Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

The following tables display our segment results.


	For the Three Months Ended September 30,
	2023						2022
	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)	$	6,074	$	1,146	$	7,220	$	5,918	$	1,206	$	7,124
Fee and other income(2)	56		20		76		83		22		105
Net revenues	6,130		1,166		7,296		6,001		1,228		7,229
Investment gains (losses), net(3)	9		(1)		8		(178)		6		(172)
Fair value gains (losses), net(4)	742		53		795		309		(17)		292
Administrative expenses	(745)		(152)		(897)		(730)		(140)		(870)
Benefit (provision) for credit losses(5)	736		(84)		652		(2,361)		(175)		(2,536)
TCCA fees(6)	(860)		—		(860)		(850)		—		(850)
Credit enhancement expense(7)	(335)		(55)		(390)		(298)		(66)		(364)
Change in expected credit enhancement recoveries(8)	(170)		42		(128)		245		45		290
Other expenses, net	(411)		(124)		(535)		(165)		11		(154)
Income before federal income taxes	5,096		845		5,941		1,973		892		2,865
Provision for federal income taxes	(1,071)		(171)		(1,242)		(276)		(153)		(429)
Net income	$	4,025	$	674	$	4,699	$	1,697	$	739	$	2,436


	For the Nine Months Ended September 30,
	2023						2022
	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)	$	17,663	$	3,378	$	21,041	$	18,746	$	3,585	$	22,331
Fee and other income(2)	156		53		209		204		65		269
Net revenues	17,819		3,431		21,250		18,950		3,650		22,600
Investment gains (losses), net(3)	(35)		1		(34)		(271)		(52)		(323)
Fair value gains (losses), net(4)	1,368		35		1,403		1,379		(78)		1,301
Administrative expenses	(2,183)		(446)		(2,629)		(2,084)		(389)		(2,473)
Benefit (provision) for credit losses(5)	2,201		(415)		1,786		(2,837)		(157)		(2,994)
TCCA fees(6)	(2,571)		—		(2,571)		(2,515)		—		(2,515)
Credit enhancement expense(7)	(949)		(166)		(1,115)		(778)		(196)		(974)
Change in expected credit enhancement recoveries(8)	(298)		130		(168)		271		32		303
Other expenses, net	(730)		(192)		(922)		(553)		(59)		(612)
Income before federal income taxes	14,622		2,378		17,000		11,562		2,751		14,313
Provision for federal income taxes	(3,071)		(464)		(3,535)		(2,270)		(546)		(2,816)
Net income	$	11,551	$	1,914	$	13,465	$	9,292	$	2,205	$	11,497

(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.