Fair Value (Tables)

9 Months Ended

Sep. 30, 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.



		Fair Value Measurements as of September 30, 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		$	—		$	5,097		$	—		$	—			$	5,097
Freddie Mac		—			1,474			—			—				1,474
Ginnie Mae		—			353			—			—				353
Alt-A private-label securities		—			136			315			—				451
Subprime private-label securities		—			—			696			—				696
CMBS		—			2,398			—			—				2,398
Mortgage revenue bonds		—			—			579			—				579
Non-mortgage-related securities:
U.S. Treasury securities		26,961			—			—			—				26,961
Total trading securities		26,961			9,458			1,590			—				38,009
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			4,282			—			—				4,282
Freddie Mac		—			4,595			4			—				4,599
Ginnie Mae		—			413			—			—				413
Alt-A private-label securities		—			1,855			1,494			—				3,349
Subprime private-label securities		—			—			3,677			—				3,677
CMBS		—			1,309			—			—				1,309
Mortgage revenue bonds		—			—			2,933			—				2,933
Other		—			1			1,444			—				1,445
Total available-for-sale securities		—			12,455			9,552			—				22,007
Mortgage loans		—			13,105			1,500			—				14,605
Other assets:
Risk management derivatives:
Swaps		—			5,417			158			—				5,575
Swaptions		—			39			4			—				43
Other		—			—			25			—				25
Netting adjustment		—			—			—			(4,417		)		(4,417		)
Mortgage commitment derivatives		—			374			10			—				384
Total other assets		—			5,830			197			(4,417		)		1,610
Total assets at fair value		$	26,961		$	40,848		$	12,839		$	(4,417	)		$	76,231



		Fair Value Measurements as of September 30, 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		$	—		$	9,606		$	369		$	—		$	9,975
Total of Fannie Mae		—			9,606			369			—			9,975
Of consolidated trusts		—			22,572			571			—			23,143
Total long-term debt		—			32,178			940			—			33,118
Other liabilities:
Risk management derivatives:
Swaps		—			10,531			133			—			10,664
Swaptions		—			307			—			—			307
Other		—			—			1			—			1
Netting adjustment		—			—			—			(10,635		)	(10,635		)
Mortgage commitment derivatives		—			564			3			—			567
Total other liabilities		—			11,402			137			(10,635		)	904
Total liabilities at fair value		$	—		$	43,580		$	1,077		$	(10,635	)	$	34,022



		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		—			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). 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. 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 September 30, 2015
				Total Gains or (Losses) (Realized/Unrealized)																												Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2015⁽⁵⁾⁽⁶⁾
	Balance, June 30, 2015			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, September 30, 2015
	(Dollars in millions)
Trading securities:
Mortgage-related:
Alt-A private-label securities	$	325		$	(3	)			$	—		$	—	$	—		$	—		$	(7	)	$	—		$	—		$	315			$	(3	)
Subprime private-label securities	718			(5		)			—			—		—			—			(17		)	—			—			696				(5		)
Mortgage revenue bonds	602			(19		)			—			—		—			—			(4		)	—			—			579				(19		)
Total trading securities	$	1,645		$	(27	)	(6)(7)		$	—		$	—	$	—		$	—		$	(28	)	$	—		$	—		$	1,590			$	(27	)

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	129		$	—				$	—		$	—	$	(122	)	$	—		$	(8	)	$	—		$	1		$	—			$	—
Freddie Mac	4			—					—			—		—			—			—			(1		)	1			4				—
Alt-A private-label securities	1,654			2					(8		)	—		—			—			(178		)	—			24			1,494				—
Subprime private-label securities	3,837			33					(45		)	—		—			—			(148		)	—			—			3,677				—
Mortgage revenue bonds	3,171			4					(29		)	—		(8		)	—			(205		)	—			—			2,933				—
Other	2,158			73					(95		)	—		(644		)	—			(48		)	—			—			1,444				—
Total available-for-sale securities	$	10,953		$	112		(7)(8)		$	(177	)	$	—	$	(774	)	$	—		$	(587	)	$	(1	)	$	26		$	9,552			$	—

Mortgage loans	$	1,595		$	9		(6)(7)		$	—		$	—	$	—		$	—		$	(97	)	$	(77	)	$	70		$	1,500			$	(24	)
Net derivatives	4			79			(6)		—			—		—			—			(32		)	—			9			60				28
Long-term debt:
Of Fannie Mae:
Senior floating	$	(346	)	$	(23	)			$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(369	)		$	(23	)
Of consolidated trusts	(493		)	—					—			—		—			(64		)	18			33			(65		)	(571		)		—
Total long-term debt	$	(839	)	$	(23	)	(6)		$	—		$	—	$	—		$	(64	)	$	18		$	33		$	(65	)	$	(940	)		$	(23	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Nine Months Ended September 30, 2015
				Total Gains or (Losses) (Realized/Unrealized)																												Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2015⁽⁵⁾⁽⁶⁾
	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, September 30, 2015
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	305		$	(27	)			$	—		$	—	$	(2	)	$	—		$	—		$	(278	)	$	2		$	—			$	—
Alt-A private-label securities	597			41					—			—		(267		)	—			(40		)	(44		)	28			315				(3		)
Subprime private-label securities	1,307			38					—			—		(580		)	—			(69		)	—			—			696				(2		)
Mortgage revenue bonds	722			(17		)			—			—		(118		)	—			(8		)	—			—			579				(17		)
Other	99			4					—			—		(100		)	—			(3		)	—			—			—				—
Total trading securities	$	3,030		$	39		(6)(7)		$	—		$	—	$	(1,067	)	$	—		$	(120	)	$	(322	)	$	30		$	1,590			$	(22	)

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	421	$	(425	)	$	—		$	(8	)	$	—		$	12		$	—			$	—
Freddie Mac	6			—					—			—		—			—			(1		)	(2		)	1			4				—
Alt-A private-label securities	3,140			174					(124		)	—		(1,108		)	—			(387		)	(538		)	337			1,494				—
Subprime private-label securities	5,240			478					(277		)	—		(1,325		)	—			(439		)	—			—			3,677				—
Mortgage revenue bonds	4,023			44					(56		)	—		(324		)	—			(754		)	—			—			2,933				—
Other	2,671			(20		)			(10		)	—		(1,012		)	—			(185		)	—			—			1,444				—
Total available-for-sale securities	$	15,080		$	676		(7)(8)		$	(467	)	$	421	$	(4,194	)	$	—		$	(1,774	)	$	(540	)	$	350		$	9,552			$	—

Mortgage loans	$	1,833		$	47		(6)(7)		$	—		$	5	$	—		$	—		$	(273	)	$	(331	)	$	219		$	1,500			$	(17	)
Net derivatives	45			(20		)	(6)		—			—		—			—			26			—			9			60				23
Long-term debt:
Of Fannie Mae:
Senior floating	$	(363	)	$	(6	)			$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(369	)		$	(6	)
Of consolidated trusts	(527		)	(8		)			—			—		—			(64		)	43			142			(157		)	(571		)		11
Total long-term debt	$	(890	)	$	(14	)	(6)		$	—		$	—	$	—		$	(64	)	$	43		$	142		$	(157	)	$	(940	)		$	5



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Three Months Ended September 30, 2014
				Total Gains or (Losses) (Realized/Unrealized)																										Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽⁵⁾⁽⁶⁾
	Balance, June 30, 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, September 30, 2014
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	—		$	—			$	—		$	—	$	—		$	—	$	—		$	—		$	325		$	325			$	—
Alt-A private-label securities	643			2				—			—		—			—		(21		)	(16		)	87			695				3
Subprime private-label securities	1,282			66				—			—		—			—		(32		)	—			—			1,316				66
Mortgage revenue bonds	643			53				—			—		—			—		(3		)	—			—			693				46
Other	101			1				—			—		—			—		(3		)	—			—			99				1
Total trading securities	$	2,669		$	122		(6)(7)	$	—		$	—	$	—		$	—	$	(59	)	$	(16	)	$	412		$	3,128			$	116

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	2		$	—			$	—		$	—	$	—		$	—	$	—		$	(2	)	$	—		$	—			$	—
Freddie Mac	9			—				—			—		—			—		(1		)	(2		)	—			6				—
Alt-A private-label securities	3,717			15				(60		)	—		—			—		(111		)	(333		)	268			3,496				—
Subprime private-label securities	5,705			87				89			—		(317		)	—		(178		)	—			—			5,386				—
Mortgage revenue bonds	4,560			(4		)		200			—		(12		)	—		(478		)	—			—			4,266				—
Other	2,817			11				(3		)	—		—			—		(82		)	—			—			2,743				—
Total available-for-sale securities	$	16,810		$	109		(7)(8)	$	226		$	—	$	(329	)	$	—	$	(850	)	$	(337	)	$	268		$	15,897			$	—

Mortgage loans	$	2,531		$	116		(6)(7)	$	—		$	3	$	—		$	—	$	(93	)	$	(750	)	$	64		$	1,871			$	(13	)
Net derivatives	20			(25		)	(6)	—			—		—			—		(9		)	—			5			(9		)	41	(9		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(325	)	$	(10	)		$	—		$	—	$	—		$	—	$	(1	)	$	—		$	—		$	(336	)		$	(11	)
Of consolidated trusts	(498		)	(14		)		—			—		—			—		16			34			(26		)	(488		)		(14		)
Total long-term debt	$	(823	)	$	(24	)	(6)	$	—		$	—	$	—		$	—	$	15		$	34		$	(26	)	$	(824	)		$	(25	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Nine Months Ended September 30, 2014
				Total Gains or (Losses) (Realized/Unrealized)																											Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽⁵⁾⁽⁶⁾
	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, September 30, 2014
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	42		$	(1	)		$	—		$	—	$	—		$	—		$	(2	)	$	(39	)	$	325		$	325			$	—
Freddie Mac	2			—				—			—		—			—			—			(2		)	—			—				—
Alt-A private-label securities	618			105				—			—		(23		)	—			(59		)	(159		)	213			695				100
Subprime private-label securities	1,448			245				—			—		(241		)	—			(136		)	—			—			1,316				209
Mortgage revenue bonds	565			137				—			—		—			—			(9		)	—			—			693				130
Other	99			10				—			—		—			—			(10		)	—			—			99				10
Total trading securities	$	2,774		$	496		(6)(7)	$	—		$	—	$	(264	)	$	—		$	(216	)	$	(200	)	$	538		$	3,128			$	449

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	7		$	—			$	—		$	—	$	—		$	—		$	(1	)	$	(8	)	$	2		$	—			$	—
Freddie Mac	8			—				—			—		—			—			(1		)	(2		)	1			6				—
Alt-A private-label securities	3,791			131				(11		)	—		(320		)	—			(310		)	(1,207		)	1,422			3,496				—
Subprime private-label securities	7,068			388				270			—		(1,666		)	—			(674		)	—			—			5,386				—
Mortgage revenue bonds	5,253			(31		)		480			—		(70		)	—			(1,366		)	—			—			4,266				—
Other	2,885			17				92			—		—			—			(251		)	—			—			2,743				—
Total available-for-sale securities	$	19,012		$	505		(7)(8)	$	831		$	—	$	(2,056	)	$	—		$	(2,603	)	$	(1,217	)	$	1,425		$	15,897			$	—

Mortgage loans	$	2,704		$	243		(6)(7)	$	—		$	34	$	—		$	—		$	(259	)	$	(1,063	)	$	212		$	1,871			$	49
Net derivatives	(40		)	52			(6)	—			—		—			—			(25		)	(1		)	5			(9		)		14
Long-term debt:
Of Fannie Mae:
Senior floating	$	(955	)	$	(115	)		$	—		$	—	$	—		$	(750	)	$	19		$	1,465		$	—		$	(336	)		$	(70	)
Of consolidated trusts	(518		)	(48		)		—			—		—			(1		)	51			100			(72		)	(488		)		(45		)
Total long-term debt	$	(1,473	)	$	(163	)	(6)	$	—		$	—	$	—		$	(751	)	$	70		$	1,565		$	(72	)	$	(824	)		$	(115	)

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⁽¹⁾	Gains (losses) included in other comprehensive income are included in “Changes in unrealized gains on AFS 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 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 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 “Fair value losses, net” in our condensed consolidated statements of operations and comprehensive income.


⁽⁷⁾	Gains (losses) are included in “Net interest income” 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 tables display 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.



	Fair Value Measurements as of September 30, 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:
Alt-A private-label securities⁽²⁾	$	64	Consensus	Default Rate (%)	1.6			1.6
				Prepayment Speed (%)	3.7			3.7
				Severity (%)	61.7			61.7
				Spreads (bps)	266.1			266.1
	251		Discounted Cash Flow	Default Rate (%)	1.5	-	3.0	2.7
				Prepayment Speed (%)	4.0			4.0
				Severity (%)	55.0	-	95.0	88.1
				Spreads (bps)	222.5	-	230.4	229.0
Total Alt-A private-label securities	315
Subprime private-label securities⁽²⁾	479		Consensus	Default Rate (%)	4.0	-	10.3	6.5
				Prepayment Speed (%)	1.0	-	4.6	2.3
				Severity (%)	41.8	-	95.0	75.5
				Spreads (bps)	275.0	-	280.0	275.4
	169		Discounted Cash Flow	Default Rate (%)	4.0	-	8.0	5.0
				Prepayment Speed (%)	2.0	-	3.3	2.4
				Severity (%)	60.0	-	78.0	65.2
				Spreads (bps)	203.0	-	300.0	225.7
	48		Other
Total subprime private-label securities	696
Mortgage revenue bonds	563		Discounted Cash Flow	Spreads (bps)	24.5	-	371.8	274.8
	16		Other
Total mortgage revenue bonds	579
Total trading securities	$	1,590



	Fair Value Measurements as of September 30, 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⁽³⁾	$	4	Other
Alt-A private-label securities⁽²⁾	598		Consensus	Default Rate (%)	0.4	-	12.2	4.3
				Prepayment Speed (%)	0.2	-	31.8	14.5
				Severity (%)	6.8	-	95.0	66.5
				Spreads (bps)	197.0	-	245.0	242.7
	545		Consensus
	313		Discounted Cash Flow	Default Rate (%)	4.0	-	7.0	4.5
				Prepayment Speed (%)	3.0	-	10.0	5.0
				Severity (%)	50.0	-	85.0	63.5
				Spreads (bps)	201.6	-	481.0	289.2
	38		Other
Total Alt-A private-label securities	1,494
Subprime private-label securities ⁽²⁾	2,365		Consensus	Default Rate (%)	0.5	-	19.3	7.7
				Prepayment Speed (%)	0.3	-	13.2	3.4
				Severity (%)	14.5	-	95.0	78.5
				Spreads (bps)	245.0	-	280.0	273.7
	774		Consensus
	265		Discounted Cash Flow	Default Rate (%)	5.6	-	12.0	7.8
				Prepayment Speed (%)	1.0	-	4.0	1.9
				Severity (%)	59.0	-	95.0	80.4
				Spreads (bps)	169.4	-	315.0	225.4
	273		Other
Total subprime private-label securities	3,677
Mortgage revenue bonds	1,126		Single Vendor	Spreads (bps)	7.0	-	347.9	62.8
	1,607		Discounted Cash Flow	Spreads (bps)	7.0	-	407.9	275.5
	200		Other
Total mortgage revenue bonds	2,933
Other	737		Consensus	Default Rate (%)	0.0	-	4.6	3.4
				Prepayment Speed (%)	2.5	-	17.4	4.5
				Severity (%)	3.1	-	95.0	67.1
				Spreads (bps)	195.0	-	466.3	334.1
	550		Discounted Cash Flow	Default Rate (%)	0.0	-	4.9	0.2
				Prepayment Speed (%)	0.0	-	2.0	0.1
				Severity (%)	25.0	-	95.0	90.6
				Spreads (bps)	245.0	-	350.0	330.3
	157		Other
Total other	1,444
Total available-for-sale securities	$	9,552



	Fair Value Measurements as of September 30, 2015
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans:
Single-family	$	107		Build-Up	Default Rate (%)	0.0	-	98.8	35.7
					Prepayment Speed (%)	3.0	-	100.0	10.4
					Severity (%)	0.0	-	100.0	38.5
	667			Build-Up
	236			Consensus
	258			Consensus	Default Rate (%)	0.0	-	7.6	3.3
					Prepayment Speed (%)	3.2	-	30.3	5.9
					Severity (%)	20.0	-	95.0	78.8
					Spreads (bps)	243.4	-	278.0	253.5
	71			Other
Total single-family	1,339
Multifamily	161			Build-Up	Spreads (bps)	61.0	-	334.2	161.1
Total mortgage loans	$	1,500
Net derivatives	$	(115	)	Internal Model
	162			Dealer Mark
	13			Other
Total net derivatives	$	60
Long-term debt:
Of Fannie Mae:
Senior floating	$	(369	)	Discounted Cash Flow
Of consolidated trusts⁽⁴⁾	(127		)	Consensus
	(194		)	Consensus	Default Rate (%)	0.0	-	4.0	3.1
					Prepayment Speed (%)	3.5	-	30.3	5.4
					Severity (%)	20.0	-	95.0	78.0
					Spreads (bps)	243.4	-	260.0	254.8
	(250		)	Other
Total of consolidated trusts	(571		)
Total long-term debt	$	(940	)



	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⁽³⁾⁽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⁽²⁾	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⁽²⁾	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⁽³⁾	$	6	Other
Alt-A private-label securities⁽²⁾	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⁽²⁾	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:
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	$	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⁾	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.


⁽³⁾	Includes Fannie Mae and Freddie Mac securities.


⁽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]

. 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	September 30, 2015			December 31, 2014
			(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus		$	2,251		$	110
	Single Vendor		431			—
	Other		2			—
Total mortgage loans held for sale, at lower of cost or fair value			2,684			110
Single-family mortgage loans held for investment, at amortized cost	Internal Model		8,585			16,654
	Other		—			60
Total single-family mortgage loans held for investment, at amortized cost			8,585			16,714
Multifamily mortgage loans held for investment, at amortized cost	Broker Price Opinions		90			45
	Asset Manager Estimate		289			580
	Other		7			—
Total multifamily mortgage loans held for investment, at amortized cost			386			625
Acquired property, net:
Single-family	Accepted Offers		620			864
	Appraisals		865			1,509
	Walk Forwards		637			1,173
	Internal Model		970			1,045
	Other		122			191
Total single-family			3,214			4,782
Multifamily	Broker Price Opinions		31			127
	Other		2			13
Total multifamily			33			140
Other assets	Other		27			45
Total nonrecurring assets at fair value			$	14,929		$	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. 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 September 30, 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	$	50,196	$	34,696	$	15,500	$	—	$	—		$	50,196
Federal funds sold and securities purchased under agreements to resell or similar arrangements	26,600		—		26,600		—		—			26,600
Trading securities	38,009		26,961		9,458		1,590		—			38,009
Available-for-sale securities	22,007		—		12,455		9,552		—			22,007
Mortgage loans held for sale	3,716		—		178		3,796					3,974
Mortgage loans held for investment, net of allowance for loan losses:
Of Fannie Mae	213,639		—		26,358		201,369		—			227,727
Of consolidated trusts	2,803,101		—		2,675,444		184,922		—			2,860,366
Mortgage loans held for investment	3,016,740		—		2,701,802		386,291		—			3,088,093
Advances to lenders	5,253		—		4,829		412		—			5,241
Derivative assets at fair value	1,610		—		5,830		197		(4,417		)	1,610
Guaranty assets and buy-ups	189		—		—		527		—			527
Total financial assets	$	3,164,320	$	61,657	$	2,776,652	$	402,365	$	(4,417	)	$	3,236,257

Financial liabilities:
Federal funds purchased and securities sold under agreements to repurchase	$	118	$	—	$	118	$	—	$	—		$	118
Short-term debt:
Of Fannie Mae	95,427		—		95,458		—		—			95,458
Of consolidated trusts	1,391		—		—		1,391		—			1,391
Long-term debt:
Of Fannie Mae	322,031		—		334,007		931		—			334,938
Of consolidated trusts	2,787,396		—		2,827,733		26,613		—			2,854,346
Derivative liabilities at fair value	904		—		11,402		137		(10,635		)	904
Guaranty obligations	338		—		—		1,342		—			1,342
Total financial liabilities	$	3,207,605	$	—	$	3,268,718	$	30,414	$	(10,635	)	$	3,288,497



	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
		September 30, 2015									December 31, 2014
	Loans⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts			Loans⁽¹⁾			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts
		(Dollars in millions)
Fair value		$	14,605		$	9,975		$	23,143		$	15,629		$	6,403		$	19,483
Unpaid principal balance		14,019			10,104			21,038			15,001			6,512			17,810

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $241 million and $240 million as of September 30, 2015 and December 31, 2014, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of September 30, 2015 and December 31, 2014 was $60 million and $75 million, respectively. Includes loans that are 90 days or more past due with a fair value of $269 million and $271 million as of September 30, 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 September 30, 2015 and December 31, 2014 was $52 million and $78 million, respectively.

The following tables display 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 September 30,
	2015											2014
	Loans			Long-Term Debt				Total Gains (Losses)				Loans			Long-Term Debt				Total Gains (Losses)
	(Dollars in millions)
Changes in instrument-specific credit risk	$	73			$	150			$	223		$	67			$	187			$	254
Other changes in fair value	(15		)		(81		)		(96		)	(33		)		(27		)		(60		)
Fair value gains, net	$	58			$	69			$	127		$	34			$	160			$	194



	For the Nine Months Ended September 30,
	2015											2014
	Loans			Long-Term Debt				Total Gains (Losses)				Loans		Long-Term Debt				Total Gains (Losses)
	(Dollars in millions)
Changes in instrument-specific credit risk	$	110			$	45			$	155		$	92		$	60			$	152
Other changes in fair value	(65		)		(42		)		(107		)	461			(364		)		97
Fair value gains (losses), net	$	45			$	3			$	48		$	553		$	(304	)		$	249

- 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.

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