0000310522-22-000174 | 10-K | XBRL Viewer | Federal National Mortgage Association Fannie MAE

Mortgage Loans

We own single-family mortgage loans, which are secured by four or fewer residential dwelling units, and multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these loans as either HFI or HFS. We report the amortized cost of HFI loans for which we have not elected the fair value option at the unpaid principal balance, net of unamortized premiums and discounts, hedge-related basis adjustments, other cost basis adjustments, and accrued interest receivable, net. For purposes of our consolidated balance sheets, we present accrued interest receivable, net separately from the amortized cost of our loans held for investment. We report the carrying value of HFS loans at the lower of cost or fair value and record valuation changes in “Investment gains, net” in our consolidated statements of operations and comprehensive income. See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional information on hedge-related basis adjustments and on the implementation of our fair value hedge accounting program in January 2021.

For purposes of the single-family mortgage loan disclosures below, we display loans by class of financing receivable type. Financing receivable classes used for disclosure consist of: “20- and 30-year or more, amortizing fixed-rate,” “15-year or less, amortizing fixed-rate,” “Adjustable-rate” and “Other.” The “Other” class primarily consists of reverse mortgage loans, interest-only loans, negative-amortizing loans and second liens.

The following table displays the carrying value of our mortgage loans and allowance for loan losses.


	As of December 31,
	2021		2020
	(Dollars in millions)
Single-family	$	3,495,573	$	3,216,146
Multifamily	403,452		373,722
Total unpaid principal balance of mortgage loans	3,899,025		3,589,868
Cost basis and fair value adjustments, net	74,846		74,576
Allowance for loan losses for HFI loans	(5,629)		(10,552)
Total mortgage loans(1)	$	3,968,242	$	3,653,892

(1)Excludes $9.1 billion and $9.8 billion of accrued interest receivable, net of allowance as of December 31, 2021 and 2020, respectively.

The following table displays information about our redesignation of loans and the sales of mortgage loans during the period.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Single family loans redesignated from HFI to HFS:
Amortized cost	$	16,606	$	8,309	$	18,245
Lower of cost or fair value adjustment at time of redesignation(1)	(372)		(291)		(995)
Allowance reversed at time of redesignation	1,605		963		2,484

Single family loans redesignated from HFS to HFI:
Amortized cost	$	5	$	144	$	28
Allowance established at time of redesignation	(1)		(15)		(1)

Single-family loans sold:
Unpaid principal balance	$	16,977	$	9,519	$	19,737
Realized gains, net	1,624		831		1,238

(1)Consists of the write-off against the allowance at the time of redesignation.

The amortized cost of single-family mortgage loans for which formal foreclosure proceedings were in process was $4.4 billion and $5.0 billion as of December 31, 2021 and 2020, respectively. As a result of our various loss mitigation and foreclosure prevention efforts, we expect that a portion of the loans in the process of formal foreclosure proceedings will not ultimately foreclose. In response to the COVID-19 pandemic, we prohibited our servicers from completing foreclosures on our single-family loans through July 31, 2021, except in the case of vacant or abandoned properties. In addition, our servicers were required to comply with a Consumer Financial Protection Bureau (the “CFPB”) rule that prohibited certain new single-family foreclosures on mortgage loans secured by the borrower’s principal residence until after December 31, 2021.

Aging Analysis

The following tables display an aging analysis of the total amortized cost of our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option.

Pursuant to the CARES Act, for purposes of reporting to the credit bureaus, servicers must report a borrower receiving a COVID-19-related payment accommodation during the covered period, such as a forbearance plan or loan modification, as current if the borrower was current prior to receiving the accommodation and the borrower makes all required payments in accordance with the accommodation. For purposes of our disclosures regarding delinquency status, we report loans receiving COVID-19-related payment forbearance as delinquent according to the contractual terms of the loan.


	As of December 31, 2021
		30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate		$	22,862	$	5,192	$	38,288	$	66,342	$	2,902,763	$	2,969,105	$	24,236	$	6,271
15-year or less, amortizing fixed-rate		2,024		326		1,799		4,149		529,278		533,427		1,454		193
Adjustable-rate		161		36		374		571		25,771		26,342		287		63
Other(2)		786		204		1,942		2,932		35,013		37,945		1,008		545
Total single-family		25,833		5,758		42,403		73,994		3,492,825		3,566,819		26,985		7,072
Multifamily(3)		114		N/A		1,693		1,807		404,398		406,205		317		107
Total		$	25,947	$	5,758	$	44,096	$	75,801	$	3,897,223	$	3,973,024	$	27,302	$	7,179


	As of December 31, 2020
	30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	24,928	$	9,414	$	88,276	$	122,618	$	2,619,585	$	2,742,203	$	68,526	$	6,028
15-year or less, amortizing fixed-rate	1,987		601		5,028		7,616		449,443		457,059		4,292		240
Adjustable-rate	268		97		1,143		1,508		29,933		31,441		907		114
Other(2)	1,150		458		5,037		6,645		47,937		54,582		2,861		771
Total single-family	28,333		10,570		99,484		138,387		3,146,898		3,285,285		76,586		7,153
Multifamily(3)	1,140		N/A		3,688		4,828		372,598		377,426		610		302
Total	$	29,473	$	10,570	$	103,172	$	143,215	$	3,519,496	$	3,662,711	$	77,196	$	7,455

(1)Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

(2)Reverse mortgage loans included in “Other” are not aged due to their nature and are included in the current column.

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

Credit Quality Indicators

The following tables display the total amortized cost of our single-family HFI loans by class, year of origination and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market LTV ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower’s equity in the home decreases, which may negatively affect the borrower’s ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan.


	As of December 31, 2021, by Year of Origination(1)
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	798,830	$	881,290	$	177,909	$	87,825	$	111,059	$	666,327	$	2,723,240
Greater than 80% and less than or equal to 90%	129,340		39,689		2,689		1,056		622		1,687		175,083
Greater than 90% and less than or equal to 100%	66,667		2,278		544		229		57		460		70,235
Greater than 100%	21		12		9		16		22		467		547
Total 20- and 30-year or more, amortizing fixed-rate	994,858		923,269		181,151		89,126		111,760		668,941		2,969,105
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	196,163		157,076		25,390		9,595		20,715		121,027		529,966
Greater than 80% and less than or equal to 90%	2,576		259		16		4		2		7		2,864
Greater than 90% and less than or equal to 100%	579		5		—		1		1		4		590
Greater than 100%	—		—		—		—		2		5		7
Total 15-year or less, amortizing fixed-rate	199,318		157,340		25,406		9,600		20,720		121,043		533,427
Adjustable-rate:
Less than or equal to 80%	6,166		2,235		1,065		1,236		2,524		12,501		25,727
Greater than 80% and less than or equal to 90%	438		25		7		4		2		3		479
Greater than 90% and less than or equal to 100%	135		1		—		—		—		—		136
Greater than 100%	—		—		—		—		—		—		—
Total adjustable-rate	6,739		2,261		1,072		1,240		2,526		12,504		26,342
Other:
Less than or equal to 80%	—		—		34		268		655		26,930		27,887
Greater than 80% and less than or equal to 90%	—		—		—		3		6		275		284
Greater than 90% and less than or equal to 100%	—		—		—		1		2		133		136
Greater than 100%	—		—		—		1		1		141		143
Total other	—		—		34		273		664		27,479		28,450
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324

Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	1,001,159	$	1,040,601	$	204,398	$	98,924	$	134,953	$	826,785	$	3,306,820
Greater than 80% and less than or equal to 90%	132,354		39,973		2,712		1,067		632		1,972		178,710
Greater than 90% and less than or equal to 100%	67,381		2,284		544		231		60		597		71,097
Greater than 100%	21		12		9		17		25		613		697
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324


	As of December 31, 2020, by Year of Origination(1)
	2020		2019		2018		2017		2016		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	794,156	$	233,994	$	135,849	$	183,315	$	221,172	$	775,636	$	2,344,122
Greater than 80% and less than or equal to 90%	157,500		85,227		23,440		5,270		1,592		5,958		278,987
Greater than 90% and less than or equal to 100%	109,743		4,186		820		250		124		1,994		117,117
Greater than 100%	28		7		28		77		81		1,756		1,977
Total 20- and 30-year or more, amortizing fixed-rate	1,061,427		323,414		160,137		188,912		222,969		785,344		2,742,203
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	181,418		41,374		15,768		31,497		46,088		132,596		448,741
Greater than 80% and less than or equal to 90%	6,105		811		35		14		8		20		6,993
Greater than 90% and less than or equal to 100%	1,274		9		3		4		3		10		1,303
Greater than 100%	—		—		3		3		3		13		22
Total 15-year or less, amortizing fixed-rate	188,797		42,194		15,809		31,518		46,102		132,639		457,059
Adjustable-rate:
Less than or equal to 80%	2,935		1,839		2,412		4,765		2,678		16,248		30,877
Greater than 80% and less than or equal to 90%	234		152		79		19		5		12		501
Greater than 90% and less than or equal to 100%	56		3		1		—		—		2		62
Greater than 100%	—		—		—		—		—		1		1
Total adjustable-rate	3,225		1,994		2,492		4,784		2,683		16,263		31,441
Other:
Less than or equal to 80%	—		41		328		811		1,028		36,216		38,424
Greater than 80% and less than or equal to 90%	—		2		20		43		30		1,298		1,393
Greater than 90% and less than or equal to 100%	—		2		8		16		10		602		638
Greater than 100%	—		—		4		8		9		631		652
Total other	—		45		360		878		1,077		38,747		41,107
Total	$	1,253,449	$	367,647	$	178,798	$	226,092	$	272,831	$	972,993	$	3,271,810

Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	978,509	$	277,248	$	154,357	$	220,388	$	270,966	$	960,696	$	2,862,164
Greater than 80% and less than or equal to 90%	163,839		86,192		23,574		5,346		1,635		7,288		287,874
Greater than 90% and less than or equal to 100%	111,073		4,200		832		270		137		2,608		119,120
Greater than 100%	28		7		35		88		93		2,401		2,652
Total	$	1,253,449	$	367,647	$	178,798	$	226,092	$	272,831	$	972,993	$	3,271,810

(1)Excludes $9.5 billion and $13.5 billion as of December 31, 2021 and 2020, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, which represents primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV ratio.

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

The following tables display the total amortized cost of our multifamily HFI loans by year of origination and credit-risk rating, excluding loans for which we have elected the fair value option. Property rental income and property valuations are key inputs to our internally assigned credit risk ratings.


	As of December 31, 2021, by Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	58,986	$	79,602	$	64,278	$	55,552	$	44,037	$	87,549	$	390,004
Classified(2)	21		595		2,288		2,114		4,091		7,092		16,201
Total	$	59,007	$	80,197	$	66,566	$	57,666	$	48,128	$	94,641	$	406,205


	As of December 31, 2020, by Year of Origination
	2020		2019		2018		2017		2016		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	71,977	$	68,296	$	62,087	$	50,907	$	43,174	$	70,933	$	367,374
Classified(2)	37		1,041		1,529		2,616		1,579		3,250		10,052
Total	$	72,014	$	69,337	$	63,616	$	53,523	$	44,753	$	74,183	$	377,426

(1)A loan categorized as “Non-classified” is current or adequately protected by the current financial strength and debt service capability of the borrower.

(2)Represents loans classified as “Substandard” or “Doubtful.” Loans classified as “Substandard” have a well-defined weakness that jeopardizes the timely full repayment. “Doubtful” refers to a loan with a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions and values. We had loans with an amortized cost of less than $1 million classified as doubtful as of December 31, 2021 and 2020.

Troubled Debt Restructurings

A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. In addition to formal loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify loans to certain borrowers who have received bankruptcy relief as TDRs. However, our current TDR accounting described herein is temporarily impacted by our election to account for certain eligible loss mitigation activities under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021. See “Note 1, Summary of Significant Accounting Policies” for more information on the COVID-19 relief from TDR accounting and disclosure requirements.

The substantial majority of the loan modifications accounted for as a TDR result in term extensions, interest rate reductions or a combination of both. The average term extension of a single-family modified loan was 145 months, 163 months and 162 months for the years ended December 31, 2021, 2020 and 2019, respectively. The average interest rate reduction was 0.57, 0.37 and 0.13 percentage points for the years ended December 31, 2021, 2020 and 2019, respectively.

The following table displays the number of loans and amortized cost of loans classified as a TDR during the period.


	For the Year Ended December 31,
	2021					2020					2019
	Number of Loans		Amortized Cost			Number of Loans		Amortized Cost			Number of Loans		Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed rate		10,815		$	1,717		29,938		$	5,125		43,283		$	7,140
15-year or less, amortizing fixed rate		1,165		93			2,956		257			4,762		424
Adjustable-rate		116		17			467		72			813		123
Other		524		56			1,688		211			3,001		403
Total single-family		12,620		1,883			35,049		5,665			51,859		8,090
Multifamily		—		—			—		—			11		56
Total TDRs		12,620		$	1,883		35,049		$	5,665		51,870		$	8,146

For loans that defaulted in the period presented and that were classified as a TDR in the twelve months prior to the default, the following table displays the number of loans and the amortized cost of these loans at the time of payment default. For purposes of this disclosure, we define loans that had a payment default as: single-family and multifamily loans with completed TDRs that liquidated during the period, either through foreclosure, deed-in-lieu of foreclosure, or a short sale; single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period.


	For the Year Ended December 31,
	2021					2020					2019
	Number of Loans		Amortized Cost			Number of Loans		Amortized Cost			Number of Loans		Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed rate		7,799		$	1,302		14,127		$	2,578		15,189		$	2,366
15-year or less, amortizing fixed rate		489		37			148		10			594		45
Adjustable-rate		33		5			16		2			91		14
Other		922		166			1,291		208			1,975		315
Total single-family		9,243		1,510			15,582		2,798			17,849		2,740
Multifamily		—		—			4		16			2		18
Total TDRs that subsequently defaulted		9,243		$	1,510		15,586		$	2,814		17,851		$	2,758

Nonaccrual Loans

The table below displays the accrued interest receivable written off through the reversal of interest income for nonaccrual loans.


		For the Year Ended December 31, 2021
		2021		2020
	(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family		$	163	$	206
Multifamily		1		19

The table below includes the amortized cost of and interest income recognized on our HFI single-family and multifamily loans on nonaccrual status by class, excluding loans for which we have elected the fair value option.


	As of December 31,						For the Year Ended December 31,
	2021		2020		2019		2021		2020
	Amortized Cost						Total Interest Income Recognized(1)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	17,599	$	22,907	$	23,427	$	292	$	461
15-year or less, amortizing fixed-rate	430		853		858		6		15
Adjustable-rate	107		270		288		1		5
Other	1,101		2,475		2,973		15		43
Total single-family	19,237		26,505		27,546		314		524
Multifamily	1,259		2,069		435		14		59
Total nonaccrual loans	$	20,496	$	28,574	$	27,981	$	328	$	583

(1)Single-family interest income recognized includes amounts accrued while the loans were performing, including the amortization of any deferred cost basis adjustments, as well as payments received on nonaccrual loans held as of period end. Multifamily interest income recognized includes amounts accrued while the loans were performing and the amortization of any deferred cost basis adjustments for nonaccrual loans held as of period end.

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2021

Allowance for Loan Losses

We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option. When calculating our allowance for loan losses, we consider the unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date. We record write-offs as a reduction to our allowance for loan losses at the point of foreclosure, completion of a short sale, upon the redesignation of nonperforming and reperforming loans from HFI to HFS or when a loan is determined to be uncollectible.

The following table displays changes in our allowance for single-family loans, multifamily loans and total allowance for loan losses, including the transition impact of adopting the CECL standard, on January 1, 2020. See “Note 1, Summary of Significant Accounting Policies” for additional information and accounting policies on loans held for sale and changes resulting from our adoption of the CECL standard.

The benefit or provision for loan losses excludes provision for accrued interest receivable losses, guaranty loss reserves and credit losses on available-for-sale (“AFS”) debt securities. Cumulatively, these amounts are recognized as “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income.


	For the Year Ended December 31,
	2021		2020
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(9,344)	$	(8,759)
Transition impact of the adoption of the CECL standard	—		(1,229)
Benefit (provision) for loan losses	4,503		127
Write-offs	417		457
Recoveries	(419)		(93)
Other	(107)		153
Ending Balance	$	(4,950)	$	(9,344)
Multifamily allowance for loan losses:
Beginning balance	$	(1,208)	(257)
Transition impact of the adoption of the CECL standard	—		(493)
Benefit (provision) for loan losses	519		(593)
Write-offs	59		136
Recoveries	(49)		(1)
Ending Balance	$	(679)	$	(1,208)
Total allowance for loan losses:
Beginning balance	$	(10,552)	$	(9,016)
Transition impact of the adoption of the CECL standard	—		(1,722)
Benefit (provision) for loan losses	5,022		(466)
Write-offs	476		593
Recoveries	(468)		(94)
Other	(107)		153
Ending Balance	$	(5,629)	$	(10,552)

Our benefit or provision for loan losses can vary substantially from period to period based on a number of factors, such as changes in actual and forecasted home prices or property valuations, fluctuations in actual and forecasted interest rates, borrower payment behavior, events such as natural disasters or pandemics, the type, volume and effectiveness of our loss mitigation activities, including forbearances and loan modifications, the volume of foreclosures completed, and the redesignation of loans from HFI to HFS. Our benefit or provision can also be impacted by updates to the models, assumptions, and data used in determining our allowance for loan losses. As described below, our benefit or provision for loan losses and our loss reserves have been significantly affected by our estimates of the impact of the COVID-19 pandemic and the pace and strength of the economy’s subsequent recovery, which require significant management judgment.

The primary factors that contributed to our single-family benefit for loan losses for 2021 were:

•Benefit from actual and forecasted home price growth. In 2021, actual home price growth was at record levels. We expect home price growth to moderate in 2022, with slower growth expected thereafter. Higher home prices decrease the likelihood that loans will default and reduce the amount of credit loss on loans that do default, which impacts our estimate of losses and ultimately reduces our loss reserves and provision for loan losses.

•Benefit from the redesignation of certain nonperforming and reperforming single-family loans from HFI to HFS. We redesignated certain nonperforming and reperforming single-family loans from HFI to HFS, as we no longer intend to hold them for the foreseeable future or to maturity. Upon redesignation of these loans, we recorded the loans at the lower of cost or fair value with a write-off against the allowance for loan losses. Amounts recorded in the allowance related to these loans exceeded the amounts written off, resulting in a net benefit for loan losses.

•Benefit from changes in assumptions regarding COVID-19 forbearance and loan delinquencies. During the first half of 2021, management used its judgment to supplement the loss projections developed by our credit loss model to account for uncertainty arising from the COVID-19 pandemic that was not represented in historical data or otherwise captured by our credit model. For the second half of 2021, management removed the remaining non-modeled adjustment as the effects of the government’s economic stimulus, the vaccine rollout, and the effectiveness of COVID-19-related loss mitigation strategies were much less uncertain. Specifically, the decrease in uncertainty as of December 31, 2021 compared with the end of 2020 was primarily driven by the passage of the American Rescue Plan Act of 2021 and the broad implementation of the COVID-19 vaccination program in the United States, which contributed to a significant increase in business activity and helped support continued economic growth. There has also been a steady decline in the number of borrowers in a COVID-19-related forbearance, lessening expectations of loan losses. Additionally, we believe the array of possible future economic environments included in our credit model, which captures scenarios that may be remote, combined with data consumed over the course of the COVID-19 pandemic, such as forbearance outcomes, have removed the need to continue to supplement modeled results.

The impact of these factors was partially offset by the impact of the following factor, which reduced our single-family benefit for loan losses recognized in 2021.

•Provision for higher actual and projected interest rates. Actual and projected interest rates were higher as of December 31, 2021 compared with December 31, 2020. As mortgage rates increase, we expect a decrease in future prepayments on single-family loans, including modified loans. Lower expected prepayments extend the expected lives of modified loans, which increases the expected impairment relating to term and interest-rate concessions provided on these loans, resulting in a provision for loan losses.

The primary factors that contributed to our single-family benefit for loan losses in 2020 were:

•Benefit from actual and expected home price growth. In the first quarter of 2020, we significantly reduced our expectations for home price growth to near-zero for 2020. However, the negative impact from the first quarter of 2020 was more than offset by a robust increase in actual home price growth through the remainder of 2020 despite the COVID-19 pandemic. In addition, we also expected more moderate home price growth for 2021.

•Benefit from lower actual and projected interest rates. For much of 2020, we continued to be in a historically low interest rate environment, which we expected to continue in 2021. We expected continuing low interest rates would result in a continuing high level of prepayments on single-family loans, including modified loans. Higher expected prepayments shorten the expected lives of modified loans, which decreases the expected impairment relating to term and interest-rate concessions provided on these loans and results in a benefit for loan losses.

•Benefit from the redesignation of certain reperforming single-family loans from HFI to HFS. In the third quarter of 2020, we resumed sales of reperforming loans after our suspension of new loan sales in the second quarter of 2020. As a result, we redesignated certain reperforming single-family loans from HFI to HFS in the second half of 2020, as we no longer intended to hold them for the foreseeable future or to maturity. Upon redesignation of these loans, we recorded the loans at the lower of cost or fair value with a write-off against the allowance for loan losses. Amounts recorded in the allowance related to these loans exceeded the amounts written off, resulting in a benefit.

These benefits were substantially offset by the impact of the COVID-19 pandemic, including increased delinquencies, as described below.

•Provision from changes in actual and expected loan delinquencies and change in assumptions regarding COVID-19 forbearance, which included adjustments to modeled results. The economic dislocation caused by the COVID-19 pandemic was a significant driver of credit-related expenses during 2020, with the majority of the impact recognized in the first quarter of 2020. Estimating expected loan losses as a result of the COVID-19 pandemic required significant management judgment regarding a number of matters, including our expectations surrounding the length of time that loans would remain in forbearance and the type and extent of loss mitigation that might be needed when loans exited a COVID-19-related forbearance, political uncertainty and the high degree of uncertainty regarding the future course of the pandemic, including new strains of the virus and its effect on the economy. As a result, we believed the model used to estimate single-family loan losses did not capture the entirety of losses we expected to incur relating to COVID-19 at that time. Accordingly, management used its judgment to significantly increase the loss projections developed by our credit loss model in the first quarter of 2020. The model consumed data from the initial quarters of the pandemic, including loan delinquencies, and updated credit profile data for loans in forbearance. As more of this data was consumed by our credit loss model throughout the year, we reduced the non-modeled adjustment initially recorded in the first quarter of 2020.

However, management continued to apply its judgment and supplement model results as of December 31, 2020, taking into account the continued high degree of uncertainty regarding the future impact of the pandemic and its effect on the economy at that time.

The primary factor that contributed to a decrease in single-family write-offs in 2020 compared with 2019 was a reduction in the volume of reperforming loans redesignated from HFI to HFS.

The primary factors that contributed to our multifamily benefit for loan losses for 2021 were:

•Benefit from actual and projected economic data. In 2021, property value forecasts increased due to continued demand for multifamily housing. In addition, improved job growth led to an increase in projected average property net operating income, which reduced the probability of loan defaults, resulting in a benefit for loan losses for the year.

•Benefit from lower expected loan losses as a result of the COVID-19 pandemic. Similar to our single-family benefit for loan losses described above, for the first half of 2021 management used its judgment to supplement the loss projections developed by our credit loss model to account for uncertainty arising from the COVID-19 pandemic. For the second half of 2021, management removed the remaining non-modeled adjustment as the effects of the economic stimulus, the vaccine rollout, and the effectiveness of COVID-19-related loss mitigation strategies were much less uncertain.

Our multifamily provision for loan losses in 2020 was driven by higher expected losses as a result of the economic dislocation caused by the COVID-19 pandemic and heightened economic uncertainty, driven by elevated unemployment, which we expected would result in a decrease in multifamily property net operating income and property values. In addition, the multifamily provision for loan losses included increased expected loan losses on seniors housing loans, as these properties were disproportionately impacted by the pandemic. Consistent with the single-family discussion above, we believed the model we used to estimate multifamily loan losses did not capture the entirety of losses we expected to incur relating to COVID-19 at that time. Accordingly, management used its judgment to increase the loss projections developed by our credit loss model. The model consumed data from the initial quarters of the pandemic, but we continued to apply management judgment and supplement model results as of December 31, 2020, taking into account the continued high degree of uncertainty that remained related to the impact of the pandemic.

The following table displays changes in single-family and multifamily allowance for loan losses for the year ended 2019 prior to the adoption of the CECL standard. For a description of our previous allowance and impairment methodology refer to “Note 1, Summary of Significant Accounting Policies.”


		For the Year Ended December 31,
		2019
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance		$	(13,969)
Benefit for loan losses		3,988
Write-offs		1,299
Recoveries		(71)
Other		(6)
Ending Balance		$	(8,759)
Multifamily allowance for loan losses:
Beginning balance		$	(234)
Provision for loan losses		(27)
Write-offs		8
Recoveries		(4)
Ending Balance		$	(257)
Total allowance for loan losses:
Beginning balance		$	(14,203)
Benefit for loan losses		3,961
Write-offs		1,307
Recoveries		(75)
Other		(6)
Ending Balance		$	(9,016)

Investments in Securities

12 Months Ended

Dec. 31, 2021

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 gains (losses), net” in our consolidated statements of operations and comprehensive income. The following table displays our investments in trading securities.


	As of December 31,
	2021		2020
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae	$	1,576	$	2,404
Other agency(1)	2,893		3,451
Private-label and other mortgage securities	137		158
Total mortgage-related securities (includes $593 million and $793 million, respectively, related to consolidated trusts)	4,606		6,013
Non-mortgage-related securities:
U.S. Treasury securities	83,581		130,456
Other securities	19		73
Total non-mortgage-related securities	83,600		130,529
Total trading securities	$	88,206	$	136,542

(1)Consists of Freddie Mac and Ginnie Mae mortgage-related securities.

The following table displays information about our net trading gains (losses).



	For the Year Ended December 31,
	2021			2020			2019
	(Dollars in millions)
Net trading gains (losses)		$	(1,060)		$	513		$	322
Net trading gains (losses) recognized in the period related to securities still held at period end		(997)			252			238

Available-for-Sale Securities

We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive loss” and we recognize realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income. We define the amortized cost basis of our AFS securities as unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments. Pursuant to the CECL standard, we record an allowance for credit losses for AFS securities that reflects the impairment for credit losses, which are limited to the amount that fair value is less than the amortized cost. Impairment due to non-credit losses are recorded as unrealized losses within “Other comprehensive loss.”

The following tables display the amortized cost, allowance for credit losses, gross unrealized gains and losses in accumulated other comprehensive income (loss) (“AOCI”), and fair value by major security type for AFS securities.


	As of December 31, 2021
	Total Amortized Cost(1)			Allowance for Credit Losses(3)			Gross Unrealized Gains in AOCI			Gross Unrealized Losses in AOCI			Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	492		$	—		$	14		$	(11)		$	495
Other agency(2)		12			—			—			—			12
Alt-A and subprime private-label securities		3			—			2			—			5

Mortgage revenue bonds		142			—			5			(3)			144
Other mortgage-related securities		178			—			3			—			181
Total		$	827		$	—		$	24		$	(14)		$	837


	As of December 31, 2020
	Total Amortized Cost(1)			Allowance for Credit Losses			Gross Unrealized Gains			Gross Unrealized Losses			Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	1,094		$	—		$	86		$	(12)		$	1,168
Other agency(2)		59			—			6			—			65
Alt-A and subprime private-label securities		4			—			2			—			6

Mortgage revenue bonds		211			(3)			8			—			216
Other mortgage-related securities		238			—			4			—			242
Total		$	1,606		$	(3)		$	106		$	(12)		$	1,697

(1)We exclude from amortized cost and fair value accrued interest of $2 million and $6 million as of December 31, 2021 and December 31, 2020, respectively, which we record in “Other assets” in our consolidated balance sheets.

(2)Other agency securities consist of securities issued by Freddie Mac and Ginnie Mae.

(3)Total allowance for credit losses is less than $0.5 million as of December 31, 2021.

Fannie Mae and Other Agency Securities

Our Fannie Mae and other agency AFS securities consist of securities issued by us, Freddie Mac, or Ginnie Mae. The principal and interest on these securities are guaranteed by the issuing agency. We believe that the guaranty provided by the issuing agency, the support provided to the agencies by the U.S. government, the importance of the agencies to the liquidity and stability in the secondary mortgage market, and the long history of zero credit losses on agency mortgage-related securities are all indicators that there are currently no credit losses on these securities, even if the security is in an unrealized loss position. In addition, we generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we do not recognize an allowance for credit losses on agency mortgage-related securities.

Non-Agency Mortgage-Related Securities

As of December 31, 2021, substantially all of our non-agency mortgage-related securities were in an unrealized gain position. As a result, we have not recognized an allowance for credit losses on these securities.

The following tables display additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position, excluding allowance for credit losses.


	As of December 31, 2021
	Less Than 12 Consecutive Months						12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(5)		$	225		$	(6)		$	102


Mortgage revenue bonds		(3)			3			—			—

Total		$	(8)		$	228		$	(6)		$	102

	As of December 31, 2020
	Less Than 12 Consecutive Months						12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(1)		$	40		$	(11)		$	94
Mortgage revenue bonds		—			—			—			—

Total		$	(1)		$	40		$	(11)		$	94

The following table displays the gross realized gains and proceeds on sales of AFS securities.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Gross realized gains	$	59	$	57	$	265

Total proceeds (excludes initial sale of securities from new portfolio securitizations)	582		361		537

The following tables display net unrealized gains and losses on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax.


	As of December 31,
	2021		2020
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	9	$	74
Net unrealized gains (losses) on AFS securities for which we have recorded an allowance for credit losses	(2)		—
Other	31		42
Accumulated other comprehensive income	$	38	$	116


	As of December 31,
	2019
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded other-than-temporary impairment (“OTTI”)	$	97
Net unrealized gains (losses) on AFS securities for which we have recorded OTTI	—
Other	34
Accumulated other comprehensive income	$	131

Prior to our adoption of the CECL standard on January 1, 2020, we evaluated AFS securities for other-than-temporary impairment. The balance of the unrealized credit-loss component of AFS securities held by us and recognized in our consolidated statements of operations and comprehensive income was $36 million as of December 31, 2019.

Maturity Information

The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time.


	As of December 31, 2021
	Total Carrying Amount (1)				Total Fair Value			One Year or Less							After One Year Through Five Years							After Five Years Through Ten Years							After Ten Years
								Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value
	(Dollars in millions)
Fannie Mae		$	492			$	495		$	—			$	—		$	3			$	3		$	11			$	12		$	478			$	480
Other agency		12				12			—				—			—				—			1				1			11				11
Alt-A and subprime private-label securities		3				5			—				—			—				—			2				2			1				3

Mortgage revenue bonds		142				144			4				4			21				22			10				10			107				108
Other mortgage-related securities		178				181			—				—			—				—			3				4			175				177
Total		$	827			$	837		$	4			$	4		$	24			$	25		$	27			$	29		$	772			$	779
Weighted-average interest rate (2)		5.32		%					6.09		%					6.66		%					7.75		%					5.19		%

(1)Net carrying amount consists of amortized cost, net of allowance for credit losses on AFS debt securities but does not include any unrealized fair value gains or losses.

(2)Weighted-average interest rate includes the effects of discounts, premiums and other cost basis adjustments

Financial Guarantees

12 Months Ended

Dec. 31, 2021

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 off-balance sheet guarantees expose us to credit losses primarily relating to the unpaid principal balance of our unconsolidated Fannie Mae MBS and other financial guarantees. The maximum remaining contractual term of our guarantees is 31 years; however, the actual term of each guaranty may be significantly less than the contractual term based on the prepayment characteristics of the related mortgage loans. With our adoption of the CECL standard on January 1, 2020, we measure our guaranty reserve for estimated credit losses for off-balance sheet exposures over the contractual period for which they are exposed to the credit risk, unless that obligation is unconditionally cancellable by the issuer.

As the guarantor of structured securities backed in whole or in part by Freddie Mac-issued securities, we extend our guaranty to the underlying Freddie Mac securities in our resecuritization trusts. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We do not charge an incremental guaranty fee to include Freddie Mac securities in the structured securities that we issue. When we began issuing UMBS in June 2019, we entered into an indemnification agreement under which Freddie Mac agreed to indemnify us for losses caused by its failure to meet its payment or other specified obligations under the trust agreements pursuant to which the underlying resecuritized securities were issued. As a result, and due to the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury, we have concluded that the associated credit risk is negligible. As such, we exclude from the following table Freddie Mac securities backing unconsolidated Fannie Mae-issued structured securities of approximately $212.3 billion and $137.3 billion as of December 31, 2021 and December 31, 2020, respectively.

The following table displays our off-balance sheet maximum exposure, guaranty obligation recognized in our consolidated balance sheets and the potential maximum recovery from third parties through available credit enhancements and recourse related to our financial guarantees.


	As of December 31,
	2021									2020
	Maximum Exposure		Guaranty Obligation			Maximum Recovery(1)			Maximum Exposure			Guaranty Obligation			Maximum Recovery(1)
	(Dollars in millions)
Unconsolidated Fannie Mae MBS	$	3,733		$	16		$	3,626		$	4,424		$	18		$	4,226
Other guaranty arrangements(2)	10,423			85			2,117			11,828			109			2,438
Total	$	14,156		$	101		$	5,743		$	16,252		$	127		$	6,664

(1) Recoverability of such credit enhancements and recourse is subject to, among other factors, the ability of our mortgage insurers and the U.S. government, as a financial guarantor, to meet their obligations to us. For information on our mortgage insurers, see “Note 13, Concentrations of Credit Risk.”

(2) Primarily consists of credit enhancements and long-term standby commitments.

Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-Term and Long-Term Debt

In January 2021, we began applying fair value hedge accounting to certain debt issuances. The objective of our fair value hedges is to reduce GAAP earnings volatility related to changes in benchmark interest rates. See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional information on our fair value hedge accounting policy and related disclosures.

Short-Term Debt

The following table displays our outstanding short-term debt (debt with an original contractual maturity of one year or less) and weighted-average interest rates of this debt.


	As of December 31,
	2021				2020
	Outstanding		Weighted- Average Interest Rate(1)		Outstanding		Weighted- Average Interest Rate(1)
	(Dollars in millions)

Short-term debt of Fannie Mae	$	2,795	0.03	%	$	12,173	0.18	%

(1)Includes the effects of discounts, premiums and other cost basis adjustments.

Long-Term Debt

Long-term debt represents debt with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt.


	As of December 31,
	2021					2020
	Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)		Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2022 - 2030	$	89,618	2.13	%	2021 - 2030	$	106,691	2.03	%
Medium-term notes(3)	2022 - 2031	38,312		0.60		2021 - 2030	48,524		0.63
Other(4)	2023 - 2038	7,045		3.73		2021 - 2038	6,701		3.90
Total senior fixed		134,975		1.78			161,916		1.69
Senior floating:
Medium-term notes(3)	2022	51,583		0.32		2021 - 2022	100,089		0.35
Connecticut Avenue Securities(5)	2023 - 2031	11,166		4.30		2023 - 2031	14,978		4.16
Other(6)	2037	373		7.17		2037	416		7.75
Total senior floating		63,122		1.05			115,483		0.86


Total long-term debt of Fannie Mae(7)		198,097		1.55			277,399		1.34
Debt of consolidated trusts	2022 - 2061	3,957,299		1.89		2021 - 2060	3,646,164		1.88
Total long-term debt		$	4,155,396	1.88	%		$	3,923,563	1.85	%

(1)Outstanding debt balance consists of the unpaid principal balance, premiums and discounts, fair value adjustments, hedge-related basis adjustments, and other cost basis adjustments.

(2)Excludes the effects of fair value adjustments and hedge-related basis adjustments.

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

(4)Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds.

(5)Consists of CAS debt issued prior to November 2018, a portion of which is reported at fair value. See “Note 2, Consolidations and Transfers of Financial Assets” for more information about our CAS structures issued beginning November 2018.

(6)Consists of structured debt instruments that are reported at fair value.

(7)Includes unamortized discounts and premiums, fair value adjustments, hedge-related cost basis adjustments, and other cost basis adjustments in a net discount position of $1.6 billion and $392 million as of December 31, 2021 and 2020, respectively.

Our long-term debt includes a variety of debt types. We issue fixed and floating-rate medium-term notes with maturities greater than one year that are issued through dealer banks. We also offer Benchmark Notes® in regularly-scheduled issuances that provide increased efficiency, liquidity and tradability to the market. Additionally, we have historically issued notes and bonds denominated in a foreign currency. We effectively convert all outstanding foreign currency-denominated transactions into U.S. dollars through the use of foreign currency swaps for the purpose of funding our mortgage assets. Our long-term debt also includes CAS securities issued prior to November 2018, which are credit risk-sharing securities that transfer a portion of the credit risk on specified pools of single-family mortgage loans to the investors in these securities.

Our other long-term debt includes callable and non-callable securities, which include all long-term non-Benchmark securities, such as zero-coupon bonds, fixed rate and other long-term securities, and are generally negotiated underwritings with one or more dealers or dealer banks.

Characteristics of Debt

As of December 31, 2021 and 2020, the face amount of our debt securities of Fannie Mae was $202.5 billion and $290.0 billion, respectively. As of December 31, 2021, we had zero-coupon debt with a face amount of $3.2 billion, which had an effective interest rate of 0.66%. As of December 31, 2020, we had zero-coupon debt with a face amount of $5.1 billion, which had an effective interest rate of 0.50%.

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, 2021 and 2020 included $47.0 billion and $57.5 billion, respectively, of callable debt that could be redeemed, in whole or in part, at our option on or after a specified date.

The following table displays the amount of our long-term debt as of December 31, 2021 by year of maturity for each of the years 2022 through 2026 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)
2022		$	65,617		$	100,564
2023		23,255			20,856
2024		18,817			14,169
2025		38,141			21,614
2026		9,598			7,195
Thereafter		42,669			33,699
Total long-term debt of Fannie Mae(1)		198,097			198,097
Debt of consolidated trusts(2)		3,957,299			3,957,299
Total long-term debt		$	4,155,396		$	4,155,396

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

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

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.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments

Derivative instruments are an integral part of our strategy in managing interest-rate risk. Derivative instruments may be privately-negotiated, bilateral contracts, or they may be listed and traded on an exchange. We refer to our derivative transactions made pursuant to bilateral contracts as our over-the-counter (“OTC”) derivative transactions and our derivative transactions accepted for clearing by a derivatives clearing organization as our cleared derivative transactions. We typically do not settle the notional amount of our risk management derivatives; rather, notional amounts provide the basis for calculating actual payments or settlement amounts. The derivative contracts we use for interest-rate risk management purposes fall into these broad categories:

•Interest-rate swap contracts. An interest-rate swap is a transaction between two parties in which each party agrees to exchange payments tied to different interest rates or indices for a specified period of time, generally based on a notional amount of principal. The types of interest-rate swaps we use include pay-fixed swaps, receive-fixed swaps and basis swaps.

•Interest-rate option contracts. These contracts primarily include pay-fixed swaptions, receive-fixed swaptions, cancelable swaps and interest-rate caps. A swaption is an option contract that allows us or a counterparty to enter into a pay-fixed or receive-fixed swap at some point in the future.

•Foreign currency swaps. These swaps convert debt that we issue in foreign denominated currencies into U.S. dollars. We enter into foreign currency swaps only to the extent that we hold foreign currency debt.

•Futures. These are standardized exchange-traded contracts that either obligate a buyer to buy an asset at a predetermined date and price or a seller to sell an asset at a predetermined date and price. The types of futures contracts we enter into include SOFR and U.S. Treasury.

We account for certain forms of credit risk transfer transactions as derivatives. In our credit risk transfer transactions, a portion of the credit risk associated with losses on a reference pool of mortgage loans is transferred to a third party. We enter into derivative transactions that are associated with some of our credit risk transfer transactions, whereby we manage investment risk to guarantee that certain unconsolidated VIEs have sufficient cash flows to pay their contractual obligations.

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

We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade-date basis. Fair value amounts, which are (1) netted to the extent a legal right of offset exists and is enforceable by law at the counterparty level and (2) inclusive of the right or obligation associated with the cash collateral posted or received, are recorded in “Other assets” or “Other liabilities” in our consolidated balance sheets. See “Note 15, Fair Value” for additional information on derivatives recorded at fair value. We present cash flows from derivatives as operating activities in our consolidated statements of cash flows.

Fair Value Hedge Accounting

As discussed in “Note 1, Summary of Significant Accounting Policies,” we implemented a fair value hedge accounting program in January 2021. Pursuant to this program, we may designate certain interest-rate swaps as hedging instruments in hedges of the change in fair value attributable to the designated benchmark interest rate for certain closed pools of fixed-rate, single-family mortgage loans or our funding debt. For hedged items in qualifying fair value hedging relationships, changes in fair value attributable to the designated risk are recognized as a basis adjustment to the hedged item. We also report changes in the fair value of the derivative hedging instrument in the same consolidated statements of operations and comprehensive income line item used to recognize the earnings effect of the hedged item’s basis adjustment. The objective of our fair value hedges is to reduce GAAP earnings volatility related to changes in benchmark interest rates.

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,
	2021						2020
	Notional Amount		Estimated Fair Value				Notional Amount		Estimated Fair Value
			Asset Derivatives		Liability Derivatives				Asset Derivatives		Liability Derivatives
	(Dollars in millions)
Risk management derivatives designated as hedging instruments:
Swaps:(1)
Pay-fixed	$	4,347	$	—	$	—	$	—	$	—	$	—
Receive-fixed	40,686		—		—		—		—		—

Total risk management derivatives designated as hedging instruments	45,033		—		—		—		—		—
Risk management derivatives not designated as hedging instruments:
Swaps:(1)
Pay-fixed	56,817		—		—		99,822		3		(684)
Receive-fixed	56,874		—		(1,131)		126,234		314		(137)
Basis	250		152		—		250		203		—
Foreign currency	336		25		(34)		476		59		(60)
Swaptions:(1)
Pay-fixed	4,341		52		(2)		7,555		37		(118)
Receive-fixed	1,091		10		(21)		4,055		346		(16)
Futures(1)	—		—		—		64,398		—		—

Total risk management derivatives not designated as hedging instruments	119,709		239		(1,188)		302,790		962		(1,015)
Netting adjustment(2)	—		(237)		1,173		—		(905)		995
Total risk management derivatives portfolio	164,742		2		(15)		302,790		57		(20)
Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	13,192		17		(5)		35,343		145		—
Forward contracts to purchase mortgage-related securities	58,021		83		(34)		144,822		844		—
Forward contracts to sell mortgage-related securities	111,173		69		(158)		228,027		—		(1,426)
Total mortgage commitment derivatives	182,386		169		(197)		408,192		989		(1,426)
Credit enhancement derivatives	19,256		—		(21)		28,197		179		(49)
Derivatives at fair value	$	366,384	$	171	$	(233)	$	739,179	$	1,225	$	(1,495)

(1)Centrally cleared derivatives have no ascribable fair value because the positions are settled daily.

(2)The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $966 million and $658 million as of December 31, 2021 and 2020, respectively. Cash collateral received was $30 million and $568 million as of December 31, 2021 and 2020, respectively.

We record all gains and losses, including accrued interest, on derivatives while they are not in a qualifying hedging relationship in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	2,207	$	(2,764)	$	(3,964)
Receive-fixed	(1,783)		2,226		3,685
Basis	(51)		43		46
Foreign currency	(26)		23		24
Swaptions:
Pay-fixed	38		(146)		(380)
Receive-fixed	(217)		595		117
Futures	1		(76)		273
Net contractual interest expense on interest-rate swaps	16		(261)		(833)
Total risk management derivatives fair value gains (losses), net	185		(360)		(1,032)
Mortgage commitment derivatives fair value gains (losses), net	551		(2,654)		(1,043)
Credit enhancement derivatives fair value gains (losses), net	(178)		182		(35)
Total derivatives fair value gains (losses), net	$	558	$	(2,832)	$	(2,110)

Effect of Fair Value Hedge Accounting

The following table displays the effect of fair value hedge accounting on our consolidated statement of operations and comprehensive income, including gains and losses recognized on fair value hedging relationships.



	For the Year Ended December 31,
		2021
				Interest Income: Mortgage Loans		Interest Expense: Long-Term Debt
			(Dollars in millions)
Total amounts presented in our consolidated statement of operations and comprehensive income				$	98,930	$	(70,084)




Gains (losses) from fair value hedging relationships:
Mortgage loans HFI and related interest-rate contracts:
Hedged items				$	140	$	—
Discontinued hedge-related basis adjustment amortization				(6)		—


Derivatives designated as hedging instruments				(145)		—
Interest accruals on derivative hedging instruments				(12)		—
Debt of Fannie Mae and related interest-rate contracts:
Hedged items				—		1,370
Discontinued hedge-related basis adjustment amortization				—		(89)
Derivatives designated as hedging instruments				—		(1,308)
Interest accruals on derivative hedging instruments				—		223
Gains (losses) recognized in net interest income on fair value hedging relationships				$	(23)	$	196

Hedged Items in Fair Value Hedging Relationships

The following table displays the carrying amounts of the hedged items that have been in qualifying fair value hedges recorded in our consolidated balance sheet, including the hedged item's cumulative basis adjustments and the closed portfolio balances under the last-of-layer method. The hedged item carrying amounts and total basis adjustments include both open and discontinued hedges. The amortized cost and designated UPB consists only of open hedges as of December 31, 2021.


	As of December 31, 2021
	Carrying Amount Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Basis Adjustments Included in the Carrying Amount				Closed Portfolio of Mortgage Loans Under Last-of-Layer Method
			Total Basis Adjustments(1)(2)		Remaining Adjustments - Discontinued Hedge		Total Amortized Cost		Designated UPB
	(Dollars in millions)
Mortgage loans HFI	$	174,080	$	134	$	134	$	56,786	$	4,389

Debt of Fannie Mae	(72,174)		1,281		1,281		N/A		N/A

(1) No basis adjustment associated with open hedges, as all hedges are designated at the close of business, with a one-day term.

(2) Based on the unamortized balance of the hedge-related cost basis.

Derivative Counterparty Credit Exposure

Our derivative counterparty credit exposure relates principally to interest-rate derivative contracts. We are exposed to the risk that a counterparty in a derivative transaction will default on payments due to us, which may require us to seek a replacement derivative from a different counterparty. This replacement may be at a higher cost, or we may be unable to find a suitable replacement. We manage our derivative counterparty credit exposure relating to our risk management derivative transactions mainly through enforceable master netting arrangements, which allow us to net derivative assets and liabilities with the same counterparty or clearing organization and clearing member. For our OTC derivative transactions, we require counterparties to post collateral, which may include cash, U.S. Treasury securities, agency debt and agency mortgage-related securities.

See “Note 14, Netting Arrangements” for information on our rights to offset assets and liabilities as of December 31, 2021 and 2020.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Provision for Federal Income Taxes

We are subject to federal income tax, but we are exempt from state and local income taxes. The following table displays the components of our provision for federal income taxes.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Current income tax benefit (provision)	$	(5,521)	$	(3,803)	$	(2,089)
Deferred income tax benefit (provision)(1)	(252)		729		(1,328)
Provision for federal income taxes	$	(5,773)	$	(3,074)	$	(3,417)

(1)Amount excludes the current income tax effect of items recognized directly in “Total stockholders' equity.”

The following table displays the difference between the statutory corporate tax rate and our effective tax rate.


	For the Year Ended December 31,
	2021			2020			2019
Statutory corporate tax rate		21.0	%		21.0	%		21.0	%
Equity investments in affordable housing projects		(0.1)			(0.1)			(0.2)
Change in unrecognized tax benefits		—			—			(1.2)
Other		(0.2)			(0.2)			(0.2)
Effective tax rate		20.7	%		20.7	%		19.4	%

Our effective tax rate is the provision for federal income taxes expressed as a percentage of income or loss before federal income taxes. Our effective tax rates for the years 2021, 2020, and 2019 were impacted by the benefits of our investments in housing projects eligible for low-income housing tax credits. Our effective tax rate for 2019 was also impacted by the favorable resolution of our uncertain tax position, which reduced our provision for federal income taxes by $205 million.

Deferred Tax Assets and Liabilities

We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income.

As of December 31, 2021, we continued to conclude that the positive evidence in favor of the recoverability of our deferred tax assets outweighed the negative evidence and that it is more likely than not that our deferred tax assets will be realized. Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, to the extent it exists, including:

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

•the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years;

•unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years; and

•the funding available to us under the senior preferred stock purchase agreement.

The following table displays our deferred tax assets and deferred tax liabilities.


	As of December 31,
	2021			2020
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	7,547		$	8,241
Allowance for loan losses and basis in acquired property, net		1,060			1,798

Derivative instruments		778			602
Partnership and other equity investments		88			129
Interest-only securities		3,977			2,561

Total deferred tax assets		13,450			13,331
Deferred tax liabilities:
Unrealized gains on AFS securities, net		2			20

Other, net		733			364
Total deferred tax liabilities		735			384
Deferred tax assets, net		$	12,715		$	12,947

Unrecognized Tax Benefits

We have no unrecognized tax benefits for the years ended December 31, 2021 and 2020. We had unrecognized tax benefits of $416 million as of January 1, 2019 that were reduced by decreases in prior year tax positions of $416 million in 2019. We had no unrecognized tax benefits as of December 31, 2019.

Our tax years 2016 and 2018 through 2020 remain open to examination by the IRS.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

We have two reportable business segments, which are based on the type of business activities each perform: Single-Family and Multifamily. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our consolidated results of operations.

The section below provides a discussion of our business segments.

Single-Family Business Segment

•Works with lenders to acquire and securitize single-family mortgage loans delivered to us by lenders into Fannie Mae MBS.

•Issues structured Fannie Mae MBS backed by single-family mortgage assets and provides other services to single-family lenders.

•Prices and manages the credit risk on loans in our single-family guaranty book of business. Also enters into transactions that transfer a portion of the credit risk on some of the loans in our single-family guaranty book of business to third parties.

•Works to reduce costs of defaulted single-family loans through home retention solutions and foreclosure alternatives, management of foreclosures and our REO inventory, selling nonperforming loans and pursuing contractual remedies from lenders, servicers and providers of credit enhancements.

Multifamily Business Segment

•Works with lenders to acquire and securitize multifamily mortgage loans delivered to us by lenders into Fannie Mae MBS.

•Issues structured multifamily Fannie Mae MBS through our Fannie Mae Guaranteed Multifamily Structures (“Fannie Mae GeMSTM”) program and provides other services to our multifamily lenders.

•Prices and manages the credit risk on loans in our multifamily guaranty book of business. Lenders retain a portion of the credit risk in most multifamily transactions.

•Enters into transactions that transfer an additional portion of Fannie Mae’s credit risk on some of the loans in our multifamily guaranty book of business to third parties.

•Works to maintain credit quality of the book, prevent foreclosure, reduce costs of defaulted multifamily loans, manage our REO inventory, and pursue contractual remedies from lenders, servicers and providers of credit enhancements.

Segment Allocations and Results

The majority of our assets, revenues and expenses are directly associated with each respective business segment and are included in determining its asset balance and operating results. Those assets, revenues and expenses that are not directly attributable to a particular business segment are allocated based on the size of each segment’s guaranty book of business. The substantial majority of the gains and losses associated with our risk management derivatives, including the impact of hedge accounting, are allocated to our Single-Family business segment.

The following table displays total assets by segment.


	As of December 31,
	2021		2020
	(Dollars in millions)
Single-Family	$	3,782,447	$	3,569,130
Multifamily	446,719		416,619
Total assets	$	4,229,166	$	3,985,749

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

The following tables display our segment results.


	For the Year Ended December 31, 2021
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	25,429	$	4,158	$	29,587
Fee and other income(2)	269		92		361
Net revenues	25,698		4,250		29,948
Investment gains (losses), net(3)	1,392		(40)		1,352
Fair value gains (losses), net(4)(9)	167		(12)		155
Administrative expenses	(2,557)		(508)		(3,065)
Credit-related income:(5)
Benefit for credit losses	4,600		530		5,130
Foreclosed property expense	(14)		(19)		(33)
Total credit-related income	4,586		511		5,097
TCCA fees(6)	(3,071)		—		(3,071)
Credit enhancement expense(7)	(812)		(239)		(1,051)
Change in expected credit enhancement recoveries(8)	(86)		(108)		(194)
Other expenses, net	(1,194)		(28)		(1,222)
Income before federal income taxes	24,123		3,826		27,949
Provision for federal income taxes	(4,996)		(777)		(5,773)
Net income	$	19,127	$	3,049	$	22,176


	For the Year Ended December 31, 2020
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	21,502	$	3,364	$	24,866
Fee and other income(2)	368		94		462
Net revenues	21,870		3,458		25,328
Investment gains, net(3)	728		179		907
Fair value gains (losses), net(4)(9)	(2,539)		38		(2,501)
Administrative expenses	(2,559)		(509)		(3,068)
Credit-related expense:(5)
Provision for credit losses	(75)		(603)		(678)
Foreclosed property expense	(157)		(20)		(177)
Total credit-related expense	(232)		(623)		(855)
TCCA fees(6)	(2,673)		—		(2,673)
Credit enhancement expense(7)	(1,141)		(220)		(1,361)
Change in expected credit enhancement recoveries(8)	89		144		233
Other expenses, net	(1,055)		(76)		(1,131)
Income before federal income taxes	12,488		2,391		14,879
Provision for federal income taxes	(2,607)		(467)		(3,074)
Net income	$	9,881	$	1,924	$	11,805


	For the Year Ended December 31, 2019
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	18,013	$	3,280	$	21,293
Fee and other income(2)	453		113		566
Net revenues	18,466		3,393		21,859
Investment gains, net(3)	1,589		181		1,770
Fair value gains (losses), net(4)(9)	(2,216)		2		(2,214)
Administrative expenses	(2,565)		(458)		(3,023)
Credit-related income (expense):(5)
Benefit (provision) for credit losses	4,038		(27)		4,011
Foreclosed property income (expense)	(523)		8		(515)
Total credit-related income (expense)	3,515		(19)		3,496
TCCA fees(6)	(2,432)		—		(2,432)
Credit enhancement expense(7)	(927)		(207)		(1,134)
Change in expected credit enhancement recoveries(8)	—		—		—
Other expenses, net	(734)		(11)		(745)
Income before federal income taxes	14,696		2,881		17,577
Provision for federal income taxes	(2,859)		(558)		(3,417)
Net income	$	11,837	$	2,323	$	14,160

(1)Net interest income primarily consists of guaranty fees received as compensation for assuming and managing the credit risk on loans underlying Fannie Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the respective business segment’s mortgage assets in our retained mortgage portfolio and the interest expense associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis point increase in guaranty fees pursuant to the TCCA, the incremental revenue from which is remitted to Treasury and not retained by us. Also includes yield maintenance revenue we recognized on the prepayment of multifamily loans.

(2)Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services. Multifamily fee and other income consists of fees associated with Multifamily business activities, including credit enhancements for tax-exempt multifamily housing revenue bonds.

(3)Single-family investment gains and losses primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains and losses primarily consist of gains and losses on resecuritization activity.

(4)Single-family fair value gains and losses primarily consist of fair value gains and losses on risk management and mortgage commitment derivatives, trading securities, fair value option debt, and other financial instruments associated with our single-family guaranty book of business. Multifamily fair value gains and losses primarily consist of fair value gains and losses on MBS commitment derivatives, trading securities and other financial instruments associated with our multifamily guaranty book of business.

(5)Credit-related income or expense is based on the guaranty book of business of the respective business segment and consists of the applicable segment’s benefit or provision for credit losses and foreclosed property income or expense on loans underlying the segment’s guaranty book of business.

(6)Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA.

(7)Single-family credit enhancement expense consists of costs associated with our freestanding credit enhancements, which include primarily costs associated with our CIRT, CAS and EPMI programs. Multifamily credit enhancement expense primarily consists of costs associated with our MCIRT and MCAS programs as well as amortization expense for certain lender risk-sharing programs. Excludes CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments.

(8)Consists of change in benefits recognized from our freestanding credit enhancements, primarily from our CAS and CIRT programs as well as certain lender risk-sharing arrangements, including our multifamily DUS® program.

(9)In January 2021, we began applying fair value hedge accounting. For qualifying hedging relationships, fair value changes attributable to movements in the designated benchmark interest rates for hedged mortgage loans and funding debt and the fair value change of the designated portion of the paired interest-rate swaps are recognized in “Net interest income.” In prior years, all fair value changes for interest-rate swaps were recognized in “Fair value gains (losses), net.” See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional information on our fair value hedge accounting policy and related disclosures.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

Common Stock

Shares of common stock outstanding, net of shares held as treasury stock, totaled 1.2 billion as of December 31, 2021 and 2020.

During conservatorship, the rights and powers of shareholders are suspended. Accordingly, our common shareholders have no ability to elect directors or to vote on other matters during the conservatorship unless FHFA elects to delegate this authority to them. The senior preferred stock purchase agreement with Treasury prohibits the payment of dividends on common stock without the prior written consent of Treasury. The conservator also has eliminated common stock dividends. In addition, we issued a warrant to Treasury that provides Treasury with the right to purchase for a nominal price shares of our common stock equal to 79.9% of the total number of shares of common stock outstanding on a fully diluted basis on the date of exercise, which would substantially dilute the ownership in Fannie Mae of our common stockholders at the time of exercise. Refer to the “Senior Preferred Stock and Common Stock Warrant” section of this note for more information.

Preferred Stock

The following table displays our senior preferred stock and preferred stock outstanding.


		Issued and Outstanding as of December 31,									Annual Dividend Rate as of December 31, 2021
		2021			2020			Stated Value per Share
Title	Issue Date	Shares	Amount		Shares	Amount								Redeemable on or After
(Dollars and shares in millions, except per share amounts)
Senior Preferred Stock
Series 2008-2	September 8, 2008	1	$	120,836	1	$	120,836	$	120,836	(1)	N/A		(2)	N/A	(3)

Preferred Stock
Series D	September 30, 1998	3	$	150	3	$	150	$	50		5.250	%		September 30, 1999
Series E	April 15, 1999	3	150		3	150		50			5.100			April 15, 2004
Series F	March 20, 2000	14	690		14	690		50			0.150		(4)	March 31, 2002	(5)
Series G	August 8, 2000	6	288		6	288		50			—		(6)	September 30, 2002	(5)
Series H	April 6, 2001	8	400		8	400		50			5.810			April 6, 2006
Series I	October 28, 2002	6	300		6	300		50			5.375			October 28, 2007
Series L	April 29, 2003	7	345		7	345		50			5.125			April 29, 2008
Series M	June 10, 2003	9	460		9	460		50			4.750			June 10, 2008
Series N	September 25, 2003	5	225		5	225		50			5.500			September 25, 2008
Series O	December 30, 2004	50	2,500		50	2,500		50			7.000		(7)	December 31, 2007
Convertible Series 2004-I(8)	December 30, 2004	—	2,492		—	2,492		100,000			5.375			January 5, 2008
Series P	September 28, 2007	40	1,000		40	1,000		25			4.500		(9)	September 30, 2012
Series Q	October 4, 2007	15	375		15	375		25			6.750			September 30, 2010
Series R(10)	November 21, 2007	21	530		21	530		25			7.625			November 21, 2012
Series S	December 11, 2007	280	7,000		280	7,000		25			7.750		(11)	December 31, 2010	(12)
Series T(13)	May 19, 2008	89	2,225		89	2,225		25			8.250			May 20, 2013
Total		556	$	19,130	556	$	19,130

(1)Initial stated value per share was $1,000. Based on our draws of funds under the senior preferred stock purchase agreement with Treasury, the stated value per share on December 31, 2021 was $120,836.

(2)Dividends on the senior preferred stock are currently calculated based on our net worth as of the end of the immediately preceding fiscal quarter less an applicable capital reserve amount. The capital reserve amount was $25 billion, effective for dividend periods beginning July 1, 2019 and ending September 30, 2020. The capital reserve amount, starting with the quarterly dividend period ending on December 31,

2020, increased to the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework described in “Note 12, Regulatory Capital Requirements.”

(3)Any liquidation preference of our senior preferred stock in excess of $1 billion may be repaid through an issuance of common or preferred stock, which would require the consent of the conservator and Treasury. The initial $1 billion liquidation preference may be repaid only in conjunction with termination of Treasury’s funding commitment under the senior preferred stock purchase agreement.

(4)Rate effective March 31, 2020. Variable dividend rate resets every two years at a per annum rate equal to the two-year Constant Maturity U.S. Treasury Rate (“CMT”) minus 0.16% with a cap of 11% per year.

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

(6)Rate effective September 30, 2020. Variable dividend rate resets every two years at a per annum rate equal to the two-year CMT rate minus 0.18% with a cap of 11% per year.

(7)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7% or 10-year CMT rate plus 2.375%.

(8)Issued and outstanding shares were 24,922 as of December 31, 2021 and 2020.

(9)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.5% or 3-Month LIBOR plus 0.75%.

(10)On November 21, 2007, we issued 20 million shares of preferred stock in the amount of $500 million. Subsequent to the initial issuance, we issued an additional 1.2 million shares in the amount of $30 million on December 14, 2007 under the same terms as the initial issuance.

(11)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.75% or 3-Month LIBOR plus 4.23%.

(12)Represents initial call date. Redeemable every five years thereafter.

(13)On May 19, 2008, we issued 80 million shares of preferred stock in the amount of $2.0 billion. Subsequent to the initial issuance, we issued an additional 8 million shares in the amount of $200 million on May 22, 2008 and 1 million shares in the amount of $25 million on June 4, 2008 under the same terms as the initial issuance.

As described under “Senior Preferred Stock and Common Stock Warrant” below, we issued senior preferred stock that ranks senior to all other series of preferred stock as to both dividends and distributions upon dissolution, liquidation or winding down of the company. The senior preferred stock purchase agreement with Treasury also prohibits the payment of dividends on preferred stock (other than the senior preferred stock) without the prior written consent of Treasury. The conservator also has eliminated preferred stock dividends, other than dividends on the senior preferred stock.

Each series of our preferred stock has no par value, is non-participating, is non-voting and has a liquidation preference equal to the stated value per share. None of our preferred stock is convertible into or exchangeable for any of our other stock or obligations, with the exception of the Convertible Series 2004-1.

Shares of the Convertible Series 2004-1 Preferred Stock are convertible at any time, at the option of the holders, into shares of Fannie Mae common stock at a conversion price of $94.31 per share of common stock (equivalent to a conversion rate of 1,060.3329 shares of common stock for each share of Series 2004-1 Preferred Stock). The conversion price is adjustable, as necessary, to maintain the stated conversion rate into common stock. Events which may trigger an adjustment to the conversion price include certain changes in our common stock dividend rate, subdivisions of our outstanding common stock into a greater number of shares, combinations of our outstanding common stock into a smaller number of shares and issuances of any shares by reclassification of our common stock. No such events have occurred.

Holders of preferred stock (other than the senior preferred stock) are entitled to receive non-cumulative, quarterly dividends when, and if, declared by our Board of Directors, but have no right to require redemption of any shares of preferred stock. Payment of dividends on preferred stock (other than the senior preferred stock) is not mandatory but has priority over payment of dividends on common stock, which are also declared by the Board of Directors. If dividends on the preferred stock are not paid or set aside for payment for a given dividend period, dividends may not be paid on our common stock for that period. There were no dividends declared or paid on preferred stock for the years ended December 31, 2021, 2020, or 2019.

After a specified period, we have the option to redeem preferred stock (other than the senior preferred stock) at its redemption price plus the dividend (whether or not declared) for the then-current period accrued to, but excluding, the date of redemption. The redemption price is equal to the stated value for all issues of preferred stock except Series O, which has a redemption price of $50 to $52.50 depending on the year of redemption and Convertible Series 2004-1, which has a redemption price of $105,000 per share.

Our preferred stock is traded in the over-the-counter market.

Senior Preferred Stock and Common Stock Warrant

On September 8, 2008, we issued to Treasury one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2, with an aggregate stated value and initial liquidation preference of $1.0 billion. On September 7, 2008, we issued a warrant to purchase common stock to Treasury. The warrant gives Treasury the right to purchase

shares of our common stock equal to 79.9% of the total number of shares of common stock outstanding on a fully diluted basis on the date of exercise. The senior preferred stock and the warrant were issued to Treasury as an initial commitment fee in consideration of the commitment from Treasury to provide funds to us under the terms and conditions set forth in the senior preferred stock purchase agreement. We did not receive any cash proceeds as a result of issuing these shares or the warrant. We have assigned a value of $4.5 billion to Treasury’s commitment, which was recorded as a reduction to additional paid-in-capital at the time of the issuance and was partially offset by the aggregate fair value of the warrant. There was no impact to the total balance of stockholders’ equity as a result of the issuance.

Variable Liquidation Preference Senior Preferred Stock, Series 2008-2

Dividend Provisions

As a result of the January 2021 letter agreement, the dividend rate and liquidation preference of the senior preferred stock depend on whether we have reached the “capital reserve end date” which is defined in the January 2021 letter agreement as the last day of the second consecutive fiscal quarter during which we have maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework discussed in “Note 12, Regulatory Capital Requirements.”

Treasury, as the holder of the senior preferred stock, is entitled to receive, when, as and if declared, out of legally available funds, cumulative quarterly cash dividends. We had no dividends declared and paid on the senior preferred stock for the years ended December 31, 2021 or 2020. Dividends declared and paid on the senior preferred stock were $5.6 billion for the year ended December 31, 2019. The dividends we have paid to Treasury on the senior preferred stock during conservatorship have been declared by, and paid at the direction of, our conservator, acting as successor to the rights, titles, powers and privileges of the Board of Directors. Dividend payments we make to Treasury do not restore or increase the amount of funding available to us under the senior preferred stock purchase agreement.

Dividend amount prior to capital reserve end date.

The terms of the senior preferred stock provide for dividends each quarter in the amount, if any, by which our net worth as of the end of the immediately preceding fiscal quarter exceeds an applicable capital reserve amount. The January 2021 letter agreement increased the applicable capital reserve amount, starting with the quarterly dividend period ending on December 31, 2020, from $25 billion to the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework. If our net worth does not exceed this amount as of the end of the immediately preceding fiscal quarter, then dividends will neither accumulate nor be payable for such period. Our net worth is defined as the amount, if any, by which our total assets (excluding Treasury’s funding commitment and any unfunded amounts related to the commitment) exceed our total liabilities (excluding any obligation with respect to capital stock), in each case as reflected on our balance sheet prepared in accordance with GAAP.

Dividend amount following capital reserve end date.

Beginning on the first dividend period following the capital reserve end date, the applicable quarterly dividend amount on the senior preferred stock will be the lesser of:

(1) a 10% annual rate on the then-current liquidation preference of the senior preferred stock; and

(2) an amount equal to the incremental increase in our net worth during the immediately prior fiscal quarter.

However, the applicable quarterly dividend amount will immediately increase to a 12% annual rate on the then-current liquidation preference of the senior preferred stock if we fail to timely pay dividends in cash to Treasury. This increased dividend amount will continue until the dividend period following the date we have paid, in cash, full cumulative dividends to Treasury (including any unpaid dividends), at which point the applicable quarterly dividend amount will revert to the prior calculation method.

Liquidation Preference

Shares of the senior preferred stock have no par value and have a stated value and initial liquidation preference equal to $1,000 per share, for an aggregate initial liquidation preference of $1 billion.

Under the terms that currently govern the senior preferred stock, the aggregate liquidation preference will be increased by the following:

•any amounts Treasury pays to us pursuant to its funding commitment under the senior preferred stock purchase agreement (a total of $119.8 billion as of the date of this filing);

•any quarterly commitment fees that are payable but not paid in cash (no such fees have become payable, nor will they under the current terms of the agreement and the senior preferred stock);

•any dividends that are payable but not paid in cash to Treasury, regardless of whether or not they are declared; and

•at the end of each fiscal quarter, by an amount equal to the increase in our net worth, if any, during the immediately prior fiscal quarter.

The aggregate liquidation preference of the senior preferred stock was $163.7 billion as of December 31, 2021 and will further increase to $168.9 billion as of March 31, 2022, due to the increase in our net worth during the fourth quarter of 2021.

The senior preferred stock ranks ahead of our common stock and all other outstanding series of our preferred stock, as well as any capital stock we issue in the future, as to both dividends and rights upon liquidation. As a result, if we are liquidated, the holder of the senior preferred stock is entitled to its then current liquidation preference before any distribution is made to the holders of our common stock or other preferred stock.

Limitations on Redemption and Paydown of Liquidation Preference; Requirement to Pay Net Proceeds of Capital Stock Issuances to Reduce Liquidation Preference

We are not permitted to redeem the senior preferred stock prior to the termination of Treasury’s funding commitment under the senior preferred stock purchase agreement. Moreover, we are not permitted to pay down the liquidation preference of the outstanding shares of senior preferred stock except to the extent of (1) accumulated and unpaid dividends previously added to the liquidation preference and not previously paid down; and (2) quarterly commitment fees previously added to the liquidation preference and not previously paid down. In addition to these exceptions, if we issue any shares of capital stock for cash while the senior preferred stock is outstanding, the net proceeds of the issuance, with the exception of up to $70 billion in aggregate gross cash proceeds from the issuance of common stock, must be used to pay down the liquidation preference of the senior preferred stock; however, the liquidation preference of each share of senior preferred stock may not be paid down below $1,000 per share prior to the termination of Treasury’s funding commitment. Following the termination of Treasury’s funding commitment, we may pay down the liquidation preference of all outstanding shares of senior preferred stock at any time, in whole or in part.

Limitations on Dividends, Distributions, etc.

The senior preferred stock provides that we may not declare or pay dividends on, make distributions with respect to, or redeem, purchase or acquire, or make a liquidation payment with respect to, any common stock or other securities ranking junior to the senior preferred stock unless (1) full cumulative dividends on the outstanding senior preferred stock (including any unpaid dividends added to the liquidation preference) have been declared and paid in cash; and (2) all amounts required to be paid with the net proceeds of any issuance of capital stock for cash (as described in the preceding paragraph) have been paid in cash.

Common Stock Warrant

The warrant gives Treasury the right to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis on the date the warrant is exercised. The warrant may be exercised in whole or in part at any time on or before September 7, 2028, by delivery to Fannie Mae of:

•a notice of exercise;

•payment of the exercise price of $0.00001 per share; and

•the warrant.

If the market price of one share of common stock is greater than the exercise price, in lieu of exercising the warrant by payment of the exercise price, Treasury may elect to receive shares equal to the value of the warrant (or portion thereof being canceled) pursuant to the formula specified in the warrant. Upon exercise of the warrant, Treasury may assign the right to receive the shares of common stock issuable upon exercise to any other person. If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheets. As of February 15, 2022, Treasury has not exercised the warrant.

Senior Preferred Stock Purchase Agreement with Treasury

Funding Commitment

Under the senior preferred stock purchase agreement, Treasury made a commitment to provide funding, under certain conditions, to eliminate deficits in our net worth. As of December 31, 2021, Treasury has provided us with a total of $119.8 billion under its senior preferred stock purchase agreement funding commitment, and the amount of funding remaining available to us under the agreement was $113.9 billion.

If we were to have a net worth deficit in a future period, we would be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement to avoid being placed into receivership. If we were to draw additional funds from Treasury under the agreement with respect to a future period, the amount of remaining funding under the agreement would be reduced by the amount of our draw.

The senior preferred stock purchase agreement provides that the deficiency amount will be calculated differently if we become subject to receivership or other liquidation process. The deficiency amount may be increased above the otherwise applicable amount upon our mutual written agreement with Treasury. In addition, if the Director of FHFA determines that the Director will be mandated by law to appoint a receiver for us unless our capital is increased by receiving funds under the commitment in an amount up to the deficiency amount (subject to the maximum amount that may be funded under the agreement), then FHFA, in its capacity as our conservator, may request that Treasury provide funds to us in such amount. The senior preferred stock purchase agreement also provides that, if we have a deficiency amount as of the date of completion of the liquidation of our assets, we may request funds from Treasury in an amount up to the deficiency amount (subject to the maximum amount that may be funded under the agreement). Any amounts that we draw under the senior preferred stock purchase agreement will be added to the liquidation preference of the senior preferred stock. No additional shares of senior preferred stock are required to be issued under the senior preferred stock purchase agreement.

Commitment Fee

The senior preferred stock purchase agreement provides for the payment of an unspecified quarterly commitment fee to Treasury to compensate Treasury for its ongoing support under the senior preferred stock purchase agreement. As amended by the January 2021 letter agreement, the agreement provides that (1) through and continuing until the capital reserve end date, the periodic commitment fee will not be set, accrue, or be payable, and (2) not later than the capital reserve end date, we and Treasury, in consultation with the Chair of the Federal Reserve, will agree to set the periodic commitment fee.

Covenants

The senior preferred stock purchase agreement contains covenants that prohibit us from taking a number of actions without the prior written consent of Treasury, including:

•declaring or paying dividends or making other distributions on or redeeming, purchasing, retiring or otherwise acquiring our equity securities (other than the senior preferred stock or warrant);

•selling or issuing equity securities, except for stock issuances made (1) to Treasury, (2) pursuant to obligations that existed at the time we entered conservatorship, and (3) as amended by the January 2021 letter agreement, for common stock ranking pari passu or junior to the common stock issued to Treasury in connection with the exercise of its warrant, provided that (i) Treasury has already exercised its warrant in full, and (ii) all currently pending significant litigation relating to the conservatorship and the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, which may require Treasury’s assent. Net proceeds of the issuance of any shares of capital stock for cash while the senior preferred stock is outstanding, except for up to $70 billion in aggregate gross cash proceeds from the issuance of common stock, must be used to pay down the liquidation preference of the senior preferred stock;

•terminating or seeking to terminate our conservatorship, other than through a receivership, except that, as revised by the January 2021 letter agreement, FHFA can terminate our conservatorship without the prior consent of Treasury if several conditions are met, including (1) all currently pending significant litigation relating to the conservatorship and the August 2012 amendment to the senior preferred stock purchase agreement has been resolved, and (2) for two or more consecutive quarters, our common equity tier 1 capital (as defined in the enterprise regulatory capital framework), together with any stockholder equity that would result from a firm commitment public underwritten offering of common stock which is fully consummated concurrent with the termination of conservatorship, equals or exceeds at least 3% of our adjusted total assets (as defined in the enterprise regulatory capital framework);

•selling, transferring, leasing or otherwise disposing of any assets, except for dispositions for fair market value in limited circumstances including if (a) the transaction is in the ordinary course of business and consistent with past practice or (b) the assets have a fair market value individually or in the aggregate of less than $250 million;

•incurring indebtedness that would result in our aggregate indebtedness exceeding $300 billion;

•issuing subordinated debt;

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

•engaging in transactions with affiliates other than on arm’s-length terms or in the ordinary course of business.

Covenants in the senior preferred stock purchase agreement also subject us to limits on the amount of mortgage assets that we may own and the total amount of our indebtedness.

•Mortgage Asset Limit. The amount of mortgage assets we are permitted to own is $250 billion and, as a result of the January 2021 letter agreement, will decrease to $225 billion on December 31, 2022. We are currently managing our business to a $225 billion cap pursuant to instructions from FHFA. Our mortgage assets as of December 31, 2021 were $111.2 billion, which includes 10% of the notional value of interest-only securities we hold. This adjustment is based on instruction from FHFA for the purpose of measuring mortgage assets against the cap.

•Debt Limit. Our debt limit under the senior preferred stock purchase agreement is set at 120% of the amount of mortgage assets we were allowed to own under the agreement on December 31 of the immediately preceding calendar year. This debt limit is currently $300 billion, and it will decrease to $270 billion as of December 31, 2022. As calculated for this purpose, our indebtedness as of December 31, 2021 was $202.5 billion.

Another covenant prohibits us from entering into any new compensation arrangements or increasing amounts or benefits payable under existing compensation arrangements with any of our executive officers (as defined by SEC rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury.

In addition to the changes described above to covenants already in the senior preferred stock purchase agreement, the January 2021 letter agreement added additional covenants:

•We are required to comply with the terms of the enterprise regulatory capital framework as published by FHFA in the Federal Register on December 17, 2020, disregarding any subsequent amendments or modifications to the framework.

•Additional restrictive covenants impact our single-family business activities, including the type of loans we may acquire. Additional single-family and multifamily business restrictions that were added to the agreement in January 2021 were subsequently temporarily suspended pursuant to a letter agreement dated September 14, 2021 between us, through FHFA in its capacity as conservator, and Treasury.

Annual Risk Management Plan Covenant. Each year we remain in conservatorship we are required to provide Treasury a risk management plan that sets out our strategy for reducing our risk profile, describes the actions we will take to reduce the financial and operational risk associated with each of our business segments, and includes an assessment of our performance against the planned actions described in the prior year’s plan. We submitted our most recent annual risk management plan to Treasury in December 2021.

Although the senior preferred stock purchase agreement does not specify penalties for failure to comply with the covenants in the agreement, FHFA, as our conservator and regulator, has the authority to direct compliance and to impose consequences for noncompliance.

Termination Provisions

The senior preferred stock purchase agreement provides that Treasury’s funding commitment will terminate under any of the following circumstances:

•the completion of our liquidation and fulfillment of Treasury’s obligations under its funding commitment at that time;

•the payment in full of, or reasonable provision for, all of our liabilities (whether or not contingent, including mortgage guaranty obligations); or

•the funding by Treasury of the maximum amount under the agreement.

In addition, Treasury may terminate its funding commitment and declare the senior preferred stock purchase agreement null and void if a court vacates, modifies, amends, conditions, enjoins, stays or otherwise affects the appointment of the conservator or otherwise curtails the conservator’s powers. Treasury may not terminate its funding commitment solely by reason of our being in conservatorship, receivership or other insolvency proceeding, or due to our financial condition or any adverse change in our financial condition.

Waivers and Amendments

The senior preferred stock purchase agreement provides that most provisions of the agreement may be waived or amended by mutual written agreement of the parties. No waiver or amendment of the agreement, however, may decrease Treasury’s aggregate funding commitment or add conditions to Treasury’s funding commitment if the waiver or amendment would adversely affect in any material respect the holders of our debt securities or guaranteed Fannie Mae MBS.

Third-party Enforcement Rights

If we default on payments with respect to our debt securities or guaranteed Fannie Mae MBS and Treasury fails to perform its obligations under its funding commitment, and if we and/or the conservator are not diligently pursuing remedies in respect of that failure, the holders of these debt securities or Fannie Mae MBS may file a claim for relief in the United States Court of Federal Claims. The relief, if granted, would require Treasury to fund to us the lesser of (1) the amount necessary to cure the payment defaults on our debt and Fannie Mae MBS and (2) the lesser of (a) the deficiency amount and (b) the maximum amount available under the agreement less the aggregate amount of funding previously provided under the commitment. Any payment that Treasury makes under those circumstances would be treated for all purposes as a draw under the senior preferred stock purchase agreement that would increase the liquidation preference of the senior preferred stock.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements

Enterprise Regulatory Capital Framework

In November 2020, FHFA adopted a final rule establishing a new regulatory capital framework for the GSEs, which we refer to as the “enterprise regulatory capital framework.” The framework establishes new risk-based and leverage-based capital requirements for the GSEs. These requirements go beyond the current statutory capital requirements of Fannie Mae. The final rule went into effect in February 2021, but the dates on which we must comply with the requirements of the capital framework are staggered and largely dependent on whether we remain in conservatorship.

The new regulatory capital framework provides a granular assessment of credit risk specific to different mortgage loan categories, as well as components for market risk and operational risk. The regulatory capital framework set forth in the final rule includes the following:

•Supplemental capital requirements relating to the amount and form of the capital we hold, based largely on definitions of capital used in U.S. banking regulators’ regulatory capital framework. The final rule specifies complementary leverage-based and risk-based requirements, which together determine the requirements for each tier of capital;

•A requirement that we hold prescribed capital buffers that can be drawn down in periods of financial stress and then rebuilt over time as economic conditions improve. If we fall below the prescribed buffer amounts, we must restrict capital distributions such as stock repurchases and dividends, as well as discretionary bonus payments to executives, until the buffer amounts are restored. The prescribed capital buffers represent the amount of capital we are required to hold above the minimum risk-based and leverage-based capital requirements; and

•specific minimum percentages, or “floors,” on the risk-weights applicable to single-family and multifamily exposures as well as retained portions of credit risk transfer transactions.

Under the final capital rule, regardless of our status in conservatorship, reporting requirements under the enterprise regulatory capital framework take effect on January 1, 2022, including public reporting of our calculations of regulatory capital levels, buffers, adjusted total assets, and total risk-weighted assets, as defined in the final rule. These reporting requirements are not expected to replace existing statutory capital reporting that is required by FHFA, as discussed below.

Statutory Capital Classifications

Though FHFA suspended our statutory capital classifications during conservatorship, we continue to submit capital reports to FHFA for monitoring purposes. These capital classification measures are determined based on guidance from FHFA, in which FHFA (1) directed us, for loans backing Fannie Mae MBS held by third parties, to continue reporting our minimum capital requirements based on 0.45% of the unpaid principal balance and critical capital based on 0.25% of the unpaid principal balance, regardless of whether these loans have been consolidated pursuant to accounting rules, and (2) issued a regulatory interpretation stating that our minimum capital requirements are not automatically affected by the consolidation accounting guidance. Additionally, these capital classification measures exclude the funds provided to us by Treasury pursuant to the senior preferred stock purchase agreement, as the senior preferred stock does not qualify as core capital due to its cumulative dividend provisions.

The following table displays our current capital classification measures.


	As of December 31,
	2021		2020
	(Dollars in millions)
Core capital(1)	$	(73,517)	$	(95,694)
Statutory minimum capital requirement(2)	26,810		28,603
Deficit of core capital relative to statutory minimum capital requirement	$	(100,327)	$	(124,297)

(1)The sum of (a) the stated value of our outstanding common stock (common stock less treasury stock); (b) the stated value of our outstanding non-cumulative perpetual preferred stock; (c) our paid-in capital; and (d) our retained earnings (accumulated deficit). Core capital does not include: (a) accumulated other comprehensive income or (b) senior preferred stock.

(2)Generally, the sum of (a) 2.50% of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties; (b) 0.45% of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties; and (c) up to 0.45% of other off-balance sheet obligations, which may be adjusted by the Director of FHFA under certain circumstances.

Our critical capital requirement is generally equal to the sum of: (1) 1.25% of on-balance sheet assets, except those underlying Fannie Mae MBS held by third parties; (2) 0.25% of the unpaid principal balance of outstanding Fannie Mae MBS held by third parties; and (3) 0.25% of other off-balance sheet obligations, which may be adjusted by the Director of FHFA under certain circumstances.

As of December 31, 2021 and 2020, we had a minimum capital deficiency of $100.3 billion and $124.3 billion, respectively. See “Note 1, Summary of Significant Accounting Policies” and “Note 11, Equity” for more information on capital and the terms of our senior preferred stock purchase agreement with Treasury and the senior preferred stock we issued to Treasury.

Restrictions on Capital Distributions and Dividends

Statutory Restrictions. Under the GSE Act, FHFA has authority to prohibit capital distributions, including payment of dividends, if we fail to meet our capital requirements. If FHFA classifies us as significantly undercapitalized, we must obtain the approval of the Director of FHFA for any dividend payment. Under the Charter Act and the GSE Act, we are not permitted to make a capital distribution if, after making the distribution, we would be undercapitalized. The Director of FHFA, however, may permit us to repurchase shares if the repurchase is made in connection with the issuance of additional shares or obligations in at least an equivalent amount and will reduce our financial obligations or otherwise improve our financial condition.

Restrictions Relating to Conservatorship. Our conservator announced on September 7, 2008 that we would not pay any dividends on the common stock or on any series of preferred stock, other than the senior preferred stock. In addition, FHFA’s regulations relating to conservatorship and receivership operations prohibit us from paying any dividends while in conservatorship unless authorized by the Director of FHFA. The Director of FHFA has directed us to make dividend payments on the senior preferred stock on a quarterly basis for every dividend period for which dividends were payable.

Restrictions Under Senior Preferred Stock Purchase Agreement and Senior Preferred Stock. The senior preferred stock purchase agreement prohibits us from declaring or paying any dividends on Fannie Mae equity securities (other than the senior preferred stock) without the prior written consent of Treasury. In addition, the provisions of the senior preferred stock provide for dividends each quarter prior to the capital reserve end date in the amount, if any, by which our net worth as of the end of the immediately preceding fiscal quarter exceeds an applicable capital reserve amount. Starting with the quarterly dividend period ending on December 31, 2020, the applicable capital reserve amount is the amount of adjusted total capital necessary for us to meet the capital requirements and buffers set forth in the enterprise regulatory capital framework discussed above. After the capital reserve end date, the amount of quarterly dividends to Treasury will be equal to the lesser of any quarterly increase in our net worth and a 10% annual rate on the then-current liquidation preference of the senior preferred stock. As a result of this change, our ability to retain earnings in excess of the capital requirements and buffers set forth in the enterprise regulatory capital framework will be limited. For more information on the terms of the senior preferred stock purchase agreement and senior preferred stock, see “Note 1, Summary of Significant Accounting Policies” and “Note 11, Equity.”

Additional Restrictions Relating to Preferred Stock. Payment of dividends on our common stock is also subject to the prior payment of dividends on our preferred stock and our senior preferred stock. Payment of dividends on all outstanding preferred stock, other than the senior preferred stock, is also subject to the prior payment of dividends on the senior preferred stock.

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

Concentrations of Credit Risk

Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2021

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, we have determined that concentrations of credit risk exist among:

•single-family and multifamily borrowers (including geographic concentrations and loans with certain higher-risk characteristics);

•mortgage insurers;

•mortgage sellers and servicers;

•multifamily lenders with risk sharing; and

•derivative counterparties and parties associated with our off-balance sheet transactions.

Concentrations for each of these groups are discussed below.

Single-Family Loan Borrowers

Regional economic conditions may affect a borrower’s ability to repay his or her mortgage loan and the property value underlying the loan. Geographic concentrations increase the exposure of our portfolio to changes in credit risk. Single-family borrowers are primarily affected by home prices and interest rates.

To manage credit risk and comply with legal requirements, we typically require primary mortgage insurance or other credit enhancements if the current LTV ratio (i.e., the ratio of the unpaid principal balance of a loan to the current value of the property that serves as collateral) of a single-family conventional mortgage loan is greater than 80% when the loan is delivered to us.

Multifamily Loan Borrowers

Numerous factors affect a multifamily borrower’s ability to repay the loan and the value of the property underlying the loan. Multifamily loans are generally non-recourse to the borrower. The most significant factors affecting credit risk are rental income, property valuations, and general economic conditions. The average unpaid principal balance for multifamily loans is significantly larger than for single-family borrowers and, therefore, individual defaults for multifamily borrowers can result in more significant losses. We continually monitor the performance and risk characteristics of our multifamily loans, underlying properties and borrowers on an ongoing basis.

As part of our multifamily risk management activities, we perform detailed loan reviews that evaluate property performance, borrower and geographic concentrations, lender qualifications, counterparty risk and contract compliance. We generally require mortgage servicers to obtain and submit periodic property operating information and condition reviews, allowing us to monitor the performance of individual loans. We use this information to evaluate the credit quality of our portfolio, identify potential problem loans and initiate appropriate loss mitigation activities.

Geographic Concentration

The following table displays the regional geographic concentration of single-family and multifamily loans in our guaranty book of business, measured by the unpaid principal balance of the loans.


	Geographic Concentration(1)
	Percentage of Single-Family Conventional Guaranty Book of Business						Percentage of Multifamily Guaranty Book of Business
	As of December 31,						As of December 31,
	2021			2020			2021			2020
Midwest		14	%		14	%		11	%		11	%
Northeast		16			17			15			15
Southeast		23			22			27			27
Southwest		18			19			22			22
West		29			28			25			25
Total		100	%		100	%		100	%		100	%

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

Risk Characteristics of our Guaranty Book of Business

One of the measures by which we gauge our credit risk is the delinquency status of the mortgage loans in our guaranty book of business.

For single-family and multifamily loans, we use this information, in conjunction with housing market and other economic data, to structure our pricing and our eligibility and underwriting criteria to reflect the current risk of loans with higher-risk characteristics, and in some cases we decide to significantly reduce our participation in riskier loan product categories. Management also uses this data together with other credit risk measures to identify key trends that guide the development of our loss mitigation strategies.

We report the delinquency status of our single-family and multifamily guaranty book of business below. We report loans receiving COVID-19-related payment forbearance as delinquent according to the contractual terms of the loans.

Single-Family Credit Risk Characteristics

For single-family loans, management monitors the serious delinquency rate, which is the percentage of single-family loans, based on the number of loans that are 90 days or more past due or in the foreclosure process, and loans that have higher risk characteristics, such as high mark-to-market LTV ratios.

The following tables display the delinquency status and serious delinquency rates for specified loan categories of our single-family conventional guaranty book of business.


	As of December 31,
	2021						2020
	30 Days Delinquent		60 Days Delinquent		Seriously Delinquent(1)		30 Days Delinquent		60 Days Delinquent		Seriously Delinquent(1)
Percentage of single-family conventional guaranty book of business based on UPB	0.73	%	0.16	%	1.20	%	0.88	%	0.33	%	3.10	%
Percentage of single-family conventional loans based on loan count	0.86		0.20		1.25		1.02		0.36		2.87


	As of December 31,
	2021				2020
	Percentage of Single-Family Conventional Guaranty Book of Business Based on UPB		Seriously Delinquent Rate(1)		Percentage of Single-Family Conventional Guaranty Book of Business Based on UPB		Seriously Delinquent Rate(1)
Estimated mark-to-market LTV ratio:
80.01% to 90%	5	%	0.88	%	9	%	4.17	%
90.01% to 100%	2		0.51		4		1.85
Greater than 100%	*		12.41		*		22.43
Geographical distribution:
California	19		1.01		19		2.62
Florida	6		1.59		6		4.17
Illinois	3		1.55		3		3.10
New Jersey	3		1.90		3		4.57
New York	5		2.24		5		4.79
All other states	64		1.16		64		2.59
Product distribution:
Alt-A	1		4.96		1		9.32
Vintages:
2004 and prior	1		3.48		2		5.88
2005-2008	2		5.87		2		9.98
2009-2021	97		1.01		96		2.39

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

(1)Based on loan count, consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2021 and 2020.

Multifamily Credit Risk Characteristics

For multifamily loans, management monitors the serious delinquency rate, which is the percentage of multifamily loans, based on unpaid principal balance, that are 60 days or more past due, and loans with other higher risk characteristics to determine our overall credit quality of our multifamily book of business. Higher risk characteristics include, but are not limited to, current DSCR below 1.0 and original LTV ratios greater than 80%. We stratify multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan.

The following tables display the delinquency status and serious delinquency rates for specified loan categories of our multifamily guaranty book of business.


	As of December 31,
	2021(1)				2020(1)
	30 Days Delinquent		Seriously Delinquent(2)		30 Days Delinquent		Seriously Delinquent(2)
Percentage of multifamily guaranty book of business	0.03	%	0.42	%	0.29	%	0.98	%


	As of December 31,
	2021				2020
	Percentage of Multifamily Guaranty Book of Business(1)		Serious Delinquency Rate(2)(3)		Percentage of Multifamily Guaranty Book of Business(1)		Serious Delinquency Rate(2)(3)
Original LTV ratio:
Greater than 80%	1	%	0.13	%	1	%	1.04	%
Less than or equal to 80%	99		0.42		99		0.98
Current DSCR below 1.0(4)	2		13.90		2		21.19

(1)Calculated based on the aggregate unpaid principal balance of multifamily loans for each category divided by the aggregate unpaid principal balance of loans in our multifamily guaranty book of business.

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

(3)Calculated based on the unpaid principal balance of multifamily loans that were seriously delinquent divided by the aggregate unpaid principal balance of multifamily loans for each category included in our multifamily guaranty book of business.

(4)Our estimates of current DSCRs are based on the latest available income information from annual statements for these properties.

Other Concentrations

Mortgage Insurers. Mortgage insurance “risk in force” refers to our maximum potential loss recovery under the applicable mortgage insurance policies in force and is generally based on the loan-level insurance coverage percentage and, if applicable, any aggregate pool loss limit, as specified in the policy.

The following table displays our total mortgage insurance risk in force by primary and pool insurance, as well as the total risk-in-force mortgage insurance coverage as a percentage of the single-family conventional guaranty book of business.


	As of December 31,
	2021				2020
	Risk in Force		Percentage of Single-Family Conventional Guaranty Book of Business		Risk in Force		Percentage of Single-Family Conventional Guaranty Book of Business
	(Dollars in millions)
Mortgage insurance risk in force:
Primary mortgage insurance	$	176,587			$	170,890
Pool mortgage insurance	261				291
Total mortgage insurance risk in force	$	176,848	5	%	$	171,181	5	%

Mortgage insurance only covers losses that are realized after the borrower defaults and title to the property is subsequently transferred, such as after a foreclosure, short-sale, or a deed-in-lieu of foreclosure. Also, mortgage insurance does not protect us from all losses on covered loans. For example, mortgage insurance does not cover property damage that is not covered by the hazard insurance we require, and such damage may result in a reduction to, or a denial of, mortgage insurance benefits. Specifically, a property damaged by a flood that was outside a Federal Emergency Management Agency (“FEMA”)-identified Special Flood Hazard Area, where we require coverage, or a property damaged by an earthquake are the most likely scenarios where property damage may result in a default not covered by hazard insurance.

The table below displays our mortgage insurer counterparties that provided approximately 10% or more of the risk in force mortgage insurance coverage on mortgage loans in our single-family conventional guaranty book of business.


	Percentage of Risk-in-Force Coverage by Mortgage Insurer
	As of December 31,
	2021		2020
Counterparty:(1)
Arch Capital Group Ltd.	19	%	21	%
Mortgage Guaranty Insurance Corp.	19		18
Radian Guaranty, Inc.	17		19
Genworth Mortgage Insurance Corp.	17		16
Essent Guaranty, Inc.	16		16
National Mortgage Insurance Corp.	11		9
Others	1		1
Total	100	%	100	%

(1)Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty.

Three of our mortgage insurer counterparties that are currently not approved to write new business—PMI Mortgage Insurance Co. (“PMI”), Triad Guaranty Insurance Corporation (“Triad”) and Republic Mortgage Insurance Company (“RMIC”)—are currently in run-off. A mortgage insurer that is in run-off continues to collect renewal premiums and process claims on its existing insurance business, but no longer writes new insurance, which increases the risk that the mortgage insurer will fail to pay claims fully. Entering run-off may limit sources of profits and liquidity for the mortgage insurer and could also cause the quality and speed of its claims processing to deteriorate. In addition, the insurer may only pay a portion of policyholder claims and defer the remaining portion. Of the three insurers, PMI and Triad are currently paying 77.5% and 75%, respectively, of their claims in cash and deferring the remainder. These three mortgage insurers provided a combined $1.5 billion, or 1%, of the risk in force mortgage insurance coverage of our single-family conventional guaranty book of business as of December 31, 2021.

We have counterparty credit risk relating to the potential insolvency of, or non-performance by, monoline mortgage insurers that insure single-family loans we purchase or guarantee. There is risk that these counterparties may fail to fulfill their obligations to pay our claims under insurance policies. On at least a quarterly basis, we assess our mortgage insurer counterparties’ respective abilities to fulfill their obligations to us. Our assessment includes financial reviews and analyses of the insurers’ portfolios and capital adequacy. If we determine that it is probable that we will not collect all of our claims from one or more of our mortgage insurer counterparties, it could increase our loss reserves, which could adversely affect our results of operations, liquidity, financial condition and net worth.

When we estimate the credit losses that are inherent in our mortgage loans and under the terms of our guaranty obligations, we also consider the recoveries that we expect to receive from primary mortgage insurance, as mortgage insurance recoveries reduce the severity of the loss associated with defaulted loans if the borrower defaults and title to the property is subsequently transferred. Mortgage insurance does not cover credit losses that result from a reduction in mortgage interest paid by the borrower in connection with a loan modification, forbearance of principal, or forbearance of scheduled loan payments. We evaluate the financial condition of our mortgage insurer counterparties and adjust the contractually due recovery amounts to ensure that expected credit losses as of the balance sheet date are included in our loss reserve estimate. As a result, if our assessment of one or more of our mortgage insurer counterparties’ ability to fulfill their respective obligations to us worsens, it could increase our loss reserves. As of December 31, 2021 and 2020, our estimated benefit from mortgage insurance, which is based on estimated credit losses as of period end, reduced our loss reserves by $559 million and $1.4 billion, respectively.

When an insured loan held in our retained mortgage portfolio subsequently goes into foreclosure, we charge off the loan, eliminating any previously-recorded loss reserves, and record REO and a mortgage insurance receivable for the claim proceeds deemed probable of recovery, as appropriate. However, if a mortgage insurer rescinds, cancels or denies insurance coverage, the initial receivable becomes due from the mortgage seller or servicer. We had outstanding receivables of $533 million recorded in “Other assets” in our consolidated balance sheets as of December 31, 2021 and $560 million as of December 31, 2020 related to amounts claimed on insured, defaulted loans excluding government-insured loans. We assessed these outstanding receivables for collectability, and established a valuation allowance of $479 million as of December 31, 2021 and $497 million as of December 31, 2020, which reduced our claim receivable to the amount considered probable of collection.

Mortgage Servicers and Sellers. Mortgage servicers collect mortgage and escrow payments from borrowers, pay taxes and insurance costs from escrow accounts, monitor and report delinquencies, and perform other required activities, including loss mitigation, on our behalf. Our mortgage servicers and sellers may also be obligated to repurchase loans or foreclosed properties, reimburse us for losses or provide other remedies under certain circumstances, such as if it is determined that the mortgage loan did not meet our underwriting or eligibility requirements, if certain loan representations and warranties are violated or if mortgage insurers rescind coverage. Our representation and warranty framework does not require repurchase for loans that have breaches of certain selling representations and warranties if they have met specified criteria for relief.

Our business with mortgage servicers is concentrated. The table below displays the percentage of our single-family guaranty book of business serviced by our top five depository single-family mortgage servicers and top five non-depository single-family mortgage servicers (i.e., servicers that are not insured depository institutions), and identifies one servicer that serviced 10% or more of our single-family guaranty book of business based on unpaid principal balance.


	Percentage of Single-Family Guaranty Book of Business
	As of December 31,
	2021		2020
Wells Fargo Bank, N.A. (together with its affiliates)	10	%	13	%
Remaining top five depository servicers	11		11
Top five non-depository servicers	23		24
Total	44	%	48	%

The table below displays the percentage of our multifamily guaranty book of business serviced by our top five multifamily mortgage servicers, and identifies two servicers that serviced 10% or more of our multifamily guaranty book of business based on unpaid principal balance.


	Percentage of Multifamily Guaranty Book of Business
	As of December 31,
	2021		2020
Walker & Dunlop, Inc.	12	%	12	%
Wells Fargo Bank, N.A. (together with its affiliates)	11		12
Remaining top five servicers	24		24
Total	47	%	48	%

If a significant mortgage servicer or seller counterparty, or a number of mortgage servicers or sellers, fails to meet their obligations to us, it could adversely affect our results of operations and financial condition. We mitigate these risks in several ways, including:

•establishing minimum standards and financial requirements for our servicers;

•monitoring financial and portfolio performance as compared with peers and internal benchmarks; and

•for our largest mortgage servicers, conducting periodic financial reviews to confirm compliance with servicing guidelines and servicing performance expectations.

We may take one or more of the following actions to mitigate our credit exposure to mortgage servicers that present a higher risk:

•require a guaranty of obligations by higher-rated entities;

•transfer exposure to third parties;

•require collateral;

•establish more stringent financial requirements;

•work with underperforming major servicers to improve operational processes; and

•suspend or terminate the selling and servicing relationship if deemed necessary.

Multifamily Lenders with Risk Sharing. We enter into risk sharing agreements with lenders pursuant to which the lenders agree to bear all or some portion of the credit losses on the covered loans. Our maximum potential loss recovery from lenders under these risk sharing agreements on both Delegated Underwriting and Servicing (“DUS”) and non-DUS

multifamily loans was $97.6 billion as of December 31, 2021, compared with $92.9 billion as of December 31, 2020. As of December 31, 2021, 52% of our maximum potential loss recovery on multifamily loans was from five DUS lenders, as compared with 51% as of December 31, 2020.

Derivatives Counterparties. For information on credit risk associated with our derivative transactions and repurchase agreements see “Note 8, Derivative Instruments” and “Note 14, Netting Arrangements.”

Netting Arrangements

12 Months Ended

Dec. 31, 2021

Offsetting [Abstract]

Netting Arrangements

We use master netting arrangements, which allow us to offset certain financial instruments and collateral with the same counterparty, to minimize counterparty credit exposure. The tables below display information related to derivatives, securities purchased under agreements to resell or similar arrangements, and securities sold under agreements to repurchase or similar arrangements, which are subject to an enforceable master netting arrangement or similar agreement that are either offset or not offset in our consolidated balance sheets.


	As of December 31, 2021
			Gross Amount Offset(1)		Net Amount Presented in our Consolidated Balance Sheets			Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount							Financial Instruments(2)		Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$	239	$	(237)	$	2		$	—	$	—		$	2
Cleared risk management derivatives	—		—		—			—		—			—
Mortgage commitment derivatives	169		—		169			(133)		—			36
Total derivative assets	408		(237)		171		(4)	(133)		—			38
Securities purchased under agreements to resell or similar arrangements(5)	64,843		—		64,843			—		(64,843)			—
Total assets	$	65,251	$	(237)	$	65,014		$	(133)	$	(64,843)		$	38



Liabilities:
OTC risk management derivatives	$	(1,188)	$	1,183	$	(5)		$	—	$	—	$	(5)
Cleared risk management derivatives	—		(10)		(10)			—		10		—
Mortgage commitment derivatives	(197)		—		(197)			133		56		(8)


Total liabilities	$	(1,385)	$	1,173	$	(212)	(4)	$	133	$	66	$	(13)


	As of December 31, 2020
			Gross Amount Offset(1)		Net Amount Presented in our Consolidated Balance Sheets			Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount							Financial Instruments(2)		Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$	962	$	(952)	$	10		$	—	$	—		$	10
Cleared risk management derivatives	—		47		47			—		—			47
Mortgage commitment derivatives	989		—		989			(406)		(53)			530
Total derivative assets	1,951		(905)		1,046		(4)	(406)		(53)			587
Securities purchased under agreements to resell or similar arrangements(5)	46,644		—		46,644			—		(46,644)			—
Total assets	$	48,595	$	(905)	$	47,690		$	(406)	$	(46,697)		$	587

Liabilities:
OTC risk management derivatives	$	(1,015)	$	999	$	(16)		$	—	$	—		$	(16)
Cleared risk management derivatives	—		(4)		(4)			—		2			(2)
Mortgage commitment derivatives	(1,426)		—		(1,426)			406		1,017			(3)


Total liabilities	$	(2,441)	$	995	$	(1,446)	(4)	$	406	$	1,019		$	(21)

(1) Represents the effect of the right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received and accrued interest.

(2) Mortgage commitment derivative amounts reflect where we have recognized both an asset and a liability with the same counterparty under an enforceable master netting arrangement but we have not elected to offset the related amounts in our consolidated balance sheets.

(3) Represents collateral received that has not been recognized and not offset in our consolidated balance sheets as well as collateral posted which has been recognized but not offset in our consolidated balance sheets. Does not include collateral held or posted in excess of our exposure. The fair value of non-cash collateral we pledged which the counterparty was permitted to sell or repledge was $2.5 billion and $4.7 billion as of December 31, 2021 and 2020, respectively. The fair value of non-cash collateral received was $64.9 billion and $46.6 billion, of which $25.6 billion and $46.6 billion could be sold or repledged as of December 31, 2021 and 2020, respectively. None of the underlying collateral was sold or repledged as of December 31, 2021 and 2020, respectively.

(4) Excludes derivative assets recognized in our consolidated balance sheets of $179 million as of December 31, 2020, and derivative liabilities recognized in our consolidated balance sheets of $21 million and $49 million as of December 31, 2021 and 2020, respectively, that were not subject to enforceable master netting arrangements. We had no derivative assets recognized in our consolidated balance sheets as of December 31, 2021 that were not subject to enforceable master netting arrangements.

(5) Includes $29.1 billion and $18.4 billion of securities purchased under agreements to resell classified as “Cash and cash equivalents” in our consolidated balance sheets as of December 31, 2021 and 2020, respectively. Includes $15.0 billion in securities purchased under agreements to resell classified as “Restricted cash and cash equivalents” in our consolidated balance sheets as of December 31, 2021. There were no securities purchased under agreements to resell classified as “Restricted cash and cash equivalents” as of December 31, 2020.

Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our consolidated balance sheets.

We determine our rights to offset the assets and liabilities presented above with the same counterparty, including collateral posted or received, based on the contractual arrangements entered into with our individual counterparties and various rules and regulations that would govern the insolvency of a derivative counterparty. The following is a description, under various agreements, of the nature of those rights and their effect or potential effect on our financial position.

The terms of the majority of our contracts for OTC risk management derivatives are governed under master agreements of the International Swaps and Derivatives Association Inc. (“ISDA”). These agreements provide that all transactions entered into under the agreement with the counterparty constitute a single contractual relationship. An event of default by the counterparty allows the early termination of all outstanding transactions under the same ISDA agreement and we may offset all outstanding amounts related to the terminated transactions including collateral posted or received.

The terms of our contracts for cleared derivatives are governed under the rules of the clearing organization and the agreement between us and the clearing member of that clearing organization. In the event of a clearing organization

default, all open positions at the clearing organization are closed and a net position (on a clearing member by clearing member basis) is calculated. Unless otherwise transferred, in the event of a clearing member default, all open positions cleared through that clearing member are closed and a net position is calculated.

The terms of our contracts for mortgage commitment derivatives are primarily governed by the Fannie Mae Single-Family Selling Guide (“Selling Guide”), for Fannie Mae-approved lenders, or Master Securities Forward Transaction Agreements (“MSFTA”), for counterparties that are not Fannie Mae-approved lenders. In the event of default by the counterparty, both the Selling Guide and the MSFTA allow us to terminate all outstanding transactions under the applicable agreement and offset all outstanding amounts related to the terminated transactions including collateral posted or received. Under the Selling Guide, upon a lender event of default, we generally may offset any amounts owed to a lender against any amounts a lender may owe us under any other existing agreement, regardless of whether or not such other agreements are in default or payments are immediately due.

The terms of our contracts for securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by Master Repurchase Agreements, which are based on the guidelines prescribed by the Securities Industry and Financial Markets Association. Master Repurchase Agreements provide that all transactions under the agreement constitute a single contractual relationship. An event of default by the counterparty allows the early termination of all outstanding transactions under the same agreement and we may offset all outstanding amounts related to the terminated transactions including collateral posted or received.

In addition to these contractual relationships, we are also a clearing member of two divisions of Fixed Income Clearing Corporation (“FICC”), a central counterparty (“CCP”). One FICC division clears our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. The other division clears our forward purchase and sale commitments of mortgage-related securities, including dollar roll transactions. As a result of these trades, we are required to post initial and variation margin payments and are exposed to the risk that FICC fails to perform. As a clearing member of FICC, we are exposed to the risk that the CCP or one or more of the CCP’s clearing members fails to perform its obligations as described below.

•A default by or the financial or operational failure of FICC would require us to replace contracts cleared through FICC, thereby increasing operational costs and potentially resulting in losses.

•We may also be exposed to losses if a clearing member of FICC defaults on its obligations as each clearing member is required to absorb a portion of those fellow-clearing member losses. As a result, we could lose the margin that we have posted to FICC. Moreover, our exposure could exceed the amount of margin that we previously posted to FICC, since FICC’s rules require non-defaulting clearing members to cover, on a pro rata basis, losses caused by a clearing member’s default.

•We are unable to develop an estimate of the maximum potential amount of future payments that we could be required to make to FICC under these arrangements as our exposure is dependent on the volume of trades FICC clearing members execute now and in the future, which varies daily. Although we are unable to develop an estimate of our maximum exposure, we expect that losses caused by any clearing member would be partially offset by the fair value of margin posted by the defaulting clearing member and any other available assets of the CCP for those purposes. We believe that the risk of loss is remote due to FICC's initial and daily mark-to-market margin requirements, guarantee funds and other resources that are available in the event of a default.

We actively monitor the risks associated with FICC in order to effectively manage this counterparty risk and our associated liquidity exposure.

Fair Value

12 Months Ended

Dec. 31, 2021

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.

Recurring Changes in Fair Value

The following tables display our assets and liabilities measured in our consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option.


	Fair Value Measurements as of December 31, 2021
	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, including restricted cash equivalents(2)		$	250		$	—		$	—		$	—		$	250
Trading securities:
Mortgage-related securities:
Fannie Mae		—			1,519			57			—			1,576
Other agency		—			2,893			—			—			2,893
Private-label and other mortgage securities		—			137			—			—			137
Non-mortgage-related securities:
U.S. Treasury securities		83,581			—			—			—			83,581
Other securities		—			19			—			—			19
Total trading securities		83,581			4,568			57			—			88,206
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			64			431			—			495
Other agency		—			12			—			—			12
Alt-A and subprime private-label securities		—			3			2			—			5

Mortgage revenue bonds		—			—			144			—			144
Other		—			5			176			—			181
Total available-for-sale securities		—			84			753			—			837
Mortgage loans		—			4,209			755			—			4,964
Other assets:
Risk management derivatives:
Swaps		—			25			152			—			177
Swaptions		—			62			—			—			62



Netting adjustment		—			—			—			(237)			(237)
Mortgage commitment derivatives		—			169			—			—			169

Total other assets		—			256			152			(237)			171
Total assets at fair value		$	83,831		$	9,117		$	1,717		$	(237)		$	94,428

Liabilities:
Long-term debt:
Of Fannie Mae:

Senior floating		$	—		$	2,008		$	373		$	—		$	2,381

Of consolidated trusts		—			21,640			95			—			21,735
Total long-term debt		—			23,648			468			—			24,116
Other liabilities:
Risk management derivatives:
Swaps		—			1,165			—			—			1,165
Swaptions		—			23			—			—			23
Netting adjustment		—			—			—			(1,173)			(1,173)
Mortgage commitment derivatives		—			197			—			—			197
Credit enhancement derivatives		—			—			21			—			21
Total other liabilities		—			1,385			21			(1,173)			233
Total liabilities at fair value		$	—		$	25,033		$	489		$	(1,173)		$	24,349


	Fair Value Measurements as of December 31, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment(1)			Estimated Fair Value
Recurring fair value measurements:	(Dollars in millions)
Assets:
Cash equivalents, including restricted cash equivalents(2)		$	1,120		$	—		$	—		$	—		$	1,120
Trading securities:
Mortgage-related securities:
Fannie Mae		—			2,310			94			—			2,404
Other agency		—			3,450			1			—			3,451
Private-label and other mortgage securities		—			158			—			—			158
Non-mortgage-related securities:
U.S. Treasury securities		130,456			—			—			—			130,456
Other securities		—			73			—			—			73
Total trading securities		130,456			5,991			95			—			136,542
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			973			195			—			1,168
Other agency		—			65			—			—			65
Alt-A and subprime private-label securities		—			4			2			—			6

Mortgage revenue bonds		—			—			216			—			216
Other		—			7			235			—			242
Total available-for-sale securities		—			1,049			648			—			1,697
Mortgage loans		—			5,629			861			—			6,490
Other assets:
Risk management derivatives:
Swaps		—			376			203			—			579
Swaptions		—			383			—			—			383
Netting adjustment		—			—			—			(905)			(905)
Mortgage commitment derivatives		—			989			—			—			989
Credit enhancement derivatives		—			—			179			—			179
Total other assets		—			1,748			382			(905)			1,225
Total assets at fair value		$	131,576		$	14,417		$	1,986		$	(905)		$	147,074

Liabilities:
Long-term debt:
Of Fannie Mae:
Senior floating		$	—		$	3,312		$	416		$	—		$	3,728

Of consolidated trusts		—			24,503			83			—			24,586
Total long-term debt		—			27,815			499			—			28,314
Other liabilities:
Risk management derivatives:
Swaps		—			881			—			—			881
Swaptions		—			134			—			—			134
Netting adjustment		—			—			—			(995)			(995)
Mortgage commitment derivatives		—			1,426			—			—			1,426
Credit enhancement derivatives		—			—			49			—			49
Total other liabilities		—			2,441			49			(995)			1,495
Total liabilities at fair value		$	—		$	30,256		$	548		$	(995)		$	29,809

(1)Derivative contracts are reported on a gross basis by level. The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received.

(2)Cash equivalents and restricted cash equivalents are composed of U.S. Treasuries that have a maturity at the date of acquisition of three months or less.

The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The tables also display gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized in our consolidated statements of operations and comprehensive income for Level 3 assets and liabilities.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2021
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2021(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2021(1)
	Balance, December 31, 2020		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2021
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	94	$	(24)			$	—	$	18	$	—	$	—	$	—	$	(164)	$	133	$	57	$	—	$	—
Other agency	1		—				—		—		—		—		—		(1)		—		—		—		—

Total trading securities	$	95	$	(24)	(5)(6)		$	—	$	18	$	—	$	—	$	—	$	(165)	$	133	$	57	$	—	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	195	$	1			$	(1)	$	—	$	—	$	—	$	(33)	$	(107)	$	376	$	431	$	—	$	2

Alt-A and subprime private-label securities	2		—				—		—		—		—		—		—		—		2		—		1
Mortgage revenue bonds	216		3				(5)		—		—		—		(70)		—		—		144		—		(3)
Other	235		10				(1)		—		—		—		(68)		—		—		176		—		1
Total available-for-sale securities	$	648	$	14	(6)(7)		$	(7)	$	—	$	—	$	—	$	(171)	$	(107)	$	376	$	753	$	—	$	1

Mortgage loans	$	861	$	31	(5)(6)		$	—	$	89	$	(66)	$	—	$	(194)	$	(86)	$	120	$	755	$	26	$	—
Net derivatives	333		(209)		(5)		—		—		—		—		7		—		—		131		(202)		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(416)	$	43	(5)		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(373)	$	43	$	—
Of consolidated trusts	(83)		(1)		(5)(6)		—		—		—		—		16		20		(47)		(95)		(2)		—
Total long-term debt	$	(499)	$	42			$	—	$	—	$	—	$	—	$	16	$	20	$	(47)	$	(468)	$	41	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2020
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2020(1)
	Balance, December 31, 2019		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2020
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	45	$	(12)			$	—	$	—	$	(1)	$	—	$	—	$	(48)	$	110	$	94	$	(8)	$	—
Other agency	1		—				—		—		—		—		—		(1)		1		1		—		—
Private-label and other mortgage securities	—		3				—		—		(94)		—		(3)		—		94		—		—		—
Total trading securities	$	46	$	(9)	(5)(6)		$	—	$	—	$	(95)	$	—	$	(3)	$	(49)	$	205	$	95	$	(8)	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	171	$	1			$	4	$	—	$	(1)	$	—	$	(15)	$	(243)	$	278	$	195	$	—	$	—

Alt-A and subprime private-label securities	—		—				—		—		—		—		—		—		2		2		—		—
Mortgage revenue bonds	315		(3)				2		—		—		—		(98)		—		—		216		—		4
Other	306		(6)				(1)		—		—		—		(64)		—		—		235		—		—
Total available-for-sale securities	$	792	$	(8)	(6)(7)		$	5	$	—	$	(1)	$	—	$	(177)	$	(243)	$	280	$	648	$	—	$	4

Mortgage loans	$	688	$	47	(5)(6)		$	—	$	—	$	(21)	$	—	$	(132)	$	(104)	$	383	$	861	$	11	$	—
Net derivatives	162		233		(5)		—		—		—		—		(80)		18		—		333		159		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(398)	$	(41)	(5)		$	—	$	—	$	—	$	—	$	23	$	—	$	—	$	(416)	$	(41)	$	—
Of consolidated trusts	(75)		(2)		(5)(6)		—		—		—		—		18		5		(29)		(83)		(1)		—
Total long-term debt	$	(473)	$	(43)			$	—	$	—	$	—	$	—	$	41	$	5	$	(29)	$	(499)	$	(42)	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2019
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2019(1)
	Balance, December 31, 2018		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2019
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	32	$	3			$	—	$	77	$	(22)	$	—	$	(16)	$	(108)	$	79	$	45	$	1	$	—
Other agency	—		—				—		—		—		—		—		—		1		1		—		—
Private-label and other mortgage securities	1		—				—		—		—		—		(1)		—		—		—		—		—
Total trading securities	$	33	$	3	(5)(6)		$	—	$	77	$	(22)	$	—	$	(17)	$	(108)	$	80	$	46	$	1	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	152	$	—			$	7	$	—	$	—	$	—	$	(8)	$	(103)	$	123	$	171	$	—	$	6

Alt-A and subprime private-label securities	24		5				(5)		—		(23)		—		(1)		—		—		—		—		—
Mortgage revenue bonds	434		1				(3)		—		(5)		—		(112)		—		—		315		—		(1)
Other	342		13				(10)		—		—		—		(37)		(3)		1		306		—		(8)
Total available-for-sale securities	$	952	$	19	(6)(7)		$	(11)	$	—	$	(28)	$	—	$	(158)	$	(106)	$	124	$	792	$	—	$	(3)

Mortgage loans	$	937	$	46	(5)(6)		$	—	$	—	$	(52)	$	—	$	(136)	$	(254)	$	147	$	688	$	26	$	—
Net derivatives	194		109		(5)		—		—		—		—		(119)		(10)		(12)		162		3		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(351)	$	(47)	(5)		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(398)	$	(47)	$	—
Of consolidated trusts	(201)		(8)		(5)(6)		—		—		—		(2)		19		200		(83)		(75)		(4)		—
Total long-term debt	$	(552)	$	(55)			$	—	$	—	$	—	$	(2)	$	19	$	200	$	(83)	$	(473)	$	(51)	$	—

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

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

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

(4)Amount represents temporary changes in fair value. Amortization, accretion and the impairment of credit losses (other-than-temporary impairment in years prior to 2020) are not considered unrealized and are not included in this amount.

(5)Gains (losses) are included in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income.

(6)Gains (losses) are included in “Net interest income” in our consolidated statements of operations and comprehensive income.

(7)Gains (losses) are included in “Investment gains, net” in our consolidated statements of operations and comprehensive income.The following tables display valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the reporting date.


	Fair Value Measurements as of December 31, 2021
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs(1)	Range(1)			Weighted - Average(1)(2)
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency(3)	$	57	Various
Available-for-sale securities:
Mortgage-related securities:
Agency(3)	379		Consensus
	52		Various
Total agency	431
Alt-A and subprime private-label securities	2		Various

Mortgage Revenue Bonds	94		Single Vendor	Spreads (bps)	9.3	-	49.4	27.2
	50		Various
Total mortgage revenue bonds	144
Other	175		Discounted Cash Flow	Spreads (bps)	409.0	-	434.0	422.0
	1		Various
Total other	176
Total available-for-sale securities	$	753
Net derivatives	$	152	Dealer Mark
	(21)		Discounted Cash Flow
Total net derivatives	$	131


	Fair Value Measurements as of December 31, 2020
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs(1)	Range(1)			Weighted - Average(1)(2)
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency(3)	$	95	Various


Available-for-sale securities:
Mortgage-related securities:
Agency(3)	97		Consensus
	98		Various
Total Agency	195
Alt-A and subprime private-label securities	2		Various

Mortgage revenue bonds	144		Single Vendor	Spreads (bps)	32.0	-	315.3	93.4
	72		Various


Total mortgage revenue bonds	216
Other	206		Discounted Cash Flow	Spreads (bps)	425.0	-	443.0	434.2
	29		Various

Total other	235
Total available-for-sale securities	$	648


















Net derivatives	$	203	Dealer Mark

	130		Discounted Cash Flow
Total net derivatives	$	333

(1)Valuation techniques for which no unobservable inputs are disclosed generally reflect the use of third-party pricing services or dealers, and the range of unobservable inputs applied by these sources is not readily available or cannot be reasonably estimated. Where we have disclosed unobservable inputs for consensus and single vendor techniques, those inputs are based on our validations performed at the security level using discounted cash flows.

(2)Unobservable inputs were weighted by the relative fair value of the instruments.

(3)Includes Fannie Mae and Freddie Mac securities.

In our consolidated balance sheets certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment). We held no Level 1 assets or liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2021 or 2020. We held $38 million and $25 million in Level 2 assets as of December 31, 2021 and 2020, respectively, composed of mortgage loans held for sale that were impaired. We had no Level 2 liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2021 or 2020.

The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis.


		Fair Value Measurements as of December 31,
	Valuation Techniques	2021		2020
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	201	$	754
	Single Vendor	1,383		333

Total mortgage loans held for sale, at lower of cost or fair value		1,584		1,087

Single-family mortgage loans held for investment, at amortized cost	Internal Model	867		979



Multifamily mortgage loans held for investment, at amortized cost	Appraisal	37		225

	Broker Price Opinion	118		40
	Internal Model	23		125

Total multifamily mortgage loans held for investment, at amortized cost		178		390

Acquired property, net:
Single-family	Accepted Offer	13		35
	Appraisal	73		89
	Internal Model	75		41
	Walk Forward	37		85
	Various	11		11
Total single-family		209		261




Multifamily	Various	34		25





Total nonrecurring assets at fair value		$	2,872	$	2,742

We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations.


Instruments	Valuation Techniques	Classification
U.S Treasury Securities	We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy.	Level 1
Trading Securities and Available-for-Sale Securities	We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, spreads) are disclosed in the table above. Consensus: Uses an average of two or more vendor prices for similar securities. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, spreads) are disclosed in the table above.	Level 2 and 3
	Discounted Cash Flow: In the absence of prices provided by third-party pricing services supported by observable market data, we estimate the fair value of a portion of our securities using a discounted cash flow technique that uses inputs such as default rates, prepayment speeds, loss severity and spreads based on market assumptions where available. For private-label securities, an increase in unobservable prepayment speeds in isolation would generally result in an increase in fair value, and an increase in unobservable spreads, severity rates or default rates in isolation would generally result in a decrease in fair value. For mortgage revenue bonds classified as Level 3 of the valuation hierarchy, an increase in unobservable spreads would result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of our recurring Level 3 securities above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
Mortgage Loans Held for Investment	Build-up: We derive the fair value of performing mortgage loans using a build-up valuation technique starting with the base value for our Fannie Mae MBS with similar characteristics and then add or subtract the fair value of the associated guaranty asset, guaranty obligation (“GO”) and master servicing arrangement. We set the GO equal to the estimated fair value we would receive if we were to issue our guaranty to an unrelated party in a stand-alone arm’s length transaction at the measurement date. The fair value of the GO is estimated based on our current guaranty pricing for loans underwritten after 2008 and our internal valuation models considering management’s best estimate of key loan characteristics for loans underwritten before 2008. Our performing loans are generally classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that unobservable inputs are significant, the loans are classified as Level 3 of the valuation hierarchy.	Level 2 and 3
	Consensus: Calculated through the extrapolation of indicative sample bids obtained from multiple active market participants plus the estimated value of any applicable mortgage insurance, the estimated fair value using the Consensus method represents an estimate of the prices we would receive if we were to sell these single-family nonperforming and certain reperforming loans in the whole loan market. The fair value of any mortgage insurance on a nonperforming or reperforming loan is estimated using product-specific pricing grids that have been derived from loan-level bids on whole loan transactions. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. We estimate the fair value for a portion of our senior-subordinated trust structures using the average of two or more vendor prices at the security level as a proxy for estimating loan fair value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.
	Single Vendor: We estimate the fair value of our reverse mortgages using the single vendor valuation technique. Internal Model: The internal model used to value collateral contains four sub-component models: 1) Location Model, 2) Neighborhood Model, 3) Automated Valuation Model (“AVM”) Imputation Model and 4) Final Valuation Model. These models consider characteristics of the property, neighborhood, local housing markets, underlying loan and home price growth to derive a final estimated value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.


Instruments	Valuation Techniques	Classification
Mortgage Loans Held for Investment	Appraisal: We use appraisals to estimate the fair value for a portion of our multifamily loans based on either estimated replacement cost, the present value of future cash flows, or sales of similar properties. Significant unobservable inputs include estimated replacement or construction costs, property net operating income, capitalization rates, and adjustments made to sales of comparable properties based on characteristics such as financing, conditions of sale, and physical characteristics of the property. Broker Price Opinion: We use broker price opinions to estimate the fair value for a portion of our multifamily loans. This technique uses both current property value and the property value adjusted for stabilization and market conditions. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. Asset Manager Estimate: This technique uses the net operating income and tax assessments of the specific property as well as Metropolitan Statistical Area-specific market capitalization rates and average per unit sales values to estimate property fair value.	Level 2 and 3
	An increase in prepayment speeds in isolation would generally result in an increase in the fair value of our mortgage loans classified as Level 3 of the valuation hierarchy, and an increase in severity rates, default rates or spreads in isolation would generally result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of the mortgage loans classified as Level 3 above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
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 our HFI loans and are described above in “Mortgage Loans Held for Investment.” To the extent that significant inputs are unobservable, the loans are classified within level 3 of the valuation hierarchy.	Level 2 and 3
Acquired Property, Net and Other Assets	Single-family acquired property valuation techniques Accepted Offer: An Offer to Purchase Real Estate that has been submitted by a potential purchaser of an acquired property and accepted by Fannie Mae in a pending sale. Appraisal: An appraisal is an estimate based on recent historical data of the value of a specific property by a certified or licensed appraiser. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s use of specific market research and a sales comparison approach that is similar to the appraisal process. This information, all of which is unobservable, is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value.	Level 3
	Appraisal and Broker Price Opinion Walk Forward (“Walk Forward”): We use these techniques to adjust appraisal and broker price opinion valuations for changing market conditions by applying a walk forward factor based on local price movements since the time the third-party value was obtained. Internal Model: We use an internal model to estimate fair value for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”
	Multifamily acquired property valuation techniques Appraisal: 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 Opinion: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Asset Manager Estimate: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”
Asset and Liability Derivative Instruments (collectively “Derivatives”)	The valuation process for the majority of our risk management derivatives uses observable market data provided by third-party sources, resulting in Level 2 classification of the valuation hierarchy. Single Vendor: We use one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Clearing House: We use the clearing house-provided value for interest-rate derivatives which are transacted through a clearing house. Internal Model: We use internal models to value interest-rate derivatives which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount cash flows to present value. Discounted Cash Flow: We use discounted cash flow to estimate fair value for credit enhancement derivatives related to CRT.	Level 2 and 3


Instruments	Valuation Techniques	Classification
Asset and Liability Derivative Instruments (collectively “Derivatives”)	Dealer Mark: Certain highly complex structured swaps primarily use a single dealer mark due to lack of transparency in the market and may be modeled using observable interest rates and volatility levels as well as significant unobservable assumptions, resulting in Level 3 classification of the valuation hierarchy. Mortgage commitment derivatives that use observable market data, quotes and actual transaction price levels adjusted for market movement are typically classified as Level 2 of the valuation hierarchy. To the extent mortgage commitment derivatives include adjustments for market movement that cannot be corroborated by observable market data, we classify them as Level 3 of the valuation hierarchy.	Level 2 and 3
Debt of Fannie Mae and Consolidated Trusts	We classify debt instruments that have quoted market prices in active markets for similar liabilities when traded as assets as Level 2 of the valuation hierarchy. For all valuation techniques used for debt instruments where there is limited activity or less transparency around these inputs to the valuation, these debt instruments are classified as Level 3 of the valuation hierarchy. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value for similar liabilities when traded as assets. Single Vendor: Uses a single vendor price that represents estimated fair value for these liabilities when traded as assets. Discounted Cash Flow: Uses spreads based on market assumptions where available. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Trading Securities and Available-for-Sale Securities.”	Level 2 and 3

Fair Value of Financial Instruments

The following table displays the carrying value and estimated fair value of our financial instruments. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that we do not record in our consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes all non-financial instruments; therefore, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities.


	As of December 31, 2021
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents	$	108,631	$	64,531	$	44,100	$	—	$	—	$	108,631
Securities purchased under agreements to resell or similar arrangements	20,743		—		20,743		—		—		20,743
Trading securities	88,206		83,581		4,568		57		—		88,206
Available-for-sale securities	837		—		84		753		—		837
Mortgage loans held for sale	5,134		—		178		5,307		—		5,485
Mortgage loans held for investment, net of allowance for loan losses	3,963,108		—		3,796,917		209,090		—		4,006,007
Advances to lenders	8,414		—		8,413		1		—		8,414
Derivative assets at fair value	171		—		256		152		(237)		171
Guaranty assets and buy-ups	92		—		—		207		—		207
Total financial assets	$	4,195,336	$	148,112	$	3,875,259	$	215,567	$	(237)	$	4,238,701

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	2,795	$	—	$	2,795	$	—	$	—	$	2,795

Long-term debt:
Of Fannie Mae	198,097		—		205,142		799		—		205,941
Of consolidated trusts	3,957,299		—		3,951,537		32,644		—		3,984,181
Derivative liabilities at fair value	233		—		1,385		21		(1,173)		233
Guaranty obligations	101		—		—		101		—		101
Total financial liabilities	$	4,158,525	$	—	$	4,160,859	$	33,565	$	(1,173)	$	4,193,251


	As of December 31, 2020
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents	$	115,623	$	97,179	$	18,444	$	—	$	—	$	115,623
Securities purchased under agreements to resell or similar arrangements	28,200		—		28,200		—		—		28,200
Trading securities	136,542		130,456		5,991		95		—		136,542
Available-for-sale securities	1,697		—		1,049		648		—		1,697
Mortgage loans held for sale	5,197		—		116		5,502		—		5,618
Mortgage loans held for investment, net of allowance for loan losses	3,648,695		—		3,512,672		255,556		—		3,768,228
Advances to lenders	10,449		—		10,448		1		—		10,449
Derivative assets at fair value	1,225		—		1,748		382		(905)		1,225
Guaranty assets and buy-ups	115		—		—		258		—		258
Total financial assets	$	3,947,743	$	227,635	$	3,578,668	$	262,442	$	(905)	$	4,067,840

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	12,173	$	—	$	12,177	$	—	$	—	$	12,177

Long-term debt:
Of Fannie Mae	277,399		—		288,414		878		—		289,292
Of consolidated trusts	3,646,164		—		3,756,673		31,584		—		3,788,257
Derivative liabilities at fair value	1,495		—		2,441		49		(995)		1,495
Guaranty obligations	127		—		—		82		—		82
Total financial liabilities	$	3,937,358	$	—	$	4,059,705	$	32,593	$	(995)	$	4,091,303

The following is a description of the valuation techniques we use for fair value measurement of our financial instruments as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in certain specific situations.


Instruments	Description	Classification
Financial Instruments for which Fair Value Approximates Carrying Value	We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash and cash equivalents, the majority of advances to lenders, and securities sold/purchased under agreements to repurchase/resell.	Level 1 and 2
Securities Sold/Purchased Under Agreements to Repurchase/Resell	The carrying value for the majority of these specific instruments approximates the fair value due to the short-term nature and the negligible inherent credit risk, as they involve the exchange of collateral that is easily traded. Were we to calculate the fair value of these instruments, we would use observable inputs.	Level 2
Mortgage Loans Held for Sale	Loans are reported at the lower of cost or fair value in our consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are the same as for our HFI loans and are described under “Fair Value Measurement—Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table. To the extent that significant inputs are unobservable, the loans are classified within Level 3 of the valuation hierarchy.	Level 2 and 3
Mortgage Loans Held for Investment	For a description of loan valuation techniques, refer to “Fair Value Measurement—Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table. We measure the fair value of certain loans that are delivered under the Home Affordable Refinance Program® (“HARP®”) using a modified build-up approach while the loan is performing. Under this modified approach, we set the credit component of the consolidated loans (that is, the guaranty obligation) equal to the compensation we would currently receive for a loan delivered to us under the program because the total compensation for these loans is equal to their current exit price in the government-sponsored enterprise securitization market. If, subsequent to delivery, the refinanced loan becomes past due or is modified as a part of a troubled debt restructuring, the fair value of the guaranty obligation is then measured consistent with other loans that have similar characteristics.	Level 2 and 3
Advances to Lenders	The carrying value for the majority of our advances to lenders approximates the fair value due to the short-term nature and the negligible inherent credit risk. If we were to calculate the fair value of these instruments, we would use discounted cash flow models that use observable inputs such as spreads based on market assumptions, resulting in Level 2 classification. Advances to lenders also include loans that do not qualify for Fannie Mae MBS securitization and are valued using a discounted cash flow technique that uses estimated credit spreads of similar collateral and prepayment speeds that consider recent prepayment activity. We classify these valuations as Level 3 given that significant inputs are not observable or are determined by extrapolation of observable inputs.	Level 2 and 3
Guaranty Assets and Buy-ups	Guaranty assets related to our portfolio securitizations are recorded in our consolidated balance sheets at fair value on a recurring basis and are classified as Level 3. Guaranty assets in lender swap transactions are recorded in our consolidated balance sheets at the lower of cost or fair value. These assets, which are measured at fair value on a nonrecurring basis, are also classified as Level 3. We estimate the fair value of guaranty assets by using proprietary models to project cash flows based on management’s best estimate of key assumptions such as prepayment speeds and forward yield curves. Because guaranty assets are similar to an interest-only income stream, the projected cash flows are discounted at rates that consider the current spreads on interest-only swaps that reference Fannie Mae MBS and also liquidity considerations of the guaranty assets. The fair value of guaranty assets includes the fair value of any associated buy-ups.	Level 3
Guaranty Obligations	The fair value of all guaranty obligations, measured subsequent to their initial recognition, is our estimate of a hypothetical transaction price we would receive if we were to issue our guaranty to an unrelated party in a standalone arm’s-length transaction at the measurement date. The valuation methodology and inputs used in estimating the fair value of the guaranty obligations are described under “Fair Value Measurement—Mortgage loans held for investment—build-up” in the valuation techniques for assets and liabilities held at fair value.	Level 3

Fair Value Option

We elect the fair value option for loans and debt that contain embedded derivatives that would otherwise require bifurcation. Additionally, we elected the fair value option for our credit risk-sharing securities accounted for as debt of Fannie Mae issued under our CAS series prior to January 1, 2016. Under the fair value option, we elected to carry these instruments at fair value instead of bifurcating the embedded derivative from such instruments.

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

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,
	2021									2020
	Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts			Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts
	(Dollars in millions)
Fair value		$	4,964		$	2,381		$	21,735		$	6,490		$	3,728		$	24,586
Unpaid principal balance		4,601			2,197			19,314			6,046			3,518			21,408

(1) Includes nonaccrual loans with a fair value of $86 million and $139 million as of December 31, 2021 and 2020, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of December 31, 2021 and 2020 was $3 million and $8 million, respectively. Includes loans that are 90 days or more past due with a fair value of $125 million and $257 million as of December 31, 2021 and 2020, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of December 31, 2021 and 2020 was $6 million and $14 million, respectively.

Changes in Fair Value under the Fair Value Option Election

We recorded gains of $28 million, $263 million and $357 million for the years ended December 31, 2021, 2020 and 2019, respectively, from changes in the fair value of loans recorded at fair value in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income.

We recorded gains of $631 million and losses of $432 million and $765 million for the years ended December 31, 2021, 2020 and 2019, respectively, from changes in the fair value of long-term debt recorded at fair value in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income.

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.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies

We are party to various types of legal actions and proceedings, including actions brought on behalf of various classes of claimants. We also are subject to regulatory examinations, inquiries and investigations, and other information gathering requests. In some of the matters, indeterminate amounts are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. This variability in pleadings, together with our and our counsel’s actual experience in litigating or settling claims, leads us to conclude that the monetary relief that may be sought by plaintiffs bears little relevance to the merits or disposition value of claims.

We have substantial and valid defenses to the claims in the proceedings described below and intend to defend these matters vigorously. However, legal actions and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Accordingly, the outcome of any given matter and the amount or range of potential loss at particular points in time is frequently difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel may view the evidence and applicable law.

On a quarterly basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, accruals and disclosures. We establish an accrual only for matters when a loss is probable and we can reasonably estimate the amount of such loss. We are often unable to estimate the possible losses or ranges of losses, particularly for proceedings that are in their early stages of development, where plaintiffs seek indeterminate or unspecified damages, where there may be novel or unsettled legal questions relevant to the proceedings, or where settlement negotiations have not occurred or progressed. Given the uncertainties involved in any action or proceeding, regardless of whether we have established an accrual, the ultimate resolution of certain of these matters may be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our net income or loss for that period.

In addition to the matters specifically described below, we are involved in a number of legal and regulatory proceedings that arise in the ordinary course of business that we do not expect will have a material impact on our business or financial condition.

Senior Preferred Stock Purchase Agreements Litigation

A consolidated class action (“In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations”) and a non-class action lawsuit, Fairholme Funds v. FHFA, filed by Fannie Mae and Freddie Mac shareholders against us, FHFA as our conservator, and Freddie Mac are pending in the U.S. District Court for the District of Columbia. The lawsuits challenge the August 2012 amendment to each company’s senior preferred stock purchase agreement with Treasury.

Plaintiffs in these lawsuits filed amended complaints on November 1, 2017 alleging that the net worth sweep dividend provisions of the senior preferred stock that were implemented pursuant to the August 2012 amendments nullified certain of the shareholders’ rights, particularly the right to receive dividends. Plaintiffs seek unspecified damages, equitable and injunctive relief, and costs and expenses, including attorneys’ fees. Plaintiffs in the class action represent a class of Fannie Mae preferred shareholders and classes of Freddie Mac common and preferred shareholders. On September 28, 2018, the court dismissed all of the plaintiffs’ claims except for their claims for breach of an implied covenant of good faith and fair dealing. Plaintiffs in a third lawsuit, Arrowood Indemnity Company v. Fannie Mae, voluntarily dismissed their case, without prejudice, on November 18, 2021.

Given the stage of these lawsuits, the substantial and novel legal questions that remain, and our substantial defenses, we are currently unable to estimate the reasonably possible loss or range of loss arising from this litigation.

Unconditional Purchase and Lease Commitments

We have unconditional commitments related to the purchase of loans and mortgage-related securities. These include both on- and off-balance sheet commitments. A portion of these have been recorded as derivatives in our consolidated balance sheets.

We lease certain premises and equipment under agreements that expire at various dates through August 31, 2037. Some of these leases provide for payment by the lessee of property taxes, insurance premiums, cost of maintenance and other costs. Rental expenses for operating leases were $108 million, $94 million and $95 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The following table summarizes by remaining maturity, non-cancelable future commitments related to loan and mortgage purchases, operating leases and other agreements.


	As of December 31, 2021
	Loans and Mortgage-Related Securities(1)		Operating Leases(2)		Other(3)
	(Dollars in millions)
2022	$	76,053	$	61	$	136
2023	—		79		119
2024	—		80		14
2025	—		81		9
2026	—		82		6
Thereafter	—		738		—
Total	$	76,053	$	1,121	$	284

(1)Primarily includes mortgage commitment derivatives.

(2)Includes amounts related to office buildings and equipment leases.

(3)Includes purchase commitments for certain telecommunications services, computer software and services, and other agreements and commitments.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Segment Reporting	We have two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to loans secured by properties containing five or more residential units. We have two reportable business segments, which are based on the type of business activities each perform: Single-Family and Multifamily. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our consolidated results of operations.
Conservatorship	Conservatorship On September 7, 2008, the Secretary of the Treasury and the Director of FHFA announced several actions taken by Treasury and FHFA regarding Fannie Mae, which included: (1) placing us in conservatorship, with FHFA acting as our conservator, and (2) the execution of a senior preferred stock purchase agreement by our conservator, on our behalf, and Treasury, pursuant to which we issued to Treasury both senior preferred stock and a warrant to purchase common stock. Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended, including by the Housing and Economic Recovery Act of 2008 (together, the “GSE Act”), the conservator immediately succeeded to (1) all rights, titles, powers and privileges of Fannie Mae, and of any stockholder, officer or director of Fannie Mae with respect to Fannie Mae and its assets, and (2) title to the books, records and assets of any other legal custodian of Fannie Mae. The conservator subsequently issued an order that provided for our Board of Directors to exercise specified functions and authorities. The conservator also provided instructions regarding matters for which conservator decision or notification is required. The conservator retains the authority to amend or withdraw its order and instructions at any time. The conservator has the power to transfer or sell any asset or liability of Fannie Mae (subject to limitations and post-transfer notice provisions for transfers of qualified financial contracts) without any approval, assignment of rights or consent of any party. However, mortgage loans and mortgage-related assets that have been transferred to a Fannie Mae MBS trust must be held by the conservator for the beneficial owners of the Fannie Mae MBS and cannot be used to satisfy the general creditors of Fannie Mae. Neither the conservatorship nor the terms of our agreements with Treasury change our obligation to make required payments on our debt securities or perform under our mortgage guaranty obligations. The conservatorship has no specified termination date and there continues to be significant uncertainty regarding our future, including how long we will continue to exist in our current form, the extent of our role in the market, the level of government support of our business, how long we will be in conservatorship, what form we will have and what ownership interest, if any, our current common and preferred stockholders will hold in us after the conservatorship is terminated and whether we will continue to exist following conservatorship. Under the GSE Act, FHFA must place us into receivership if the Director of FHFA makes a written determination that our assets are less than our obligations or if we have not been paying our debts, in either case, for a period of 60 days. In addition, the Director of FHFA may place us into receivership at the Director’s discretion at any time for other reasons set forth in the GSE Act, including if we are critically undercapitalized or if we are undercapitalized and have no reasonable prospect of becoming adequately capitalized. Should we be placed into receivership, different assumptions would be required to determine the carrying value of our assets, which could lead to substantially different financial results. Treasury has made a commitment under the senior preferred stock purchase agreement to provide funding to us under certain circumstances if we have a net worth deficit. We are not aware of any plans of FHFA (1) to fundamentally change our business model, or (2) to reduce the aggregate amount available to or held by the company under our capital structure, which includes the senior preferred stock purchase agreement.
Obligation to Pay TCCA Fees to Treasury	To meet our obligations under the TCCA and at the direction of FHFA, we increased the guaranty fee on all single-family residential mortgages delivered to us by 10 basis points effective April 1, 2012. The resulting fee revenue and expense are recorded in “Interest income: Mortgage loans” and “TCCA fees,” respectively, in our consolidated statements of operations and comprehensive income. In 2020, FHFA provided guidance that we are not required to accrue or remit TCCA fees to Treasury with respect to loans backing MBS trusts that have been delinquent for four months or longer. Once payments on such loans resume, we will resume accrual and remittance to Treasury of the associated TCCA fees on the loans. In November 2021, the Infrastructure Investment and Jobs Act was enacted, which extended to October 1, 2032 our obligation under the TCCA to collect 10 basis points in guaranty fees on single-family residential mortgages delivered to us and pay the associated revenue to Treasury. In January 2022, FHFA advised us to continue to pay these TCCA fees to Treasury with respect to all single-family loans acquired by us before October 1, 2032, and to continue to remit these amounts to Treasury on and after October 1, 2032 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated.
Related Parties	Related Parties Because Treasury holds a warrant to purchase shares of Fannie Mae common stock equal to 79.9% of the total number of shares of Fannie Mae common stock, we and Treasury are deemed related parties. As of December 31, 2021, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $163.7 billion. See “Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant” above for additional information on transactions under this agreement and the modifications made in the January 2021 and September 2021 letter agreements. FHFA’s control of both Fannie Mae and Freddie Mac has caused Fannie Mae, FHFA and Freddie Mac to be deemed related parties. Additionally, Fannie Mae and Freddie Mac jointly own Common Securitization Solutions, LLC (“CSS”), a limited liability company created to operate a common securitization platform; as a result, CSS is deemed a related party. As a part of our joint ownership, Fannie Mae, Freddie Mac and CSS are parties to a limited liability company agreement that sets forth the overall framework for the joint venture, including Fannie Mae’s and Freddie Mac’s rights and responsibilities as members of CSS. Fannie Mae, Freddie Mac and CSS are also parties to a customer services agreement that sets forth the terms under which CSS provides mortgage securitization services to us and Freddie Mac, including the operation of the common securitization platform, as well as an administrative services agreement. CSS operates as a separate company from us and Freddie Mac, with all funding and limited administrative support services and other resources provided to it by us and Freddie Mac.In the ordinary course of business, Fannie Mae may purchase and sell securities issued by Treasury and Freddie Mac. These transactions occur on the same terms as those prevailing at the time for comparable transactions with unrelated parties. Some of the structured securities we issue are backed in whole or in part by Freddie Mac securities. Fannie Mae and Freddie Mac each have agreed to indemnify the other party for losses caused by: its failure to meet its payment or other specified obligations under the trust agreements pursuant to which the underlying resecuritized securities were issued; its failure to meet its obligations under the customer services agreement; its violations of laws; or with respect to material misstatements or omissions in offering documents, ongoing disclosures and related materials relating to the underlying resecuritized securities. Additionally, we make regular income tax payments to and receive tax refunds from the Internal Revenue Service (“IRS”), a bureau of Treasury.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). To conform to our current-period presentation, we have reclassified certain amounts reported in our prior periods’ consolidated financial statements. Presentation of Restricted Cash and Cash Equivalents Restricted cash and cash equivalents includes funds held by consolidated MBS trusts that have not yet been remitted to MBS certificateholders under the terms of our servicing guide and the related trust agreements. In 2021, Fannie Mae, in its role as trustee, began to invest funds held by consolidated trusts directly in eligible short-term third-party investments, which may include investments in cash equivalents that are composed of overnight repurchase agreements and U.S. Treasuries that have a maturity at the date of acquisition of three months or less. The funds underlying these short-term investments are restricted per the trust agreements. Accordingly, any investment in cash equivalents should be classified as restricted and is presented as “Restricted cash and cash equivalents” in our consolidated balance sheets to reflect the investment of funds related to MBS trusts. Presentation of Freestanding Credit Enhancement Expense and Recoveries Freestanding credit enhancements primarily include our Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk TransferTM (“CIRTTM”) programs, enterprise-paid mortgage insurance (“EPMI”), and certain lender risk-sharing arrangements, including our multifamily Delegated Underwriting and Servicing (“DUS®”) program. We have revised our presentation of the expenses and recoveries associated with these programs as described below. Credit Enhancement Expense Credit enhancement expense consists of costs associated with our freestanding credit enhancements. We exclude from this expense costs related to our CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments. Starting in 2020, we began presenting credit enhancement expense as a separate line item in the consolidated statement of operations and comprehensive income for all periods presented, as these expenses have become a more significant driver of our results of operations. Previously, credit enhancement expenses had been presented in “Other expenses, net.” Change in Expected Credit Enhancement Recoveries Change in expected credit enhancement recoveries consists of the change in benefits recognized from our freestanding credit enhancements, including any realized amounts. Benefits, if any, from our CAS, CIRT and EPMI programs are presented in “Change in expected credit enhancement recoveries” for all periods presented. Benefits from other lender risk-sharing programs, including our multifamily DUS program, were recorded as a reduction of credit-related expense in periods prior to 2020. However, with our adoption of the Current Expected Credit Loss standard on January 1, 2020, benefits from freestanding credit enhancements are no longer recorded as a reduction of credit-related expenses. These benefits from lender risk-sharing have been presented in “Change in expected credit enhancement recoveries” on a prospective basis beginning January 1, 2020.
Use of Estimates	Use of Estimates Preparing consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities as of the dates of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting periods. Management has made significant estimates in a variety of areas including, but not limited to, our allowance for loan losses. Actual results could be different from these estimates.
Principles of Consolidation	Principles of Consolidation Our consolidated financial statements include our accounts as well as the accounts of the other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in an entity such as a variable interest entity (“VIE”) through arrangements that do not involve voting interests. The majority of Fannie Mae’s controlling interests arise from arrangements with VIEs. VIE Assessment We have interests in various entities that are considered VIEs. A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine whether an entity is a VIE by performing a qualitative analysis, which requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. The primary types of VIE entities with which we are involved are securitization trusts guaranteed by us via lender swap and portfolio securitization transactions, special-purpose vehicles (“SPVs”) associated with certain credit risk transfer programs, limited partnership investments in low-income housing tax credit (“LIHTC”) and other housing partnerships, as well as mortgage and asset-backed trusts that were not created by us. For more information on the primary types of VIE entities with which we are involved, see “Note 2, Consolidations and Transfers of Financial Assets.” Primary Beneficiary Determination If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. We are deemed to be the primary beneficiary of a VIE when we have both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and (2) exposure to benefits and/or losses that could potentially be significant to the entity. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities, and noncontrolling interests of the VIE in its consolidated financial statements. The assessment of which party has the power to direct the activities of the VIE may require significant management judgment when (1) more than one party has power or (2) more than one party is involved in the design of the VIE but no party has the power to direct the ongoing activities that could be significant. We continually assess whether we are the primary beneficiary of the VIEs with which we are involved and therefore may consolidate or deconsolidate a VIE through the duration of our involvement. Examples of certain events that may change whether or not we consolidate the VIE include a change in the design of the entity or a change in our ownership in the entity. Measurement of Consolidated Assets and Liabilities When we are the transferor of assets into a VIE that we consolidate at the time of the transfer, we continue to recognize the assets and liabilities of the VIE at the amounts that they would have been recognized if we had not transferred them, and no gain or loss is recognized. For all other VIEs that we consolidate (that is, those for which we are not the transferor), we recognize the assets and liabilities of the VIE in our consolidated financial statements at fair value, and we recognize a gain or loss for the difference between (1) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests, and (2) the net amount of the fair value of the assets and liabilities recognized upon consolidation. However, for the securitization trusts established under our lender swap program, no gain or loss is recognized if the trust is consolidated at formation as there is no difference in the respective fair value of (1) and (2) above. We record gains or losses that are associated with the consolidation of VIEs as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income. If we cease to be deemed the primary beneficiary of a VIE, we deconsolidate the VIE. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in “Investment gains, net” in our consolidated statements of operations and comprehensive income. Purchase/Sale of Fannie Mae Securities We actively purchase and sell guaranteed MBS that have been issued through lender swap and portfolio securitization transactions. The accounting for the purchase and sale of our guaranteed MBS issued by the trusts differs based on the characteristics of the securitization trusts and whether the trusts are consolidated and is discussed in “Single-Class Securitization Trusts,” “Single-Class Resecuritization Trusts” and “Multi-Class Resecuritization Trusts” below. Uniform Mortgage-Backed Securities (“UMBS”) Uniform Mortgage-Backed Securities (“UMBS”) are common mortgage-backed securities issued by both Fannie Mae and Freddie Mac to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. We and Freddie Mac began issuing UMBS and resecuritizing UMBS certificates into structured securities in June 2019. The structured securities backed by UMBS that we issue include Supers, which are single-class resecuritization transactions, Real Estate Mortgage Investment Conduit securities (“REMICs”) and interest-only and principal-only strip securities (“SMBS”), which are multi-class resecuritization transactions. Since June 2019, we have resecuritized UMBS, Supers and other structured securities issued by Freddie Mac. The mortgage loans that serve as collateral for Freddie Mac-issued UMBS are not held in trusts that are consolidated by Fannie Mae. When we include Freddie Mac securities in our structured securities, we are subject to additional credit risk because we guarantee securities that were not previously guaranteed by Fannie Mae. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We have concluded that this additional credit risk is negligible because of the funding commitment available to Freddie Mac through its senior preferred stock purchase agreement with Treasury. Single-Class Securitization Trusts We create single-class securitization trusts to issue single-class Fannie Mae MBS (including UMBS) that evidence an undivided interest in the mortgage loans held in the trust. Investors in single-class Fannie Mae MBS receive principal and interest payments in proportion to their percentage ownership of the MBS issuance. We guarantee to each single-class securitization trust that we will supplement amounts received by the securitization trust as required to permit timely payments of principal and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie Mae MBS. Single-class securitization trusts are used for lender swap and portfolio securitization transactions. A lender swap transaction occurs when a mortgage lender delivers a pool of single-family mortgage loans to us, which we immediately deposit into an MBS trust. The MBS are then issued to the lender in exchange for the mortgage loans. A portfolio securitization transaction occurs when we purchase mortgage loans from third-party sellers for cash and later deposit these loans into an MBS trust. The securities issued through a portfolio securitization are then sold to investors for cash. We consolidate single-class securitization trusts that are issued under these programs when our role as guarantor and master servicer provides us with the power to direct matters, such as the servicing of the mortgage loans, that impact the credit risk to which we are exposed. In contrast, we do not consolidate single-class securitization trusts when other organizations have the power to direct these activities (for example, when the loan collateral is subject to a Federal Housing Administration guaranty and related Servicing Guide). When we purchase single-class Fannie Mae MBS issued from a consolidated trust, we account for the transaction as an extinguishment of the related debt in our consolidated financial statements. We record a gain or loss on the extinguishment of such debt to the extent that the purchase price of the MBS does not equal the carrying value of the related consolidated debt reported in our consolidated balance sheets (including unamortized premiums, discounts or other cost basis adjustments) at the time of purchase. When we sell single-class Fannie Mae MBS that were issued from a consolidated trust, we account for the transaction as the issuance of debt in our consolidated financial statements. We amortize the related premiums, discounts and other cost basis adjustments into income over the contractual life of the MBS. If a single-class securitization trust is not consolidated, we account for the purchase and subsequent sale of such securities as the transfer of an investment security in accordance with the accounting guidance for transfers of financial assets. Single-Class Resecuritization Trusts Fannie Mae single-class resecuritization trusts are created by depositing MBS into a new securitization trust for the purpose of aggregating multiple mortgage-related securities into one combined security. Single-class resecuritization securities pass through directly to the holders of the securities all of the cash flows of the underlying MBS held in the trust. Since June 2019, these securities can be collateralized directly or indirectly by cash flows from underlying securities issued by Fannie Mae, Freddie Mac, or a combination of both. Resecuritization trusts backed directly or indirectly only by Fannie Mae MBS are non-commingled resecuritization trusts. Resecuritization trusts collateralized directly or indirectly by cash flows either in part or in whole from Freddie Mac MBS are commingled resecuritization trusts. Securities issued by our non-commingled single-class resecuritization trusts are backed solely by Fannie Mae MBS, and the guaranty we provide on the trust does not subject us to additional credit risk because we have already provided a guarantee on the underlying securities. Further, the securities issued by our non-commingled single-class resecuritization trusts pass through all of the cash flows of the underlying Fannie Mae MBS directly to the holders of the securities. Accordingly, these securities are deemed to be substantially the same as the underlying Fannie Mae MBS collateral. Additionally, our involvement with these trusts does not provide us with any incremental rights or powers that would enable us to direct any activities of the trusts. We have concluded that we are not the primary beneficiary of and, as a result, we do not consolidate our non-commingled single-class resecuritization trusts. Therefore, we account for purchases and sales of securities issued by non-commingled single-class resecuritization trusts as extinguishments and issuances of the underlying MBS debt, respectively. Securities issued by our commingled single-class resecuritization trusts are backed in whole or in part by Freddie Mac securities. As discussed in “Note 6, Financial Guarantees,” the guaranty we provide to the commingled single-class resecuritization trust subjects us to additional credit risk to the extent that we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. Accordingly, securities issued by our commingled resecuritization trusts are not deemed to be substantially the same as the underlying collateral. We do not have any incremental rights or powers related to commingled single-class resecuritization trusts that would enable us to direct any activities of the underlying trust. As a result, we have concluded that we are not the primary beneficiary of, and therefore do not consolidate, our commingled single-class resecuritization trusts unless we have the unilateral right to dissolve the trust. We have this right when we hold 100% of the beneficial interests issued by the resecuritization trust. Therefore, we account for purchases and sales of these securities as the transfer of an investment security in accordance with the accounting guidance for transfers of financial assets. Multi-Class Resecuritization Trusts Multi-class resecuritization trusts are trusts we create to issue multi-class Fannie Mae structured securities, including REMICs and SMBS, in which the cash flows of the underlying mortgage assets are divided, creating several classes of securities, each of which represents a beneficial ownership interest in a separate portion of cash flows. We guarantee to each multi-class resecuritization trust that we will supplement amounts received by the trusts as required to permit timely guaranty payments on the related Fannie Mae structured securities. Since June 2019, these multi-class structured securities can be collateralized, directly or indirectly, by securities issued by Fannie Mae, Freddie Mac or a combination of both. The guaranty we provide to our non-commingled multi-class resecuritization trusts does not subject us to additional credit risk, because the underlying assets are Fannie Mae-issued securities for which we have already provided a guaranty. However, for commingled multi-class structured securities, we are subject to additional credit risk to the extent we are providing a guaranty for the timely payment of principal and interest on the underlying Freddie Mac securities that we have not previously guaranteed. For both commingled and non-commingled multi-class resecuritization trusts, we may also be exposed to prepayment risk via our ownership of securities issued by these trusts. We do not have the ability via our involvement with a multi-class resecuritization trust to impact either the credit risk or prepayment risk to which we are exposed. Therefore, we have concluded that we do not have the characteristics of a controlling financial interest and do not consolidate multi-class resecuritization trusts unless we have the unilateral right to dissolve the trust as noted below. Securities issued by multi-class resecuritization trusts do not directly pass through all of the cash flows of the underlying securities, and therefore the issued and underlying securities are not considered substantially the same. Accordingly, we account for purchases and sales of securities issued by the multi-class resecuritization trusts as transfers of an investment security in accordance with the accounting guidance for transfers of financial assets. Since June 2019, we may include UMBS, Supers and other structured securities that are either issued or backed by securities issued by Freddie Mac in our resecuritization trusts. As a result, we adopted a consolidation threshold for multi-class resecuritization trusts that is based on our ability to unilaterally dissolve the resecuritization trust. This ability exists only when we hold 100% of the outstanding beneficial interests issued by the resecuritization trust. This change in the consolidation threshold was applied prospectively upon the introduction of UMBS in the second quarter of 2019 and prior-period amounts were not recast. Prior to the introduction of UMBS, we consolidated multi-class resecuritization trusts when we held a substantial portion of the outstanding beneficial interests issued by the trust. Our adoption of the updated consolidation threshold did not have a material impact on our consolidated financial statements. Consolidated VIEs If an entity is a VIE, we consider whether our variable interest in that entity causes us to be the primary beneficiary. The primary beneficiary of the VIE is required to consolidate and account for the assets, liabilities and noncontrolling interests of the VIE in its consolidated financial statements. An enterprise is deemed to be the primary beneficiary when the enterprise has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and exposure to benefits and/or losses could potentially be significant to the entity. In general, the investors in the obligations of consolidated VIEs have recourse only to the assets of those VIEs and do not have recourse to us, except where we provide a guaranty to the VIE. We do not consolidate VIEs when we are not deemed to be the primary beneficiary. Our unconsolidated VIEs include securitization and resecuritization trusts, limited partnerships, and certain SPVs designed to transfer credit risk.
Transfers of Financial Assets	Transfers of Financial Assets We evaluate each transfer of financial assets to determine whether the transfer qualifies as a sale. If a transfer does not meet the criteria for sale treatment, the transferred assets remain in our consolidated balance sheets and we record a liability to the extent of any proceeds received in connection with the transfer. We record transfers of financial assets in which we surrender control of the transferred assets as sales. When a transfer that qualifies as a sale is completed, we derecognize all assets transferred and recognize all assets obtained and liabilities incurred at fair value. The difference between the carrying basis of the assets transferred and the fair value of the net proceeds from the sale is recorded as a component of “Investment gains, net” in our consolidated statements of operations and comprehensive income. Retained interests are primarily derived from transfers associated with our portfolio securitizations in the form of Fannie Mae securities. We separately describe the subsequent accounting, as well as how we determine fair value, for our retained interests in the “Investments in Securities” section of this note. We enter into repurchase agreements that involve contemporaneous trades to purchase and sell securities. These transactions are accounted for as secured financings since the transferor has not relinquished control over the transferred assets. These transactions are reported as securities purchased under agreements to resell and securities sold under agreements to repurchase in our consolidated balance sheets except for securities purchased under agreements to resell on an overnight basis, which are included in cash and cash equivalents in our consolidated balance sheets. We issue Fannie Mae MBS through portfolio securitization transactions by transferring pools of mortgage loans or mortgage-related securities to one or more trusts or special purpose entities. We are considered to be the transferor when we transfer assets from our own retained mortgage portfolio in a portfolio securitization transaction.The substantial majority of these portfolio securitization transactions generally do not qualify for sale treatment. Portfolio securitization trusts that do qualify for sale treatment primarily consist of loans that are guaranteed or insured, in whole or in part, by the U.S. government.We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class and multi-class portfolio securitization trusts.We consolidate the substantial majority of our single-class MBS trusts; therefore, these portfolio securitization transactions do not qualify for sale treatment. The assets and liabilities of consolidated trusts created via portfolio securitization transactions that do not qualify as sales are reported in our consolidated balance sheets.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Statements of Cash Flows	Cash and Cash Equivalents, Restricted 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. “Restricted cash and cash equivalents” in our consolidated balance sheets represents cash advanced to the extent such amounts are due to, but have not yet been remitted to, MBS certificateholders. Similarly, when we or our servicers collect and hold cash that is due to certain Fannie Mae MBS trusts in advance of our requirement to remit these amounts to the trusts, we recognize the collected cash amounts as restricted cash. In addition, we recognize restricted cash when we and our servicers advance payments on delinquent loans to consolidated Fannie Mae MBS trusts. Cash may also be recognized as restricted cash as a result of restrictions related to certain consolidated partnership funds as well as for certain collateral arrangements for which we do not have the right to use the cash. Fannie Mae, in its role as trustee, invests funds held by consolidated trusts directly in eligible short-term third-party investments, which may include investments in cash equivalents that are composed of overnight repurchase agreements and U.S. Treasuries that have a maturity at the date of acquisition of three months or less. The funds underlying these short-term investments are restricted per the trust agreements. In the presentation of our consolidated statements of cash flows, we present cash flows from derivatives that do not contain financing elements and mortgage loans held for sale at acquisition as operating activities. We present cash flows from securities purchased under agreements to resell or similar arrangements as investing activities. Cash flows from securities sold under agreements to repurchase are presented as financing activities in “Other, net.” We classify cash flows from trading securities based on their nature and purpose. We classify cash flows related to mortgage loans acquired as held-for-investment, including loans of Fannie Mae and loans of consolidated trusts, as either investing activities (for principal repayments or sales proceeds) or operating activities (for interest received from borrowers included as a component of our net income). Cash flows related to debt securities issued by consolidated trusts are classified as either financing activities (for repayments of principal to certificateholders) or operating activities (for interest payments to certificateholders included as a component of our net income). We distinguish between the payments and proceeds related to the debt of Fannie Mae and the debt of consolidated trusts, as applicable. We present our non-cash activities in the consolidated statements of cash flows at the associated unpaid principal balance.
Investments in Securities	Investments in Securities Securities Classified as Trading or Available-for-Sale We classify and account for our securities as either trading or available-for-sale (“AFS”). We measure trading securities at fair value in our consolidated balance sheets with unrealized and realized gains and losses included as a component of “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. We include interest and dividends on securities in our consolidated statements of operations and comprehensive income. Interest income includes the amortization of cost basis adjustments, including premiums and discounts, recognized as a yield adjustment using the interest method over the contractual term of the security. We measure AFS securities at fair value in our consolidated balance sheets, with unrealized gains and losses included in accumulated other comprehensive income, net of 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. Fannie Mae MBS included in “Investments in securities” When we own Fannie Mae MBS issued by unconsolidated trusts, we do not derecognize any components of the guaranty assets, guaranty obligations, or any other outstanding recorded amounts associated with the guaranty transaction because our contractual obligation to the MBS trust remains in force until the trust is liquidated. We determine the fair value of Fannie Mae MBS based on observable market prices because most Fannie Mae MBS are actively traded. For any subsequent purchase or sale, we continue to account for any outstanding recorded amounts associated with the guaranty transaction on the same basis of accounting. Impairment of Available-for-Sale Debt Securities An AFS debt security is impaired if the fair value of the investment is less than its amortized cost basis. In these circumstances, we separate the difference between the amortized cost basis of the security and its fair value into the amount representing the credit loss, which we recognize as an allowance in “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income, and the amount related to all other factors, which we recognize in “Total other comprehensive loss,” net of taxes, in our consolidated statements of operations and comprehensive income. Credit losses are evaluated on an individual security basis and are limited to the difference between the fair value of the debt security and its amortized cost basis. If we intend to sell a debt security or it is more likely than not that we will be required to sell the debt security before recovery, any allowance for credit losses on the debt security is reversed and the amortized cost basis of the debt security is written down to its fair value through “Investment gains, net.” Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. Available-for-Sale Securities We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive loss” and we recognize realized gains and losses from the sale of AFS securities in “Investment gains, net” in our consolidated statements of operations and comprehensive income. We define the amortized cost basis of our AFS securities as unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments. Pursuant to the CECL standard, we record an allowance for credit losses for AFS securities that reflects the impairment for credit losses, which are limited to the amount that fair value is less than the amortized cost. Impairment due to non-credit losses are recorded as unrealized losses within “Other comprehensive loss.”
Loans Held for Sale	Loans Held for Sale When we acquire mortgage loans that we intend to sell or securitize via trusts that will not be consolidated, we classify the loans as held for sale (“HFS”). We report the carrying value of HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “Investment gains, net” in our consolidated statements of operations and comprehensive income. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchased premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. For nonperforming loans transferred from held for investment (“HFI”) to HFS, based upon a change in our intent, we record the loans at the lower of cost or fair value on the date of transfer. When the fair value of the nonperforming loan is less than its amortized cost, we record a write-off against the allowance for loan losses in an amount equal to the difference between the amortized cost basis and the fair value of the loan. If the amount written off upon transfer exceeds the allowance related to the transferred loan, we record the excess in provision for credit losses, whereas if the amounts written off are less than the allowance related to the loans, we recognize a benefit for credit losses. Nonperforming loans include both seriously delinquent and reperforming loans, which are loans that were previously delinquent but are performing again because payments on the mortgage loan have become current with or without the use of a loan modification plan. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due. In the event that we reclassify a performing loan from HFI to HFS, based upon a change in our intent, the allowance for loan losses previously recorded on the HFI mortgage loan is reversed through “Benefit (provision) for credit losses” at the time of reclassification. The mortgage loan is reclassified into HFS at its amortized cost basis and a valuation allowance is established to the extent that the amortized cost basis of the loan exceeds its fair value. The initial recognition of the valuation allowance and any subsequent changes are recorded as a gain or loss in “Investment gains, net.”We report the carrying value of HFS loans at the lower of cost or fair value and record valuation changes in “Investment gains, net” in our consolidated statements of operations and comprehensive income.
Loans Held for Investment	Loans Held for Investment When we acquire mortgage loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. When we consolidate a securitization trust, we recognize the loans underlying the trust in our consolidated balance sheets. The trusts do not have the ability to sell mortgage loans and the use of such loans is limited exclusively to the settlement of obligations of the trusts. Therefore, mortgage loans acquired when we have the intent to securitize via consolidated trusts are generally classified as HFI in our consolidated balance sheets both prior to and subsequent to their securitization. We report the carrying value of HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and allowance for loan losses. We define the amortized cost of HFI loans as unpaid principal balance and accrued interest receivable, net, including any unamortized premiums, discounts, and other cost basis adjustments. For purposes of our consolidated balance sheets, we present accrued interest receivable separately from the amortized cost of our loans held for investment. We recognize interest income on HFI loans on an accrual basis using the effective yield method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. We report the amortized cost of HFI loans for which we have not elected the fair value option at the unpaid principal balance, net of unamortized premiums and discounts, hedge-related basis adjustments, other cost basis adjustments, and accrued interest receivable, net. For purposes of our consolidated balance sheets, we present accrued interest receivable, net separately from the amortized cost of our loans held for investment.
Nonaccrual Loans	Nonaccrual Loans For loans not subject to the COVID-19-related nonaccrual policy described below, we discontinue accruing interest when we believe collectability of principal and interest is not reasonably assured, which for a single-family loan we have determined, based on our historical experience, to be when the loan becomes two months or more past due according to its contractual terms. Interest previously accrued but not collected on such loans is reversed through interest income at the date the loan is placed on nonaccrual status. For single-family loans on nonaccrual status, we recognize income when cash payments are received. We return a non-modified single-family loan to accrual status at the point when the borrower brings the loan current. We return a modified single-family loan to accrual status at the point when the borrower has successfully made all required payments during the trial period (generally three to four months) and the modification is made permanent. We place a multifamily loan on nonaccrual status when the loan becomes two months or more past due according to its contractual terms unless the loan is well secured such that collectability of principal and accrued interest is reasonably assured. For multifamily loans on nonaccrual status, we apply any payment received on a cost recovery basis to reduce principal on the mortgage loan. We return a multifamily loan to accrual status when the borrower cures the delinquency of the loan. Single-family and multifamily loans are reported past due if a full payment of principal and interest is not received within one month of its due date. For loans negatively impacted by the COVID-19 pandemic, we continue to recognize interest income for up to six months of delinquency provided that the loan was either current as of March 1, 2020 or originated after March 1, 2020. For single-family loans, we continue to accrue interest income beyond six months of delinquency provided that the collection of principal and interest continues to be reasonably assured. Multifamily loans that are in a forbearance arrangement are placed on nonaccrual status when the borrower is six months past due unless the loan is both well secured and in the process of collection. Single-family and multifamily loans on nonaccrual status that have been placed in a repayment plan or that have been brought current through a modification or a payment deferral are returned to accrual status once the borrower has made six consecutive contractual payments under the terms of the repayment plan or the modified loan. For loans in a forbearance arrangement that are placed on nonaccrual status, cash payments for interest are applied as a reduction of accrued interest receivable until the receivable has been reduced to zero, and then recognized as interest income. If interest is capitalized pursuant to a loan modification, any capitalized interest that had not been previously recognized as interest income is recorded as a discount to the loan and amortized over the life of the loan. For loans that have been negatively impacted by COVID-19, we establish a valuation allowance for expected credit losses on the accrued interest receivable balance applying the process that we have established for both single-family and multifamily loans. The credit expense related to this valuation allowance is classified as a component of the provision for credit losses. Accrued interest receivable is written off when the amount is deemed to be uncollectible, in accordance with our write-off policy for mortgage loans. Loans that are in active forbearance plans are not evaluated for write-off. For loans not subject to the COVID-19 related guidance, we have elected not to measure an allowance for credit losses on accrued interest receivable balances as we have a nonaccrual policy to ensure the timely reversal of unpaid accrued interest. See “Note 4, Allowance for Loan Losses” for additional information about our current-period provision for loan losses, including a discussion of the estimates used in measuring the impact of the COVID-19 pandemic on our allowance.
Restructuring Loans	Restructured Loans A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulty is considered a troubled debt restructuring (“TDR”). Our loss mitigation programs primarily include modifications that result in the capitalization of past due amounts in combination with interest rate reductions and/or the extension of the loan’s maturity date. Such restructurings are granted to borrowers in financial difficulty on either a permanent or contingent basis, as in the case of modifications with a trial period. We consider these types of loan restructurings to be TDRs. We generally do not include principal or past due interest forgiveness as part of our loss mitigation programs, and, as a result, we generally do not charge off any outstanding principal or accrued interest amounts at the time of loan modification. We believe that the loan underwriting activities we perform as a part of our loan modification process coupled with the borrower’s successful performance during any required trial period provides us reasonable assurance regarding the collectability of the principal and interest due in accordance with the loan’s modified terms, which include any past due interest amounts that are capitalized as principal at the time of modification. As such, the loan is returned to accrual status when the loan modification is completed (i.e., at the end of the trial period), and we accrue interest thereafter in accordance with our interest accrual policy. If the loan was on nonaccrual status prior to entering the trial period, it remains on nonaccrual status until the borrower demonstrates performance via the trial period and the modification is finalized. We also engage in other loss mitigation activities with troubled borrowers, which include repayment plans, forbearance arrangements, and modifications that are limited to the capitalization of past due amounts (i.e., payment deferrals). For all of these activities, we consider the deferral or capitalization of three or fewer missed payments to represent only an insignificant delay, and thus not a TDR. If we defer or capitalize more than three missed payments either through a legal or informal modification, the delay is no longer considered insignificant, and the restructuring is accounted for as a TDR. Our current TDR accounting described herein is temporarily impacted by our election to account for certain eligible loss mitigation activities under the relief granted pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) as described below. We measure impairment of a loan restructured in a TDR based on the excess of the amortized cost in the loan over the present value of the expected future cash inflows discounted at the loan’s original effective interest rate. Costs incurred to complete a TDR are expensed as incurred. However, when foreclosure is probable, we measure impairment based on the difference between our amortized cost in the loan and the fair value of the underlying property, adjusted for the estimated costs to sell the property and estimated insurance or other proceeds we expect to receive. TDR Accounting and Disclosure Relief Pursuant to the CARES Act The Coronavirus Aid, Relief, and Economic Security Act, referred to as the CARES Act, which was enacted in March 2020, provides temporary relief from the accounting and reporting requirements for TDRs regarding certain loan modifications related to COVID-19. In December of 2020, the temporary relief provided by the CARES Act was extended pursuant to the Consolidated Appropriations Act of 2021. The CARES Act as extended provides that a financial institution may elect to suspend the TDR requirements under GAAP for loan modifications related to the COVID-19 pandemic that occur between March 1, 2020 through the earlier of January 1, 2022 or 60 days after the date on which the COVID-19 national emergency terminates (the “Applicable Period”), as long as the loan was not more than 30 days delinquent as of December 31, 2019. Loan modifications as defined by the CARES Act include forbearance arrangements, repayment plans, interest rate modifications and any similar arrangements that defer or delay the payment of principal or interest. We have elected to account for eligible loan modifications under the TDR relief provided by the CARES Act. Therefore, the initial relief (i.e., the forbearance arrangement) and the subsequent agreements (i.e., repayment plans, payment deferrals and loan modifications) that are necessary to allow the borrower to repay the past due amounts (collectively, the “COVID-19 Relief”), will not be subject to the specialized accounting or disclosures that are required for TDRs if the initial relief related to COVID-19 is granted during the Applicable Period and the borrower was no more than 30 days past due as of December 31, 2019. Troubled Debt RestructuringsA modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. In addition to formal loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify loans to certain borrowers who have received bankruptcy relief as TDRs. However, our current TDR accounting described herein is temporarily impacted by our election to account for certain eligible loss mitigation activities under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021.
Allowance for Loan Losses	Allowance for Loan Losses The Current Expected Credit Loss Standard The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” in June 2016, which was later amended by ASU 2019-04, ASU 2019-05 and ASU 2019-11. These ASUs (the “CECL standard”) replaced the incurred loss impairment methodology for loans that are collectively evaluated for impairment with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable forecast information to develop a lifetime credit loss estimate. The CECL standard also requires credit losses related to AFS debt securities to be recorded through an allowance for credit losses. Our adoption of this standard on January 1, 2020 did not have a material impact on our portfolio of AFS debt securities. The CECL standard became effective for our fiscal year beginning January 1, 2020. We changed our accounting policies as described below and implemented system, model and process changes to adopt the standard. Upon adoption, we used a discounted cash flow method to measure expected credit losses on our single-family mortgage loans and an undiscounted loss method to measure expected credit losses on our multifamily mortgage loans. The models used to estimate credit losses incorporate our historical credit loss experience, adjusted for current economic forecasts and the current credit profile of our loan book of business. For single-family, the model uses reasonable and supportable forecasts for key economic drivers, such as home prices as well as a range of possible future interest rate environments, which drive prepayment speeds and impact the measurement of the interest-rate concession provided on modified loans. For multifamily, the model uses forecasted rental income and property valuations. Allowance for Loan Losses Our allowance for loan losses is a valuation account that is deducted from the amortized cost basis of HFI loans to present the net amount expected to be collected on the loans. The allowance for loan losses reflects an estimate of expected credit losses on single-family and multifamily HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts. Estimates of credit losses are based on expected cash flows derived from internal models that estimate loan performance under simulated ranges of economic environments. Our modeled loan performance is based on our historical experience of loans with similar risk characteristics, adjusted to reflect current conditions and reasonable and supportable forecasts. Our historical loss experience and our credit loss estimates capture the possibility of remote events that could result in credit losses on loans that are considered low risk. The allowance for loan losses does not consider benefits from freestanding credit enhancements, such as our CAS and CIRT programs and multifamily DUS lender risk-sharing arrangements, which are recorded in “Other assets” in our consolidated balance sheets. Changes to our estimate of expected credit losses, including changes due to the passage of time, are recorded through the benefit (provision) for credit losses. When calculating our allowance for loan losses, we consider only our amortized cost in the loans at the balance sheet date. We record write-offs as a reduction to the allowance for loan losses when losses are confirmed through the receipt of assets in satisfaction of a loan, such as the underlying collateral upon foreclosure or cash upon completion of a short sale. Additionally, we record write-offs as a reduction to our allowance for loan losses when a loan is determined to be uncollectible and upon the transfer of a nonperforming loan from HFI to HFS. The excess of a loan’s unpaid principal balance, accrued interest and any applicable cost basis adjustments (“our total exposure”) over the fair value of the assets is treated as a write-off loss that is deducted from the allowance for loan losses. We include expected recoveries of amounts previously written off and expected to be written off in determining our allowance for loan losses. The estimated mark-to-market LTV ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower’s equity in the home decreases, which may negatively affect the borrower’s ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan.We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option. When calculating our allowance for loan losses, we consider the unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date. We record write-offs as a reduction to our allowance for loan losses at the point of foreclosure, completion of a short sale, upon the redesignation of nonperforming and reperforming loans from HFI to HFS or when a loan is determined to be uncollectible. Our benefit or provision for loan losses can vary substantially from period to period based on a number of factors, such as changes in actual and forecasted home prices or property valuations, fluctuations in actual and forecasted interest rates, borrower payment behavior, events such as natural disasters or pandemics, the type, volume and effectiveness of our loss mitigation activities, including forbearances and loan modifications, the volume of foreclosures completed, and the redesignation of loans from HFI to HFS. Our benefit or provision can also be impacted by updates to the models, assumptions, and data used in determining our allowance for loan losses. As described below, our benefit or provision for loan losses and our loss reserves have been significantly affected by our estimates of the impact of the COVID-19 pandemic and the pace and strength of the economy’s subsequent recovery, which require significant management judgment.
Impaired Financing Receivable	Single-Family Loans We estimate the amount expected to be collected on our single-family loans using a discounted cash flow approach. Our allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the present value of expected cash flows on the loan. Expected cash flows include payments from the borrower, net of servicing fees, contractually attached credit enhancements and proceeds from the sale of the underlying collateral, net of selling costs. When foreclosure of a single-family loan is probable, the allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the fair value of the collateral as of the reporting date, adjusted for the estimated costs to sell the property and the amount of expected recoveries from contractually attached credit enhancements or other proceeds we expect to receive. Expected cash flows are developed using internal models that capture market and loan characteristic inputs. Market inputs include information such as actual and forecasted home prices, interest rates, volatility and spreads, while loan characteristic inputs include information such as mark-to-market loan-to-value (“LTV”) ratios, delinquency status, geography and borrower FICO credit scores. The model assigns a probability to borrower events including contractual payment, loan payoff and default under various economic environments based on historical data, current conditions and reasonable and supportable forecasts. The two primary drivers of our forecasted economic environments are interest rates and home prices. Our model projects the range of possible interest rate scenarios over the life of the loan based on actual interest rates and observed option pricing volatility in the capital markets. We develop regional forecasts based on Metropolitan Statistical Area data for single-family home prices using a multi-path simulation that captures home price projections over a five-year period, the period for which we can develop reasonable and supportable forecasts. After the five-year period, the home price forecast reverts to a historical long-term growth rate. Expected cash flows on the loan are discounted at the effective interest rate on the loan, adjusted for expected prepayments. For single-family loans that have not been modified in a TDR, the discount rate is updated each reporting period to reflect changes in expected prepayments. Expected cash flows do not include expected extensions of the contractual term unless such extension is the result of a reasonably expected TDR. We consider the effects of actual and reasonably expected TDRs in our estimate of credit losses. These effects include any economic concession provided or expected to be provided to a borrower experiencing financial difficulty. We consider our current servicing practices and our historical experience to estimate reasonably expected TDRs. When a loan is contractually modified in a TDR, to capture the concession, the discount rate on the loan is locked to the rate in effect just prior to the modification and is no longer updated for changes in expected prepayments. Multifamily Loans Our allowance for loan losses on multifamily loans is calculated based on estimated probabilities of default and loss severities to derive expected loss ratios, which are then applied to the amortized cost basis of the loans. Our probabilities of default and severity are estimated using internal models based on historical loss experience of loans with similar risk characteristics that affect credit performance, such as debt service coverage ratio (“DSCR”), mark-to-market LTV ratio, collateral type, age, loan size, geography, prepayment penalty term and note type. Our models simulate a range of possible future economic scenarios, which are used to estimate probabilities of default and loss severities. Key inputs to our models include rental income, which drives expected DSCRs for our loans, and property values. Our reasonable and supportable forecasts for multifamily rental income and property values, which are projected based on Metropolitan Statistical Area data, extend through the contractual maturity of the loans. For TDRs, we use a discounted cash flow approach to estimate expected credit losses. When foreclosure of a multifamily loan is probable, the allowance for loan losses is calculated as the difference between the amortized cost basis of the loan and the fair value of the collateral as of the reporting date, adjusted for the estimated costs to sell the property. Measurement of Credit Losses Prior to the Adoption of the CECL Standard For periods prior to the adoption of the CECL standard, we recognized credit losses for loans that were collectively evaluated for impairment based on an incurred-loss approach, which limited our measurement of credit losses to credit events that were estimated to have already occurred. Under this approach, credit losses were calculated to represent probable losses on loans classified as held for investment, including both loans held in our portfolio and loans held in consolidated Fannie Mae MBS trusts. Loan losses on individually impaired loans including loans that were restructured as TDRs were determined based on the present value of lifetime expected cash flows. Lifetime expected cash flows were discounted at the effective interest rate of the original loan or the effective interest rate at acquisition for an acquired credit-impaired loan to determine the present value of the loan. However, when foreclosure was probable on an individually impaired loan, credit losses were determined based on the fair value of the underlying property, adjusted for the estimated discounted costs to sell the property and estimated insurance or other proceeds we expected to receive. For single-family loans that were collectively evaluated for impairment, we recognized credit losses using a model that estimated the probability of default and severity of losses on loans with similar risk characteristics given multiple factors, such as origination year, mark-to-market LTV ratio, delinquency status and loan product type. Loss severity estimates reflected current available information on actual events and conditions that had already occurred, including current home prices. Our loss severity estimates did not incorporate assumptions about future changes in home prices. We did, however, use recent regional historical sales and appraisal information, including the sales of our own foreclosed properties, to develop our loss severity estimates for all loan categories. For all multifamily loans that were collectively evaluated for impairment, we estimated credit losses using an internal model that applied loss factors to loans in similar risk categories. Our loss factors were developed based on our historical default and loss severity experience. Management could also apply judgment to adjust the loss factors derived from our models, taking into consideration model imprecision and specific known events, such as current credit conditions, that could affect the credit quality of our multifamily loan portfolio but were not yet reflected in our model-generated loss factors. For individually impaired multifamily loans, we determined credit losses based on the fair value of the underlying property less the estimated discounted costs to sell the property and any lender loss sharing or other proceeds we expected to receive. However, when an individually impaired loan had been modified through a TDR and foreclosure of the loan was not probable, we determined credit losses based on the present value of expected cash flows discounted at the loan’s original interest rate. We identified multifamily loans for evaluation for impairment through a credit risk assessment process. As part of this assessment process, we stratified multifamily loans into different internal risk categories based on the credit risk inherent in each individual loan and management judgment. We categorized loan credit risk, taking into consideration available operating statements and expected cash flows from the underlying property, the estimated value of the property, the historical loan payment experience and current relevant market conditions that could impact credit quality.
Advances to 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 lenders. 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 We recognize foreclosed property (i.e., “Acquired property, net”) upon the earlier of the loan foreclosure event or when we take physical possession of the property (i.e., through a deed-in-lieu of foreclosure transaction). We initially measure foreclosed property at its fair value less its estimated costs to sell. We treat any excess of our amortized cost in the loan over the fair value less estimated costs to sell the property as a write-off to the “Allowance for loan losses” in our consolidated balance sheets. Any excess of the fair value less estimated costs to sell the property over our amortized cost in the loan is recognized first to recover any previously written-off amounts, then to recover any forgone, contractually due interest, and lastly to “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. We classify foreclosed properties as HFS when we intend to sell the property and the following conditions are met at either acquisition or within a relatively short period thereafter: we are actively marketing the property and it is available for immediate sale in its current condition such that the sale is reasonably expected to take place within one year. We report these properties at the lower of their carrying amount or fair value less estimated selling costs. We do not depreciate these properties. We recognize a loss for any subsequent write-down of the property to its fair value less its estimated costs to sell through a valuation allowance with an offsetting charge to “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. We recognize a recovery for any subsequent increase in fair value less estimated costs to sell up to the cumulative loss previously recognized through the valuation allowance. We recognize gains or losses on sales of foreclosed property through “Foreclosed property expense” in our consolidated statements of operations and comprehensive income. Properties that do not meet the criteria to be classified as HFS are classified as held for use and are recorded in “Other assets” in our consolidated balance sheets. These properties are depreciated and are evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. When an insured loan held in our retained mortgage portfolio subsequently goes into foreclosure, we charge off the loan, eliminating any previously-recorded loss reserves, and record REO and a mortgage insurance receivable for the claim proceeds deemed probable of recovery, as appropriate. However, if a mortgage insurer rescinds, cancels or denies insurance coverage, the initial receivable becomes due from the mortgage seller or servicer.
Commitments to Purchase and Sell Mortgage Loans and Securities	Commitments to Purchase and Sell Mortgage Loans and Securities We enter into commitments to purchase and sell mortgage-backed securities and to purchase single-family and multifamily mortgage loans. Certain commitments to purchase or sell mortgage-backed securities and to purchase single-family mortgage loans are accounted for as derivatives. Our commitments to purchase multifamily loans are not accounted for as derivatives because they do not meet the criteria for net settlement. When derivative purchase commitments settle, we include the fair value on the settlement date in the cost basis of the loan or unconsolidated security we purchase. When derivative commitments to sell securities settle, we include the fair value of the commitment on the settlement date in the cost basis of the security we sell. Purchases and sales of securities issued by our consolidated MBS trusts are treated as extinguishments or issuances of debt, respectively. For commitments to purchase and sell securities issued by our consolidated MBS trusts, we recognize the fair value of the commitment on the settlement date as a component of debt extinguishment gains and losses or in the cost basis of the debt issued, respectively. Regular-way securities trades provide for delivery of securities within the time generally established by regulations or conventions in the market in which the trade occurs and are exempt from application of derivative accounting. Commitments to purchase or sell securities that we account for on a trade-date basis are also exempt from the derivative accounting requirements. We record the purchase and sale of an existing security on its trade date when the commitment to purchase or sell the existing security settles within the period of time that is customary in the market in which those trades take place. Additionally, contracts for the forward purchase or sale of when-issued and to-be-announced (“TBA”) securities are exempt from the derivative accounting requirements if there is no other way to purchase or sell that security, delivery of that security and settlement will occur within the shortest period possible for that type of security and it is probable at inception and throughout the term of the individual contract that physical delivery of the security will occur. Since our commitments for the purchase of when-issued and TBA securities can be net settled and we do not document that physical settlement is probable, we account for all such commitments as derivatives. 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.
Derivative Instruments	Derivative Instruments We recognize our derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade date basis. Changes in fair value and interest accruals on derivatives not in qualifying fair value hedging relationships are recorded as “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income. We offset the carrying amounts of certain derivatives that are in gain positions and loss positions as well as cash collateral receivables and payables associated with derivative positions pursuant to the terms of enforceable master netting arrangements. We offset these amounts only when we have the legal right to offset under the contract and we have met all the offsetting conditions. For our over-the-counter (“OTC”) derivative positions, our master netting arrangements allow us to net derivative assets and liabilities with the same counterparty. For our cleared derivative contracts, our master netting arrangements allow us to net our exposure by clearing organization and by clearing member. After offsetting, we report derivatives in a gain position in “Other assets” and derivatives in a loss position in “Other liabilities” in our consolidated balance sheets. We 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 whether: (1) the economic characteristics of the embedded derivative are not clearly and closely related to the economic characteristics of the financial instrument or other contract (i.e., the host contract); (2) the financial instrument or other contract itself is not already measured at fair value with changes in fair value included in earnings; and (3) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. If the embedded derivative meets all three of these conditions, we elect to carry the hybrid contract in its entirety at fair value with changes in fair value recorded in earnings. Fair Value Hedge Accounting In January 2021, to reduce earnings volatility related to changes in benchmark interest rates, we began applying fair value hedge accounting to certain pools of single-family mortgage loans and certain issuances of our funding debt by designating such instruments as the hedged item in hedging relationships with interest-rate swaps. In these relationships, we have designated the change in the benchmark interest rate, either the London Inter-bank Offered Rate (“LIBOR”) or Secured Overnight Financing Rate (“SOFR”), as the risk being hedged. We have elected to use the last-of-layer method to hedge certain pools of single-family mortgage loans. This election involves establishing fair value hedging relationships on the portion of each loan pool that is not expected to be affected by prepayments, defaults and other events that affect the timing and amount of cash flows. The term of each hedging relationship is generally one business day and we establish hedging relationships daily to align our hedge accounting with our risk management practices. We apply hedge accounting to qualifying hedging relationships. A qualifying hedging relationship exists when changes in the fair value of a derivative hedging instrument are expected to be highly effective in offsetting changes in the fair value of the hedged item attributable to the risk being hedged during the term of the hedging relationship. We assess hedge effectiveness using statistical regression analysis. A hedging relationship is considered highly effective if the total change in fair value of the hedging instrument and the change in the fair value of the hedged item due to changes in the benchmark interest rate offset each other within a range of 80% to 125% and certain other statistical tests are met. If a hedging relationship qualifies for hedge accounting, the change in the fair value of the interest-rate swaps and the change in the fair value of the hedged item for the risk being hedged are recorded through net interest income. A corresponding basis adjustment is recorded against the hedged item, either the pool of mortgage loans or the debt, for the changes in the fair value attributable to the risk being hedged. For hedging relationships that hedge pools of single-family mortgage loans, basis adjustments are allocated to individual single-family loans based on the relative unpaid principal balance of each loan at the termination of the hedging relationship. The cumulative basis adjustments on the hedged item are amortized into earnings using the effective interest method over the contractual life of the hedged item, with amortization beginning upon termination of the hedging relationship. All changes in fair value of the designated portion of the derivative hedging instrument (i.e., interest-rate swap), including interest accruals, are recorded in the same line item in the consolidated statements of operations and comprehensive income used to record the earnings effect of the hedged item. Therefore, changes in the fair value of the hedged mortgage loans and debt attributable to the risk being hedged are recognized in “Interest income” or “Interest expense,” respectively, along with the changes in the fair value of the respective derivative hedging instruments. The recognition of basis adjustments on the hedged item and the subsequent amortization are noncash activities and are removed from net income to derive the “Net cash provided by (used in) operating activities” in our consolidated statement of cash flows. Cash paid or received on designated derivative instruments during a hedging relationship is reported as “Net cash provided by (used in) operating activities” in the consolidated statement of cash flows. We recognize all derivatives as either assets or liabilities in our consolidated balance sheets at their fair value on a trade-date basis. Fair value amounts, which are (1) netted to the extent a legal right of offset exists and is enforceable by law at the counterparty level and (2) inclusive of the right or obligation associated with the cash collateral posted or received, are recorded in “Other assets” or “Other liabilities” in our consolidated balance sheets.We present cash flows from derivatives as operating activities in our consolidated statements of cash flows. We record all gains and losses, including accrued interest, on derivatives while they are not in a qualifying hedging relationship in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income.
Collateral	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 and cash equivalents” in our consolidated balance sheets. We net our obligation to return cash collateral pledged to us against the fair value of derivatives in a gain position recorded in “Other assets” in our consolidated balance sheets as part of our counterparty netting calculation. For derivative positions with the same counterparty under master netting arrangements where we pledge cash collateral, we remove it from “Cash and cash equivalents” and net the right to receive it against the fair value of derivatives in a loss position recorded in “Other liabilities” in our consolidated balance sheets as a part of our counterparty netting calculation. Non-Cash Collateral We classify securities pledged to counterparties as either “Investments in securities” or “Cash and cash equivalents” in our consolidated balance sheets. Securities pledged to counterparties that have been consolidated with the underlying assets recognized as loans are included as “Mortgage loans” in our consolidated balance sheets. Our liability to third party holders of Fannie Mae MBS that arises as the result of a consolidation of a securitization trust is collateralized by the underlying loans and/or mortgage-related securities.
Debt	Debt Our consolidated balance sheets contain debt of Fannie Mae as well as debt of consolidated trusts. We report debt issued by us as “Debt of Fannie Mae” and by consolidated trusts as “Debt of consolidated trusts.” Debt issued by us represents debt that we issue to third parties to fund our general business activities and certain credit risk-sharing securities. The debt of consolidated trusts represents the amount of Fannie Mae MBS issued from such trusts that is held by third-party certificateholders and prepayable without penalty at any time. We report deferred items, including premiums, discounts and other cost basis adjustments, as adjustments to the related debt balances in our consolidated balance sheets. 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 consolidated balance sheet (including unamortized premiums, discounts and other cost basis adjustments) at the time of purchase as a component of “Other expenses, net” in our consolidated statements of operations and comprehensive income.
Interest Expense	We classify interest expense as either short-term or long-term based on the contractual maturity of the related debt. We recognize the amortization of premiums, discounts and other cost basis adjustments through interest expense using the effective interest method usually over the contractual term of the debt. Amortization of premiums, discounts and other cost basis adjustments begins at the time of debt issuance.
Income Taxes	Income Taxes We recognize deferred tax assets and liabilities based on the differences in the book and tax bases of assets and liabilities. We measure deferred tax assets and liabilities using enacted tax rates that are applicable to the period(s) that the differences are expected to reverse. We adjust deferred tax assets and liabilities for the effects of changes in tax laws and rates in the period of enactment. We recognize investment and other tax credits through our effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. We invest in LIHTC projects and elect the proportional amortization method for the associated tax credits. We amortize the cost of a LIHTC investment each reporting period in proportion to the tax credits and other tax benefits received. We recognize the resulting amortization as a component of the “provision for federal income taxes” in our consolidated statements of operations and comprehensive income. 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 (a probability of greater than 50%) that we will not realize some portion, or all, of the deferred tax asset.We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, to the extent it exists, including: •the sustainability of recent profitability required to realize the deferred tax assets; •the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years; •unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years; and •the funding available to us under the senior preferred stock purchase agreement.
Income Tax Uncertainties	We account for uncertain tax positions using a two-step approach whereby we recognize an income tax benefit if, based on the technical merits of a tax position, it is more likely than not that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then measure the recognized tax benefit based on the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. We recognize interest expense and penalties on unrecognized tax benefits as “Other expenses, net” in our consolidated statements of operations and comprehensive income.
Earnings per Share	Earnings per ShareEarnings per share (“EPS”) is presented for basic and diluted EPS. We compute basic EPS by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. However, as a result of our conservatorship status and the terms of the senior preferred stock, no amounts would be available to distribute as dividends to common or preferred stockholders (other than to Treasury as the holder of the senior preferred stock). Net income attributable to common stockholders excludes amounts attributable to the senior preferred stock, which increase the liquidation preference as described above in “Senior Preferred Stock Purchase Agreement, Senior Preferred Stock and Warrant.”The calculation of diluted EPS includes all the components of basic earnings per share, plus the dilutive effect of common stock equivalents such as convertible securities and stock options. Weighted-average shares outstanding is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.
New Accounting Guidance	New Accounting Guidance Adoption of the CECL Standard As described above, the CECL standard became effective for our fiscal year beginning January 1, 2020. The adoption of the standard on January 1, 2020 reduced our retained earnings by $1.1 billion on an after-tax basis. The adoption of this guidance increased our overall credit loss reserves primarily as the result of an increase in our single-family loan loss reserves that were previously evaluated on a collective basis for impairment. This increase was partially offset by a decrease in estimated credit losses on loans that were previously considered individually impaired (our TDRs). The increase in our single-family and multifamily loan loss reserves that were previously evaluated on a collective basis was primarily driven by the migration from an incurred-loss approach, which allowed us to consider only default events and economic conditions that already existed as of each financial reporting date, to an estimate that incorporates both expected default events over the expected life of each mortgage loan and a forecast of key inputs, such as home price (single-family) or rental income (multifamily), in different economic environments over a reasonable and supportable period. The increase in loss reserves for the single-family portion of our book was low relative to its size due to the credit quality of these loans and because, as of the date of adoption, our model forecasted home price growth. The allowance for loan losses on the TDR book was already measured using an expected lifetime credit loss estimate. The credit losses on this portion of our single-family book decreased upon the adoption of the CECL standard because the new guidance required us to exclude from our estimate of credit losses all pre-foreclosure and post-foreclosure costs that are expected to be advanced after the balance sheet date. Prior to the adoption of the CECL standard, we incorporated these costs in our estimate of credit losses for this book. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The FASB subsequently clarified the scope of this guidance with the issuance of ASU 2021-01: Reference Rate Reform (Topic 848): Scope in January 2021. These accounting standard updates provide optional practical expedients and exceptions to current accounting guidance when financial instruments, hedge accounting relationships and other contractual arrangements are amended as part of reference rate reform. The primary objective of these standards is to ease the administrative burden of accounting for contracts while transitioning to an alternative reference rate. Fannie Mae has elected to apply certain of the practical expedients related to modifications of financial instrument contracts and modifications to the rate used for discounting, margining and contract price alignment of certain derivative instruments. The adoption of these standards and the election of these practical expedients did not have a material impact on our financial statements.
Financial Guarantees	We recognize a guaranty obligation for our obligation to stand ready to perform on our guarantees to unconsolidated trusts and other guaranty arrangements. These off-balance sheet guarantees expose us to credit losses primarily relating to the unpaid principal balance of our unconsolidated Fannie Mae MBS and other financial guarantees.With our adoption of the CECL standard on January 1, 2020, we measure our guaranty reserve for estimated credit losses for off-balance sheet exposures over the contractual period for which they are exposed to the credit risk, unless that obligation is unconditionally cancellable by the issuer.
Derivatives, Hedging	Pursuant to this program, we may designate certain interest-rate swaps as hedging instruments in hedges of the change in fair value attributable to the designated benchmark interest rate for certain closed pools of fixed-rate, single-family mortgage loans or our funding debt. For hedged items in qualifying fair value hedging relationships, changes in fair value attributable to the designated risk are recognized as a basis adjustment to the hedged item. We also report changes in the fair value of the derivative hedging instrument in the same consolidated statements of operations and comprehensive income line item used to recognize the earnings effect of the hedged item’s basis adjustment.
Derivatives, Offsetting	Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our consolidated balance sheets.We determine our rights to offset the assets and liabilities presented above with the same counterparty, including collateral posted or received, based on the contractual arrangements entered into with our individual counterparties and various rules and regulations that would govern the insolvency of a derivative counterparty.
Fair Value Measurements	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. In our consolidated balance sheets certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment). Fair Value Option We elect the fair value option for loans and debt that contain embedded derivatives that would otherwise require bifurcation. Additionally, we elected the fair value option for our credit risk-sharing securities accounted for as debt of Fannie Mae issued under our CAS series prior to January 1, 2016. Under the fair value option, we elected to carry these instruments at fair value instead of bifurcating the embedded derivative from such instruments. Interest income for the mortgage loans is recorded in “Interest income: Mortgage loans” and interest expense for the debt instruments is recorded in “Interest expense: Long-term debt” in our consolidated statements of operations and comprehensive income.
Fair Value of Financial Instruments	The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that we do not record in our consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.”
Concentration Risk	One of the measures by which we gauge our credit risk is the delinquency status of the mortgage loans in our guaranty book of business. For single-family and multifamily loans, we use this information, in conjunction with housing market and other economic data, to structure our pricing and our eligibility and underwriting criteria to reflect the current risk of loans with higher-risk characteristics, and in some cases we decide to significantly reduce our participation in riskier loan product categories. Management also uses this data together with other credit risk measures to identify key trends that guide the development of our loss mitigation strategies.
Commitments and Contingencies	On a quarterly basis, we review relevant information about all pending legal actions and proceedings for the purpose of evaluating and revising our contingencies, accruals and disclosures. We establish an accrual only for matters when a loss is probable and we can reasonably estimate the amount of such loss.

Consolidations and Transfers of Financial Assets (Tables)

12 Months Ended

Dec. 31, 2021

Consolidations and Transfers of Financial Assets [Abstract]

Schedule of Unconsolidated Variable Interest Entities

The following table displays the carrying amount and classification of our assets and liabilities that relate to our involvement with unconsolidated securitization and resecuritization trusts.


	As of December 31,
	2021			2020
	(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts:
Assets:
Trading securities:
Fannie Mae		$	984		$	1,611
Non-Fannie Mae		3,030			3,608
Total trading securities		4,014			5,219
Available-for-sale securities:
Fannie Mae		495			1,168
Non-Fannie Mae		200			318
Total available-for-sale securities		695			1,486
Other assets		35			41
Other liabilities		(41)			(67)
Net carrying amount		$	4,703		$	6,679

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.

Mortgage Loans (Tables)

12 Months Ended

Dec. 31, 2021

Loans in Mortgage Portfolio

The following table displays the carrying value of our mortgage loans and allowance for loan losses.


	As of December 31,
	2021		2020
	(Dollars in millions)
Single-family	$	3,495,573	$	3,216,146
Multifamily	403,452		373,722
Total unpaid principal balance of mortgage loans	3,899,025		3,589,868
Cost basis and fair value adjustments, net	74,846		74,576
Allowance for loan losses for HFI loans	(5,629)		(10,552)
Total mortgage loans(1)	$	3,968,242	$	3,653,892

(1)Excludes $9.1 billion and $9.8 billion of accrued interest receivable, net of allowance as of December 31, 2021 and 2020, respectively.

The following table displays information about our redesignation of loans and the sales of mortgage loans during the period.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Single family loans redesignated from HFI to HFS:
Amortized cost	$	16,606	$	8,309	$	18,245
Lower of cost or fair value adjustment at time of redesignation(1)	(372)		(291)		(995)
Allowance reversed at time of redesignation	1,605		963		2,484

Single family loans redesignated from HFS to HFI:
Amortized cost	$	5	$	144	$	28
Allowance established at time of redesignation	(1)		(15)		(1)

Single-family loans sold:
Unpaid principal balance	$	16,977	$	9,519	$	19,737
Realized gains, net	1,624		831		1,238

(1)Consists of the write-off against the allowance at the time of redesignation.

Aging Analysis

The following tables display an aging analysis of the total amortized cost of our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option.


	As of December 31, 2021
		30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate		$	22,862	$	5,192	$	38,288	$	66,342	$	2,902,763	$	2,969,105	$	24,236	$	6,271
15-year or less, amortizing fixed-rate		2,024		326		1,799		4,149		529,278		533,427		1,454		193
Adjustable-rate		161		36		374		571		25,771		26,342		287		63
Other(2)		786		204		1,942		2,932		35,013		37,945		1,008		545
Total single-family		25,833		5,758		42,403		73,994		3,492,825		3,566,819		26,985		7,072
Multifamily(3)		114		N/A		1,693		1,807		404,398		406,205		317		107
Total		$	25,947	$	5,758	$	44,096	$	75,801	$	3,897,223	$	3,973,024	$	27,302	$	7,179


	As of December 31, 2020
	30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	24,928	$	9,414	$	88,276	$	122,618	$	2,619,585	$	2,742,203	$	68,526	$	6,028
15-year or less, amortizing fixed-rate	1,987		601		5,028		7,616		449,443		457,059		4,292		240
Adjustable-rate	268		97		1,143		1,508		29,933		31,441		907		114
Other(2)	1,150		458		5,037		6,645		47,937		54,582		2,861		771
Total single-family	28,333		10,570		99,484		138,387		3,146,898		3,285,285		76,586		7,153
Multifamily(3)	1,140		N/A		3,688		4,828		372,598		377,426		610		302
Total	$	29,473	$	10,570	$	103,172	$	143,215	$	3,519,496	$	3,662,711	$	77,196	$	7,455

(2)Reverse mortgage loans included in “Other” are not aged due to their nature and are included in the current column.

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

Credit Quality Indicators


	As of December 31, 2021, by Year of Origination(1)
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	798,830	$	881,290	$	177,909	$	87,825	$	111,059	$	666,327	$	2,723,240
Greater than 80% and less than or equal to 90%	129,340		39,689		2,689		1,056		622		1,687		175,083
Greater than 90% and less than or equal to 100%	66,667		2,278		544		229		57		460		70,235
Greater than 100%	21		12		9		16		22		467		547
Total 20- and 30-year or more, amortizing fixed-rate	994,858		923,269		181,151		89,126		111,760		668,941		2,969,105
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	196,163		157,076		25,390		9,595		20,715		121,027		529,966
Greater than 80% and less than or equal to 90%	2,576		259		16		4		2		7		2,864
Greater than 90% and less than or equal to 100%	579		5		—		1		1		4		590
Greater than 100%	—		—		—		—		2		5		7
Total 15-year or less, amortizing fixed-rate	199,318		157,340		25,406		9,600		20,720		121,043		533,427
Adjustable-rate:
Less than or equal to 80%	6,166		2,235		1,065		1,236		2,524		12,501		25,727
Greater than 80% and less than or equal to 90%	438		25		7		4		2		3		479
Greater than 90% and less than or equal to 100%	135		1		—		—		—		—		136
Greater than 100%	—		—		—		—		—		—		—
Total adjustable-rate	6,739		2,261		1,072		1,240		2,526		12,504		26,342
Other:
Less than or equal to 80%	—		—		34		268		655		26,930		27,887
Greater than 80% and less than or equal to 90%	—		—		—		3		6		275		284
Greater than 90% and less than or equal to 100%	—		—		—		1		2		133		136
Greater than 100%	—		—		—		1		1		141		143
Total other	—		—		34		273		664		27,479		28,450
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324

Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	1,001,159	$	1,040,601	$	204,398	$	98,924	$	134,953	$	826,785	$	3,306,820
Greater than 80% and less than or equal to 90%	132,354		39,973		2,712		1,067		632		1,972		178,710
Greater than 90% and less than or equal to 100%	67,381		2,284		544		231		60		597		71,097
Greater than 100%	21		12		9		17		25		613		697
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324


	As of December 31, 2020, by Year of Origination(1)
	2020		2019		2018		2017		2016		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	794,156	$	233,994	$	135,849	$	183,315	$	221,172	$	775,636	$	2,344,122
Greater than 80% and less than or equal to 90%	157,500		85,227		23,440		5,270		1,592		5,958		278,987
Greater than 90% and less than or equal to 100%	109,743		4,186		820		250		124		1,994		117,117
Greater than 100%	28		7		28		77		81		1,756		1,977
Total 20- and 30-year or more, amortizing fixed-rate	1,061,427		323,414		160,137		188,912		222,969		785,344		2,742,203
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	181,418		41,374		15,768		31,497		46,088		132,596		448,741
Greater than 80% and less than or equal to 90%	6,105		811		35		14		8		20		6,993
Greater than 90% and less than or equal to 100%	1,274		9		3		4		3		10		1,303
Greater than 100%	—		—		3		3		3		13		22
Total 15-year or less, amortizing fixed-rate	188,797		42,194		15,809		31,518		46,102		132,639		457,059
Adjustable-rate:
Less than or equal to 80%	2,935		1,839		2,412		4,765		2,678		16,248		30,877
Greater than 80% and less than or equal to 90%	234		152		79		19		5		12		501
Greater than 90% and less than or equal to 100%	56		3		1		—		—		2		62
Greater than 100%	—		—		—		—		—		1		1
Total adjustable-rate	3,225		1,994		2,492		4,784		2,683		16,263		31,441
Other:
Less than or equal to 80%	—		41		328		811		1,028		36,216		38,424
Greater than 80% and less than or equal to 90%	—		2		20		43		30		1,298		1,393
Greater than 90% and less than or equal to 100%	—		2		8		16		10		602		638
Greater than 100%	—		—		4		8		9		631		652
Total other	—		45		360		878		1,077		38,747		41,107
Total	$	1,253,449	$	367,647	$	178,798	$	226,092	$	272,831	$	972,993	$	3,271,810

Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	978,509	$	277,248	$	154,357	$	220,388	$	270,966	$	960,696	$	2,862,164
Greater than 80% and less than or equal to 90%	163,839		86,192		23,574		5,346		1,635		7,288		287,874
Greater than 90% and less than or equal to 100%	111,073		4,200		832		270		137		2,608		119,120
Greater than 100%	28		7		35		88		93		2,401		2,652
Total	$	1,253,449	$	367,647	$	178,798	$	226,092	$	272,831	$	972,993	$	3,271,810


	As of December 31, 2021, by Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	58,986	$	79,602	$	64,278	$	55,552	$	44,037	$	87,549	$	390,004
Classified(2)	21		595		2,288		2,114		4,091		7,092		16,201
Total	$	59,007	$	80,197	$	66,566	$	57,666	$	48,128	$	94,641	$	406,205


	As of December 31, 2020, by Year of Origination
	2020		2019		2018		2017		2016		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	71,977	$	68,296	$	62,087	$	50,907	$	43,174	$	70,933	$	367,374
Classified(2)	37		1,041		1,529		2,616		1,579		3,250		10,052
Total	$	72,014	$	69,337	$	63,616	$	53,523	$	44,753	$	74,183	$	377,426

(1)A loan categorized as “Non-classified” is current or adequately protected by the current financial strength and debt service capability of the borrower.

Troubled Debt Restructurings Activity

The following table displays the number of loans and amortized cost of loans classified as a TDR during the period.


	For the Year Ended December 31,
	2021					2020					2019
	Number of Loans		Amortized Cost			Number of Loans		Amortized Cost			Number of Loans		Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed rate		10,815		$	1,717		29,938		$	5,125		43,283		$	7,140
15-year or less, amortizing fixed rate		1,165		93			2,956		257			4,762		424
Adjustable-rate		116		17			467		72			813		123
Other		524		56			1,688		211			3,001		403
Total single-family		12,620		1,883			35,049		5,665			51,859		8,090
Multifamily		—		—			—		—			11		56
Total TDRs		12,620		$	1,883		35,049		$	5,665		51,870		$	8,146


	For the Year Ended December 31,
	2021					2020					2019
	Number of Loans		Amortized Cost			Number of Loans		Amortized Cost			Number of Loans		Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed rate		7,799		$	1,302		14,127		$	2,578		15,189		$	2,366
15-year or less, amortizing fixed rate		489		37			148		10			594		45
Adjustable-rate		33		5			16		2			91		14
Other		922		166			1,291		208			1,975		315
Total single-family		9,243		1,510			15,582		2,798			17,849		2,740
Multifamily		—		—			4		16			2		18
Total TDRs that subsequently defaulted		9,243		$	1,510		15,586		$	2,814		17,851		$	2,758

Financing Receivable, Nonaccrual

The table below displays the accrued interest receivable written off through the reversal of interest income for nonaccrual loans.


		For the Year Ended December 31, 2021
		2021		2020
	(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family		$	163	$	206
Multifamily		1		19


	As of December 31,						For the Year Ended December 31,
	2021		2020		2019		2021		2020
	Amortized Cost						Total Interest Income Recognized(1)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	17,599	$	22,907	$	23,427	$	292	$	461
15-year or less, amortizing fixed-rate	430		853		858		6		15
Adjustable-rate	107		270		288		1		5
Other	1,101		2,475		2,973		15		43
Total single-family	19,237		26,505		27,546		314		524
Multifamily	1,259		2,069		435		14		59
Total nonaccrual loans	$	20,496	$	28,574	$	27,981	$	328	$	583

Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2021

Allowance for Loan Losses Roll Forward by Segment


	For the Year Ended December 31,
	2021		2020
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(9,344)	$	(8,759)
Transition impact of the adoption of the CECL standard	—		(1,229)
Benefit (provision) for loan losses	4,503		127
Write-offs	417		457
Recoveries	(419)		(93)
Other	(107)		153
Ending Balance	$	(4,950)	$	(9,344)
Multifamily allowance for loan losses:
Beginning balance	$	(1,208)	(257)
Transition impact of the adoption of the CECL standard	—		(493)
Benefit (provision) for loan losses	519		(593)
Write-offs	59		136
Recoveries	(49)		(1)
Ending Balance	$	(679)	$	(1,208)
Total allowance for loan losses:
Beginning balance	$	(10,552)	$	(9,016)
Transition impact of the adoption of the CECL standard	—		(1,722)
Benefit (provision) for loan losses	5,022		(466)
Write-offs	476		593
Recoveries	(468)		(94)
Other	(107)		153
Ending Balance	$	(5,629)	$	(10,552)


		For the Year Ended December 31,
		2019
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance		$	(13,969)
Benefit for loan losses		3,988
Write-offs		1,299
Recoveries		(71)
Other		(6)
Ending Balance		$	(8,759)
Multifamily allowance for loan losses:
Beginning balance		$	(234)
Provision for loan losses		(27)
Write-offs		8
Recoveries		(4)
Ending Balance		$	(257)
Total allowance for loan losses:
Beginning balance		$	(14,203)
Benefit for loan losses		3,961
Write-offs		1,307
Recoveries		(75)
Other		(6)
Ending Balance		$	(9,016)

Investments in Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities.


	As of December 31,
	2021		2020
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae	$	1,576	$	2,404
Other agency(1)	2,893		3,451
Private-label and other mortgage securities	137		158
Total mortgage-related securities (includes $593 million and $793 million, respectively, related to consolidated trusts)	4,606		6,013
Non-mortgage-related securities:
U.S. Treasury securities	83,581		130,456
Other securities	19		73
Total non-mortgage-related securities	83,600		130,529
Total trading securities	$	88,206	$	136,542

(1)Consists of Freddie Mac and Ginnie Mae mortgage-related securities.

Schedule of Trading Securities Gains (Losses), Net

The following table displays information about our net trading gains (losses).



	For the Year Ended December 31,
	2021			2020			2019
	(Dollars in millions)
Net trading gains (losses)		$	(1,060)		$	513		$	322
Net trading gains (losses) recognized in the period related to securities still held at period end		(997)			252			238

Schedule of Available-for-sale Securities Reconciliation


	As of December 31, 2021
	Total Amortized Cost(1)			Allowance for Credit Losses(3)			Gross Unrealized Gains in AOCI			Gross Unrealized Losses in AOCI			Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	492		$	—		$	14		$	(11)		$	495
Other agency(2)		12			—			—			—			12
Alt-A and subprime private-label securities		3			—			2			—			5

Mortgage revenue bonds		142			—			5			(3)			144
Other mortgage-related securities		178			—			3			—			181
Total		$	827		$	—		$	24		$	(14)		$	837


	As of December 31, 2020
	Total Amortized Cost(1)			Allowance for Credit Losses			Gross Unrealized Gains			Gross Unrealized Losses			Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	1,094		$	—		$	86		$	(12)		$	1,168
Other agency(2)		59			—			6			—			65
Alt-A and subprime private-label securities		4			—			2			—			6

Mortgage revenue bonds		211			(3)			8			—			216
Other mortgage-related securities		238			—			4			—			242
Total		$	1,606		$	(3)		$	106		$	(12)		$	1,697

(2)Other agency securities consist of securities issued by Freddie Mac and Ginnie Mae.

(3)Total allowance for credit losses is less than $0.5 million as of December 31, 2021.

Available-for-sale, Unrealized Loss Position, Fair Value


	As of December 31, 2021
	Less Than 12 Consecutive Months						12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(5)		$	225		$	(6)		$	102


Mortgage revenue bonds		(3)			3			—			—

Total		$	(8)		$	228		$	(6)		$	102

	As of December 31, 2020
	Less Than 12 Consecutive Months						12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(1)		$	40		$	(11)		$	94
Mortgage revenue bonds		—			—			—			—

Total		$	(1)		$	40		$	(11)		$	94

Schedule of Available-for-sale Securities Realized Gain (Loss)

The following table displays the gross realized gains and proceeds on sales of AFS securities.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Gross realized gains	$	59	$	57	$	265

Total proceeds (excludes initial sale of securities from new portfolio securitizations)	582		361		537

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables display net unrealized gains and losses on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax.


	As of December 31,
	2021		2020
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	9	$	74
Net unrealized gains (losses) on AFS securities for which we have recorded an allowance for credit losses	(2)		—
Other	31		42
Accumulated other comprehensive income	$	38	$	116


	As of December 31,
	2019
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded other-than-temporary impairment (“OTTI”)	$	97
Net unrealized gains (losses) on AFS securities for which we have recorded OTTI	—
Other	34
Accumulated other comprehensive income	$	131

Investments Classified by Contractual Maturity Date


	As of December 31, 2021
	Total Carrying Amount (1)				Total Fair Value			One Year or Less							After One Year Through Five Years							After Five Years Through Ten Years							After Ten Years
								Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value			Net Carrying Amount (1)				Fair Value
	(Dollars in millions)
Fannie Mae		$	492			$	495		$	—			$	—		$	3			$	3		$	11			$	12		$	478			$	480
Other agency		12				12			—				—			—				—			1				1			11				11
Alt-A and subprime private-label securities		3				5			—				—			—				—			2				2			1				3

Mortgage revenue bonds		142				144			4				4			21				22			10				10			107				108
Other mortgage-related securities		178				181			—				—			—				—			3				4			175				177
Total		$	827			$	837		$	4			$	4		$	24			$	25		$	27			$	29		$	772			$	779
Weighted-average interest rate (2)		5.32		%					6.09		%					6.66		%					7.75		%					5.19		%

(1)Net carrying amount consists of amortized cost, net of allowance for credit losses on AFS debt securities but does not include any unrealized fair value gains or losses.

(2)Weighted-average interest rate includes the effects of discounts, premiums and other cost basis adjustments

Financial Guarantees (Tables)

12 Months Ended

Dec. 31, 2021

Guarantees [Abstract]

Schedule of Guarantor Obligations


	As of December 31,
	2021									2020
	Maximum Exposure		Guaranty Obligation			Maximum Recovery(1)			Maximum Exposure			Guaranty Obligation			Maximum Recovery(1)
	(Dollars in millions)
Unconsolidated Fannie Mae MBS	$	3,733		$	16		$	3,626		$	4,424		$	18		$	4,226
Other guaranty arrangements(2)	10,423			85			2,117			11,828			109			2,438
Total	$	14,156		$	101		$	5,743		$	16,252		$	127		$	6,664

(2) Primarily consists of credit enhancements and long-term standby commitments.

Short-Term and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-Term Debt

The following table displays our outstanding short-term debt (debt with an original contractual maturity of one year or less) and weighted-average interest rates of this debt.


	As of December 31,
	2021				2020
	Outstanding		Weighted- Average Interest Rate(1)		Outstanding		Weighted- Average Interest Rate(1)
	(Dollars in millions)

Short-term debt of Fannie Mae	$	2,795	0.03	%	$	12,173	0.18	%

(1)Includes the effects of discounts, premiums and other cost basis adjustments.

Long-Term Debt

The following table displays our outstanding long-term debt.


	As of December 31,
	2021					2020
	Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)		Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2022 - 2030	$	89,618	2.13	%	2021 - 2030	$	106,691	2.03	%
Medium-term notes(3)	2022 - 2031	38,312		0.60		2021 - 2030	48,524		0.63
Other(4)	2023 - 2038	7,045		3.73		2021 - 2038	6,701		3.90
Total senior fixed		134,975		1.78			161,916		1.69
Senior floating:
Medium-term notes(3)	2022	51,583		0.32		2021 - 2022	100,089		0.35
Connecticut Avenue Securities(5)	2023 - 2031	11,166		4.30		2023 - 2031	14,978		4.16
Other(6)	2037	373		7.17		2037	416		7.75
Total senior floating		63,122		1.05			115,483		0.86


Total long-term debt of Fannie Mae(7)		198,097		1.55			277,399		1.34
Debt of consolidated trusts	2022 - 2061	3,957,299		1.89		2021 - 2060	3,646,164		1.88
Total long-term debt		$	4,155,396	1.88	%		$	3,923,563	1.85	%

(1)Outstanding debt balance consists of the unpaid principal balance, premiums and discounts, fair value adjustments, hedge-related basis adjustments, and other cost basis adjustments.

(2)Excludes the effects of fair value adjustments and hedge-related basis adjustments.

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

(4)Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds.

(6)Consists of structured debt instruments that are reported at fair value.

Long-Term Debt by Year of Maturity


	Long-Term Debt by Year of Maturity			Assuming Callable Debt Redeemed at Next Available Call Date
	(Dollars in millions)
2022		$	65,617		$	100,564
2023		23,255			20,856
2024		18,817			14,169
2025		38,141			21,614
2026		9,598			7,195
Thereafter		42,669			33,699
Total long-term debt of Fannie Mae(1)		198,097			198,097
Debt of consolidated trusts(2)		3,957,299			3,957,299
Total long-term debt		$	4,155,396		$	4,155,396

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

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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21506-112644

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69B
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69E
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21521-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Notional and Fair Value Position

The following table displays the notional amount and estimated fair value of our asset and liability derivative instruments.


	As of December 31,
	2021						2020
	Notional Amount		Estimated Fair Value				Notional Amount		Estimated Fair Value
			Asset Derivatives		Liability Derivatives				Asset Derivatives		Liability Derivatives
	(Dollars in millions)
Risk management derivatives designated as hedging instruments:
Swaps:(1)
Pay-fixed	$	4,347	$	—	$	—	$	—	$	—	$	—
Receive-fixed	40,686		—		—		—		—		—

Total risk management derivatives designated as hedging instruments	45,033		—		—		—		—		—
Risk management derivatives not designated as hedging instruments:
Swaps:(1)
Pay-fixed	56,817		—		—		99,822		3		(684)
Receive-fixed	56,874		—		(1,131)		126,234		314		(137)
Basis	250		152		—		250		203		—
Foreign currency	336		25		(34)		476		59		(60)
Swaptions:(1)
Pay-fixed	4,341		52		(2)		7,555		37		(118)
Receive-fixed	1,091		10		(21)		4,055		346		(16)
Futures(1)	—		—		—		64,398		—		—

Total risk management derivatives not designated as hedging instruments	119,709		239		(1,188)		302,790		962		(1,015)
Netting adjustment(2)	—		(237)		1,173		—		(905)		995
Total risk management derivatives portfolio	164,742		2		(15)		302,790		57		(20)
Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	13,192		17		(5)		35,343		145		—
Forward contracts to purchase mortgage-related securities	58,021		83		(34)		144,822		844		—
Forward contracts to sell mortgage-related securities	111,173		69		(158)		228,027		—		(1,426)
Total mortgage commitment derivatives	182,386		169		(197)		408,192		989		(1,426)
Credit enhancement derivatives	19,256		—		(21)		28,197		179		(49)
Derivatives at fair value	$	366,384	$	171	$	(233)	$	739,179	$	1,225	$	(1,495)

(1)Centrally cleared derivatives have no ascribable fair value because the positions are settled daily.

Schedule of Derivative Fair Value Gain (Loss), Net

The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	2,207	$	(2,764)	$	(3,964)
Receive-fixed	(1,783)		2,226		3,685
Basis	(51)		43		46
Foreign currency	(26)		23		24
Swaptions:
Pay-fixed	38		(146)		(380)
Receive-fixed	(217)		595		117
Futures	1		(76)		273
Net contractual interest expense on interest-rate swaps	16		(261)		(833)
Total risk management derivatives fair value gains (losses), net	185		(360)		(1,032)
Mortgage commitment derivatives fair value gains (losses), net	551		(2,654)		(1,043)
Credit enhancement derivatives fair value gains (losses), net	(178)		182		(35)
Total derivatives fair value gains (losses), net	$	558	$	(2,832)	$	(2,110)

Schedule of Effect of Fair Value Hedge Accounting



	For the Year Ended December 31,
		2021
				Interest Income: Mortgage Loans		Interest Expense: Long-Term Debt
			(Dollars in millions)
Total amounts presented in our consolidated statement of operations and comprehensive income				$	98,930	$	(70,084)




Gains (losses) from fair value hedging relationships:
Mortgage loans HFI and related interest-rate contracts:
Hedged items				$	140	$	—
Discontinued hedge-related basis adjustment amortization				(6)		—


Derivatives designated as hedging instruments				(145)		—
Interest accruals on derivative hedging instruments				(12)		—
Debt of Fannie Mae and related interest-rate contracts:
Hedged items				—		1,370
Discontinued hedge-related basis adjustment amortization				—		(89)
Derivatives designated as hedging instruments				—		(1,308)
Interest accruals on derivative hedging instruments				—		223
Gains (losses) recognized in net interest income on fair value hedging relationships				$	(23)	$	196


	As of December 31, 2021
	Carrying Amount Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Basis Adjustments Included in the Carrying Amount				Closed Portfolio of Mortgage Loans Under Last-of-Layer Method
			Total Basis Adjustments(1)(2)		Remaining Adjustments - Discontinued Hedge		Total Amortized Cost		Designated UPB
	(Dollars in millions)
Mortgage loans HFI	$	174,080	$	134	$	134	$	56,786	$	4,389

Debt of Fannie Mae	(72,174)		1,281		1,281		N/A		N/A

(1) No basis adjustment associated with open hedges, as all hedges are designated at the close of business, with a one-day term.

(2) Based on the unamortized balance of the hedge-related cost basis.

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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

Schedule of Components of Income Tax Expense (Benefit)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

The following table displays the components of our provision for federal income taxes.


	For the Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Current income tax benefit (provision)	$	(5,521)	$	(3,803)	$	(2,089)
Deferred income tax benefit (provision)(1)	(252)		729		(1,328)
Provision for federal income taxes	$	(5,773)	$	(3,074)	$	(3,417)

(1)Amount excludes the current income tax effect of items recognized directly in “Total stockholders' equity.”

Schedule of Effective Income Tax Rate Reconciliation

The following table displays the difference between the statutory corporate tax rate and our effective tax rate.


	For the Year Ended December 31,
	2021			2020			2019
Statutory corporate tax rate		21.0	%		21.0	%		21.0	%
Equity investments in affordable housing projects		(0.1)			(0.1)			(0.2)
Change in unrecognized tax benefits		—			—			(1.2)
Other		(0.2)			(0.2)			(0.2)
Effective tax rate		20.7	%		20.7	%		19.4	%

Schedule of Deferred Tax Assets and Liabilities

The following table displays our deferred tax assets and deferred tax liabilities.


	As of December 31,
	2021			2020
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	7,547		$	8,241
Allowance for loan losses and basis in acquired property, net		1,060			1,798

Derivative instruments		778			602
Partnership and other equity investments		88			129
Interest-only securities		3,977			2,561

Total deferred tax assets		13,450			13,331
Deferred tax liabilities:
Unrealized gains on AFS securities, net		2			20

Other, net		733			364
Total deferred tax liabilities		735			384
Deferred tax assets, net		$	12,715		$	12,947

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Assets by Segment

The following table displays total assets by segment.


	As of December 31,
	2021		2020
	(Dollars in millions)
Single-Family	$	3,782,447	$	3,569,130
Multifamily	446,719		416,619
Total assets	$	4,229,166	$	3,985,749

Schedule of Segment Reporting

The following tables display our segment results.


	For the Year Ended December 31, 2021
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	25,429	$	4,158	$	29,587
Fee and other income(2)	269		92		361
Net revenues	25,698		4,250		29,948
Investment gains (losses), net(3)	1,392		(40)		1,352
Fair value gains (losses), net(4)(9)	167		(12)		155
Administrative expenses	(2,557)		(508)		(3,065)
Credit-related income:(5)
Benefit for credit losses	4,600		530		5,130
Foreclosed property expense	(14)		(19)		(33)
Total credit-related income	4,586		511		5,097
TCCA fees(6)	(3,071)		—		(3,071)
Credit enhancement expense(7)	(812)		(239)		(1,051)
Change in expected credit enhancement recoveries(8)	(86)		(108)		(194)
Other expenses, net	(1,194)		(28)		(1,222)
Income before federal income taxes	24,123		3,826		27,949
Provision for federal income taxes	(4,996)		(777)		(5,773)
Net income	$	19,127	$	3,049	$	22,176


	For the Year Ended December 31, 2020
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	21,502	$	3,364	$	24,866
Fee and other income(2)	368		94		462
Net revenues	21,870		3,458		25,328
Investment gains, net(3)	728		179		907
Fair value gains (losses), net(4)(9)	(2,539)		38		(2,501)
Administrative expenses	(2,559)		(509)		(3,068)
Credit-related expense:(5)
Provision for credit losses	(75)		(603)		(678)
Foreclosed property expense	(157)		(20)		(177)
Total credit-related expense	(232)		(623)		(855)
TCCA fees(6)	(2,673)		—		(2,673)
Credit enhancement expense(7)	(1,141)		(220)		(1,361)
Change in expected credit enhancement recoveries(8)	89		144		233
Other expenses, net	(1,055)		(76)		(1,131)
Income before federal income taxes	12,488		2,391		14,879
Provision for federal income taxes	(2,607)		(467)		(3,074)
Net income	$	9,881	$	1,924	$	11,805


	For the Year Ended December 31, 2019
	Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)(9)	$	18,013	$	3,280	$	21,293
Fee and other income(2)	453		113		566
Net revenues	18,466		3,393		21,859
Investment gains, net(3)	1,589		181		1,770
Fair value gains (losses), net(4)(9)	(2,216)		2		(2,214)
Administrative expenses	(2,565)		(458)		(3,023)
Credit-related income (expense):(5)
Benefit (provision) for credit losses	4,038		(27)		4,011
Foreclosed property income (expense)	(523)		8		(515)
Total credit-related income (expense)	3,515		(19)		3,496
TCCA fees(6)	(2,432)		—		(2,432)
Credit enhancement expense(7)	(927)		(207)		(1,134)
Change in expected credit enhancement recoveries(8)	—		—		—
Other expenses, net	(734)		(11)		(745)
Income before federal income taxes	14,696		2,881		17,577
Provision for federal income taxes	(2,859)		(558)		(3,417)
Net income	$	11,837	$	2,323	$	14,160

(6)Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA.

Equity (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Preferred Stock

The following table displays our senior preferred stock and preferred stock outstanding.


		Issued and Outstanding as of December 31,									Annual Dividend Rate as of December 31, 2021
		2021			2020			Stated Value per Share
Title	Issue Date	Shares	Amount		Shares	Amount								Redeemable on or After
(Dollars and shares in millions, except per share amounts)
Senior Preferred Stock
Series 2008-2	September 8, 2008	1	$	120,836	1	$	120,836	$	120,836	(1)	N/A		(2)	N/A	(3)

Preferred Stock
Series D	September 30, 1998	3	$	150	3	$	150	$	50		5.250	%		September 30, 1999
Series E	April 15, 1999	3	150		3	150		50			5.100			April 15, 2004
Series F	March 20, 2000	14	690		14	690		50			0.150		(4)	March 31, 2002	(5)
Series G	August 8, 2000	6	288		6	288		50			—		(6)	September 30, 2002	(5)
Series H	April 6, 2001	8	400		8	400		50			5.810			April 6, 2006
Series I	October 28, 2002	6	300		6	300		50			5.375			October 28, 2007
Series L	April 29, 2003	7	345		7	345		50			5.125			April 29, 2008
Series M	June 10, 2003	9	460		9	460		50			4.750			June 10, 2008
Series N	September 25, 2003	5	225		5	225		50			5.500			September 25, 2008
Series O	December 30, 2004	50	2,500		50	2,500		50			7.000		(7)	December 31, 2007
Convertible Series 2004-I(8)	December 30, 2004	—	2,492		—	2,492		100,000			5.375			January 5, 2008
Series P	September 28, 2007	40	1,000		40	1,000		25			4.500		(9)	September 30, 2012
Series Q	October 4, 2007	15	375		15	375		25			6.750			September 30, 2010
Series R(10)	November 21, 2007	21	530		21	530		25			7.625			November 21, 2012
Series S	December 11, 2007	280	7,000		280	7,000		25			7.750		(11)	December 31, 2010	(12)
Series T(13)	May 19, 2008	89	2,225		89	2,225		25			8.250			May 20, 2013
Total		556	$	19,130	556	$	19,130

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

(6)Rate effective September 30, 2020. Variable dividend rate resets every two years at a per annum rate equal to the two-year CMT rate minus 0.18% with a cap of 11% per year.

(7)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7% or 10-year CMT rate plus 2.375%.

(8)Issued and outstanding shares were 24,922 as of December 31, 2021 and 2020.

(9)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 4.5% or 3-Month LIBOR plus 0.75%.

(11)Rate effective December 31, 2021. Variable dividend rate resets quarterly thereafter at a per annum rate equal to the greater of 7.75% or 3-Month LIBOR plus 4.23%.

(12)Represents initial call date. Redeemable every five years thereafter.

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.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21553-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=122040564&loc=d3e177068-122764

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21488-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21506-112644

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21484-112644

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Capital Classification Measures

The following table displays our current capital classification measures.


	As of December 31,
	2021		2020
	(Dollars in millions)
Core capital(1)	$	(73,517)	$	(95,694)
Statutory minimum capital requirement(2)	26,810		28,603
Deficit of core capital relative to statutory minimum capital requirement	$	(100,327)	$	(124,297)

Concentrations of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2021

Concentration Risk [Line Items]

Schedules of Concentration of Risk, by Risk Factor

The following table displays the regional geographic concentration of single-family and multifamily loans in our guaranty book of business, measured by the unpaid principal balance of the loans.


	Geographic Concentration(1)
	Percentage of Single-Family Conventional Guaranty Book of Business						Percentage of Multifamily Guaranty Book of Business
	As of December 31,						As of December 31,
	2021			2020			2021			2020
Midwest		14	%		14	%		11	%		11	%
Northeast		16			17			15			15
Southeast		23			22			27			27
Southwest		18			19			22			22
West		29			28			25			25
Total		100	%		100	%		100	%		100	%

Single-family

Concentration Risk [Line Items]

Schedules of Concentration of Risk, by Risk Factor

The table below displays the percentage of our single-family guaranty book of business serviced by our top five depository single-family mortgage servicers and top five non-depository single-family mortgage servicers (i.e., servicers that are not insured depository institutions), and identifies one servicer that serviced 10% or more of our single-family guaranty book of business based on unpaid principal balance.


	Percentage of Single-Family Guaranty Book of Business
	As of December 31,
	2021		2020
Wells Fargo Bank, N.A. (together with its affiliates)	10	%	13	%
Remaining top five depository servicers	11		11
Top five non-depository servicers	23		24
Total	44	%	48	%

Schedule of Delinquency Status Guaranty Book of Business

The following tables display the delinquency status and serious delinquency rates for specified loan categories of our single-family conventional guaranty book of business.


	As of December 31,
	2021						2020
	30 Days Delinquent		60 Days Delinquent		Seriously Delinquent(1)		30 Days Delinquent		60 Days Delinquent		Seriously Delinquent(1)
Percentage of single-family conventional guaranty book of business based on UPB	0.73	%	0.16	%	1.20	%	0.88	%	0.33	%	3.10	%
Percentage of single-family conventional loans based on loan count	0.86		0.20		1.25		1.02		0.36		2.87

Based on loan count, consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2021 and 2020

Schedule of Risk Characteristics Guaranty Book of Business


	As of December 31,
	2021				2020
	Percentage of Single-Family Conventional Guaranty Book of Business Based on UPB		Seriously Delinquent Rate(1)		Percentage of Single-Family Conventional Guaranty Book of Business Based on UPB		Seriously Delinquent Rate(1)
Estimated mark-to-market LTV ratio:
80.01% to 90%	5	%	0.88	%	9	%	4.17	%
90.01% to 100%	2		0.51		4		1.85
Greater than 100%	*		12.41		*		22.43
Geographical distribution:
California	19		1.01		19		2.62
Florida	6		1.59		6		4.17
Illinois	3		1.55		3		3.10
New Jersey	3		1.90		3		4.57
New York	5		2.24		5		4.79
All other states	64		1.16		64		2.59
Product distribution:
Alt-A	1		4.96		1		9.32
Vintages:
2004 and prior	1		3.48		2		5.88
2005-2008	2		5.87		2		9.98
2009-2021	97		1.01		96		2.39

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

(1)Based on loan count, consists of single-family conventional loans that were 90 days or more past due or in the foreclosure process as of December 31, 2021 and 2020.

Schedule of Risk in Force Mortgage Insurance Coverage


	As of December 31,
	2021				2020
	Risk in Force		Percentage of Single-Family Conventional Guaranty Book of Business		Risk in Force		Percentage of Single-Family Conventional Guaranty Book of Business
	(Dollars in millions)
Mortgage insurance risk in force:
Primary mortgage insurance	$	176,587			$	170,890
Pool mortgage insurance	261				291
Total mortgage insurance risk in force	$	176,848	5	%	$	171,181	5	%

Schedule of Risk in Force Mortgage Insurance Coverage, by Counterparty


	Percentage of Risk-in-Force Coverage by Mortgage Insurer
	As of December 31,
	2021		2020
Counterparty:(1)
Arch Capital Group Ltd.	19	%	21	%
Mortgage Guaranty Insurance Corp.	19		18
Radian Guaranty, Inc.	17		19
Genworth Mortgage Insurance Corp.	17		16
Essent Guaranty, Inc.	16		16
National Mortgage Insurance Corp.	11		9
Others	1		1
Total	100	%	100	%

(1)Insurance coverage amounts provided for each counterparty may include coverage provided by affiliates and subsidiaries of the counterparty.

Multifamily

Concentration Risk [Line Items]

Schedules of Concentration of Risk, by Risk Factor


	Percentage of Multifamily Guaranty Book of Business
	As of December 31,
	2021		2020
Walker & Dunlop, Inc.	12	%	12	%
Wells Fargo Bank, N.A. (together with its affiliates)	11		12
Remaining top five servicers	24		24
Total	47	%	48	%

Schedule of Delinquency Status Guaranty Book of Business

The following tables display the delinquency status and serious delinquency rates for specified loan categories of our multifamily guaranty book of business.


	As of December 31,
	2021(1)				2020(1)
	30 Days Delinquent		Seriously Delinquent(2)		30 Days Delinquent		Seriously Delinquent(2)
Percentage of multifamily guaranty book of business	0.03	%	0.42	%	0.29	%	0.98	%

Calculated based on the aggregate unpaid principal balance of multifamily loans for each category divided by the aggregate unpaid principal balance of loans in our multifamily guaranty book of business.(2)Consists of multifamily loans that were 60 days or more past due as of the dates indicated

Schedule of Risk Characteristics Guaranty Book of Business


	As of December 31,
	2021				2020
	Percentage of Multifamily Guaranty Book of Business(1)		Serious Delinquency Rate(2)(3)		Percentage of Multifamily Guaranty Book of Business(1)		Serious Delinquency Rate(2)(3)
Original LTV ratio:
Greater than 80%	1	%	0.13	%	1	%	1.04	%
Less than or equal to 80%	99		0.42		99		0.98
Current DSCR below 1.0(4)	2		13.90		2		21.19

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

(4)Our estimates of current DSCRs are based on the latest available income information from annual statements for these properties.

Netting Arrangements (Tables)

12 Months Ended

Dec. 31, 2021

Offsetting [Abstract]

Schedule of Offsetting

The tables below display information related to derivatives, securities purchased under agreements to resell or similar arrangements, and securities sold under agreements to repurchase or similar arrangements, which are subject to an enforceable master netting arrangement or similar agreement that are either offset or not offset in our consolidated balance sheets.


	As of December 31, 2021
			Gross Amount Offset(1)		Net Amount Presented in our Consolidated Balance Sheets			Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount							Financial Instruments(2)		Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$	239	$	(237)	$	2		$	—	$	—		$	2
Cleared risk management derivatives	—		—		—			—		—			—
Mortgage commitment derivatives	169		—		169			(133)		—			36
Total derivative assets	408		(237)		171		(4)	(133)		—			38
Securities purchased under agreements to resell or similar arrangements(5)	64,843		—		64,843			—		(64,843)			—
Total assets	$	65,251	$	(237)	$	65,014		$	(133)	$	(64,843)		$	38



Liabilities:
OTC risk management derivatives	$	(1,188)	$	1,183	$	(5)		$	—	$	—	$	(5)
Cleared risk management derivatives	—		(10)		(10)			—		10		—
Mortgage commitment derivatives	(197)		—		(197)			133		56		(8)


Total liabilities	$	(1,385)	$	1,173	$	(212)	(4)	$	133	$	66	$	(13)


	As of December 31, 2020
			Gross Amount Offset(1)		Net Amount Presented in our Consolidated Balance Sheets			Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount							Financial Instruments(2)		Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$	962	$	(952)	$	10		$	—	$	—		$	10
Cleared risk management derivatives	—		47		47			—		—			47
Mortgage commitment derivatives	989		—		989			(406)		(53)			530
Total derivative assets	1,951		(905)		1,046		(4)	(406)		(53)			587
Securities purchased under agreements to resell or similar arrangements(5)	46,644		—		46,644			—		(46,644)			—
Total assets	$	48,595	$	(905)	$	47,690		$	(406)	$	(46,697)		$	587

Liabilities:
OTC risk management derivatives	$	(1,015)	$	999	$	(16)		$	—	$	—		$	(16)
Cleared risk management derivatives	—		(4)		(4)			—		2			(2)
Mortgage commitment derivatives	(1,426)		—		(1,426)			406		1,017			(3)


Total liabilities	$	(2,441)	$	995	$	(1,446)	(4)	$	406	$	1,019		$	(21)

Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Recurring Changes in Fair Value


	Fair Value Measurements as of December 31, 2021
	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, including restricted cash equivalents(2)		$	250		$	—		$	—		$	—		$	250
Trading securities:
Mortgage-related securities:
Fannie Mae		—			1,519			57			—			1,576
Other agency		—			2,893			—			—			2,893
Private-label and other mortgage securities		—			137			—			—			137
Non-mortgage-related securities:
U.S. Treasury securities		83,581			—			—			—			83,581
Other securities		—			19			—			—			19
Total trading securities		83,581			4,568			57			—			88,206
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			64			431			—			495
Other agency		—			12			—			—			12
Alt-A and subprime private-label securities		—			3			2			—			5

Mortgage revenue bonds		—			—			144			—			144
Other		—			5			176			—			181
Total available-for-sale securities		—			84			753			—			837
Mortgage loans		—			4,209			755			—			4,964
Other assets:
Risk management derivatives:
Swaps		—			25			152			—			177
Swaptions		—			62			—			—			62



Netting adjustment		—			—			—			(237)			(237)
Mortgage commitment derivatives		—			169			—			—			169

Total other assets		—			256			152			(237)			171
Total assets at fair value		$	83,831		$	9,117		$	1,717		$	(237)		$	94,428

Liabilities:
Long-term debt:
Of Fannie Mae:

Senior floating		$	—		$	2,008		$	373		$	—		$	2,381

Of consolidated trusts		—			21,640			95			—			21,735
Total long-term debt		—			23,648			468			—			24,116
Other liabilities:
Risk management derivatives:
Swaps		—			1,165			—			—			1,165
Swaptions		—			23			—			—			23
Netting adjustment		—			—			—			(1,173)			(1,173)
Mortgage commitment derivatives		—			197			—			—			197
Credit enhancement derivatives		—			—			21			—			21
Total other liabilities		—			1,385			21			(1,173)			233
Total liabilities at fair value		$	—		$	25,033		$	489		$	(1,173)		$	24,349


	Fair Value Measurements as of December 31, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment(1)			Estimated Fair Value
Recurring fair value measurements:	(Dollars in millions)
Assets:
Cash equivalents, including restricted cash equivalents(2)		$	1,120		$	—		$	—		$	—		$	1,120
Trading securities:
Mortgage-related securities:
Fannie Mae		—			2,310			94			—			2,404
Other agency		—			3,450			1			—			3,451
Private-label and other mortgage securities		—			158			—			—			158
Non-mortgage-related securities:
U.S. Treasury securities		130,456			—			—			—			130,456
Other securities		—			73			—			—			73
Total trading securities		130,456			5,991			95			—			136,542
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			973			195			—			1,168
Other agency		—			65			—			—			65
Alt-A and subprime private-label securities		—			4			2			—			6

Mortgage revenue bonds		—			—			216			—			216
Other		—			7			235			—			242
Total available-for-sale securities		—			1,049			648			—			1,697
Mortgage loans		—			5,629			861			—			6,490
Other assets:
Risk management derivatives:
Swaps		—			376			203			—			579
Swaptions		—			383			—			—			383
Netting adjustment		—			—			—			(905)			(905)
Mortgage commitment derivatives		—			989			—			—			989
Credit enhancement derivatives		—			—			179			—			179
Total other assets		—			1,748			382			(905)			1,225
Total assets at fair value		$	131,576		$	14,417		$	1,986		$	(905)		$	147,074

Liabilities:
Long-term debt:
Of Fannie Mae:
Senior floating		$	—		$	3,312		$	416		$	—		$	3,728

Of consolidated trusts		—			24,503			83			—			24,586
Total long-term debt		—			27,815			499			—			28,314
Other liabilities:
Risk management derivatives:
Swaps		—			881			—			—			881
Swaptions		—			134			—			—			134
Netting adjustment		—			—			—			(995)			(995)
Mortgage commitment derivatives		—			1,426			—			—			1,426
Credit enhancement derivatives		—			—			49			—			49
Total other liabilities		—			2,441			49			(995)			1,495
Total liabilities at fair value		$	—		$	30,256		$	548		$	(995)		$	29,809

(2)Cash equivalents and restricted cash equivalents are composed of U.S. Treasuries that have a maturity at the date of acquisition of three months or less.

Fair Value Measurements Using Significant Unobservable Input (Level 3)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2021
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2021(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2021(1)
	Balance, December 31, 2020		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2021
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	94	$	(24)			$	—	$	18	$	—	$	—	$	—	$	(164)	$	133	$	57	$	—	$	—
Other agency	1		—				—		—		—		—		—		(1)		—		—		—		—

Total trading securities	$	95	$	(24)	(5)(6)		$	—	$	18	$	—	$	—	$	—	$	(165)	$	133	$	57	$	—	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	195	$	1			$	(1)	$	—	$	—	$	—	$	(33)	$	(107)	$	376	$	431	$	—	$	2

Alt-A and subprime private-label securities	2		—				—		—		—		—		—		—		—		2		—		1
Mortgage revenue bonds	216		3				(5)		—		—		—		(70)		—		—		144		—		(3)
Other	235		10				(1)		—		—		—		(68)		—		—		176		—		1
Total available-for-sale securities	$	648	$	14	(6)(7)		$	(7)	$	—	$	—	$	—	$	(171)	$	(107)	$	376	$	753	$	—	$	1

Mortgage loans	$	861	$	31	(5)(6)		$	—	$	89	$	(66)	$	—	$	(194)	$	(86)	$	120	$	755	$	26	$	—
Net derivatives	333		(209)		(5)		—		—		—		—		7		—		—		131		(202)		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(416)	$	43	(5)		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(373)	$	43	$	—
Of consolidated trusts	(83)		(1)		(5)(6)		—		—		—		—		16		20		(47)		(95)		(2)		—
Total long-term debt	$	(499)	$	42			$	—	$	—	$	—	$	—	$	16	$	20	$	(47)	$	(468)	$	41	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2020
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2020(1)
	Balance, December 31, 2019		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2020
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	45	$	(12)			$	—	$	—	$	(1)	$	—	$	—	$	(48)	$	110	$	94	$	(8)	$	—
Other agency	1		—				—		—		—		—		—		(1)		1		1		—		—
Private-label and other mortgage securities	—		3				—		—		(94)		—		(3)		—		94		—		—		—
Total trading securities	$	46	$	(9)	(5)(6)		$	—	$	—	$	(95)	$	—	$	(3)	$	(49)	$	205	$	95	$	(8)	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	171	$	1			$	4	$	—	$	(1)	$	—	$	(15)	$	(243)	$	278	$	195	$	—	$	—

Alt-A and subprime private-label securities	—		—				—		—		—		—		—		—		2		2		—		—
Mortgage revenue bonds	315		(3)				2		—		—		—		(98)		—		—		216		—		4
Other	306		(6)				(1)		—		—		—		(64)		—		—		235		—		—
Total available-for-sale securities	$	792	$	(8)	(6)(7)		$	5	$	—	$	(1)	$	—	$	(177)	$	(243)	$	280	$	648	$	—	$	4

Mortgage loans	$	688	$	47	(5)(6)		$	—	$	—	$	(21)	$	—	$	(132)	$	(104)	$	383	$	861	$	11	$	—
Net derivatives	162		233		(5)		—		—		—		—		(80)		18		—		333		159		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(398)	$	(41)	(5)		$	—	$	—	$	—	$	—	$	23	$	—	$	—	$	(416)	$	(41)	$	—
Of consolidated trusts	(75)		(2)		(5)(6)		—		—		—		—		18		5		(29)		(83)		(1)		—
Total long-term debt	$	(473)	$	(43)			$	—	$	—	$	—	$	—	$	41	$	5	$	(29)	$	(499)	$	(42)	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2019
			Total Gains (Losses) (Realized/Unrealized)																				Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019(4)(5)		Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held as of December 31, 2019(1)
	Balance, December 31, 2018		Included in Net Income			Included in Total OCI (Loss)(1)			Purchases(2)		Sales(2)		Issues(3)		Settlements(3)		Transfers out of Level 3		Transfers into Level 3		Balance, December 31, 2019
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	32	$	3			$	—	$	77	$	(22)	$	—	$	(16)	$	(108)	$	79	$	45	$	1	$	—
Other agency	—		—				—		—		—		—		—		—		1		1		—		—
Private-label and other mortgage securities	1		—				—		—		—		—		(1)		—		—		—		—		—
Total trading securities	$	33	$	3	(5)(6)		$	—	$	77	$	(22)	$	—	$	(17)	$	(108)	$	80	$	46	$	1	$	—

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	152	$	—			$	7	$	—	$	—	$	—	$	(8)	$	(103)	$	123	$	171	$	—	$	6

Alt-A and subprime private-label securities	24		5				(5)		—		(23)		—		(1)		—		—		—		—		—
Mortgage revenue bonds	434		1				(3)		—		(5)		—		(112)		—		—		315		—		(1)
Other	342		13				(10)		—		—		—		(37)		(3)		1		306		—		(8)
Total available-for-sale securities	$	952	$	19	(6)(7)		$	(11)	$	—	$	(28)	$	—	$	(158)	$	(106)	$	124	$	792	$	—	$	(3)

Mortgage loans	$	937	$	46	(5)(6)		$	—	$	—	$	(52)	$	—	$	(136)	$	(254)	$	147	$	688	$	26	$	—
Net derivatives	194		109		(5)		—		—		—		—		(119)		(10)		(12)		162		3		—
Long-term debt:
Of Fannie Mae:
Senior floating	$	(351)	$	(47)	(5)		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(398)	$	(47)	$	—
Of consolidated trusts	(201)		(8)		(5)(6)		—		—		—		(2)		19		200		(83)		(75)		(4)		—
Total long-term debt	$	(552)	$	(55)			$	—	$	—	$	—	$	(2)	$	19	$	200	$	(83)	$	(473)	$	(51)	$	—

(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.

(5)Gains (losses) are included in “Fair value gains (losses), net” in our consolidated statements of operations and comprehensive income.

(6)Gains (losses) are included in “Net interest income” in our consolidated statements of operations and comprehensive income.

(7)Gains (losses) are included in “Investment gains, net” in our consolidated statements of operations and comprehensive income

Fair Value Measurement Inputs and Valuation Techniques

The following tables display valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the reporting date.


	Fair Value Measurements as of December 31, 2021
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs(1)	Range(1)			Weighted - Average(1)(2)
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency(3)	$	57	Various
Available-for-sale securities:
Mortgage-related securities:
Agency(3)	379		Consensus
	52		Various
Total agency	431
Alt-A and subprime private-label securities	2		Various

Mortgage Revenue Bonds	94		Single Vendor	Spreads (bps)	9.3	-	49.4	27.2
	50		Various
Total mortgage revenue bonds	144
Other	175		Discounted Cash Flow	Spreads (bps)	409.0	-	434.0	422.0
	1		Various
Total other	176
Total available-for-sale securities	$	753
Net derivatives	$	152	Dealer Mark
	(21)		Discounted Cash Flow
Total net derivatives	$	131


	Fair Value Measurements as of December 31, 2020
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs(1)	Range(1)			Weighted - Average(1)(2)
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency(3)	$	95	Various


Available-for-sale securities:
Mortgage-related securities:
Agency(3)	97		Consensus
	98		Various
Total Agency	195
Alt-A and subprime private-label securities	2		Various

Mortgage revenue bonds	144		Single Vendor	Spreads (bps)	32.0	-	315.3	93.4
	72		Various


Total mortgage revenue bonds	216
Other	206		Discounted Cash Flow	Spreads (bps)	425.0	-	443.0	434.2
	29		Various

Total other	235
Total available-for-sale securities	$	648


















Net derivatives	$	203	Dealer Mark

	130		Discounted Cash Flow
Total net derivatives	$	333

(2)Unobservable inputs were weighted by the relative fair value of the instruments.

(3)Includes Fannie Mae and Freddie Mac securities.

The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis.


		Fair Value Measurements as of December 31,
	Valuation Techniques	2021		2020
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	201	$	754
	Single Vendor	1,383		333

Total mortgage loans held for sale, at lower of cost or fair value		1,584		1,087

Single-family mortgage loans held for investment, at amortized cost	Internal Model	867		979



Multifamily mortgage loans held for investment, at amortized cost	Appraisal	37		225

	Broker Price Opinion	118		40
	Internal Model	23		125

Total multifamily mortgage loans held for investment, at amortized cost		178		390

Acquired property, net:
Single-family	Accepted Offer	13		35
	Appraisal	73		89
	Internal Model	75		41
	Walk Forward	37		85
	Various	11		11
Total single-family		209		261




Multifamily	Various	34		25





Total nonrecurring assets at fair value		$	2,872	$	2,742

Fair Value of Financial Instruments

The following is a description of the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations.


Instruments	Valuation Techniques	Classification
U.S Treasury Securities	We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy.	Level 1
Trading Securities and Available-for-Sale Securities	We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy. Single Vendor: Uses one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, spreads) are disclosed in the table above. Consensus: Uses an average of two or more vendor prices for similar securities. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs (for example, spreads) are disclosed in the table above.	Level 2 and 3
	Discounted Cash Flow: In the absence of prices provided by third-party pricing services supported by observable market data, we estimate the fair value of a portion of our securities using a discounted cash flow technique that uses inputs such as default rates, prepayment speeds, loss severity and spreads based on market assumptions where available. For private-label securities, an increase in unobservable prepayment speeds in isolation would generally result in an increase in fair value, and an increase in unobservable spreads, severity rates or default rates in isolation would generally result in a decrease in fair value. For mortgage revenue bonds classified as Level 3 of the valuation hierarchy, an increase in unobservable spreads would result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of our recurring Level 3 securities above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
Mortgage Loans Held for Investment	Build-up: We derive the fair value of performing mortgage loans using a build-up valuation technique starting with the base value for our Fannie Mae MBS with similar characteristics and then add or subtract the fair value of the associated guaranty asset, guaranty obligation (“GO”) and master servicing arrangement. We set the GO equal to the estimated fair value we would receive if we were to issue our guaranty to an unrelated party in a stand-alone arm’s length transaction at the measurement date. The fair value of the GO is estimated based on our current guaranty pricing for loans underwritten after 2008 and our internal valuation models considering management’s best estimate of key loan characteristics for loans underwritten before 2008. Our performing loans are generally classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that unobservable inputs are significant, the loans are classified as Level 3 of the valuation hierarchy.	Level 2 and 3
	Consensus: Calculated through the extrapolation of indicative sample bids obtained from multiple active market participants plus the estimated value of any applicable mortgage insurance, the estimated fair value using the Consensus method represents an estimate of the prices we would receive if we were to sell these single-family nonperforming and certain reperforming loans in the whole loan market. The fair value of any mortgage insurance on a nonperforming or reperforming loan is estimated using product-specific pricing grids that have been derived from loan-level bids on whole loan transactions. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. We estimate the fair value for a portion of our senior-subordinated trust structures using the average of two or more vendor prices at the security level as a proxy for estimating loan fair value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.
	Single Vendor: We estimate the fair value of our reverse mortgages using the single vendor valuation technique. Internal Model: The internal model used to value collateral contains four sub-component models: 1) Location Model, 2) Neighborhood Model, 3) Automated Valuation Model (“AVM”) Imputation Model and 4) Final Valuation Model. These models consider characteristics of the property, neighborhood, local housing markets, underlying loan and home price growth to derive a final estimated value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.


Instruments	Valuation Techniques	Classification
Mortgage Loans Held for Investment	Appraisal: We use appraisals to estimate the fair value for a portion of our multifamily loans based on either estimated replacement cost, the present value of future cash flows, or sales of similar properties. Significant unobservable inputs include estimated replacement or construction costs, property net operating income, capitalization rates, and adjustments made to sales of comparable properties based on characteristics such as financing, conditions of sale, and physical characteristics of the property. Broker Price Opinion: We use broker price opinions to estimate the fair value for a portion of our multifamily loans. This technique uses both current property value and the property value adjusted for stabilization and market conditions. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. Asset Manager Estimate: This technique uses the net operating income and tax assessments of the specific property as well as Metropolitan Statistical Area-specific market capitalization rates and average per unit sales values to estimate property fair value.	Level 2 and 3
	An increase in prepayment speeds in isolation would generally result in an increase in the fair value of our mortgage loans classified as Level 3 of the valuation hierarchy, and an increase in severity rates, default rates or spreads in isolation would generally result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of the mortgage loans classified as Level 3 above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
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 our HFI loans and are described above in “Mortgage Loans Held for Investment.” To the extent that significant inputs are unobservable, the loans are classified within level 3 of the valuation hierarchy.	Level 2 and 3
Acquired Property, Net and Other Assets	Single-family acquired property valuation techniques Accepted Offer: An Offer to Purchase Real Estate that has been submitted by a potential purchaser of an acquired property and accepted by Fannie Mae in a pending sale. Appraisal: An appraisal is an estimate based on recent historical data of the value of a specific property by a certified or licensed appraiser. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s use of specific market research and a sales comparison approach that is similar to the appraisal process. This information, all of which is unobservable, is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value.	Level 3
	Appraisal and Broker Price Opinion Walk Forward (“Walk Forward”): We use these techniques to adjust appraisal and broker price opinion valuations for changing market conditions by applying a walk forward factor based on local price movements since the time the third-party value was obtained. Internal Model: We use an internal model to estimate fair value for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”
	Multifamily acquired property valuation techniques Appraisal: 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 Opinion: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Asset Manager Estimate: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”
Asset and Liability Derivative Instruments (collectively “Derivatives”)	The valuation process for the majority of our risk management derivatives uses observable market data provided by third-party sources, resulting in Level 2 classification of the valuation hierarchy. Single Vendor: We use one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Clearing House: We use the clearing house-provided value for interest-rate derivatives which are transacted through a clearing house. Internal Model: We use internal models to value interest-rate derivatives which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount cash flows to present value. Discounted Cash Flow: We use discounted cash flow to estimate fair value for credit enhancement derivatives related to CRT.	Level 2 and 3


Instruments	Valuation Techniques	Classification
Asset and Liability Derivative Instruments (collectively “Derivatives”)	Dealer Mark: Certain highly complex structured swaps primarily use a single dealer mark due to lack of transparency in the market and may be modeled using observable interest rates and volatility levels as well as significant unobservable assumptions, resulting in Level 3 classification of the valuation hierarchy. Mortgage commitment derivatives that use observable market data, quotes and actual transaction price levels adjusted for market movement are typically classified as Level 2 of the valuation hierarchy. To the extent mortgage commitment derivatives include adjustments for market movement that cannot be corroborated by observable market data, we classify them as Level 3 of the valuation hierarchy.	Level 2 and 3
Debt of Fannie Mae and Consolidated Trusts	We classify debt instruments that have quoted market prices in active markets for similar liabilities when traded as assets as Level 2 of the valuation hierarchy. For all valuation techniques used for debt instruments where there is limited activity or less transparency around these inputs to the valuation, these debt instruments are classified as Level 3 of the valuation hierarchy. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value for similar liabilities when traded as assets. Single Vendor: Uses a single vendor price that represents estimated fair value for these liabilities when traded as assets. Discounted Cash Flow: Uses spreads based on market assumptions where available. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Trading Securities and Available-for-Sale Securities.”	Level 2 and 3


	As of December 31, 2021
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents	$	108,631	$	64,531	$	44,100	$	—	$	—	$	108,631
Securities purchased under agreements to resell or similar arrangements	20,743		—		20,743		—		—		20,743
Trading securities	88,206		83,581		4,568		57		—		88,206
Available-for-sale securities	837		—		84		753		—		837
Mortgage loans held for sale	5,134		—		178		5,307		—		5,485
Mortgage loans held for investment, net of allowance for loan losses	3,963,108		—		3,796,917		209,090		—		4,006,007
Advances to lenders	8,414		—		8,413		1		—		8,414
Derivative assets at fair value	171		—		256		152		(237)		171
Guaranty assets and buy-ups	92		—		—		207		—		207
Total financial assets	$	4,195,336	$	148,112	$	3,875,259	$	215,567	$	(237)	$	4,238,701

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	2,795	$	—	$	2,795	$	—	$	—	$	2,795

Long-term debt:
Of Fannie Mae	198,097		—		205,142		799		—		205,941
Of consolidated trusts	3,957,299		—		3,951,537		32,644		—		3,984,181
Derivative liabilities at fair value	233		—		1,385		21		(1,173)		233
Guaranty obligations	101		—		—		101		—		101
Total financial liabilities	$	4,158,525	$	—	$	4,160,859	$	33,565	$	(1,173)	$	4,193,251


	As of December 31, 2020
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents	$	115,623	$	97,179	$	18,444	$	—	$	—	$	115,623
Securities purchased under agreements to resell or similar arrangements	28,200		—		28,200		—		—		28,200
Trading securities	136,542		130,456		5,991		95		—		136,542
Available-for-sale securities	1,697		—		1,049		648		—		1,697
Mortgage loans held for sale	5,197		—		116		5,502		—		5,618
Mortgage loans held for investment, net of allowance for loan losses	3,648,695		—		3,512,672		255,556		—		3,768,228
Advances to lenders	10,449		—		10,448		1		—		10,449
Derivative assets at fair value	1,225		—		1,748		382		(905)		1,225
Guaranty assets and buy-ups	115		—		—		258		—		258
Total financial assets	$	3,947,743	$	227,635	$	3,578,668	$	262,442	$	(905)	$	4,067,840

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	12,173	$	—	$	12,177	$	—	$	—	$	12,177

Long-term debt:
Of Fannie Mae	277,399		—		288,414		878		—		289,292
Of consolidated trusts	3,646,164		—		3,756,673		31,584		—		3,788,257
Derivative liabilities at fair value	1,495		—		2,441		49		(995)		1,495
Guaranty obligations	127		—		—		82		—		82
Total financial liabilities	$	3,937,358	$	—	$	4,059,705	$	32,593	$	(995)	$	4,091,303


Instruments	Description	Classification
Financial Instruments for which Fair Value Approximates Carrying Value	We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash and cash equivalents, the majority of advances to lenders, and securities sold/purchased under agreements to repurchase/resell.	Level 1 and 2
Securities Sold/Purchased Under Agreements to Repurchase/Resell	The carrying value for the majority of these specific instruments approximates the fair value due to the short-term nature and the negligible inherent credit risk, as they involve the exchange of collateral that is easily traded. Were we to calculate the fair value of these instruments, we would use observable inputs.	Level 2
Mortgage Loans Held for Sale	Loans are reported at the lower of cost or fair value in our consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are the same as for our HFI loans and are described under “Fair Value Measurement—Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table. To the extent that significant inputs are unobservable, the loans are classified within Level 3 of the valuation hierarchy.	Level 2 and 3
Mortgage Loans Held for Investment	For a description of loan valuation techniques, refer to “Fair Value Measurement—Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table. We measure the fair value of certain loans that are delivered under the Home Affordable Refinance Program® (“HARP®”) using a modified build-up approach while the loan is performing. Under this modified approach, we set the credit component of the consolidated loans (that is, the guaranty obligation) equal to the compensation we would currently receive for a loan delivered to us under the program because the total compensation for these loans is equal to their current exit price in the government-sponsored enterprise securitization market. If, subsequent to delivery, the refinanced loan becomes past due or is modified as a part of a troubled debt restructuring, the fair value of the guaranty obligation is then measured consistent with other loans that have similar characteristics.	Level 2 and 3
Advances to Lenders	The carrying value for the majority of our advances to lenders approximates the fair value due to the short-term nature and the negligible inherent credit risk. If we were to calculate the fair value of these instruments, we would use discounted cash flow models that use observable inputs such as spreads based on market assumptions, resulting in Level 2 classification. Advances to lenders also include loans that do not qualify for Fannie Mae MBS securitization and are valued using a discounted cash flow technique that uses estimated credit spreads of similar collateral and prepayment speeds that consider recent prepayment activity. We classify these valuations as Level 3 given that significant inputs are not observable or are determined by extrapolation of observable inputs.	Level 2 and 3
Guaranty Assets and Buy-ups	Guaranty assets related to our portfolio securitizations are recorded in our consolidated balance sheets at fair value on a recurring basis and are classified as Level 3. Guaranty assets in lender swap transactions are recorded in our consolidated balance sheets at the lower of cost or fair value. These assets, which are measured at fair value on a nonrecurring basis, are also classified as Level 3. We estimate the fair value of guaranty assets by using proprietary models to project cash flows based on management’s best estimate of key assumptions such as prepayment speeds and forward yield curves. Because guaranty assets are similar to an interest-only income stream, the projected cash flows are discounted at rates that consider the current spreads on interest-only swaps that reference Fannie Mae MBS and also liquidity considerations of the guaranty assets. The fair value of guaranty assets includes the fair value of any associated buy-ups.	Level 3
Guaranty Obligations	The fair value of all guaranty obligations, measured subsequent to their initial recognition, is our estimate of a hypothetical transaction price we would receive if we were to issue our guaranty to an unrelated party in a standalone arm’s-length transaction at the measurement date. The valuation methodology and inputs used in estimating the fair value of the guaranty obligations are described under “Fair Value Measurement—Mortgage loans held for investment—build-up” in the valuation techniques for assets and liabilities held at fair value.	Level 3

Fair Value Option

The following table displays the fair value and unpaid principal balance of the financial instruments for which we have made fair value elections.


	As of December 31,
	2021									2020
	Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts			Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts
	(Dollars in millions)
Fair value		$	4,964		$	2,381		$	21,735		$	6,490		$	3,728		$	24,586
Unpaid principal balance		4,601			2,197			19,314			6,046			3,518			21,408

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Fiscal Year Maturity

The following table summarizes by remaining maturity, non-cancelable future commitments related to loan and mortgage purchases, operating leases and other agreements.


	As of December 31, 2021
	Loans and Mortgage-Related Securities(1)		Operating Leases(2)		Other(3)
	(Dollars in millions)
2022	$	76,053	$	61	$	136
2023	—		79		119
2024	—		80		14
2025	—		81		9
2026	—		82		6
Thereafter	—		738		—
Total	$	76,053	$	1,121	$	284

(1)Primarily includes mortgage commitment derivatives.

(2)Includes amounts related to office buildings and equipment leases.

(3)Includes purchase commitments for certain telecommunications services, computer software and services, and other agreements and commitments.

Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended	12 Months Ended
	Sep. 08, 2008 USD ($) shares	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) segment shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Mar. 31, 2022 USD ($)	Jan. 01, 2020 USD ($)	Sep. 07, 2008 $ / shares
Related Parties [Line Items]
Number of reportable segments \| segment				2
Proceeds from issuance of common stock				$ 70,000
Liquidation preference		$ 163,700		163,700
Increase in net worth		$ 5,200
Proceeds from income tax refunds				27
TCCA fees				$ 3,071	$ 2,673	$ 2,432
Basis points of each dollar of unpaid principal balance		0.042%		0.042%
Affordable Housing Program obligation		35.00%		35.00%
Early lender funding advances, maximum term				60 days
Weighted average number of shares, contingently issuable (in shares) \| shares				4,700	4,700	4,600
Incremental common shares attributable to dilutive effect of conversion of preferred stock (in shares) \| shares				26	26	131
Accumulated deficit		$ (85,934)		$ (85,934)	$ (108,110)
ASU 2016-13
Related Parties [Line Items]
Accumulated deficit								$ (1,100)
US Treasury and Government
Related Parties [Line Items]
Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement		119,800		119,800
US Treasury
Related Parties [Line Items]
Aggregate funding received from US Treasury pursuant to the senior preferred stock purchase agreement		119,800		119,800
Total available funding from treasury pursuant to the senior preferred stock agreement		$ 113,900		113,900
Percentage of common shares attributable to warrants									79.90%
Common stock warrant exercise price (in dollars per share) \| $ / shares									$ 0.00001
Fair value of the warrant at issuance	$ 3,500
Home Affordable Modification Program administrative expense reimbursement				$ 17	19	$ 20
TCCA, increase of guarantee fee rate		0.10%		0.10%
TCCA fees				$ 3,071	2,673	2,432
US Treasury \| Other Expense
Related Parties [Line Items]
Affordable Housing Program assessments				209	211	98
Affordable Housing Program assessments paid				211	98
US Treasury \| Single-Family
Related Parties [Line Items]
Recognized TCCA fees that had not been remitted to Treasury as of period end		$ 801		801	697
Federal Housing Finance Agency
Related Parties [Line Items]
FHFA assessment fees/expense				140	139	121
Common Securitization Solutions
Related Parties [Line Items]
Payments to acquire equity method investments				$ 76	$ 88	$ 105
Forecast \| US Treasury
Related Parties [Line Items]
Aggregate liquidation preference of senior preferred stock							$ 168,900
Forecast \| US Treasury \| Other Expense
Related Parties [Line Items]
Affordable Housing Program assessments			$ 209
Series 2008-2
Related Parties [Line Items]
Stock issued (in shares) \| shares	1
Aggregate liquidation preference of senior preferred stock	$ 1,000

Consolidations and Transfers of Financial Assets - Types of VIEs (Details) $ in Millions	Dec. 31, 2021 USD ($)
Not Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, consolidated unpaid principal balance	$ 85

Consolidations and Transfers of Financial Assets - Transfers of Financial Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Transfers of Financial Assets [Line Items]
Portfolio securitizations: unpaid principal balance	$ 682,900,000,000	$ 745,200,000,000	$ 278,600,000,000
Proceeds from the initial sale of securities from portfolio securitizations	0	666,000,000	0
Unconsolidated VIEs
Transfers of Financial Assets [Line Items]
Retained interests: principal and interest received	558,000,000	700,000,000	$ 595,000,000
Unconsolidated VIEs \| Single Class MBS, REMIC & Megas
Transfers of Financial Assets [Line Items]
Retained interests: unpaid principal balance	1,100,000,000	1,700,000,000
Retained interest: fair value	$ 2,000,000,000	$ 2,900,000,000

Consolidations and Transfers of Financial Assets - Unconsolidated VIEs (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Variable Interest Entities [Line Items]
Trading, at fair value	$ 88,206	$ 136,542
Other assets	10,855	15,201
Other liabilities	(14,432)	(15,035)
Assets	4,229,166	3,985,749
Unpaid principal balance of mortgage loans	3,899,025	3,589,868
Multifamily
Variable Interest Entities [Line Items]
Unpaid principal balance of mortgage loans	403,452	373,722
Multifamily \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Unpaid principal balance of mortgage loans	403,500
Fannie Mae Securities \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Trading, at fair value	984	1,611
Available-for-sale securities	495	1,168
Non-Fannie Mae Securities \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Trading, at fair value	3,030	3,608
Available-for-sale securities	200	318
Mortgage-related securities \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Trading, at fair value	4,014	5,219
Available-for-sale securities	695	1,486
Other assets	35	41
Other liabilities	(41)	(67)
Net carrying amount	4,703	6,679
Maximum exposure to loss	220,000	146,000
Assets	250,000	180,000
Partnership Interest \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Net carrying amount	288	121
Maximum exposure to loss	292	126
Assets	3,700	2,600
Debt Securities \| Not Primary Beneficiary
Variable Interest Entities [Line Items]
Maximum exposure to loss	10,400	11,400
Assets	$ 10,400	$ 11,400

Mortgage Loans - Loans in Mortgage Portfolio (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	$ 3,899,025	$ 3,589,868
Cost basis and fair value adjustments, net	74,846	74,576
Allowance for loan losses for HFI loans	(5,629)	(10,552)
Total mortgage loans	3,968,242	3,653,892
Lower of cost or fair value adjustment at time of redesignation	(107)	153	$ (6)
Single-family loans sold, unpaid principal balance	16,977	9,519	19,737
Single-family loans sold, realized gain, net	1,624	831	1,238
Single-family
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	3,495,573	3,216,146
Single family loans redesignated from HFI to HFS, amortized cost	16,606	8,309	18,245
Lower of cost or fair value adjustment at time of redesignation	(372)	(291)	(995)
Allowance reversed at time of redesignation	1,605	963	2,484
Single family loans redesignated from HFS to HFI, amortized cost	5	144	28
Allowance established at time of redesignation	(1)	(15)	$ (1)
Mortgage loans in process of foreclosure	4,400	5,000
Multifamily
Loans in Mortgage Portfolio [Line Items]
Unpaid principal balance of mortgage loans	403,452	373,722
Mortgage loans
Loans in Mortgage Portfolio [Line Items]
Accrued interest receivable	$ 9,100	$ 9,800

Mortgage Loans - Aging Analysis (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Recorded investment	$ 3,973,024	$ 3,662,711
Loans 90 Days or More Delinquent and Accruing Interest	27,302	77,196
Nonaccrual Loans with No Allowance	7,179	7,455
30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	25,947	29,473
60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	5,758	10,570
Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	44,096	103,172
Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	75,801	143,215
Current
Financing Receivable, Past Due [Line Items]
Recorded investment	3,897,223	3,519,496
Single-family
Financing Receivable, Past Due [Line Items]
Recorded investment	3,566,819	3,285,285
Loans 90 Days or More Delinquent and Accruing Interest	26,985	76,586
Nonaccrual Loans with No Allowance	$ 7,072	$ 7,153
Single-family \| Minimum
Table Footnote
Serious delinquency: days past due	90 days	90 days
Single-family \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	$ 25,833	$ 28,333
Single-family \| 60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	5,758	10,570
Single-family \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	42,403	99,484
Single-family \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	73,994	138,387
Single-family \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	3,492,825	3,146,898
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Financing Receivable, Past Due [Line Items]
Recorded investment	2,969,105	2,742,203
Loans 90 Days or More Delinquent and Accruing Interest	24,236	68,526
Nonaccrual Loans with No Allowance	6,271	6,028
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	22,862	24,928
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| 60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	5,192	9,414
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	38,288	88,276
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	66,342	122,618
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	2,902,763	2,619,585
Single-family \| 15-year or less, amortizing fixed-rate
Financing Receivable, Past Due [Line Items]
Recorded investment	533,427	457,059
Loans 90 Days or More Delinquent and Accruing Interest	1,454	4,292
Nonaccrual Loans with No Allowance	193	240
Single-family \| 15-year or less, amortizing fixed-rate \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	2,024	1,987
Single-family \| 15-year or less, amortizing fixed-rate \| 60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	326	601
Single-family \| 15-year or less, amortizing fixed-rate \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	1,799	5,028
Single-family \| 15-year or less, amortizing fixed-rate \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	4,149	7,616
Single-family \| 15-year or less, amortizing fixed-rate \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	529,278	449,443
Single-family \| Adjustable-rate
Financing Receivable, Past Due [Line Items]
Recorded investment	26,342	31,441
Loans 90 Days or More Delinquent and Accruing Interest	287	907
Nonaccrual Loans with No Allowance	63	114
Single-family \| Adjustable-rate \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	161	268
Single-family \| Adjustable-rate \| 60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	36	97
Single-family \| Adjustable-rate \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	374	1,143
Single-family \| Adjustable-rate \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	571	1,508
Single-family \| Adjustable-rate \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	25,771	29,933
Single-family \| Other
Financing Receivable, Past Due [Line Items]
Recorded investment	37,945	54,582
Loans 90 Days or More Delinquent and Accruing Interest	1,008	2,861
Nonaccrual Loans with No Allowance	545	771
Single-family \| Other \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	786	1,150
Single-family \| Other \| 60 - 89 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	204	458
Single-family \| Other \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	1,942	5,037
Single-family \| Other \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	2,932	6,645
Single-family \| Other \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	35,013	47,937
Multifamily
Financing Receivable, Past Due [Line Items]
Recorded investment	406,205	377,426
Loans 90 Days or More Delinquent and Accruing Interest	317	610
Nonaccrual Loans with No Allowance	$ 107	302
Multifamily \| Minimum
Table Footnote
Serious delinquency: days past due	60 days
Multifamily \| Maximum
Table Footnote
Serious delinquency: days past due	89 days
Multifamily \| 30 - 59 Days Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	$ 114	1,140
Multifamily \| Seriously Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	1,693	3,688
Multifamily \| Total Delinquent
Financing Receivable, Past Due [Line Items]
Recorded investment	1,807	4,828
Multifamily \| Current
Financing Receivable, Past Due [Line Items]
Recorded investment	$ 404,398	$ 372,598

Mortgage Loans - Credit Quality Indicators - SF (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	$ 3,968,737	$ 3,659,247
Single-family
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,200,915	1,253,449
One fiscal year before	1,082,870	367,647
Two fiscal years before	207,663	178,798
Three fiscal years before	100,239	226,092
Four fiscal years before	135,670	272,831
Prior	829,967	972,993
Total loans held for investment	3,557,324	3,271,810
Single-family \| Less than or equal to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,001,159	978,509
One fiscal year before	1,040,601	277,248
Two fiscal years before	204,398	154,357
Three fiscal years before	98,924	220,388
Four fiscal years before	134,953	270,966
Prior	826,785	960,696
Total loans held for investment	3,306,820	2,862,164
Single-family \| Greater than 80% and less than or equal to 90%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	132,354	163,839
One fiscal year before	39,973	86,192
Two fiscal years before	2,712	23,574
Three fiscal years before	1,067	5,346
Four fiscal years before	632	1,635
Prior	1,972	7,288
Total loans held for investment	178,710	287,874
Single-family \| Greater than 90% and less than or equal to 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	67,381	111,073
One fiscal year before	2,284	4,200
Two fiscal years before	544	832
Three fiscal years before	231	270
Four fiscal years before	60	137
Prior	597	2,608
Total loans held for investment	71,097	119,120
Single-family \| Greater than 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	21	28
One fiscal year before	12	7
Two fiscal years before	9	35
Three fiscal years before	17	88
Four fiscal years before	25	93
Prior	613	2,401
Total loans held for investment	697	2,652
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	994,858	1,061,427
One fiscal year before	923,269	323,414
Two fiscal years before	181,151	160,137
Three fiscal years before	89,126	188,912
Four fiscal years before	111,760	222,969
Prior	668,941	785,344
Total loans held for investment	2,969,105	2,742,203
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Less than or equal to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	798,830	794,156
One fiscal year before	881,290	233,994
Two fiscal years before	177,909	135,849
Three fiscal years before	87,825	183,315
Four fiscal years before	111,059	221,172
Prior	666,327	775,636
Total loans held for investment	2,723,240	2,344,122
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Greater than 80% and less than or equal to 90%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	129,340	157,500
One fiscal year before	39,689	85,227
Two fiscal years before	2,689	23,440
Three fiscal years before	1,056	5,270
Four fiscal years before	622	1,592
Prior	1,687	5,958
Total loans held for investment	175,083	278,987
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Greater than 90% and less than or equal to 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	66,667	109,743
One fiscal year before	2,278	4,186
Two fiscal years before	544	820
Three fiscal years before	229	250
Four fiscal years before	57	124
Prior	460	1,994
Total loans held for investment	70,235	117,117
Single-family \| 20- and 30-year or more, amortizing fixed-rate \| Greater than 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	21	28
One fiscal year before	12	7
Two fiscal years before	9	28
Three fiscal years before	16	77
Four fiscal years before	22	81
Prior	467	1,756
Total loans held for investment	547	1,977
Single-family \| 15-year or less, amortizing fixed-rate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	199,318	188,797
One fiscal year before	157,340	42,194
Two fiscal years before	25,406	15,809
Three fiscal years before	9,600	31,518
Four fiscal years before	20,720	46,102
Prior	121,043	132,639
Total loans held for investment	533,427	457,059
Single-family \| 15-year or less, amortizing fixed-rate \| Less than or equal to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	196,163	181,418
One fiscal year before	157,076	41,374
Two fiscal years before	25,390	15,768
Three fiscal years before	9,595	31,497
Four fiscal years before	20,715	46,088
Prior	121,027	132,596
Total loans held for investment	529,966	448,741
Single-family \| 15-year or less, amortizing fixed-rate \| Greater than 80% and less than or equal to 90%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	2,576	6,105
One fiscal year before	259	811
Two fiscal years before	16	35
Three fiscal years before	4	14
Four fiscal years before	2	8
Prior	7	20
Total loans held for investment	2,864	6,993
Single-family \| 15-year or less, amortizing fixed-rate \| Greater than 90% and less than or equal to 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	579	1,274
One fiscal year before	5	9
Two fiscal years before	0	3
Three fiscal years before	1	4
Four fiscal years before	1	3
Prior	4	10
Total loans held for investment	590	1,303
Single-family \| 15-year or less, amortizing fixed-rate \| Greater than 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	0
Two fiscal years before	0	3
Three fiscal years before	0	3
Four fiscal years before	2	3
Prior	5	13
Total loans held for investment	7	22
Single-family \| Adjustable-rate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	6,739	3,225
One fiscal year before	2,261	1,994
Two fiscal years before	1,072	2,492
Three fiscal years before	1,240	4,784
Four fiscal years before	2,526	2,683
Prior	12,504	16,263
Total loans held for investment	26,342	31,441
Single-family \| Adjustable-rate \| Less than or equal to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	6,166	2,935
One fiscal year before	2,235	1,839
Two fiscal years before	1,065	2,412
Three fiscal years before	1,236	4,765
Four fiscal years before	2,524	2,678
Prior	12,501	16,248
Total loans held for investment	25,727	30,877
Single-family \| Adjustable-rate \| Greater than 80% and less than or equal to 90%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	438	234
One fiscal year before	25	152
Two fiscal years before	7	79
Three fiscal years before	4	19
Four fiscal years before	2	5
Prior	3	12
Total loans held for investment	479	501
Single-family \| Adjustable-rate \| Greater than 90% and less than or equal to 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	135	56
One fiscal year before	1	3
Two fiscal years before	0	1
Three fiscal years before	0	0
Four fiscal years before	0	0
Prior	0	2
Total loans held for investment	136	62
Single-family \| Adjustable-rate \| Greater than 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	0
Two fiscal years before	0	0
Three fiscal years before	0	0
Four fiscal years before	0	0
Prior	0	1
Total loans held for investment	0	1
Single-family \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	45
Two fiscal years before	34	360
Three fiscal years before	273	878
Four fiscal years before	664	1,077
Prior	27,479	38,747
Total loans held for investment	28,450	41,107
Single-family \| Other \| Less than or equal to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	41
Two fiscal years before	34	328
Three fiscal years before	268	811
Four fiscal years before	655	1,028
Prior	26,930	36,216
Total loans held for investment	27,887	38,424
Single-family \| Other \| Greater than 80% and less than or equal to 90%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	2
Two fiscal years before	0	20
Three fiscal years before	3	43
Four fiscal years before	6	30
Prior	275	1,298
Total loans held for investment	284	1,393
Single-family \| Other \| Greater than 90% and less than or equal to 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	2
Two fiscal years before	0	8
Three fiscal years before	1	16
Four fiscal years before	2	10
Prior	133	602
Total loans held for investment	136	638
Single-family \| Other \| Greater than 100%
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One fiscal year before	0	0
Two fiscal years before	0	4
Three fiscal years before	1	8
Four fiscal years before	1	9
Prior	141	631
Total loans held for investment	143	652
Single-family \| Government
Financing Receivable, Credit Quality Indicator [Line Items]
Total recorded investment	$ 9,500	$ 13,500

Mortgage Loans - Credit Quality Indicators - MF (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	$ 3,968,737	$ 3,659,247
Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	59,007	72,014
One fiscal year before	80,197	69,337
Two fiscal years before	66,566	63,616
Three fiscal years before	57,666	53,523
Four fiscal years before	48,128	44,753
Prior	94,641	74,183
Total loans held for investment	406,205	377,426
Non-classified \| Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	58,986	71,977
One fiscal year before	79,602	68,296
Two fiscal years before	64,278	62,087
Three fiscal years before	55,552	50,907
Four fiscal years before	44,037	43,174
Prior	87,549	70,933
Total loans held for investment	390,004	367,374
Classified \| Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	21	37
One fiscal year before	595	1,041
Two fiscal years before	2,288	1,529
Three fiscal years before	2,114	2,616
Four fiscal years before	4,091	1,579
Prior	7,092	3,250
Total loans held for investment	16,201	10,052
Doubtful \| Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	$ 1	$ 1

Mortgage Loans - TDRs (Details) $ in Millions	12 Months Ended
Mortgage Loans - TDRs (Details) $ in Millions	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Average term extension of a single-family modified loan	145 months	163 months	162 months
Average interest rate reduction of a single-family modified loan	0.57%	0.37%	0.13%
Number of loans troubled debt restructurings activity \| contract	12,620	35,049	51,870
Amortized cost troubled debt restructurings activity \| $	$ 1,883	$ 5,665	$ 8,146
Single-family
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	12,620	35,049	51,859
Amortized cost troubled debt restructurings activity \| $	$ 1,883	$ 5,665	$ 8,090
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	10,815	29,938	43,283
Amortized cost troubled debt restructurings activity \| $	$ 1,717	$ 5,125	$ 7,140
Single-family \| 15-year or less, amortizing fixed-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	1,165	2,956	4,762
Amortized cost troubled debt restructurings activity \| $	$ 93	$ 257	$ 424
Single-family \| Adjustable-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	116	467	813
Amortized cost troubled debt restructurings activity \| $	$ 17	$ 72	$ 123
Single-family \| Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	524	1,688	3,001
Amortized cost troubled debt restructurings activity \| $	$ 56	$ 211	$ 403
Multifamily
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings activity \| contract	0	0	11
Amortized cost troubled debt restructurings activity \| $	$ 0	$ 0	$ 56

Mortgage Loans - TDRs with Sub Defaults (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	9,243	15,586	17,851
Recorded investment troubled debt restructurings subsequent default \| $	$ 1,510	$ 2,814	$ 2,758
Single-family
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	9,243	15,582	17,849
Recorded investment troubled debt restructurings subsequent default \| $	$ 1,510	$ 2,798	$ 2,740
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	7,799	14,127	15,189
Recorded investment troubled debt restructurings subsequent default \| $	$ 1,302	$ 2,578	$ 2,366
Single-family \| 15-year or less, amortizing fixed-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	489	148	594
Recorded investment troubled debt restructurings subsequent default \| $	$ 37	$ 10	$ 45
Single-family \| Adjustable-rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	33	16	91
Recorded investment troubled debt restructurings subsequent default \| $	$ 5	$ 2	$ 14
Single-family \| Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	922	1,291	1,975
Recorded investment troubled debt restructurings subsequent default \| $	$ 166	$ 208	$ 315
Multifamily
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans troubled debt restructurings subsequent default \| contract	0	4	2
Recorded investment troubled debt restructurings subsequent default \| $	$ 0	$ 16	$ 18

Mortgage Loans - Nonaccrual Loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Amortized cost, nonaccrual loans	$ 20,496	$ 28,574	$ 27,981
Interest income recognized, nonaccrual loans	328	583
Single-family
Accrued interest receivable written off	163	206
Amortized cost, nonaccrual loans	19,237	26,505	27,546
Interest income recognized, nonaccrual loans	314	524
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Amortized cost, nonaccrual loans	17,599	22,907	23,427
Interest income recognized, nonaccrual loans	292	461
Single-family \| 15-year or less, amortizing fixed-rate
Amortized cost, nonaccrual loans	430	853	858
Interest income recognized, nonaccrual loans	6	15
Single-family \| Adjustable-rate
Amortized cost, nonaccrual loans	107	270	288
Interest income recognized, nonaccrual loans	1	5
Single-family \| Other
Amortized cost, nonaccrual loans	1,101	2,475	2,973
Interest income recognized, nonaccrual loans	15	43
Multifamily
Accrued interest receivable written off	1	19
Amortized cost, nonaccrual loans	1,259	2,069	$ 435
Interest income recognized, nonaccrual loans	$ 14	$ 59

Allowance for Loan Losses (Details) - USD ($) $ in Millions	12 Months Ended
Allowance for Loan Losses (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for Loan Losses [Roll Forward]
Beginning balance	$ (10,552)	$ (9,016)	$ (14,203)
Benefit (provision) for loan losses	5,022	(466)	3,961
Write-offs	476	593	1,307
Recoveries	(468)	(94)	(75)
Other	(107)	153	(6)
Ending balance	(5,629)	(10,552)	(9,016)
Transition impact of the adoption of the CECL standard
Allowance for Loan Losses [Roll Forward]
Beginning balance	0	(1,722)
Ending balance		0	(1,722)
Single-family
Allowance for Loan Losses [Roll Forward]
Beginning balance	(9,344)	(8,759)	(13,969)
Benefit (provision) for loan losses	4,503	127	3,988
Write-offs	417	457	1,299
Recoveries	(419)	(93)	(71)
Other	(107)	153	(6)
Ending balance	(4,950)	(9,344)	(8,759)
Single-family \| Transition impact of the adoption of the CECL standard
Allowance for Loan Losses [Roll Forward]
Beginning balance	0	(1,229)
Ending balance		0	(1,229)
Multifamily
Allowance for Loan Losses [Roll Forward]
Beginning balance	(1,208)	(257)	(234)
Benefit (provision) for loan losses	519	(593)	(27)
Write-offs	59	136	8
Recoveries	(49)	(1)	(4)
Ending balance	(679)	(1,208)	(257)
Multifamily \| Transition impact of the adoption of the CECL standard
Allowance for Loan Losses [Roll Forward]
Beginning balance	$ 0	(493)
Ending balance		$ 0	$ (493)

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

Investments in Securities - Investments In Trading Securities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	$ 88,206	$ 136,542
Consolidated Trusts
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	593	793
Mortgage-related securities
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	4,606	6,013
Fannie Mae
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	1,576	2,404
Other agency
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	2,893	3,451
Private-label and other mortgage securities
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	137	158
Non-mortgage-related securities
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	83,600	130,529
U.S. Treasury securities
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	83,581	130,456
Other securities
Schedule of Investments in Trading Securities [Line Items]
Trading, at fair value	$ 19	$ 73

Investments in Securities - Schedule of Trading Securities Gains (Losses), Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Net trading gains (losses)	$ (1,060)	$ 513	$ 322
Net trading gains (losses) recognized in the period related to securities still held at period end	$ (997)	$ 252	$ 238

Investments in Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 827.0	$ 1,606.0
Allowance for credit losses	0.0	(3.0)
Gross unrealized gains	24.0	106.0
Gross unrealized losses	(14.0)	(12.0)
Available-for-sale	837.0	1,697.0
Accrued interest	2.0	6.0
Maximum
Debt Securities, Available-for-sale [Line Items]
Allowance for credit losses	(0.5)
Fannie Mae
Debt Securities, Available-for-sale [Line Items]
Amortized cost	492.0	1,094.0
Allowance for credit losses	0.0	0.0
Gross unrealized gains	14.0	86.0
Gross unrealized losses	(11.0)	(12.0)
Available-for-sale	495.0	1,168.0
Other agency
Debt Securities, Available-for-sale [Line Items]
Amortized cost	12.0	59.0
Allowance for credit losses	0.0	0.0
Gross unrealized gains	0.0	6.0
Gross unrealized losses	0.0	0.0
Available-for-sale	12.0	65.0
Private-label and other mortgage securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	3.0	4.0
Allowance for credit losses	0.0	0.0
Gross unrealized gains	2.0	2.0
Gross unrealized losses	0.0	0.0
Available-for-sale	5.0	6.0
Mortgage revenue bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	142.0	211.0
Allowance for credit losses	0.0	(3.0)
Gross unrealized gains	5.0	8.0
Gross unrealized losses	(3.0)	0.0
Available-for-sale	144.0	216.0
Other mortgage-related securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	178.0	238.0
Allowance for credit losses	0.0	0.0
Gross unrealized gains	3.0	4.0
Gross unrealized losses	0.0	0.0
Available-for-sale	$ 181.0	$ 242.0

Investments in Securities - Available-for-sale Securities Gains (Losses) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	$ (8)	$ (1)
Less than 12 consecutive months, fair value	228	40
12 consecutive months or longer, gross unrealized losses	(6)	(11)
12 consecutive months or longer, fair value	102	94
Gross realized gains	59	57	$ 265
Proceeds from sales of available-for-sale securities	582	361	537
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	9	74	97
Net unrealized gains (losses) on AFS securities for which we have recorded an allowance for credit losses	(2)	0
Net unrealized gains (losses) on AFS securities for which we have recorded OTTI			0
Other	31	42	34
Accumulated other comprehensive income	38	116	131
Other than temporary impairment, credit losses recognized in earnings			$ 36
Fannie Mae
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	(5)	(1)
Less than 12 consecutive months, fair value	225	40
12 consecutive months or longer, gross unrealized losses	(6)	(11)
12 consecutive months or longer, fair value	102	94
Mortgage revenue bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	(3)	0
Less than 12 consecutive months, fair value	3	0
12 consecutive months or longer, gross unrealized losses	0	0
12 consecutive months or longer, fair value	$ 0	$ 0

Investments in Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	$ 827	$ 1,606
Amortized cost, one year or less	4
Amortized cost, after one year through five years	24
Amortized cost, after five years through ten years	27
Amortized cost, after ten years	772
Total fair value	837	1,697
Fair value, one year or less	4
Fair value, after one year through five years	25
Fair value, after five years through ten years	29
Fair value, after ten years	$ 779
Weighted average yield	5.32%
Weighted average yield, one year or less	6.09%
Weighted average yield, after one year through five years	6.66%
Weighted average yield, after five years through ten years	7.75%
Weighted average yield, after ten years	5.19%
Fannie Mae
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	$ 492	1,094
Amortized cost, one year or less	0
Amortized cost, after one year through five years	3
Amortized cost, after five years through ten years	11
Amortized cost, after ten years	478
Total fair value	495	1,168
Fair value, one year or less	0
Fair value, after one year through five years	3
Fair value, after five years through ten years	12
Fair value, after ten years	480
Other agency
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	12	59
Amortized cost, one year or less	0
Amortized cost, after one year through five years	0
Amortized cost, after five years through ten years	1
Amortized cost, after ten years	11
Total fair value	12	65
Fair value, one year or less	0
Fair value, after one year through five years	0
Fair value, after five years through ten years	1
Fair value, after ten years	11
Private-label and other mortgage securities
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	3	4
Amortized cost, one year or less	0
Amortized cost, after one year through five years	0
Amortized cost, after five years through ten years	2
Amortized cost, after ten years	1
Total fair value	5	6
Fair value, one year or less	0
Fair value, after one year through five years	0
Fair value, after five years through ten years	2
Fair value, after ten years	3
Mortgage revenue bonds
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	142	211
Amortized cost, one year or less	4
Amortized cost, after one year through five years	21
Amortized cost, after five years through ten years	10
Amortized cost, after ten years	107
Total fair value	144	216
Fair value, one year or less	4
Fair value, after one year through five years	22
Fair value, after five years through ten years	10
Fair value, after ten years	108
Other mortgage-related securities
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturity
Amortized cost	178	238
Amortized cost, one year or less	0
Amortized cost, after one year through five years	0
Amortized cost, after five years through ten years	3
Amortized cost, after ten years	175
Total fair value	181	$ 242
Fair value, one year or less	0
Fair value, after one year through five years	0
Fair value, after five years through ten years	4
Fair value, after ten years	$ 177

Financial Guarantees (Details) - USD ($) $ in Millions	12 Months Ended
Financial Guarantees (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financial Guarantees and Maximum Recovery [Line Items]
Contractual terms of our guarantees	31 years
Maximum exposure	$ 14,156	$ 16,252
Guaranty obligation	101	127
Maximum recovery	5,743	6,664
Unconsolidated Fannie Mae MBS \| Unconsolidated VIEs
Financial Guarantees and Maximum Recovery [Line Items]
Maximum exposure	3,733	4,424
Guaranty obligation	16	18
Maximum recovery	3,626	4,226
Other guaranty arrangements \| Unconsolidated VIEs
Financial Guarantees and Maximum Recovery [Line Items]
Maximum exposure	10,423	11,828
Guaranty obligation	85	109
Maximum recovery	2,117	2,438
Other agency \| Unconsolidated VIEs
Financial Guarantees and Maximum Recovery [Line Items]
Freddie Mac collateral included in Fannie Mae commingled security	$ 212,300	$ 137,300

Short-Term and Long-Term Debt - Short-Term Debt (Details) - Fannie Mae - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Short-Term Debt [Line Items]
Short-term debt, outstanding	$ 2,795	$ 12,173
Short-term debt, weighted-average interest rate	0.03%	0.18%

Short-Term and Long-Term Debt - Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 4,155,396	$ 3,923,563
Long-term debt, weighted-average interest rate	1.88%	1.85%
Fannie Mae
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 198,097	$ 277,399
Long-term debt, weighted-average interest rate	1.55%	1.34%
Net unamortized discount, fair value adjustments and other cost basis adjustments	$ 1,600	$ 392
Fannie Mae \| Senior Fixed
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 134,975	$ 161,916
Long-term debt, weighted-average interest rate	1.78%	1.69%
Fannie Mae \| Benchmark notes and bonds
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 89,618	$ 106,691
Long-term debt, weighted-average interest rate	2.13%	2.03%
Fannie Mae \| Medium-term notes
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 38,312	$ 48,524
Long-term debt, weighted-average interest rate	0.60%	0.63%
Fannie Mae \| Other
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 7,045	$ 6,701
Long-term debt, weighted-average interest rate	3.73%	3.90%
Fannie Mae \| Senior floating
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 63,122	$ 115,483
Long-term debt, weighted-average interest rate	1.05%	0.86%
Fannie Mae \| Medium-term notes
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 51,583	$ 100,089
Long-term debt, weighted-average interest rate	0.32%	0.35%
Fannie Mae \| Connecticut Avenue Securities
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 11,166	$ 14,978
Long-term debt, weighted-average interest rate	4.30%	4.16%
Fannie Mae \| Other
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 373	$ 416
Long-term debt, weighted-average interest rate	7.17%	7.75%
Consolidated Trusts
Long-Term Debt [Line Items]
Long-term debt, outstanding	$ 3,957,299	$ 3,646,164
Long-term debt, weighted-average interest rate	1.89%	1.88%

Short-Term and Long-Term Debt - Characteristics of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Long-Term Debt by Year of Maturity [Abstract]
Total long-term debt	$ 4,155,396	$ 3,923,563
Assuming Callable Debt Redeemed at Next Available Call Date
Long-Term Debt by Year of Maturity [Abstract]
Total long-term debt	4,155,396
Fannie Mae
Long-Term Debt [Line Items]
Face amount	202,500	290,000
Long-Term Debt by Year of Maturity [Abstract]
2022	65,617
2023	23,255
2024	18,817
2025	38,141
2026	9,598
Thereafter	42,669
Total long-term debt	198,097	277,399
Fannie Mae \| Zero-coupon debt
Long-Term Debt [Line Items]
Face amount	$ 3,200	$ 5,100
Effective interest rate	0.66%	0.50%
Fannie Mae \| Callable
Long-Term Debt [Line Items]
Outstanding debt	$ 47,000	$ 57,500
Fannie Mae \| Assuming Callable Debt Redeemed at Next Available Call Date
Long-Term Debt by Year of Maturity [Abstract]
2022	100,564
2023	20,856
2024	14,169
2025	21,614
2026	7,195
Thereafter	33,699
Total long-term debt	198,097
Consolidated Trusts
Long-Term Debt by Year of Maturity [Abstract]
Total long-term debt	3,957,299	$ 3,646,164
Consolidated Trusts \| Assuming Callable Debt Redeemed at Next Available Call Date
Long-Term Debt by Year of Maturity [Abstract]
Total long-term debt	$ 3,957,299

Derivative Instruments - Schedule of Notional and Fair Value Position (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Notional amount	$ 366,384	$ 739,179
Asset Derivatives
Netting adjustment	(237)	(905)
Derivative assets	171	1,225
Liability Derivatives
Netting adjustment	1,173	995
Derivatives liabilities at fair value	(233)	(1,495)
Table Footnote
Cash collateral posted for derivative instruments	966	658
Cash collateral received for derivative instruments	30	568
Total risk management derivatives portfolio
Derivative [Line Items]
Notional amount	164,742	302,790
Asset Derivatives
Netting adjustment	(237)	(905)
Derivative assets	2	57
Liability Derivatives
Netting adjustment	1,173	995
Derivatives liabilities at fair value	(15)	(20)
Total risk management derivatives portfolio \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	119,709	302,790
Asset Derivatives
Derivative assets, gross	239	962
Liability Derivatives
Derivative liabilities, gross	(1,188)	(1,015)
Total risk management derivatives portfolio \| Fair Value Hedging \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	45,033	0
Asset Derivatives
Derivative assets, gross	0	0
Liability Derivatives
Derivative liabilities, gross	0	0
Pay-fixed \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	56,817	99,822
Asset Derivatives
Derivative assets, gross	0	3
Liability Derivatives
Derivative liabilities, gross	0	(684)
Pay-fixed \| Fair Value Hedging \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	4,347	0
Asset Derivatives
Derivative assets, gross	0	0
Liability Derivatives
Derivative liabilities, gross	0	0
Receive-fixed \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	56,874	126,234
Asset Derivatives
Derivative assets, gross	0	314
Liability Derivatives
Derivative liabilities, gross	(1,131)	(137)
Receive-fixed \| Fair Value Hedging \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	40,686	0
Asset Derivatives
Derivative assets, gross	0	0
Liability Derivatives
Derivative liabilities, gross	0	0
Basis \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	250	250
Asset Derivatives
Derivative assets, gross	152	203
Liability Derivatives
Derivative liabilities, gross	0	0
Foreign currency \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	336	476
Asset Derivatives
Derivative assets, gross	25	59
Liability Derivatives
Derivative liabilities, gross	(34)	(60)
Pay-fixed swaption \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	4,341	7,555
Asset Derivatives
Derivative assets, gross	52	37
Liability Derivatives
Derivative liabilities, gross	(2)	(118)
Receive-fixed swaption \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	1,091	4,055
Asset Derivatives
Derivative assets, gross	10	346
Liability Derivatives
Derivative liabilities, gross	(21)	(16)
Futures \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	0	64,398
Asset Derivatives
Derivative assets, gross	0	0
Liability Derivatives
Derivative liabilities, gross	0	0
Mortgage commitment derivatives
Derivative [Line Items]
Notional amount	182,386	408,192
Asset Derivatives
Netting adjustment	0	0
Derivative assets	169	989
Liability Derivatives
Netting adjustment	0	0
Derivatives liabilities at fair value	(197)	(1,426)
Mortgage commitments to purchase whole loans
Derivative [Line Items]
Notional amount	13,192	35,343
Asset Derivatives
Derivative assets	17	145
Liability Derivatives
Derivatives liabilities at fair value	(5)	0
Forward contracts to purchase mortgage-related securities
Derivative [Line Items]
Notional amount	58,021	144,822
Asset Derivatives
Derivative assets	83	844
Liability Derivatives
Derivatives liabilities at fair value	(34)	0
Forward contracts to sell mortgage-related securities
Derivative [Line Items]
Notional amount	111,173	228,027
Asset Derivatives
Derivative assets	69	0
Liability Derivatives
Derivatives liabilities at fair value	(158)	(1,426)
Credit enhancement derivatives
Derivative [Line Items]
Notional amount	19,256	28,197
Asset Derivatives
Derivative assets	0	179
Liability Derivatives
Derivatives liabilities at fair value	$ (21)	$ (49)

Derivative Instruments - FV Gains and Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	$ 558	$ (2,832)	$ (2,110)
Net accrual of periodic settlements	29,587	24,866	21,293
Pay-fixed
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	2,207	(2,764)	(3,964)
Receive-fixed
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	(1,783)	2,226	3,685
Basis
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	(51)	43	46
Foreign currency
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	(26)	23	24
Pay-fixed swaption
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	38	(146)	(380)
Receive-fixed swaption
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	(217)	595	117
Futures
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	1	(76)	273
Risk management derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	185	(360)	(1,032)
Net accrual of periodic settlements	16	(261)	(833)
Mortgage commitment derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	551	(2,654)	(1,043)
Credit enhancement derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative fair value gains (losses), net	$ (178)	$ 182	$ (35)

Derivative Instruments - Effect of Fair Value Hedge Accounting (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Mortgage loans	$ 98,930	$ 106,316	$ 117,374
Long-term debt interest expense	(70,084)	$ (82,521)	$ (98,388)
Interest Rate Risk On Held-for-Investment Mortgage Loan \| Interest Income
Derivative [Line Items]
Net impact of hedged mortgage assets and debt	140
Discontinued hedge-related basis adjustment amortization	(6)
Derivatives designated as hedging instruments	(145)
Interest accruals on derivative hedging instruments	(12)
Gains (losses) recognized in net interest income on fair value hedging relationships	(23)
Interest Rate Risk On Debt \| Interest Expense
Derivative [Line Items]
Net impact of hedged mortgage assets and debt	1,370
Discontinued hedge-related basis adjustment amortization	(89)
Derivatives designated as hedging instruments	(1,308)
Interest accruals on derivative hedging instruments	223
Gains (losses) recognized in net interest income on fair value hedging relationships	$ 196

Derivative Instruments - Hedged Items in Fair Value Hedging Relationships (Details) $ in Millions	Dec. 31, 2021 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Hedged asset, carrying amount	$ 174,080
Hedged asset, total basis adjustments	134
Hedged asset, discontinued fair value, remaining adjustments	134
Closed portfolio, amortized cost	56,786
Closed portfolio, designated UPB	4,389
Hedged liability, carrying amount	(72,174)
Hedged liability, total basis adjustments	1,281
Hedged liability, discontinued fair value, remaining adjustments	$ 1,281

Income Taxes - Provision for Federal Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Provision (Benefit)
Current income tax benefit (provision)	$ (5,521)	$ (3,803)	$ (2,089)
Deferred income tax provision (provision)	(252)	729	(1,328)
Provision for federal income taxes	$ (5,773)	$ (3,074)	$ (3,417)
Effective Income Tax Rate Reconciliation
Statutory corporate tax rate	21.00%	21.00%	21.00%
Equity investments in affordable housing projects	(0.10%)	(0.10%)	(0.20%)
Change in unrecognized tax benefits	0.00%	0.00%	(1.20%)
Other	(0.20%)	(0.20%)	(0.20%)
Effective tax rate	20.70%	20.70%	19.40%
Unrecognized tax benefits, favorable impact			$ 205

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Mortgage and mortgage-related assets	$ 7,547	$ 8,241
Allowance for loan losses and basis in acquired property, net	1,060	1,798
Derivative instruments	778	602
Partnership and other equity investments	88	129
Interest-only securities	3,977	2,561
Total deferred tax assets	13,450	13,331
Deferred tax liabilities:
Unrealized gains on AFS securities, net	2	20
Other, net	733	364
Total deferred tax liabilities	735	384
Deferred tax assets, net	$ 12,715	$ 12,947

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2019
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0	$ 0	$ 0	$ 416,000,000
Unrecognized tax benefits, decrease in prior year tax positions	$ 416,000,000

Segment Reporting - Narrative (Details)	12 Months Ended
Segment Reporting - Narrative (Details)	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting - Schedule of Assets by Segment (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 4,229,166	$ 3,985,749
Operating Segments \| Single-Family
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	3,782,447	3,569,130
Operating Segments \| Multifamily
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 446,719	$ 416,619

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124433192&loc=SL2890621-112765

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (bb)
-URI http://asc.fasb.org/extlink&oid=123419778&loc=d3e5710-111685

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 25
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=116870748&loc=SL6758485-165988

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599