Fannie Mae is a leading source of financing for residential mortgages in the United States. We are a government-sponsored, stockholder-owned corporation, chartered by Congress to provide liquidity and stability to the U.S. housing market and to promote access to mortgage credit. We primarily do this by buying residential mortgage loans that are originated by lenders. We place these loans into trusts and issue guaranteed mortgage-backed securities (“MBS”) that global investors buy from us. We do not originate mortgage loans or lend money directly to borrowers.

We are currently operating under conservatorship, with the Federal Housing Finance Agency (“FHFA”) acting as conservator. See “Note 2, Conservatorship, Senior Preferred Stock Purchase Agreement and Related Matters” below and in our annual report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”) for information on our conservatorship, the senior preferred stock purchase agreement, the impact of U.S. government support of our business, and related party relationships.

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated.

The accompanying financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our 2024 Form 10-K. Certain disclosures are condensed or omitted from the accompanying financial statements as they are not required for interim financial statements under GAAP. In the opinion of management, the accompanying financial statements contain all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of our results. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. To conform to our current-period presentation, we have reclassified certain amounts reported in our prior period consolidated financial statements.

Beginning in the first quarter of 2025, we changed our presentation on the condensed consolidated statements of cash flows for certain borrowings with original contractual maturities of three months or less such that the proceeds from the issuance of these borrowings and the related payments to redeem them are presented on a net basis. Previously, proceeds from the issuance of these borrowings and the related repayments to redeem them were presented separately (i.e., gross) on the condensed consolidated statements of cash flows. As a result of this change, we recast the prior periods presented to reflect the net presentation of cash flows on these borrowings. For borrowings with original contractual maturities greater than three months, we continue to present proceeds from issuance and payments to redeem the borrowings on a gross basis.

Beginning in the third quarter of 2025, we changed the presentation of interest income from reverse repurchase agreements to separately disclose interest income from securities purchased under agreements to resell on the condensed consolidated statements of operations and other comprehensive income. We also combined the remaining interest income previously classified as other with interest income from investments in securities. We recast the prior periods presented on the condensed consolidated statements of operations and comprehensive income for these changes.

Beginning in the third quarter of 2025, we have changed which financial instruments are presented as cash equivalents and restricted cash equivalents. Previously, we presented U.S. Treasury securities that had a maturity of three months or less at acquisition and overnight reverse repurchase agreements as cash equivalents (both unrestricted and restricted, as appropriate). As a result of this change, all U.S. Treasury securities are presented as “Investments in securities” and all reverse repurchase agreements are presented as “Securities purchased under agreements to resell” on our condensed consolidated balance sheets. Additionally, as a result of this change, there are no financial instruments presented as cash equivalents or restricted cash equivalents as of September 30, 2025 or December 31, 2024.

We have concluded that the change in presentation of short-term U.S. Treasury securities and overnight reverse repurchase agreements is a change in accounting principle. Further, we concluded that the change is preferable because it provides consistency in the presentation of our holdings of investment securities and reverse repurchase agreements. Additionally, it more accurately reflects how these investments are managed within our corporate liquidity portfolio. Finally, the change aligns the presentation of short-term U.S. Treasury securities and overnight reverse repurchase agreements with the presentation used by other large financial institutions, increasing the comparability of our financial statements with the financial statements of those entities.

The change in accounting principle made in the third quarter of 2025 is reflected in our financial statements on a retrospective basis. The following tables display our changes to the condensed consolidated balance sheets and condensed consolidated statements of cash flows.


Condensed Consolidated Balance Sheets
		As of December 31, 2024
		As Previously Reported		Adjustment for Change in Accounting Principle		As Adjusted
	(Dollars in millions)
Cash		$	38,853	$	(25,376)	$	13,477
Restricted cash		39,958		(14,899)		25,059
Securities purchased under agreements to resell		15,975		40,275		56,250


Condensed Consolidated Statements of Cash Flows
		For the Nine Months Ended September 30, 2024
		As Previously Reported		Adjustment for Change in Accounting Principle		As Adjusted
	(Dollars in millions)
Net change in securities purchased under agreements to resell		$	12,635	$	(4,125)	$	8,510
Net cash provided by (used in) investing activities		115,608		(4,125)		111,483
Net increase (decrease) in cash and restricted cash		8,066		(4,125)		3,941
Cash and restricted cash at beginning of period		68,706		(34,725)		33,981
Cash and restricted cash at end of period		76,772		(38,850)		37,922

Preparing condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of our condensed consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting periods. Management has made significant estimates in a variety of areas including, but not limited to, the allowance for loan losses. Actual results could be different from these estimates.

Earnings per share (“EPS”) is presented for basic and diluted EPS. For the three months ended September 30, 2025 and 2024, the weighted average shares outstanding used in the computation of basic and diluted EPS includes 4.7

For the calculation of diluted EPS, the weighted average shares outstanding is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. For the three and nine months ended September 30, 2025, our diluted EPS weighted-average shares outstanding includes the 26 million shares issuable upon the conversion of convertible preferred stock. For the three months ended September 30, 2024, our diluted EPS weighted-average shares outstanding does not include the 26 million shares issuable upon the conversion of convertible preferred stock because it would have had an antidilutive effect due to the net losses attributable to common stockholders recognized in that period. For the nine months ended September 30, 2024, shares issuable upon the conversion of convertible preferred stock are included in the calculation.

We enter into various transactions where we pledge and accept collateral, the most common of which are our derivative transactions. We also pledge and receive collateral under our repurchase and reverse repurchase agreements.

We posted U.S. Treasury securities of $9.5 billion and $8.9 billion as collateral as of September 30, 2025 and December 31, 2024, respectively. The fair value of non-cash collateral received was $61.6 billion and $56.3 billion, of which $59.4 billion and $49.0 billion could be sold or repledged as of September 30, 2025 and December 31, 2024, respectively. None of the underlying collateral we received was sold or repledged as of September 30, 2025 or December 31, 2024.

We present foreclosed property in “Other assets” in our condensed consolidated balance sheets. We held $1.8 billion and $1.7 billion of acquired property, net as of September 30, 2025 and December 31, 2024, respectively.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the required disclosures primarily related to the income tax rate reconciliation and income taxes paid. The ASU requires an entity’s income tax rate reconciliation to provide additional information for reconciling items meeting a quantitative threshold, and to disclose certain selected categories within the income tax rate reconciliation. The ASU also requires entities to disclose the amount of income taxes paid, disaggregated by federal, state and foreign taxes. The ASU is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures. The guidance enhances the disclosures about an entity’s expenses by requiring more detailed information about the types of expenses in commonly presented expense captions. This guidance is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.