Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014.



		Fair Value Measurements as of March 31, 2015
	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		$	—		$	4,957		$	2		$	—			$	4,959
Freddie Mac		—			1,723			—			—				1,723
Ginnie Mae		—			214			—			—				214
Alt-A private-label securities		—			261			572			—				833
Subprime private-label securities		—			—			876			—				876
CMBS		—			2,478			—			—				2,478
Mortgage revenue bonds		—			—			742			—				742
Other		—			—			94			—				94
Non-mortgage-related securities:
U.S. Treasury securities		19,367			—			—			—				19,367
Total trading securities		19,367			9,633			2,286			—				31,286
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			5,202			205			—				5,407
Freddie Mac		—			5,252			5			—				5,257
Ginnie Mae		—			458			—			—				458
Alt-A private-label securities		—			1,978			2,486			—				4,464
Subprime private-label securities		—			—			4,608			—				4,608
CMBS		—			1,370			—			—				1,370
Mortgage revenue bonds		—			—			3,560			—				3,560
Other		—			1			2,607			—				2,608
Total available-for-sale securities		—			14,261			13,471			—				27,732
Mortgage loans of consolidated trusts		—			13,760			1,810			—				15,570
Other assets:
Risk management derivatives:
Swaps		—			6,666			161			—				6,827
Swaptions		—			52			—			—				52
Other		—			—			27			—				27
Netting adjustment		—			—			—			(5,626		)		(5,626		)
Mortgage commitment derivatives		—			385			27			—				412
Total other assets		—			7,103			215			(5,626		)		1,692
Total assets at fair value		$	19,367		$	44,757		$	17,782		$	(5,626	)		$	76,280



		Fair Value Measurements as of March 31, 2015
	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		$	—		$	7,529		$	391		$	—		$	7,920
Total of Fannie Mae		—			7,529			391			—			7,920
Of consolidated trusts		—			20,826			547			—			21,373
Total long-term debt		—			28,355			938			—			29,293
Other liabilities:
Risk management derivatives:
Swaps		—			11,078			145			—			11,223
Swaptions		—			1,047			—			—			1,047
Other		—			—			1			—			1
Netting adjustment		—			—			—			(12,036		)	(12,036		)
Mortgage commitment derivatives		—			564			3			—			567
Total other liabilities		—			12,689			149			(12,036		)	802
Total liabilities at fair value		$	—		$	41,044		$	1,087		$	(12,036	)	$	30,095



		Fair Value Measurements as of December 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)
Assets:
Trading securities:
Mortgage-related securities:
Fannie Mae		$	—		$	4,635		$	305		$	—			$	4,940
Freddie Mac		—			1,369			—			—				1,369
Ginnie Mae		—			166			—			—				166
Alt-A private-label securities		—			323			597			—				920
Subprime private-label securities		—			—			1,307			—				1,307
CMBS		—			2,515			—			—				2,515
Mortgage revenue bonds		—			—			722			—				722
Other		—			—			99			—				99
Non-mortgage-related securities:
U.S. Treasury securities		19,466			—			—			—				19,466
Total trading securities		19,466			9,008			3,030			—				31,504
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			5,639			—			—				5,639
Freddie Mac		—			5,522			6			—				5,528
Ginnie Mae		—			476			—			—				476
Alt-A private-label securities		—			2,538			3,140			—				5,678
Subprime private-label securities		—			—			5,240			—				5,240
CMBS		—			1,397			—			—				1,397
Mortgage revenue bonds		—			—			4,023			—				4,023
Other		—			2			2,671			—				2,673
Total available-for-sale securities		—			15,574			15,080			—				30,654
Mortgage loans of consolidated trusts		—			13,796			1,833			—				15,629
Other assets:
Risk management derivatives:
Swaps		—			6,085			150			—				6,235
Swaptions		—			153			—			—				153
Other		—			—			28			—				28
Netting adjustment		—			—			—			(5,186		)		(5,186		)
Mortgage commitment derivatives		—			251			4			—				255
Total other assets		—			6,489			182			(5,186		)		1,485
Total assets at fair value		$	19,466		$	44,867		$	20,125		$	(5,186	)		$	79,272



		Fair Value Measurements as of December 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		$	—		$	6,040		$	363		$	—			$	6,403
Total of Fannie Mae		—			6,040			363			—				6,403
Of consolidated trusts		—			18,956			527			—				19,483
Total long-term debt		—			24,996			890			—				25,886
Other liabilities:
Risk management derivatives:
Swaps		—			9,339			133			—				9,472
Swaptions		—			991			—			—				991
Other		—			—			1			—				1
Netting adjustment		—			—			—			(10,194		)		(10,194		)
Mortgage commitment derivatives		—			341			3			—				344
Total other liabilities		—			10,671			137			(10,194		)		614
Total liabilities at fair value		$	—		$	35,667		$	1,027		$	(10,194	)		$	26,500

__________


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

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, 2015 and 2014. 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, 2015 and 2014. 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, 2015
				Total (Losses) or Gains (Realized/Unrealized)																											Net Unrealized (Losses) Gains Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2015⁽⁵⁾
	Balance, December 31, 2014			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, 2015
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	305		$	(27	)			$	—		$	—	$	—		$	—	$	—		$	(278	)	$	2		$	2			$	(19	)
Alt-A private-label securities	597			8					—			—		—			—		(17		)	(44		)	28			572				8
Subprime private-label securities	1,307			1					—			—		(398		)	—		(34		)	—			—			876				107
Mortgage revenue bonds	722			35					—			—		(12		)	—		(3		)	—			—			742				33
Other	99			(2		)			—			—		—			—		(3		)	—			—			94				(2		)
Total trading securities	$	3,030		$	15		(6)(7)		$	—		$	—	$	(410	)	$	—	$	(57	)	$	(322	)	$	30		$	2,286			$	127		(6)(7)

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	239	$	(34	)	$	—	$	—		$	—		$	—		$	205			$	—
Freddie Mac	6			—					—			—		—			—		—			(1		)	—			5				—
Alt-A private-label securities	3,140			101					(78		)	—		(556		)	—		(124		)	(310		)	313			2,486				—
Subprime private-label securities	5,240			180					(101		)	—		(565		)	—		(146		)	—			—			4,608				—
Mortgage revenue bonds	4,023			23					52			—		(162		)	—		(376		)	—			—			3,560				—
Other	2,671			(138		)			140			—		—			—		(66		)	—			—			2,607				—
Total available-for-sale securities	$	15,080		$	166		(6)(8)		$	13		$	239	$	(1,317	)	$	—	$	(712	)	$	(311	)	$	313		$	13,471			$	—

Mortgage loans of consolidated trusts	$	1,833		$	34		(6)(7)		$	—		$	3	$	—		$	—	$	(77	)	$	(57	)	$	74		$	1,810			$	19		(6)(7)
Net derivatives	45			27			(7)		—			—		—			—		(6		)	—			—			66				39			(7)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(363	)	$	(28	)			$	—		$	—	$	—		$	—	$	—		$	—		$	—		$	(391	)		$	(28	)
Of consolidated trusts	(527		)	(13		)			—			—		—			—		9			50			(66		)	(547		)		(12		)
Total long-term debt	$	(890	)	$	(41	)	(7)		$	—		$	—	$	—		$	—	$	9		$	50		$	(66	)	$	(938	)		$	(40	)	(7)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Three Months Ended March 31, 2014
				Total (Losses) or Gains or (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		(7)	$	—	$	—	$	—		$	—		$	(95	)	$	(117	)	$	110		$	2,811			$	138		(7)

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		(6)(8)	$	526	$	—	$	(19	)	$	—		$	(864	)	$	(611	)	$	390		$	18,463			$	—

Mortgage loans of consolidated trusts	$	2,704		$	25		(6)(7)	$	—	$	24	$	—		$	—		$	(81	)	$	(148	)	$	84		$	2,608			$	11		(6)(7)
Net derivatives	(40		)	30			(7)	—		—		—			—			(12		)	(1		)	—			(23		)		11			(7)
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	)	(7)	$	—	$	—	$	—		$	(750	)	$	38		$	1,484		$	(24	)	$	(816	)		$	(45	)	(7)

__________


⁽¹⁾	Gains (losses) included in other comprehensive income are included in “Changes in unrealized gains on AFS, 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 CAS series. Prices for these securities were obtained from multiple third-party vendors or dealers. Transfers out of Level 3 also occurred for mortgage loans of consolidated trusts for which unobservable inputs used in valuations became less significant. 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 OTTI are not considered unrealized and are not included in this amount.


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


⁽⁷⁾	Gains (losses) are included in “Fair value losses, net” in our condensed consolidated statements of operations and comprehensive income.


⁽⁸⁾	Gains (losses) are included in “Investment gains, net” in our condensed consolidated statements of operations and comprehensive income.

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, 2015 and December 31, 2014.



	Fair Value Measurements as of March 31, 2015
	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⁾	$	2	Other
Alt-A private-label securities⁽³⁾	95		Single Vendor	Default Rate (%)	8.8			8.8
				Prepayment Speed (%)	2.3			2.3
				Severity (%)	82.2			82.2
				Spreads (bps)	281.2			281.2
	78		Consensus	Default Rate (%)	4.7	-	14.2	6.3
				Prepayment Speed (%)	2.5	-	13.2	4.3
				Severity (%)	36.4	-	46.5	38.1
				Spreads (bps)	230.0	-	253.6	249.6
	372		Consensus
	27		Other
Total Alt-A private-label securities	572
Subprime private-label securities⁽³⁾	322		Consensus	Default Rate (%)	4.3	-	9.8	5.9
				Prepayment Speed (%)	2.0	-	3.3	2.4
				Severity (%)	65.0	-	95.0	82.9
				Spreads (bps)	255.0			255.0
	281		Consensus
	121		Discounted Cash Flow	Default Rate (%)	5.4			5.4
				Prepayment Speed (%)	2.2			2.2
				Severity (%)	60.7			60.7
				Spreads (bps)	255.0			255.0
	152		Other
Total subprime private-label securities	876
Mortgage revenue bonds	723		Discounted Cash Flow	Spreads (bps)	27.5	-	323.4	253.1
	19		Other
Total mortgage revenue bonds	742
Other	94		Single Vendor	Spreads (bps)	383.4			383.4
Total trading securities	$	2,286



	Fair Value Measurements as of March 31, 2015
	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⁾	$	210	Other
Alt-A private-label securities⁽³⁾	266		Single Vendor	Default Rate (%)	1.7	-	10.4	4.7
				Prepayment Speed (%)	0.4	-	9.1	4.5
				Severity (%)	34.4	-	94.9	60.7
				Spreads (bps)	190.1	-	330.0	246.5
	784		Consensus	Default Rate (%)	0.0	-	15.2	4.3
				Prepayment Speed (%)	0.2	-	34.4	12.0
				Severity (%)	15.9	-	95.0	65.3
				Spreads (bps)	144.9	-	230.0	225.8
	795		Consensus
	224		Dealer Mark
	243		Discounted Cash Flow	Default Rate (%)	1.8	-	5.4	3.0
				Prepayment Speed (%)	6.2	-	15.2	9.4
				Severity (%)	35.0	-	64.0	54.6
				Spreads (bps)	188.0	-	348.5	296.8
	174		Other
Total Alt-A private-label securities	2,486
Subprime private-label securities⁽³⁾	286		Single Vendor
	2,362		Consensus	Default Rate (%)	1.0	-	91.8	6.6
				Prepayment Speed (%)	0.1	-	21.5	2.4
				Severity (%)	28.0	-	95.0	82.8
				Spreads (bps)	145.0	-	255.0	208.9
	1,233		Consensus
	232		Dealer Mark	Default Rate (%)	8.5	-	9.0	8.8
				Prepayment Speed (%)	1.8	-	2.0	1.9
				Severity (%)	77.8	-	95.0	86.9
				Spreads (bps)	205.0			205.0
	247		Dealer Mark
	248		Other
Total subprime private-label securities	4,608
Mortgage revenue bonds	1,365		Single Vendor	Spreads (bps)	10.0	-	466.6	71.3
	229		Single Vendor
	267		Dealer Mark	Spreads (bps)	197.2	-	316.1	299.0
	1,517		Discounted Cash Flow	Spreads (bps)	10.0	-	396.6	244.6
	182		Other
Total mortgage revenue bonds	3,560
Other	713		Consensus	Default Rate (%)	0.0	-	5.0	4.2
				Prepayment Speed (%)	3.0	-	14.2	4.3
				Severity (%)	0.0	-	95.0	61.1
				Spreads (bps)	205.0	-	428.3	289.2
	206		Consensus
	364		Dealer Mark	Default Rate (%)	5.0			5.0
				Prepayment Speed (%)	3.0			3.0
				Severity (%)	85.0			85.0
				Spreads (bps)	245.4	-	410.5	299.6



	473		Dealer Mark
	600		Discounted Cash Flow	Default Rate (%)	0.0	-	1.8	0.0
				Prepayment Speed (%)	0.0	-	8.0	0.0
				Severity (%)	0.0	-	95.0	0.2
				Spreads (bps)	230.0	-	336.0	321.8
	251		Other
Total other	2,607
Total available-for-sale securities	$	13,471



	Fair Value Measurements as of March 31, 2015
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans of consolidated trusts:
Single-family	$	900		Build-Up	Default Rate (%)	0.0	-	98.0	14.9
					Prepayment Speed (%)	3.8	-	99.7	16.9
					Severity (%)	0.0	-	100.0	24.1
	363			Consensus
	360			Discounted Cash Flow	Default Rate (%)	0.0	-	13.3	4.6
					Prepayment Speed (%)	0.1	-	11.6	7.3
					Severity (%)	53.3	-	95.0	80.3
					Spreads (bps)	145.0	-	655.0	212.6
	4			Other
Total single-family	1,627
Multifamily	183			Build-Up	Spreads (bps)	56.0	-	340.4	146.5
Total mortgage loans of consolidated trusts	$	1,810
Net derivatives	$	(119	)	Internal Model
	160			Dealer Mark
	25			Other
Total net derivatives	$	66
Long-term debt:
Of Fannie Mae:
Senior floating	$	(391	)	Discounted Cash Flow
Total of Fannie Mae	(391		)
Of consolidated trusts⁽⁴⁾	(290		)	Consensus
	(156		)	Discounted Cash Flow	Default Rate (%)	0.0	-	5.0	2.3
					Prepayment Speed (%)	0.1	-	100.0	30.8
					Severity (%)	60.0	-	95.0	76.9
					Spreads (bps)	66.0	-	655.0	245.8
	(101		)	Other
Total of consolidated trusts	(547		)
Total long-term debt	$	(938	)



	Fair Value Measurements as of December 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:
Agency⁽²⁾⁽⁴⁾	$	153	Single Vendor	Prepayment Speed (%)	100.0			100.0
				Spreads (bps)	256.5	-	350.8	293.4
	130		Consensus	Prepayment Speed (%)	100.0			100.0
				Spreads (bps)	184.6	-	219.5	197.5
	22		Other
Total Agency	305
Alt-A private-label securities⁽³⁾	290		Single Vendor	Default Rate (%)	8.3	-	9.1	8.5
				Prepayment Speed (%)	2.9	-	3.2	3.1
				Severity (%)	79.5	-	95.0	90.4
				Spreads (bps)	267.2	-	308.2	279.4
	66		Consensus	Default Rate (%)	5.4			5.4
				Prepayment Speed (%)	7.0			7.0
				Severity (%)	48.8			48.8
				Spreads (bps)	264.8			264.8
	151		Consensus
	90		Other
Total Alt-A private-label securities	597
Subprime private-label securities⁽³⁾	422		Consensus	Default Rate (%)	3.5	-	11.8	7.2
				Prepayment Speed (%)	1.4	-	5.2	2.8
				Severity (%)	72.1	-	95.0	85.9
				Spreads (bps)	265.0			265.0
	549		Consensus
	290		Discounted Cash Flow	Default Rate (%)	4.3	-	6.2	5.2
				Prepayment Speed (%)	2.3	-	4.2	3.3
				Severity (%)	62.2	-	95.0	73.8
				Spreads (bps)	265.0	-	382.1	283.7
	46		Other
Total subprime private-label securities	1,307
Mortgage revenue bonds	161		Dealer Mark	Spreads (bps)	288.1			288.1
	540		Discounted Cash Flow	Spreads (bps)	6.0	-	318.0	263.0
	21		Other
Total mortgage revenue bonds	722
Other	99		Dealer Mark
Total trading securities	$	3,030



	Fair Value Measurements as of December 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⁾	$	6	Other
Alt-A private-label securities⁽³⁾	322		Single Vendor	Default Rate (%)	0.2		-	13.1	4.6
				Prepayment Speed (%)	0.2		-	20.5	8.2
				Severity (%)	27.8		-	89.7	61.0
				Spreads (bps)	190.0		-	315.0	264.9
	493		Single Vendor
	1,187		Consensus	Default Rate (%)	0.4		-	31.2	5.1
				Prepayment Speed (%)	0.1		-	48.9	11.0
				Severity (%)	0.2		-	95.0	59.6
				Spreads (bps)	183.8		-	240.0	236.7
	691		Consensus
	403		Discounted Cash Flow	Default Rate (%)	5.0		-	11.5	7.0
				Prepayment Speed (%)	0.5		-	8.4	3.4
				Severity (%)	35.1		-	92.4	54.2
				Spreads (bps)	188.0		-	340.0	243.4
	44		Other
Total Alt-A private-label securities	3,140
Subprime private-label securities⁽³⁾	383		Single Vendor	Default Rate (%)	2.1		-	8.3	5.5
				Prepayment Speed (%)	1.5		-	3.3	2.1
				Severity (%)	65.4		-	95.0	78.5
				Spreads (bps)	215.0		-	262.0	230.0
	2,722		Consensus	Default Rate (%)	1.5		-	37.4	6.3
				Prepayment Speed (%)	0.1		-	17.7	2.6
				Severity (%)	1.5		-	95.0	84.4
				Spreads (bps)	155.0		-	265.0	220.0
	1,755		Consensus
	317		Discounted Cash Flow	Default Rate (%)	3.0		-	12.3	7.0
				Prepayment Speed (%)	1.1		-	9.0	4.1
				Severity (%)	28.9		-	91.8	81.2
				Spreads (bps)	155.0		-	895.0	250.5
	63		Other
Total subprime private-label securities	5,240
Mortgage revenue bonds	1,504		Single Vendor	Spreads (bps)	(11.5	)	-	361.5	52.7
	418		Single Vendor
	510		Dealer Mark	Spreads (bps)	222.8		-	322.1	265.9
	1,581		Discounted Cash Flow	Spreads (bps)	(11.5	)	-	620.2	251.4
	10		Other
Total mortgage revenue bonds	4,023
Other	337		Single Vendor	Default Rate (%)	1.7		-	5.0	4.4
				Prepayment Speed (%)	3.0		-	9.3	3.8
				Severity (%)	4.0		-	94.6	69.6
				Spreads (bps)	263.1		-	427.2	291.5
	720		Consensus	Default Rate (%)	0.1		-	6.6	3.9
				Prepayment Speed (%)	3.0		-	30.4	4.8
				Severity (%)	0.4		-	95.0	62.4
				Spreads (bps)	215.0		-	481.4	320.6
	1,215		Dealer Mark
	399		Other
Total other	2,671
Total available-for-sale securities	$	15,080



	Fair Value Measurements as of December 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	$	934		Build-Up	Default Rate (%)	0.0	-	99.0	14.9
					Prepayment Speed (%)	3.6	-	99.8	16.3
					Severity (%)	3.4	-	100.0	23.7
	279			Consensus
	402			Discounted Cash Flow	Default Rate (%)	2.7	-	13.1	5.5
					Prepayment Speed (%)	0.1	-	13.5	7.5
					Severity (%)	35.5	-	95.0	61.3
					Spreads (bps)	155.0	-	665.0	227.4
	39			Other
Total single-family	1,654
Multifamily	179			Build-Up	Spreads (bps)	59.0	-	323.4	137.3
Total mortgage loans of consolidated trusts	$	1,833
Net derivatives	$	(107	)	Internal Model
	150			Dealer Mark
	2			Other
Total net derivatives	$	45
Long-term debt:
Of Fannie Mae:
Senior floating	$	(363	)	Discounted Cash Flow
Of consolidated trusts⁽⁴⁾	(219		)	Consensus
	(205		)	Discounted Cash Flow	Default Rate (%)	2.7	-	11.9	4.0
					Prepayment Speed (%)	0.1	-	100.0	33.4
					Severity (%)	35.5	-	95.0	54.6
					Spreads (bps)	88.0	-	665.0	249.4
	(103		)	Other
Total of consolidated trusts	(527		)
Total long-term debt	$	(890	)

_________

⁽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 and Freddie Mac 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.


⁽⁴⁾	Includes instruments for which the prepayment speed as disclosed represents the estimated annualized rate of prepayment after all prepayment penalty provisions have expired and also instruments for which prepayment speed as disclosed represents the estimated rate of prepayment over the remaining life of the instrument.

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

March 31, 2015 and December 31, 2014. 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 (Level 3) as of
	Valuation Techniques	March 31, 2015			December 31, 2014
			(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus		$	202		$	110
Single-family mortgage loans held for investment, at amortized cost:
Of Fannie Mae	Internal Model		13,540			16,654
	Consensus		271			—
Of consolidated trusts	Other		20			60
Total single-family mortgage loans held for investment, at amortized cost			13,831			16,714
Multifamily mortgage loans held for investment, at amortized cost	Broker Price Opinions		83			45
	Asset Manager Estimate		557			580
	Other		11			—
Total multifamily mortgage loans held for investment, at amortized cost			651			625
Acquired property, net:
Single-family	Accepted Offers		873			864
	Appraisals		1,194			1,509
	Walk Forwards		800			1,173
	Internal Model		967			1,045
	Other		172			191
Total single-family			4,006			4,782
Multifamily	Accepted Offers		13			—
	Broker Price Opinions		35			127
	Other		—			13
Total multifamily			48			140
Other assets	Other		27			45
Total nonrecurring assets at fair value			$	18,765		$	22,416

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, 2015 and December 31, 2014. 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 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, 2015
	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	$	65,299	$	46,349	$	18,950	$	—	$	—		$	65,299
Federal funds sold and securities purchased under agreements to resell or similar arrangements	20,230		—		20,230		—		—			20,230
Trading securities	31,286		19,367		9,633		2,286		—			31,286
Available-for-sale securities	27,732		—		14,261		13,471		—			27,732
Mortgage loans held for sale	613		—		153		567		—			720
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	235,827		—		31,127		214,493		—			245,620
Of consolidated trusts	2,776,676		—		2,644,458		204,706		—			2,849,164
Mortgage loans held for investment	3,012,503		—		2,675,585		419,199		—			3,094,784
Advances to lenders	6,361		—		5,901		443		—			6,344
Derivative assets at fair value	1,692		—		7,103		215		(5,626		)	1,692
Guaranty assets and buy-ups	201		—		—		599		—			599
Total financial assets	$	3,165,917	$	65,716	$	2,751,816	$	436,780	$	(5,626	)	$	3,248,686

Financial liabilities:
Federal funds purchased and securities sold under agreements to repurchase	$	87	$	—	$	87	$	—	$	—		$	87
Short-term debt:
Of Fannie Mae	99,349		—		99,361		—		—			99,361
Of consolidated trusts	1,463		—		—		1,463		—			1,463
Long-term debt:
Of Fannie Mae	349,391		—		363,358		994		—			364,352
Of consolidated trusts	2,762,428		—		2,830,632		22,826		—			2,853,458
Derivative liabilities at fair value	802		—		12,689		149		(12,036		)	802
Guaranty obligations	367		—		—		1,536		—			1,536
Total financial liabilities	$	3,213,887	$	—	$	3,306,127	$	26,968	$	(12,036	)	$	3,321,059



	As of December 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	$	54,565	$	37,965	$	16,600	$	—	$	—		$	54,565
Federal funds sold and securities purchased under agreements to resell or similar arrangements	30,950		—		30,950		—		—			30,950
Trading securities	31,504		19,466		9,008		3,030		—			31,504
Available-for-sale securities	30,654		—		15,574		15,080		—			30,654
Mortgage loans held for sale	331		—		169		169		—			338
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	239,243		—		29,896		217,064		—			246,960
Of consolidated trusts	2,779,920		—		2,657,863		183,263		—			2,841,126
Mortgage loans held for investment	3,019,163		—		2,687,759		400,327		—			3,088,086
Advances to lenders	5,559		—		5,079		470		—			5,549
Derivative assets at fair value	1,485		—		6,489		182		(5,186		)	1,485
Guaranty assets and buy-ups	210		—		—		616		—			616
Total financial assets	$	3,174,421	$	57,431	$	2,771,628	$	419,874	$	(5,186	)	$	3,243,747

Financial liabilities:
Federal funds purchased and securities sold under agreements to repurchase	$	50	$	—	$	50	$	—	$	—		$	50
Short-term debt:
Of Fannie Mae	105,012		—		105,022		—		—			105,022
Of consolidated trusts	1,560		—		—		1,560		—			1,560
Long-term debt:
Of Fannie Mae	355,431		—		367,703		982		—			368,685
Of consolidated trusts	2,760,152		—		2,815,843		19,334		—			2,835,177
Derivative liabilities at fair value	614		—		10,671		137		(10,194		)	614
Guaranty obligations	382		—		—		1,579		—			1,579
Total financial liabilities	$	3,223,201	$	—	$	3,299,289	$	23,592	$	(10,194	)	$	3,312,687

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, 2015 and December 31, 2014.



		As of
		March 31, 2015									December 31, 2014
	Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts			Loans of Consolidated Trusts⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts
		(Dollars in millions)
Fair value		$	15,570		$	7,920		$	21,373		$	15,629		$	6,403		$	19,483
Unpaid principal balance		14,817			7,803			19,364			15,001			6,512			17,810

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $235 million and $240 million as of March 31, 2015 and December 31, 2014, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of March 31, 2015 and December 31, 2014 was $68 million and $75 million, respectively. Includes loans that are 90 days or more past due with a fair value of $261 million and $271 million as of March 31, 2015 and December 31, 2014, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of March 31, 2015 and December 31, 2014 was $74 million and $78 million, 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, net” in our condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2015 and 2014.



	For the Three Months Ended March 31,
	2015											2014
	Loans			Long-Term Debt				Total Losses				Loans		Long-Term Debt				Total (Losses)Gains
	(Dollars in millions)
Changes in instrument-specific credit risk	$	(12	)		$	(193	)		$	(205	)	$	9		$	(51	)		$	(42	)
Other changes in fair value	167				(188		)		(21		)	123			(116		)		7
Fair value gains (losses), net	$	155			$	(381	)		$	(226	)	$	132		$	(167	)		$	(35	)

- 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