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Fair Value (Tables)

9 Months Ended

Sep. 30, 2026

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, 2026
	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(2)		$	—		$	23,047		$	22		$	—		$	23,069



Non-mortgage-related(3)		40,068			19			—			—			40,087
Total trading securities		40,068			23,066			22			—			63,156
Available-for-sale securities:








Mortgage-related(2)		—			269			301			—			570
Non-mortgage-related(3)		36,997			—			—			—			36,997
Total available-for-sale securities		36,997			269			301			—			37,567
Mortgage loans		—			5,935			374			—			6,309
Derivative assets		—			658			47			(206)			499








Total assets at fair value		$	77,065		$	29,928		$	744		$	(206)		$	107,531

Liabilities:
Long-term debt:


Of Fannie Mae		$	—		$	—		$	235		$	—		$	235

Of consolidated trusts		—			14,649			79			—			14,728
Total long-term debt		—			14,649			314			—			14,963
Derivative liabilities		—			3,269			12			(2,641)			640








Total liabilities at fair value		$	—		$	17,918		$	326		$	(2,641)		$	15,603


	Fair Value Measurements as of December 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(2)		$	—		$	14,264		$	27		$	—		$	14,291



Non-mortgage-related(3)		55,205			18			—			—			55,223
Total trading securities		55,205			14,282			27			—			69,514
Available-for-sale securities:








Mortgage-related(2)		—			34			341			—			375
Non-mortgage-related(3)		—			—			—			—			—
Total available-for-sale securities		—			34			341			—			375
Mortgage loans		—			5,076			388			—			5,464
Derivative assets		—			304			72			(199)			177








Total assets at fair value		$	55,205		$	19,696		$	828		$	(199)		$	75,530

Liabilities:
Long-term debt:


Of Fannie Mae		$	—		$	—		$	256		$	—		$	256

Of consolidated trusts		—			14,969			91			—			15,060
Total long-term debt		—			14,969			347			—			15,316
Derivative liabilities		—			1,387			7			(1,242)			152








Total liabilities at fair value		$	—		$	16,356		$	354		$	(1,242)		$	15,468

(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)Mortgage-related securities primarily consist of securities issued by Fannie Mae, Freddie Mac, or Ginnie Mae.

(3)Non-mortgage related securities consist of U.S. Treasury securities.

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 Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of June 30, 2026	$	26	$	320	$	367	$	69	$	(346)
Purchases	—		—		—		—		—
Sales	—		—		—		—		—
Issuances	—		—		—		—		—
Settlements	—		(11)		(20)		1		6
Net transfers	—		—		32		—		—
Total gains (losses) realized & unrealized(1)	(4)		(8)		(5)		(35)		26
Balance as of September 30, 2026	$	22	$	301	$	374	$	35	$	(314)

	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, 2025	$	27	$	341	$	388	$	65	$	(347)
Purchases	—		—		—		—		—
Sales	—		—		—		—		—
Issuances	—		—		—		—		—
Settlements	—		(29)		(47)		5		15
Net transfers	—		(1)		38		10		—
Total gains (losses) realized & unrealized(1)	(5)		(10)		(5)		(45)		18
Balance as of September 30, 2026	$	22	$	301	$	374	$	35	$	(314)


	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)

(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, 2026 or September 30, 2025.

Level 3 Assets Measured on Recurring and Nonrecurring Basis

The following tables display significant 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, 2026

Fair Value

Significant Valuation Techniques

(Dollars in millions)

Recurring fair value measurements:

Trading securities:

Mortgage-related

Single Vendor

Available-for-sale securities:

Mortgage-related

301

Primarily Consensus and Single Vendor

Net derivatives

Dealer Mark and Discounted Cash Flow

Fair Value Measurements as of December 31, 2025

Fair Value

Significant Valuation Techniques

(Dollars in millions)

Recurring fair value measurements:

Trading securities:

Mortgage-related

Single Vendor

Available-for-sale securities:

Mortgage-related

341

Primarily Consensus, Single Vendor, and Discounted Cash Flow

Net derivatives

Dealer Mark and Discounted Cash Flow

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, 2026		December 31, 2025
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans:(1)
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$	172	$	107




Single-family mortgage loans held for investment, at amortized cost	Internal Model	209		221




Multifamily mortgage loans held for investment, at amortized cost	Appraisal	159		231
	Asset Manager Estimate	13		1
	Broker Price Opinion	1,631		1,586
	Internal Model	352		250

Total multifamily mortgage loans held for investment, at amortized cost		2,155		2,068

Acquired property, net:
Single-family	Accepted Offer and Appraisal	217		139
	Internal Model and Walk Forward	324		263
Total single-family		541		402




Multifamily	Broker Price Opinion and Appraisal	298		104





Total nonrecurring assets at fair value		$	3,375	$	2,902

(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, 2026
	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	$	36,343	$	36,343		$	—		$	—		$	—		$	36,343
Securities purchased under agreements to resell	33,450		—			33,450			—			—			33,450
Trading securities	63,156		40,068			23,066			22			—			63,156
Available-for-sale securities	37,567		36,997			269			301			—			37,567
Mortgage loans held for sale	332		—			215			150			—			365
Mortgage loans held for investment, net of allowance for loan losses	4,106,299		—			3,437,626			154,860			—			3,592,486
Advances to lenders	1,206		—			1,206			—			—			1,206
Derivative assets at fair value	499		—			658			47			(206)			499
Guaranty assets	95		—			—			171			—			171
Total financial assets	$	4,278,947	$	113,408		$	3,496,490		$	155,551		$	(206)		$	3,765,243

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	31,120	$	—		$	31,117		$	—		$	—		$	31,117

Long-term debt:
Of Fannie Mae	137,611		—			137,415			235			—			137,650
Of consolidated trusts	4,000,518		—			3,440,818			230			—			3,441,048
Derivative liabilities at fair value	640		—			3,269			12			(2,641)			640
Guaranty obligations	100		—			—			51			—			51
Total financial liabilities	$	4,169,989	$	—		$	3,612,619		$	528		$	(2,641)		$	3,610,506


	As of December 31, 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	$	42,583	$	42,583		$	—		$	—			$	—	$	42,583
Securities purchased under agreements to resell	45,650		—			45,650			—				—		45,650
Trading securities	69,514		55,205			14,282			27				—		69,514
Available-for-sale securities	375		—			34			341				—		375
Mortgage loans held for sale	209		—			23			201				—		224
Mortgage loans held for investment, net of allowance for loan losses	4,119,104		—			3,656,465			137,864				—		3,794,329
Advances to lenders	3,595		—			3,595			—				—		3,595
Derivative assets at fair value	177		—			304			72				(199)		177
Guaranty assets	90		—			—			172				—		172
Total financial assets	$	4,281,297	$	97,788		$	3,720,353		$	138,677			$	(199)	$	3,956,619

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	24,538	$	—		$	24,548		$	—			$	—	$	24,548

Long-term debt:
Of Fannie Mae	102,751		—			104,784			602				—		105,386
Of consolidated trusts	4,053,140		—			3,701,675			235				—		3,701,910
Derivative liabilities at fair value	152		—			1,387			7				(1,242)		152
Guaranty obligations	96		—			—			54				—		54
Total financial liabilities	$	4,180,677	$	—		$	3,832,394		$	898			$	(1,242)	$	3,832,050

Fair Value Option

The following table displays the fair value and UPB of the financial instruments for which we have elected the fair value option.


	As of
	September 30, 2026									December 31, 2025
	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		$	6,309		$	235		$	14,728		$	5,464		$	256		$	15,060
UPB		7,242			250			16,346			5,808			250			15,516

(1)Includes nonaccrual loans with a fair value of $30 million as of both September 30, 2026 and December 31, 2025. Includes loans that are 90 days or more past due with a fair value of $25 million and $26 million as of September 30, 2026 and December 31, 2025, respectively.