Fair Value Disclosures (Tables)
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9 Months Ended |
Sep. 30, 2025 |
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| Fair Value Disclosures [Abstract] |
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| 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 | | | | | | | | | | | | | | | | | | | | | | | September 30, 2025 | (In millions) | | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total | Assets: | | | | | | | | Investment securities: | | | | | | | | Available-for-sale | | $— | | $2,922 | | $719 | | $— | | $3,641 | | | Trading: | | | | | | | | Mortgage-related securities | | — | | 7,318 | | 3,067 | | — | | 10,385 | | | Non-mortgage-related securities | | 69,582 | | 247 | | — | | — | | 69,829 | | | Total trading securities | | 69,582 | | 7,565 | | 3,067 | | — | | 80,214 | | | Total investment securities | | 69,582 | | 10,487 | | 3,786 | | — | | 83,855 | | | Mortgage loans held-for-sale | | — | | — | | — | | — | | — | | | Mortgage loans held-for-investment | | — | | 6,030 | | 1,077 | | — | | 7,107 | | | Other assets: | | | | | | | | Guarantee assets | | — | | — | | 4,871 | | — | | 4,871 | | | Derivative assets, net | | 10 | | 5,211 | | 79 | | (4,342) | | 958 | | | Other assets | | — | | — | | 219 | | — | | 219 | | | Total other assets | | 10 | | 5,211 | | 5,169 | | (4,342) | | 6,048 | | | Total assets carried at fair value on a recurring basis | | $69,592 | | $21,728 | | $10,032 | | ($4,342) | | $97,010 | | | Liabilities: | | | | | | | | Debt: | | | | | | | | Debt of consolidated trusts | | $— | | $5,469 | | $25 | | $— | | $5,494 | | | Debt of Freddie Mac | | — | | 130 | | 73 | | — | | 203 | | | Total debt | | — | | 5,599 | | 98 | | — | | 5,697 | | | Other liabilities: | | | | | | | | Derivative liabilities, net | | 1 | | 5,038 | | 49 | | (4,359) | | 729 | | | | | | | | | | | | | | | | | Total liabilities carried at fair value on a recurring basis | | $1 | | $10,637 | | $147 | | ($4,359) | | $6,426 | |
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | (In millions) | | Level 1 | Level 2 | Level 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 securities | | 42,289 | | 425 | | — | | — | | 42,714 | | | Total trading securities | | 42,289 | | 6,556 | | 3,027 | | — | | 51,872 | | | Total investment securities | | 42,289 | | 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 assets | | 9 | | 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.
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| 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q 2025 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | | | | | | | | | | | | | | Balance at July 1, 2025 | | $3,762 | | | $— | | | $984 | | | $5,341 | | | $170 | | | | | | | | | | | | | | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | | | | | | | | | | | | | | Included in earnings | | (88) | | | — | | | (66) | | | 26 | | | (14) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 4 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 248 | | | — | | | — | | | (7) | | | — | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 50 | | | 12 | | | | | | | | | | | | | | | | | Sales | | — | | | — | | | — | | | (6) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (63) | | | — | | | (14) | | | (235) | | | (21) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | — | | | 279 | | | — | | | — | | | | | | | | | | | | | | | | | Transfers out of Level 3 | | (77) | | | — | | | (106) | | | — | | | — | | | | | | | | | | | | | | | | | Balance at September 30, 2025 | | $3,786 | | | $— | | | $1,077 | | | $5,169 | | | $147 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | | $16 | | | $— | | | ($67) | | | $26 | | | ($14) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | | 3 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD 2025 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
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 | | (148) | | | 3 | | | (61) | | | 172 | | | (81) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 16 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 460 | | | 32 | | | — | | | (17) | | | — | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 359 | | | 15 | | | | | | | | | | | | | | | | | Sales | | — | | | — | | | — | | | (14) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (152) | | | — | | | (83) | | | (770) | | | (27) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | — | | | 581 | | | — | | | 17 | | | | | | | | | | | | | | | | Transfers out of Level 3(3) | | — | | | (1,330) | | | (201) | | | — | | | (18) | | | | | | | | | | | | | | | | | Balance at September 30, 2025 | | $3,786 | | | $— | | | $1,077 | | | $5,169 | | | $147 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | | $189 | | | $— | | | ($69) | | | $172 | | | ($81) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | | 13 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q 2024 | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | Balance at July 1, 2024 | | $3,612 | | | $627 | | | $776 | | | $5,457 | | | $577 | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | Included in earnings | | 34 | | | 28 | | | 10 | | | 136 | | | (55) | | | | Included in other comprehensive income | | 11 | | | — | | | — | | | — | | | — | | | | Purchases | | 219 | | | 356 | | | — | | | 6 | | | 3 | | | | Issues | | — | | | — | | | — | | | 163 | | | 15 | | | | Sales | | — | | | (276) | | | — | | | (6) | | | — | | | | Settlements, net | | (50) | | | — | | | (22) | | | (251) | | | (4) | | | | Transfers into Level 3 | | — | | | — | | | 161 | | | — | | | — | | | | Transfers out of Level 3 | | (10) | | | — | | | — | | | — | | | (356) | | | | Balance at September 30, 2024 | | $3,816 | | | $735 | | | $925 | | | $5,505 | | | $180 | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | | $156 | | | $18 | | | $12 | | | $132 | | | ($58) | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | | 9 | | | — | | | — | | | — | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD 2024 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | | | | | | | | | | | | | | Balance at January 1, 2024 | | $3,449 | | | $896 | | | $473 | | | $5,519 | | | $496 | | | | | | | | | | | | | | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | | | | | | | | | | | | | | Included in earnings | | (183) | | | 22 | | | (42) | | | 278 | | | (41) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 5 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 714 | | | 1,038 | | | — | | | (6) | | | 9 | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 414 | | | 54 | | | | | | | | | | | | | | | | | Sales | | — | | | (1,048) | | | — | | | (13) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (159) | | | (1) | | | (76) | | | (687) | | | (13) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | 35 | | | 592 | | | — | | | — | | | | | | | | | | | | | | | | | Transfers out of Level 3 | | (10) | | | (207) | | | (22) | | | — | | | (325) | | | | | | | | | | | | | | | | | Balance at September 30, 2024 | | $3,816 | | | $735 | | | $925 | | | $5,505 | | | $180 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | | $185 | | | $19 | | | ($41) | | | $273 | | | ($49) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | | 4 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
(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 September 30, 2025 and September 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.
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| 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q 2025 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | | | | | | | | | | | | | | Balance at July 1, 2025 | | $3,762 | | | $— | | | $984 | | | $5,341 | | | $170 | | | | | | | | | | | | | | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | | | | | | | | | | | | | | Included in earnings | | (88) | | | — | | | (66) | | | 26 | | | (14) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 4 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 248 | | | — | | | — | | | (7) | | | — | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 50 | | | 12 | | | | | | | | | | | | | | | | | Sales | | — | | | — | | | — | | | (6) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (63) | | | — | | | (14) | | | (235) | | | (21) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | — | | | 279 | | | — | | | — | | | | | | | | | | | | | | | | | Transfers out of Level 3 | | (77) | | | — | | | (106) | | | — | | | — | | | | | | | | | | | | | | | | | Balance at September 30, 2025 | | $3,786 | | | $— | | | $1,077 | | | $5,169 | | | $147 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | | $16 | | | $— | | | ($67) | | | $26 | | | ($14) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | | 3 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD 2025 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
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 | | (148) | | | 3 | | | (61) | | | 172 | | | (81) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 16 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 460 | | | 32 | | | — | | | (17) | | | — | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 359 | | | 15 | | | | | | | | | | | | | | | | | Sales | | — | | | — | | | — | | | (14) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (152) | | | — | | | (83) | | | (770) | | | (27) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | — | | | 581 | | | — | | | 17 | | | | | | | | | | | | | | | | Transfers out of Level 3(3) | | — | | | (1,330) | | | (201) | | | — | | | (18) | | | | | | | | | | | | | | | | | Balance at September 30, 2025 | | $3,786 | | | $— | | | $1,077 | | | $5,169 | | | $147 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | | $189 | | | $— | | | ($69) | | | $172 | | | ($81) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | | 13 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q 2024 | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | Balance at July 1, 2024 | | $3,612 | | | $627 | | | $776 | | | $5,457 | | | $577 | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | Included in earnings | | 34 | | | 28 | | | 10 | | | 136 | | | (55) | | | | Included in other comprehensive income | | 11 | | | — | | | — | | | — | | | — | | | | Purchases | | 219 | | | 356 | | | — | | | 6 | | | 3 | | | | Issues | | — | | | — | | | — | | | 163 | | | 15 | | | | Sales | | — | | | (276) | | | — | | | (6) | | | — | | | | Settlements, net | | (50) | | | — | | | (22) | | | (251) | | | (4) | | | | Transfers into Level 3 | | — | | | — | | | 161 | | | — | | | — | | | | Transfers out of Level 3 | | (10) | | | — | | | — | | | — | | | (356) | | | | Balance at September 30, 2024 | | $3,816 | | | $735 | | | $925 | | | $5,505 | | | $180 | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | | $156 | | | $18 | | | $12 | | | $132 | | | ($58) | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | | 9 | | | — | | | — | | | — | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD 2024 | | | | | | | | | | | | | | | | (In millions) | | Investment Securities | | Mortgage Loans Held-for-Sale | | Mortgage Loans Held-for-Investment | | Other
Assets | | Total
Liabilities | | | | | | | | | | | | | | | | Balance at January 1, 2024 | | $3,449 | | | $896 | | | $473 | | | $5,519 | | | $496 | | | | | | | | | | | | | | | | Total realized/unrealized gains/losses(1) | | | | | | | | | | | | | | | | | | | | | | | | | | Included in earnings | | (183) | | | 22 | | | (42) | | | 278 | | | (41) | | | | | | | | | | | | | | | | | Included in other comprehensive income | | 5 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Purchases | | 714 | | | 1,038 | | | — | | | (6) | | | 9 | | | | | | | | | | | | | | | | | Issues | | — | | | — | | | — | | | 414 | | | 54 | | | | | | | | | | | | | | | | | Sales | | — | | | (1,048) | | | — | | | (13) | | | — | | | | | | | | | | | | | | | | | Settlements, net | | (159) | | | (1) | | | (76) | | | (687) | | | (13) | | | | | | | | | | | | | | | | | Transfers into Level 3 | | — | | | 35 | | | 592 | | | — | | | — | | | | | | | | | | | | | | | | | Transfers out of Level 3 | | (10) | | | (207) | | | (22) | | | — | | | (325) | | | | | | | | | | | | | | | | | Balance at September 30, 2024 | | $3,816 | | | $735 | | | $925 | | | $5,505 | | | $180 | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | | $185 | | | $19 | | | ($41) | | | $273 | | | ($49) | | | | | | | | | | | | | | | | Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | | 4 | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
(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 September 30, 2025 and September 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
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| 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2025 | | | | 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 | | $2,507 | | | External pricing sources | | Price | | $0.0 - $3,529.4 | | $85.0 | | | | 1,279 | | | Other | | | | | | | | | | | | | | | | | | | Mortgage loans held-for-investment | | 1,077 | | | External pricing sources | | Price | | $21.7 - $106.1 | | $87.0 | | | Other assets | | 4,565 | | | Discounted cash flows | | OAS | | 17 - 1,660 bps | | 49 bps | | | 604 | | | Other | | | | | | | | Total Level 3 assets | | $10,032 | | | | | | | | | | | Liabilities | | | | | | | | | | | | Total Level 3 liabilities | | $147 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 sources | | Price | | $0.0 - $3,652.7 | | $99.1 | | | | 1,266 | | | Other | | | | | | | | Mortgage loans held-for-sale | | 1,295 | | | External pricing sources | | Price | | $87.8 - $104.4 | | $96.4 | | | Mortgage loans held-for-investment | | 841 | | | External pricing sources | | Price | | $29.2 - $100.0 | | $83.1 | | | Other assets | | 4,816 | | | Discounted cash flows | | OAS | | 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.
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| 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) | | September 30, 2025 | December 31, 2024 | Mortgage loans:(1) | | | | | Level 1 | | $— | | $— | | | Level 2 | | 241 | | 303 | | Level 3(2) | | 989 | | 1,474 | | | Total | | $1,230 | | $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 September 30, 2025 and December 31, 2024 was external pricing sources. The unobservable inputs included a range of $19.7 - $105.0 and weighted average of $83.5 at September 30, 2025 and a range of $74.1 - $100.4 and weighted average of $82.3 at December 31, 2024.
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| 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2025 | | | GAAP Measurement Category(1) | Carrying Amount(2) | | Fair Value | | (In millions) | | | Level 1 | | Level 2 | | Level 3 | | Netting Adjustments(3) | | Total | | Financial assets | | | | | | | | | | | | | | | Cash and cash equivalents | | Amortized cost | $4,624 | | | $4,624 | | | $— | | | $— | | | $— | | | $4,624 | | | Securities purchased under agreements to resell | | Amortized cost | 86,334 | | | — | | | 91,795 | | | — | | | (5,461) | | | 86,334 | | | Investment securities: | | | | | | | | | | | | | | | Available-for-sale | | FV - OCI | 3,641 | | | — | | | 2,922 | | | 719 | | | — | | | 3,641 | | | Trading | | FV - NI | 80,214 | | | 69,582 | | | 7,565 | | | 3,067 | | | — | | | 80,214 | | | Total investment securities | | | 83,855 | | | 69,582 | | | 10,487 | | | 3,786 | | | — | | | 83,855 | | | Mortgage loans held-for-sale | | Various(4) | 1,807 | | | — | | | 266 | | | 1,629 | | | — | | | 1,895 | | | Mortgage loans held-for-investment, net of allowance for credit losses | | Various(5) | 3,248,704 | | | — | | | 2,571,055 | | | 373,346 | | | — | | | 2,944,401 | | | Other assets: | | | | | | | | | | | | | | | Guarantee assets | | FV - NI | 4,871 | | | — | | | — | | | 4,873 | | | — | | | 4,873 | | | Derivative assets, net | | FV - NI | 958 | | | 10 | | | 5,211 | | | 79 | | | (4,342) | | | 958 | | Other assets(6) | | Various | 2,442 | | | — | | | 605 | | | 2,275 | | | — | | | 2,880 | | | Total other assets | | | 8,271 | | | 10 | | | 5,816 | | | 7,227 | | | (4,342) | | | 8,711 | | | Total financial assets | | | $3,433,595 | | | $74,216 | | | $2,679,419 | | | $385,988 | | | ($9,803) | | | $3,129,820 | | | Financial liabilities | | | | | | | | | | | | | | | Debt: | | | | | | | | | | | | | | | Debt of consolidated trusts | | | $3,175,464 | | | $— | | | $2,867,883 | | | $379 | | | $— | | | $2,868,262 | | | Debt of Freddie Mac | | | 203,609 | | | — | | | 206,304 | | | 3,472 | | | (5,461) | | | 204,315 | | | Total debt | | Various(7) | 3,379,073 | | | — | | | 3,074,187 | | | 3,851 | | | (5,461) | | | 3,072,577 | | | Other liabilities: | | | | | | | | | | | | | | | Guarantee obligations | | Amortized cost | 4,680 | | | — | | | 93 | | | 6,167 | | | — | | | 6,260 | | | Derivative liabilities, net | | FV - NI | 729 | | | 1 | | | 5,038 | | | 49 | | | (4,359) | | | 729 | | Other liabilities(6) | | FV - NI | — | | | — | | | 157 | | | 85 | | | — | | | 242 | | | Total other liabilities | | | 5,409 | | | 1 | | | 5,288 | | | 6,301 | | | (4,359) | | | 7,231 | | | Total financial liabilities | | | $3,384,482 | | | $1 | | | $3,079,475 | | | $10,152 | | | ($9,820) | | | $3,079,808 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | | GAAP Measurement Category(1) | Carrying Amount(2) | | Fair Value | | (In millions) | | | Level 1 | | Level 2 | | Level 3 | | Netting Adjustments(3) | | Total | | Financial assets | | | | | | | | | | | | | | | Cash and cash equivalents | | Amortized cost | $5,534 | | | $5,534 | | | $— | | | $— | | | $— | | | $5,534 | | | Securities purchased under agreements to resell | | Amortized cost | 100,118 | | | — | | | 108,338 | | | — | | | (8,220) | | | 100,118 | | | Investment securities: | | | | | | | | | | | | | | | Available-for-sale | | FV - OCI | 3,899 | | | — | | | 3,316 | | | 583 | | | — | | | 3,899 | | | Trading | | FV - NI | 51,872 | | | 42,289 | | | 6,556 | | | 3,027 | | | — | | | 51,872 | | | Total investment securities | | | 55,771 | | | 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 assets | | FV - NI | 5,126 | | | — | | | — | | | 5,128 | | | — | | | 5,128 | | | Derivative assets, net | | FV - NI | 501 | | | 9 | | | 6,387 | | | 94 | | | (5,989) | | | 501 | | Other assets(6) | | Various | 1,801 | | | — | | | 323 | | | 1,607 | | | — | | | 1,930 | | | Total other assets | | | 7,428 | | | 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 Mac | | | 182,008 | | | — | | | 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 obligations | | Amortized cost | 5,072 | | | — | | | 98 | | | 6,362 | | | — | | | 6,460 | | | Derivative liabilities, net | | FV - NI | 954 | | | — | | | 7,116 | | | 120 | | | (6,282) | | | 954 | | Other liabilities(6) | | FV - NI | 23 | | | — | | | 701 | | | 109 | | | — | | | 810 | | | Total other liabilities | | | 6,049 | | | — | | | 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 $1.8 billion and $0.0 billion as of September 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 $7.1 billion as of September 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 $3.4 trillion and $5.7 billion as of September 30, 2025, respectively, and $3.3 trillion and $2.3 billion as of December 31, 2024, respectively.
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| 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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2025 | | December 31, 2024 | | (In millions) | | Fair Value | UPB | Difference | | Fair Value | UPB | Difference | | Mortgage loans held-for-sale | | $— | | $— | | $— | | | $11,394 | | $11,470 | | ($76) | | | Mortgage loans held-for-investment | | 7,107 | | 7,234 | | (127) | | | 2,413 | | 2,710 | | (297) | | | Debt of Freddie Mac | | 52 | | 50 | | 2 | | | 152 | | 150 | | 2 | | | Debt of consolidated trusts | | 5,144 | | 5,214 | | (70) | | | 1,689 | | 1,817 | | (128) | | | Other assets (other liabilities) | | — | | N/A | N/A | | 1 | | N/A | N/A |
(1) Excludes interest-only securities related to debt of consolidated trusts and debt of Freddie Mac with a fair value of $0.5 billion as of both September 30, 2025 and December 31, 2024. 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 | | | | | | | | | | | | | | | | | | | | | | | 3Q 2025 | 3Q 2024 | | YTD 2025 | YTD 2024 | | (In millions) | | Gains (Losses) | | Gains (Losses) | | Mortgage loans held-for-sale | | $9 | | $267 | | | $237 | | $87 | | | Mortgage loans held-for-investment | | (5) | | 53 | | | 63 | | (4) | | | Debt of Freddie Mac | | 15 | | 13 | | | 46 | | 18 | | | Debt of consolidated trusts | | (7) | | (6) | | | (59) | | — | | | Other assets/other liabilities | | 2 | | 230 | | | 127 | | 472 | |
Changes in fair value attributable to instrument-specific credit risk were not material for the periods presented for assets or liabilities for which we elected the fair value option.
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