Segment Reporting

12 Months Ended

Dec. 31, 2024

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. Ms. Almodovar, our President and CEO, is the chief operating decision maker (“CODM”) for our two

reportable business segments. The CODM uses both net revenues and income before federal income taxes, on a

quarterly basis, to assess the financial performance of the segments and for purposes of allocating resources. The

accounting policies of our two reportable business segments are the same as those described in “Note 1, Summary of

Significant Accounting Policies.”

The section below provides a discussion of our reportable 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, which includes

establishing underwriting and servicing standards. 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, including through forbearance plans, home retention

solutions, 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, which includes

establishing underwriting and servicing standards. Lenders retain a portion of the credit risk in most multifamily

transactions.

•Enters into additional transactions that transfer a portion of the credit risk on some of the loans in our

multifamily guaranty book of business to third parties.

•Works to reduce costs of defaulted multifamily loans, including through loss mitigation strategies such as

forbearance and modification, management of foreclosures and our REO inventory, and pursuing contractual

remedies from lenders, servicers, borrowers, sponsors, 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. As a result, the sum of each income statement line item for the two reportable segments is equal to that

same income statement line item for the consolidated entity. In addition, the sum of the total assets for the two

reportable segments is equal to the total assets of the consolidated entity.

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. In the current period, there were no

significant changes to our segment allocation methodology.

The following table displays total assets by segment.

	As of December 31,
	2024	2023
	(Dollars in millions)
Single-Family	$3,823,840	$3,833,540
Multifamily	525,891	491,897
Total assets	$4,349,731	$4,325,437

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, 2024
	Single-Family	Multifamily	Total
	(Dollars in millions)
Net interest income(1)	$24,130	$4,618	$28,748
Fee and other income(2)	245	76	321
Net revenues	24,375	4,694	29,069
Benefit (provision) for credit losses(3)	938	(752)	186
Fair value gains (losses), net(4)	1,745	76	1,821
Investment gains (losses), net(5)	(53)	15	(38)
Non-interest expense:
Administrative expenses(6)	(3,000)	(619)	(3,619)
Legislative assessments(7)	(3,719)	(47)	(3,766)
Credit enhancement expense(8)	(1,349)	(292)	(1,641)
Change in expected credit enhancement recoveries(9)	(134)	328	194
Other expenses, net(10)	(683)	(254)	(937)
Total non-interest expense	(8,885)	(884)	(9,769)
Income before federal income taxes	18,120	3,149	21,269
Provision for federal income taxes	(3,690)	(601)	(4,291)
Net income	$14,430	$2,548	$16,978

	For the Year Ended December 31, 2023
	Single-Family	Multifamily	Total
	(Dollars in millions)
Net interest income(1)	$24,229	$4,544	$28,773
Fee and other income(2)	205	70	275
Net revenues	24,434	4,614	29,048
Benefit (provision) for credit losses(3)	2,165	(495)	1,670
Fair value gains (losses), net(4)	1,231	73	1,304
Investment gains (losses), net(5)	(41)	(12)	(53)
Non-interest expense:
Administrative expenses(6)	(2,858)	(587)	(3,445)
Legislative assessments(7)	(3,699)	(46)	(3,745)
Credit enhancement expense(8)	(1,281)	(231)	(1,512)
Change in expected credit enhancement recoveries(9)	(310)	117	(193)
Other expenses, net(10)	(851)	(267)	(1,118)
Total non-interest expense	(8,999)	(1,014)	(10,013)
Income before federal income taxes	18,790	3,166	21,956
Provision for federal income taxes	(3,935)	(613)	(4,548)
Net income	$14,855	$2,553	$17,408

	For the Year Ended December 31, 2022
	Single-Family	Multifamily	Total
	(Dollars in millions)
Net interest income(1)	$24,736	$4,687	$29,423
Fee and other income(2)	224	88	312
Net revenues	24,960	4,775	29,735
Benefit (provision) for credit losses(3)	(5,029)	(1,248)	(6,277)
Fair value gains (losses), net(4)	1,364	(80)	1,284
Investment gains (losses), net(5)	(223)	(74)	(297)
Non-interest expense:
Administrative expenses(6)	(2,677)	(520)	(3,197)
Legislative assessments(7)	(3,739)	(49)	(3,788)
Credit enhancement expense(8)	(1,062)	(261)	(1,323)
Change in expected credit enhancement recoveries(9)	470	257	727
Other expenses, net(10)	(520)	(111)	(631)
Total non-interest expense	(7,528)	(684)	(8,212)
Income before federal income taxes	13,544	2,689	16,233
Provision for federal income taxes	(2,774)	(536)	(3,310)
Net income	$10,770	$2,153	$12,923

(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)Benefit (provision) for credit losses is based on loans underlying the segment’s guaranty book of business.

(4)Single-family fair value gains (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 (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)Single-family investment gains (losses) primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains

(losses) primarily consist of gains and losses on resecuritization activity.

(6)Consists of (1) salaries and employee benefits, and (2) professional services, technology and occupancy expenses.

(7)For single-family, consists of the portion of our single-family guaranty fees that is paid to Treasury pursuant to the TCCA, affordable

housing allocations and FHFA assessments. For multifamily, consists of the affordable housing allocations and FHFA assessments.

(8)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 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.

(9)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.

(10)Consists of debt extinguishment gains and losses, expenses associated with legal claims, foreclosed property income (expense), gains

and losses from partnership investments, loan subservicing costs, and servicer fees paid in connection with certain loss mitigation

activities.