Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2024

The following table displays our segment results.






















	For the Three Months Ended March 31,
	2024						2023
	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
	(Dollars in millions)
Net interest income(1)	$	5,874	$	1,149	$	7,023	$	5,672	$	1,114	$	6,786
Fee and other income(2)	55		17		72		48		15		63
Net revenues	5,929		1,166		7,095		5,720		1,129		6,849
Investment gains (losses), net(3)	13		9		22		(71)		4		(67)
Fair value gains (losses), net(4)	484		(4)		480		166		38		204
Administrative expenses	(777)		(152)		(929)		(720)		(148)		(868)
Benefit (provision) for credit losses(5)	335		(155)		180		47		(179)		(132)
TCCA fees(6)	(860)		—		(860)		(855)		—		(855)
Credit enhancement expense(7)	(353)		(66)		(419)		(287)		(54)		(341)
Change in expected credit enhancement recoveries(8)	(42)		105		63		95		25		120
Other expenses, net(9)	(176)		(23)		(199)		(116)		(14)		(130)
Income before federal income taxes	4,553		880		5,433		3,979		801		4,780
Provision for federal income taxes	(946)		(167)		(1,113)		(847)		(161)		(1,008)
Net income	$	3,607	$	713	$	4,320	$	3,132	$	640	$	3,772

(1)Net interest income primarily consists of guaranty fees received as compensation for assuming 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 assets in our retained mortgage portfolio and our corporate liquidity 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 paid 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 paid 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 programs. Multifamily credit enhancement expense primarily consists of costs associated with our Multifamily CIRTTM (“MCIRTTM”) and Multifamily CAS (“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.

(9)Consists of debt extinguishment gains and losses, expenses associated with legal claims, foreclosed property income (expense), gains and losses from partnership investments, housing trust fund expenses, loan subservicing costs, and servicer fees paid in connection with certain loss mitigation activities.