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Segment Reporting
 6 Months Ended
Jun. 30, 2015
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 Months Ended June 30, 2015
 
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)
$
18

 
 
$
(26
)
 
 
$
1,513

 
 
$
3,922

 
 
$
250

(3) 
 
$
5,677

 
(Provision) benefit for credit losses
(1,056
)
 
 
23

 
 
—

 
 
—

 
 
—

 
 
(1,033
)
 
Net interest (loss) income after (provision) benefit for credit losses
(1,038
)
 
 
(3
)
 
 
1,513

 
 
3,922

 
 
250

 
 
4,644

 
Guaranty fee income (expense)(4)
3,092

 
 
357

 
 
(221
)
 
 
(2,343
)
(5) 
 
(848
)
(5) 
 
37

(5) 
Investment (losses) gains, net
(1
)
 
 
15

 
 
1,562

 
 
(275
)
 
 
(787
)
(6) 
 
514

 
Fair value gains, net
—

 
 
—

 
 
2,555

 
 
7

 
 
44

(7) 
 
2,606

 
Debt extinguishment (losses) gains, net
—

 
 
—

 
 
(7
)
 
 
10

 
 
—

 
 
3

 
(Losses) gains from partnership investments(8)
(10
)
 
 
43

 
 
—

 
 
—

 
 
—

 
 
33

 
Fee and other income (expense)
301

 
 
84

 
 
150

 
 
(90
)
 
 
74

 
 
519

 
Administrative expenses
(458
)
 
 
(83
)
 
 
(148
)
 
 
—

 
 
—

 
 
(689
)
 
Foreclosed property expense
(182
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(182
)
 
TCCA fees(4)
(397
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(397
)
 
Other expenses
(262
)
 
 
(6
)
 
 
(4
)
 
 
—

 
 
34

 
 
(238
)
 
Income before federal income taxes
1,045

 
 
407

 
 
5,400

 
 
1,231

 
 
(1,233
)
 
 
6,850

 
Provision for federal income taxes
(419
)
 
 
(41
)
 
 
(1,750
)
 
 
—

 
 
—

 
 
(2,210
)
 
Net income attributable to Fannie Mae
$
626

 
 
$
366

 
 
$
3,650

 
 
$
1,231

 
 
$
(1,233
)
 
 
$
4,640

 

 
For the Six Months Ended June 30, 2015
 
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)
$
27

 
 
$
(57
)
 
 
$
3,115

 
 
$
7,138

 
 
$
521

(3) 
 
$
10,744

 
(Provision) benefit for credit losses
(578
)
 
 
78

 
 
—

 
 
—

 
 
—

 
 
(500
)
 
Net interest (loss) income after (provision)benefit for credit losses
(551
)
 
 
21

 
 
3,115

 
 
7,138

 
 
521

 
 
10,244

 
Guaranty fee income (expense)(4)
6,132

 
 
697

 
 
(448
)
 
 
(3,905
)
(5) 
 
(2,408
)
(5) 
 
68

(5) 
Investment (losses) gains, net
(1
)
 
 
24

 
 
3,071

 
 
(477
)
 
 
(1,761
)
(6) 
 
856

 
Fair value (losses) gains, net
(4
)
 
 
—

 
 
585

 
 
5

 
 
101

(7) 
 
687

 
Debt extinguishment (losses) gains, net
—

 
 
—

 
 
(5
)
 
 
16

 
 
—

 
 
11

 
(Losses) gains from partnership investments(8)
(15
)
 
 
255

 
 
—

 
 
—

 
 
—

 
 
240

 
Fee and other income (expense)
473

 
 
135

 
 
205

 
 
(169
)
 
 
152

 
 
796

 
Administrative expenses
(942
)
 
 
(171
)
 
 
(299
)
 
 
—

 
 
—

 
 
(1,412
)
 
Foreclosed property (expense) income
(667
)
 
 
12

 
 
—

 
 
—

 
 
—

 
 
(655
)
 
TCCA fees(4)
(779
)
 
 
—

 
 
—

 
 
—

 
 
—

 
 
(779
)
 
Other expenses
(489
)
 
 
(13
)
 
 
(6
)
 
 
—

 
 
60

 
 
(448
)
 
Income before federal income taxes
3,157

 
 
960

 
 
6,218

 
 
2,608

 
 
(3,335
)
 
 
9,608

 
Provision for federal income taxes
(1,000
)
 
 
(111
)
 
 
(1,969
)
 
 
—

 
 
—

 
 
(3,080
)
 
Net income attributable to Fannie Mae
$
2,157

 
 
$
849

 
 
$
4,249

 
 
$
2,608

 
 
$
(3,335
)
 
 
$
6,528

 
 
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

 
 
1,625

 
 
(104
)
 
 
(1,076
)
(6) 
 
483

 
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
)
 
 
(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

 
 
2,910

 
 
(162
)
 
 
(2,211
)
(6) 
 
578

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

 
 
$
706

 
 
$
5,384

 
 
$
2,448

 
 
$
(4,350
)
 
 
$
8,991

 
__________
(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.