Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

Recurring Changes in Fair Value [Table Text Block]

The following tables display our assets and liabilities measured in our 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 December 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		$	—		$	2,905		$	971		$	—			$	3,876
Other agency		—			1,083			35			—				1,118
Alt-A and subprime private-label securities		—			259			194			—				453
CMBS		—			9			—			—				9
Mortgage revenue bonds		—			—			1			—				1
Non-mortgage-related securities:
U.S. Treasury securities		29,222			—			—			—				29,222
Total trading securities		29,222			4,256			1,201			—				34,679
Available-for-sale securities:
Mortgage-related securities:
Fannie Mae		—			1,911			208			—				2,119
Other agency		—			357			—			—				357
Alt-A and subprime private-label securities		—			1,237			77			—				1,314
CMBS		—			15			—			—				15
Mortgage revenue bonds		—			—			671			—				671
Other		—			10			357			—				367
Total available-for-sale securities		—			3,530			1,313			—				4,843
Mortgage loans		—			9,480			1,116			—				10,596
Other assets:
Risk management derivatives:
Swaps		—			4,035			146			—				4,181
Swaptions		—			108			—			—				108
Other		—			—			22			—				22
Netting adjustment		—			—			—			(4,272		)		(4,272		)
Mortgage commitment derivatives		—			131			1			—				132
Total other assets		—			4,274			169			(4,272		)		171
Total assets at fair value		$	29,222		$	21,540		$	3,799		$	(4,272	)		$	50,289



	Fair Value Measurements as of December 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		$	—		$	7,810		$	376		$	—		$	8,186
Total of Fannie Mae		—			7,810			376			—			8,186
Of consolidated trusts		—			29,911			582			—			30,493
Total long-term debt		—			37,721			958			—			38,679
Other liabilities:
Risk management derivatives:
Swaps		—			4,721			33			—			4,754
Swaptions		—			324			—			—			324
Other		—			—			1			—			1
Netting adjustment		—			—			—			(4,979		)	(4,979		)
Mortgage commitment derivatives		—			227			1			—			228
Total other liabilities		—			5,272			35			(4,979		)	328
Total liabilities at fair value		$	—		$	42,993		$	993		$	(4,979	)	$	39,007



	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 both realized and unrealized gains and losses, recognized in our 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 Year Ended December 31, 2017
				Total Gains (Losses) (Realized/Unrealized)																												Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2017⁽⁵⁾⁽⁶⁾
	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⁽⁴⁾			Balance, December 31, 2017
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	835		$	41				$	—		$	64	$	—		$	—		$	(5	)	$	(991	)	$	1,027		$	971			$	6
Other agency	—			—					—			35		—			—			—			—			—			35				—
Alt-A and subprime private-label securities	271			15					—			—		(60		)	—			(32		)	—			—			194				5
Mortgage revenue bonds	21			3					—			—		(21		)	—			(2		)	—			—			1				—
Total trading securities	$	1,127		$	59		⁽⁶⁾⁽⁷⁾		$	—		$	99	$	(81	)	$	—		$	(39	)	$	(991	)	$	1,027		$	1,201			$	11

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	230		$	2				$	(1	)	$	—	$	—		$	—		$	(9	)	$	(72	)	$	58		$	208			$	—
Other agency	5			—					—			—		(1		)	—			—			(4		)	—			—				—
Alt-A and subprime private-label securities	217			54					(53		)	—		(105		)	—			(36		)	—			—			77				—
Mortgage revenue bonds	1,272			35					(11		)	—		(392		)	—			(233		)	—			—			671				—
Other	429			8					(11		)	—		(5		)	—			(64		)	—			—			357				—
Total available-for-sale securities	$	2,153		$	99		⁽⁷⁾⁽⁸⁾		$	(76	)	$	—	$	(503	)	$	—		$	(342	)	$	(76	)	$	58		$	1,313			$	—

Mortgage loans	$	1,197		$	45		⁽⁶⁾⁽⁷⁾		$	—		$	5	$	—		$	—		$	(233	)	$	(70	)	$	172		$	1,116			$	25
Net derivatives	44			111			⁽⁶⁾		—			—		—			—			(22		)	6			(5		)	134				13
Long-term debt:
Of Fannie Mae:
Senior floating	$	(347	)	$	(29	)	⁽⁶⁾		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(376	)		$	(29	)
Of consolidated trusts	(241		)	(9		)	⁽⁶⁾⁽⁷⁾		—			—		—			(2		)	66			388			(784		)	(582		)		(11		)
Total long-term debt	$	(588	)	$	(38	)			$	—		$	—	$	—		$	(2	)	$	66		$	388		$	(784	)	$	(958	)		$	(40	)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2016
				Total Gains (Losses) (Realized/Unrealized)																												Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2016⁽⁵⁾⁽⁶⁾
	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⁽⁴⁾			Balance, December 31, 2016
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	—	$	—		$	—		$	(1	)	$	(24	)	$	860		$	835			$	—
Other agency	—			—					—			—		—			—			—			(1		)	1			—				—
Alt-A and subprime private-label securities	949			(33		)			—			—		(231		)	—			(51		)	(363		)	—			271				(1		)
Mortgage revenue bonds	449			33					—			—		(448		)	—			(13		)	—			—			21				(2		)
Total trading securities	$	1,398		$	—		⁽⁶⁾⁽⁷⁾		$	—		$	—	$	(679	)	$	—		$	(65	)	$	(388	)	$	861		$	1,127			$	(3	)

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	—	$	—		$	—		$	—		$	(1	)	$	231		$	230			$	—
Other agency	4			—					—			—		—			—			—			(4		)	5			5				—
Alt-A and subprime private-label securities	4,322			184					(233		)	—		(997		)	—			(220		)	(2,839		)	—			217				—
Mortgage revenue bonds	2,701			132					(34		)	—		(1,129		)	—			(398		)	—			—			1,272				—
Other	1,404			—					(12		)	—		(605		)	—			(74		)	(284		)	—			429				—
Total available-for-sale securities	$	8,431		$	316		⁽⁷⁾⁽⁸⁾		$	(279	)	$	—	$	(2,731	)	$	—		$	(692	)	$	(3,128	)	$	236		$	2,153			$	—

Mortgage loans	$	1,477		$	129		⁽⁶⁾⁽⁷⁾		$	—		$	36	$	(392	)	$	—		$	(255	)	$	(77	)	$	279		$	1,197			$	17
Net derivatives	157			15			⁽⁶⁾		—			—		—			(8		)	(122		)	2			—			44				(132		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(369	)	$	22		⁽⁶⁾		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(347	)		$	22
Of consolidated trusts	(496		)	(75		)	⁽⁶⁾⁽⁷⁾		—			—		—			(74		)	378			215			(189		)	(241		)		(9		)
Total long-term debt	$	(865	)	$	(53	)			$	—		$	—	$	—		$	(74	)	$	378		$	215		$	(189	)	$	(588	)		$	13



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	For the Year Ended December 31, 2015
				Total Gains (Losses) (Realized/Unrealized)																												Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2015⁽⁵⁾⁽⁶⁾
	Balance, December 31, 2014			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⁽⁴⁾			Balance, December 31, 2015
	(Dollars in millions)
Trading securities:
Mortgage-related:
Fannie Mae	$	305		$	(27	)			$	—		$	—	$	(2	)	$	—		$	—		$	(278	)	$	2		$	—			$	—
Alt-A and subprime private-label securities	1,904			72					—			—		(878		)	—			(133		)	(44		)	28			949				25
Mortgage revenue bonds	722			(41		)			—			—		(220		)	—			(12		)	—			—			449				(33		)
Other	99			4					—			—		(100		)	—			(3		)	—			—			—				—
Total trading securities	$	3,030		$	8		⁽⁶⁾⁽⁷⁾		$	—		$	—	$	(1,200	)	$	—		$	(148	)	$	(322	)	$	30		$	1,398			$	(8	)

Available-for-sale securities:
Mortgage-related:
Fannie Mae	$	—		$	—				$	—		$	421	$	(425	)	$	—		$	(8	)	$	—		$	12		$	—			$	—
Other agency	6			—					—			—		—			—			(1		)	(2		)	1			4				—
Alt-A and subprime private-label securities	8,380			814					(555		)	—		(3,079		)	—			(1,037		)	(538		)	337			4,322				—
Mortgage revenue bonds	4,023			51					(104		)	—		(410		)	—			(859		)	—			—			2,701				—
Other	2,671			(26		)			(2		)	—		(1,012		)	—			(227		)	—			—			1,404				—
Total available-for-sale securities	$	15,080		$	839		⁽⁷⁾⁽⁸⁾		$	(661	)	$	421	$	(4,926	)	$	—		$	(2,132	)	$	(540	)	$	350		$	8,431			$	—

Mortgage loans	$	1,833		$	57		⁽⁶⁾⁽⁷⁾		$	—		$	5	$	—		$	—		$	(350	)	$	(377	)	$	309		$	1,477			$	(20	)
Net derivatives	45			(55		)	⁽⁶⁾		—			—		—			(4		)	169			(7		)	9			157				(2		)
Long-term debt:
Of Fannie Mae:
Senior floating	$	(363	)	$	(6	)	⁽⁶⁾		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	(369	)		$	(6	)
Of consolidated trusts	(527		)	(9		)	⁽⁶⁾⁽⁷⁾		—			—		—			(66		)	57			228			(179		)	(496		)		17
Total long-term debt	$	(890	)	$	(15	)			$	—		$	—	$	—		$	(66	)	$	57		$	228		$	(179	)	$	(865	)		$	11

__________


⁽¹⁾	Losses included in other comprehensive income are included in “Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes” in our 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 into and out of Level 3 consisted primarily of Fannie Mae securities backed by private-label mortgage-related securities. Prices for these securities are based on inputs that were not readily observable. Transfers out of Level 3 also occurred for 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 consolidated statements of operations and comprehensive income.


⁽⁷⁾	Gains (losses) are included in “Net interest income” in our consolidated statements of operations and comprehensive income.


⁽⁸⁾	Gains (losses) are included in “Investment gains, net” in our 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 December 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⁾	$	971	Single Vendor	Prepayment Speed (%)	0.0	-	177.0	160.0
				Spreads (bps)	51.5	-	375.0	200.1
	35		Various
Total agency	1,006
Alt-A and subprime private-label securities	154		Consensus
	40		Various
Total Alt-A and subprime private-label securities	194
Mortgage revenue bonds	1		Various
Total trading securities	$	1,201



	Fair Value Measurements as of December 31, 2017
	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⁾	$	112		Single Vendor	Prepayment Speed (%)	0.0		-	175.7	147.1
					Spreads (bps)	150.0		-	210.0	182.3
	96			Various
Total agency	208
Alt-A and subprime private-label securities	77			Various
Mortgage revenue bonds	475			Single Vendor	Spreads (bps)	(17.0	)	-	248.0	39.0
	196			Various
Total mortgage revenue bonds	671
Other	325			Discounted Cash Flow	Prepayment Speed (%)	1.6		-	2.5	2.5
					Severity (%)	50.0		-	88.0	86.6
					Spreads (bps)	84.8		-	607.0	577.9
	32			Various
Total other	357
Total available-for-sale securities	$	1,313
Mortgage loans:
Single-family	$	406		Build-Up
	344			Consensus
	208			Various
Total single-family	958
Multifamily	155			Build-Up	Spreads (bps)	29.0		-	267.2	105.8
	3			Various
Total multifamily	$	158
Total mortgage loans	$	1,116
Net derivatives	$	113		Dealer Mark
	21			Various
Total net derivatives	$	134
Long-term debt:
Of Fannie Mae:
Senior floating	$	(376	)	Discounted Cash Flow
Of consolidated trusts⁽³⁾	(401		)	Discounted Cash Flow	Default Rate (%)	1.6		-	6.3	4.6
					Prepayment Speed (%)	5.4		-	100.0	98.9
					Severity (%)	28.0		-	95.0	71.5
					Spreads (bps)	42.0		-	228.3	78.7
	(181		)	Various
Total of consolidated trusts	(582		)
Total long-term debt	$	(958	)



	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 (“PSA”) prepayment speed, which can be greater than 100%. For all other securities, the Conditional Prepayment Rate (“CPR”) is used as the prepayment speed, which can be between 0% and 100%.


⁽²⁾	Includes Fannie Mae and Freddie Mac securities.


⁽³⁾	Includes instruments for which the prepayment speed represents the estimated annualized rate of prepayment after all prepayment penalty provisions have expired and also instruments for which prepayment speed represents the estimated rate of prepayment over the remaining life of the instrument.

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 December 31,
	Valuation Techniques	2017		2016
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	1,113	$	1,025
	Single Vendor	1,880		54
	Various	—		9
Total mortgage loans held for sale, at lower of cost or fair value		2,993		1,088
Single-family mortgage loans held for investment, at amortized cost	Internal Model	1,623		2,816
Multifamily mortgage loans held for investment, at amortized cost	Broker Price Opinions	28		25
	Asset Manager Estimate	163		170
	Various	4		3
Total multifamily mortgage loans held for investment, at amortized cost		195		198
Acquired property, net:⁽¹⁾
Single-family	Accepted Offers	218		340
	Appraisals	438		571
	Walk Forwards	222		306
	Internal Model	319		476
	Various	113		99
Total single-family		1,310		1,792
Multifamily	Various	19		—
Other assets	Various	2		12
Total nonrecurring assets at fair value		$	6,142	$	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 December 31, 2017, these methodologies comprised approximately 77% of our valuations, while accepted offers comprised approximately 18% 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 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 December 31, 2017
	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	$	60,260	$	35,060	$	25,200	$	—	$	—		$	60,260
Federal funds sold and securities purchased under agreements to resell or similar arrangements	19,470		—		19,470		—		—			19,470
Trading securities	34,679		29,222		4,256		1,201		—			34,679
Available-for-sale securities	4,843		—		3,530		1,313		—			4,843
Mortgage loans held for sale	4,988		—		101		5,333		—			5,434
Mortgage loans held for investment, net of allowance for loan losses	3,173,537		—		2,886,470		315,719		—			3,202,189
Advances to lenders	4,938		—		4,936		2		—			4,938
Derivative assets at fair value	171		—		4,274		169		(4,272		)	171
Guaranty assets and buy-ups	149		—		—		436		—			436
Total financial assets	$	3,303,035	$	64,282	$	2,948,237	$	324,173	$	(4,272	)	$	3,332,420
Financial liabilities:
Short-term debt:
Of Fannie Mae	$	33,377	$	—	$	33,379	$	—	$	—		$	33,379
Of consolidated trusts	379		—		—		378		—			378
Long-term debt:
Of Fannie Mae	243,375		—		249,780		837		—			250,617
Of consolidated trusts	3,052,923		—		3,014,250		40,683		—			3,054,933
Derivative liabilities at fair value	328		—		5,272		35		(4,979		)	328
Guaranty obligations	258		—		—		456		—			456
Total financial liabilities	$	3,330,640	$	—	$	3,302,681	$	42,389	$	(4,979	)	$	3,340,091



	As of December 31, 2016
	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	$	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 December 31,
		2017									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		$	10,596		$	8,186		$	30,493		$	12,057		$	9,582		$	36,524
Unpaid principal balance		10,246			7,368			27,717			11,688			9,090			33,055

__________

⁽¹⁾

Includes nonaccrual loans with a fair value of $227 million and $200 million as of December 31, 2017 and 2016, respectively. The difference between unpaid principal balance and the fair value of these nonaccrual loans as of December 31, 2017 and 2016 is $46 million and $34 million, respectively. Includes loans that are 90 days or more past due with a fair value of $159 million and $152 million as of December 31, 2017 and 2016, respectively. The difference between unpaid principal balance and the fair value of these 90 or more days past due loans as of December 31, 2017 and 2016 is $34 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 consolidated statements of operations and comprehensive income.



	For the Year Ended December 31,
	2017									2016									2015
	Loans		Long-Term Debt				Total Gains (Losses)			Loans		Long-Term Debt				Total Gains (Losses)			Loans			Long-Term Debt			Total Gains (Losses)
	(Dollars in millions)
Changes in instrument-specific credit risk	$	67		$	(316	)	$	(249	)	$	23		$	(648	)	$	(625	)	$	86			$	39	$	125
Other changes in fair value	69			22			91			72			193			265			(191		)		146		(45		)
Fair value gains (losses), net	$	136		$	(294	)	$	(158	)	$	95		$	(455	)	$	(360	)	$	(105	)		$	185	$	80

- 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