Fair Value

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis.

Fair Value Measurement

Fair value measurement guidance defines fair value, establishes a framework for measuring fair value and sets forth disclosures around fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. The guidance establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value as follows:

•Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2: Limited observable inputs or observable inputs for similar assets and liabilities.

•Level 3: Unobservable inputs.

We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. See “Note 16, Fair Value” in our 2024 Form 10-K for information on the valuation control processes and the valuation techniques we use for fair value measurement and disclosure as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific situations. If the inputs used to measure assets or liabilities at fair value change, it may also result in a change in classification between Levels 1, 2, and 3. We made no material changes to the valuation control processes or the valuation techniques for the nine months ended September 30, 2025.

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 September 30, 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		$	—		$	5,076		$	26		$	—		$	5,102
Non-mortgage-related		66,149			17			—			—			66,166
Total trading securities		66,149			5,093			26			—			71,268
Available-for-sale securities:
Agency(2)		—			33			283			—			316
Other mortgage-related		—			4			68			—			72
Total available-for-sale securities		—			37			351			—			388
Mortgage loans		—			4,831			371			—			5,202
Derivative assets		—			364			57			(277)			144
Total assets at fair value		$	66,149		$	10,325		$	805		$	(277)		$	77,002
Liabilities:
Long-term debt:
Of Fannie Mae		$	—		$	41		$	258		$	—		$	299
Of consolidated trusts		—			15,229			94			—			15,323
Total long-term debt		—			15,270			352			—			15,622
Derivative liabilities		—			1,494			9			(1,324)			179
Total liabilities at fair value		$	—		$	16,764		$	361		$	(1,324)		$	15,801

	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		77,610			20			—			—			77,630
Total trading securities		77,610			1,090			28			—			78,728
Available-for-sale securities:
Agency(2)		—			38			301			—			339
Other mortgage-related		—			4			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)Agency securities consist of securities issued by Fannie Mae, Freddie Mac, or Ginnie Mae.

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 Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of June 30, 2025	$	25	$	399	$	376	$	33	$	(350)
Purchases	—		—		—		—		—
Sales	—		—		(1)		—		—
Issuances	—		—		—		—		—
Settlements	—		(39)		(12)		2		4
Net transfers	—		—		1		—		—
Total gains (losses) realized & unrealized(1)	1		(9)		7		13		(6)
Balance as of September 30, 2025	$	26	$	351	$	371	$	48	$	(352)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Trading Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of December 31, 2024	$	28	$	427	$	399	$	39	$	(353)
Purchases	—		—		—		—		—
Sales	—		—		(1)		—		—
Issuances	—		—		—		—		—
Settlements	—		(75)		(41)		21		10
Net transfers	(3)		—		—		—		—
Total gains (losses) realized & unrealized(1)	1		(1)		14		(12)		(9)
Balance as of September 30, 2025	$	26	$	351	$	371	$	48	$	(352)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Trading Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of June 30, 2024	$	32	$	461	$	425	$	94	$	(380)
Purchases	—		—		—		—		—
Sales	—		—		—		—		—
Issuances	—		—		—		—		—
Settlements	—		(19)		(14)		5		5
Net transfers	1		—		1		—		(1)
Total gains (losses) realized & unrealized(1)	2		6		18		(19)		(18)
Balance as of September 30, 2024	$	35	$	448	$	430	$	80	$	(394)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Trading Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of December 31, 2023	$	26	$	514	$	477	$	77	$	(385)
Purchases	—		—		—		—		—
Sales	—		—		(6)		—		—
Issuances	—		—		—		—		—
Settlements	—		(74)		(47)		34		12
Net transfers	8		(1)		(9)		—		—
Total gains (losses) realized & unrealized(1)	1		9		15		(31)		(21)
Balance as of September 30, 2024	$	35	$	448	$	430	$	80	$	(394)

(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 September 30, 2025 or September 30, 2024.

The following tables display valuation techniques 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 September 30, 2025
	Fair Value		Significant Valuation Techniques
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related(1)	$	26	Primarily Consensus
Available-for-sale securities:
Agency(1)	$	283	Consensus and Single Vendor
Other mortgage-related	68		Primarily Single Vendor and Consensus
Total available-for-sale securities	$	351
Net derivatives	$	48	Dealer Mark and Discounted Cash Flow

	Fair Value Measurements as of December 31, 2024
	Fair Value		Significant 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-related	126		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.

In our condensed consolidated balance sheets, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment).

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 Techniques	September 30, 2025		December 31, 2024
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans:(1)
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	455	$	113
Single-family mortgage loans held for investment, at amortized cost	Internal Model	272		267
Multifamily mortgage loans held for investment, at amortized cost	Appraisal	259		448
	Asset Manager Estimate	71		—
	Broker Price Opinion	1,319		851
	Internal Model	176		172
Total multifamily mortgage loans held for investment, at amortized cost		1,825		1,471
Acquired property, net:
Single-family	Accepted Offer and Appraisal	172		74
	Internal Model and Walk Forward	284		294
Total single-family		456		368
Multifamily	Broker Price Opinion and Appraisal	97		278
Total nonrecurring assets at fair value		$	3,105	$	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 September 30, 2025
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash, including restricted cash	$	39,375	$	39,375	$	—	$	—	$	—	$	39,375
Securities purchased under agreements to resell	61,525		—		61,525		—		—		61,525
Trading securities	71,268		66,149		5,093		26		—		71,268
Available-for-sale securities	388		—		37		351		—		388
Mortgage loans held for sale	808		—		521		338		—		859
Mortgage loans held for investment, net of allowance for loan losses	4,122,582		—		3,640,183		134,684		—		3,774,867
Advances to lenders	3,227		—		3,227		—		—		3,227
Derivative assets at fair value	144		—		364		57		(277)		144
Guaranty assets	57		—		—		144		—		144
Total financial assets	$	4,299,374	$	105,524	$	3,710,950	$	135,600	$	(277)	$	3,951,797
Financial liabilities:
Short-term debt:
Of Fannie Mae	$	19,922	$	—	$	19,928	$	—	$	—	$	19,928
Long-term debt:
Of Fannie Mae	106,468		—		108,474		601		—		109,075
Of consolidated trusts	4,076,945		—		3,696,260		247		—		3,696,507
Derivative liabilities at fair value	179		—		1,494		9		(1,324)		179
Guaranty obligations	62		—		—		51		—		51
Total financial liabilities	$	4,203,576	$	—	$	3,826,156	$	908	$	(1,324)	$	3,825,740

	As of December 31, 2024
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment		Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash, including restricted cash	$	38,536	$	38,536	$	—	$	—	$	—	$	38,536
Securities purchased under agreements to resell	56,250		—		56,250		—		—		56,250
Trading securities	78,728		77,610		1,090		28		—		78,728
Available-for-sale securities	469		—		42		427		—		469
Mortgage loans held for sale	373		—		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 lenders	1,825		—		1,825		—		—		1,825
Derivative assets at fair value	179		—		487		54		(362)		179
Guaranty assets	64		—		—		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 Mae	128,234		—		129,152		567		—		129,719
Of consolidated trusts	4,088,675		—		3,557,237		274		—		3,557,511
Derivative liabilities at fair value	154		—		2,506		15		(2,367)		154
Guaranty obligations	69		—		—		60		—		60
Total financial liabilities	$	4,228,320	$	—	$	3,700,088	$	916	$	(2,367)	$	3,698,637

For a detailed description and classification of our financial instruments, see “Note 16, Fair Value” in our 2024 Form 10-K.

Fair Value Option

We generally elect the fair value option on a financial instrument when the accounting guidance would otherwise require us to separately account for a derivative that is embedded in the instrument at fair value. Under the fair value option, we carry this type of instrument, in its entirety, at fair value instead of separately accounting for the derivative.

Interest income from the mortgage loans is recorded in “Interest income: Mortgage loans” and interest expense for the debt instruments is recorded in “Interest expense: Long-term debt” in our condensed consolidated statements of operations and comprehensive income.

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
	September 30, 2025									December 31, 2024
	Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts			Loans(1)			Long-Term Debt of Fannie Mae			Long-Term Debt of Consolidated Trusts
	(Dollars in millions)
Fair value		$	5,202		$	299		$	15,323		$	3,744		$	385		$	13,292
Unpaid principal balance		5,528			290			15,827			4,079			383			13,766

(1)Includes nonaccrual loans with a fair value of $26 million and $31 million as of September 30, 2025 and December 31, 2024, respectively. Includes loans that are 90 days or more past due with a fair value of $22 million and $25 million as of September 30, 2025 and December 31, 2024, respectively.

Changes in Fair Value under the Fair Value Option Election

We recorded gains of $87 million and $248 million for the three and nine months ended September 30, 2025, respectively, and gains of $134 million and $87 million for the three and nine months ended September 30, 2024, respectively, from changes in the fair value of loans recorded at fair value in “Fair value gains (losses), net” in our condensed consolidated statements of operations and comprehensive income.

We recorded losses of $203 million and $582 million for the three and nine months ended September 30, 2025, respectively, and losses of $471 million and $343 million for the three and nine months ended September 30, 2024, respectively, from changes in the fair value of long-term debt recorded at fair value in “Fair value gains (losses), net” in our condensed consolidated statements of operations and comprehensive income.