•housing partnerships that are established to finance the acquisition, construction, development or rehabilitation

These interests may include guarantees to the VIE on behalf of the holders of the securities issued by the VIE and/or

investments in the securities issued by VIEs, such as Fannie Mae MBS created pursuant to our securitization

transactions. We consolidate the substantial majority of our single-class securitization trusts because our role as

guarantor and master servicer provides us with the power to direct activities (primarily the servicing of mortgage loans)

that impact the credit risk to which we are exposed. In contrast, we do not consolidate single-class securitization trusts

when other organizations have the power to direct these activities unless we have the unilateral ability to dissolve the

trust. We also do not consolidate our resecuritization trusts unless we have the unilateral ability to dissolve the trust. We

may include securities issued by Freddie Mac in some of our resecuritization trusts. The mortgage loans that serve as

collateral for Freddie Mac-issued securities are not held in trusts that are consolidated by Fannie Mae.

We create single-class securitization trusts to issue single-class Fannie Mae MBS that evidence an undivided interest in

the mortgage loans held in the trust. Investors in Fannie Mae MBS receive principal and interest payments in proportion

to their percentage ownership of the Fannie Mae MBS issued. We guarantee to each single-class securitization trust

that we will supplement amounts received by the securitization trust as required to permit timely payments of principal

and interest on the related Fannie Mae MBS. This guaranty exposes us to credit losses on the loans underlying Fannie

Single-class securitization trusts are used for lender swap and portfolio securitization transactions. We consolidate

single-class securitization trusts that are created under these programs when our role as master servicer provides us

with the power to direct activities, such as the servicing of the mortgage loans, that impact the credit risk to which we

are exposed. In contrast, we do not consolidate single-class securitization trusts when other organizations have the

power to direct these activities (for example, when the mortgage loan collateral is subject to a Federal Housing

Fannie Mae single-class resecuritization trusts, which include Fannie Megas® and Supers®, are created by depositing

MBS into a new securitization trust for the purpose of aggregating multiple mortgage-related securities (generally

Fannie Mae MBS, Freddie Mac MBS or combinations of both) into one combined security. Fannie Mae multi-class

resecuritization trusts are trusts we create to issue multi-class Fannie Mae structured securities, including real-estate

mortgage investment conduits (“REMIC”) and stripped mortgage-backed securities (“SMBS”), in which the cash flows of

the underlying mortgage assets are divided, creating several classes of securities, each of which represents a beneficial

We guaranty to each Fannie Mae resecuritization trust that we will supplement amounts received by the trust as

required to permit timely principal and interest payments on the related Fannie Mae security. As the underlying collateral

may have been previously guaranteed by Fannie Mae, we are only exposed to incremental credit risk when we guaranty

the timely payment of principal and interest on underlying securities that were issued by Freddie Mac and were not

previously guaranteed by us. We may also be exposed to prepayment risk via our ownership of securities issued by

these trusts. Additionally, we earn a fee for assisting the lenders and dealers with the design and issuance of these

We do not have any incremental rights or powers related to resecuritization trusts that would enable us to direct any

activities of the underlying trust. As a result, we have concluded that we are not the primary beneficiary of, and therefore

do not consolidate, our resecuritization trusts unless we have the unilateral right to dissolve the trust. We have this right

when we hold 100% of the beneficial interests issued by the resecuritization trust.

Our LIHTC investments primarily represent limited partnership interests in entities that have been organized by a fund

manager who acts as the general partner. These LIHTC partnerships seek out equity investments in LIHTC operating

partnerships that have been established to identify, develop and operate affordable multifamily housing that is leased to

qualifying residential tenants. Fannie Mae does not consolidate these entities because our limited partnership interest

Special Purpose Vehicles Associated with Our Credit Risk Transfer Programs

We transfer mortgage credit risk to investors through both Connecticut Avenue Securities (“CAS”) special purpose

vehicles (“SPVs”) and Multifamily Connecticut Avenue Securities (“MCAS”) SPVs. CAS and MCAS SPVs are separate

legal entities that issue notes that are fully collateralized by cash deposited into a collateral account held by the

respective CAS or MCAS SPV and is invested in short-term highly rated investments. To the extent that collateral held

by the CAS or MCAS SPV and the earnings thereon are insufficient relative to the payments due to holders of the CAS

or MCAS notes, we may be required to make payments to the CAS or MCAS SPVs. The CAS and MCAS SPV qualify

as VIEs. We do not have the power to direct significant activities of the CAS or MCAS SPVs while the CAS and MCAS

SPVs are outstanding, and, therefore, we do not consolidate CAS or MCAS SPVs.

The following table displays our maximum exposure to loss as a result of our involvement with unconsolidated VIEs and

Our maximum exposure to loss generally represents the greater of our carrying amount related to our involvement with

unconsolidated securitization and resecuritization trusts or the UPB of the assets covered by our guaranty. Our

involvement in unconsolidated resecuritization trusts may give rise to additional exposure to loss depending on the type

of resecuritization trust. Fannie Mae resecuritization trusts that are backed entirely by Fannie Mae MBS are not

consolidated and do not give rise to any additional exposure to loss as we already consolidate the underlying collateral.

In contrast, Fannie Mae resecuritization trusts that are backed in whole or in part by Freddie Mac securities may

increase our exposure to loss to the extent that we are providing a guaranty for the timely payment and interest on the

underlying Freddie Mac securities that we have not previously guaranteed. Our maximum exposure to loss for these

unconsolidated trusts is measured by the amount of Freddie Mac securities that are held in these resecuritization trusts.

While our total assets for unconsolidated trusts are measured based on the aggregate value of the trusts, our maximum


	As of
		December 31, 2025		December 31, 2024
		Total Assets	Maximum Exposure to Loss	Total Assets	Maximum Exposure to Loss
	(Dollars in millions)
Securitization and resecuritization trusts(1)		$535,491	$199,010	$203,841	$203,316
Credit risk transfer SPVs(2)		22,835	22,847	23,222	23,224
LIHTC investments(3)		6,973	750	6,428	669

(1)The net carrying amount of securitization and resecuritization trusts were $14.1 billion and $1.2 billion as of December 31, 2025 and

December 31, 2024, respectively, which are primarily classified in “Investments in securities, at fair value” in our consolidated balance

(2)Maximum exposure to loss of credit risk transfer SPVs consists of the UPB and accrued interest payable of obligations issued by

Connecticut Avenue Securities® ("CAS") and Multifamily Connecticut Avenue Securities® ("MCAS") SPVs.

(3)The net carrying value of LIHTC investments that represent VIEs was $750 million and $669 million as of December 31, 2025 and

December 31, 2024, respectively. The net carrying value of all LIHTC investments was $2.5 billion and $2.0 billion as of December 31,

2025 and December 31, 2024, respectively. In our consolidated balance sheets, the LIHTC investment assets and liabilities are classified

as “Other assets” and “Other liabilities,” respectively.

As of December 31, 2025, the UPB of our multifamily loan portfolio was $525.0 billion. As our lending relationship does

not provide us with a controlling financial interest in the borrower entity for loans in our multifamily loan portfolio, we do

not consolidate these borrowers regardless of their status as either a VIE or a voting interest entity. We have excluded

these entities from our VIE disclosures; however, the disclosures we have provided in “Note 4, Mortgage Loans,” “Note

5, Allowance for Credit Losses” and “Note 7, Financial Guarantees” with respect to this population are consistent with

the FASB’s stated objectives for the disclosures related to unconsolidated VIEs.

We issue single-class Fannie Mae MBS through portfolio securitization transactions by transferring pools of mortgage

loans or mortgage-related securities to one or more trusts or special purpose entities. For the years ended December

31, 2025, 2024 and 2023, the UPB of portfolio securitizations was $140.6 billion, $139.7 billion and $131.6 billion,

respectively. We consolidate the substantial majority of our portfolio securitization trusts.

We retain interests from the transfer and sale of mortgage-related securities to unconsolidated single-class portfolio

securitization trusts and unconsolidated single class and multi-class portfolio resecuritization trusts. As of December 31,

2025, the UPB of retained interests was $1.0 billion and its related fair value was $1.3 billion. As of December 31, 2024,

the UPB of retained interests was $661 million and its related fair value was $1.0 billion. For the years ended December

31, 2025, 2024 and 2023, the principal, interest and other fees received on retained interests was $242 million, $253