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Segment Reporting
 3 Months Ended
Mar. 31, 2019
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.
Segment Allocations and Results
The majority of our revenues and expenses are directly associated with either our single-family or our multifamily business segment and are included in determining that segment’s operating results. Other revenues and expenses, including administrative expenses, that are not directly attributable to a particular business segment are allocated based on the size of each segment’s total book of business. The substantial majority of our gains and losses associated with our risk management derivatives are allocated to our single-family business segment.
The following table displays our segment results.
 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
 
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
 
(Dollars in millions)
Net interest income(1)
 
$
4,039

 
$
694

 
$
4,733

 
$
4,561

 
$
671

 
$
5,232

Fee and other income(2)
 
106

 
121

 
227

 
158

 
162

 
320

Net revenues
 
4,145

 
815

 
4,960

 
4,719

 
833

 
5,552

Investment gains, net(3)
 
94

 
39

 
133

 
242

 
8

 
250

Fair value gains (losses), net(4)
 
(887
)
 
56

 
(831
)
 
1,034

 
11

 
1,045

Administrative expenses
 
(631
)
 
(113
)
 
(744
)
 
(643
)
 
(107
)
 
(750
)
Credit-related income (expense)(5)
 
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
 
661

 
(11
)
 
650

 
196

 
21

 
217

Foreclosed property income (expense)
 
(143
)
 
3

 
(140
)
 
(162
)
 
—

 
(162
)
Total credit-related income (expense)
 
518

 
(8
)
 
510

 
34

 
21

 
55

TCCA fees(6)
 
(593
)
 
—

 
(593
)
 
(557
)
 
—

 
(557
)
Other expenses, net
 
(337
)
 
(71
)
 
(408
)
 
(132
)
 
(71
)
 
(203
)
Income before federal income taxes
 
2,309

 
718

 
3,027

 
4,697

 
695

 
5,392

Provision for federal income taxes
 
(484
)
 
(143
)
 
(627
)
 
(1,016
)
 
(115
)
 
(1,131
)
Net income
 
$
1,825

 
$
575

 
$
2,400

 
$
3,681

 
$
580

 
$
4,261


(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 income or 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.