec. 31, 2012

USD ($)

Apr. 02, 2013

USD ($)

Dec. 31, 2009

USD ($)

Accounting Policies [Abstract]

Number of days of net worth deficit requiring FHFA to place us into receivership

60 days

Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement

Net worth

$ 7,224,000,000

$ (4,571,000,000)

$ 7,224,000,000

$ (4,571,000,000)

$ (2,517,000,000)

$ 7,224,000,000

$ (11,983,000,000)

$ 116,100,000,000

Capital reserve amount for the next fiscal year based on the amended Senior Preferred Stock Purchase agreement

3,000,000,000

Annual reduction of capital reserve from 2013 to 2018 based on the Senior Preferred Stock Purchase Agreement, Amendment

$ 600,000,000

Percentage of common shares attributable to warrants issued to Treasury as a percentage to total diluted common shares upon exercise of the right

79.90%

Home Affordable Modification Program administrative expense reimbursements

$ 96,000,000

106,000,000

167,000,000

Proceeds from income tax refunds

1,100,000,000

Interest receivable

$ 9,176,000,000

10,000,000,000

9,176,000,000

10,000,000,000

$ 9,176,000,000

Increase of provision (increase of benefit) for credit losses

(1,890,000,000)

^[1]

$ 2,079,000,000

^[1]

$ (3,041,000,000)

^[1]

$ 2,000,000,000

^[1]

5,476,000,000

$ 4,151,000,000

$ 6,537,000,000

$ 10,554,000,000

$ (852,000,000)

$ 26,718,000,000

24,896,000,000

Number of loans troubled debt restructurings activity | contracts

337,409

208,911

Maximum term of early lender funding advances

60 days

Securities Received as Collateral [Abstract]

Collateral held on reverse repurchase agreements

45,800,000,000

49,500,000,000

$ 45,800,000,000

$ 49,500,000,000

45,800,000,000

Fair value of non-cash collateral

46,200,000,000

50,100,000,000

46,200,000,000

50,100,000,000

46,200,000,000

Fair value of non-cash collateral that can be sold or repledged

25,000,000,000

20,000,000,000

25,000,000,000

20,000,000,000

25,000,000,000

Fair value of securities received as collateral that have been sold or repledged

Out-of-Period Adjustment [Member]

Increase of provision (increase of benefit) for credit losses

172,000,000

850,000,000

503,000,000

$ 548,000,000

2,100,000,000

Loans Discharged with Bankruptcy Relief [Member] | Out-of-Period Adjustment [Member]

Increase of provision (increase of benefit) for credit losses

850,000,000

Other Out of Period Adjustments [Member] | Out-of-Period Adjustment [Member]

Increase of provision (increase of benefit) for credit losses

1,200,000,000

US Treasury [Member]

Maximum commitment from US Treasury pursuant to the senior preferred stock purchase agreement

200,000,000,000

Total available funding from US Treasury pursuant to the senior preferred stock agreement after 2012

117,600,000,000

$ 124,800,000,000

Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement during period

40,900,000,000

Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement

116,100,000,000

Initial aggregate liquidation preference of senior preferred stock held by US Treasury

1,000,000,000

Aggregate liquidation preference of senior preferred stock

117,100,000,000

$ 117,100,000,000

117,100,000,000

Senior preferred stock annual dividend rate

10.00%

Capital reserve amount for the next fiscal year based on the amended Senior Preferred Stock Purchase agreement

3,000,000,000

$ 3,000,000,000

3,000,000,000

Annual reduction of capital reserve from 2013 to 2018 based on the Senior Preferred Stock Purchase Agreement, Amendment

$ 600,000,000

Percentage of common shares attributable to warrants issued to Treasury as a percentage to total diluted common shares upon exercise of the right

79.90%

Common stock warrant exercise price per share | $ / units

0.00001

Fair value of the warrant at issuance

$ 3,500,000,000

Proceeds from income tax refunds

1,100,000,000

Income tax benefit recognized from our settlement of 2007 and 2008 tax years with the IRS

90,000,000

Percentage of initial principal loss US Treasury will bear for Temporary Credit and Liquidity Facilities and New Issue Bond Programs

35.00%

Loss of principal or interest under Treasury's Temporary Credit and Liquid Facilities and New Issue Bond Programs

$ 0

Increase of guarantee fee rate resulting from the Temporary Payroll Tax Cut Continuation Act of 2011.

0.10%

TCCA guaranty fee

$ 134,000,000

$ 238,000,000

TCCA guaranty fee remitted

$ 104,000,000

US Treasury [Member] | Temporary Credit and Liquidity Facilities Program [Member]

Principal and interest outstanding

1,600,000,000

3,000,000,000

1,600,000,000

3,000,000,000

$ 1,600,000,000

US Treasury [Member] | New Issue Bond [Member]

Principal and interest outstanding

6,100,000,000

7,500,000,000

6,100,000,000

7,500,000,000

6,100,000,000

Freddie Mac [Member] | Freddie Mac [Member]

Fair value of mortgage-backed securities

12,200,000,000

15,600,000,000

12,200,000,000

15,600,000,000

12,200,000,000

Interest receivable

$ 51,000,000

$ 69,000,000

51,000,000

69,000,000

$ 51,000,000

Investment income, interest

$ 551,000,000

$ 700,000,000

1,100,000,000

Ally [Member]

Amount received in exchange for our release of specified Ally affiliates from certain potential liability

$ 462,000,000

GMAC Mortgage LLC [Member]

Amount received in exchange for our release of specified Ally affiliates from certain potential liability

$ 265,000,000

Increase of provision (increase of benefit) for credit losses

$ (173,000,000)

Single-Family Loan Loss Reserve Models Update [Member]

Increase (decrease) to the allowance for loan losses and provision for credit losses

3,500,000,000

Single-Family Collectively Impaired Loan Loss Models Update [Member]

Increase (decrease) to the allowance for loan losses and provision for credit losses

(1,500,000,000)

Single-Family Individually Impaired Loan Loss Models Update [Member]

Increase (decrease) to the allowance for loan losses and provision for credit losses

$ 5,000,000,000

Net OTTI [Member]

Increase in other-than-temporary impairment expense due to change in assumptions used to project cash flow estimate on Alt-A and subprime private-label securities

$ 500,000,000

TDR Accounting Guidance [Member]

Increase (decrease) to the allowance for loan losses and provision for credit losses

$ 514,000,000

Number of loans troubled debt restructurings activity | contracts

22,000

Series 2008-2 Senior Preferred Stock [Member]

Shares of variable liquidation preference senior preferred stock issued | shares

1,000,000

Maximum commitment from US Treasury pursuant to the senior preferred stock purchase agreement

$ 100,000,000,000

Aggregate liquidation preference of senior preferred stock

$ 1,000,000,000

Senior preferred stock annual dividend rate

^[2]

10.00%

[1]	Includes out-of-period adjustments of $548 million, $503 million, $850 million, and $172 million which increased our provision for credit losses for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively.
[2]	Rate effective September 9, 2008 through December 31, 2012.

Consolidations and Transfers of Financial Assets Types of VIE (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Consolidated VIEs [Member]
Variable Interest Entities [Line Items]
Unpaid principal balance, consolidation of previously unconsolidated VIE	$ 3,500
Unconsolidated VIEs [Member]
Variable Interest Entities [Line Items]
Unpaid principal balance, deconsolidation of previously consolidated VIE		$ 102

Consolidations and Transfers of Financial Assets Unconsolidated VIEs (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Assets and liabilities recorded in our consolidated balance sheets:

$ 63,181

$ 77,582

40,695

74,198

27,939

25,374

Unconsolidated VIEs [Member] | Mortgage-Backed Trusts [Member]

(14,378)

(13,535)

Assets and liabilities recorded in our consolidated balance sheets:

^[1]

57,004

69,101

^[1]

22,706

24,292

145

271

Total assets of unconsolidated VIEs

(1,449)

(1,347)

Net carrying amount

78,406

92,317

Maximum exposure to loss

^[1]

87,397

100,146

^[1]

645,332

641,346

Unconsolidated VIEs [Member] | Asset-Backed Trusts [Member]

Assets and liabilities recorded in our consolidated balance sheets:

^[1]

^[1]

2,111

Total assets of unconsolidated VIEs

Net carrying amount

2,111

Maximum exposure to loss

^[1]

2,111

^[1]

256,845

Unconsolidated VIEs [Member] | Limited Partnership Investments [Member]

Assets and liabilities recorded in our consolidated balance sheets:

^[1]

^[1]

120

145

Total assets of unconsolidated VIEs

(124)

(153)

Net carrying amount

(4)

(8)

Maximum exposure to loss

^[1]

118

137

^[1]

$ 11,675

$ 12,256

[1]	Contains securities recognized in our consolidated balance sheets due to consolidation of certain multi-class resecuritization trusts.

Consolidations and Transfers of Financial Assets Transfers of Financial Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Transfers of Financial Assets [Line Items]
Unpaid principal balance portfolio securitizations	$ 225,100	$ 118,500	$ 120,000
Unconsolidated VIEs [Member]
Transfers of Financial Assets [Line Items]
Principal and interest received on retained interest	2,400	3,000	$ 3,500
Unconsolidated VIEs [Member] \| Fannie Mae Single-class MBS & Fannie Mae Megas [Member]
Transfers of Financial Assets [Line Items]
Unpaid principal balance	456	588
Fair value	$ 504	$ 654
Weighted-average coupon	6.20%	6.21%
Weighted-average loan age	6 years 5 months	5 years 5 months
Weighted-average maturity	22 years 6 months	23 years 6 months
Unconsolidated VIEs [Member] \| REMICS & SMBS [Member]
Transfers of Financial Assets [Line Items]
Unpaid principal balance	$ 8,667	$ 12,697
Fair value	$ 9,818	$ 14,043
Weighted-average coupon	5.53%	5.86%
Weighted-average loan age	4 years 7 months	4 years 6 months
Weighted-average maturity	15 years	18 years 7 months

Consolidations and Transfers of Financial Assets Managed Loans (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Loans held for sale, unpaid principal balance

$ 459

$ 312

Securitized loans, unpaid principal balance

2,272

2,273

Total loans managed, unpaid principal balance

2,980,965

2,969,200

Loans held for investment, unpaid principal balance

370,354

396,276

Loans held for investment, unpaid principal balance

2,607,880

2,570,339

Principal Amount of Delinquent Loans [Member]

Loans held for sale, unpaid principal balance

^[1]

135

Securitized loans, unpaid principal balance

^[1]

Total loans managed, unpaid principal balance

^[1]

120,472

147,413

Principal Amount of Delinquent Loans [Member] | Fannie Mae [Member]

Loans held for investment, unpaid principal balance

^[1]

102,504

122,392

Principal Amount of Delinquent Loans [Member] | Consolidated Trusts [Member]

Loans held for investment, unpaid principal balance

^[1]

$ 17,829

$ 24,893

Single-Family [Member] | Minimum [Member]

Serious delinquency and accruing, days past due

90 days

[1]	Represents the unpaid principal balance of loans held for investment, loans held for sale and securitized loans for which we are no longer accruing interest and loans 90 days or more delinquent which are continuing to accrue interest.

Consolidations and Transfers of Financial Assets Qualifying Sales of Portfolio Securitizations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Transfers and Servicing [Abstract]
Net gain on portfolio securitizations	$ 34	$ 146	$ 26
Proceeds from the initial sale of securities from portfolio securitizations	672	1,000	660
Proceeds from portfolio securitizations accounted for as secured borrowings	421	$ 0	$ 0
Fair value of trading securities underlying the portfolio securitizations accounted for as secured borrowings	178
Unpaid principal balance of mortgage loans of consolidated trusts underlying the portfolio securitizations accounted for as secured borrowings	$ 201

Reflects, by transferred financial asset type, the amount of sales proceeds in excess of or deficient from the sum of the carrying amounts of transferred financial assets plus transaction costs, including those transactions in which the seller/transferor has continuing involvement with the financial assets that have been transferred.

Financing Receivable, Recorded Investment, Past Due [Line Items]

Mortgage Loans Loans in Mortgage Portfolio (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	$ 2,978,693	$ 2,966,927
Cost basis and fair value adjustments, net	29,508	3,850
Allowance for loan losses for loans held for investment	(58,795)	(72,156)	$ (61,556)	$ (9,925)
Total mortgage loans	2,949,406	2,898,621
Single-Family [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	2,790,276	2,790,029
Multifamily [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	188,417	176,898
Fannie Mae [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	370,741	396,522
Cost basis and fair value adjustments, net	(14,805)	(16,143)
Allowance for loan losses for loans held for investment	(50,519)	(57,309)	(48,530)	(8,078)
Total mortgage loans	305,417	323,070
Fannie Mae [Member] \| Single-Family [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	309,277	319,496
Fannie Mae [Member] \| Multifamily [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	61,464	77,026
Consolidated Trusts [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	2,607,952	2,570,405
Cost basis and fair value adjustments, net	44,313	19,993
Allowance for loan losses for loans held for investment	(8,276)	(14,847)	$ (13,026)	$ (1,847)
Total mortgage loans	2,643,989	2,575,551
Consolidated Trusts [Member] \| Single-Family [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	2,480,999	2,470,533
Consolidated Trusts [Member] \| Multifamily [Member]
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	$ 126,953	$ 99,872

Mortgage Loans Aging (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

^[1]

$ 47,925

$ 54,393

^[1]

17,023

19,816

^[1],[2]

99,213

121,744

^[1]

164,161

195,953

^[1]

2,843,310

2,782,938

Recorded investment in loans 90 days or more delinquent and accruing interest

^[1],[3]

3,007,471

2,978,891

^[1]

3,301

^[4]

548

^[1]

114,293

142,612

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1]

47,747

54,183

^[1]

17,023

19,816

^[1],[2]

98,785

120,639

^[1]

163,555

194,638

^[1]

2,652,865

2,605,032

Recorded investment in loans 90 days or more delinquent and accruing interest

^[1],[3]

2,816,420

2,799,670

^[1]

3,301

^[4]

548

Single-Family [Member] | Primary [Member]

^[1]

112,079

139,848

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1],[5]

39,043

43,516

^[1],[5]

13,513

15,282

^[1],[2],[5]

67,737

80,712

^[1],[5]

120,293

139,510

^[1],[5]

2,424,022

2,341,646

Recorded investment in loans 90 days or more delinquent and accruing interest

^{[1],[5],[6],[7],[8],[9]}

2,544,315

2,481,156

^[1],[5]

2,162

^[4]

111

Single-Family [Member] | Government [Member]

^[1],[5]

78,822

95,959

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1],[10]

109

^[1],[10]

^[1],[2],[10]

340

327

^[1],[10]

462

485

^[1],[10]

50,408

51,391

Recorded investment in loans 90 days or more delinquent and accruing interest

^[1],[10]

50,870

51,876

^[1],[10]

340

^[4]

327

Single-Family [Member] | Alt-A [Member]

^[1],[10]

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1]

6,009

7,155

^[1]

2,417

3,054

^[1],[2]

22,181

28,323

^[1]

30,607

38,532

^[1]

121,099

138,880

Recorded investment in loans 90 days or more delinquent and accruing interest

^{[1],[7],[8],[9]}

151,706

177,412

^[1]

502

^[4]

Single-Family [Member] | Other [Member]

^[1]

24,048

31,356

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1],[11]

2,613

3,403

^[1],[11]

1,053

1,431

^[1],[2],[11]

8,527

11,277

^[1],[11]

12,193

16,111

^[1],[11]

57,336

73,115

Recorded investment in loans 90 days or more delinquent and accruing interest

^{[1],[7],[8],[9],[11],[12]}

69,529

89,226

^[1],[11]

297

^[4]

^[1],[11]

9,209

12,533

Financing Receivable, Recorded Investment, Past Due [Line Items]

^[1],[13]

178

210

^[1],[2],[13]

428

1,105

^[1],[13]

606

1,315

^[1],[13]

190,445

177,906

Recorded investment in loans 90 days or more delinquent and accruing interest

^{[1],[3],[13],[14],[15]}

191,051

179,221

^[1],[13]

^[4]

Minimum [Member] | Single-Family [Member]

^[1],[13]

$ 2,214

$ 2,764

Minimum [Member] | Multifamily [Member]

90 days

Repurchase Request Resolution Agreement [Member] | Bank of America [Member]

60 days

Financing Receivable, Recorded Investment, Past Due [Line Items]

Recorded investment in loans 90 days or more delinquent and accruing interest

$ 2,800

[1]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[2]	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.
[3]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[4]	Includes loans with a recorded investment of $2.8 billion, which were repurchased in January 2013 pursuant to our resolution agreement with Bank of America. These loans were returned to accrual status to reflect the change in our assessment of collectibility resulting from this agreement, see “Note 20, Subsequent Events.”
[5]	Consists of mortgage loans that are not included in other loan classes.
[6]	Consists of mortgage loans that are not included in other loan classes.
[7]	Excludes $50.9 billion and $51.9 billion as of December 31, 2012 and 2011, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV.
[8]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[9]	The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates periodic changes in home value.
[10]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A. Primarily consists of reverse mortgages which due to their nature are not aged and are included in the current column.
[11]	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.
[12]	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.
[13]	Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.
[14]	Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).
[15]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.

Mortgage Loans Narratives (Details) - USD ($) $ in Millions	12 Months Ended
Mortgage Loans Narratives (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Mortgage Loans on Real Estate [Abstract]
Carrying value of loans redesignated from HFI to HFS	$ 33	$ 561
Average term extension of a single-family modified loan	131 months	90 months
Average interest rate reduction of a single-family modified loan	2.15%	2.95%

Mortgage Loans Credit Quality Indicators - SF (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Financing Receivable, Recorded Investment [Line Items]

^[1],[2]

$ 3,007,471

$ 2,978,891

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member]

^[1],[2]

2,816,420

2,799,670

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Less Than or Equal to 80% [Member]

^{[2],[3],[4],[5],[6],[7]}

2,544,315

2,481,156

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 80% and Less Than or Equal to 90% [Member]

^{[4],[5],[6],[7]}

1,703,384

1,464,348

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 90% and Less Than or Equal to 100% [Member]

^{[4],[5],[6],[7]}

346,018

412,342

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 100% and Less Than or Equal to 110% [Member]

^{[4],[5],[6],[7]}

219,736

246,648

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 110% and Less Than or Equal to 120% [Member]

^{[4],[5],[6],[7]}

100,302

128,428

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 120% and Less Than or Equal to 125% [Member]

^{[4],[5],[6],[7]}

59,723

73,836

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Primary [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 125% [Member]

^{[4],[5],[6],[7]}

20,620

25,750

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member]

^{[4],[5],[6],[7]}

94,532

129,804

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Less Than or Equal to 80% [Member]

^{[2],[5],[6],[7]}

151,706

177,412

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 80% and Less Than or Equal to 90% [Member]

^[5],[6],[7]

57,419

61,618

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 90% and Less Than or Equal to 100% [Member]

^[5],[6],[7]

18,313

21,369

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 100% and Less Than or Equal to 110% [Member]

^[5],[6],[7]

16,930

19,790

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 110% and Less Than or Equal to 120% [Member]

^[5],[6],[7]

14,293

16,164

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 120% and Less Than or Equal to 125% [Member]

^[5],[6],[7]

10,994

12,534

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Alt-A [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 125% [Member]

^[5],[6],[7]

4,387

5,087

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member]

^[5],[6],[7]

29,370

40,850

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Less Than or Equal to 80% [Member]

^{[2],[5],[6],[7],[8],[9]}

69,529

89,226

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 80% and Less Than or Equal to 90% [Member]

^{[5],[6],[7],[9]}

21,936

23,414

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 90% and Less Than or Equal to 100% [Member]

^{[5],[6],[7],[9]}

7,287

9,224

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 100% and Less Than or Equal to 110% [Member]

^{[5],[6],[7],[9]}

7,369

9,445

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 110% and Less Than or Equal to 120% [Member]

^{[5],[6],[7],[9]}

7,169

8,951

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 120% and Less Than or Equal to 125% [Member]

^{[5],[6],[7],[9]}

6,231

7,912

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Other [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 125% [Member]

^{[5],[6],[7],[9]}

2,665

3,557

Financing Receivable, Recorded Investment [Line Items]

Single-Family [Member] | Government [Member]

^{[5],[6],[7],[9]}

16,872

26,723

Financing Receivable, Recorded Investment [Line Items]

Financing Receivable, Recorded Investment [Line Items]

^[2],[10]

$ 50,870

$ 51,876

[1]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[2]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[3]	Consists of mortgage loans that are not included in other loan classes.
[4]	Consists of mortgage loans that are not included in other loan classes.
[5]	Excludes $50.9 billion and $51.9 billion as of December 31, 2012 and 2011, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV.
[6]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[7]	The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates periodic changes in home value.
[8]	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.
[9]	Includes loans with higher-risk loan characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.
[10]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A. Primarily consists of reverse mortgages which due to their nature are not aged and are included in the current column.

Mortgage Loans Credit Quality Indicators - MF (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

^[1],[2]

$ 3,007,471

$ 2,978,891

Financing Receivable, Recorded Investment [Line Items]

Multifamily [Member] | Credit Risk Profile by Internally Assigned Grade: Green [Member]

^{[1],[2],[3],[4],[5]}

191,051

179,221

Financing Receivable, Recorded Investment [Line Items]

Multifamily [Member] | Credit Risk Profile by Internally Assigned Grade: Yellow [Member]

^[3],[5]

154,235

131,740

Financing Receivable, Recorded Investment [Line Items]

Unpaid principal balance loans with no available financial information surrounding credit quality

^[3],[5],[6]

21,304

28,354

5,100

6,900

Multifamily [Member] | Credit Risk Profile by Internally Assigned Grade: Orange [Member]

Financing Receivable, Recorded Investment [Line Items]

Multifamily [Member] | Credit Risk Profile by Internally Assigned Grade: Red [Member]

^[3],[5]

14,199

17,355

Financing Receivable, Recorded Investment [Line Items]

^[3],[5]

$ 1,313

$ 1,772

[1]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[2]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[3]	Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).
[4]	Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.
[5]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[6]	Includes approximately $5.1 billion and $6.9 billion of unpaid principal balance as of December 31, 2012 and 2011, respectively, classified as yellow due to no available current financial information.

Mortgage Loans Individually Impaired Loans (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Individually impaired loans with related allowance recorded: unpaid principal balance

$ 190,677

$ 170,414

Individually impaired loans with related allowance recorded: total recorded investment

^[1]

180,519

159,676

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[2],[3]

45,034

46,857

^[4]

23,594

14,890

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4]

19,872

10,164

Total individually impaired loans: unpaid principal balance

^[3]

214,271

185,304

Total individually impaired loans: total recorded investment

^[1],[3]

200,391

169,840

Interest Receivable [Member]

^[3]

998

1,081

Individually impaired loans with related allowance recorded: unpaid principal balance

188,228

167,582

Individually impaired loans with related allowance recorded: total recorded investment

^[1]

178,048

156,821

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[2]

44,545

46,139

^[4]

21,538

13,131

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4]

17,804

8,393

Troubled debt restructuring recorded investment

193,400

161,900

Single-Family [Member] | Interest Receivable [Member]

985

1,049

Individually impaired loans with related allowance recorded: unpaid principal balance

2,449

2,832

Individually impaired loans with related allowance recorded: total recorded investment

^[1]

2,471

2,855

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[2]

489

718

^[4]

2,056

1,759

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4]

2,068

1,771

Troubled debt restructuring recorded investment

1,100

956

Multifamily [Member] | Interest Receivable [Member]

Primary [Member] | Single-Family [Member]

Individually impaired loans with related allowance recorded: unpaid principal balance

^[5]

132,754

116,825

Individually impaired loans with related allowance recorded: total recorded investment

^[1],[5]

126,106

109,684

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[5]

28,610

29,598

^[4],[5]

16,222

9,370

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4],[5]

13,901

6,471

Primary [Member] | Single-Family [Member] | Interest Receivable [Member]

Government [Member] | Single-Family [Member]

^[5]

628

674

Individually impaired loans with related allowance recorded: unpaid principal balance

^[6]

214

258

Individually impaired loans with related allowance recorded: total recorded investment

^[1],[6]

208

258

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[6]

^[4],[6]

104

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4],[6]

104

Government [Member] | Single-Family [Member] | Interest Receivable [Member]

Alt-A [Member] | Single-Family [Member]

^[6]

Individually impaired loans with related allowance recorded: unpaid principal balance

38,387

34,318

Individually impaired loans with related allowance recorded: total recorded investment

^[1]

35,620

31,516

Individually impaired loans with no related allowance recorded: unpaid principal balance

11,154

11,121

^[4]

3,994

3,056

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4]

2,822

1,538

Alt-A [Member] | Single-Family [Member] | Interest Receivable [Member]

Other [Member] | Single-Family [Member]

267

268

Individually impaired loans with related allowance recorded: unpaid principal balance

^[7]

16,873

16,181

Individually impaired loans with related allowance recorded: total recorded investment

^[1],[7]

16,114

15,363

Individually impaired loans with no related allowance recorded: unpaid principal balance

^[7]

4,743

5,353

^[4],[7]

1,218

680

Individually impaired loans with no related allowance recorded: total recorded investment

^[1],[4],[7]

977

367

Other [Member] | Single-Family [Member] | Interest Receivable [Member]

^[7]

$ 86

$ 99

[1]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[2]	Includes acquired credit-impaired loans.
[3]	Includes single-family loans restructured in a TDR with a recorded investment of $193.4 billion and $161.9 billion as of December 31, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $1.1 billion and $956 million as of December 31, 2012 and 2011, respectively.
[4]	The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.
[5]	Consists of mortgage loans that are not included in other loan classes.
[6]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
[7]	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

Mortgage Loans Individually Impaired Loans - 2 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Individually impaired loans with related allowance recorded: average recorded investment

$ 167,089

$ 147,448

$ 120,350

Individually impaired loans with related allowance recorded: total interest income recognized

^[1]

5,705

5,267

4,806

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

872

1,014

2,091

Individually impaired loans with no related allowance recorded: average recorded investment

^[2]

12,389

10,127

11,193

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2]

1,486

923

572

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2]

312

294

Individually impaired loans: average recorded investment

^[3]

179,478

157,575

131,543

Individually impaired loans: total interest income recognized

^[1],[3]

7,191

6,190

5,378

Individually impaired loans: interest income recognized on a cash basis

^[3]

1,184

1,308

2,178

Individually impaired loans with related allowance recorded: average recorded investment

164,554

145,018

118,854

Individually impaired loans with related allowance recorded: total interest income recognized

^[1]

5,580

5,164

4,604

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

870

1,009

2,081

Individually impaired loans with no related allowance recorded: average recorded investment

^[2]

10,608

9,134

10,551

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2]

1,430

875

501

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2]

310

286

Individually impaired loans: total interest income recognized

7,000

6,000

5,100

Individually impaired loans: contractual interest income

5,300

4,500

3,900

Individually impaired loans: effective yield adjustments

1,700

1,600

1,300

Individually impaired loans with related allowance recorded: average recorded investment

2,535

2,430

1,496

Individually impaired loans with related allowance recorded: total interest income recognized

^[1]

125

103

202

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

Individually impaired loans with no related allowance recorded: average recorded investment

^[2]

1,781

993

642

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2]

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2]

Primary [Member] | Single-Family [Member]

Individually impaired loans with related allowance recorded: average recorded investment

^[4]

115,767

100,797

81,258

Individually impaired loans with related allowance recorded: total interest income recognized

^[1],[4]

4,077

3,735

3,314

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

^[4]

654

733

1,470

Individually impaired loans with no related allowance recorded: average recorded investment

^[2],[4]

8,264

6,884

7,860

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2],[4]

1,075

606

336

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2],[4]

231

204

Government [Member] | Single-Family [Member]

Individually impaired loans with related allowance recorded: average recorded investment

^[5]

216

229

141

Individually impaired loans with related allowance recorded: total interest income recognized

^[1],[5]

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

^[5]

Individually impaired loans with no related allowance recorded: average recorded investment

^[2],[5]

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2],[5]

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2],[5]

Alt-A [Member] | Single-Family [Member]

Individually impaired loans with related allowance recorded: average recorded investment

32,978

29,561

25,361

Individually impaired loans with related allowance recorded: total interest income recognized

^[1]

1,048

982

897

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

151

186

407

Individually impaired loans with no related allowance recorded: average recorded investment

^[2]

1,811

1,771

2,091

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2]

253

205

121

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2]

Other [Member] | Single-Family [Member]

Individually impaired loans with related allowance recorded: average recorded investment

^[6]

15,593

14,431

12,094

Individually impaired loans with related allowance recorded: total interest income recognized

^[1],[6]

444

435

384

Individually impaired loans with related allowance recorded: interest income recognized on a cash basis

^[6]

204

Individually impaired loans with no related allowance recorded: average recorded investment

^[2],[6]

455

467

589

Individually impaired loans with no related allowance recorded: total interest income recognized

^[1],[2],[6]

Individually impaired loans with no related allowance recorded: interest income recognized on a cash basis

^[2],[6]

$ 24

$ 19

$ 7

[1]	Total single-family interest income recognized of $7.0 billion for the year ended December 31, 2012 consists of $5.3 billion of contractual interest and $1.7 billion of effective yield adjustments. Total single-family interest income recognized of $6.0 billion for the year ended December 31, 2011 consists of $4.5 billion of contractual interest and $1.6 billion of effective yield adjustments. Total single-family interest income recognized of $5.1 billion for the year ended December 31, 2010 consists of $3.9 billion of contractual interest and $1.3 billion of effective yield adjustments.
[2]	The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.
[3]	Includes single-family loans restructured in a TDR with a recorded investment of $193.4 billion and $161.9 billion as of December 31, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $1.1 billion and $956 million as of December 31, 2012 and 2011, respectively.
[4]	Consists of mortgage loans that are not included in other loan classes.
[5]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
[6]	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

Mortgage Loans TDR (Details)
$ in Millions

12 Months Ended

Dec. 31, 2012

USD ($)

contracts

Dec. 31, 2011

USD ($)

contracts

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

337,409

208,911

Recorded investment troubled debt restructurings activity | $

^[1]

$ 52,506

$ 39,390

Number of loans troubled debt restructurings subsequent default | contracts

59,890

87,538

Recorded investment troubled debt restructurings subsequent default | $

^[2]

$ 10,605

$ 16,444

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

337,363

208,864

Recorded investment troubled debt restructurings activity | $

^[1]

$ 52,182

$ 39,167

Number of loans troubled debt restructurings subsequent default | contracts

59,883

87,530

Recorded investment troubled debt restructurings subsequent default | $

^[2]

$ 10,570

$ 16,395

Single-Family [Member] | Primary [Member]

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

^[3]

270,913

160,227

Recorded investment troubled debt restructurings activity | $

^[1],[3]

$ 39,527

$ 28,329

Number of loans troubled debt restructurings subsequent default | contracts

^[4]

46,824

66,088

Recorded investment troubled debt restructurings subsequent default | $

^[2],[4]

$ 7,828

$ 11,585

Single-Family [Member] | Government [Member]

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

^[5]

394

497

Recorded investment troubled debt restructurings activity | $

^[1],[5]

$ 50

$ 86

Number of loans troubled debt restructurings subsequent default | contracts

^[6]

200

376

Recorded investment troubled debt restructurings subsequent default | $

^[2],[6]

$ 33

$ 95

Single-Family [Member] | Alt-A [Member]

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

50,572

33,416

Recorded investment troubled debt restructurings activity | $

^[1]

$ 9,116

$ 7,108

Number of loans troubled debt restructurings subsequent default | contracts

8,848

14,223

Recorded investment troubled debt restructurings subsequent default | $

^[2]

$ 1,761

$ 3,045

Single-Family [Member] | Other [Member]

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

^[7]

15,484

14,724

Recorded investment troubled debt restructurings activity | $

^[1],[7]

$ 3,489

$ 3,644

Number of loans troubled debt restructurings subsequent default | contracts

^[8]

4,011

6,843

Recorded investment troubled debt restructurings subsequent default | $

^[2],[8]

$ 948

$ 1,670

Financing Receivable, Modifications [Line Items]

Number of loans troubled debt restructurings activity | contracts

Recorded investment troubled debt restructurings activity | $

^[1]

$ 324

$ 223

Number of loans troubled debt restructurings subsequent default | contracts

Recorded investment troubled debt restructurings subsequent default | $

^[2]

$ 35

$ 49

[1]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Based on the nature of our modification programs, which do not include principal or past-due interest forgiveness, there is not a material difference between the recorded investment in our loans pre- and post- modification, therefore amounts represent recorded investment post-modification.
[2]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Represents our recorded investment in the loan at time of payment default.
[3]	Consists of mortgage loans that are not included in other loan classes.
[4]	Consists of mortgage loans that are not included in other loan classes.
[5]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
[6]	Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
[7]	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.
[8]	Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans that are neither government nor Alt-A.

Allowance for Loan Losses and Reserve for Guaranty Losses Narratives (Details) - Consolidation Acounting Guidance Adopted on January 1, 2010 [Member]
$ in Millions

12 Months Ended

Dec. 31, 2010

USD ($)

Item Effected [Line Items]

Cumulative-effect adjustment, allowance for credit losses

$ 43,576

^[1]

Net change in loss reserves

(3,500)

Cumulative-effect adjustment, reserve for guaranty losses

(54,103)

Interest Receivable [Member]

Item Effected [Line Items]

Cumulative-effect adjustment, allowance for credit losses

$ 7,000

[1]

Allowance for Loan Losses and Reserve for Guaranty Losses Allowance Rollforward (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

$ 72,156

$ 61,556

$ 9,925

^[1]

(1,191)

25,914

24,702

^[2],[3]

(15,139)

(21,170)

(22,878)

1,784

5,272

3,077

^[4]

^[5]

1,185

584

3,154

58,795

72,156

61,556

57,309

48,530

8,078

^[6]

^[1]

(1,613)

14,080

13,067

^[2],[3]

(14,316)

(19,398)

(15,852)

1,632

3,636

1,913

^[4]

6,466

9,980

44,714

^[5]

1,041

481

(3,390)

50,519

57,309

48,530

14,847

13,026

1,847

^[1]

422

11,834

11,635

^[2],[3]

(823)

(1,772)

(7,026)

152

1,636

1,164

^[4]

(6,466)

(9,980)

(44,714)

^[5]

144

103

6,544

8,276

14,847

13,026

70,633

59,980

8,470

^[6]

43,170

^[1]

(1,017)

25,623

24,515

^[2],[3]

(14,878)

(20,798)

(22,464)

1,784

5,272

3,077

^[4]

^[5]

1,165

556

3,212

Single-Family [Member] | Fannie Mae [Member]

57,687

70,633

59,980

56,294

47,377

6,721

^[6]

^[1]

(1,482)

13,940

12,923

^[2],[3]

(14,055)

(19,026)

(15,438)

1,632

3,636

1,913

^[4]

6,437

9,901

44,599

^[5]

1,022

466

(3,341)

Single-Family [Member] | Consolidated Trusts [Member]

49,848

56,294

47,377

14,339

12,603

1,749

^[6]

43,170

^[1]

465

11,683

11,592

^[2],[3]

(823)

(1,772)

(7,026)

152

1,636

1,164

^[4]

(6,437)

(9,901)

(44,599)

^[5]

143

6,553

7,839

14,339

12,603

1,523

1,576

1,455

^[6]

406

^[1]

(174)

291

187

^[2],[3]

(261)

(372)

(414)

^[4]

^[5]

(58)

Multifamily [Member] | Fannie Mae [Member]

1,108

1,523

1,576

1,015

1,153

1,357

^[6]

^[1]

(131)

140

144

^[2],[3]

(261)

(372)

(414)

^[4]

115

^[5]

(49)

Multifamily [Member] | Consolidated Trusts [Member]

671

1,015

1,153

508

423

^[6]

406

^[1]

(43)

151

^[2],[3]

^[4]

(29)

(79)

(115)

^[5]

(9)

Interest Receivable [Member]

437

508

423

Interest Receivable [Member] | Fannie Mae [Member]

(872)

(1,400)

(2,400)

2,200

Interest Receivable [Member] | Consolidated Trusts [Member]

1,500

2,200

336

Interest Receivable [Member] | Single-Family [Member]

192

336

Interest Receivable [Member] | Multifamily [Member]

(843)

(1,400)

(2,300)

Consolidation Acounting Guidance Adopted on January 1, 2010 [Member]

$ (29)

$ (46)

(64)

Consolidation Acounting Guidance Adopted on January 1, 2010 [Member] | Consolidated Trusts [Member]

^[6]

43,576

Consolidation Acounting Guidance Adopted on January 1, 2010 [Member] | Interest Receivable [Member]

^[6]

43,576

Accounts, Notes, Loans and Financing Receivable [Line Items]

$ 7,000

[1]	(Benefit) provision for loan losses is included in benefit (provision) for credit losses in our consolidated statements of operations and comprehensive income (loss).
[2]	Total charge-offs include accrued interest of $872 million, $1.4 billion and $2.4 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Single-family charge-offs include accrued interest of $843 million, $1.4 billion and $2.3 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Multifamily charge-offs include accrued interest of $29 million, $46 million and $64 million for the years ended December 31, 2012, 2011 and 2010, respectively.
[3]	While we purchase the substantial majority of loans that are four or more months delinquent from our MBS trusts, we do not exercise this option to purchase loans during a forbearance period. Charge-offs of consolidated trusts generally represent loans that remained in our consolidated trusts at the time of default.
[4]	Includes transfers from trusts for delinquent loan purchases.
[5]	Amounts represent the net activity recorded in our allowances for accrued interest receivable and preforeclosure property taxes and insurance receivable from borrowers. The (benefit) provision for credit losses, charge-offs, recoveries and transfer activity included in this table reflects all changes for both the allowance for loan losses and the valuation allowances for accrued interest and preforeclosure property taxes and insurance receivable that relate to the mortgage loans.
[6]	Upon recognition of the mortgage loans held by newly consolidated trusts and the associated accrued interest receivable at the transition date of our adoption of the consolidation accounting guidance on January 1, 2010, we increased our “Allowance for loan losses” by $43.6 billion, increased our “Allowance for accrued interest receivable” by $7.0 billion and decreased our “Reserve for guaranty losses” by $54.1 billion. The net decrease of $3.5 billion reflects the difference in the methodology used to estimate incurred losses for our allowance for loan losses and accrued interest receivable versus our reserve for guaranty losses.

Allowance for Loan Losses and Reserve for Guaranty Losses Allowance at Recorded Investment (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Allowance for loan losses for individually impaired loans

^[1],[2]

$ 45,034

$ 46,857

Allowance for loan losses for collectively reserved loans

13,761

25,299

Recorded investment in individually impaired loans

58,795

72,156

$ 61,556

$ 9,925

^[1],[3]

200,391

169,840

Recorded investment in collectively reserved loans

^[3]

2,807,080

2,809,051

^[3],[4]

3,007,471

2,978,891

Accounts, Notes, Loans and Financing Receivable [Line Items]

Allowance for loan losses for individually impaired loans

^[1]

44,545

46,139

Allowance for loan losses for collectively reserved loans

13,142

24,494

Recorded investment in individually impaired loans

57,687

70,633

59,980

8,470

^[1],[3]

195,852

165,214

Recorded investment in collectively reserved loans

^[3]

2,620,568

2,634,456

^[3],[4]

2,816,420

2,799,670

Accounts, Notes, Loans and Financing Receivable [Line Items]

Allowance for loan losses for individually impaired loans

^[1]

489

718

Allowance for loan losses for collectively reserved loans

619

805

Recorded investment in individually impaired loans

1,108

1,523

$ 1,576

$ 1,455

^[1],[3]

4,539

4,626

Recorded investment in collectively reserved loans

^[3]

186,512

174,595

^{[3],[4],[5],[6],[7]}

$ 191,051

$ 179,221

[1]	Includes acquired credit-impaired loans.
[2]	Includes single-family loans restructured in a TDR with a recorded investment of $193.4 billion and $161.9 billion as of December 31, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $1.1 billion and $956 million as of December 31, 2012 and 2011, respectively.
[3]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[4]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
[5]	Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).
[6]	Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.
[7]	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.

Allowance for Loan Losses and Reserve for Guaranty Losses Reserve for Guaranty Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reserve for Guaranty Losses [Roll Forward]
Beginning balance, January 1	$ 994	$ 323	$ 54,430
Provision for guaranty losses	339	804	194
Charge-offs	(174)	(138)	(203)
Recoveries	72	5	5
Ending balance, December 31	$ 1,231	$ 994	323
Consolidation Acounting Guidance Adopted on January 1, 2010 [Member]
Reserve for Guaranty Losses [Roll Forward]
Adoption of consolidation accounting guidance			$ (54,103)

Investments in Securities Trading 1 (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	$ 40,695	$ 74,198
Mortgage-related securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	22,745	24,350
Fannie Mae [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	6,248	7,424
Freddie Mac [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	2,793	2,732
Ginnie Mae [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	437	287
Alt-A private-label securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	1,330	1,349
Subprime private-label securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	1,319	1,280
CMBS [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	9,826	10,411
Mortgage revenue bonds [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	675	724
Other mortgage-related securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	117	143
Non-mortgage-related Securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	17,950	49,848
U.S. Treasury Securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	17,950	47,737
Asset-backed securities [Member]
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	$ 0	$ 2,111

Investments in Securities Trading 2 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net trading gains (losses)	$ 1,004	$ 266	$ 2,692
Net trading gains (losses) recorded in the period related to securities still held at period end	1,037	267	2,541
Mortgage-related securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net trading gains (losses)	1,014	274	2,607
Net trading gains (losses) recorded in the period related to securities still held at period end	1,035	268	2,485
Non-mortgage-related Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net trading gains (losses)	(10)	(8)	85
Net trading gains (losses) recorded in the period related to securities still held at period end	$ 2	$ (1)	$ 56

The net change in the difference between the fair value and the carrying value, or in the comparative fair values, of trading securities held at each balance sheet date, that was included in earnings for the period. Trading securities are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) and the change in net unrealized holding gain (loss) is included in earnings for the period.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Trading Securities
-URI http://asc.fasb.org/extlink&oid=6526789

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.7(c))
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 35
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=16383099&loc=d3e24584-111560

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 21
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 12
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Investments, Debt and Equity Securities [Abstract]

Investments in Securities Available-for-sale Securities 1 (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Gross realized gains

$ 40

$ 182

$ 566

Gross realized losses

293

Total proceeds

^[1]

$ 634

$ 2,152

$ 7,207

[1]	Excludes proceeds from the initial sale of securities from new portfolio securitizations included in “Note 2, Consolidations and Transfers of Financial Assets.”

Investments in Securities Available-for-sale Securities 2 (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Schedule of Available-for-sale Securities [Line Items]

^[1]

$ 61,766

$ 78,845

3,464

3,150

^[2]

(1,369)

(3,250)

^[3]

(680)

(1,163)

63,181

77,582

Schedule of Available-for-sale Securities [Line Items]

^[1]

9,580

15,486

871

1,381

^[2]

(3)

^[3]

(16)

(14)

Schedule of Available-for-sale Securities [Line Items]

10,435

16,850

Freddie Mac [Member]

^[1]

8,652

11,906

728

917

^[2]

^[3]

Schedule of Available-for-sale Securities [Line Items]

9,380

12,823

Ginnie Mae [Member]

^[1]

645

775

106

127

^[2]

^[3]

Alt-A private-label securities [Member]

751

902

Schedule of Available-for-sale Securities [Line Items]

^[1]

11,356

13,314

452

233

^[2]

(637)

(1,618)

^[3]

(96)

(246)

11,075

11,683

Schedule of Available-for-sale Securities [Line Items]

^[1]

8,137

9,556

217

^[2]

(669)

(1,534)

^[3]

(238)

(453)

Schedule of Available-for-sale Securities [Line Items]

7,447

7,586

CMBS [Member]

^[1],[4]

12,284

13,949

824

181

^[2]

^[3]

(11)

(104)

Deferred (gain) loss on discontinuation of fair value hedge

13,097

14,026

527

686

Mortgage revenue bonds [Member]

Schedule of Available-for-sale Securities [Line Items]

^[1]

7,782

10,172

157

202

^[2]

(45)

(56)

^[3]

(52)

(64)

Other mortgage-related securities [Member]

7,842

10,254

Schedule of Available-for-sale Securities [Line Items]

^[1]

3,330

3,687

109

^[2]

(18)

(39)

^[3]

(267)

(282)

Schedule of Available-for-sale Securities [Line Items]

$ 3,154

$ 3,458

[1]	Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments as well as the credit component of other-than-temporary impairments (“OTTI”) recognized in our consolidated statements of operations and comprehensive income (loss).
[2]	Represents the noncredit component of other-than-temporary impairments losses recorded in “Accumulated other comprehensive income (loss)” as well as cumulative changes in fair value of securities for which we previously recognized the credit component of other-than-temporary impairments.
[3]	Represents the gross unrealized losses on securities for which we have not recognized other-than-temporary impairments.
[4]	Amortized cost includes $527 million and $686 million as of December 31, 2012 and 2011, respectively, of increases to the carrying amount from previous fair value hedge accounting.

Investments in Securities Available-for-sale Securities 3 (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	$ (43)	$ (255)
Less Than 12 Consecutive Months, Fair Value	1,605	4,523
12 Consecutive Months or Longer, Gross Unrealized Losses	(2,006)	(4,158)
12 Consecutive Months or Longer, Fair Value	12,862	19,768
Fannie Mae [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	(5)	(4)
Less Than 12 Consecutive Months, Fair Value	599	519
12 Consecutive Months or Longer, Gross Unrealized Losses	(11)	(13)
12 Consecutive Months or Longer, Fair Value	372	208
Alt-A private-label securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	(18)	(133)
Less Than 12 Consecutive Months, Fair Value	541	1,414
12 Consecutive Months or Longer, Gross Unrealized Losses	(715)	(1,731)
12 Consecutive Months or Longer, Fair Value	4,465	6,525
Subprime private-label securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	(14)	(73)
Less Than 12 Consecutive Months, Fair Value	243	471
12 Consecutive Months or Longer, Gross Unrealized Losses	(893)	(1,914)
12 Consecutive Months or Longer, Fair Value	5,058	6,686
CMBS [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	0	(20)
Less Than 12 Consecutive Months, Fair Value	0	1,458
12 Consecutive Months or Longer, Gross Unrealized Losses	(11)	(84)
12 Consecutive Months or Longer, Fair Value	240	2,790
Mortgage revenue bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	(3)	(4)
Less Than 12 Consecutive Months, Fair Value	127	114
12 Consecutive Months or Longer, Gross Unrealized Losses	(94)	(116)
12 Consecutive Months or Longer, Fair Value	1,198	1,971
Other mortgage-related securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months, Gross Unrealized Losses	(3)	(21)
Less Than 12 Consecutive Months, Fair Value	95	547
12 Consecutive Months or Longer, Gross Unrealized Losses	(282)	(300)
12 Consecutive Months or Longer, Fair Value	$ 1,529	$ 1,588

Investments in Securities Other-than-temporary Impairments 1 (Details) $ in Billions	Dec. 31, 2012 USD ($)
Investments, Debt and Equity Securities [Abstract]
Aggregate losses in continuous unrealized loss position	$ 2.0
Fair value of securities with unrealized losses for 12 consecutive months or longer as percentage of amortized cost basis	87.00%

Investments in Securities Other-than-temporary Impairments 2 (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

^[1]

Alt-A private-label securities [Member]

$ 12

$ 38

$ 599

$ 64

$ (54)

$ 262

$ 56

$ 44

$ 713

$ 308

$ 722

Schedule of Available-for-sale Securities [Line Items]

365

563

327

Schedule of Available-for-sale Securities [Line Items]

Other mortgage-related securities [Member]

329

(303)

368

Schedule of Available-for-sale Securities [Line Items]

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]

$ 19

$ 48

$ 27

[1]	Certain prior period amounts have been reclassified to conform to the current period presentation.

Investments in Securities Other-than-temporary Impairments 3 (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Out-of-period adjustment due to an overstatement of income and amortized cost.

$ 748

$ 789

$ 1,035

$ 727

$ (248)

^[1]

$ 1,160

$ 1,152

$ 1,213

$ 3,299

$ 3,277

$ 5,290

Available-for-sale Securities [Member]

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]

Balance, beginning of period

$ 8,915

$ 8,215

8,915

8,215

Additions for the credit component on debt securities for which OTTI was not previously recognized

Additions for the credit component on debt securities for which OTTI was previously recognized

698

285

Reductions for securities no longer in portfolio at period end

(5)

(7)

(Reductions) additions for amortization resulting from changes in cash flows expected to be collected over the remaining life of the securities

^[2]

(409)

399

Balance, end of period

$ 9,214

8,915

$ 9,214

8,915

$ 8,215

Out-of-Period Adjustment [Member]

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]

Out-of-period adjustment due to an overstatement of income and amortized cost.

$ (1,200)

$ 727

[1]	Includes an out-of-period adjustment of $933 million comprised of $1.2 billion to reduce “Interest Income: Available-for-sale securities” offset by a $264 million reduction to “Other-than-temporary impairments” in our consolidated statement of operations and comprehensive loss for the three months ended December 31, 2011.
[2]	Amount includes out-of-period adjustment of $727 million in 2011 due to an overstatement of income and amortized cost.

Interest income on securities classified neither as held-to-maturity nor trading ("available-for-sale securities") includes: (a) interest and dividends earned on all securities and (b) amortization and accretion (as applicable) of discounts and premiums, if any.

Investments in Securities Other-than-temporary Impairments 4 (Details)
$ in Millions

Dec. 31, 2012

USD ($)

$ 12,653

65.80%

^[1]

75.20%

^[2]

2.80%

^[3]

Alt-A Option ARM [Member]

18.60%

^[4]

$ 2,604

54.10%

^[1]

65.60%

^[2]

4.60%

^[3]

Alt-A Fixed Rate [Member]

13.90%

^[4]

$ 4,315

21.10%

^[1]

57.60%

^[2]

10.30%

^[3]

Alt-A Variable Rate [Member]

8.20%

^[4]

$ 2,298

46.00%

^[1]

61.30%

^[2]

4.90%

^[3]

Alt-A Hybrid Rate [Member]

7.10%

^[4]

$ 5,548

26.80%

^[1]

52.20%

^[2]

7.20%

^[3]

2004 and Prior [Member] | Subprime private-label securities [Member]

5.10%

^[4]

$ 1,404

39.90%

^[1]

69.00%

^[2]

6.60%

^[3]

2004 and Prior [Member] | Alt-A Option ARM [Member]

51.90%

^[4]

$ 438

37.30%

^[1]

60.00%

^[2]

6.20%

^[3]

2004 and Prior [Member] | Alt-A Fixed Rate [Member]

11.40%

^[4]

$ 2,836

12.80%

^[1]

53.70%

^[2]

12.10%

^[3]

2004 and Prior [Member] | Alt-A Variable Rate [Member]

12.10%

^[4]

$ 431

26.60%

^[1]

53.00%

^[2]

6.50%

^[3]

2004 and Prior [Member] | Alt-A Hybrid Rate [Member]

23.00%

^[4]

$ 1,955

16.30%

^[1]

47.10%

^[2]

9.40%

^[3]

2005 [Member] | Subprime private-label securities [Member]

9.20%

^[4]

$ 136

66.50%

^[1]

74.30%

^[2]

2.60%

^[3]

2005 [Member] | Alt-A Option ARM [Member]

65.30%

^[4]

$ 1,171

51.00%

^[1]

66.10%

^[2]

4.80%

^[3]

2005 [Member] | Alt-A Fixed Rate [Member]

17.10%

^[4]

$ 1,015

36.60%

^[1]

64.50%

^[2]

7.30%

^[3]

2005 [Member] | Alt-A Variable Rate [Member]

0.80%

^[4]

$ 467

46.70%

^[1]

62.70%

^[2]

5.40%

^[3]

2005 [Member] | Alt-A Hybrid Rate [Member]

11.80%

^[4]

$ 2,058

33.30%

^[1]

54.70%

^[2]

6.00%

^[3]

2006 [Member] | Subprime private-label securities [Member]

3.90%

^[4]

$ 10,543

69.20%

^[1]

76.40%

^[2]

2.40%

^[3]

2006 [Member] | Alt-A Option ARM [Member]

13.10%

^[4]

$ 995

65.20%

^[1]

67.40%

^[2]

3.60%

^[3]

2006 [Member] | Alt-A Fixed Rate [Member]

11.20%

^[4]

$ 464

38.30%

^[1]

66.40%

^[2]

5.80%

^[3]

2006 [Member] | Alt-A Variable Rate [Member]

0.20%

^[4]

$ 1,400

51.80%

^[1]

63.40%

^[2]

4.20%

^[3]

2006 [Member] | Alt-A Hybrid Rate [Member]

0.60%

^[4]

$ 1,434

30.90%

^[1]

55.30%

^[2]

6.00%

^[3]

2007 and After [Member] | Subprime private-label securities [Member]

0.00%

^[4]

$ 570

64.60%

^[1]

66.90%

^[2]

1.90%

^[3]

2007 and After [Member] | Alt-A Option ARM [Member]

27.40%

^[4]

2007 and After [Member] | Alt-A Fixed Rate [Member]

$ 0

2007 and After [Member] | Alt-A Variable Rate [Member]

2007 and After [Member] | Alt-A Hybrid Rate [Member]

$ 101

37.10%

^[1]

57.20%

^[2]

6.90%

^[3]

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

21.70%

^[4]

[1]	The expected remaining cumulative default rate of the collateral pool backing the securities, as a percentage of the current collateral unpaid principal balance, weighted by security unpaid principal balance.
[2]	The expected remaining loss given default of the collateral pool backing the securities, calculated as the ratio of remaining cumulative loss divided by cumulative defaults, weighted by security unpaid principal balance.
[3]	The average monthly voluntary prepayment rate, weighted by security unpaid principal balance.
[4]	The average percent current credit enhancement provided by subordination of other securities. Excludes excess interest projections and monoline bond insurance.

Investments in Securities Maturity Information (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

^[1]

$ 61,766

$ 78,845

63,181

77,582

12,367

13,201

2,616

2,758

46,735

One Year or Less, Weighted Average Yield

$ 47,172

Weighted average yield

^[2]

4.64%

^[2]

4.25%

After One Year through Five Years, Weighted Average Yield

^[2]

3.87%

After Five Years through Ten Years, Weighted Average Yield

^[2]

5.03%

After Ten Years, Weighted Average Yield

^[2]

4.82%

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

^[1]

$ 9,580

15,486

10,435

16,850

847

899

8,648

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

9,446

Freddie Mac [Member]

^[1]

8,652

11,906

9,380

12,823

786

845

7,785

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

8,450

Ginnie Mae [Member]

^[1]

645

775

751

902

636

Alt-A private-label securities [Member]

741

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

^[1]

11,356

13,314

11,075

11,683

178

183

11,178

10,892

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

^[1]

8,137

9,556

7,447

7,586

8,137

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

7,447

CMBS [Member]

^[1],[3]

12,284

13,949

13,097

14,026

11,892

12,699

149

164

243

Mortgage revenue bonds [Member]

234

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

^[1]

7,782

10,172

7,842

10,254

309

319

647

657

6,780

Other mortgage-related securities [Member]

6,818

Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]

^[1]

3,330

3,687

3,154

$ 3,458

3,328

Schedule of Available-for-sale Securities [Line Items]

$ 3,144

[1]	Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments as well as the credit component of other-than-temporary impairments (“OTTI”) recognized in our consolidated statements of operations and comprehensive income (loss).
[2]	Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax exempt obligations have been computed on a tax equivalent basis.
[3]	Amortized cost includes $527 million and $686 million as of December 31, 2012 and 2011, respectively, of increases to the carrying amount from previous fair value hedge accounting.

Investments in Securities Accumulated Other Comprehensive Income 1 (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Net unrealized gains on available-for-sale securities for which we have not recorded other-than-temporary impairment, net of tax

$ 1,399

$ 1,152

$ 304

^[1]

Net unrealized losses on available-for-sale securities for which we have recorded other-than-temporary impairment, net of tax

(465)

(1,953)

(1,736)

^[1]

Prior service cost and actuarial gains, net of amortization for defined benefit plans, net of tax

(505)

(389)

(214)

^[1]

Other losses

(45)

(36)

^[1]

Accumulated other comprehensive income (loss)

$ 384

$ (1,235)

(1,682)

^[1]

Consolidation Acounting Guidance Adopted on January 1, 2010 [Member]

Schedule of Available-for-sale Securities [Line Items]

Accumulated other comprehensive income (loss)

$ 3,400

[1]	Includes a net increase of $3.4 billion from the adoption of the consolidation accounting guidance.

The total of net gain (loss), prior service cost (credit), and transition assets (obligations), as well as minimum pension liability if still remaining, included in accumulated other comprehensive income associated with a defined benefit pension or other postretirement plan(s) because they have yet to be recognized as components of net periodic benefit cost.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (j-k)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph i
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Guaranty Book of Business [Member] | Conventional Loan [Member]

Financial Guarantees (Narratives) (Details) $ in Billions	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Guarantor Obligations [Line Items]
Maximum potential exposure under guarantees recognized in our consolidated balance sheets	$ 50.6	$ 59.4
Maximum potential exposure under guarantees not recognized in our consolidated balance sheets	8.3	9.3
Maximum amount recoverable for on-balance sheet guarantees through available credit enhancements and recourse with third parties	13.3	14.1
Maximum amount recoverable for off-balance sheet guarantees through available credit enhancements and recourse with third parties	3.6	4.0
Fair value of guaranty obligation	$ 1.8	$ 2.2
Minimum [Member]
Guarantor Obligations [Line Items]
Contractual terms of our guarantees	30 days	30 days
Maximum [Member]
Guarantor Obligations [Line Items]
Contractual terms of our guarantees	40 years	40 years
Loans with higher risk characteristics (original debt service coverage ratio)	1.10	1.10
Loans with higher risk characteristics (current debt service coverage ratio)	1.0	1.0
Single-Family [Member] \| Minimum [Member]
Guarantor Obligations [Line Items]
Serious delinquency, days past due	90 days	90 days
Multifamily [Member] \| Minimum [Member]
Guarantor Obligations [Line Items]
Serious delinquency, days past due	60 days	60 days

Financial Guarantees Delinquency Status - Single-Family (Details) - Single-Family [Member]

Dec. 31, 2012

Dec. 31, 2011

Accounts, Notes, Loans and Financing Receivable [Line Items]

30 days delinquent, percentage (unpaid principal balance)

^[1],[2]

1.75%

1.98%

60 days delinquent, percentage (unpaid principal balance)

^[1],[2]

0.63%

0.73%

Seriously delinquent, percentage (unpaid principal balance)

^[1],[2],[3]

3.66%

4.47%

30 days delinquent, percentage (loan count)

^[2],[4]

1.96%

2.17%

60 days delinquent, percentage (loan count)

^[2],[4]

0.66%

0.74%

Percentage of loans with detailed loan level information

^[2],[3],[4]

3.29%

3.91%

99.00%

Accounts, Notes, Loans and Financing Receivable [Line Items]

Minimum [Member] | Guaranty Book of Business [Member] | Conventional Loan [Member]

90 days

Accounts, Notes, Loans and Financing Receivable [Line Items]

Percentage of loans with detailed loan level information

99.00%

[1]	Calculated based on the aggregate unpaid principal balance of single-family conventional loans for each category divided by the aggregate unpaid principal balance of loans in our single-family conventional guaranty book of business.
[2]	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.
[3]	Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2012 and 2011.
[4]	Calculated based on the number of single-family conventional loans that were delinquent divided by the total number of loans in our single-family conventional guaranty book of business.

Financial Guarantees Risk Characteristics - Single-Family (Details) - Single-Family [Member]

Dec. 31, 2012

Dec. 31, 2011

Guaranty Book of Business [Member] | Conventional Loan [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[1],[2]

100.00%

Percentage of loans with detailed loan level information

^[3],[4],[5]

3.29%

3.91%

99.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | 2005 [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

5.00%

7.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | 2006 [Member]

^[4],[5],[7]

7.79%

7.27%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

5.00%

7.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | 2007 [Member]

^[4],[5],[7]

12.15%

11.81%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

7.00%

10.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | 2008 [Member]

^[4],[5],[7]

12.99%

12.62%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

5.00%

7.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | All Other Vintages [Member]

^[4],[5],[7]

6.63%

5.64%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

78.00%

69.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Alt-A [Member]

^[4],[5],[7]

1.36%

1.59%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

6.00%

7.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Subprime [Member]

^[4],[5],[7]

11.36%

12.43%

Accounts, Notes, Loans and Financing Receivable [Line Items]

Guaranty Book of Business [Member] | Conventional Loan [Member] | Arizona

^[4],[5],[7]

20.60%

23.18%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

2.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | California

^[4],[5],[7]

2.14%

3.65%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

19.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Florida

^[4],[5],[7]

1.69%

2.46%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

6.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Nevada

^[4],[5],[7]

10.06%

11.80%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

1.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Select Midwest States [Member]

^[4],[5],[7]

6.70%

7.42%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6],[8]

10.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | All Other States [Member]

^{[4],[5],[7],[8]}

3.51%

4.39%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

62.00%

Guaranty Book of Business [Member] | Conventional Loan [Member] | Estimated Mark-to-Market Loan-to-Value Ratio Greater Than 100% [Member]

^[4],[5],[7]

2.85%

3.18%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

13.00%

18.00%

Maximum [Member] | Guaranty Book of Business [Member] | Conventional Loan [Member] | Subprime [Member]

^[4],[5],[7]

13.42%

13.76%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6],[9]

0.50%

Accounts, Notes, Loans and Financing Receivable [Line Items]

Minimum [Member] | Guaranty Book of Business [Member] | Conventional Loan [Member]

90 days

Accounts, Notes, Loans and Financing Receivable [Line Items]

Percentage of loans with detailed loan level information

99.00%

Original LTV Ratio Greater Than 90% and FICO Score Less Than 620 [Member] | Guaranty Book of Business [Member] | Conventional Loan [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[5],[6]

1.00%

Guaranty Book of Business [Member]

^[4],[5],[7]

14.76%

18.67%

[1]	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted over 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.
[2]	Midwest includes IL, IN, IA, MI, MN, NE, ND, OH, SD, WI; Northeast includes CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT, VI; Southeast includes AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV; Southwest includes AZ, AR, CO, KS, LA, MO, NM, OK, TX, UT; West includes AK, CA, GU, HI, ID, MT, NV, OR, WA and WY.
[3]	Calculated based on the number of single-family conventional loans that were delinquent divided by the total number of loans in our single-family conventional guaranty book of business.
[4]	Consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2012 and 2011.
[5]	Consists of the portion of our single-family conventional guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total single-family conventional guaranty book of business as of December 31, 2012 and 2011.
[6]	Calculated based on the aggregate unpaid principal balance of single-family conventional loans for each category divided by the aggregate unpaid principal balance of loans in our single-family conventional guaranty book of business.
[7]	Calculated based on the number of single-family conventional loans that were seriously delinquent divided by the total number of single-family conventional loans for each category included in our guaranty book of business.
[8]	Consists of Illinois, Indiana, Michigan, and Ohio.
[9]	Represents less than 0.5% of the single-family conventional guaranty book of business.

Financial Guarantees Delinquency Status - Multifamily (Details) - Multifamily [Member]

Dec. 31, 2012

Dec. 31, 2011

Accounts, Notes, Loans and Financing Receivable [Line Items]

30 days delinquent, percentage (unpaid principal balance)

^[1],[2]

0.23%

0.11%

Seriously delinquent, percentage (unpaid principal balance)

^[1],[2],[3]

0.24%

0.59%

Percentage of loans with detailed loan level information

99.00%

Accounts, Notes, Loans and Financing Receivable [Line Items]

60 days

[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 the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011 excluding loans that have been defeased.
[3]	Consists of multifamily loans that were 60 days or more past due as of the dates indicated.

Financial Guarantees Risk Characteristics - Multifamily (Details) - Multifamily [Member]

Dec. 31, 2012

Dec. 31, 2011

Accounts, Notes, Loans and Financing Receivable [Line Items]

Current debt service coverage ratio reporting lag

60 days

6 months

Maximum [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Current debt service coverage ratio reporting lag

12 months

Guaranty Book of Business [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Percentage of loans with detailed loan level information

^[1],[2]

100.00%

99.00%

Guaranty Book of Business [Member] | Original Debt Service Coverage Ratio Less Than or Equal to 1.1 [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[3],[4]

8.00%

Guaranty Book of Business [Member] | Original Debt Service Coverage Ratio Greater Than 1.1 [Member]

^[4],[5],[6]

0.22%

0.24%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[3],[4]

92.00%

Guaranty Book of Business [Member] | Current Debt Service Coverage Ratio Less Than 1.0 [Member]

^[4],[5],[6]

0.25%

0.62%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[3],[4],[7]

5.00%

7.00%

Guaranty Book of Business [Member] | Original Loan to Value Ratio Greater Than 80% [Member]

^{[4],[5],[6],[7]}

2.11%

3.66%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[3],[4]

4.00%

5.00%

Guaranty Book of Business [Member] | Original Loan to Value Ratio Less Than or Equal to 80% [Member]

^[4],[5],[6]

0.36%

2.51%

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[3],[4]

96.00%

95.00%

^[4],[5],[6]

0.24%

0.49%

[1]	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011.
[2]	Midwest includes IL, IN, IA, MI, MN, NE, ND, OH, SD, WI; Northeast includes CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT, VI; Southeast includes AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA, WV; Southwest includes AZ, AR, CO, KS, LA, MO, NM, OK, TX, UT; West includes AK, CA, GU, HI, ID, MT, NV, OR, WA and WY.
[3]	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.
[4]	Consists of the portion of our multifamily guaranty book of business for which we have detailed loan level information, which constituted approximately 99% of our total multifamily guaranty book of business as of December 31, 2012 and 2011 excluding loans that have been defeased.
[5]	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 guaranty book of business.
[6]	Consists of multifamily loans that were 60 days or more past due as of the dates indicated.
[7]	Our estimates of current DSCRs are based on the latest available income information for these properties. Although we use the most recently available results of our multifamily borrowers, there is a lag in reporting, which typically can range from 6 to 12 months.

Acquired Property Net (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Acquired Property [Roll Forward]

Write-downs, net of recoveries

$ 11,373

^[1]

$ 16,173

^[1]

$ 9,142

Additions

16,292

18,049

25,199

Disposals

(16,629)

(21,617)

(16,237)

(547)

(1,232)

(1,931)

Ending balance, December 31(1)

^[1]

10,489

11,373

16,173

Valuation allowance

$ 669

$ 1,000

$ 1,900

[1]	Includes valuation allowance of $669 million, $1.0 billion and $1.9 billion for the years ended December 31, 2012, 2011 and 2010, respectively.

Acquired Property Net (Held-for-Use) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Foreclosed Properties Acquired Held-for-Use [Roll Forward]
Beginning balance, January 1	$ 835	$ 889	$ 44
Transfers in from held for sale, net and additions	1,173	1,045	977
Transfers to held for sale, net	(748)	(547)	(64)
Depreciation, asset write−downs and other	(387)	(552)	(68)
Ending balance, December 31	$ 873	$ 835	$ 889

Short-Term Borrowings and Long-Term Debt Short-term Debt (Details) - USD ($)

Dec. 31, 2012

Dec. 31, 2011

$ 108,716,000,000

$ 151,725,000,000

Line of credit amount outstanding

^[1]

0.16%

0.13%

$ 0

Secured Uncommitted Line of Credit [Member]

Line of credit maximum borrowing capacity

15,000,000,000

$ 25,000,000,000

Unsecured Uncommitted Line of Credit [Member]

Line of credit maximum borrowing capacity

500,000,000

$ 105,233,000,000

$ 146,752,000,000

Fannie Mae [Member] | Fixed-Rate Discount Notes [Member]

^[1]

0.16%

0.13%

^[2]

$ 104,730,000,000

$ 146,301,000,000

Fannie Mae [Member] | Fixed-Rate Foreign Exchange Discount Notes [Member]

^[1],[2]

0.15%

0.13%

^[3]

$ 503,000,000

$ 371,000,000

Fannie Mae [Member] | Fixed-Rate Other Debt [Member]

^[1],[3]

1.61%

1.88%

^[4]

$ 0

$ 80,000,000

^[1],[4]

0.00%

0.04%

$ 3,483,000,000

$ 4,973,000,000

Minimum [Member] | Fannie Mae [Member] | Fixed-Rate Discount Notes [Member]

^[1]

0.15%

0.09%

Minimum [Member] | Fannie Mae [Member] | Fixed-Rate Foreign Exchange Discount Notes [Member]

^[2]

0 days

Maximum [Member] | Fannie Mae [Member] | Fixed-Rate Discount Notes [Member]

^[3]

5 days

Maximum [Member] | Fannie Mae [Member] | Fixed-Rate Foreign Exchange Discount Notes [Member]

^[2]

360 days

^[3]

360 days

[1]	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.
[2]	Represents unsecured general obligations with maturities ranging from overnight to 360 days from the date of issuance.
[3]	Represents foreign exchange discount notes we issue in the Euro commercial paper market with maturities ranging from 5 to 360 days which enable investors to hold short-term investments in different currencies. We do not incur foreign exchange risk on these transactions, as we simultaneously enter into foreign currency swaps that have the effect of converting debt that we issue in foreign denominated currencies into U.S. dollars.
[4]	Consists of foreign exchange discount notes denominated in U.S. dollars.

Short-Term Borrowings and Long-Term Debt Long-term Debt (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

$ 3,080,801

^[1]

$ 3,038,147

^[2]

3.18%

3.84%

^[4]

$ 510,631

^[3]

$ 585,692

Net unamortized discount, fair value adjustments and other cost basis adjustments

^[2],[4]

2.25%

2.42%

^[4]

$ 6,000

$ 9,200

Fannie Mae [Member] | Senior Fixed [Member]

$ 465,569

$ 505,606

Fannie Mae [Member] | Senior Fixed Benchmark Notes and Bonds [Member]

^[2]

2.35%

2.64%

$ 251,768

$ 277,146

Fannie Mae [Member] | Senior Fixed Medium-Term Notes [Member]

^[2]

2.59%

2.81%

^[5]

$ 172,288

$ 176,886

Fannie Mae [Member] | Senior Fixed Foreign Exchange Notes and Bonds [Member]

^[2],[5]

1.35%

1.61%

$ 694

$ 662

Fannie Mae [Member] | Senior Fixed Other Debt [Member]

^[2]

5.44%

^[6],[7]

$ 40,819

$ 50,912

Fannie Mae [Member] | Senior Floating [Member]

^[2],[6],[7]

4.99%

5.29%

$ 38,998

$ 72,275

Fannie Mae [Member] | Senior Foating Medium-Term Notes [Member]

^[2]

0.33%

0.35%

^[5]

$ 38,633

$ 71,855

Fannie Mae [Member] | Senior Floating Other Debt [Member]

^[2],[5]

0.27%

0.32%

^[6],[7]

$ 365

$ 420

Fannie Mae [Member] | Subordinated Fixed [Member]

^[2],[6],[7]

8.22%

8.01%

$ 5,719

$ 7,811

Fannie Mae [Member] | Subordinated Fixed Qualifying Subordinated [Member]

^[2]

7.75%

6.88%

^[8]

$ 2,522

$ 4,894

Fannie Mae [Member] | Subordinated Fixed Subordinated Debentures [Member]

^[2],[8]

5.00%

5.08%

$ 3,197

$ 2,917

Fannie Mae [Member] | Secured Borrowings [Member]

^[2]

9.92%

9.91%

^[9]

$ 345

$ 0

^[2],[9]

1.87%

0.00%

^[6]

$ 2,570,170

^[10]

$ 2,452,455

Minimum [Member] | Fannie Mae [Member]

^[2],[6]

3.36%

4.18%

Medium-term notes original contractual maturity

^[5]

1 year

Maximum [Member] | Fannie Mae [Member]

Medium-term notes original contractual maturity

^[5]

10 years

[1]	Includes a portion of structured debt instruments that is reported at fair value.
[2]	Includes unamortized discounts, premiums, fair value adjustments and other cost basis adjustments.
[3]	Reported amount includes a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion.
[4]	Reported amounts include a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion and $9.2 billion as of December 31, 2012 and 2011, respectively.
[5]	Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt.
[6]	Includes a portion of structured debt instruments that is reported at fair value.
[7]	Includes long-term debt that is not included in other debt categories.
[8]	Consists of subordinated debt issued with an interest deferral feature.
[9]	Represents our remaining liability resulting from the transfers 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.
[10]	Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time.

Short-Term Borrowings and Long-Term Debt Characteristics of Debt (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

$ 3,080,801

^[1]

$ 3,038,147

Face amount

621,800

741,600

Net unamortized discount, fair value adjustments and other cost basis adjustments

103,187

95,040

76,591

53,872

90,794

91,147

^[3]

510,631

^[2]

585,692

^[3]

6,000

9,200

Fannie Mae [Member] | Zero-Coupon Debt [Member]

Face amount

$ 120,700

$ 165,800

Effective interest rate

0.93%

0.68%

Callable [Member] | Fannie Mae [Member]

^[5]

$ 2,570,170

^[4]

$ 2,452,455

Assuming Callable Debt Redeemed at Next Available Call Date [Member]

Outstanding debt

177,800

$ 187,900

Assuming Callable Debt Redeemed at Next Available Call Date [Member] | Fannie Mae [Member]

^[1]

3,080,801

Assuming Callable Debt Redeemed at Next Available Call Date [Member] | Consolidated Trusts [Member]

252,419

111,089

48,130

34,077

42,248

22,668

^[2]

510,631

^[4]

$ 2,570,170

[1]	Includes a portion of structured debt instruments that is reported at fair value.
[2]	Reported amount includes a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion.
[3]	Reported amounts include a net unamortized discount, fair value adjustments and other cost basis adjustments of $6.0 billion and $9.2 billion as of December 31, 2012 and 2011, respectively.
[4]	Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time.
[5]	Includes a portion of structured debt instruments that is reported at fair value.

Short-Term Borrowings and Long-Term Debt Debt Called and Repurchased (Details) - Fannie Mae [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Debt Called [Member]
Extinguishment of Debt [Line Items]
Amount of debt called or repurchased	$ 200,713	$ 201,651	$ 289,770
Weighted-average interest rate	2.00%	2.40%	3.10%
Debt Repurchased [Member]
Extinguishment of Debt [Line Items]
Amount of debt called or repurchased	$ 44	$ 2,887	$ 1,333
Weighted-average interest rate	3.80%	3.10%	3.30%

Derivative Instruments Notional and FV Position (Details) - USD ($)
$ in Millions

Dec. 31, 2012

Dec. 31, 2011

$ 396,866

$ 336,877

435

561

464,145

377,748

(705)

(916)

Risk Management Derivatives [Member]

Cash collateral posted

6,300

6,800

Cash collateral received

779

331,075

293,090

Accrued interest receivable

14,828

15,085

1,242

920

Netting adjustment

^[1]

(15,791)

(15,829)

Total net risk management derivatives

279

176

370,879

320,100

Total net risk management derivatives

(20,946)

(21,022)

Accrued interest payable

(1,508)

(1,238)

Netting adjustment

^[1]

22,046

21,898

(408)

(362)

Risk Management Derivatives [Member] | Pay-fixed Swap [Member]

19,450

30,950

270

102

239,017

155,807

Risk Management Derivatives [Member] | Receive-fixed Swap [Member]

(18,237)

(17,391)

231,346

170,668

10,514

8,118

57,190

59,027

Risk Management Derivatives [Member] | Basis Swap [Member]

(200)

(93)

23,199

382

151

122

1,700

9,240

Risk Management Derivatives [Member] | Foreign Currency Swap [Member]

(44)

686

581

193

155

509

451

Risk Management Derivatives [Member] | Pay-fixed Swaption [Member]

(45)

(62)

33,050

48,600

102

165

36,225

47,750

Risk Management Derivatives [Member] | Receive-fixed Swaption [Member]

(184)

(194)

15,970

33,695

3,572

6,371

36,225

47,750

Risk Management Derivatives [Member] | Other [Member]

(2,279)

(3,238)

^[2]

7,374

8,214

^[2]

^[2]

Mortgage Commitment Derivatives [Member]

^[2]

(1)

65,791

43,787

156

385

93,266

57,648

Mortgage Commitment Derivatives [Member] | Mortgage Commitments to Purchase Whole Loans [Member]

(297)

(554)

12,360

9,710

5,232

422

Mortgage Commitment Derivatives [Member] | Forward Contracts to Purchase Mortgage-related Securities [Member]

(8)

34,545

32,707

103

309

12,557

2,570

Mortgage Commitment Derivatives [Member] | Forward Contracts to Sell Mortgage-related Securities [Member]

(23)

(6)

18,886

1,370

75,477

54,656

Derivative Instruments, Gain (Loss) [Line Items]

$ (266)

$ (548)

[1]

[2]

Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts that we account for as derivatives. The mortgage insurance contracts have payment provisions that are not based on a notional amount.

Derivative Instruments (Narratives) (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position	$ 6,400	$ 7,200
Collateral posted for derivatives instruments with credit-risk-related contingent features	6,300	6,800
Additional collateral required or amount required to immediately settle our position if the credit-risk-related contingent features were triggered	$ 159	$ 362

Derivative Instruments FV Gains and Losses (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Risk Management Derivatives [Member]

$ (3,626)

$ (6,562)

$ (3,000)

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Pay-fixed Swap [Member]

(1,938)

(6,139)

(1,807)

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Receive-fixed Swap [Member]

(6,681)

(18,040)

(17,573)

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Basis Swap [Member]

4,052

7,939

14,382

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Foreign Currency Swap [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Pay-fixed Swaption [Member]

156

157

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Receive-fixed Swaption [Member]

132

860

(2,026)

Derivative Instruments, Gain (Loss) [Line Items]

Risk Management Derivatives [Member] | Other [Member]

410

2,932

3,327

Derivative Instruments, Gain (Loss) [Line Items]

Mortgage Commitment Derivatives [Member]

^[1]

(25)

(72)

(91)

Derivative Instruments, Gain (Loss) [Line Items]

Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]

$ (1,688)

$ (423)

$ (1,193)

[1]	Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts.

Income Taxes - Narratives (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narratives (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2009
Income Tax Contingency [Line Items]
Valuation allowance	$ 58,851	$ 64,080
Period of cumulative pre-tax loss position	3 years
US Treasury [Member]
Income Tax Contingency [Line Items]
Total available funding from US Treasury pursuant to the senior preferred stock agreement after 2012, if valuation allowance released	$ 84,000
Total available funding from US Treasury pursuant to the senior preferred stock agreement after 2012	117,600		$ 124,800
Reduction in the funds available to us under the senior preferred stock purchase agreement	$ 34,000

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:
Allowance for loan losses and basis in acquired property, net	$ 26,263	$ 29,935
Mortgage and mortgage-related assets	14,912	12,358
Debt and derivative instruments	5,450	6,562
Partnership credits	5,933	5,473
Partnership and other equity investments	1,610	1,809
Unrealized losses on AFS securities, net	0	442
Net operating loss and alternative minimum tax credit carryforwards	2,586	5,904
Other, net	2,084	2,053
Total deferred tax assets	58,838	64,536
Deferred tax liabilities:
Unrealized gains on AFS securities, net	496	0
Other, net	0	23
Total deferred tax liabilities	496	23
Valuation allowance	(58,851)	(64,080)
Net deferred tax (liabilities) assets	(509)	$ 433
Net operating loss carryforwards subject to expiration	8,300
Capital loss carryforwards	1,500
Alternative minimum tax credit carryforwards that have an indefinite carryforward period	$ 344

Income Taxes - Benefit for Income Taxes (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Current income tax benefit

$ 0

$ 90

$ 82

Deferred income tax benefit

^[1]

Benefit for federal income taxes

$ (1)

$ 0

$ 93

$ (2)

$ 0

$ 82

Proceeds from income tax refunds

$ 1,100

Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]

Statutory corporate tax rate

35.00%

Tax-exempt interest

(0.70%)

0.90%

1.30%

Equity investments in affordable housing projects

(3.90%)

4.80%

6.30%

Change in income tax provision due to valuation allowance changes

0.20%

1.00%

0.10%

Valuation allowance

(30.60%)

(41.20%)

(42.10%)

Effective tax rate

0.00%

0.50%

0.60%

$ (5,300)

$ 7,000

$ 5,900

[1]	Amount excludes the income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).”

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Income Tax Disclosure [Abstract]

Unrecognized tax benefits that was resolved favorably and reduced our effective tax rate

$ 0

$ 60

Accrued interest payable related to unrecognized tax benefits

Interest expense related to unrecognized tax benefits

Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]

Unrecognized tax benefits as of January 1

758

^[1]

864

^[1]

911

Gross increases—tax positions in prior years

Gross decreases—tax positions in prior years

(110)

(2)

(31)

Settlements

(105)

(99)

Unrecognized tax benefits as of December 31

^[1]

648

758

864

Unrecognized tax benefits resulting in net operating loss carryforward

$ 648

$ 758

$ 804

[1]	Amounts exclude tax credits and net operating losses of $648 million, $758 million and $804 million as of December 31, 2012, 2011 and 2010, respectively.

Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Earnings Per Share [Abstract]

Net income (loss)

$ 7,570

$ 1,813

$ 5,119

$ 2,718

$ (2,407)

^[1]

$ (5,085)

$ (2,892)

$ (6,471)

$ 17,220

$ (16,855)

$ (14,018)

Less: Net loss attributable to noncontrolling interest

(5)

(1)

Net income (loss) attributable to Fannie Mae

7,570

1,821

5,114

2,719

(2,406)

(5,085)

(2,893)

(6,471)

17,224

(16,855)

(14,014)

Preferred stock dividends

(2,928)

(2,929)

(2,817)

(2,622)

(2,494)

(2,282)

(2,216)

(11,603)

(9,614)

(7,704)

Undistributed earnings available for distribution to senior preferred stockholders

(4,224)

Net income (loss) attributable to common stockholders

$ 418

$ (1,108)

$ 2,185

$ (98)

$ (5,028)

$ (7,579)

$ (5,175)

$ (8,687)

$ 1,397

$ (26,469)

$ (21,718)

Weighted-average common shares outstanding—Basic

5,762

5,761

5,762

^[2]

5,737

^[2]

5,694

^[2]

Convertible preferred stock

131

Weighted-average common shares outstanding—Diluted

5,893

5,762

5,893

5,761

5,893

^[2]

5,737

^[2]

5,694

^[2]

Earnings (loss) per share:

Basic

$ 0.07

$ (0.19)

$ 0.38

$ (0.02)

$ 0.24

$ (4.61)

$ (3.81)

Diluted

$ 0.07

$ (0.19)

$ 0.37

$ (0.02)

$ 0.24

$ (4.61)

$ (3.81)

Antidilutive weighted-average options and performance awards excluded from computation of diluted EPS

Weighted-average shares of common stock that would be issued upon the full exercise of the warrant issued to Treasury

4,700

4,600

[1]	Includes an out-of-period adjustment of $933 million comprised of $1.2 billion to reduce “Interest Income: Available-for-sale securities” offset by a $264 million reduction to “Other-than-temporary impairments” in our consolidated statement of operations and comprehensive loss for the three months ended December 31, 2011.
[2]	Includes 4.7 billion for the year ended December 31, 2012, and 4.6 billion for both the years ended December 31, 2011 and 2010 of weighted-average shares of common stock, that would be issued upon the full exercise of the warrant issued to Treasury from the date the warrant was issued through December 31, 2012, 2011 and 2010, respectively.

Employee Retirement Benefits (Narratives) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit costs recognized	$ 133	$ 118	$ 112
Contributions [Abstract]
Estimated employer contributions in next fiscal year	48
Assumptions Used [Abstract]
Increase (decrease) in plan expense due to change in assumptions used	22	17	4
Pension Plans [Member]
Contributions [Abstract]
Employer contributions	$ 84	131
Assumptions Used [Abstract]
Decrease in the discount rate used to determine our obligation	0.80%
Qualified Pension Plan [Member]
Contributions [Abstract]
Employer contributions	$ 76	124	$ 42
Estimated employer contributions in next fiscal year	31
Amount accumulated benefit obligation exceeded the fair value of plan assets	140	100
Nonqualified Pension Plans [Member]
Contributions [Abstract]
Employer contributions	8
Estimated employer contributions in next fiscal year	$ 9
Supplemental Pension Plan of 2003 [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum ratio of incentive compensation to base salary	50.00%
Other Postretirement Plans [Member]
Contributions [Abstract]
Employer contributions	$ 6	$ 6
Estimated employer contributions in next fiscal year	$ 8
Assumptions Used [Abstract]
Decrease in the discount rate used to determine our obligation	0.70%
Equity Securities [Member]
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Minimum target plan asset allocations range	55.00%
Maximum target plan asset allocations range	65.00%
Fixed Income Securities [Member]
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Minimum target plan asset allocations range	35.00%
Maximum target plan asset allocations range	45.00%
Other Investments [Member]
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Maximum target plan asset allocations range	2.00%

Employee Retirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pension Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 37	$ 39	$ 37
Interest cost	72	72	66
Expected return on plan assets	(73)	(69)	(60)
Other	30	12	9
Net periodic benefit cost	66	54	52
Other Postretirement Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	6	6	6
Interest cost	9	9	9
Expected return on plan assets	0	0	0
Other	(3)	(7)	(2)
Net periodic benefit cost	$ 12	$ 8	$ 13

An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 30
-Glossary Expected Return on Plan Assets
-URI http://asc.fasb.org/extlink&oid=6512136

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Glossary Expected Return on Plan Assets
-URI http://asc.fasb.org/extlink&oid=6512171

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(3)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

The increase in a defined benefit pension plan's projected benefit obligation or a defined benefit postretirement plan's accumulated postretirement benefit obligation due to the passage of time.

The actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during the period. The portion of the expected postretirement benefit obligation attributed to employee service during the period. The service cost component is a portion of the benefit obligation and is unaffected by the funded status of the plan.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Service Cost (Component of Net Periodic Pension Cost)
-URI http://asc.fasb.org/extlink&oid=6525008

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

After-Tax Amount Recorded in AOCI

Employee Retirement Benefits (Pre- and Post-tax Amounts Recognized in AOCI) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

^[1]

Transition Obligation

$ 505

$ 389

$ 214

Pension Plans [Member]

Actuarial Loss

Current year actuarial loss (gain)

393

218

135

184

Amortization

(29)

(9)

Ending balance, December 31

499

393

Prior Service Cost (Credit)

Prior service credit due to curtailments

Amortization

(1)

(2)

Ending balance, December 31

Transition Obligation