Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

The following table displays our segment results.


	For the Three Months Ended June 30,
	2022						2021
	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)	$	6,573	$	1,235	$	7,808	$	7,323	$	963	$	8,286
Fee and other income(2)	60		21		81		80		23		103
Net revenues	6,633		1,256		7,889		7,403		986		8,389
Investment gains (losses), net(3)	(27)		(22)		(49)		658		(12)		646
Fair value gains (losses), net(4)	543		(14)		529		(386)		(60)		(446)
Administrative expenses	(671)		(124)		(795)		(619)		(127)		(746)
Credit-related income (expense):(5)
Benefit (provision) for credit losses	(206)		(12)		(218)		2,553		35		2,588
Foreclosed property income (expense)	(25)		(8)		(33)		(28)		(13)		(41)
Total credit-related income (expense)	(231)		(20)		(251)		2,525		22		2,547
TCCA fees(6)	(841)		—		(841)		(758)		—		(758)
Credit enhancement expense(7)	(270)		(62)		(332)		(219)		(55)		(274)
Change in expected credit enhancement recoveries(8)	(43)		(4)		(47)		(57)		13		(44)
Other income (expenses), net	(199)		(29)		(228)		(315)		35		(280)
Income before federal income taxes	4,894		981		5,875		8,232		802		9,034
Provision for federal income taxes	(1,008)		(214)		(1,222)		(1,725)		(157)		(1,882)
Net income	$	3,886	$	767	$	4,653	$	6,507	$	645	$	7,152


	For the Six Months Ended June 30,
	2022						2021
	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)	$	12,828	$	2,379	$	15,207	$	13,217	$	1,811	$	15,028
Fee and other income(2)	121		43		164		142		48		190
Net revenues	12,949		2,422		15,371		13,359		1,859		15,218
Investment gains (losses), net(3)	(93)		(58)		(151)		722		(31)		691
Fair value gains (losses), net(4)	1,070		(61)		1,009		354		(16)		338
Administrative expenses	(1,354)		(249)		(1,603)		(1,242)		(252)		(1,494)
Credit-related income (expense):(5)
Benefit (provision) for credit losses	(476)		18		(458)		3,215		138		3,353
Foreclosed property expense	9		(3)		6		(11)		(25)		(36)
Total credit-related income (expense)	(467)		15		(452)		3,204		113		3,317
TCCA fees(6)	(1,665)		—		(1,665)		(1,489)		—		(1,489)
Credit enhancement expense(7)	(480)		(130)		(610)		(445)		(113)		(558)
Change in expected credit enhancement recoveries(8)	26		(13)		13		(73)		(2)		(75)
Other income (expenses), net	(397)		(67)		(464)		(602)		3		(599)
Income before federal income taxes	9,589		1,859		11,448		13,788		1,561		15,349
Provision for federal income taxes	(1,994)		(393)		(2,387)		(2,887)		(317)		(3,204)
Net income	$	7,595	$	1,466	$	9,061	$	10,901	$	1,244	$	12,145

(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. Also includes yield maintenance revenue we recognized on the prepayment of multifamily loans.

(2)Single-family fee and other income primarily consists of compensation for engaging in structured transactions and providing other lender services. Multifamily fee and other income consists of fees associated with Multifamily business activities, including credit enhancements for tax-exempt multifamily housing revenue bonds.

(3)Single-family investment gains and losses primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains and losses primarily consist of gains and losses on resecuritization activity.

(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, fair value option debt, 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.

(7)Single-family credit enhancement expense consists of costs associated with our freestanding credit enhancements, which include primarily costs associated with our Credit Insurance Risk TransferTM (“CIRTTM”), Connecticut Avenue Securities® (“CAS”) and enterprise-paid mortgage insurance (“EPMI”) programs. Multifamily credit enhancement expense primarily consists of costs associated with our Multifamily CIRTTM (“MCIRTTM”) and Multifamily Connecticut Avenue SecuritiesTM (“MCASTM”) programs as well as amortization expense for certain lender risk-sharing programs. Excludes CAS transactions accounted for as debt instruments and credit risk transfer programs accounted for as derivative instruments.

(8)Consists of change in benefits recognized from our freestanding credit enhancements, primarily from our CAS and CIRT programs as well as certain lender risk-sharing arrangements, including our multifamily Delegated Underwriting and Servicing (“DUS®”) program.