XML 35 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Reporting
3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
We have two reportable business segments: Single-Family and Multifamily. Previously, we had a third reportable business segment, Capital Markets, which was incorporated into the Single-Family and Multifamily segments in the fourth quarter of 2016. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. We have revised the presentation of our segment results for the prior period to be consistent with the current period presentation.
 
 
For the Three Months Ended March 31,
 
 
2017
 
 
2016
 
 
Single-Family
 
Multifamily
 
Total
 
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Net interest income(1)
 
$
4,756

 
$
590

 
$
5,346

 
 
$
4,245

 
$
524

 
$
4,769

Fee and other income(2)
 
76

 
173

 
249

 
 
67

 
136

 
203

Net revenues
 
4,832

 
763

 
5,595

 
 
4,312

 
660

 
4,972

Investment gains (losses), net(3)
 
(50
)
 
41

 
(9
)
 
 
56

 
13

 
69

Fair value gains (losses), net(4)
 
(12
)
 
(28
)
 
(40
)
 
 
(2,850
)
 
37

 
(2,813
)
Administrative expenses
 
(601
)
 
(83
)
 
(684
)
 
 
(609
)
 
(79
)
 
(688
)
Credit-related income (expense):(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
 
400

 
(4
)
 
396

 
 
1,163

 
21

 
1,184

Foreclosed property income (expense)
 
(216
)
 
(1
)
 
(217
)
 
 
(335
)
 
1

 
(334
)
Total credit-related income (expense)
 
184

 
(5
)
 
179

 
 
828

 
22

 
850

TCCA fees(6)
 
(503
)
 

 
(503
)
 
 
(440
)
 

 
(440
)
Other expenses, net
 
(256
)
 
(126
)
 
(382
)
 
 
(246
)
 
(18
)
 
(264
)
Income before federal income taxes
 
3,594

 
562

 
4,156

 
 
1,051

 
635

 
1,686

Provision for federal income taxes
 
(1,252
)
 
(131
)
 
(1,383
)
 
 
(389
)
 
(161
)
 
(550
)
Net income
 
$
2,342

 
$
431

 
$
2,773

 
 
$
662

 
$
474

 
$
1,136

__________
(1) 
Net interest income primarily consists of guaranty fees received as compensation for assuming and managing the credit risk on loans underlying Fannie Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the respective business segment’s mortgage assets in our retained mortgage portfolio and the interest expense associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis point increase in guaranty fees we implemented in 2012 pursuant to TCCA.
(2) 
Single-Family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services, and income resulting from settlement agreements resolving certain claims relating to PLS sold to us or that we have guaranteed. Multifamily fee and other income consists of fees associated with multifamily business activities, including yield maintenance income.
(3) 
Investment gains and losses primarily consists of gains and losses on the sale of mortgage assets for the respective business segment.
(4) 
Single-Family fair value gains and losses primarily consist of fair value gains and losses on risk management and mortgage commitment derivatives, trading securities and other financial instruments associated with our single-family mortgage credit book of business. Multifamily fair value gains and losses primarily consist of fair value gains and losses on MBS commitment derivatives, trading securities and other financial instruments associated with our multifamily mortgage credit book of business.
(5) 
Credit-related income or expense is based on the guaranty book of business of the respective business segment and consists of the applicable segment’s benefit or provision for credit losses and foreclosed property expense on loans underlying the segment’s guaranty book of business.
(6) 
Consists of the portion of our single-family guaranty fees that is remitted to Treasury pursuant to the TCCA.