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Segment Reporting
 6 Months Ended
Jun. 30, 2023
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 condensed consolidated results of operations. For additional information related to our business segments, including basis of organization and other segment activities, see “Note 10, Segment Reporting” in our 2022 Form 10-K.
Segment Allocations and Results
The majority of our revenues and expenses are directly associated with each respective business segment and are included in determining its operating results. Those 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 tables display our segment results.

For the Three Months Ended June 30,
20232022
Single-FamilyMultifamilyTotalSingle-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)
$5,917 $1,118 $7,035 $6,573 $1,235 $7,808 
Fee and other income(2)
52 18 70 60 21 81 
Net revenues5,969 1,136 7,105 6,633 1,256 7,889 
Investment gains (losses), net(3)
27 (2)25 (27)(22)(49)
Fair value gains (losses), net(4)
460 (56)404 543 (14)529 
Administrative expenses(718)(146)(864)(671)(124)(795)
Benefit (provision) for credit losses(5)
1,418 (152)1,266 (206)(12)(218)
TCCA fees(6)
(856)— (856)(841)— (841)
Credit enhancement expense(7)
(327)(57)(384)(270)(62)(332)
Change in expected credit enhancement recoveries(8)
(223)63 (160)(43)(4)(47)
Other expenses, net(203)(54)(257)(224)(37)(261)
Income before federal income taxes5,547 732 6,279 4,894 981 5,875 
Provision for federal income taxes(1,153)(132)(1,285)(1,008)(214)(1,222)
Net income
$4,394 $600 $4,994 $3,886 $767 $4,653 
For the Six Months Ended June 30,
20232022
Single-FamilyMultifamilyTotalSingle-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)
$11,589 $2,232 $13,821 $12,828 $2,379 $15,207 
Fee and other income(2)
100 33 133 121 43 164 
Net revenues11,689 2,265 13,954 12,949 2,422 15,371 
Investment gains (losses), net(3)
(44)2 (42)(93)(58)(151)
Fair value gains (losses), net(4)
626 (18)608 1,070 (61)1,009 
Administrative expenses(1,438)(294)(1,732)(1,354)(249)(1,603)
Benefit (provision) for credit losses(5)
1,465 (331)1,134 (476)18 (458)
TCCA fees(6)
(1,711)— (1,711)(1,665)— (1,665)
Credit enhancement expense(7)
(614)(111)(725)(480)(130)(610)
Change in expected credit enhancement recoveries(8)
(128)88 (40)26 (13)13 
Other expenses, net(319)(68)(387)(388)(70)(458)
Income before federal income taxes9,526 1,533 11,059 9,589 1,859 11,448 
Provision for federal income taxes(2,000)(293)(2,293)(1,994)(393)(2,387)
Net income
$7,526 $1,240 $8,766 $7,595 $1,466 $9,061 
(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 our other investments 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 certain Multifamily business activities such as 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 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.