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Segment Reporting
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
Our three reportable segments are: Single-Family, Multifamily and Capital Markets. We use these three segments to generate revenue and manage business risk, and each segment is based on the type of business activities it performs. Under our segment reporting, the sum of the results for our three business segments does not equal our condensed consolidated statements of operations and comprehensive income, as we separate the activity related to our consolidated trusts from the results generated by our three segments. Our business segment financial results include directly attributable revenues and expenses. Additionally, we allocate to each of our segments: (1) capital using FHFA minimum capital requirements adjusted for over- or under-capitalization; (2) indirect administrative costs; and (3) a provision or benefit for federal income taxes. In addition, we allocate intracompany guaranty fee income as a charge from the Single-Family and Multifamily segments to Capital Markets for managing the credit risk on mortgage loans held by the Capital Markets group. We also include an eliminations/adjustments category to reconcile our business segment financial results and the activity related to our consolidated trusts to net income in our condensed consolidated statements of operations and comprehensive income.
The following tables display our business segment financial results for the three and six months ended June 30, 2014 and 2013.
 
For the Three Months Ended June 30, 2014
 
Business Segments
 
Other Activity/Reconciling Items
 
 
 
Single-Family
 
Multifamily
 
Capital Markets
 
Consolidated Trusts(1)
 
Eliminations/ Adjustments(2)
 
Total Results
 
 
(Dollars in millions)
Net interest income (loss)
$
5

 
 
$
(21
)
 
 
$
1,917

 
 
$
2,739

 
 
$
264

(3) 
 
$
4,904

 
Benefit for credit losses
1,603

 
 
36

 
 
—

 
 
—

 
 
—

 
 
1,639

 
Net interest income after benefit for credit losses
1,608

 
 
15

 
 
1,917

 
 
2,739

 
 
264

 
 
6,543

 
Guaranty fee income (expense)(4)
2,893

 
 
317

 
 
(241
)
 
 
(1,452
)
(5) 
 
(1,476
)
(5) 
 
41

(5) 
Investment (losses) gains, net
(1
)
 
 
39

 
 
1,648

 
 
(104
)
 
 
(1,076
)
(6) 
 
506

 
Net other-than-temporary impairments
—

 
 
—

 
 
(23
)
 
 
—

 
 
—

 
 
(23
)
 
Fair value (losses) gains, net
(2
)
 
 
—

 
 
(1,098
)
 
 
171

 
 
(5
)
(7) 
 
(934
)
 
Debt extinguishment gains (losses), net
—

 
 
—

 
 
41

 
 
(3
)
 
 
—

 
 
38

 
Gains from partnership investments(8)
—

 
 
34

 
 
—

 
 
—

 
 
1

 
 
35

 
Fee and other income (expense)
181

 
 
31

 
 
136

 
 
(95
)
 
 
89

 
 
342

 
Administrative expenses
(458
)
 
 
(75
)
 
 
(164
)
 
 
—

 
 
—

 
 
(697
)
 
Foreclosed property income
178

 
 
36

 
 
—

 
 
—

 
 
—

 
 
214

 
TCCA fees(4)
(335
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(335
)
 
Other expenses
(237
)
 
 
(12
)
 
 
(57
)
 
 
—

 
 
(5
)
 
 
(311
)
 
Income before federal income taxes
3,827

 
 
385

 
 
2,159

 
 
1,256

 
 
(2,208
)
 
 
5,419

 
Provision for federal income taxes
(1,133
)
 
 
(9
)
 
 
(610
)
 
 
—

 
 
—

 
 
(1,752
)
 
Net income
2,694

 
 
376

 
 
1,549

 
 
1,256

 
 
(2,208
)
 
 
3,667

 
Less: Net income attributable to noncontrolling interest
—

 
 
—

 
 
—

 
 
—

 
 
(1
)
(9) 
 
(1
)
 
Net income attributable to Fannie Mae
$
2,694

 
 
$
376

 
 
$
1,549

 
 
$
1,256

 
 
$
(2,209
)
 
 
$
3,666

 

 
For the Six Months Ended June 30, 2014
 
Business Segments
 
Other Activity/Reconciling Items
 
 
 
Single-Family
 
Multifamily
 
Capital Markets
 
Consolidated Trusts(1)
 
Eliminations/ Adjustments(2)
 
Total Results
 
 
(Dollars in millions)
Net interest (loss) income
$
(43
)
 
 
$
(43
)
 
 
$
3,747

 
 
$
5,437

 
 
$
544

(3) 
 
$
9,642

 
Benefit for credit losses
2,348

 
 
65

 
 
—

 
 
—

 
 
—

 
 
2,413

 
Net interest income after benefit for credit losses
2,305

 
 
22

 
 
3,747

 
 
5,437

 
 
544

 
 
12,055

 
Guaranty fee income (expense)(4)
5,763

 
 
628

 
 
(487
)
 
 
(2,879
)
(5) 
 
(2,939
)
(5) 
 
86

(5) 
Investment (losses) gains, net
(1
)
 
 
42

 
 
2,984

 
 
(162
)
 
 
(2,211
)
(6) 
 
652

 
Net other-than-temporary impairments
—

 
 
—

 
 
(74
)
 
 
—

 
 
—

 
 
(74
)
 
Fair value (losses) gains, net
(7
)
 
 
—

 
 
(2,435
)
 
 
219

 
 
99

(7) 
 
(2,124
)
 
Debt extinguishment gains, net
—

 
 
—

 
 
34

 
 
4

 
 
—

 
 
38

 
Gains from partnership investments(8)
—

 
 
79

 
 
—

 
 
—

 
 
1

 
 
80

 
Fee and other income (expense)
325

 
 
55

 
 
4,269

 
 
(171
)
 
 
174

 
 
4,652

 
Administrative expenses
(908
)
 
 
(148
)
 
 
(313
)
 
 
—

 
 
—

 
 
(1,369
)
 
Foreclosed property income
435

 
 
41

 
 
—

 
 
—

 
 
—

 
 
476

 
TCCA fees(4)
(657
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(657
)
 
Other expenses
(392
)
 
 
(13
)
 
 
(65
)
 
 
—

 
 
(17
)
 
 
(487
)
 
Income before federal income taxes
6,863

 
 
706

 
 
7,660

 
 
2,448

 
 
(4,349
)
 
 
13,328

 
Provision for federal income taxes
(2,060
)
 
 
—

 
 
(2,276
)
 
 
—

 
 
—

 
 
(4,336
)
 
Net income
4,803

 
 
706

 
 
5,384

 
 
2,448

 
 
(4,349
)
 
 
8,992

 
Less: Net income attributable to noncontrolling interest
—

 
 
—

 
 
—

 
 
—

 
 
(1
)
(9) 
 
(1
)
 
Net income attributable to Fannie Mae
$
4,803

 
 
$
706

 
 
$
5,384

 
 
$
2,448

 
 
$
(4,350
)
 
 
$
8,991

 

 
For the Three Months Ended June 30, 2013(10)
 
Business Segments
 
Other Activity/Reconciling Items
 
 
 
Single-Family
 
Multifamily
 
Capital Markets
 
Consolidated Trusts(1)
 
Eliminations/ Adjustments(2)

 
Total Results
 
 
(Dollars in millions)
Net interest (loss) income
$
(50
)
 
 
$
(17
)
 
 
$
2,680

 
 
$
2,621

 
 
$
433

(3) 
 
$
5,667

 
Benefit for credit losses
5,353

 
 
30

 
 
—

 
 
—

 
 
—

 
 
5,383

 
Net interest income after benefit for credit losses
5,303

 
 
13

 
 
2,680

 
 
2,621

 
 
433

 
 
11,050

 
Guaranty fee income (expense)(4)
2,544

 
 
300

 
 
(283
)
 
 
(1,283
)
(5) 
 
(1,227
)
(5) 
 
51

(5) 
Investment gains (losses), net
1

 
 
4

 
 
898

 
 
(89
)
 
 
(524
)
(6) 
 
290

 
Net other-than-temporary impairments
—

 
 
—

 
 
(6
)
 
 
—

 
 
—

 
 
(6
)
 
Fair value (losses) gains, net
(1
)
 
 
—

 
 
841

 
 
(214
)
 
 
203

(7) 
 
829

 
Debt extinguishment gains, net
—

 
 
—

 
 
3

 
 
24

 
 
—

 
 
27

 
Gains from partnership investments(8)
—

 
 
104

 
 
—

 
 
—

 
 
11

 
 
115

 
Fee and other income (expense)
179

 
 
38

 
 
255

 
 
(86
)
 
 
48

 
 
434

 
Administrative expenses
(419
)
 
 
(67
)
 
 
(140
)
 
 
—

 
 
—

 
 
(626
)
 
Foreclosed property income
328

 
 
4

 
 
—

 
 
—

 
 
—

 
 
332

 
TCCA fees(4)
(233
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(233
)
 
Other expenses
(154
)
 
 
—

 
 
(8
)
 
 
—

 
 
(21
)
 
 
(183
)
 
Income before federal income taxes
7,548

 
 
396

 
 
4,240

 
 
973

 
 
(1,077
)
 
  
12,080

   
Provision for federal income taxes
(1,050
)
 
 
(10
)
 
 
(925
)
 
 
—

 
 
—

 
  
(1,985
)
   
Net income
6,498

 
 
386

 
 
3,315

 
 
973

 
 
(1,077
)
 
 
10,095

 
Less: Net income attributable to noncontrolling interest
—

 
 
—

 
 
—

 
 
—

 
 
(11
)
(9) 
 
(11
)
 
Net income attributable to Fannie Mae
$
6,498

 
 
$
386

 
 
$
3,315

 
 
$
973

 
 
$
(1,088
)
 
 
$
10,084

 
 
For the Six Months Ended June 30, 2013(10)
 
Business Segments
 
Other Activity/Reconciling Items
 
 
 
 
Single-Family
 
Multifamily
 
Capital Markets
 
Consolidated Trusts(1)
 
Eliminations/ Adjustments(2)

 
Total Results
 
 
(Dollars in millions)
Net interest income (loss)
$
470

 
 
$
(28
)
 
 
$
5,422

 
 
$
5,218

 
 
$
889

(3) 
 
$
11,971

 
Benefit for credit losses
6,134

 
 
206

 
 
—

 
 
—

 
 
—

 
 
6,340

 
Net interest income after benefit for credit losses
6,604

 
 
178

 
 
5,422

 
 
5,218

 
 
889

 
 
18,311

 
Guaranty fee income (expense)(4)
4,919

 
 
591

 
 
(582
)
 
 
(2,487
)
(5) 
 
(2,336
)
(5) 
 
105

(5) 
Investment gains (losses), net
3

 
 
11

 
 
2,247

 
 
(156
)
 
 
(1,697
)
(6) 
 
408

 
Net other-than-temporary impairments
—

 
 
—

 
 
(15
)
 
 
—

 
 
—

 
 
(15
)
 
Fair value (losses) gains, net
(3
)
 
 
—

 
 
1,716

 
 
(418
)
 
 
368

(7) 
 
1,663

 
Debt extinguishment (losses) gains, net
—

 
 
—

 
 
(37
)
 
 
41

 
 
—

 
 
4

 
Gains from partnership investments(8)
—

 
 
163

 
 
—

 
 
—

 
 
11

 
 
174

 
Fee and other income (expense)
351

 
 
89

 
 
604

 
 
(170
)
 
 
74

 
 
948

 
Administrative expenses
(845
)
 
 
(137
)
 
 
(285
)
 
 
—

 
 
—

 
 
(1,267
)
 
Foreclosed property income
581

 
 
11

 
 
—

 
 
—

 
 
—

 
 
592

 
TCCA fees(4)
(419
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(419
)
 
Other (expenses) income
(322
)
 
 
1

 
 
50

 
 
—

 
 
(39
)
 
 
(310
)
 
Income before federal income taxes
10,869

 
 
907

 
 
9,120

 
 
2,028

 
 
(2,730
)
 
 
20,194

 
Benefit for federal income taxes(11)
30,528

 
 
7,978

 
 
10,080

 
 
—

 
 
—

 
 
48,586

 
Net income
41,397

 
 
8,885

 
 
19,200

 
 
2,028

 
 
(2,730
)
 
 
68,780

 
Less: Net income attributable to noncontrolling interest
—

 
 
—

 
 
—

 
 
—

 
 
(11
)
(9) 
 
(11
)
 
Net income attributable to Fannie Mae
$
41,397

 
 
$
8,885

 
 
$
19,200

 
 
$
2,028

 
 
$
(2,741
)
 
 
$
68,769

 
__________
(1) 
Represents activity related to the assets and liabilities of consolidated trusts in our condensed consolidated balance sheets.
(2) 
Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our consolidated results.
(3) 
Represents the amortization expense of cost basis adjustments on securities in the Capital Markets group’s retained mortgage portfolio that on a GAAP basis are eliminated.
(4) 
Includes the impact of a 10 basis point guaranty fee increase implemented pursuant to the TCCA, the incremental revenue from which must be remitted to Treasury. The resulting revenue is included in guaranty fee income and the expense is recognized as “TCCA fees.”
(5) 
Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee income related to unconsolidated Fannie Mae MBS trusts and other credit enhancement arrangements is included in fee and other income in our condensed consolidated statements of operations and comprehensive income.
(6) 
Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale securities that are issued by consolidated trusts and in the Capital Markets group’s retained mortgage portfolio. The adjustment also includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio securitization transactions that do not qualify for sale accounting under GAAP.
(7) 
Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are in the Capital Markets group’s retained mortgage portfolio.
(8) 
Gains from partnership investments are included in other expenses in our condensed consolidated statements of operations and comprehensive income.
(9) 
Represents the adjustment from equity method of accounting to consolidated accounting for partnership investments that are consolidated in our consolidated balance sheets.
(10) 
Certain prior period amounts have been reclassified to conform with the current period presentation.
(11) 
Primarily represented the release of the valuation allowance for our deferred tax assets that generally is directly attributable to each segment based on the nature of the item.