v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have two reportable business segments, which are based on the type of business activities each perform: Single-
Family and Multifamily. Results of our two business segments are intended to reflect each segment as if it were a stand-
alone business. Our Acting Chief Executive Officer is the chief operating decision maker (“CODM”) for our two
reportable business segments. The CODM uses both net revenues and income before federal income taxes, on a
quarterly basis, to assess the financial performance of the segments and for purposes of allocating resources. The
accounting policies of our two reportable business segments are the same as those described in “Note 1, Summary of
Significant Accounting Policies.”
The section below provides a discussion of our reportable business segments.
Single-Family Business Segment
•Works with lenders to acquire and securitize single-family mortgage loans delivered to us by lenders into
Fannie Mae MBS.
•Issues structured Fannie Mae MBS backed by single-family mortgage assets and provides other services to
single-family lenders.
•Prices and manages the credit risk on loans in our single-family guaranty book of business, which includes
establishing underwriting and servicing standards. Also enters into transactions that transfer a portion of the
credit risk on some of the loans in our single-family guaranty book of business to third parties.
•Works to reduce costs of defaulted single-family loans, including through forbearance plans, home retention
solutions, foreclosure alternatives, management of foreclosures and our REO inventory, selling nonperforming
loans and pursuing contractual remedies from lenders, servicers and providers of credit enhancements.
Multifamily Business Segment
•Works with lenders to acquire and securitize multifamily mortgage loans delivered to us by lenders into Fannie
Mae MBS.
•Issues structured multifamily Fannie Mae MBS through our Fannie Mae Guaranteed Multifamily Structures
(“Fannie Mae GeMSTM”) program and provides other services to our multifamily lenders.
•Prices and manages the credit risk on loans in our multifamily guaranty book of business, which includes
establishing underwriting and servicing standards. Lenders retain a portion of the credit risk in most multifamily
transactions.
•Enters into additional transactions that transfer a portion of the credit risk on some of the loans in our
multifamily guaranty book of business to third parties.
•Works to reduce costs of defaulted multifamily loans, including through loss mitigation strategies such as
forbearance and modification, management of foreclosures and our REO inventory, and pursuing contractual
remedies from lenders, servicers, borrowers, sponsors, and providers of credit enhancements.
Segment Allocations and Results
The majority of our assets, revenues and expenses are directly associated with each respective business segment and
are included in determining its asset balance and operating results. Those assets, revenues and expenses that are not
directly attributable to a particular business segment are allocated based on the size of each segment’s guaranty book
of business. As a result, the sum of each income statement line item for the two reportable segments is equal to that
same income statement line item for the consolidated entity. In addition, the sum of the total assets for the two
reportable segments is equal to the total assets of the consolidated entity.
The substantial majority of the gains and losses associated with our risk management derivatives, including the impact
of hedge accounting, are allocated to our Single-Family business segment. In the current period, there were no
significant changes to our segment allocation methodology.
The following table displays total assets by segment.
As of December 31,
2025
2024
(Dollars in millions)
Single-Family
$3,757,261
$3,823,840
Multifamily
560,277
525,891
Total assets
$4,317,538
$4,349,731
We operate our business solely in the United States and its territories, and accordingly, we generate no revenue from
and have no long-lived assets, other than financial instruments, in geographic locations other than the United States
and its territories.
The following tables display our segment results.
For the Year Ended December 31, 2025
Single-Family
Multifamily
Total
(Dollars in millions)
Net interest income(1)
$23,893
$4,715
$28,608
Fee and other income
281
75
356
Net revenues
24,174
4,790
28,964
Fair value gains (losses), net(2)
(16)
106
90
Investment gains (losses), net(3)
94
11
105
Other gains (losses), net
78
117
195
(Provision) benefit for credit losses(4)
(1,323)
(283)
(1,606)
Non-interest expense:
Administrative expenses(5)
(2,918)
(661)
(3,579)
Legislative assessments(6)
(3,688)
(61)
(3,749)
Credit enhancement expense(7)
(1,343)
(313)
(1,656)
Other income (expense), net(8)
(606)
20
(586)
Total non-interest expense
(8,555)
(1,015)
(9,570)
Income before federal income taxes
14,374
3,609
17,983
Provision for federal income taxes
(2,958)
(661)
(3,619)
Net income
$11,416
$2,948
$14,364
For the Year Ended December 31, 2024
Single-Family
Multifamily
Total
(Dollars in millions)
Net interest income(1)
$24,130
$4,618
$28,748
Fee and other income
245
76
321
Net revenues
24,375
4,694
29,069
Fair value gains (losses), net(2)
1,745
76
1,821
Investment gains (losses), net(3)
(99)
3
(96)
Other gains (losses), net
1,646
79
1,725
(Provision) benefit for credit losses(4)
938
(752)
186
Non-interest expense:
Administrative expenses(5)
(3,000)
(619)
(3,619)
Legislative assessments(6)
(3,719)
(47)
(3,766)
Credit enhancement expense(7)
(1,349)
(292)
(1,641)
Other income (expense), net(8)
(771)
86
(685)
Total non-interest expense
(8,839)
(872)
(9,711)
Income before federal income taxes
18,120
3,149
21,269
Provision for federal income taxes
(3,690)
(601)
(4,291)
Net income
$14,430
$2,548
$16,978
For the Year Ended December 31, 2023
Single-Family
Multifamily
Total
(Dollars in millions)
Net interest income(1)
$24,229
$4,544
$28,773
Fee and other income
205
70
275
Net revenues
24,434
4,614
29,048
Fair value gains (losses), net(2)
1,231
73
1,304
Investment gains (losses), net(3)
(232)
(33)
(265)
Other gains (losses), net
999
40
1,039
(Provision) benefit for credit losses(4)
2,165
(495)
1,670
Non-interest expense:
Administrative expenses(5)
(2,858)
(587)
(3,445)
Legislative assessments(6)
(3,699)
(46)
(3,745)
Credit enhancement expense(7)
(1,281)
(231)
(1,512)
Other income (expense), net(8)
(970)
(129)
(1,099)
Total non-interest expense
(8,808)
(993)
(9,801)
Income before federal income taxes
18,790
3,166
21,956
Provision for federal income taxes
(3,935)
(613)
(4,548)
Net income
$14,855
$2,553
$17,408
(1)Net interest income primarily consists of guaranty fees received as compensation for assuming the credit risk on loans underlying Fannie
Mae MBS held by third parties for the respective business segment, and the difference between the interest income earned on the
respective business segment’s assets in our retained mortgage portfolio and our corporate liquidity portfolio and the interest expense
associated with the debt funding those assets. Revenues from single-family guaranty fees include revenues generated by the 10 basis
point increase in guaranty fees pursuant to the TCCA, the incremental revenue from which is paid to Treasury and not retained by us. Also
includes yield maintenance revenue we recognized on the prepayment of multifamily loans.
(2)Single-family fair value gains (losses) primarily consist of fair value gains and losses on risk management and mortgage commitment
derivatives, trading securities, fair value option debt, and other financial instruments associated with our single-family guaranty book of
business. Multifamily fair value gains (losses) primarily consist of fair value gains and losses on MBS commitment derivatives, trading
securities and other financial instruments associated with our multifamily guaranty book of business.
(3)Single-family investment gains (losses) primarily consist of gains and losses on the sale of mortgage assets. Multifamily investment gains
(losses) primarily consist of gains and losses on resecuritization activity.
(4)(Provision) benefit for credit losses is based on loans underlying the segment’s guaranty book of business.
(5)Consists of salaries and employee benefits and professional services, technology and occupancy expenses.
(6)For single-family, consists of the portion of our single-family guaranty fees that is paid to Treasury pursuant to the TCCA, affordable
housing allocations and FHFA assessments. For multifamily, consists of affordable housing allocations and FHFA assessments.
(7)Single-family credit enhancement expense consists of costs associated with our freestanding credit enhancements, which include primarily
costs associated with our CIRTTM, CAS and enterprise-paid mortgage insurance (“EPMI”) programs. Multifamily credit enhancement
expense primarily consists of costs associated with our Multifamily CIRTTM (“MCIRTTM”) and Multifamily CAS (“MCASTM“) programs as well
as amortization expense for certain lender risk-sharing programs. Excludes CAS transactions accounted for as debt instruments and credit
risk transfer programs accounted for as derivative instruments.
(8)Primarily consists of foreclosed property income (expense), change in the expected benefits from our freestanding credit enhancements
and gains (losses) from partnership investments.