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Fair Value (Tables)
3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Recurring Changes in Fair Value
The following tables display our assets and liabilities measured in our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option.
Fair Value Measurements as of March 31, 2025
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Netting Adjustment(1)
Estimated Fair Value
(Dollars in millions)
Recurring fair value measurements:
Assets:
Trading securities:
Mortgage-related$— $992 $26 $— $1,018 
Non-mortgage-related(2)
77,865 19 — — 77,884 
Total trading securities77,865 1,011 26 — 78,902 
Available-for-sale securities:
Agency(3)
— 36 290 — 326 
Other mortgage-related— 115 — 119 
Total available-for-sale securities— 40 405 — 445 
Mortgage loans— 4,120 388 — 4,508 
Derivative assets— 472 54 (399)127 
Total assets at fair value$77,865 $5,643 $873 $(399)$83,982 
Liabilities:
Long-term debt:
Of Fannie Mae$— $95 $263 $— $358 
Of consolidated trusts— 14,876 101 — 14,977 
Total long-term debt— 14,971 364 — 15,335 
Derivative liabilities— 2,031 19 (1,893)157 
Total liabilities at fair value$— $17,002 $383 $(1,893)$15,492 
Fair Value Measurements as of December 31, 2024
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Netting Adjustment(1)
Estimated Fair Value
(Dollars in millions)
Recurring fair value measurements:
Assets:
Trading securities:
Mortgage-related$— $1,070 $28 $— $1,098 
Non-mortgage-related(2)
77,610 20 — — 77,630 
Total trading securities77,610 1,090 28 — 78,728 
Available-for-sale securities:
Agency(3)
— 38 301 — 339 
Other mortgage-related— 126 — 130 
Total available-for-sale securities— 42 427 — 469 
Mortgage loans— 3,345 399 — 3,744 
Derivative assets— 487 54 (362)179 
Total assets at fair value$77,610 $4,964 $908 $(362)$83,120 
Liabilities:
Long-term debt:
Of Fannie Mae$— $136 $249 $— $385 
Of consolidated trusts— 13,188 104 — 13,292 
Total long-term debt— 13,324 353 — 13,677 
Derivative liabilities— 2,506 15 (2,367)154 
Total liabilities at fair value$— $15,830 $368 $(2,367)$13,831 
(1)Derivative contracts are reported on a gross basis by level. The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received.
(2)Primarily includes U.S. Treasury securities.
(3)Agency securities consist of securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Trading SecuritiesAvailable-for-Sale SecuritiesMortgage LoansNet DerivativesLong-term Debt
(Dollars in millions)
Balance as of December 31, 2024
$28 $427 $399 $39 $(353)
Purchases— — — — — 
Sales— — — — — 
Issuances— — — — — 
Settlements— (19)(16)
Net transfers(3)— (2)— — 
Total gains (losses) realized & unrealized(1)
(3)(5)(15)
Balance as of March 31, 2025
$26 $405 $388 $35 $(364)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Trading SecuritiesAvailable-for-Sale SecuritiesMortgage LoansNet DerivativesLong-term Debt
(Dollars in millions)
Balance as of December 31, 2023
$26 $514 $477 $77 $(385)
Purchases— — — — — 
Sales— — (4)— — 
Issuances— — — — — 
Settlements— (37)(17)
Net transfers— 13 — — 
Total gains (losses) realized & unrealized(1)
(1)10 (12)(6)
Balance as of March 31, 2024
$28 $487 $470 $69 $(387)
(1)We had no significant unrealized gains or losses related to assets and liabilities still held in either “Net income” or “Other comprehensive income (loss)” as of March 31, 2025 or March 31, 2024.
Level 3 Assets Measured on Recurring and Nonrecurring Basis
The following tables display valuation techniques and the range and the weighted average of significant unobservable inputs for our Level 3 assets and liabilities measured at fair value on a recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the reporting date.
Fair Value Measurements as of March 31, 2025
Fair ValueSignificant Valuation Techniques
(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related(1)
$26 Primarily Consensus
Available-for-sale securities:
Agency(1)
$290 Discounted Cash Flow, Single Vendor, and Consensus
Other mortgage-related115 Primarily Discounted Cash Flow, Single Vendor, and Consensus
Total available-for-sale securities$405 
Net derivatives$35 Dealer Mark and Discounted Cash Flow
Fair Value Measurements as of December 31, 2024
Fair ValueSignificant Valuation Techniques
(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related(1)
$28 Primarily Consensus
Available-for-sale securities:
Agency(1)
$301 Consensus
Other mortgage-related126 Primarily Discounted Cash Flow, Single Vendor, and Consensus
Total available-for-sale securities$427 
Net derivatives$39 Dealer Mark and Discounted Cash Flow
(1)Includes Fannie Mae and Freddie Mac securities.
The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis.
Fair Value Measurements as of
Valuation TechniquesMarch 31, 2025December 31, 2024
(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans:(1)
Mortgage loans held for sale, at lower of cost or fair valueConsensus$112 $113 
Single-family mortgage loans held for investment, at amortized costInternal Model165 267 
Multifamily mortgage loans held for investment, at amortized costAppraisal109 448 
Broker Price Opinion390 851 
Internal Model88 172 
Total multifamily mortgage loans held for investment, at amortized cost587 1,471 
Acquired property, net:
Single-familyAccepted Offer and Appraisal172 74 
Internal Model and Walk Forward306 294 
Total single-family478 368 
MultifamilyBroker Price Opinion58 278 
Total nonrecurring assets at fair value$1,400 $2,497 
(1)When we measure impairment, including recoveries, based on the fair value of the loan or the underlying collateral and impairment is recorded on any component of the mortgage loan, including accrued interest receivable and amounts due from the borrower for advances of taxes and insurance, we present the entire fair value measurement amount with the corresponding mortgage loan.
Fair Value of Financial Instruments
The following table displays the carrying value and estimated fair value of our financial instruments. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that we do not record in our condensed consolidated balance sheets. The fair values of these commitments are included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes all non-financial instruments; therefore, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total consolidated assets and liabilities.
As of March 31, 2025
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)
Netting AdjustmentEstimated Fair Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents
$77,797 $38,072 $39,725 $— $— $77,797 
Securities purchased under agreements to resell31,769 — 31,769 — — 31,769 
Trading securities78,902 77,865 1,011 26 — 78,902 
Available-for-sale securities445 — 40 405 — 445 
Mortgage loans held for sale775 — 485 312 — 797 
Mortgage loans held for investment, net of allowance for loan losses
4,126,401 — 3,562,659 132,222 — 3,694,881 
Advances to lenders1,848 — 1,848 — — 1,848 
Derivative assets at fair value127 — 472 54 (399)127 
Guaranty assets61 — — 158 — 158 
Total financial assets$4,318,125 $115,937 $3,638,009 $133,177 $(399)$3,886,724 
Financial liabilities:
Short-term debt:
Of Fannie Mae$11,041 $— $11,042 $— $— $11,042 
Long-term debt:
Of Fannie Mae125,777 — 127,301 592 — 127,893 
Of consolidated trusts4,091,840 — 3,635,604 265 — 3,635,869 
Derivative liabilities at fair value157 — 2,031 19 (1,893)157 
Guaranty obligations67 — — 58 — 58 
Total financial liabilities$4,228,882 $— $3,775,978 $934 $(1,893)$3,775,019 
As of December 31, 2024
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)
Netting AdjustmentEstimated Fair Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash and cash equivalents$78,811 $38,536 $40,275 $— $— $78,811 
Securities purchased under agreements to resell15,975 — 15,975 — — 15,975 
Trading securities78,728 77,610 1,090 28 — 78,728 
Available-for-sale securities469 — 42 427 — 469 
Mortgage loans held for sale373 — 130 258 — 388 
Mortgage loans held for investment, net of allowance for loan losses
4,137,633 — 3,496,803 127,763 — 3,624,566 
Advances to lenders1,825 — 1,825 — — 1,825 
Derivative assets at fair value179 — 487 54 (362)179 
Guaranty assets64 — — 160 — 160 
Total financial assets$4,314,057 $116,146 $3,556,627 $128,690 $(362)$3,801,101 
Financial liabilities:
Short-term debt:
Of Fannie Mae$11,188 $— $11,193 $— $— $11,193 
Long-term debt:
Of Fannie Mae128,234 — 129,152 567 — 129,719 
Of consolidated trusts4,088,675 — 3,557,237 274 — 3,557,511 
Derivative liabilities at fair value154 — 2,506 15 (2,367)154 
Guaranty obligations69 — — 60 — 60 
Total financial liabilities$4,228,320 $— $3,700,088 $916 $(2,367)$3,698,637 
Fair Value Option
The following table displays the fair value and unpaid principal balance of the financial instruments for which we have elected the fair value option.
As of
March 31, 2025December 31, 2024
Loans(1)
Long-Term Debt of Fannie MaeLong-Term Debt of Consolidated Trusts
Loans(1)
Long-Term Debt of Fannie MaeLong-Term Debt of Consolidated Trusts
(Dollars in millions)
Fair value$4,508 $358 $14,977 $3,744 $385 $13,292 
Unpaid principal balance4,832 343 15,486 4,079 383 13,766 
(1)Includes nonaccrual loans with a fair value of $31 million as of both March 31, 2025 and December 31, 2024. Includes loans that are 90 days or more past due with a fair value of $26 million and $25 million as of March 31, 2025 and December 31, 2024, respectively.