We are party to various types of legal actions and proceedings, including actions brought on behalf of various classes of

claimants. We also are subject to regulatory examinations, inquiries and investigations, and other information gathering

requests. In some of the matters, indeterminate amounts are sought. Modern pleading practice in the U.S. permits

considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to

specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to

invoke the jurisdiction of the trial court. This variability in pleadings, together with our and our counsel’s actual

experience in litigating or settling claims, leads us to conclude that the monetary relief that may be sought by plaintiffs

bears little relevance to the merits or disposition value of claims.

Legal actions and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with

assurance. Accordingly, the outcome of any given matter and the amount or range of potential loss at particular points in

time is frequently difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence

and the credibility and effectiveness of witness testimony, and how the court will apply the law. Disposition valuations

are also subject to the uncertainty of how opposing parties and their counsel may view the evidence and applicable law.

On a quarterly basis, we review relevant information about pending legal actions and proceedings for the purpose of

evaluating and revising our contingencies, accruals and disclosures. We establish an accrual only for matters when the

likelihood of a loss is probable and we can reasonably estimate the amount of such loss. We are often unable to

estimate the possible losses or ranges of losses, particularly for proceedings that are in their early stages of

development, where plaintiffs seek indeterminate or unspecified damages, where there may be novel or unsettled legal

questions relevant to the proceedings, or where settlement negotiations have not occurred or progressed. Given the

uncertainties involved in any action or proceeding, regardless of whether we have established an accrual, the ultimate

resolution of certain of these matters may be material to our operating results for a particular period, depending on,

among other factors, the size of the loss or liability imposed and the level of our net income or loss for that period.

In addition to the matters specifically described below, we are involved in a number of legal and regulatory proceedings

that arise in the ordinary course of business that we do not expect will have a material impact on our business or

A consolidated class action (“In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action

Litigations”) and a non-class action lawsuit, Fairholme Funds v. FHFA, filed by Fannie Mae and Freddie Mac

stockholders against us, FHFA as our conservator, and Freddie Mac were filed in the U.S. District Court for the District

of Columbia. The lawsuits challenge the August 2012 amendment to each company’s senior preferred stock purchase

Plaintiffs in these lawsuits allege that the net worth sweep dividend provisions of the senior preferred stock that were

implemented pursuant to the August 2012 amendments nullified certain of the stockholders’ rights and caused them

harm. Plaintiffs in the class action represent a class of Fannie Mae preferred stockholders and classes of Freddie Mac

common and preferred stockholders. The cases were tried before a jury at a trial that commenced on July 24, 2023. On

August 14, 2023, the jury returned a verdict for the plaintiffs and awarded damages of $299.4 million to Fannie Mae

preferred stockholders. On October 24, 2023, the court held that these stockholders were entitled to receive

prejudgment interest on the damage award. On March 20, 2024, the court entered final judgment and set the amount of

prejudgment interest owed by Fannie Mae at $199.7 million. On April 17, 2024, the defendants filed a motion for

judgment as a matter of law, which has been fully briefed and remains pending. The parties will have 30 days to appeal

following the court’s decision on the motion. Until the motion and any subsequent appeals are resolved and any final

judgment amount has been paid, post-judgment interest on the damages and prejudgment interest awards will accrue at

a rate of 5.01%, starting on March 20, 2024, to be computed daily and compounded annually. We recognized

$495 million in 2023 related to the jury verdict and estimated prejudgment interest through December 31, 2023 in “Other

expenses, net.” We recognized an additional $24 million of expense for the twelve months ended December 31, 2024

We have unconditional commitments related to the purchase of loans and mortgage-related securities. These are

primarily mortgage commitment derivatives and include both on- and off-balance sheet commitments. A portion of these

have been recorded as derivatives in our consolidated balance sheets.

We lease certain office buildings and equipment accounted for as either operating or financing leases pursuant to

agreements that expire at various dates through May 31, 2045. Some of these leases provide for payment by the lessee

of property taxes, insurance premiums, cost of maintenance and other costs.

The following table summarizes by remaining maturity, non-cancelable future commitments related to loan and

mortgage purchases, operating and finance leases and other agreements.


	As of December 31, 2024
	Loans and Mortgage- Related Securities	Operating Leases(1)	Finance Leases(2)	Other(3)
	(Dollars in millions)
2025	$35,327	$63	$19	$200
2026	9	61	19	157
2027	—	60	20	110
2028	—	59	20	72
2029	—	48	7	2
Thereafter	—	311	343	3
Total	$35,336	$602	$428	$544

(1)Consists of amounts related to office buildings and equipment leases.

(3)Includes purchase commitments for certain telecommunications services, computer software and services, and other agreements and