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Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have two reportable business segments, which are based on the type of business activities each perform: 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 consolidated results of operations.
The section below provides a discussion of our business segments.
Single-Family Business Segment
•Works with lenders to acquire and securitize single-family mortgage loans delivered to us by lenders into Fannie Mae MBS.
•Issues structured Fannie Mae MBS backed by single-family mortgage assets and provides other services to single-family lenders.
•Prices and manages the credit risk on loans in our single-family guaranty book of business. Also enters into transactions that transfer a portion of the credit risk on some of the loans in our single-family guaranty book of business to third parties.
•Works to reduce costs of defaulted single-family loans through home retention solutions and foreclosure alternatives, management of foreclosures and our REO inventory, selling nonperforming loans and pursuing contractual remedies from lenders, servicers and providers of credit enhancements.
Multifamily Business Segment
•Works with lenders to acquire and securitize multifamily mortgage loans delivered to us by lenders into Fannie Mae MBS.
•Issues structured multifamily Fannie Mae MBS through our Fannie Mae Guaranteed Multifamily Structures (“Fannie Mae GeMSTM”) program and provides other services to our multifamily lenders.
•Prices and manages the credit risk on loans in our multifamily guaranty book of business. Lenders retain a portion of the credit risk in most multifamily transactions.
•Enters into transactions that transfer an additional portion of Fannie Mae’s credit risk on some of the loans in our multifamily guaranty book of business to third parties.
•Works to maintain credit quality of the book, prevent foreclosure, reduce costs of defaulted multifamily loans, manage our REO inventory, and pursue contractual remedies from lenders, servicers and providers of credit enhancements.
Segment Allocations and Results
The majority of our assets, revenues and expenses are directly associated with each respective business segment and are included in determining its asset balance and operating results. Those assets, revenues and 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, including the impact of hedge accounting, are allocated to our Single-Family business segment.
The following table displays total assets by segment.
As of December 31,
20222021
(Dollars in millions)
Single-Family$3,844,092 $3,782,447 
Multifamily461,196 446,719 
Total assets
$4,305,288 $4,229,166 
We operate our business solely in the United States and its territories, and accordingly, we generate no revenue from and have no long-lived assets, other than financial instruments, in geographic locations other than the United States and its territories.
The following tables display our segment results.
For the Year Ended December 31, 2022
Single-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)(9)
$24,736 $4,687 $29,423 
Fee and other income(2)
224 88 312 
Net revenues24,960 4,775 29,735 
Investment losses, net(3)
(223)(74)(297)
Fair value gains (losses), net(4)(9)
1,364 (80)1,284 
Administrative expenses(2,789)(540)(3,329)
Provision for credit losses(5)
(5,029)(1,248)(6,277)
TCCA fees(6)
(3,369)— (3,369)
Credit enhancement expense(7)
(1,062)(261)(1,323)
Change in expected credit enhancement recoveries(8)
470 257 727 
Other expenses, net(778)(140)(918)
Income before federal income taxes13,544 2,689 16,233 
Provision for federal income taxes(2,774)(536)(3,310)
Net income$10,770 $2,153 $12,923 
For the Year Ended December 31, 2021
Single-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)(9)
$25,429 $4,158 $29,587 
Fee and other income(2)
269 92 361 
Net revenues25,698 4,250 29,948 
Investment gains (losses), net(3)
1,392 (40)1,352 
Fair value gains (losses), net(4)(9)
167 (12)155 
Administrative expenses(2,557)(508)(3,065)
Benefit for credit losses(5)
4,600 530 5,130 
TCCA fees(6)
(3,071)— (3,071)
Credit enhancement expense(7)
(812)(239)(1,051)
Change in expected credit enhancement recoveries(8)
(86)(108)(194)
Other expenses, net(1,208)(47)(1,255)
Income before federal income taxes24,123 3,826 27,949 
Provision for federal income taxes(4,996)(777)(5,773)
Net income$19,127 $3,049 $22,176 
For the Year Ended December 31, 2020
Single-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)(9)
$21,502 $3,364 $24,866 
Fee and other income(2)
368 94 462 
Net revenues21,870 3,458 25,328 
Investment gains, net(3)
728 179 907 
Fair value gains (losses), net(4)(9)
(2,539)38 (2,501)
Administrative expenses(2,559)(509)(3,068)
Provision for credit losses(5)
(75)(603)(678)
TCCA fees(6)
(2,673)— (2,673)
Credit enhancement expense(7)
(1,141)(220)(1,361)
Change in expected credit enhancement recoveries(8)
89 144 233 
Other expenses, net(1,212)(96)(1,308)
Income before federal income taxes12,488 2,391 14,879 
Provision for federal income taxes(2,607)(467)(3,074)
Net income$9,881 $1,924 $11,805 
(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)Benefit (provision) for credit losses is based 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 CIRTTM, CAS and enterprise-paid mortgage insurance (“EPMI”) programs. Multifamily credit enhancement expense primarily consists of costs associated with our Multifamily CIRTTM (“MCIRTTM”) and 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 DUS® program.
(9)In January 2021, we began applying fair value hedge accounting. For qualifying hedging relationships, fair value changes attributable to movements in the designated benchmark interest rates for hedged mortgage loans and funding debt and the fair value change of the designated portion of the paired interest-rate swaps are recognized in “Net interest income.” In prior years, all fair value changes for interest-rate swaps were recognized in “Fair value gains (losses), net.” See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional information on our fair value hedge accounting policy and related disclosures.