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Guarantees and Other Off-Balance Sheet Credit Exposures
 12 Months Ended
Dec. 31, 2025
Guarantees [Abstract]  
GUARANTEES AND OTHER OFF-BALANCE SHEET CREDIT EXPOSURES
Guarantees and Other Off-Balance Sheet Credit Exposures
Our guarantee activities primarily consist of mortgage-related guarantees in which we agree to absorb the credit risk of mortgage loans or other mortgage-related assets. In exchange for providing this guarantee, we receive an upfront or ongoing guarantee fee that is designed to be commensurate with the risks assumed and that will, over the long-term, provide us with cash flows that are expected to exceed the credit-related and administrative expenses of the underlying financial instruments and also provide us with a return on the capital that would be needed to support the related credit risk. The profitability of our guarantee activities may vary and will depend on a number of factors, including our guarantee fee and the actual credit performance of the underlying financial instruments that we have guaranteed.
We do not separately recognize guarantees to consolidated VIEs as we have already recognized the assets and liabilities of those VIEs on our consolidated balance sheets. When we issue a guarantee to a nonconsolidated VIE or other third party that exposes us to incremental credit risk, we recognize both a guarantee obligation at fair value and the consideration we receive for providing the guarantee, which typically consists of a guarantee asset that represents the fair value of future guarantee fees. As a practical expedient, the measurement of the fair value of the guarantee obligation is set equal to the consideration we receive to provide the guarantee, and no gain or loss is recognized upon issuance of the guarantee. Subsequently, we recognize changes in the fair value of the guarantee asset in current period earnings and amortize the guarantee obligation into earnings as we are released from risk under the guarantee. We also recognize an allowance for expected credit losses over the contractual period in which we are exposed to credit risk. See Note 6 for additional information on our allowance for credit losses on financial guarantees and other off-balance sheet credit exposures.
Guarantee Activities
Mortgage-Related Guarantees
Nonconsolidated Securitization Products
The majority of our mortgage-related guarantees involve securitizations of multifamily mortgage loans where we do not consolidate the securitization trust. In these transactions, we guarantee the principal and interest payments on the senior classes of beneficial interests issued by the securitization trust(s). Our maximum exposure on these guarantees is generally limited to the UPB of the beneficial interests that we have guaranteed. We have credit protection in the form of subordination that will absorb losses prior to us having to absorb losses under our guarantee, thereby reducing our expected credit losses related to such guarantees. See Note 3 for additional information on nonconsolidated VIEs.
Other Mortgage-Related Guarantees
In certain circumstances, we provide a credit guarantee of mortgage-related assets held by third parties, in exchange for a guarantee fee, without securitizing those assets. These guarantees consist of the following:
n    Long-term standby commitments of single-family loans which obligate us to purchase the covered loans when they become seriously delinquent. Periodically, certain of our customers seek to terminate long-term standby commitments and simultaneously enter into guarantor swap transactions to obtain our securities backed by many of the same loans.
n    Guarantees of the timely payment of principal and interest for certain multifamily bonds, which primarily consist of multifamily housing revenue bonds that were issued by HFAs.
Our maximum exposure on these guarantees is limited to the UPB of the mortgage-related assets that we have guaranteed.
Guarantees of Fannie Mae Securities
We have the ability to commingle TBA-eligible Fannie Mae collateral in certain of our resecuritization products. We extend our guarantee of these products to cover principal and interest that are payable from the underlying Fannie Mae collateral. Because both Freddie Mac and Fannie Mae are under the common control of FHFA, and due to Fannie Mae’s status as a GSE and the funding commitment available to it through its senior preferred stock purchase agreement with Treasury, we view the likelihood of being required to perform on our guarantee of Fannie Mae collateral as remote. See Note 3 for additional information on guarantees of Fannie Mae securities.
The table below presents information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could be required to make under the guarantee, the liability we have recognized on our consolidated balance sheets for the guarantee, and the maximum remaining term of the guarantee. This table does not include our unrecognized guarantees, such
as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. We do not believe the potential amount of future payments we could be required to make is representative of the actual payments we will be required to make or the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation, including possible recoveries under credit enhancements.
Table 5.1 - Financial Guarantees
December 31, 2025
(Dollars in millions, terms in years)
UPBMaximum Exposure
Recognized Liability(1)
Maximum Remaining Term
Single-Family mortgage-related guarantees:
Nonconsolidated securitization products(2)
$30,025 $24,604 $453 40
Other mortgage-related guarantees7,212 7,212 96 26
Total Single-Family mortgage-related guarantees37,237 31,816 549 
Multifamily mortgage-related guarantees:
Nonconsolidated securitization products(2)(3)
332,572 299,507 3,629 34
Other mortgage-related guarantees10,003 9,992 332 33
Total Multifamily mortgage-related guarantees342,575 309,499 3,961 
Guarantees of Fannie Mae securities98,370 98,370 — 36
Other64 399 — 30
December 31, 2024
(Dollars in millions, terms in years)
UPBMaximum Exposure
Recognized Liability(1)
Maximum Remaining Term
Single-Family mortgage-related guarantees:
Nonconsolidated securitization products(2)
$30,038 $24,470 $413 39
Other mortgage-related guarantees7,941 7,941 127 27
Total Single-Family mortgage-related guarantees37,979 32,411 540 
Multifamily mortgage-related guarantees:
Nonconsolidated securitization products(2)(3)
355,108 317,611 4,219 35
Other mortgage-related guarantees10,846 10,831 364 34
Total Multifamily mortgage-related guarantees365,954 328,442 4,583 
Guarantees of Fannie Mae securities104,120 104,120 — 37
Other79 472 — 30
(1)    Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 6 for additional information on our allowance for credit losses on off-balance sheet credit exposures.
(2)    Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE.
(3)    Maximum exposure to loss excludes the exposure related to advances made by us as guarantor. The outstanding balance of guarantor advances were $0.4 billion and $0.3 billion as of December 31, 2025 and December 31, 2024, respectively.
The table below presents the payment status of the mortgage loans underlying our mortgage-related guarantees.
Table 5.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status
December 31, 2025
(In millions)Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure
Total
Single-Family$32,713 $2,234 $860 $1,430 $37,237 
Multifamily340,501 141 218 1,715 342,575 
Total$373,214 $2,375 $1,078 $3,145 $379,812 
December 31, 2024
(In millions)Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure
Total
Single-Family$33,454 $2,183 $852 $1,490 $37,979 
Multifamily363,983 335 117 1,519 365,954 
Total$397,437 $2,518 $969 $3,009 $403,933 
Other Guarantees
We also enter into certain transactions that are accounted for as derivative instruments and are also considered guarantees under GAAP. These transactions include our obligation to make certain payments to VIEs to support payment of the interest due on the notes issued by those VIEs in certain CRT transactions, certain interest-rate guarantees related to our securitization and resecuritization products, certain market value guarantees, and guarantees of third-party derivative instruments. These transactions generally provide for no limitation on the maximum potential future payments under the guarantee, and we generally reduce our exposure to such guarantees through separate derivative contracts with third parties. The approximate remaining term of these guarantees varies and in many cases is based on the maturity of the underlying mortgage loans. See Note 9 for additional information on derivative instruments.
Indemnifications
In connection with certain business transactions, we may provide indemnification to counterparties for claims arising out of breaches of certain obligations (e.g., those arising from representations and warranties) in contracts entered into in the normal course of business. Our assessment is that the risk of any material loss from such a claim for indemnification is remote and there are no significant probable and estimable losses associated with these contracts. In addition, we provided indemnification for litigation defense costs to certain former officers who are subject to ongoing litigation. See Note 17 for information on ongoing litigation. The recognized liabilities on our consolidated balance sheets related to indemnifications were not significant at both December 31, 2025 and December 31, 2024.
Other Off-Balance Sheet Credit Exposures
In addition to our guarantees, we enter into other agreements that expose us to off-balance sheet credit risk. These agreements may require us to transfer cash before or upon settlement of our contractual obligation. We recognize an allowance for credit losses for those agreements not measured at fair value or otherwise recognized in the financial statements. Most of these commitments expire in less than one year. See Note 6 for additional discussion of our allowance for credit losses on our off-balance sheet credit exposures.
The table below presents our other off-balance sheet credit exposures.
Table 5.3 - Other Off-Balance Sheet Credit Exposures
(In millions)December 31, 2025December 31, 2024
Mortgage loan purchase commitments(1)
$14,010 $12,416 
Unsettled securities purchased under agreements to resell, net(2)
27,811 10,650 
Other commitments(3)
3,788 4,248 
Total$45,609 $27,314 
(1)Includes $2.0 billion of commitments for which we have elected the fair value option as of December 31, 2024. There were no commitments for which we elected the fair value option as of December 31, 2025. Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 9 for additional information on commitments accounted for as derivative instruments.
(2)Net of $1.9 billion and $0.4 billion of unsettled securities sold under agreements to repurchase as of December 31, 2025 and December 31, 2024, respectively.
(3)Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments.