0000310522-24-000184 | 10-K | XBRL Viewer | Federal National Mortgage Association Fannie MAE

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Investments in Securities - Available-for-sale Securities Gains (Losses) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	$ (3)	$ (13)
Less than 12 consecutive months, fair value	66	169
12 consecutive months or longer, gross unrealized losses	(26)	(10)
12 consecutive months or longer, fair value	238	159
Agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	(3)	(12)
Less than 12 consecutive months, fair value	66	161
12 consecutive months or longer, gross unrealized losses	(26)	(10)
12 consecutive months or longer, fair value	238	159
Other mortgage-related securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 consecutive months, gross unrealized losses	0	(1)
Less than 12 consecutive months, fair value	0	8
12 consecutive months or longer, gross unrealized losses	0	0
12 consecutive months or longer, fair value	$ 0	$ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2023
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.
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 period consolidated financial statements.
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, the 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, such as control over the servicing of the collateral held by the VIE. Fannie Mae’s controlling interest generally arises from arrangements with VIEs. We consolidate VIEs when we have a controlling financial interest in the VIE and are therefore considered the primary beneficiary of the VIE. We are the primary beneficiary of a VIE when we have both the power to direct the activities of the VIE that most significantly impact its economic performance and exposure to losses or benefits of the VIE that could potentially be significant to the VIE. The primary beneficiary determination may change over time as our interest in the VIE changes. Therefore, we evaluate whether we are the primary beneficiary of VIEs in which we have variable interests at both inception and on an ongoing basis. Generally, the assets of our consolidated VIEs can be used only to settle obligations of the VIE, and the creditors of our consolidated VIEs do not have recourse to Fannie Mae, except when we provide a guarantee to the VIE. The measurement of assets and liabilities of VIEs that we consolidate depends on whether we are the transferor of assets into a VIE. 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 the assets and no gain or loss is recognized. We are the transferor to the VIEs created during our portfolio securitizations; this execution occurs when we purchase 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. When we are not the transferor of assets into a VIE that we consolidate, we recognize the assets and liabilities of the VIE in our consolidated financial statements at fair value and 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 VIEs established under our lender swap program, we do not recognize a gain or loss if the VIEs are 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 (losses), net” in our consolidated statements of operations and comprehensive income. A lender swap transaction occurs when a mortgage lender delivers a pool of loans to us, which we immediately deposit into an MBS trust. 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 (losses), net” in our consolidated statements of operations and comprehensive income. We do not consolidate VIEs when we are not deemed to be the primary beneficiary.
Transfers of Financial Assets	Transfers of Financial Assets We evaluate each transfer of financial assets to determine whether we have surrendered control and 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. When a transfer that qualifies as a sale is completed, we derecognize all assets transferred and recognize all assets received 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 (losses), net” in our consolidated statements of operations and comprehensive income. We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class and multi-class portfolio securitization trusts. 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.
Cash Equivalents and Restricted Cash	Cash Equivalents and Restricted Cash 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 primarily represents cash held in accounts that are for the benefit of MBS certificateholders (inclusive of amounts that have been advanced by us under the terms of our guaranty) that will be distributed to the MBS certificateholders on a future date in accordance with the terms of the MBS trust agreements. 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 MBS trust agreements. Cash may also be recognized as restricted cash for certain collateral arrangements for which we do not have the right to use the cash.
Securities Purchased Under Agreements to Resell	Securities Purchased Under Agreements to Resell We enter into repurchase agreements that involve contemporaneous trades to purchase and sell securities. As the transferor has not relinquished control over the securities, these transactions are accounted for as secured financings and reported as securities purchased under agreements to resell 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 present cash flows from securities purchased under agreements to resell as investing activities in our consolidated statements of cash flows. These repurchase agreements may allow us to repledge all, or a portion, of the transferred collateral, and we may repledge such collateral periodically, although it is not typically our practice to repledge collateral that has been transferred to us.
Investments in Securities	Investments in Securities Securities Classified as Trading or Available-for-Sale We classify and account for our investments in 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 on investments in 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, net of income taxes, recorded in “Accumulated other comprehensive income,” and changes in expected credit losses recorded in “Benefit (provision) for credit losses.” We recognize realized gains and losses on AFS securities when securities are sold. We calculate the gains and losses on AFS securities using the specific identification method and record them in “Investment gains (losses), net” in our consolidated statements of operations and comprehensive income. As of December 31, 2023 and 2022, we did not have any investments in securities classified as held-to-maturity. When we own Fannie Mae MBS issued by unconsolidated trusts, the asset is recorded in “Investments in securities, at fair value” in our consolidated balance sheets. 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 of Fannie Mae MBS issued by unconsolidated trusts, we continue to account for any outstanding recorded amounts associated with the guaranty transaction on the same basis of accounting. We do not derecognize any components of the guaranty assets, guaranty obligations, or any other outstanding recorded amounts associated with the guaranty transaction for the Fannie Mae MBS because our contractual obligation to the MBS trust remains in force until the trust is liquidated. 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 excess of the amortized cost basis of the debt security over its fair value into the amount representing the credit loss, which we recognize as an allowance for credit losses with the corresponding amount recorded 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 “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 excess of the amortized cost basis over the fair value of the debt security. 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 (losses), net.” Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value gains, 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 (losses), 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. 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 the corresponding amount and subsequent changes in the valuation allowance recognized as “Investment gains (losses), 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 and discounts on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the presentation of our consolidated statements of cash flows, we present cash flows from loans classified as HFS at acquisition as operating activities. If a loan is initially classified as HFI and it is transferred to HFS, the principal cash flows and sales proceeds from such loans continue to be presented as investing activities in the consolidated statement of cash flows. Our accounting for transfers to HFS differs based upon the loan’s classification as either nonperforming or performing. Nonperforming loans include both seriously delinquent and reperforming loans. For both single-family and multifamily loans, reperforming loans are loans that were previously delinquent but are performing again because payments on the 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. All other loans are considered performing. 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 excess of the amortized cost basis over the fair value of the loan. Any difference between the amount written off upon transfer and the recorded valuation allowance related to the transferred loan is recognized in “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income. For performing loans transferred 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 transfer. The loan is transferred to 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 (losses), net.” Upon reclassification from HFS to HFI, we reverse the valuation allowance on the loan, if any, and establish an allowance for loan losses as needed.
Loans Held for Investment	Loans Held for Investment When we acquire 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 loans and the use of such loans is limited exclusively to the settlement of obligations of the trusts. Therefore, 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. In the presentation of our consolidated statements of cash flows, we present principal cash flows from loans classified as HFI as investing activities and interest cash flows as operating activities. 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. We present accrued interest receivable separately from the amortized cost of our HFI loans in our consolidated balance sheets. We recognize interest income on HFI loans on an accrual basis using the effective yield method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured.
Nonaccrual Loans and Allowance for Loan Losses	Nonaccrual Loans We recognize interest income on an accrual basis except when we believe the collection of principal and interest is not reasonably assured. This generally occurs when a single-family loan is three or more months past due and a multifamily loan is two or more months past due according to its contractual terms. A loan is reported as past due if a full payment of principal and interest is not received within one month of its due date. When a loan is placed on nonaccrual status based on delinquency status, interest previously accrued but not collected on the loan is reversed through interest income. Cost basis adjustments on HFI loans are amortized into interest income over the contractual life of the loan using the effective interest method. Cost basis adjustments on the loan are not amortized into income while a loan is on nonaccrual status. 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. For single-family loans, we recognize any contractual interest payments received on the loan while on nonaccrual status as interest income on a cash basis. For multifamily loans, we account for interest income on a cost recovery basis and we apply any payment received while on nonaccrual status to reduce the amortized cost of the loan. Thus, we do not recognize any interest income on a multifamily loan placed on nonaccrual status until the amortized cost of the loan has been reduced to zero. A nonaccrual loan is returned to accrual status when the full collection of principal and interest is reasonably assured. We generally determine that the full collection of principal and interest is reasonably assured when the loan returns to current payment status. If a loan is restructured for a borrower experiencing financial difficulty, we require a performance period of up to 6 months before we return the loan to accrual status. Upon a loan’s return to accrual status, we resume the recognition of interest income on an accrual basis and the amortization of cost basis adjustments, if any, into interest income. If interest is capitalized pursuant to a restructuring, any capitalized interest that had not been previously recognized as interest income or that had been reversed through interest income when the loan was placed on nonaccrual status is recorded as a discount to the loan and amortized into interest income over the remaining contractual life of the loan. For single-family loans negatively impacted by the COVID-19 pandemic that were three or more months past due as of December 31, 2022, we continued 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. We continued to accrue interest income beyond six months of delinquency provided that the full collection of principal and interest continued to be reasonably assured. For multifamily loans that were in a COVID-19 forbearance arrangement on December 31, 2022, we continued to recognize interest income for up to six months of delinquency and then placed the loans on nonaccrual status when the borrower was six months past due. For loans that were subject to the COVID-19-related nonaccrual policy, we established 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 was recorded in “Benefit (provision) for credit losses” in our consolidated statements of operations and comprehensive income. Accrued interest receivable was written off when the amount was deemed to be uncollectible. Loans that were in active forbearance arrangements were not evaluated for write-off. To the extent that loans that were subject to the COVID-19-related nonaccrual policy were restructured, the accrued interest that was previously recognized was capitalized into the principal balance of the loan. 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 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 Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk Transfer™ (“CIRT™”) programs and multifamily Delegated Underwriting and Servicing (“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” in our consolidated statements of operations and comprehensive income. 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 amounts are deemed uncollectible. 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, we record a write-off in an amount equal to the excess of a loan’s amortized cost over fair value of assets received. We include expected recoveries of amounts previously written off and expected to be written off in determining our allowance for loan losses. We present foreclosed property in “Other assets” in our consolidated balance sheets. We held $1.8 billion and $1.6 billion of acquired property, net as of December 31, 2023 and December 31, 2022, respectively. 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 fees retained by a third-party for servicing, 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. For single-family home prices, we develop regional forecasts based on Metropolitan Statistical Area data 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. We update the discount rate of the loan each reporting period to reflect changes in expected prepayments. We may modify loans to borrowers experiencing financial difficulty as part of our loss mitigation activities. We consider the effects of both actual and estimated restructurings in our estimate of expected credit losses. 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. 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. Restructured Loans Effective January 1, 2022, we adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326), using the prospective transition method. ASU 2022-02 eliminates the recognition and measurement of troubled debt restructurings (“TDRs”) and enhances the disclosures for loan restructurings for borrowers experiencing financial difficulty. Pursuant to this guidance, when a single-family loan is restructured, we continue to measure impairment on the loan using a discounted cash flow approach that utilizes a prepayment-adjusted discount rate that is based on the loan’s restructured terms. Using a post-restructuring interest rate does not result in the recognition of an economic concession in the allowance for loan losses. Additionally, loan modifications to single-family and multifamily borrowers are evaluated to determine whether they result in a new loan or a continuation of an existing loan. Modifications made by Fannie Mae for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan as the terms of the restructured loans are typically not at market rates. Prior to our adoption of this guidance, most of our restructurings were accounted for as TDRs. Under the TDR accounting model, we used the discount rate that was in effect prior to the restructuring to measure impairment on each loan, which resulted in the recognition, in the allowance for loan losses, of the economic concession that we granted to borrowers as part of the loan restructuring. As we have elected a prospective transition for the TDR-elimination guidance effective January 1, 2022, the economic concession on a single-family loan that was previously restructured and accounted for as a TDR will continue to be measured in our allowance for loan losses using the discount rate that was in effect prior to the restructuring and the economic concession may increase or decrease as we update our cash flow assumptions related to the loan’s expected life. Further, the component of the allowance for loan losses representing economic concessions will decrease as the borrower makes payments in accordance with the restructured terms of the loan and as the loan is sold, liquidated, or subsequently restructured. In general, the effect of our current accounting for loan modifications is consistent with the accounting that we applied under section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to modifications of loans not previously restructured in a TDR. The CARES Act provided temporary relief from the accounting and reporting requirements for TDRs regarding certain loan modifications related to COVID-19 beginning March 2020 through December 31, 2021. 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. The following tables display information about the credit quality of our single-family HFI loans, based on total amortized cost. Effective January 1, 2023, we adopted amendments to ASU 2022-02 that require us to disclose current-period gross write-offs by year of origination for financing receivables. As a result, for the periods beginning January 1, 2023, the tables below include current year write-offs of our single-family HFI mortgage loans by class of financing receivable and year of origination, excluding loans for which we have elected the fair value option. 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 volume and pricing of loans redesignated 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.
Advances to Lenders	Advances to Lenders Advances to lenders represent our payments of cash in exchange for the receipt of 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.”
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 periods 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 Low-Income Housing Tax Credit (“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 present deferred taxes net in our consolidated balance sheets. 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 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. 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; •the funding available to us under the senior preferred stock purchase agreement; •the carryforward period for capital losses; and •tax planning strategies.
Derivative Instruments	Derivative Instruments We recognize derivatives in a gain position in “Other assets” and derivatives in a loss position in “Other 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, 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. In the presentation of our consolidated statements of cash flows, we present cash flows from derivatives that do not contain financing elements as operating activities. 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 To reduce earnings volatility related to changes in benchmark interest rates, we apply fair value hedge accounting to certain pools of single-family 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, the Secured Overnight Financing Rate (“SOFR”), as the risk being hedged. We have elected to use the portfolio layer method to hedge certain pools of single-family 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 each business day 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 swap 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 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 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 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 operating activities” in our consolidated statements of cash flows. Cash paid or received on designated derivative instruments during a hedging relationship is reported as “Net cash provided by operating activities” in the consolidated statements of cash flows. Commitments to Purchase and Sell Loans and Securities We enter into commitments to purchase and sell mortgage-backed securities and to purchase single-family and multifamily loans. Certain of these commitments to purchase or sell mortgage-backed securities and to purchase single- family loans are accounted for as derivatives, while other commitments are not within the scope of the derivative accounting criteria or do not meet the definition of a derivative. Our commitments for the purchase and sale of regular way securities trades are exempt from derivative accounting and are recorded on their trade date. 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 single-class securitization trusts and certain resecuritization trusts where the security that has been issued by the trust is substantially the same as the underlying collateral are treated as extinguishments or issuances of the underlying MBS debt, respectively. For commitments to purchase and sell securities issued by these 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. 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, 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 counterparties for securities purchased under agreements to resell, 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 when the offsetting requirements have been met 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 “Investments in securities, at fair value” or “Cash and cash equivalents” in our consolidated balance sheets. Securities that we own that are pledged to counterparties may include securities issued by consolidated VIEs. The pledged collateral is classified as “Mortgage loans” when the trust that issued the security has been consolidated to align with the classification of the underlying asset.
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. Our liability to third-party holders of Fannie Mae MBS that arises as the result of a consolidation of a securitization trust is collateralized by the underlying loans and/or mortgage-related securities. We 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 over the contractual term of the debt. Amortization of premiums, discounts and other cost basis adjustments begins at the time of debt issuance. We purchase and sell guaranteed MBS that have been issued through lender swap and portfolio securitization transactions. When we purchase or sell a Fannie Mae MBS issued from a consolidated single-class securitization trust and certain resecuritization trusts where the security that has been issued by the trust is substantially the same as the underlying collateral, we extinguish or issue, respectively, the related debt of the consolidated trust to reflect the debt that is owed to a third-party. For the extinguishment of debt, we record debt extinguishment gains or losses related to debt of consolidated trusts for any difference between the purchase price of the MBS and the carrying value of the related consolidated MBS debt reported in our consolidated balance sheets (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. When we issue consolidated debt, the debt is recorded at its fair value with any premiums or discounts amortized over the securities’ contractual life.
New Accounting Guidance	New Accounting Guidance Fair Value Hedging - Portfolio Layer Method On March 28, 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-01, Fair Value Hedging – Portfolio Layer Method, which clarifies the guidance on fair value hedge accounting of interest rate risk portfolios of financial assets. The ASU expands the scope of the last-of-layer method to allow entities to apply this method, renamed the portfolio layer method, to non-prepayable financial assets and to designate multiple hedge relationships within a single closed portfolio of financial assets. Additionally, the ASU clarifies that basis adjustments related to existing portfolio layer hedge relationships should not be considered when measuring credit losses on the financial assets included in the closed portfolio. Further, the ASU clarifies that any reversal of fair value hedge basis adjustments associated with an actual breach should be recognized in interest income immediately. We adopted this guidance on January 1, 2023 and the adoption did not have a material impact on our financial statements. Investments – Equity Method and Joint Ventures On March 29, 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323), Accounting for Investment in Tax Credit Structures Using the Proportional Amortization Method. The ASU expands the scope of the proportional amortization method that is currently restricted to investments in LIHTC structures by allowing an entity to elect this method on a program-by-program basis to other qualifying tax equity investments. We adopted this guidance on January 1, 2024 and the adoption did not have a material impact on our financial statements. Segment Reporting On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The ASU enhances disclosure of an entity’s reportable segments by requiring additional information about significant segment expenses, interim disclosures of certain segment information that previously were only required on an annual basis and other detailed segment-related disclosures. The ASU applies to all public entities that are required to report segment information and is effective starting in annual periods beginning after December 15, 2023. The ASU is required to be adopted retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of this guidance on our consolidated financial statements. Income Taxes On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the required disclosures primarily related to the income tax rate reconciliation and income taxes paid. The ASU requires an entity’s income tax rate reconciliation to provide additional information for reconciling items meeting a quantitative threshold, and to disclose certain selected categories within the income tax rate reconciliation. The ASU also requires entities to disclose the amount of income taxes paid, disaggregated by federal, state and foreign taxes. The ASU is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.
Conservatorship	Conservatorship In September 2008, FHFA was appointed as our conservator pursuant to authority provided by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended (the “GSE Act”). Conservatorship is a statutory process designed to preserve and conserve our assets and property and put the company in a sound and solvent condition. Our conservatorship has no specified termination date. FHFA, as conservator, succeeded to: •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 •title to the books, records and assets of any other legal custodian of Fannie Mae. As conservator, FHFA has the authority to exercise broad powers over the company, including: •directing us to enter into contracts or entering into contracts on our behalf; and •transferring or selling our assets or liabilities. FHFA has broad latitude over our business while we are in conservatorship, including authority to rehabilitate us in a way that, while not in Fannie Mae’s best interests, is beneficial to FHFA and, by extension, the public it serves. The GSE Act provides special protections for mortgage loans and mortgage-related assets we hold in trust. Specifically, 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 such MBS and cannot be used to satisfy the company’s general creditors. While we are operating in conservatorship, our directors: •serve on behalf of the conservator; •exercise their authority as directed by and with the approval (where required) of the conservator; •owe their fiduciary duties of care and loyalty solely to the conservator, and not to either the company or the stockholders; and •are appointed by the conservator and not elected by stockholders. FHFA, as conservator, has issued an order authorizing our Board of Directors to exercise specified functions and authorities, and 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 suspended stockholder meetings since conservatorship, and our common stockholders are not empowered to vote on directors or any other matters. The conservator also eliminated dividends on our common and preferred stock (other than dividends on the senior preferred stock issued to the U.S. Department of Treasury described below) during the conservatorship. Receivership Under the GSE Act, the Director of FHFA must place us into receivership if they determine that our assets are less than our obligations (that is, we have a net worth deficit) or if we have not been paying our debts as they become due, in either case, for a period of 60 days. FHFA has clarified that the 60-day measurement period will commence no earlier than the SEC filing deadline for our Form 10-K or Form 10-Q for the relevant period. 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 would likely lead to substantially different financial results. 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 equity structure, which includes the senior preferred stock purchase agreement.
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, 2023, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $195.2 billion. 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 in the capital markets. 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 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.
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 mortgages delivered to us by 10 basis points in April 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 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 mortgages delivered to us and pay the associated revenue to Treasury. In January 2022, FHFA advised us to continue to collect and pay these TCCA fees on and after October 1, 2032 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated.
Troubled Debt Restructuring	Prior to our adoption of ASU 2022-02, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. In addition to formal loan modifications, we accounted for informal restructurings as a TDR if we deferred more than three missed payments to a borrower experiencing financial difficulty. We also classified bankruptcy relief provided to certain borrowers as TDRs. However, our TDR accounting described herein was suspended for most of our loss mitigation activities through our election to account for certain eligible loss mitigation activities occurring between March 2020 and January 1, 2022 under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021. Effective January 1, 2022, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2022. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified.
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.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.
Earnings per Share	Earnings per Share Earnings per share (“EPS”) is presented for basic and diluted EPS. 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). 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. Net income attributable to common stockholders excludes amounts attributable to the senior preferred stock because such amounts increase the liquidation preference of the senior preferred stock and therefore are required to be excluded from basic EPS. See further information on the senior preferred stock above in “Senior Preferred Stock.”
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.
Acquired Property, Net	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.
Derivatives, Hedging	Pursuant to our fair value hedge accounting 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 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 generally elect the fair value option on a financial instrument when the accounting guidance would otherwise require us to separately account for a derivative that is embedded in an instrument at fair value. Under the fair value option, we carry this type of instrument, in its entirety, at fair value instead of separately accounting for the derivative. 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.”
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 the likelihood of a loss is probable and we can reasonably estimate the amount of such loss.
Commitments to Purchase and Sell Mortgage Loans and Securities	We have unconditional commitments related to the purchase of loans and mortgage-related securities. These include both on- and off-balance sheet commitments. A portion of these have been recorded as derivatives in our consolidated balance sheets.

Consolidations and Transfers of Financial Assets

12 Months Ended

Dec. 31, 2023

Consolidations and Transfers of Financial Assets [Abstract]

Consolidations and Transfers of Financial Assets

Consolidations and Transfers of Financial AssetsWe have interests in various entities that are considered to be VIEs. The primary types of entities are:

•securitization trusts;

•resecuritization trusts;

•housing partnerships that are established to finance the acquisition, construction, development or rehabilitation

of affordable multifamily housing; and

•certain credit risk transfer special purpose entities.

These interests may include guarantees to the VIE on behalf of the holders of the securities issued by the VIE and/or

investments in the securities issued by VIEs, such as Fannie Mae MBS created pursuant to our securitization

transactions. We consolidate the substantial majority of our single-class securitization trusts because our role as

guarantor and master servicer provides us with the power to direct activities (primarily the servicing of mortgage loans)

that impact the credit risk to which we are exposed. In contrast, we do not consolidate single-class securitization trusts

when other organizations have the power to direct these activities unless we have the unilateral ability to dissolve the

trust. We also do not consolidate our resecuritization trusts unless we have the unilateral ability to dissolve the trust. We

may include securities issued by Freddie Mac in some of our resecuritization trusts. The mortgage loans that serve as

collateral for Freddie Mac-issued securities are not held in trusts that are consolidated by Fannie Mae.

Types of VIEs

Securitization Trusts

We create single-class securitization trusts to issue single-class Fannie Mae MBS that evidence an undivided interest in

the mortgage loans held in the trust. Investors in Fannie Mae MBS receive principal and interest payments in proportion

to their percentage ownership of the Fannie Mae MBS issued. 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. We consolidate

single-class securitization trusts that are created under these programs when our role as master servicer provides us

with the power to direct activities, 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 mortgage loan collateral is subject to a Federal Housing

Administration guaranty and related Servicing Guide).

Resecuritization Trusts

Fannie Mae single-class resecuritization trusts, which include Fannie Megas® and Supers®, are created by depositing

MBS into a new securitization trust for the purpose of aggregating multiple mortgage-related securities (generally

Fannie Mae MBS, Freddie Mac MBS or combinations of both) into one combined security. Fannie Mae multi-class

resecuritization trusts are trusts we create to issue multi-class Fannie Mae structured securities, including real-estate

mortgage investment conduits (“REMIC”) and stripped mortgage-backed securities (“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 the cash flows.

We guaranty to each Fannie Mae resecuritization trust that we will supplement amounts received by the trust as

required to permit timely principal and interest payments on the related Fannie Mae security. As the underlying collateral

may have been previously guaranteed by Fannie Mae, we are only exposed to incremental credit risk when we guaranty

the timely payment of principal and interest on underlying securities that were issued by Freddie Mac and were not

previously guaranteed by us. We may also be exposed to prepayment risk via our ownership of securities issued by

these trusts. Additionally, we earn a fee for assisting the lenders and dealers with the design and issuance of these

securities.

We do not have any incremental rights or powers related to 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 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.

Limited Partnerships

We invest in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to

Section 42 of the Internal Revenue Code. The purpose of these investments is to increase the supply of affordable

housing in the United States and to serve communities in need. In addition, our investments in LIHTC partnerships

generate both tax credits and net operating losses that may reduce our federal income tax liability. Our LIHTC

investments primarily represent limited partnership interests in entities that have been organized by a fund manager

who acts as the general partner. These LIHTC partnerships seek out equity investments in LIHTC operating

partnerships that have been established to identify, develop and operate multifamily housing that is leased to qualifying

residential tenants. Fannie Mae does not consolidate these entities because our limited partnership interest does not

provide us with a controlling financial interest.

Special Purpose Vehicles Associated with Our Credit Risk Transfer Programs

We transfer mortgage credit risk to investors through both Connecticut Avenue Securities (“CAS”) special purpose

vehicles (“SPVs”) and Multifamily Connecticut Avenue Securities (“MCAS”) SPVs. CAS and MCAS SPVs are separate

legal entities that issue notes that are fully collateralized by cash deposited into a collateral account held by the

respective CAS or MCAS SPV and is invested in short-term highly rated investments. To the extent that collateral held

by the CAS or MCAS SPV and the earnings thereon are insufficient relative to the payments due to holders of the CAS

or MCAS notes, we may be required to make payments to the CAS or MCAS SPVs. The CAS and MCAS SPV qualify

as VIEs. We do not have the power to direct significant activities of the CAS or MCAS SPVs while the CAS and MCAS

SPVs are outstanding, and, therefore, we do not consolidate CAS or MCAS SPVs.

Unconsolidated VIEs

We do not consolidate VIEs when we are not deemed to be the primary beneficiary. 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,
	2023		2022
	(Dollars in millions)
Assets and liabilities recorded in our consolidated balance sheets related to unconsolidated mortgage-backed trusts:
Investments in securities, at fair value		$4,863		$3,353
Other assets		37		40
Other liabilities		(42)		(45)
Net carrying amount		$4,858		$3,348

Our maximum exposure to loss generally represents the greater of our carrying amount related to our involvement with

unconsolidated securitization and resecuritization trusts or the unpaid principal balance of the assets covered by our

guaranty. Our involvement in unconsolidated resecuritization trusts may give rise to additional exposure to loss

depending on the type of resecuritization trust. Fannie Mae resecuritization trusts that are backed entirely by Fannie

Mae MBS are not consolidated and do not give rise to any additional exposure to loss as we already consolidate the

underlying collateral. In contrast, Fannie Mae resecuritization trusts that are backed in whole or in part by Freddie Mac

securities may increase our exposure to loss to the extent that we are providing a guaranty for the timely payment and

interest on the underlying Freddie Mac securities that we have not previously guaranteed. Our maximum exposure to

loss for these unconsolidated trusts is measured by the amount of Freddie Mac securities that are held in these

resecuritization trusts.

Our maximum exposure to loss related to unconsolidated securitization and resecuritization trusts, which includes but is

not limited to our exposure to these Freddie Mac securities, was approximately $223 billion and $240 billion as of

December 31, 2023 and 2022, respectively. The total assets of our unconsolidated securitization and resecuritization

trusts were approximately $273 billion and $240 billion as of December 31, 2023 and 2022, respectively.

The maximum exposure to loss for our unconsolidated limited partnerships and similar legal entities, which consist of

LIHTC, community investments and other entities, was $530 million and the related net carrying value was $528 million

as of December 31, 2023. As of December 31, 2022, the maximum exposure to loss was $427 million and the related

net carrying value was $424 million. The total assets of these limited partnership investments were $5.8 billion and $4.3

billion as of December 31, 2023 and 2022, respectively.

The maximum exposure to loss related to our involvement with unconsolidated SPVs that transfer credit risk represents

the unpaid principal balance and accrued interest payable of obligations issued by the CAS and MCAS SPVs. The

maximum exposure to loss related to these unconsolidated SPVs was $21.4 billion and $16.9 billion as of December 31,

2023 and 2022, respectively. The total assets related to these unconsolidated SPVs were $21.4 billion and $17.0 billion

as of December 31, 2023 and 2022, respectively.

The unpaid principal balance of our multifamily loan portfolio was $461.2 billion as of December 31, 2023. As our

lending relationship does not provide us with a controlling financial interest in the borrower entity, we do not consolidate

these borrowers regardless of their status as either a VIE or a voting interest entity. We have excluded these entities

from our VIE disclosures. However, the disclosures we have provided in “Note 4, Mortgage Loans,” “Note 5, Allowance

for Loan Losses” and “Note 7, Financial Guarantees” with respect to this population are consistent with the FASB’s

stated objectives for the disclosures related to unconsolidated VIEs.

Transfers of Financial Assets and Portfolio Securitizations

As noted below, we consolidate the substantial majority of our single-class securitization trusts. The assets and liabilities

of consolidated trusts created via portfolio securitization transactions are reported in our consolidated balance sheets.

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

no proceeds from the initial sale of securities from portfolio securitizations for the years ended December 31, 2023,

2022 or 2021.

We issue single-class 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. For the years ended December

31, 2023, 2022 and 2021, the unpaid principal balance of portfolio securitizations was $131.6 billion, $270.5 billion and

$682.9 billion, respectively. The substantial majority of these portfolio securitization transactions generally do not qualify

for sale treatment. Portfolio securitization trusts that do qualify for sale treatment primarily consist of loans that are

guaranteed or insured, in whole or in part, by the U.S. government as such transactions are not consolidated by Fannie

Mae.

We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class portfolio

securitization trusts and unconsolidated single class and multi-class portfolio resecuritization trusts. As of December 31,

2023, the unpaid principal balance of retained interests was $821 million and its related fair value was $1.3 billion. The

unpaid principal balance of retained interests was $910 million and its related fair value was $1.4 billion as of December

31, 2022. For the years ended December 31, 2023, 2022 and 2021, the principal, interest and other fees received on

retained interests was $282 million, $397 million and $558 million, respectively.

Mortgage Loans - Non-Cash Activities Related to Mortgage Loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Noncash or Part Noncash Acquisitions [Line Items]
Mortgage loans acquired by assuming debt	$ 140,162	$ 246,883	$ 398,026
Net transfers from mortgage loans of Fannie Mae to mortgage loans of consolidated trusts	117,885	265,066	663,849
Mortgage loans received by consolidated trusts to satisfy advances to lenders	103,141	185,203	384,700
Net transfers from mortgage loans to acquired property	$ 4,160	2,344	$ 3,000
Revision of Prior Period, Adjustment
Noncash or Part Noncash Acquisitions [Line Items]
Mortgage loans acquired by assuming debt		61,678
Previously Reported
Noncash or Part Noncash Acquisitions [Line Items]
Mortgage loans acquired by assuming debt		$ 185,205

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2023	Feb. 01, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	0-50231
Entity Registrant Name	FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE
Entity Tax Identification Number	52-0883107
Entity Address, Address Line One	1100 15th Street, NW
Entity Address, City or Town	Washington,
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20005
City Area Code	800
Local Phone Number	232-6643
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 510
Entity Common Stock, Shares Outstanding		1,158,087,567
Entity Central Index Key	0000310522
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Incorporation, State or Country Code	X1
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(g) Security	Common Stock, without par value
Series T
Document Information [Line Items]
Title of 12(g) Security	8.25% Non-Cumulative Preferred Stock, Series T, stated value $25 per share
Series S
Document Information [Line Items]
Title of 12(g) Security	Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series S, stated value $25 per share
Series R
Document Information [Line Items]
Title of 12(g) Security	7.625% Non-Cumulative Preferred Stock, Series R, stated value $25 per share
Series Q
Document Information [Line Items]
Title of 12(g) Security	6.75% Non-Cumulative Preferred Stock, Series Q, stated value $25 per share
Series P
Document Information [Line Items]
Title of 12(g) Security	Variable Rate Non-Cumulative Preferred Stock, Series P, stated value $25 per share
Series O
Document Information [Line Items]
Title of 12(g) Security	Variable Rate Non-Cumulative Preferred Stock, Series O, stated value $50 per share
Convertible Series 2004-1
Document Information [Line Items]
Title of 12(g) Security	5.375% Non-Cumulative Convertible Series 2004-1 Preferred Stock, stated value $100,000 per share
Series N
Document Information [Line Items]
Title of 12(g) Security	5.50% Non-Cumulative Preferred Stock, Series N, stated value $50 per share
Series M
Document Information [Line Items]
Title of 12(g) Security	4.75% Non-Cumulative Preferred Stock, Series M, stated value $50 per share
Series L
Document Information [Line Items]
Title of 12(g) Security	5.125% Non-Cumulative Preferred Stock, Series L, stated value $50 per share
Series I
Document Information [Line Items]
Title of 12(g) Security	5.375% Non-Cumulative Preferred Stock, Series I, stated value $50 per share
Series H
Document Information [Line Items]
Title of 12(g) Security	5.81% Non-Cumulative Preferred Stock, Series H, stated value $50 per share
Series G
Document Information [Line Items]
Title of 12(g) Security	Variable Rate Non-Cumulative Preferred Stock, Series G, stated value $50 per share
Series F
Document Information [Line Items]
Title of 12(g) Security	Variable Rate Non-Cumulative Preferred Stock, Series F, stated value $50 per share
Series E
Document Information [Line Items]
Title of 12(g) Security	5.10% Non-Cumulative Preferred Stock, Series E, stated value $50 per share
Series D
Document Information [Line Items]
Title of 12(g) Security	5.25% Non-Cumulative Preferred Stock, Series D, stated value $50 per share

Netting Arrangements (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Assets:
Derivative assets, gross amount	$ 440,000,000	$ 326,000,000
Derivative asset, gross amount offset	(283,000,000)	(154,000,000)
Derivative assets, net amount presented in our consolidated balance sheets	157,000,000	172,000,000
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	(23,000,000)	(50,000,000)
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	(9,000,000)	(12,000,000)
Derivative assets, net amount	125,000,000	110,000,000
Securities purchased under agreements to resell, or similar arrangements, gross amount	65,425,000,000	69,415,000,000
Securities purchased under agreements to resell or similar arrangements, gross amount offset	0	0
Securities purchased under agreements to resell or similar arrangements, net amount presented in our consolidated balance sheets	65,425,000,000	69,415,000,000
Securities purchased under agreements to resell, under master netting arrangement, amounts not offset in our consolidated balance sheets, financial instruments	0	0
Securities purchased under agreements to resell or similar arrangements, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	(65,425,000,000)	(69,415,000,000)
Securities purchased under agreements to resell or similar arrangements, net amount	0	0
Total assets, gross amount	65,865,000,000	69,741,000,000
Total assets, gross amount offset	(283,000,000)	(154,000,000)
Total assets, net amount presented in the consolidated balance sheets	65,582,000,000	69,587,000,000
Total assets, under the master netting arrangements, not offset in our consolidated balance sheets, financial instruments	(23,000,000)	(50,000,000)
Total assets, under master netting arrangements, not offset in our consolidated balance sheets, collateral	(65,434,000,000)	(69,427,000,000)
Total assets, net amount	125,000,000	110,000,000
Liabilities:
Total liabilities, gross amount	(3,327,000,000)	(4,764,000,000)
Total liabilities, gross amount offset	3,200,000,000	4,662,000,000
Total liabilities, net amount presented in our consolidated balance sheets	(127,000,000)	(102,000,000)
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial statements	23,000,000	50,000,000
Total liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	80,000,000	7,000,000
Total liabilities, net amount	(24,000,000)	(45,000,000)
Securities received as collateral	65,500,000,000	69,500,000,000
Fair value of securities received as collateral that can be resold or repledged	55,400,000,000	28,700,000,000
Fair value of securities received as collateral that have been resold or repledged	0	0
Derivative asset, not subject to master netting arrangement	45,000,000	3,000,000
Derivative liability, not subject to master netting arrangement	(13,000,000)	(66,000,000)
Securities purchased under agreements to resell (includes $0 and $3,475, respectively, related to consolidated trusts)	30,700,000,000	14,565,000,000
Asset Pledged as Collateral with Right
Assets:
Total assets, under master netting arrangements, not offset in our consolidated balance sheets, collateral	(2,200,000,000)	(2,100,000,000)
Mortgage commitment derivatives
Assets:
Derivative assets, gross amount	112,000,000	89,000,000
Derivative asset, gross amount offset	0	0
Derivative assets, net amount presented in our consolidated balance sheets	112,000,000	89,000,000
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	(23,000,000)	(50,000,000)
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	(9,000,000)	(12,000,000)
Derivative assets, net amount	80,000,000	27,000,000
Liabilities:
Derivative liabilities, gross amount	(104,000,000)	(78,000,000)
Derivative liabilities, gross amount offset	0	0
Derivative liabilities, net amount presented in our consolidated balance sheets	(104,000,000)	(78,000,000)
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	23,000,000	50,000,000
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	77,000,000	7,000,000
Derivative liabilities, net amount	(4,000,000)	(21,000,000)
OTC risk management derivatives \| Risk management derivatives
Assets:
Derivative assets, gross amount	328,000,000	237,000,000
Derivative asset, gross amount offset	(294,000,000)	(234,000,000)
Derivative assets, net amount presented in our consolidated balance sheets	34,000,000	3,000,000
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	0	0
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	0	0
Derivative assets, net amount	34,000,000	3,000,000
Liabilities:
Derivative liabilities, gross amount	(3,223,000,000)	(4,686,000,000)
Derivative liabilities, gross amount offset	3,203,000,000	4,662,000,000
Derivative liabilities, net amount presented in our consolidated balance sheets	(20,000,000)	(24,000,000)
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	0	0
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	0	0
Derivative liabilities, net amount	(20,000,000)	(24,000,000)
Cleared risk management derivatives \| Risk management derivatives
Assets:
Derivative assets, gross amount	0	0
Derivative asset, gross amount offset	11,000,000	80,000,000
Derivative assets, net amount presented in our consolidated balance sheets	11,000,000	80,000,000
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	0	0
Derivative assets, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	0	0
Derivative assets, net amount	11,000,000	80,000,000
Liabilities:
Derivative liabilities, gross amount	0	0
Derivative liabilities, gross amount offset	(3,000,000)	0
Derivative liabilities, net amount presented in our consolidated balance sheets	(3,000,000)	0
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, financial instruments	0	0
Derivative liabilities, under master netting arrangements, amounts not offset in our consolidated balance sheets, collateral	3,000,000	0
Derivative liabilities, net amount	0	0
Cash and Cash Equivalents
Liabilities:
Securities purchased under agreements to resell (includes $0 and $3,475, respectively, related to consolidated trusts)	21,800,000,000	45,200,000,000
Restricted Cash and Cash Equivalent
Liabilities:
Securities purchased under agreements to resell (includes $0 and $3,475, respectively, related to consolidated trusts)	$ 12,900,000,000	$ 9,700,000,000

Netting Arrangements (Tables)

12 Months Ended

Dec. 31, 2023

Offsetting [Abstract]

Schedule of Offsetting

The tables below display information related to derivatives and

securities purchased under agreements to resell, 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, 2023
		Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount	Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Financial Instruments(2)	Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$328	$(294)	$34		$—		$—	$34
Cleared risk management derivatives	—	11	11		—		—	11
Mortgage commitment derivatives	112	—	112		(23)		(9)	80
Total derivative assets	440	(283)	157	(4)	(23)		(9)	125
Securities purchased under agreements to resell(5)	65,425	—	65,425		—		(65,425)	—
Total assets	$65,865	$(283)	$65,582		$(23)		$(65,434)	$125



Liabilities:
OTC risk management derivatives	$(3,223)	$3,203	$(20)		$—	$—	$(20)
Cleared risk management derivatives	—	(3)	(3)		—	3	—
Mortgage commitment derivatives	(104)	—	(104)		23	77	(4)
Total liabilities	$(3,327)	$3,200	$(127)	(4)	$23	$80	$(24)


	As of December 31, 2022
		Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount	Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Financial Instruments(2)	Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$237	$(234)	$3		$—		$—	$3
Cleared risk management derivatives	—	80	80		—		—	80
Mortgage commitment derivatives	89	—	89		(50)		(12)	27
Total derivative assets	326	(154)	172	(4)	(50)		(12)	110
Securities purchased under agreements to resell(5)	69,415	—	69,415		—		(69,415)	—
Total assets	$69,741	$(154)	$69,587		$(50)		$(69,427)	$110

Liabilities:
OTC risk management derivatives	$(4,686)	$4,662	$(24)		$—		$—	$(24)
Cleared risk management derivatives	—	—	—		—		—	—
Mortgage commitment derivatives	(78)	—	(78)		50		7	(21)
Total liabilities	$(4,764)	$4,662	$(102)	(4)	$50		$7	$(45)

(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 $2.2 billion and

$2.1 billion as of December 31, 2023 and 2022, respectively. The fair value of non-cash collateral received was $65.5 billion and $69.5

billion, of which $55.4 billion and $28.7 billion could be sold or repledged as of December 31, 2023 and 2022, respectively. None of the

underlying collateral was sold or repledged as of December 31, 2023 and 2022.

(4)Excludes derivative assets recognized in our consolidated balance sheets of $45 million and $3 million as of December 31, 2023 and

2022, and derivative liabilities recognized in our consolidated balance sheets of $13 million and $66 million as of December 31, 2023 and

2022, respectively, that were not subject to enforceable master netting arrangements.

(5)Includes $21.8 billion and $45.2 billion of securities purchased under agreements to resell classified as “Cash and cash equivalents” in our

consolidated balance sheets as of December 31, 2023 and 2022, respectively. Includes $12.9 billion and $9.7 billion in securities

purchased under agreements to resell classified as “Restricted cash and cash equivalents” in our consolidated balance sheets as of

December 31, 2023 and 2022, respectively.

Mortgage Loans - Nonaccrual Loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Amortized cost, nonaccrual loans	$ 25,205	$ 12,517	$ 20,496	$ 28,574
Interest income recognized, nonaccrual loans	441	298	328
Single-family
Financing Receivable, Nonaccrual [Line Items]
Accrued interest receivable written off	325	61	163
Amortized cost, nonaccrual loans	23,315	10,317	19,237	26,505
Interest income recognized, nonaccrual loans	400	223	314
Single-family \| 20- and 30-year or more, amortizing fixed-rate
Financing Receivable, Nonaccrual [Line Items]
Amortized cost, nonaccrual loans	21,971	9,447	17,599	22,907
Interest income recognized, nonaccrual loans	379	207	292
Single-family \| 15-year or less, amortizing fixed-rate
Financing Receivable, Nonaccrual [Line Items]
Amortized cost, nonaccrual loans	727	200	430	853
Interest income recognized, nonaccrual loans	9	4	6
Single-family \| Adjustable-rate
Financing Receivable, Nonaccrual [Line Items]
Amortized cost, nonaccrual loans	109	53	107	270
Interest income recognized, nonaccrual loans	2	1	1
Single-family \| Other
Financing Receivable, Nonaccrual [Line Items]
Amortized cost, nonaccrual loans	508	617	1,101	2,475
Interest income recognized, nonaccrual loans	10	11	15
Multifamily
Financing Receivable, Nonaccrual [Line Items]
Accrued interest receivable written off	49	1	1
Amortized cost, nonaccrual loans	1,890	2,200	1,259	$ 2,069
Interest income recognized, nonaccrual loans	$ 41	$ 75	$ 14

Regulatory Capital Requirements (Details) $ in Millions	12 Months Ended
Regulatory Capital Requirements (Details) $ in Millions	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Senior preferred stock value	$ 120,836	$ 120,836
Net worth	77,700	60,300
Shortfall of available capital	243,000	258,000
Adjusted total capital requirement (including buffers)	188,000	184,000
Adjusted total assets	4,552,000	4,552,000
Risk-weighted assets	1,357,000	1,316,000
Total capital (statutory)
Available Capital (Deficit)	(34,000)	(49,000)
Minimum Capital Requirement	109,000	105,000
Total Capital Requirement (including buffers)	$ 109,000	$ 105,000
Available Capital (Deficit) Ratio	(0.025)	(0.037)
Minimum Capital Ratio Requirement	0.080	0.080
Total Capital Requirement Ratio (including Buffers)	0.080	0.080
Common equity tier 1 capital
Available Capital (Deficit)	$ (74,000)	$ (93,000)
Minimum Capital Requirement	61,000	59,000
Total Capital Requirement (including buffers)	$ 140,000	$ 138,000
Available Capital (Deficit) Ratio	(0.055)	(0.070)
Minimum Capital Ratio Requirement	0.045	0.045
Total Capital Requirement Ratio (including Buffers)	0.103	0.105
Tier 1 capital
Available Capital (Deficit)	$ (55,000)	$ (74,000)
Minimum Capital Requirement	81,000	79,000
Total Capital Requirement (including buffers)	$ 160,000	$ 158,000
Available Capital (Deficit) Ratio	(0.041)	(0.056)
Minimum Capital Ratio Requirement	0.060	0.060
Total Capital Requirement Ratio (including Buffers)	0.118	0.120
Adjusted total capital
Available Capital (Deficit)	$ (55,000)	$ (74,000)
Minimum Capital Requirement	109,000	105,000
Total Capital Requirement (including buffers)	$ 188,000	$ 184,000
Available Capital (Deficit) Ratio	(0.041)	(0.056)
Minimum Capital Ratio Requirement	0.080	0.080
Total Capital Requirement Ratio (including Buffers)	0.139	0.140
Core capital (statutory)
Available Capital (Deficit)	$ (43,000)	$ (61,000)
Minimum Capital Requirement	114,000	114,000
Total Capital Requirement (including buffers)	$ 114,000	$ 114,000
Available Capital (Deficit) Ratio	(0.009)	(0.013)
Minimum Capital Ratio Requirement	0.025	0.025
Total Capital Requirement Ratio (including Buffers)	0.025	0.025
Tier 1 capital
Available Capital (Deficit)	$ (55,000)	$ (74,000)
Minimum Capital Requirement	114,000	114,000
Total Capital Requirement (including buffers)	$ 137,000	$ 137,000
Available Capital (Deficit) Ratio	(0.012)	(0.016)
Minimum Capital Ratio Requirement	0.025	0.025
Total Capital Requirement Ratio (including Buffers)	0.030	0.030
Deferred tax assets, net	$ 11,681	$ 12,911
Preferred stock	$ 19,130	$ 19,130
Maximum payout ratio	0	0

Investments in Securities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 582
Realized gain	$ 59

Concentrations of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023			2022			2023			2022
Midwest		14	%		14	%		12	%		12	%
Northeast		16			16			15			15
Southeast		23			23			27			27
Southwest		19			19			22			22
West		28			28			24			24
Total		100	%		100	%		100	%		100	%

(1)Midwest consists of IL, IN, IA, MI, MN, NE, ND, OH, SD and WI. Northeast consists of CT, DE, ME, MA, NH, NJ, NY, PA, PR, RI, VT and

VI. Southeast consists of AL, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA and WV. Southwest consists of AZ, AR, CO, KS, LA, MO, NM, OK,

TX and UT. West consists of AK, CA, GU, HI, ID, MT, NV, OR, WA and WY.

Single-family

Concentration Risk [Line Items]

Schedules of Concentration of Risk, by Risk Factor

The table below displays the percentage of our single-family

conventional 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) based on

unpaid principal balance. There were no servicers that serviced 10% or more of our single-family guaranty book of

business as of December 31, 2023 or 2022.


	Percentage of Single-Family Conventional Guaranty Book of Business
	As of December 31,
	2023	2022
Top five depository servicers	22%	22%
Top five non-depository servicers	27	23
Total	49%	45%

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,
	2023			2022
	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	0.98%	0.24%	0.56%	0.84%	0.20%	0.60%
Percentage of single-family conventional loans based on loan count	1.06	0.26	0.55	0.96	0.23	0.65

Schedule of Risk Characteristics Guaranty Book of Business


	As of December 31,
	2023		2022
	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%	0.81%	5%	0.68%
90.01% to 100%	3	0.59	3	0.40
Greater than 100%	*	2.05	*	4.04
Geographical distribution:
California	19	0.42	19	0.46
Florida	6	0.73	6	0.90
Illinois	3	0.70	3	0.86
New York	5	0.92	5	1.12
Texas	7	0.64	7	0.71
All other states	60	0.52	60	0.62
Vintages:
2008 and prior	2	2.07	2	2.78
2009-2023	98	0.47	98	0.53

*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, 2023 and 2022.

Schedule of Risk in Force Mortgage Insurance Coverage

The following table displays our total mortgage insurance risk in force by primary and pool insurance, as well as the total

risk-in-force mortgage insurance coverage as a percentage of the single-family conventional guaranty book of business.


	As of December 31,
	2023		2022
	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	$200,023		$193,549
Pool mortgage insurance	98		237
Total mortgage insurance risk in force	$200,121	6%	$193,786	5%

Schedule of Risk in Force Mortgage Insurance Coverage, by Counterparty

The table below displays our mortgage insurer counterparties that provided 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,
	2023	2022
Counterparty:(1)
Mortgage Guaranty Insurance Corp.	19%	19%
Radian Guaranty, Inc.	18	17
Arch Capital Group Ltd.	18	18
Enact Mortgage Insurance Corp.	16	17
Essent Guaranty, Inc.	16	16
National Mortgage Insurance Corp.	13	12
Others	—	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

The table below displays the percentage of our multifamily guaranty book of business serviced by our top five

depository multifamily mortgage servicers and top five non-depository multifamily mortgage servicers. As of December

31, 2023, two servicers serviced 10% or more of our multifamily guaranty book of business, Walker & Dunlop, Inc. and

Wells Fargo Bank, N.A. (together with its affiliates). As of December 31, 2023, Walker & Dunlop, Inc. and Wells Fargo

Bank, N.A. (together with its affiliates) serviced 13% and 10%, respectively, of our multifamily guaranty book of business

based on unpaid principal balance, compared with 13% and 11% as of December 31, 2022.


	Percentage of Multifamily Guaranty Book of Business
	As of December 31,
	2023	2022
Top five depository servicers	27%	28%
Top five non-depository servicers	44	43
Total	71%	71%

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,
	2023(1)		2022(1)
	30 Days Delinquent	Seriously Delinquent(2)	30 Days Delinquent	Seriously Delinquent(2)
Percentage of multifamily guaranty book of business	0.10%	0.46%	0.04%	0.24%

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,
	2023		2022
	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%	0.85%
Less than or equal to 80%	99	0.46	99	0.24
Current DSCR below 1.0(4)	4	7.04	3	3.88

(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 covering a 12 month period, from quarterly and

annual statements for these properties including the related debt service.

Short-Term and Long-Term Debt - Short-Term Debt (Details) - Fannie Mae - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Short-term debt of Fannie Mae, outstanding	$ 17,314	$ 10,204
Short-term debt of Fannie Mae, weighted-average interest rate	5.13%	3.93%

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Allowance for Loan Losses

Allowance for Loan LossesWe 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. The benefit or provision for loan losses excludes provision for accrued interest receivable losses, guaranty

loss reserves and credit losses on 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,
	2023	2022	2021
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$(9,443)	$(4,950)	$(9,344)
Benefit (provision) for loan losses	2,079	(5,061)	4,503
Write-offs	873	883	417
Recoveries	(203)	(276)	(419)
Other	23	(39)	(107)
Ending balance	$(6,671)	$(9,443)	$(4,950)
Multifamily allowance for loan losses:
Beginning balance	$(1,904)	$(679)	$(1,208)
Benefit (provision) for loan losses	(497)	(1,245)	519
Write-offs	401	43	59
Recoveries	(59)	(23)	(49)
Ending balance	$(2,059)	$(1,904)	$(679)
Total allowance for loan losses:
Beginning balance	$(11,347)	$(5,629)	$(10,552)
Benefit (provision) for loan losses	1,582	(6,306)	5,022
Write-offs	1,274	926	476
Recoveries	(262)	(299)	(468)
Other	23	(39)	(107)
Ending balance	$(8,730)	$(11,347)	$(5,629)

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 volume and pricing of loans redesignated 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.

Our single-family benefit for loan losses for 2023 was primarily driven by a benefit from actual and forecasted home

price growth, partially offset by a provision from changes in loan activity and a provision relating to the redesignation of

loans from HFI to HFS, as described below:

•Benefit from actual and forecasted home price growth. During 2023, we observed stronger than expected

actual and forecasted home price appreciation. Higher home prices decrease the likelihood that loans will

default and reduce the amount of losses on loans that do default, which impacts our estimate of losses and

ultimately reduces our loss reserves and provision for loan losses.

•Provision from changes in loan activity, which includes provision on newly acquired loans. This was primarily

driven by the credit risk profile of our 2023 single-family acquisitions, which had a higher proportion of purchase

loans compared with our 2022 single-family acquisitions. Purchase loans generally have higher origination LTV

ratios than refinance loans. This factor drove a higher estimated risk of default and loss severity in the

allowance and therefore a higher credit loss provision for those loans at the time of acquisition.

•Provision from redesignation of loans from HFI to HFS. In 2023 we redesignated certain nonperforming and

reperforming single-family loans from HFI to HFS, as we no longer intended to hold them for the foreseeable

future or to maturity. Upon redesignation, these loans had an amortized cost of $3.3 billion with a related

allowance of $42 million. Since interest rates on the loans were below current market interest rates, their

carrying value exceeded their fair value at the time of redesignation, which resulted in a write-off against the

allowance of $658 million, with a net impact of $616 million in additional provision for loan losses.

The primary factors that contributed to our single-family provision for loan losses for 2022 were:

•Net provision from actual and forecasted home prices. Provision from home price changes was primarily driven

by our home price forecast, which estimated home price declines in 2023 and 2024. Lower forecasted home

prices increase the likelihood that loans will default and increase the amount of credit loss on loans that do

default, which increased our estimate of loss reserves and provision for loan losses.

•Provision from changes in loan activity, which includes provision on newly acquired loans. The portion of our

single-family acquisitions consisting of purchase loans increased in 2022 compared with 2021. In addition, in

2022, our loan loss provision also increased as our more negative home price forecast increased our estimate

of losses on newly acquired loans.

•Provision from higher actual and projected interest rates. As mortgage rates increased, we expected a

decrease in future prepayments on single-family loans, including modified loans accounted for as TDRs. Lower

expected prepayments extended the expected lives of these loans resulting in an increase in expected losses.

For TDR loans, longer expected lives also increase the expected impairment relating to economic concessions

provided on them, resulting in a provision for loan losses.

The increase in single-family write-offs in 2022 compared with 2021 was primarily driven by higher lower-of-cost-or-

market adjustments at the time of loan redesignation due to price declines on our HFS loans as interest rates rose

during the year. In addition, we had higher write-offs on single-family loans that went into foreclosure in 2022.

The primary factors that contributed to our multifamily provision for loan losses in 2023 were:

•Provision from changes in loan activity. This was primarily driven by new acquisitions resulting in book growth,

as well as increased delinquencies and declining DSCRs on the multifamily guaranty book, particularly in

instances where the DSCR declined to at or below a 1.0x coverage ratio.

•Provision from actual and projected economic data. Multifamily property values decreased throughout 2023,

which resulted in higher estimated LTV ratios on the loans in our multifamily guaranty book of business,

resulting in a provision for loan losses.

Our seniors housing loans were not a driver of our multifamily provision for loan losses in 2023, as our estimate of

losses related to these loans has decreased slightly since year-end 2022 as a result of loss mitigation activities

performed on this portfolio in 2023 and some recovery in property financials. However, our allowance for seniors

housing loans remained elevated as of December 31, 2023. These properties continue to be stressed from the effects of

the COVID-19 pandemic and ongoing economic trends and have not recovered to pre-pandemic levels.

Multifamily write-offs for 2023 were primarily due to the write-off of a specific seniors housing portfolio in 2023. The

seniors housing loans in our guaranty book of business are still recovering from being disproportionately affected by the

COVID-19 pandemic and ongoing economic trends, as well as other factors.

The primary factors that contributed to our multifamily provision for loan losses in 2022 were:

•Provision relating to our multifamily seniors housing portfolio. As of December 31, 2022, our estimate of credit

losses reflected an increased probability of default and greater expected severity of loss on our seniors housing

portfolio. As of December 31, 2022, nearly all of the seniors housing loans in our guaranty book of business

were current on their payments. However, our seniors housing portfolio was disproportionately impacted by

market conditions, which resulted in higher expected losses on this portfolio.

Seniors housing was negatively impacted by elevated vacancy rates and higher operating costs, which were

exacerbated by inflation pressures. This reduced the net operating income on many seniors housing properties,

which in turn led to lower estimated property values. These factors, combined with increased costs associated

with adjustable-rate mortgages due to a sharp rise in short-term interest rates during the latter half of 2022, put

additional stress on our seniors housing portfolio and increased our estimate of credit losses on these loans. As

of December 31, 2022, our seniors housing portfolio had an unpaid principal balance of $16.6 billion, of which

39% were adjustable-rate mortgages.

•Provision for higher actual and projected interest rates. Rising interest rates may reduce the ability of

multifamily borrowers to refinance their loans, which often have balloon balances at maturity, increasing our

provision for loan losses. Additionally, rising interest rates increase the chance that multifamily borrowers with

adjustable-rate mortgages may default due to higher payments if the property net operating income is not

increasing at a similar pace.

Derivative Instruments - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Hedged Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag	Carrying Amount Assets (Liabilities)	Carrying Amount Assets (Liabilities)
Hedged Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag	Carrying Amount Assets (Liabilities)	Carrying Amount Assets (Liabilities)
Hedged asset, carrying amount	$ 449,137	$ 293,788
Hedged asset, total basis adjustments	(174)	(628)
Hedged asset, discontinued fair value, remaining adjustments	(174)	(628)
Closed portfolio, amortized cost	218,419	98,377
Closed portfolio, designated UPB	9,955	5,187
Hedged liability, carrying amount	(59,462)	(73,790)
Hedged liability, total basis adjustments	3,751	4,713
Hedged liability, discontinued fair value, remaining adjustments	$ 3,751	$ 4,713

Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Short-Term and Long-Term Debt

Short-Term and Long-Term DebtShort-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,
	2023		2022
	Outstanding	Weighted- Average Interest Rate(1)	Outstanding	Weighted- Average Interest Rate(1)
	(Dollars in millions)
Short-term debt of Fannie Mae	$17,314	5.13%	$10,204	3.93%

(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,
	2023			2022
	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	2024 - 2030	$54,727	2.79%	2023 - 2030	$72,261	2.35%
Medium-term notes(3)	2024 - 2031	42,217	1.58	2023 - 2031	39,476	0.78
Other(4)	2024 - 2038	6,787	3.98	2023 - 2038	6,778	4.00
Total senior fixed		103,731	2.40		118,515	1.94
Senior floating:
Connecticut Avenue Securities(5)	2024 - 2031	2,752	11.12	2023 - 2031	5,207	8.80
Other(6)	2037	268	8.79	2037	242	10.00
Total senior floating		3,020	10.92		5,449	8.86
Total long-term debt of Fannie Mae(7)		106,751	2.63		123,964	2.23
Debt of consolidated trusts	2024 - 2062	4,098,653	2.56	2023 - 2062	4,087,720	2.47
Total long-term debt		$4,205,404	2.57%		$4,211,684	2.47%

(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.

(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 $4.0 billion and $5.1 billion as of December 31, 2023 and 2022, 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® that provide increased

efficiency, liquidity and tradability to the market through regularly-scheduled issuance dates that are used if needed

during the year. Additionally, we have historically issued notes and bonds denominated in a foreign currency but have

not issued any foreign currency debt in the periods presented. 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, 2023 and 2022, the face amount of our debt securities of Fannie Mae was $128.1 billion and

$139.3 billion, respectively. As of December 31, 2023, we had zero-coupon debt with a face amount of $11.6 billion,

which had an effective interest rate of 5.06%. As of December 31, 2022, we had zero-coupon debt with a face amount

of $10.0 billion, which had an effective interest rate of 3.91%.

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, 2023 and 2022 included $43.8 billion and $43.3 billion,

respectively, of callable debt that could be redeemed, in whole or in part, at our option on or after a specified date.

The following table displays the amount of our long-term debt as of December 31, 2023 by year of maturity for each of

the years 2024 through 2028 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)
2024		$23,354		$54,192
2025		39,026		21,153
2026		10,289		6,983
2027		5,974		4,170
2028		3,681		1,462
Thereafter		24,427		18,791
Total long-term debt of Fannie Mae(1)		106,751		106,751
Debt of consolidated trusts(2)		4,098,653		4,098,653
Total long-term debt		$4,205,404		$4,205,404

(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.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Conservatorship, Senior Preferred Stock Purchase Agreement and Related Matters

12 Months Ended

Dec. 31, 2023

Conservatorship, Preferred Stock Agreements, And Related Parties [Abstract]

Conservatorship, Preferred Stock Agreements, And Related Parties

Conservatorship, Senior Preferred Stock Purchase

Agreement and Related Matters

Conservatorship

In September 2008, FHFA was appointed as our conservator pursuant to authority provided by the Federal Housing

Enterprises Financial Safety and Soundness Act of 1992, as amended (the “GSE Act”). Conservatorship is a statutory

process designed to preserve and conserve our assets and property and put the company in a sound and solvent

condition. Our conservatorship has no specified termination date.

FHFA, as conservator, succeeded to:

•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

•title to the books, records and assets of any other legal custodian of Fannie Mae.

As conservator, FHFA has the authority to exercise broad powers over the company, including:

•directing us to enter into contracts or entering into contracts on our behalf; and

•transferring or selling our assets or liabilities.

FHFA has broad latitude over our business while we are in conservatorship, including authority to rehabilitate us in a

way that, while not in Fannie Mae’s best interests, is beneficial to FHFA and, by extension, the public it serves.

The GSE Act provides special protections for mortgage loans and mortgage-related assets we hold in trust. Specifically,

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 such MBS and cannot be used to satisfy the company’s general creditors.

While we are operating in conservatorship, our directors:

•serve on behalf of the conservator;

•exercise their authority as directed by and with the approval (where required) of the conservator;

•owe their fiduciary duties of care and loyalty solely to the conservator, and not to either the company or the

stockholders; and

•are appointed by the conservator and not elected by stockholders.

FHFA, as conservator, has issued an order authorizing our Board of Directors to exercise specified functions and

authorities, and 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 suspended stockholder meetings since conservatorship, and our common stockholders are not

empowered to vote on directors or any other matters. The conservator also eliminated dividends on our common and

preferred stock (other than dividends on the senior preferred stock issued to the U.S. Department of Treasury described

below) during the conservatorship.

Receivership

Under the GSE Act, the Director of FHFA must place us into receivership if they determine that our assets are less than

our obligations (that is, we have a net worth deficit) or if we have not been paying our debts as they become due, in

either case, for a period of 60 days. FHFA has clarified that the 60-day measurement period will commence no earlier

than the SEC filing deadline for our Form 10-K or Form 10-Q for the relevant period. 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 would likely lead to substantially different financial results. 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 equity structure, which includes the senior preferred stock purchase agreement.

Senior Preferred Stock Purchase Agreement

Overview

FHFA, as conservator, entered into a senior preferred stock purchase agreement with the U.S. Department of the

Treasury (“Treasury”) on our behalf in September 2008. In connection with that agreement, we issued Treasury

one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2, which we refer to as the

“senior preferred stock,” and a warrant to purchase shares equal to 79.9% of our common stock, on a fully diluted basis,

for a nominal price of $0.00001. 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 of $3.5 billion. We received no cash consideration for issuing either the senior preferred stock

or the warrant. The senior preferred stock purchase agreement and the terms of the senior preferred stock have been

amended multiple times since 2008 by FHFA (acting on our behalf) and Treasury. These amendments have been

accounted for as modifications of the senior preferred stock purchase agreement. As a result, these amendments did

not trigger a change in the carrying value of the senior preferred stock.

The senior preferred stock purchase agreement and accompanying stock certificate include key provisions that impact

us, including those described in the table below. For a discussion of the terms of the senior preferred stock related to

dividends, liquidation preference, and limits on redemptions and paydowns, see “Note 12, Equity.”


Treasury Funding Commitment	•On a quarterly basis, we may draw funds from Treasury to cover the amount that our total liabilities exceed our total assets for the applicable fiscal quarter (referred to as the “deficiency amount”), up to the amount of remaining funding commitment under the agreement. •As of the date of this filing: ◦$119.8 billion has been paid to us by Treasury under this funding commitment; and ◦$113.9 billion of funding commitment from Treasury remains; this amount would be reduced by any future payments by Treasury under the commitment.
Termination Provisions for Funding Commitment	•Treasury’s funding commitment has no specified end date, but will terminate upon: ◦our liquidation and the fulfillment of Treasury’s obligations under its funding commitment; ◦the payment in full of, or reasonable provision for, our liabilities (whether or not contingent, including guaranty obligations); or ◦Treasury funding the maximum amount under the agreement. •Treasury also may terminate its funding commitment and void the agreement if a court vacates, modifies, amends, conditions, enjoins, stays or otherwise affects the appointment of the conservator or curtails the conservator’s powers.


Rights of Debt and MBS Holders	•Holders of our debt securities or our guaranteed MBS may file a claim in the United States Court of Federal Claims for relief if we default on our payment obligations on those securities and: ◦we and the conservator fail to exercise all rights under the agreement to draw on Treasury’s funding commitment, or ◦Treasury fails to perform its obligations under its funding commitment and we and/or the conservator are not diligently pursuing remedies for Treasury’s failure. •Holders may seek to require Treasury to fund us up to: ◦the amount necessary to cure the relevant payment defaults; ◦the deficiency amount; or ◦the amount of remaining funding under the agreement, whichever is the least. Any Treasury funding provided under these circumstances would increase the liquidation preference of the senior preferred stock. •The terms of the agreement generally may be amended or waived; however, no such amendment or waiver may decrease Treasury’s aggregate funding commitment or add conditions to Treasury’s funding commitment that would adversely affect in any material respect the holders of our debt or guaranteed MBS.
Commitment Fee	•The agreement provides for the payment of an unspecified quarterly commitment fee to Treasury to compensate it for its ongoing support under the agreement. •Until the capital reserve end date, the periodic commitment fee will not be set, accrue, or be payable. The capital reserve end date is defined as the last day of the second consecutive fiscal quarter during which we have had and maintained capital equal to or exceeding the capital requirements and buffers set forth in the enterprise regulatory capital framework. •No later than the capital reserve end date, we and Treasury, in consultation with the Chair of the Federal Reserve, will agree on the amount of the periodic commitment fee.

Covenants

The senior preferred stock purchase agreement contains covenants that prohibit us (and, in one instance, FHFA) from

taking several actions without the prior written consent of Treasury or require us to take specified actions, including the

following described in the table below:


Dividends and Share Repurchases	•We may not pay dividends or make other distributions on or repurchase our equity securities (other than the senior preferred stock).
Issuances of Equity Securities	•We may not issue equity securities, except for common stock issued: ◦upon exercise of the warrant; ◦as required by any pre-conservatorship agreements; and ◦following the satisfaction of two conditions: (a) the exercise of the warrant in full, and (b) the resolution of all currently pending significant litigation relating to the conservatorship and the August 2012 amendment to the senior preferred stock purchase agreement.


Termination of Conservatorship	•Neither we nor FHFA may terminate or seek to terminate the conservatorship, other than through a receivership, without the prior consent of Treasury, with one exception that allows FHFA to terminate our conservatorship without the prior consent of Treasury if the following conditions are met: ◦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 ◦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). As of December 31, 2023, 3% of our adjusted total assets was $136.6 billion and we had a common equity tier 1 capital deficit of $74 billion.
Asset Dispositions	•We may not sell, transfer, lease or otherwise dispose of any assets, except for dispositions for fair market value in limited circumstances, including if: ◦the transaction is in the ordinary course of business and consistent with past practice; or ◦the assets have a fair market value individually or in the aggregate of less than $250 million.
Subordinated Debt	•We may not issue any subordinated debt securities.
Mortgage Assets Limit	•We may not hold mortgage assets in excess of $225 billion; however, we are currently managing our business to a $202.5 billion mortgage asset cap according to FHFA instructions.
Indebtedness	•We may not have indebtedness in excess of $270 billion.
Executive Compensation	•We may not enter into any new compensation arrangements or increase amounts or benefits payable under existing compensation arrangements with any of our executive officers (as defined by Securities and Exchange Commission (“SEC”) rules) without the consent of the Director of FHFA, in consultation with the Secretary of the Treasury.
Equitable Access and Offers for Single-Family Mortgage Loans	•We may not vary our pricing or acquisition terms for single-family loans based on the business characteristics of the seller, including the seller’s size, charter type, or volume of business with us. •We must offer to purchase at all times, for equivalent cash consideration and on substantially the same terms, any single-family mortgage loan that: ◦is of a class of loans that we then offer to acquire for inclusion in our MBS or for other non- cash consideration; ◦is offered by a seller that has been approved to do business with us; and ◦has been originated and sold in compliance with our underwriting standards.


Single-Family Loan Eligibility Program	•We must maintain a program reasonably designed to ensure that the single-family loans we acquire are limited to: ◦qualified mortgages; ◦government-backed loans; ◦loans exempt from the Consumer Financial Protection Bureau’s (the “CFPB’s”) ability-to- repay and qualified mortgage rule (other than loans secured by timeshares and home equity lines of credit, which, we are not allowed to buy); ◦loans secured by an investment property; ◦refinancing loans with streamlined underwriting originated in accordance with our eligibility criteria for high LTV ratio refinancings; ◦loans originated with temporary underwriting flexibilities during times of exigent circumstances, as determined in consultation with FHFA; ◦loans secured by manufactured housing; and ◦such other loans that FHFA may designate that were eligible for purchase by us as of January 2021.
Enterprise Regulatory Capital Framework	•We are required to comply with the enterprise regulatory capital framework rule published by FHFA in the Federal Register on December 17, 2020, disregarding any subsequent amendments or modifications to the rule. •FHFA has subsequently amended the enterprise regulatory capital framework and instructed us to comply with the framework as amended. Accordingly, we are not in compliance with this covenant. See “Note 13, Regulatory Capital Requirements” for additional information. •While our compliance with the covenants in the senior preferred stock purchase agreement is not a condition of Treasury’s funding commitment under that agreement, FHFA, as our conservator and regulator, has the authority to direct compliance or impose consequences for any non-compliance with that agreement.
Risk Management Plan	•While in conservatorship, we must provide an annual risk management plan to Treasury.

Suspended Covenants

Certain covenants in the senior preferred stock purchase agreement (described below) were temporarily suspended in

September 2021. Treasury can terminate this suspension upon six months’ notice to us. As of the date of this filing, we

have received no such notification from Treasury. The suspended covenants include:

•A prohibition on acquiring more than $1.5 billion in single-family loans for cash consideration from any single

seller (including its affiliates) during any four-quarter period.

•A prohibition on acquiring more than $80 billion in multifamily mortgage assets in any 52-week period, with this

volume cap to be adjusted by FHFA at the end of each year.

•A requirement that at least 50% of our multifamily acquisitions in any year be classified as mission-driven at the

time of acquisition.

•A prohibition on acquiring (during a 52-week period) a single-family mortgage loan if, following the acquisition,

more than 3% of our single-family loans that result from a refinancing, or 6% of our single-family loans that do

not result from a refinancing, would have two or more of the following characteristics at origination: combined

LTV ratio greater than 90%; a debt to income ratio greater than 45%; and FICO or equivalent credit score less

than 680.

•A requirement to limit our acquisitions of single-family mortgage loans secured by either second homes or

investment properties to not more than 7% of the single-family mortgage loans we have acquired during the

preceding 52-week period.

Senior Preferred Stock and Common Stock Warrant

For information about the senior preferred stock and the common stock warrant, see “Note 12, Equity.”

Impact of U.S. Government Support

We continue to rely on support from Treasury to eliminate any net worth deficits we may experience in the future, which

would otherwise trigger our being placed into receivership. Based on consideration of all the relevant conditions and

events affecting our operations, including our reliance on the U.S. government, we continue to operate as a going

concern and in accordance with FHFA’s provision of authority.

We primarily fund our business through MBS issuances, retained earnings, and the issuance of a variety of short-term

and long-term debt securities in the domestic and international capital markets. Accordingly, we are subject to “roll over,”

or refinancing, risk on our outstanding debt.

We believe that our status as a government-sponsored enterprise and continued federal government support are

essential to maintaining our access to debt funding. Changes or perceived changes in federal government support of

our business, our debt securities or our status as a government-sponsored enterprise could materially and adversely

affect our liquidity, financial condition and results of operations. In addition, due to our reliance on the U.S. government’s

support, our access to debt funding or the cost of debt funding also could be materially adversely affected by a change

or perceived change in the creditworthiness of the U.S government. A downgrade in our credit ratings could reduce

demand for our debt securities and increase our borrowing costs. Future changes or disruptions in the financial markets

could significantly impact the amount, mix and cost of funds we obtain, which also could increase our liquidity and “roll

over” risk and have a material adverse impact on our liquidity, financial condition and results of operations.

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, 2023,

Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $195.2 billion.

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

in the capital markets. 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 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.

Transactions with Treasury

Treasury Making Home Affordable Program

Our administrative expenses were reduced by approximately $6 million, $15 million and $17 million for the years ended

December 31, 2023, 2022 and 2021, respectively, due to reimbursements from Treasury and Freddie Mac for expenses

incurred as program administrator for Treasury’s Home Affordable Modification Program (“HAMP”) and other initiatives

under Treasury’s Making Home Affordable Program. Our role as program administrator concluded in the third quarter of

2023, and we received our final reimbursement from Treasury in the fourth quarter of 2023.

Obligation to Pay TCCA Fees to Treasury

In December 2011, Congress enacted the Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) which, among

other provisions, required that we increase our single-family guaranty fees by at least 10 basis points and pay this

increase to Treasury. To meet our obligations under the TCCA and at the direction of FHFA, we increased the guaranty

fee on all single-family mortgages delivered to us by 10 basis points in April 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 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 mortgages delivered to us and pay the associated revenue to Treasury. In January 2022, FHFA

advised us to continue to collect and pay these TCCA fees on and after October 1, 2032 with respect to loans we

acquired before this date until those loans are paid off or otherwise liquidated.

We recognized $3.4 billion, $3.4 billion and $3.1 billion in TCCA fees during the years ended December 31, 2023, 2022

and 2021, respectively, of which $861 million and $854 million had not been paid as of December 31, 2023 and 2022,

respectively.

Treasury Interest in Affordable Housing Allocations

The GSE Act requires us to set aside certain funding obligations, a portion of which is attributable to Treasury’s Capital

Magnet Fund. These funding obligations are measured as the product of 4.2 basis points and the unpaid principal

balance of our total new business purchases for the respective period, with 35% of this amount payable to Treasury’s

Capital Magnet Fund. We recognized $54 million, $101 million and $209 million in “Other expenses, net” in connection

with Treasury’s Capital Magnet Fund for the years ended December 31, 2023, 2022 and 2021, respectively. We paid

$101 million and $209 million to Treasury’s Capital Magnet Fund in 2023 and 2022, respectively. In 2024, we expect to

pay $54 million to Treasury’s Capital Magnet Fund based on our new business purchases in 2023.

Transactions with FHFA

The GSE Act authorizes FHFA to establish an annual assessment for regulated entities, including Fannie Mae, which is

payable on a semi-annual basis (April and October), for FHFA’s costs and expenses, as well as to maintain FHFA’s

working capital. We recognized FHFA assessment fees, which are recorded in “Other administrative expenses” in our

consolidated statements of operations and comprehensive income, of $159 million, $132 million and $140 million for the

years ended December 31, 2023, 2022 and 2021, respectively.

Transactions with CSS and Freddie Mac

We contributed funds to CSS, the company we jointly own with Freddie Mac, of $72 million, $65 million and $76 million

for the years ended December 31, 2023, 2022 and 2021, respectively. Net operating losses associated with our

investment in CSS are recorded in “Other expenses, net” in our consolidated statements of operations and

comprehensive income.

Netting Arrangements

12 Months Ended

Dec. 31, 2023

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 and

securities purchased under agreements to resell, 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, 2023
		Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount	Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Financial Instruments(2)	Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$328	$(294)	$34		$—		$—	$34
Cleared risk management derivatives	—	11	11		—		—	11
Mortgage commitment derivatives	112	—	112		(23)		(9)	80
Total derivative assets	440	(283)	157	(4)	(23)		(9)	125
Securities purchased under agreements to resell(5)	65,425	—	65,425		—		(65,425)	—
Total assets	$65,865	$(283)	$65,582		$(23)		$(65,434)	$125



Liabilities:
OTC risk management derivatives	$(3,223)	$3,203	$(20)		$—	$—	$(20)
Cleared risk management derivatives	—	(3)	(3)		—	3	—
Mortgage commitment derivatives	(104)	—	(104)		23	77	(4)
Total liabilities	$(3,327)	$3,200	$(127)	(4)	$23	$80	$(24)


	As of December 31, 2022
		Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Amounts Not Offset in our Consolidated Balance Sheets
	Gross Amount	Gross Amount Offset(1)	Net Amount Presented in our Consolidated Balance Sheets		Financial Instruments(2)	Collateral(3)		Net Amount
	(Dollars in millions)
Assets:
OTC risk management derivatives	$237	$(234)	$3		$—		$—	$3
Cleared risk management derivatives	—	80	80		—		—	80
Mortgage commitment derivatives	89	—	89		(50)		(12)	27
Total derivative assets	326	(154)	172	(4)	(50)		(12)	110
Securities purchased under agreements to resell(5)	69,415	—	69,415		—		(69,415)	—
Total assets	$69,741	$(154)	$69,587		$(50)		$(69,427)	$110

Liabilities:
OTC risk management derivatives	$(4,686)	$4,662	$(24)		$—		$—	$(24)
Cleared risk management derivatives	—	—	—		—		—	—
Mortgage commitment derivatives	(78)	—	(78)		50		7	(21)
Total liabilities	$(4,764)	$4,662	$(102)	(4)	$50		$7	$(45)