Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017
	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		$	—		$	3,738		$	856		$	—			$	4,594
Other agency		—			2,053			—			—				2,053
Alt-A and subprime private-label securities		—			352			272			—				624
CMBS		—			238			—			—				238
Mortgage revenue bonds		—			—			20			—				20
Non-mortgage-related securities:
U.S. Treasury securities		30,155			—			—			—				30,155
Total trading securities		30,155			6,381			1,148			—				37,684
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			2,141			232			—				2,373
Other agency		—			470			—			—				470
Alt-A and subprime private-label securities		—			2,423			205			—				2,628
CMBS		—			617			—			—				617
Mortgage revenue bonds		—			—			1,185			—				1,185
Other		—			31			417			—				448
Total available-for-sale securities		—			5,682			2,039			—				7,721
Mortgage loans		—			10,534			1,149			—				11,683
Other assets:
Risk management derivatives:
Swaps		—			3,903			126			—				4,029
Swaptions		—			230			—			—				230
Other		—			—			27			—				27
Netting adjustment		—			—			—			(4,104		)		(4,104		)
Mortgage commitment derivatives		—			414			3			—				417
Total other assets		—			4,547			156			(4,104		)		599
Total assets at fair value		$	30,155		$	27,144		$	4,492		$	(4,104	)		$	57,687



	Fair Value Measurements as of March 31, 2017
	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		$	—		$	8,812		$	350		$	—			$	9,162
Total of Fannie Mae		—			8,812			350			—				9,162
Of consolidated trusts		—			36,158			214			—				36,372
Total long-term debt		—			44,970			564			—				45,534
Other liabilities:
Risk management derivatives:
Swaps		—			5,408			38			—				5,446
Swaptions		—			270			—			—				270
Other		—			—			1			—				1
Netting adjustment		—			—			—			(5,397		)		(5,397		)
Mortgage commitment derivatives		—			579			4			—				583
Total other liabilities		—			6,257			43			(5,397		)		903
Total liabilities at fair value		$	—		$	51,227		$	607		$	(5,397	)		$	46,437



	Fair Value Measurements as of December 31, 2016
	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		$	—		$	3,934		$	835		$	—			$	4,769
Other agency		—			2,058			—			—				2,058
Alt-A and subprime private-label securities		—			365			271			—				636
CMBS		—			761			—			—				761
Mortgage revenue bonds		—			—			21			—				21
Non-mortgage-related securities:
U.S. Treasury securities		32,317			—			—			—				32,317
Total trading securities		32,317			7,118			1,127			—				40,562
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			2,324			230			—				2,554
Other agency		—			542			5			—				547
Alt-A and subprime private-label securities		—			2,492			217			—				2,709
CMBS		—			819			—			—				819
Mortgage revenue bonds		—			—			1,272			—				1,272
Other		—			33			429			—				462
Total available-for-sale securities		—			6,210			2,153			—				8,363
Mortgage loans		—			10,860			1,197			—				12,057
Other assets:
Risk management derivatives:
Swaps		—			4,159			137			—				4,296
Swaptions		—			241			—			—				241
Other		—			—			33			—				33
Netting adjustment		—			—			—			(4,514		)		(4,514		)
Mortgage commitment derivatives		—			619			12			—				631
Total other assets		—			5,019			182			(4,514		)		687
Total assets at fair value		$	32,317		$	29,207		$	4,659		$	(4,514	)		$	61,669



	Fair Value Measurements as of December 31, 2016
	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		$	—		$	9,235		$	347		$	—			$	9,582
Total of Fannie Mae		—			9,235			347			—				9,582
Of consolidated trusts		—			36,283			241			—				36,524
Total long-term debt		—			45,518			588			—				46,106
Other liabilities:
Risk management derivatives:
Swaps		—			6,933			48			—				6,981
Swaptions		—			339			—			—				339
Other		—			—			2			—				2
Netting adjustment		—			—			—			(6,844		)		(6,844		)
Mortgage commitment derivatives		—			649			88			—				737
Total other liabilities		—			7,921			138			(6,844		)		1,215
Total liabilities at fair value		$	—		$	53,439		$	726		$	(6,844	)		$	47,321

__________


⁽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 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 March 31, 2017
																																Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2017⁽⁵⁾⁽⁶⁾
				Total Gains (Losses) (Realized/Unrealized)
	Balance, December 31, 2016			Included in Net Income				Included in Total Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3			Balance, March 31, 2017
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	835		$	3				$	—		$	—	$	—		$	—		$	(3	)	$	(1	)	$	22		$	856			$	3
Alt-A and subprime private-label securities	271			8					—			—		—			—			(7		)	—			—			272				8
Mortgage revenue bonds	21			—					—			—		—			—			(1		)	—			—			20				—
Total trading securities	$	1,127		$	11		⁽⁶⁾⁽⁷⁾		$	—		$	—	$	—		$	—		$	(11	)	$	(1	)	$	22		$	1,148			$	11
Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	230		$	1				$	1		$	—	$	—		$	—		$	(4	)	$	(26	)	$	30		$	232			$	—
Other agency	5			—					—			—		(1		)	—			—			(4		)	—			—				—
Alt-A and subprime private-label securities	217			—					6			—		—			—			(18		)	—			—			205				—
Mortgage revenue bonds	1,272			1					(1		)	—		(12		)	—			(75		)	—			—			1,185				—
Other	429			—					5			—		—			—			(17		)	—			—			417				—
Total available-for-sale securities	$	2,153		$	2		⁽⁷⁾⁽⁸⁾		$	11		$	—	$	(13	)	$	—		$	(114	)	$	(30	)	$	30		$	2,039			$	—
Mortgage loans	$	1,197		$	8		⁽⁶⁾⁽⁷⁾		$	—		$	—	$	—		$	—		$	(62	)	$	(46	)	$	52		$	1,149			$	(1	)
Net derivatives	44			73			⁽⁶⁾		—			—		—			—			(8		)	5			(1		)	113				(9		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(347	)	$	(3	)			$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(350	)		$	(3	)
Of consolidated trusts	(241		)	1					—			—		—			(2		)	7			66			(45		)	(214		)		1
Total long-term debt	$	(588	)	$	(2	)	⁽⁶⁾		$	—		$	—	$	—		$	(2	)	$	7		$	66		$	(45	)	$	(564	)		$	(2	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Three Months Ended March 31, 2016
																																Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2016⁽⁵⁾⁽⁶⁾
				Total Gains (Losses) (Realized/Unrealized)
	Balance, December 31, 2015			Included in Net Income				Included in Total Other Comprehensive Income (Loss)⁽¹⁾				Purchases⁽²⁾		Sales⁽²⁾			Issues⁽³⁾			Settlements⁽³⁾			Transfers out of Level 3⁽⁴⁾			Transfers into Level 3			Balance, March 31, 2016
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	—	$	—		$	—		$	—		$	—		$	25		$	25			$	—
Other agency	—			—					—			—		—			—			—			—			1			1				—
Alt-A and subprime private-label securities	949			(91		)			—			—		(187		)	—			(20		)	(363		)	—			288				(67		)
Mortgage revenue bonds	449			12					—			—		(95		)	—			(3		)	—			—			363				10
Total trading securities	$	1,398		$	(79	)	⁽⁶⁾⁽⁷⁾		$	—		$	—	$	(282	)	$	—		$	(23	)	$	(363	)	$	26		$	677			$	(57	)
Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	—	$	—		$	—		$	—		$	—		$	1		$	1			$	—
Other agency	4			—					—			—		—			—			—			(2		)	—			2				—
Alt-A and subprime private-label securities	4,322			103					(168		)	—		(875		)	—			(144		)	(2,839		)	—			399				—
Mortgage revenue bonds	2,701			4					30			—		(43		)	—			(128		)	—			—			2,564				—
Other	1,404			(3		)			(25		)	—		(404		)	—			(33		)	(284		)	—			655				—
Total available-for-sale securities	$	8,431		$	104		⁽⁷⁾⁽⁸⁾		$	(163	)	$	—	$	(1,322	)	$	—		$	(305	)	$	(3,125	)	$	1		$	3,621			$	—
Mortgage loans	$	1,477		$	101		⁽⁶⁾⁽⁷⁾		$	—		$	—	$	(320	)	$	—		$	(72	)	$	(65	)	$	190		$	1,311			$	13
Net derivatives	157			180			⁽⁶⁾		—			—		—			(4		)	(100		)	(2		)	—			231				66
Long-term debt:
Of Fannie Mae:
Senior floating	$	(369	)	$	(26	)			$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(395	)		$	(26	)
Of consolidated trusts	(496		)	(68		)			—			—		—			(7		)	309			37			(21		)	(246		)		(2		)
Total long-term debt.	$	(865	)	$	(94	)	⁽⁶⁾		$	—		$	—	$	—		$	(7	)	$	309		$	37		$	(21	)	$	(641	)		$	(28	)

__________


⁽¹⁾	Gains (losses) included in other comprehensive income (loss) are included in “Changes in unrealized gains on AFS securities, net of reclassification adjustments and taxes” in our 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⁾	During the first quarter of 2016, transfers out of Level 3 consisted primarily of private-label mortgage-related securities backed by Alt-A loans and subprime loans. Prices for these securities were available from multiple third-party vendors and demonstrated an increased and sustained level of observability over time.


⁽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 (losses), 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 March 31, 2017
	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⁾	$	856	Single Vendor
Alt-A and subprime private-label securities	174		Single Vendor	Default Rate (%)	8.7			8.7
				Prepayment Speed (%)	5.6			5.6
				Severity (%)	95.0			95.0
				Spreads (bps)	230.4			230.4
	98		Various
Total Alt-A and subprime private-label securities	272
Mortgage revenue bonds	20		Various
Total trading securities	$	1,148
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	$	232	Various
Alt-A and subprime private-label securities	104		Consensus
	101		Various
Total Alt-A and subprime private-label securities	205
Mortgage revenue bonds	676		Single Vendor	Spreads (bps)	21.5	-	383.1	75.5
	429		Discounted Cash Flow	Spreads (bps)	21.5	-	412.7	278.3
	80		Various
Total mortgage revenue bonds	1,185
Other	340		Discounted Cash Flow	Default Rate (%)	0.5			0.5
				Prepayment Speed (%)	0.5			0.5
				Severity (%)	95.0			95.0
				Spreads (bps)	175.0	-	438.1	436.2
	77		Various
Total other	417
Total available-for-sale securities	$	2,039



	Fair Value Measurements as of March 31, 2017
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans:
Single-family	$	546		Build-Up
	385			Consensus
	56			Various
Total single-family	987
Multifamily	162			Build-Up	Spreads (bps)	45.0	-	282.2	126.7
Total mortgage loans	$	1,149
Net derivatives	$	113		Various
Long-term debt:
Of Fannie Mae:
Senior floating	$	(350	)	Discounted Cash Flow
Of consolidated trusts	(120		)	Consensus
	(94		)	Various
Total of consolidated trusts	(214		)
Total long-term debt	$	(564	)



	Fair Value Measurements as of December 31, 2016
	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⁾	$	809	Consensus
	26		Various
Total agency	835
Alt-A and subprime private-label securities	232		Consensus	Default Rate (%)	0.4		-	10.9	8.2
				Prepayment Speed (%)	4.3		-	7.4	6.6
				Severity (%)	71.0		-	95.0	88.9
				Spreads (bps)	244.6		-	253.9	251.5
	39		Consensus
Total Alt-A and subprime private-label securities	271
Mortgage revenue bonds	19		Discounted Cash Flow	Spreads (bps)	13.0		-	268.2	252.2
	2		Various
Total mortgage revenue bonds	21
Total trading securities	$	1,127
Available-for-sale securities:
Mortgage-related securities:
Agency⁽²⁾	$	129	Single Vendor	Prepayment Speed (%)	124.8		-	165.5	142.4
				Spreads (bps)	175.0		-	210.0	182.5
	72		Consensus
	34		Various
Total agency	235
Alt-A and subprime private-label securities	93		Single Vendor	Default Rate (%)	2.5		-	8.0	3.8
				Prepayment Speed (%)	3.0		-	11.0	4.9
				Severity (%)	38.0		-	80.0	48.1
				Spreads (bps)	266.1		-	306.8	297.1
	45		Discounted Cash Flow	Spreads (bps)	361.0		-	450.0	406.0
	79		Various
Total Alt-A and subprime private-label securities	217
Mortgage revenue bonds	684		Single Vendor	Spreads (bps)	(16.8	)	-	336.9	44.3
	126		Single Vendor
	435		Discounted Cash Flow	Spreads (bps)	(16.8	)	-	391.1	260.0
	27		Various
Total mortgage revenue bonds	1,272
Other	47		Consensus	Default Rate (%)	0.5		-	3.5	3.5
				Prepayment Speed (%)	2.5		-	6.0	2.5
				Severity (%)	20.0		-	88.0	87.5
				Spreads (bps)	221.6		-	300.2	237.7
	348		Discounted Cash Flow	Default Rate (%)	2.3				2.3
				Prepayment Speed (%)	0.5				0.5
				Severity (%)	95.0				95.0
				Spreads (bps)	190.0		-	450.0	449.1
	34		Various
Total other	429
Total available-for-sale securities	$	2,153



	Fair Value Measurements as of December 31, 2016
	Fair Value			Significant Valuation Techniques	Significant Unobservable Inputs⁽¹⁾	Range⁽¹⁾			Weighted - Average⁽¹⁾
	(Dollars in millions)
Mortgage loans:
Single-family	$	516		Build-Up
	300			Consensus
	218			Various
Total single-family	1,034
Multifamily	163			Build-Up	Spreads (bps)	55.0	-	305.2	140.2
Total mortgage loans	$	1,197
Net derivatives	$	10		Internal Model
	89			Dealer Mark
	21			Discounted Cash Flow
	(76		)	Various
Total net derivatives	$	44
Long-term debt:
Of Fannie Mae:
Senior floating	$	(347	)	Discounted Cash Flow
Of consolidated trusts	(241		)	Various
Total long-term debt	$	(588	)

_________

⁽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. The prepayment speed used for available-for-sale agency securities is the Public Securities Association prepayment speed, which can be greater than 100%. For all other securities, the Conditional Prepayment Rate is used as the prepayment speed, which can be between 0% and 100%.


⁽²⁾	Includes Fannie Mae and Freddie Mac securities.

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

The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis. 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 as of
	Valuation Techniques	March 31, 2017			December 31, 2016
			(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus		$	2,468		$	1,025
	Single Vendor		84			54
	Various		3			9
Total mortgage loans held for sale, at lower of cost or fair value			2,555			1,088
Single-family mortgage loans held for investment, at amortized cost	Internal Model		1,907			2,816
Multifamily mortgage loans held for investment, at amortized cost	Broker Price Opinions		—			25
	Asset Manager Estimate		94			170
	Various		4			3
Total multifamily mortgage loans held for investment, at amortized cost			98			198
Acquired property, net:⁽¹⁾
Single-family	Accepted Offers		300			340
	Appraisals		511			571
	Walk Forwards		208			306
	Internal Model		322			476
	Various		62			99
Total single-family			1,403			1,792
Multifamily	Broker Price Opinions		18			—
Other assets	Various		2			12
Total nonrecurring assets at fair value			$	5,983		$	5,906

__________

⁽¹⁾

The most commonly used techniques in our valuation of acquired property are proprietary home price model and third-party valuations (both current and walk forward). Based on the number of properties measured as of March 31, 2017, these methodologies comprised approximately 72% of our valuations, while accepted offers comprised approximately 22% of our valuations. Based on the number of properties measured as of December 31, 2016, these methodologies comprised approximately 75% of our valuations, while accepted offers comprised approximately 19% of our valuations.

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 all non-financial instruments; therefore, 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, 2017
	Carrying Value		Quoted Prices 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	$	52,309	$	32,209	$	20,100	$	—	$	—		$	52,309
Federal funds sold and securities purchased under agreements to resell or similar arrangements	35,260		—		35,260		—		—			35,260
Trading securities	37,684		30,155		6,381		1,148		—			37,684
Available-for-sale securities	7,721		—		5,682		2,039		—			7,721
Mortgage loans held for sale	5,024		—		1,388		4,155		—			5,543
Mortgage loans held for investment, net of allowance for loan losses	3,104,478		—		2,803,139		312,761		—			3,115,900
Advances to lenders	4,344		—		4,023		337		—			4,360
Derivative assets at fair value	599		—		4,547		156		(4,104		)	599
Guaranty assets and buy-ups	151		—		—		429		—			429
Total financial assets	$	3,247,570	$	62,364	$	2,880,520	$	321,025	$	(4,104	)	$	3,259,805
Financial liabilities:
Federal funds purchased and securities sold under agreements to repurchase	$	185	$	—	$	185	$	—	$	—		$	185
Short-term debt:
Of Fannie Mae	37,452		—		37,449		—		—			37,449
Of consolidated trusts	557		—		—		557		—			557
Long-term debt:
Of Fannie Mae	289,731		—		296,836		785		—			297,621
Of consolidated trusts	2,953,914		—		2,916,788		37,409		—			2,954,197
Derivative liabilities at fair value	903		—		6,257		43		(5,397		)	903
Guaranty obligations	271		—		—		565		—			565
Total financial liabilities	$	3,283,013	$	—	$	3,257,515	$	39,359	$	(5,397	)	$	3,291,477



	As of December 31, 2016
	Carrying Value		Quoted Prices 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	$	62,177	$	41,477	$	20,700	$	—	$	—		$	62,177
Federal funds sold and securities purchased under agreements to resell or similar arrangements	30,415		—		30,415		—		—			30,415
Trading securities	40,562		32,317		7,118		1,127		—			40,562
Available-for-sale securities	8,363		—		6,210		2,153		—			8,363
Mortgage loans held for sale	2,899		—		509		2,751		—			3,260
Mortgage loans held for investment, net of allowance for loan losses	3,076,854		—		2,767,813		316,742		—			3,084,555
Advances to lenders	7,494		—		7,156		352		—			7,508
Derivative assets at fair value	687		—		5,019		182		(4,514		)	687
Guaranty assets and buy-ups	158		—		—		432		—			432
Total financial assets	$	3,229,609	$	73,794	$	2,844,940	$	323,739	$	(4,514	)	$	3,237,959
Financial liabilities:
Short-term debt:
Of Fannie Mae	$	34,995	$	—	$	34,998	$	—	$	—		$	34,998
Of consolidated trusts	584		—		—		584		—			584
Long-term debt:
Of Fannie Mae	292,102		—		298,980		770		—			299,750
Of consolidated trusts	2,934,635		—		2,901,316		36,668		—			2,937,984
Derivative liabilities at fair value	1,215		—		7,921		138		(6,844		)	1,215
Guaranty obligations	280		—		—		710		—			710
Total financial liabilities	$	3,263,811	$	—	$	3,243,215	$	38,870	$	(6,844	)	$	3,275,241

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, 2017									December 31, 2016
	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		$	11,683		$	9,162		$	36,372		$	12,057		$	9,582		$	36,524
Unpaid principal balance		11,313			8,504			32,927			11,688			9,090			33,055

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $196 million and $200 million as of March 31, 2017 and December 31, 2016, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of March 31, 2017 and December 31, 2016 was $36 million and $34 million, respectively. Includes loans that are 90 days or more past due with a fair value of $148 million and $152 million as of March 31, 2017 and December 31, 2016, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of March 31, 2017 and December 31, 2016 was $27 million and $25 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,
	2017								2016
	Loans		Long-Term Debt			Total Gains (Losses)			Loans		Long-Term Debt			Total Gains (Losses)
	(Dollars in millions)
Changes in instrument-specific credit risk	$	27	$	(166	)	$	(139	)	$	13	$	(52	)	$	(39	)
Other changes in fair value	15		(3		)	12			218		(302		)	(84		)
Fair value gains (losses), net	$	42	$	(169	)	$	(127	)	$	231	$	(354	)	$	(123	)

- 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