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Segment Reporting
 9 Months Ended
Sep. 30, 2025
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 former President and CEO, was the chief operating decision maker (“CODM”) for our two reportable business segments for the three and nine months ended September 30, 2025 and 2024. 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” in our 2024 Form 10-K. Also see “Note 11, Segment Reporting” in our 2024 Form 10-K for additional information related to our business segments, including basis of organization and other segment activities.
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
September 30, 2025December 31, 2024
(Dollars in millions)
Single-Family$3,788,572 $3,823,840 
Multifamily547,284 525,891 
Total assets
$4,335,856 $4,349,731 
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 below tables display our segment results.
For the Three Months Ended September 30,
20252024
Single-FamilyMultifamilyTotalSingle-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)
$5,992 $1,192 $7,184 $6,131 $1,144 $7,275 
Fee and other income
104 19 123 48 18 66 
Net revenues6,096 1,211 7,307 6,179 1,162 7,341 
(Provision) benefit for credit losses(2)
(269)(69)(338)451 (424)27 
Fair value gains (losses), net(3)
(22)35 13 (8)60 52 
Investment gains (losses), net(4)
5 (6)(1)9 3 12 
Non-interest expense:
Administrative expenses(5)
(669)(150)(819)(732)(152)(884)
Legislative assessments(6)
(929)(14)(943)(936)(12)(948)
Credit enhancement expense(7)
(330)(79)(409)(336)(75)(411)
Change in expected credit enhancement recoveries(8)
(11)57 46 (45)134 89 
Other income (expense), net(9)
4 (25)(21)(178)(47)(225)
Total non-interest expense(1,935)(211)(2,146)(2,227)(152)(2,379)
Income before federal income taxes3,875 960 4,835 4,404 649 5,053 
Provision for federal income taxes(790)(186)(976)(890)(119)(1,009)
Net income
$3,085 $774 $3,859 $3,514 $530 $4,044 
For the Nine Months Ended September 30,
20252024
Single-FamilyMultifamilyTotalSingle-FamilyMultifamilyTotal
(Dollars in millions)
Net interest income(1)
$17,850 $3,490 $21,340 $18,101 $3,465 $21,566 
Fee and other income
238 55 293 154 52 206 
Net revenues18,088 3,545 21,633 18,255 3,517 21,772 
(Provision) benefit for credit losses(2)
(1,030)(278)(1,308)1,334 (827)507 
Fair value gains (losses), net(3)
257 90 347 930 49 979 
Investment gains (losses), net(4)
(1)(8)(9)(48)20 (28)
Non-interest expense:
Administrative expenses(5)
(2,168)(490)(2,658)(2,225)(447)(2,672)
Legislative assessments(6)
(2,767)(46)(2,813)(2,785)(32)(2,817)
Credit enhancement expense(7)
(1,055)(233)(1,288)(1,022)(213)(1,235)
Change in expected credit enhancement recoveries(8)
(23)119 96 (134)323 189 
Other income (expense), net(9)
(301)(126)(427)(510)(95)(605)
Total non-interest expense(6,314)(776)(7,090)(6,676)(464)(7,140)
Income before federal income taxes11,000 2,573 13,573 13,795 2,295 16,090 
Provision for federal income taxes(2,261)(475)(2,736)(2,819)(423)(3,242)
Net income
$8,739 $2,098 $10,837 $10,976 $1,872 $12,848 
    
(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 Temporary Payroll Tax Cut Continuation Act of 2011 (“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)(Provision) benefit for credit losses is based on loans underlying the segment’s guaranty book of business.
(3)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.
(4)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.
(5)Consists of salaries and employee benefits and professional services, technology and occupancy expenses.
(6)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 affordable housing allocations and FHFA assessments.
(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 Securities® (“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)Primarily consists of debt extinguishment gains (losses),foreclosed property income (expense) and gains (losses) from partnership investments.