Fair Value (Tables)

6 Months Ended

Jun. 30, 2025

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 June 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		$	—		$	1,160		$	25		$	—		$	1,185



Non-mortgage-related(2)		75,788			19			—			—			75,807
Total trading securities		75,788			1,179			25			—			76,992
Available-for-sale securities:



Agency(3)		—			35			289			—			324



Other mortgage-related		—			4			110			—			114
Total available-for-sale securities		—			39			399			—			438
Mortgage loans		—			4,516			376			—			4,892
Derivative assets		—			561			47			(403)			205








Total assets at fair value		$	75,788		$	6,295		$	847		$	(403)		$	82,527

Liabilities:
Long-term debt:


Of Fannie Mae		$	—		$	78		$	249		$	—		$	327

Of consolidated trusts		—			15,204			101			—			15,305
Total long-term debt		—			15,282			350			—			15,632
Derivative liabilities		—			1,759			14			(1,480)			293








Total liabilities at fair value		$	—		$	17,041		$	364		$	(1,480)		$	15,925


	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 securities		77,610			1,090			28			—			78,728
Available-for-sale securities:



Agency(3)		—			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)Primarily consists of U.S. Treasury securities.

(3)Agency securities consist of securities issued by Fannie Mae, Freddie Mac, or 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 Securities		Available-for-Sale Securities		Mortgage Loans		Net Derivatives		Long-term Debt
	(Dollars in millions)
Balance as of March 31, 2025	$	26	$	405	$	388	$	35	$	(364)
Purchases	—		—		—		—		—
Sales	—		—		—		—		—
Issuances	—		—		—		—		—
Settlements	—		(17)		(13)		18		2
Net transfers	—		—		1		—		—
Total gains (losses) realized & unrealized(1)	(1)		11		—		(20)		12
Balance as of June 30, 2025	$	25	$	399	$	376	$	33	$	(350)


	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	—		—		—		—		—
Issuances	—		—		—		—		—
Settlements	—		(36)		(29)		19		6
Net transfers	(3)		—		(1)		—		—
Total gains (losses) realized & unrealized(1)	—		8		7		(25)		(3)
Balance as of June 30, 2025	$	25	$	399	$	376	$	33	$	(350)


	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 March 31, 2024	$	28	$	487	$	470	$	69	$	(387)
Purchases	—		—		—		—		—
Sales	—		—		(2)		—		—
Issuances	—		—		—		—		—
Settlements	—		(18)		(16)		25		3
Net transfers	4		(1)		(23)		—		1
Total gains (losses) realized & unrealized(1)	—		(7)		(4)		—		3
Balance as of June 30, 2024	$	32	$	461	$	425	$	94	$	(380)


	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	—		(55)		(33)		29		7
Net transfers	7		(1)		(10)		—		1
Total gains (losses) realized & unrealized(1)	(1)		3		(3)		(12)		(3)
Balance as of June 30, 2024	$	32	$	461	$	425	$	94	$	(380)

(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 June 30, 2025 or June 30, 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 June 30, 2025

Fair Value

Significant Valuation Techniques

(Dollars in millions)

Recurring fair value measurements:

Trading securities:

Mortgage-related(1)

Primarily Consensus

Available-for-sale securities:

Agency(1)

289

Consensus

Other mortgage-related

110

Primarily Discounted Cash Flow, Single Vendor, and Consensus

Total available-for-sale securities

399

Net derivatives

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)

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

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 Techniques	June 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	$	189	$	113




Single-family mortgage loans held for investment, at amortized cost	Internal Model	270		267




Multifamily mortgage loans held for investment, at amortized cost	Appraisal	172		448

	Broker Price Opinion	1,186		851
	Internal Model	90		172

Total multifamily mortgage loans held for investment, at amortized cost		1,448		1,471

Acquired property, net:
Single-family	Accepted Offer and Appraisal	192		74
	Internal Model and Walk Forward	305		294
Total single-family		497		368




Multifamily	Broker Price Opinion and Appraisal	77		278





Total nonrecurring assets at fair value		$	2,481	$	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 June 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 and cash equivalents, including restricted cash and cash equivalents	$	78,552	$	38,427		$	40,125		$	—		$	—		$	78,552
Securities purchased under agreements to resell	23,753		—			23,753			—			—			23,753
Trading securities	76,992		75,788			1,179			25			—			76,992
Available-for-sale securities	438		—			39			399			—			438
Mortgage loans held for sale	393		—			102			319			—			421
Mortgage loans held for investment, net of allowance for loan losses	4,119,738		—			3,585,154			130,751			—			3,715,905
Advances to lenders	2,211		—			2,211			—			—			2,211
Derivative assets at fair value	205		—			561			47			(403)			205
Guaranty assets	60		—			—			148			—			148
Total financial assets	$	4,302,342	$	114,215		$	3,653,124		$	131,689		$	(403)		$	3,898,625

Financial liabilities:

Short-term debt:
Of Fannie Mae	$	11,095	$	—		$	11,096		$	—		$	—		$	11,096

Long-term debt:
Of Fannie Mae	117,221		—			119,024			603			—			119,627
Of consolidated trusts	4,082,196		—			3,645,981			261			—			3,646,242
Derivative liabilities at fair value	293		—			1,759			14			(1,480)			293
Guaranty obligations	64		—			—			56			—			56
Total financial liabilities	$	4,210,869	$	—		$	3,777,860		$	934		$	(1,480)		$	3,777,314


	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 and cash equivalents, including restricted cash and cash equivalents	$	78,811	$	38,536		$	40,275		$	—			$	—	$	78,811
Securities purchased under agreements to resell	15,975		—			15,975			—				—		15,975
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

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
	June 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		$	4,892		$	327		$	15,305		$	3,744		$	385		$	13,292
Unpaid principal balance		5,239			327			15,910			4,079			383			13,766

(1)Includes nonaccrual loans with a fair value of $26 million and $31 million as of June 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 June 30, 2025 and December 31, 2024, respectively.