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Segment Reporting
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have two reportable business segments: Single-Family and Multifamily. Results of our two business segments are intended to reflect each segment as if it were a stand-alone business. The sum of the results for our two business segments equals our condensed consolidated results of operations.
The following tables display our segment results.
 
For the Three Months Ended September 30,
 
2018
 
2017
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Net interest income(1)
$
4,670

 
$
699

 
$
5,369

 
$
4,627

 
$
647

 
$
5,274

Fee and other income(2)
79

 
192

 
271

 
1,005

 
189

 
1,194

Net revenues
4,749

 
891

 
5,640

 
5,632

 
836

 
6,468

Investment gains, net(3)
146

 
20

 
166

 
286

 
27

 
313

Fair value gains (losses), net(4)
417

 
(31
)
 
386

 
(300
)
 
11

 
(289
)
Administrative expenses
(636
)
 
(104
)
 
(740
)
 
(580
)
 
(84
)
 
(664
)
Credit-related income (expense)(5)
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
732

 
(16
)
 
716

 
(137
)
 
(45
)
 
(182
)
Foreclosed property income (expense)
(150
)
 
(9
)
 
(159
)
 
(157
)
 
17

 
(140
)
Total credit-related income (expense)
582

 
(25
)
 
557

 
(294
)
 
(28
)
 
(322
)
TCCA fees(6)
(576
)
 
—

 
(576
)
 
(531
)
 
—

 
(531
)
Other expenses, net
(282
)
 
(95
)
 
(377
)
 
(320
)
 
(107
)
 
(427
)
Income before federal income taxes
4,400

 
656

 
5,056

 
3,893

 
655

 
4,548

Provision for federal income taxes
(938
)
 
(107
)
 
(1,045
)
 
(1,361
)
 
(164
)
 
(1,525
)
Net income
$
3,462

 
$
549

 
$
4,011

 
$
2,532

 
$
491

 
$
3,023

 
For the Nine Months Ended September 30,
 
2018
 
2017
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Net interest income(1)
$
13,954

 
$
2,024

 
$
15,978

 
$
13,749

 
$
1,873

 
$
15,622

Fee and other income(2)
306

 
524

 
830

 
1,192

 
604

 
1,796

Net revenues
14,260

 
2,548

 
16,808

 
14,941

 
2,477

 
17,418

Investment gains, net(3)
640

 
53

 
693

 
557

 
132

 
689

Fair value gains (losses), net(4)
1,729

 
(69
)
 
1,660

 
(997
)
 
(23
)
 
(1,020
)
Administrative expenses
(1,928
)
 
(317
)
 
(2,245
)
 
(1,781
)
 
(253
)
 
(2,034
)
Credit-related income (expense)(5)
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
2,223

 
6

 
2,229

 
1,518

 
(37
)
 
1,481

Foreclosed property income (expense)
(448
)
 
(12
)
 
(460
)
 
(405
)
 
14

 
(391
)
Total credit-related income (expense)
1,775

 
(6
)
 
1,769

 
1,113

 
(23
)
 
1,090

TCCA fees(6)
(1,698
)
 
—

 
(1,698
)
 
(1,552
)
 
—

 
(1,552
)
Other expenses, net
(684
)
 
(262
)
 
(946
)
 
(731
)
 
(369
)
 
(1,100
)
Income before federal income taxes
14,094

 
1,947

 
16,041

 
11,550

 
1,941

 
13,491

Provision for federal income taxes
(2,998
)
 
(314
)
 
(3,312
)
 
(4,014
)
 
(481
)
 
(4,495
)
Net income
$
11,096

 
$
1,633

 
$
12,729

 
$
7,536

 
$
1,460

 
$
8,996


__________
(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 pursuant to the TCCA, the incremental revenue from which is remitted to Treasury and not retained by us.
(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 private-label securities we purchased 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 total 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 total 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.