Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Recurring Changes in Fair Value [Table Text Block]

The following tables display our assets and liabilities measured in our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option as of March 31, 2014 and December 31, 2013.



		Fair Value Measurements as of March 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Recurring fair value measurements:
Assets:
Trading securities:
Mortgage-related securities:
Fannie Mae		$	—		$	5,983		$	—		$	—			$	5,983
Freddie Mac		—			1,657			—			—				1,657
Ginnie Mae		—			248			—			—				248
Alt-A private-label securities		—			833			655			—				1,488
Subprime private-label securities		—			—			1,453			—				1,453
CMBS		—			2,676			—			—				2,676
Mortgage revenue bonds		—			—			601			—				601
Other		—			—			102			—				102
Non-mortgage-related securities:
U.S. Treasury securities		17,587			—			—			—				17,587
Total trading securities		17,587			11,397			2,811			—				31,795
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			6,250			5			—				6,255
Freddie Mac		—			6,507			8			—				6,515
Ginnie Mae		—			557			—			—				557
Alt-A private-label securities		—			3,776			3,570			—				7,346
Subprime private-label securities		—			—			7,030			—				7,030
CMBS		—			1,569			—			—				1,569
Mortgage revenue bonds		—			2			5,006			—				5,008
Other		—			4			2,844			—				2,848
Total available-for-sale securities		—			18,665			18,463			—				37,128
Mortgage loans of consolidated trusts		—			12,029			2,608			—				14,637
Other assets:
Risk management derivatives:
Swaps		—			8,643			68			—				8,711
Swaptions		—			413			—			—				413
Other		—			—			29			—				29
Netting adjustment		—			—			—			(8,422		)		(8,422		)
Mortgage commitment derivatives		—			104			1			—				105
Total other assets		—			9,160			98			(8,422		)		836
Total assets at fair value		$	17,587		$	51,251		$	23,980		$	(8,422	)		$	84,396



		Fair Value Measurements as of March 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior floating		$	—		$	1,465		$	310		$	—		$	1,775
Total of Fannie Mae		—			1,465			310			—			1,775
Of consolidated trusts		—			14,867			506			—			15,373
Total long-term debt		—			16,332			816			—			17,148
Other liabilities:
Risk management derivatives:
Swaps		—			8,970			115			—			9,085
Swaptions		—			1,047			—			—			1,047
Other		—			—			1			—			1
Netting adjustment		—			—			—			(10,042		)	(10,042		)
Mortgage commitment derivatives		—			113			5			—			118
Total other liabilities		—			10,130			121			(10,042		)	209
Total liabilities at fair value		$	—		$	26,462		$	937		$	(10,042	)	$	17,357



		Fair Value Measurements as of December 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Assets:
Trading securities:
Mortgage-related securities:
Fannie Mae		$	—		$	5,828		$	42		$	—			$	5,870
Freddie Mac		—			1,837			2			—				1,839
Ginnie Mae		—			407			—			—				407
Alt-A private-label securities		—			898			618			—				1,516
Subprime private-label securities		—			—			1,448			—				1,448
CMBS		—			2,718			—			—				2,718
Mortgage revenue bonds		—			—			565			—				565
Other		—			—			99			—				99
Non-mortgage-related securities:
U.S. Treasury securities		16,306			—			—			—				16,306
Total trading securities		16,306			11,688			2,774			—				30,768
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			6,566			7			—				6,573
Freddie Mac		—			6,834			8			—				6,842
Ginnie Mae		—			588			—			—				588
Alt-A private-label securities		—			3,558			3,791			—				7,349
Subprime private-label securities		—			—			7,068			—				7,068
CMBS		—			1,606			—			—				1,606
Mortgage revenue bonds		—			3			5,253			—				5,256
Other		—			4			2,885			—				2,889
Total available-for-sale securities		—			19,159			19,012			—				38,171
Mortgage loans of consolidated trusts		—			11,564			2,704			—				14,268
Other assets:
Risk management derivatives:
Swaps		—			9,604			36			—				9,640
Swaptions		—			561			1			—				562
Other		—			—			28			—				28
Netting adjustment		—			—			—			(8,422		)		(8,422		)
Mortgage commitment derivatives		—			265			—			—				265
Total other assets		—			10,430			65			(8,422		)		2,073
Total assets at fair value		$	16,306		$	52,841		$	24,555		$	(8,422	)		$	85,280



		Fair Value Measurements as of December 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Netting Adjustment⁽¹⁾				Estimated Fair Value
		(Dollars in millions)
Liabilities:
Long-term debt:
Of Fannie Mae:
Senior fixed		$	—		$	353		$	—		$	—			$	353
Senior floating		—			—			955			—				955
Total of Fannie Mae		—			353			955			—				1,308
Of consolidated trusts		—			14,458			518			—				14,976
Total long-term debt		—			14,811			1,473			—				16,284
Other liabilities:
Risk management derivatives:
Swaps		—			9,444			96			—				9,540
Swaptions		—			1,084			—			—				1,084
Other		—			—			1			—				1
Netting adjustment		—			—			—			(9,370		)		(9,370		)
Mortgage commitment derivatives		—			206			8			—				214
Total other liabilities		—			10,734			105			(9,370		)		1,469
Total liabilities at fair value		$	—		$	25,545		$	1,578		$	(9,370	)		$	17,753

__________


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

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Table Text Block]

The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2014 and 2013. The tables also display gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized in our condensed consolidated statements of operations and comprehensive income for Level 3 assets and liabilities for the three months ended March 31, 2014 and 2013. When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Three Months Ended March 31, 2014
				Total (Losses) or Gains (Realized/Unrealized)																										Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2014⁽⁵⁾
	Balance, December 31, 2013			Included in Net Income			Included in Other Comprehensive Income⁽¹⁾			Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, March 31, 2014
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	42		$	(1	)		$	—	$	—	$	—		$	—		$	(2	)	$	(39	)	$	—		$	—			$	—
Freddie Mac	2			—				—		—		—			—			—			(2		)	—			—				—
Alt-A private-label securities	618			19				—		—		—			—			(16		)	(76		)	110			655				17
Subprime private-label securities	1,448			76				—		—		—			—			(71		)	—			—			1,453				76
Mortgage revenue bonds	565			40				—		—		—			—			(4		)	—			—			601				40
Other	99			5				—		—		—			—			(2		)	—			—			102				5
Total trading securities	$	2,774		$	139			$	—	$	—	$	—		$	—		$	(95	)	$	(117	)	$	110		$	2,811			$	138

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	7		$	—			$	—	$	—	$	—		$	—		$	—		$	(2	)	$	—		$	5			$	—
Freddie Mac	8			—				—		—		—			—			—			—			—			8				—
Alt-A private-label securities	3,791			13				73		—		—			—			(88		)	(609		)	390			3,570				—
Subprime private-label securities	7,068			33				219		—		—			—			(290		)	—			—			7,030				—
Mortgage revenue bonds	5,253			(20		)		193		—		(19		)	—			(401		)	—			—			5,006				—
Other	2,885			3				41		—		—			—			(85		)	—			—			2,844				—
Total available-for-sale securities	$	19,012		$	29			$	526	$	—	$	(19	)	$	—		$	(864	)	$	(611	)	$	390		$	18,463			$	—

Mortgage loans of consolidated trusts	$	2,704		$	25			$	—	$	24	$	—		$	—		$	(81	)	$	(148	)	$	84		$	2,608			$	11
Net derivatives	(40		)	30				—		—		—			—			(12		)	(1		)	—			(23		)		11
Long-term debt:
Of Fannie Mae:
Senior floating	$	(955	)	$	(90	)		$	—	$	—	$	—		$	(750	)	$	20		$	1,465		$	—		$	(310	)		$	(44	)
Of consolidated trusts	(518		)	(1		)		—		—		—			—			18			19			(24		)	(506		)		(1		)
Total long-term debt	$	(1,473	)	$	(91	)		$	—	$	—	$	—		$	(750	)	$	38		$	1,484		$	(24	)	$	(816	)		$	(45	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Three Months Ended March 31, 2013
				Total (Losses) or Gains or (Realized/Unrealized)																											Net Unrealized (Losses) Gains Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2013⁽⁵⁾
	Balance, December 31, 2012			Included in Net Income			Included in Other Comprehensive Income⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3⁽⁴⁾			Balance, March 31, 2013
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	68		$	(3	)		$	—		$	—	$	—		$	—		$	(4	)	$	—		$	—		$	61			$	(2	)
Freddie Mac	2			—				—			—		—			—			—			—			—			2				—
Ginnie Mae	1			—				—			—		—			—			(1		)	—			—			—				—
Alt-A private-label securities	104			95				—			—		—			—			(16		)	(44		)	325			464				90
Subprime private-label securities	1,319			159				—			—		—			—			(32		)	—			—			1,446				160
Mortgage revenue bonds	675			(13		)		—			—		—			—			(1		)	—			—			661				(13		)
Other	117			2				—			—		—			—			(1		)	—			—			118				1
Total trading securities	$	2,286		$	240			$	—		$	—	$	—		$	—		$	(55	)	$	(44	)	$	325		$	2,752			$	236

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	29		$	—			$	—		$	—	$	—		$	—		$	(3	)	$	(14	)	$	—		$	12			$	—
Freddie Mac	10			—				—			—		—			—			(1		)	—			—			9				—
Alt-A private-label securities	6,564			9				218			—		—			—			(268		)	(1,192		)	781			6,112				—
Subprime private-label securities	7,447			44				677			—		—			—			(300		)	—			—			7,868				—
Mortgage revenue bonds	7,837			(2		)		(29		)	—		(19		)	—			(436		)	—			—			7,351				—
Other	3,147			4				44			—		—			—			(96		)	—			—			3,099				—
Total available-for-sale securities	$	25,034		$	55			$	910		$	—	$	(19	)	$	—		$	(1,104	)	$	(1,206	)	$	781		$	24,451			$	—

Mortgage loans of consolidated trusts	$	2,634		$	27			$	—		$	158	$	—		$	—		$	(112	)	$	(38	)	$	213		$	2,882			$	22
Net derivatives	14			(40		)		—			—		—			—			23			—			(4		)	(7		)		(18		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(400	)	$	17			$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(383	)		$	17
Of consolidated trusts	(1,128		)	(54		)		—			—		—			(15		)	49			113			(42		)	(1,077		)		(55		)
Total long-term debt	$	(1,528	)	$	(37	)		$	—		$	—	$	—		$	(15	)	$	49		$	113		$	(42	)	$	(1,460	)		$	(38	)

__________


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


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


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

⁽⁴⁾

Transfers out of Level 3 consisted primarily of private-label mortgage-related securities backed by Alt-A loans and credit risk sharing securities issued under our Connecticut Avenue Securities series. Prices for these securities were obtained from multiple third-party vendors or dealers supported by market observable inputs. Transfers into Level 3 consisted primarily of private-label mortgage-related securities backed by Alt-A loans. Prices for these securities are based on inputs from a single source or inputs that were not readily observable.


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

Realized and Unrealized Gain and Losses for Level 3 Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables display realized and unrealized gains and losses included in our condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013, for our Level 3 assets and liabilities measured in our condensed consolidated balance sheets at fair value on a recurring basis.



		For the Three Months Ended March 31, 2014
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income		$	70		$	106		$	(45	)		$	1		$	132
Net unrealized gains related to Level 3 assets and liabilities still held as of March 31, 2014		$	—		$	115		$	—			$	—		$	115



		For the Three Months Ended March 31, 2013
	Interest Income			Fair Value Gains, net			Net OTTI				Other			Total
		(Dollars in millions)
Total realized and unrealized gains (losses) included in net income		$	55		$	192		$	(5	)		$	3		$	245
Net unrealized gains related to Level 3 assets and liabilities still held as of March 31, 2013		$	—		$	202		$	—			$	—		$	202

Nonrecurring Changes in Fair Value [Table Text Block]

The following tables display assets measured in our condensed consolidated balance sheets at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment) as of March 31, 2014 and December 31, 2013.



		Fair Value Measurements as of March 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value
		(Dollars in millions)
Nonrecurring fair value measurements:
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	73		$	232		$	305
Single-family mortgage loans held for investment, at amortized cost:⁽¹⁾
Of Fannie Mae		—			—			18,039			18,039
Of consolidated trusts		—			—			56			56
Multifamily mortgage loans held for investment, at amortized cost⁽²⁾		—			—			1,714			1,714
Acquired property, net:
Single-family		—			—			4,537			4,537
Multifamily		—			—			112			112
Other assets		—			—			65			65
Total nonrecurring fair value measurements		$	—		$	73		$	24,755		$	24,828



		Fair Value Measurements as of December 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Estimated Fair Value
	(Dollars in millions)
Assets:
Mortgage loans held for sale, at lower of cost or fair value		$	—		$	101		$	132		$	233
Single-family mortgage loans held for investment, at amortized cost:⁽¹⁾
Of Fannie Mae		—			—			19,966			19,966
Of consolidated trusts		—			—			79			79
Multifamily mortgage loans held for investment, at amortized cost		—			—			1,533			1,533
Acquired property, net:
Single-family		—			—			4,041			4,041
Multifamily		—			—			98			98
Other assets		—			—			121			121
Total nonrecurring fair value measurements		$	—		$	101		$	25,970		$	26,071

_________


⁽¹⁾	Excludes estimated recoveries from mortgage insurance proceeds.


⁽²⁾	Includes $522 million of mortgage loans held for investment that were redesignated to mortgage loans held for sale as of March 31, 2014.

Valuation Techniques and Significant Unobservable Inputs for Level 3 Assets and Liabilities [Table Text Block]

The following table displays valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013.



	Fair Value Measurements as of March 31, 2014
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Alt-A private-label securities⁽³⁾	$	322	Consensus	Default Rate (%)	0.7	-	8.2	6.3
				Prepayment Speed (%)	1.5	-	4.6	2.3
				Severity (%)	55.8	-	77.1	72.9
				Spreads (bps)	278.0	-	462.0	335.6
	290		Discounted Cash Flow	Default Rate (%)	0.7	-	9.5	8.4
				Prepayment Speed (%)	2.0	-	4.6	2.7
				Severity (%)	62.3	-	81.5	76.6
				Spreads (bps)	305.5	-	386.0	371.9
	43		Other
Total Alt-A private-label securities	655
Subprime private-label securities⁽³⁾	451		Consensus	Default Rate (%)	1.7	-	10.9	4.4
				Prepayment Speed (%)	0.2	-	4.1	1.9
				Severity (%)	33.3	-	95.0	64.9
				Spreads (bps)	290.0	-	390.0	383.6
	738		Consensus
	264		Other
Total subprime private-label securities	1,453
Mortgage revenue bonds	582		Discounted Cash Flow	Spreads (bps)	103.1	-	440.0	342.1
	19		Other
Total mortgage revenue bonds	601
Other	102		Discounted Cash Flow	Spreads (bps)	490.0			490.0
Total trading securities	$	2,811



	Fair Value Measurements as of March 31, 2014
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	$	13	Other
Alt-A private-label securities⁽³⁾	1,740		Consensus	Default Rate (%)	0.2	-	9.9	3.8
				Prepayment Speed (%)	0.4	-	39.0	7.2
				Severity (%)	0.8	-	81.3	55.8
				Spreads (bps)	192.0	-	365.0	296.6
	649		Consensus
	621		Discounted Cash Flow	Default Rate (%)	1.6	-	17.2	6.3
				Prepayment Speed (%)	0.0	-	17.4	5.0
				Severity (%)	0.2	-	78.3	57.2
				Spreads (bps)	195.0	-	399.6	315.3
	560		Other
Total Alt-A private-label securities	3,570
Subprime private-label securities ⁽³⁾	2,826		Consensus	Default Rate (%)	0.0	-	25.0	6.0
				Prepayment Speed (%)	0.1	-	7.9	2.1
				Severity (%)	0.5	-	99.1	80.5
				Spreads (bps)	160.0	-	440.0	293.0
	2,796		Consensus
	1,068		Discounted Cash Flow	Default Rate (%)	0.9	-	9.3	4.9
				Prepayment Speed (%)	0.4	-	13.2	3.0
				Severity (%)	7.7	-	100.0	83.7
				Spreads (bps)	160.0	-	390.0	278.2
	340		Other
Total subprime private-label securities	7,030
Mortgage revenue bonds	2,165		Single Vendor	Spreads (bps)	0.0	-	393.9	75.8
	1,064		Single Vendor
	1,767		Discounted Cash Flow	Spreads (bps)	0.0	-	644.9	330.2
	10		Other
Total mortgage revenue bonds	5,006
Other	371		Consensus	Default Rate (%)	0.7	-	9.8	4.7
				Prepayment Speed (%)	3.0	-	7.6	3.2
				Severity (%)	60.8	-	100.0	85.9
				Spreads (bps)	236.4	-	484.8	331.7
	397		Consensus
	915		Discounted Cash Flow	Default Rate (%)	1.4	-	5.0	4.2
				Prepayment Speed (%)	3.0	-	8.0	4.0
				Severity (%)	4.5	-	85.0	67.5
				Spreads (bps)	182.1	-	476.0	367.2
	1,161		Other
Total Other	2,844
Total available-for-sale securities	$	18,463



	Fair Value Measurements as of March 31, 2014
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans of consolidated trusts:
Single-family	$	1,751		Build-Up	Default Rate (%)	0.1	-	98.6	15.6
					Prepayment Speed (%)	2.5	-	50.4	15.5
					Severity (%)	5.1	-	100.0	28.0
	613			Discounted Cash Flow	Default Rate (%)	1.2	-	12.3	3.8
					Prepayment Speed (%)	0.5	-	14.2	5.4
					Severity (%)	43.5	-	100.0	83.5
					Spreads (bps)	160.0	-	915.0	326.6
	66			Other
Total single-family	2,430
Multifamily	178			Build-Up	Spreads (bps)	53.0	-	266.4	115.4
Total mortgage loans of consolidated trusts	$	2,608
Net derivatives	$	(84	)	Internal Model
	66			Dealer Mark
	(5		)	Other
Total net derivatives	$	(23	)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(310	)	Discounted Cash Flow
Of consolidated trusts	(352		)	Discounted Cash Flow	Default Rate (%)	1.2	-	5.5	2.9
					Prepayment Speed (%)	0.5	-	100.0	10.3
					Severity (%)	43.5	-	100.0	87.3
					Spreads (bps)	120.1	-	915.0	416.6
	(154		)	Other
Total of consolidated trusts	(506		)
Total long-term debt	$	(816	)



	Fair Value Measurements as of December 31, 2013
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related securities:
Agency⁽²⁾	$	44	Other
Alt-A private-label securities⁽³⁾	60		Single Vendor	Default Rate (%)	6.0	-	10.8	8.7
				Prepayment Speed (%)	4.1	-	5.4	4.6
				Severity (%)	76.1	-	92.7	83.1
				Spreads (bps)	414.3	-	421.7	417.5
	325		Consensus	Default Rate (%)	6.9	-	10.4	8.9
				Prepayment Speed (%)	1.9	-	2.5	2.2
				Severity (%)	77.3	-	97.8	88.7
				Spreads (bps)	298.3	-	420.2	366.3
	85		Consensus
	148		Discounted Cash Flow	Default Rate (%)	4.0	-	6.9	6.5
				Prepayment Speed (%)	1.9	-	3.4	2.2
				Severity (%)	42.7	-	77.3	67.6
				Spreads (bps)	325.4	-	439.4	418.6
Total Alt-A private-label securities	618
Subprime private-label securities⁽³⁾	113		Single Vendor	Default Rate (%)	3.1	-	7.5	3.9
				Prepayment Speed (%)	1.8	-	2.5	2.0
				Severity (%)	75.0	-	87.2	75.8
				Spreads (bps)	325.0			325.0
	77		Single Vendor
	400		Consensus	Default Rate (%)	3.0	-	9.2	6.4
				Prepayment Speed (%)	1.4	-	2.2	1.9
				Severity (%)	50.4	-	87.2	74.4
				Spreads (bps)	325.0	-	425.0	353.0
	808		Consensus
	50		Discounted Cash Flow	Default Rate (%)	6.9			6.9
				Prepayment Speed (%)	0.1			0.1
				Severity (%)	75.0			75.0
				Spreads (bps)	325.0			325.0
Total subprime private-label securities	1,448
Mortgage revenue bonds	539		Discounted Cash Flow	Spreads (bps)	35.0	-	440.0	340.6
	26		Other
Total mortgage revenue bonds	565
Other	99		Discounted Cash Flow	Spreads (bps)	525.0			525.0
Total trading securities	$	2,774



	Fair Value Measurements as of December 31, 2013
	Fair Value		Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	$	15	Other
Alt-A private-label securities⁽³⁾	139		Single Vendor	Default Rate (%)	0.9	-	6.4	3.9
				Prepayment Speed (%)	9.3	-	11.9	11.3
				Severity (%)	53.7	-	82.6	68.8
				Spreads (bps)	300.0	-	400.0	349.3
	435		Single Vendor
	1,948		Consensus	Default Rate (%)	0.1	-	10.3	3.5
				Prepayment Speed (%)	0.1	-	32.9	9.9
				Severity (%)	7.2	-	100.0	62.3
				Spreads (bps)	210.6	-	404.2	336.7
	740		Consensus
	420		Discounted Cash Flow	Default Rate (%)	2.3	-	10.1	5.1
				Prepayment Speed (%)	1.2	-	7.0	3.4
				Severity (%)	45.2	-	79.5	60.5
				Spreads (bps)	220.2	-	500.0	381.3
	109		Other
Total Alt-A private-label securities	3,791
Subprime private-label securities⁽³⁾	442		Single Vendor	Default Rate (%)	1.8	-	11.0	7.4
				Prepayment Speed (%)	1.0	-	9.4	2.0
				Severity (%)	65.0	-	100.0	82.2
				Spreads (bps)	275.0	-	375.0	315.2
	322		Single Vendor
	2,981		Consensus	Default Rate (%)	0.0	-	36.8	7.4
				Prepayment Speed (%)	0.3	-	9.7	2.3
				Severity (%)	36.8	-	100.0	81.7
				Spreads (bps)	175.0	-	375.0	319.9
	2,442		Consensus
	816		Discounted Cash Flow	Default Rate (%)	0.7	-	7.6	5.1
				Prepayment Speed (%)	0.2	-	12.5	4.1
				Severity (%)	43.8	-	98.0	79.5
				Spreads (bps)	175.0	-	375.0	292.4
	65		Other
Total subprime private-label securities	7,068
Mortgage revenue bonds	1,937		Single Vendor	Spreads (bps)	0.0	-	463.2	112.1
	1,386		Single Vendor
	1,899		Discounted Cash Flow	Spreads (bps)	5.5	-	490.0	310.0
	31		Other
Total mortgage revenue bonds	5,253
Other	122		Single Vendor
	483		Consensus	Default Rate (%)	0.1	-	5.0	5.0
				Prepayment Speed (%)	3.0	-	11.4	3.0
				Severity (%)	65.0	-	85.0	84.6
				Spreads (bps)	275.0	-	925.0	526.4
	625		Consensus
	610		Discounted Cash Flow	Default Rate (%)	5.0			5.0
				Prepayment Speed (%)	10.0			10.0
				Severity (%)	55.0			55.0
				Spreads (bps)	300.0	-	511.0	469.5
	1,045		Other
Total Other	2,885
Total available-for-sale securities	$	19,012



	Fair Value Measurements as of December 31, 2013
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans of consolidated trusts:
Single-family	$	1,828		Build-Up	Default Rate (%)	0.1	-	95.6	15.7
					Prepayment Speed (%)	2.3	-	37.6	14.1
					Severity (%)	0.0	-	100.0	26.6
	219			Consensus
	112			Consensus	Default Rate (%)	1.1	-	4.7	3.2
					Prepayment Speed (%)	0.2	-	16.7	15.2
					Severity (%)	63.9	-	89.5	85.6
					Spreads (bps)	175.0	-	950.0	293.9
	310			Discounted Cash Flow	Default Rate (%)	1.2	-	15.7	7.0
					Prepayment Speed (%)	1.9	-	16.7	7.0
					Severity (%)	58.8	-	97.7	75.5
					Spreads (bps)	175.0	-	360.6	252.1
	60			Other
Total single-family	2,529
Multifamily	175			Build-Up	Spreads (bps)	62.0	-	243.4	114.3
Total mortgage loans of consolidated trusts	$	2,704
Net derivatives	$	(64	)	Internal Model
	32			Dealer Mark
	(8		)	Other
Total net derivatives	$	(40	)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(266	)	Discounted Cash Flow
	(689		)	Consensus	Default Rate (%)	0.2			0.2
					Prepayment Speed (%)	8.4			8.4
					Spreads (bps)	171.000	-	438.000	306.2
Total of Fannie Mae	(955		)
Of consolidated trusts	(227		)	Consensus
	(116		)	Consensus	Default Rate (%)	1.1	-	4.7	3.2
					Prepayment Speed (%)	0.2	-	16.7	15.2
					Severity (%)	63.9	-	89.5	85.6
					Spreads (bps)	175.0	-	950.0	295.1
	(80		)	Single Vendor
	(95		)	Other
Total of consolidated trusts	(518		)
Total long-term debt	$	(1,473	)

_________

⁽¹⁾

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


⁽²⁾	Includes Fannie Mae, Freddie Mac and Ginnie Mae securities.


⁽³⁾	Default Rate as disclosed represents the estimated beginning annualized rate of default and is used as a basis to forecast the future default rates that serve as an input for valuation.

Level 3 Assets Measured on Nonrecurring Basis [Table Text Block]

The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2014 and December 31, 2013. The significant unobservable inputs related to these techniques primarily relate to collateral dependent valuations. The related ranges and weighted averages are not meaningful when aggregated as they vary significantly from property to property.



		Fair Value Measurements as of
	Valuation Techniques	March 31, 2014		December 31, 2013
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	118	$	132
	Build-Up	114		—
Total mortgage loans held for sale, at lower of cost or fair value		232		132
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae	Internal Model	18,039		19,966
Of consolidated trusts	Internal Model	56		79
Multifamily mortgage loans held for investment, at amortized cost	Appraisals	36		39
	Broker Price Opinions	196		248
	Build-Up	522		—
	Asset Manager Estimate	949		1,230
	Other	11		16
Total multifamily mortgage loans held for investment, at amortized cost		1,714		1,533
Acquired property, net:
Single-family	Accepted Offers	993		691
	Appraisals	1,251		1,077
	Walk Forwards	1,151		1,106
	Internal Model	957		1,049
	Other	185		118
Total single-family		4,537		4,041
Multifamily	Accepted Offers	15		24
	Appraisals	52		65
	Broker Price Opinions	45		9
Total multifamily		112		98
Other Assets	Appraisals	1		26
	Walk Forwards	4		9
	Internal Model	56		81
	Other	4		5
Total other assets		65		121
Total nonrecurring assets at fair value		$	24,755	$	25,970

Fair Value of Financial Instruments [Table Text Block]

The following table displays the carrying value and estimated fair value of our financial instruments as of March 31, 2014 and December 31, 2013. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans, which are off-balance sheet financial instruments that we do not record in our condensed consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes certain financial instruments, such as plan obligations for pension and postretirement health care benefits, employee stock option and stock purchase plans, and also excludes all non-financial instruments. As a result, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities.



	As of March 31, 2014
	Carrying Value		Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment			Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents and restricted cash	$	38,639	$	29,239	$	9,400	$	—	$	—		$	38,639
Federal funds sold and securities purchased under agreements to resell or similar arrangements	12,750		—		12,750		—		—			12,750
Trading securities	31,795		17,587		11,397		2,811		—			31,795
Available-for-sale securities	37,128		—		18,665		18,463		—			37,128
Mortgage loans held for sale	1,494		—		157		1,345		—			1,502
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	251,899		—		28,725		213,181		—			241,906
Of consolidated trusts	2,764,623		—		2,588,130		181,818		—			2,769,948
Mortgage loans held for investment	3,016,522		—		2,616,855		394,999		—			3,011,854
Advances to lenders	3,904		—		3,362		518		—			3,880
Derivative assets at fair value	836		—		9,160		98		(8,422		)	836
Guaranty assets and buy-ups	261		—		—		710		—			710
Total financial assets	$	3,143,329	$	46,826	$	2,681,746	$	418,944	$	(8,422	)	$	3,139,094

Financial liabilities:
Federal funds purchased and securities sold under agreements to repurchase	$	25	$	—	$	25	$	—	$	—		$	25
Short-term debt:
Of Fannie Mae	65,448		—		65,460		—		—			65,460
Of consolidated trusts	1,899		—		—		1,899		—			1,899
Long-term debt:
Of Fannie Mae	416,405		—		426,479		906		—			427,385
Of consolidated trusts	2,710,943		—		2,711,787		13,518		—			2,725,305
Derivative liabilities at fair value	209		—		10,130		121		(10,042		)	209
Guaranty obligations	467		—		—		2,107		—			2,107
Total financial liabilities	$	3,195,396	$	—	$	3,213,881	$	18,551	$	(10,042	)	$	3,222,390



	As of December 31, 2013
	Carrying Value		Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment			Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash and cash equivalents and restricted cash	$	48,223	$	36,633	$	11,590	$	—	$	—		$	48,223
Federal funds sold and securities purchased under agreements to resell or similar arrangements	38,975		—		38,975		—		—			38,975
Trading securities	30,768		16,306		11,688		2,774		—			30,768
Available-for-sale securities	38,171		—		19,159		19,012		—			38,171
Mortgage loans held for sale	380		—		185		195		—			380
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	259,638		—		29,920		215,960		—			245,880
Of consolidated trusts	2,766,222		—		2,569,747		176,395		—			2,746,142
Mortgage loans held for investment	3,025,860		—		2,599,667		392,355		—			2,992,022
Advances to lenders	3,727		—		3,165		523		—			3,688
Derivative assets at fair value	2,073		—		10,430		65		(8,422		)	2,073
Guaranty assets and buy-ups	267		—		—		706		—			706
Total financial assets	$	3,188,444	$	52,939	$	2,694,859	$	415,630	$	(8,422	)	$	3,155,006

Financial liabilities:
Short-term debt:
Of Fannie Mae	$	72,295	$	—	$	72,304	$	—	$	—		$	72,304
Of consolidated trusts	2,154		—		—		2,154		—			2,154
Long-term debt:
Of Fannie Mae	457,139		—		463,991		1,557		—			465,548
Of consolidated trusts	2,702,935		—		2,684,224		13,362		—			2,697,586
Derivative liabilities at fair value	1,469		—		10,734		105		(9,370		)	1,469
Guaranty obligations	485		—		—		2,433		—			2,433
Total financial liabilities	$	3,236,477	$	—	$	3,231,253	$	19,611	$	(9,370	)	$	3,241,494

Fair Value Option [Table Text Block]

The following table displays the fair value and unpaid principal balance of the financial instruments for which we have made fair value elections as of March 31, 2014 and December 31, 2013.



		As of
		March 31, 2014									December 31, 2013
	Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾			Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts⁽²⁾
		(Dollars in millions)
Fair value		$	14,637		$	1,775		$	15,373		$	14,268		$	1,308		$	14,976
Unpaid principal balance		14,650			1,671			14,301			14,440			1,290			13,988

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $192 million and $196 million as of March 31, 2014 and December 31, 2013, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of March 31, 2014 and December 31, 2013 was $77 million and $74 million, respectively. Includes loans that are 90 days or more past due with a fair value of $279 million and $288 million as of March 31, 2014 and December 31, 2013, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of March 31, 2014 and December 31, 2013 was $81 million and $75 million, respectively.


⁽²⁾	Includes interest-only debt instruments with no unpaid principal balance and a fair value of $79 million and $85 million as of March 31, 2014 and December 31, 2013, respectively.

The following table displays fair value gains and losses, net, including changes attributable to instrument-specific credit risk, for loans and debt for which the fair value election was made. Amounts are recorded as a component of “Fair value (losses) gains, net” in our condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013.



	For the Three Months Ended March 31,
	2014										2013
	Loans		Long-Term Debt				Total (Losses) Gains				Loans			Long-Term Debt				Total Losses
	(Dollars in millions)
Changes in instrument-specific credit risk	$	9		$	(51	)		$	(42	)	$	(65	)		$	(5	)		$	(70	)
Other changes in fair value	123			(116		)		7			(157		)		66				(91		)
Fair value (losses) gains, net	$	132		$	(167	)		$	(35	)	$	(222	)		$	61			$	(161	)

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References+ Details