v3.25.2
Fair Value Disclosures (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Table - Assets and Liabilities Measured at Fair Value on a Recurring Basis
The table below presents our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option.
Table 13.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
(In millions)
Level 1Level 2Level 3
Netting Adjustments(1)
Total
Assets:
Investment securities:
Available-for-sale$— $3,093 $635 $— $3,728 
Trading:
Mortgage-related securities— 7,069 3,127 — 10,196 
Non-mortgage-related securities68,572 354 — — 68,926 
Total trading securities68,572 7,423 3,127 — 79,122 
Total investment securities68,572 10,516 3,762 — 82,850 
Mortgage loans held-for-sale— 3,867 — — 3,867 
Mortgage loans held-for-investment— 3,440 984 — 4,424 
Other assets:
 Guarantee assets— — 5,042 — 5,042 
 Derivative assets, net1 5,714 73 (4,902)886 
 Other assets— 12 226 — 238 
 Total other assets1 5,726 5,341 (4,902)6,166 
Total assets carried at fair value on a recurring basis$68,573 $23,549 $10,087 ($4,902)$97,307 
Liabilities:
Debt:
Debt of consolidated trusts$— $2,460 $16 $— $2,476 
Debt of Freddie Mac— 131 86 — 217 
Total debt— 2,591 102 — 2,693 
Other liabilities:
Derivative liabilities, net— 5,595 68 (4,696)967 
Total liabilities carried at fair value on a recurring basis$— $8,186 $170 ($4,696)$3,660 
 December 31, 2024
(In millions)Level 1Level 2Level 3
Netting Adjustments(1)
Total
Assets:
Investment securities:
Available-for-sale$— $3,316 $583 $— $3,899 
Trading:
Mortgage-related securities— 6,131 3,027 — 9,158 
Non-mortgage-related securities42,289 425 — — 42,714 
Total trading securities42,289 6,556 3,027 — 51,872 
Total investment securities42,289 9,872 3,610 — 55,771 
Mortgage loans held-for-sale— 10,099 1,295 — 11,394 
Mortgage loans held-for-investment— 1,572 841 — 2,413 
Other assets:
Guarantee assets— — 5,126 — 5,126 
Derivative assets, net 9 6,387 94 (5,989)501 
Other assets— 24 219 — 243 
 Total other assets9 6,411 5,439 (5,989)5,870 
Total assets carried at fair value on a recurring basis$42,298 $27,954 $11,185 ($5,989)$75,448 
Liabilities:
Debt:
Debt of consolidated trusts$— $1,996 $17 $— $2,013 
Debt of Freddie Mac— 241 85 — 326 
Total debt— 2,237 102 — 2,339 
Other liabilities:
Derivative liabilities, net— 7,116 120 (6,282)954 
Other liabilities— 5 19 — 24 
Total other liabilities— 7,121 139 (6,282)978 
 Total liabilities carried at fair value on a recurring basis$— $9,358 $241 ($6,282)$3,317 
(1)     Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.
Table - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs
The table below presents a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of income for Level 3 assets and liabilities.
Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs
2Q 2025
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at April 1, 2025$3,644 $155 $737 $5,391 $204 
Total realized/unrealized gains/losses(1)
Included in earnings(43)— (5)65 (30)
Included in other comprehensive income7 — — — — 
Purchases202 — — (9)— 
Issues— — — 156 — 
Sales— — — (2)— 
Settlements, net(48)— (14)(260)(4)
Transfers into Level 3— — 271 — — 
Transfers out of Level 3— (155)(5)— — 
Balance at June 30, 2025$3,762 $— $984 $5,341 $170 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2025(2)
$62 $— ($5)$65 ($30)
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2025
6 — — — — 
YTD 2025
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at January 1, 2025$3,610 $1,295 $841 $5,439 $241 
Total realized/unrealized gains/losses(1)
Included in earnings(60)3 5 144 (67)
Included in other comprehensive income12 — — — — 
Purchases289 32 — (9)— 
Issues— — — 309 3 
Sales— — — (8)— 
Settlements, net(89)— (69)(534)(6)
Transfers into Level 3— — 302 — 17 
Transfers out of Level 3(3)
— (1,330)(95)— (18)
Balance at June 30, 2025$3,762 $— $984 $5,341 $170 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2025(2)
$172 $— $— $144 ($67)
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2025
10 — — — — 
 2Q 2024
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at April 1, 2024$3,639 $787 $695 $5,540 $529 
Total realized/unrealized gains/losses(1)
Included in earnings(105)— (28)12 (3)
Included in other comprehensive income(1)— — — — 
Purchases136 388 — (2)(3)
Issues— — — 145 60 
Sales— (500)— (2)— 
Settlements, net(57)— (7)(236)(6)
Transfers into Level 3— — 133 — — 
Transfers out of Level 3— (48)(17)— — 
Balance at June 30, 2024$3,612 $627 $776 $5,457 $577 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2024(2)
$13 $— ($53)$12 $4 
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2024
(1)— — — — 
YTD 2024
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at January 1, 2024$3,449 $896 $473 $5,519 $496 
Total realized/unrealized gains/losses(1)
Included in earnings(218)(6)(52)142 19 
Included in other comprehensive income(6)— — — — 
Purchases496 682 — (12)(5)
Issues— — — 250 77 
Sales— (773)— (7)— 
Settlements, net(109)— (54)(435)(10)
Transfers into Level 3— 35 431 — — 
Transfers out of Level 3— (207)(22)— — 
Balance at June 30, 2024$3,612 $627 $776 $5,457 $577 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2024(2)
$32 $— ($53)$140 $28 
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2024
(5)— — — — 
(1)For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively.
(2)Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at June 30, 2025 and June 30, 2024, respectively.
(3)Transfers out of level 3 during YTD 2025 were primarily driven by a decline in the significance of the unobservable inputs for certain multifamily loans.
Table - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs
The table below presents a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of income for Level 3 assets and liabilities.
Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs
2Q 2025
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at April 1, 2025$3,644 $155 $737 $5,391 $204 
Total realized/unrealized gains/losses(1)
Included in earnings(43)— (5)65 (30)
Included in other comprehensive income7 — — — — 
Purchases202 — — (9)— 
Issues— — — 156 — 
Sales— — — (2)— 
Settlements, net(48)— (14)(260)(4)
Transfers into Level 3— — 271 — — 
Transfers out of Level 3— (155)(5)— — 
Balance at June 30, 2025$3,762 $— $984 $5,341 $170 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2025(2)
$62 $— ($5)$65 ($30)
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2025
6 — — — — 
YTD 2025
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at January 1, 2025$3,610 $1,295 $841 $5,439 $241 
Total realized/unrealized gains/losses(1)
Included in earnings(60)3 5 144 (67)
Included in other comprehensive income12 — — — — 
Purchases289 32 — (9)— 
Issues— — — 309 3 
Sales— — — (8)— 
Settlements, net(89)— (69)(534)(6)
Transfers into Level 3— — 302 — 17 
Transfers out of Level 3(3)
— (1,330)(95)— (18)
Balance at June 30, 2025$3,762 $— $984 $5,341 $170 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2025(2)
$172 $— $— $144 ($67)
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2025
10 — — — — 
 2Q 2024
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at April 1, 2024$3,639 $787 $695 $5,540 $529 
Total realized/unrealized gains/losses(1)
Included in earnings(105)— (28)12 (3)
Included in other comprehensive income(1)— — — — 
Purchases136 388 — (2)(3)
Issues— — — 145 60 
Sales— (500)— (2)— 
Settlements, net(57)— (7)(236)(6)
Transfers into Level 3— — 133 — — 
Transfers out of Level 3— (48)(17)— — 
Balance at June 30, 2024$3,612 $627 $776 $5,457 $577 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2024(2)
$13 $— ($53)$12 $4 
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2024
(1)— — — — 
YTD 2024
(In millions)Investment SecuritiesMortgage Loans Held-for-SaleMortgage Loans Held-for-InvestmentOther
Assets		Total
Liabilities
Balance at January 1, 2024$3,449 $896 $473 $5,519 $496 
Total realized/unrealized gains/losses(1)
Included in earnings(218)(6)(52)142 19 
Included in other comprehensive income(6)— — — — 
Purchases496 682 — (12)(5)
Issues— — — 250 77 
Sales— (773)— (7)— 
Settlements, net(109)— (54)(435)(10)
Transfers into Level 3— 35 431 — — 
Transfers out of Level 3— (207)(22)— — 
Balance at June 30, 2024$3,612 $627 $776 $5,457 $577 
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of June 30, 2024(2)
$32 $— ($53)$140 $28 
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of June 30, 2024
(5)— — — — 
(1)For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively.
(2)Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at June 30, 2025 and June 30, 2024, respectively.
(3)Transfers out of level 3 during YTD 2025 were primarily driven by a decline in the significance of the unobservable inputs for certain multifamily loans
Table - Quantitative Information about Recurring Level 3 Fair Value Measurements
The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis.
Table 13.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements
June 30, 2025
 
Level 3
Fair
Value
Predominant
Valuation
Technique(s)
Unobservable Inputs
(Dollars in millions, except for certain unobservable inputs as shown)

TypeRange
Weighted
Average(1)
Assets
Investment securities$2,327 External pricing sourcesPrice
$0.0 - $3,443.8
$88.7 
1,435 Other
Mortgage loans held-for-investment984 External pricing sourcesPrice
$21.6 - $106.4
$87.4 
Other assets4,731 Discounted cash flowsOAS
17 - 3,500 bps
48 bps
610 Other
Total Level 3 assets$10,087 
Liabilities
Total Level 3 liabilities$170 
 December 31, 2024
 
Level 3
Fair
Value
Predominant
Valuation
Technique(s)
Unobservable Inputs
(Dollars in millions, except for certain unobservable inputs as shown)

Type
Range
Weighted
Average(1)
Assets
Investment securities$2,344 External pricing sourcesPrice
$0.0 - $3,652.7
$99.1 
1,266 Other
Mortgage loans held-for-sale1,295 External pricing sourcesPrice
$87.8 - $104.4
$96.4 
Mortgage loans held-for-investment841 External pricing sourcesPrice
$29.2 - $100.0
$83.1 
Other assets4,816 Discounted cash flowsOAS
17 - 3,500 bps
48 bps
623 Other
Total Level 3 assets$11,185 
Liabilities
Total Level 3 liabilities$241 
(1)     Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.
Table - Assets Measured at Fair Value on a Nonrecurring Basis
We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis. The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis.
Table 13.4 - Assets Measured at Fair Value on a Non-Recurring Basis
(In millions)June 30, 2025December 31, 2024
Mortgage loans:(1)
Level 1$— $— 
Level 2470 303 
Level 3(2)
915 1,474 
Total$1,385 $1,777 
(1)Includes loans that are classified as held-for-investment where we recognize credit losses, either through an allowance for credit losses or charge-off, based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. The valuation date for certain items may occur during the period and not at period end.
(2)The predominant valuation technique used for Level 3 non-recurring fair value measurement at both June 30, 2025 and December 31, 2024 was external pricing sources. The unobservable inputs included a range of $75.4 - $104.3 and weighted average of $81.1 at June 30, 2025 and a range of $74.1 - $100.4 and weighted average of $82.3 at December 31, 2024.
Table - Fair Value of Financial Instruments
The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, and certain debt, the carrying value on our condensed consolidated balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility.
Table 13.5 - Fair Value of Financial Instruments
June 30, 2025
GAAP Measurement Category(1)
Carrying  Amount(2)
Fair Value
(In millions)Level 1Level 2Level 3
Netting 
Adjustments(3)
Total
Financial assets
Cash and cash equivalentsAmortized cost$4,267 $4,267 $— $— $— $4,267 
Securities purchased under agreements to resellAmortized cost95,451 — 103,032 — (7,581)95,451 
Investment securities:
Available-for-saleFV - OCI3,728 — 3,093 635 — 3,728 
TradingFV - NI79,122 68,572 7,423 3,127 — 79,122 
 Total investment securities82,850 68,572 10,516 3,762 — 82,850 
Mortgage loans held-for-sale
Various(4)
6,300 — 4,611 1,781 — 6,392 
Mortgage loans held-for-investment, net of allowance for credit losses
Various(5)
3,206,974 — 2,488,790 371,335 — 2,860,125 
Other assets:
Guarantee assetsFV - NI5,042 — — 5,044 — 5,044 
Derivative assets, netFV - NI886 1 5,714 73 (4,902)886 
Other assets(6)
Various2,039 — 568 1,860 — 2,428 
   Total other assets7,967 1 6,282 6,977 (4,902)8,358 
Total financial assets$3,403,809 $72,840 $2,613,231 $383,855 ($12,483)$3,057,443 
Financial liabilities
Debt:
Debt of consolidated trusts$3,155,397 $— $2,803,785 $373 $— $2,804,158 
Debt of Freddie Mac193,877 — 198,654 3,410 (7,581)194,483 
 Total debt
Various(7)
3,349,274 — 3,002,439 3,783 (7,581)2,998,641 
Other liabilities:
Guarantee obligationsAmortized cost4,866 — 95 6,379 — 6,474 
Derivative liabilities, netFV - NI967 — 5,595 68 (4,696)967 
Other liabilities(6)
FV - NI— — 195 84 — 279 
 Total other liabilities5,833 — 5,885 6,531 (4,696)7,720 
Total financial liabilities$3,355,107 $— $3,008,324 $10,314 ($12,277)$3,006,361 
December 31, 2024
 
GAAP Measurement Category(1)
Carrying  Amount(2)
Fair Value
(In millions)Level 1Level 2Level 3
Netting Adjustments(3)
Total
Financial assets
Cash and cash equivalentsAmortized cost$5,534 $5,534 $— $— $— $5,534 
Securities purchased under agreements to resellAmortized cost100,118 — 108,338 — (8,220)100,118 
Investment securities:
Available-for-saleFV - OCI3,899 — 3,316 583 — 3,899 
TradingFV - NI51,872 42,289 6,556 3,027 — 51,872 
Total investment securities55,771 42,289 9,872 3,610 — 55,771 
Mortgage loans held-for-sale
Various(4)
15,560 — 11,943 3,764 — 15,707 
Mortgage loans held-for-investment, net of allowance for credit losses
Various(5)
3,172,329 — 2,469,708 286,371 — 2,756,079 
Other assets:
Guarantee assetsFV - NI5,126 — — 5,128 — 5,128 
Derivative assets, netFV - NI501 9 6,387 94 (5,989)501 
Other assets(6)
Various1,801 — 323 1,607 — 1,930 
Total other assets7,428 9 6,710 6,829 (5,989)7,559 
Total financial assets$3,356,740 $47,832 $2,606,571 $300,574 ($14,209)$2,940,768 
Financial liabilities
Debt:
Debt of consolidated trusts$3,122,941 $— $2,699,412 $380 $— $2,699,792 
Debt of Freddie Mac182,008 — 187,287 3,283 (8,220)182,350 
Total debt
Various(7)
3,304,949 — 2,886,699 3,663 (8,220)2,882,142 
Other liabilities:
Guarantee obligationsAmortized cost5,072 — 98 6,362 — 6,460 
Derivative liabilities, netFV - NI954 — 7,116 120 (6,282)954 
Other liabilities(6)
FV - NI23 — 701 109 — 810 
Total other liabilities6,049 — 7,915 6,591 (6,282)8,224 
Total financial liabilities$3,310,998 $— $2,894,614 $10,254 ($14,502)$2,890,366 
(1)FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income.
(2)Excludes allowance for credit losses on off-balance sheet credit exposure.
(3)Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.
(4)The GAAP carrying amounts measured at lower-of-cost-or-fair-value and FV - NI were $2.4 billion and $3.9 billion as of June 30, 2025, respectively, and $4.2 billion and $11.4 billion as of December 31, 2024, respectively.
(5)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $4.4 billion as of June 30, 2025, respectively, and $3.2 trillion and $2.4 billion as of December 31, 2024, respectively.
(6)For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments.
(7)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.3 trillion and $2.7 billion as of June 30, 2025, respectively, and $3.3 trillion and $2.3 billion as of December 31, 2024, respectively.
Table - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected
The table below presents the fair value and UPB related to items for which we have elected the fair value option.
Table 13.6 - Difference Between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected(1)
June 30, 2025December 31, 2024
(In millions)Fair ValueUPBDifferenceFair ValueUPBDifference
Mortgage loans held-for-sale$3,867 $3,762 $105 $11,394 $11,470 ($76)
Mortgage loans held-for-investment4,424 4,630 (206)2,413 2,710 (297)
Debt of Freddie Mac64 72 (8)152 150 2 
Debt of consolidated trusts2,183 2,267 (84)1,689 1,817 (128)
Other assets (other liabilities)12 N/AN/A1 N/AN/A
(1)    Excludes interest-only securities related to debt of consolidated trusts and debt of Freddie Mac with a fair value of $0.4 billion and $0.5 billion as of June 30, 2025 and December 31, 2024, respectively.
The table below presents the changes in fair value related to items for which we have elected the fair value option. These amounts are included in investment gains, net, on our condensed consolidated statements of income.
Table 13.7 - Changes in Fair Value Under the Fair Value Option Election
2Q 20252Q 2024YTD 2025YTD 2024
(In millions)Gains (Losses) Gains (Losses)
Mortgage loans held-for-sale$1 ($21)$228 ($180)
Mortgage loans held-for-investment20 (26)68 (57)
Debt of Freddie Mac20 4 31 5 
Debt of consolidated trusts(5)(3)(53)6 
Other assets/other liabilities25 99 125 242