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Segment Reporting
 6 Months Ended
Jun. 30, 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 guaranty book of business. The substantial majority of the 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 June 30,
 
 
2019
 
2018
 
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
 
(Dollars in millions)
Net interest income(1)
 
$
4,419

 
$
731

 
$
5,150

 
$
4,723

 
$
654

 
$
5,377

Fee and other income(2)
 
88

 
158

 
246

 
69

 
170

 
239

Net revenues
 
4,507

 
889

 
5,396

 
4,792

 
824

 
5,616

Investment gains, net(3)
 
417

 
44

 
461

 
252

 
25

 
277

Fair value gains (losses), net(4)
 
(758
)
 
4

 
(754
)
 
278

 
(49
)
 
229

Administrative expenses
 
(634
)
 
(110
)
 
(744
)
 
(649
)
 
(106
)
 
(755
)
Credit-related income (expense)(5)
 
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
 
1,252

 
(27
)
 
1,225

 
1,295

 
1

 
1,296

Foreclosed property expense
 
(126
)
 
(2
)
 
(128
)
 
(136
)
 
(3
)
 
(139
)
Total credit-related income (expense)
 
1,126

 
(29
)
 
1,097

 
1,159

 
(2
)
 
1,157

TCCA fees(6)
 
(600
)
 
—

 
(600
)
 
(565
)
 
—

 
(565
)
Other expenses, net
 
(418
)
 
(117
)
 
(535
)
 
(270
)
 
(96
)
 
(366
)
Income before federal income taxes
 
3,640

 
681

 
4,321

 
4,997

 
596

 
5,593

Provision for federal income taxes
 
(769
)
 
(120
)
 
(889
)
 
(1,044
)
 
(92
)
 
(1,136
)
Net income
 
$
2,871

 
$
561

 
$
3,432

 
$
3,953

 
$
504

 
$
4,457

 
 
For the Six Months Ended June 30,
 
 
2019
 
2018
 
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
 
(Dollars in millions)
Net interest income(1)
 
$
8,458

 
$
1,425

 
$
9,883

 
$
9,284

 
$
1,325

 
$
10,609

Fee and other income(2)
 
194

 
279

 
473

 
227

 
332

 
559

Net revenues
 
8,652

 
1,704

 
10,356

 
9,511

 
1,657

 
11,168

Investment gains, net(3)
 
511

 
83

 
594

 
494

 
33

 
527

Fair value gains (losses), net(4)
 
(1,645
)
 
60

 
(1,585
)
 
1,312

 
(38
)
 
1,274

Administrative expenses
 
(1,265
)
 
(223
)
 
(1,488
)
 
(1,292
)
 
(213
)
 
(1,505
)
Credit-related income (expense)(5)
 
 
 
 
 
 
 
 
 
 
 
 
Benefit (provision) for credit losses
 
1,913

 
(38
)
 
1,875

 
1,491

 
22

 
1,513

Foreclosed property income (expense)
 
(269
)
 
1

 
(268
)
 
(298
)
 
(3
)
 
(301
)
Total credit-related income (expense)
 
1,644

 
(37
)
 
1,607

 
1,193

 
19

 
1,212

TCCA fees(6)
 
(1,193
)
 
—

 
(1,193
)
 
(1,122
)
 
—

 
(1,122
)
Other expenses, net
 
(755
)
 
(188
)
 
(943
)
 
(402
)
 
(167
)
 
(569
)
Income before federal income taxes
 
5,949

 
1,399

 
7,348

 
9,694

 
1,291

 
10,985

Provision for federal income taxes
 
(1,253
)
 
(263
)
 
(1,516
)
 
(2,060
)
 
(207
)
 
(2,267
)
Net income
 
$
4,696

 
$
1,136

 
$
5,832

 
$
7,634

 
$
1,084

 
$
8,718


(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 consist 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 guaranty 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 guaranty 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.