Regulatory Capital Requirements

The enterprise regulatory capital framework went into effect in February 2021; however, we are not required to hold

capital according to the framework’s requirements until the date of termination of our conservatorship, or such later date

as may be ordered by FHFA.

The enterprise regulatory capital framework establishes requirements under the standardized approach related to the

amount and form of capital we must hold, including supplemental leverage and risk-based minimum capital

requirements based largely on definitions of capital used in U.S. banking regulators’ regulatory capital framework.

Additionally, the enterprise regulatory capital framework includes a requirement that we hold prescribed capital buffers

that can be drawn down in periods of financial stress. In general, once we are required to be in compliance with the

capital buffers, if our capital levels fall below the prescribed buffer amounts, we must restrict capital distributions, such

as stock repurchases and dividends, as well as discretionary bonus payments to executives, until the buffer amounts

Risk-Based Capital Requirements

Under the risk-based capital requirements, we must maintain common equity tier 1 capital, tier 1 capital, and adjusted

total capital equal to at least 4.5%, 6.0%, and 8.0%, respectively, of risk-weighted assets. We are required to hold

common equity tier 1 capital that exceeds the risk-based capital requirements by at least the amount of the prescribed

capital conservation buffer amount (“PCCBA”) in order to avoid limitations on capital distributions and discretionary

bonus payments tied to executive compensation. The PCCBA is comprised of the following three components:

•A stability capital buffer, which is based on our share of mortgage debt outstanding. The calculation to

determine the buffer is made on annual basis. The stability capital buffer will be updated based on this

calculation with an effective date that depends on whether it increases or decreases relative to the previously

•A stress capital buffer, which is calculated by multiplying prescribed factors by adjusted total assets as of the

last day of the previous calendar quarter.

•A countercyclical capital buffer, which is currently set at 0.0% of our adjusted total assets. FHFA indicated in the

adopting release for the enterprise regulatory capital framework rule that it will adjust the countercyclical capital

buffer taking into account the macro-financial environment in which we operate, such that the buffer would be

deployed only when excess aggregate credit growth is judged to be associated with a build-up of system-wide

Leverage Capital Requirements

Under the leverage capital requirement, we must maintain tier 1 capital equal to at least 2.5% of adjusted total assets.

The prescribed leverage buffer amount (“PLBA”) represents the amount of tier 1 capital we are required to hold above

the minimum tier 1 leverage capital requirement in order to avoid limitations on capital distributions and discretionary

bonus payments tied to executive compensation. Pursuant to the enterprise regulatory capital framework, the PLBA is

50% of the stability capital buffer.

The table below sets forth information about our capital requirements under the standardized approach of the enterprise

regulatory capital framework.


Capital Metrics under the Enterprise Regulatory Capital Framework as of December 31, 2025
(Dollars in billions)
Adjusted total assets		$4,423
Risk-weighted assets		1,411
		Amounts			Ratios(1)
		Available Capital (Deficit)(2)	Minimum Capital Requirement	Total Capital Requirement (including Buffers)(3)	Available Capital (Deficit) Ratio	Minimum Capital Ratio Requirement	Total Capital Requirement Ratio (including Buffers)
Risk-based capital:
	Total capital (statutory)(4)	$(3)	$113	$113	(0.2)%	8.0%	8.0%
	Common equity tier 1 capital	(41)	63	143	(2.9)	4.5	10.2
	Tier 1 capital	(22)	85	165	(1.6)	6.0	11.7
	Adjusted total capital	(22)	113	193	(1.6)	8.0	13.7
Leverage capital:
	Core capital (statutory)(5)	(12)	111	111	(0.3)	2.5	2.5
	Tier 1 capital	(22)	111	134	(0.5)	2.5	3.0


Capital Metrics under the Enterprise Regulatory Capital Framework as of December 31, 2024
(Dollars in billions)
Adjusted total assets		$4,460
Risk-weighted assets		1,364
		Amounts			Ratios(1)
		Available Capital (Deficit)(2)	Minimum Capital Requirement	Total Capital Requirement (including Buffers)(3)	Available Capital (Deficit) Ratio	Minimum Capital Ratio Requirement	Total Capital Requirement Ratio (including Buffers)
Risk-based capital:
	Total capital (statutory)(4)	$(18)	$109	$109	(1.3)%	8.0%	8.0%
	Common equity tier 1 capital	(56)	61	142	(4.1)	4.5	10.4
	Tier 1 capital	(37)	82	163	(2.7)	6.0	11.9
	Adjusted total capital	(37)	109	190	(2.7)	8.0	13.9
Leverage capital:
	Core capital (statutory)(5)	(26)	111	111	(0.6)	2.5	2.5
	Tier 1 capital	(37)	111	135	(0.8)	2.5	3.0

(1)Ratios are calculated as a percentage of risk-weighted assets for risk-based capital metrics and as a percentage of adjusted total assets

for leverage capital metrics.

(2)Available capital deficit for all line items excludes the stated value of the senior preferred stock ($120.8 billion).

(3)Prescribed capital conservation buffer amount, or PCCBA, for risk-based capital and prescribed leverage buffer amount, or PLBA, for

leverage capital.

(4)The sum of (a) core capital (see definition in footnote 5 below); and (b) a general allowance for foreclosure losses.

(5)The sum of (a) the stated value of our outstanding common stock (common stock less treasury stock); (b) the stated value of our

outstanding perpetual, noncumulative preferred stock; (c) our paid-in capital; and (d) our retained earnings (accumulated deficit).

Restrictions on Capital Distributions, including Dividends

Statutory Restrictions. Under the GSE Act, FHFA has authority to prohibit capital distributions, including payment of

dividends, if we fail to meet our capital requirements. If FHFA classifies us as significantly undercapitalized, the approval

of the FHFA Director is required for any dividend payment. Under the Charter Act and the GSE Act, we are not permitted

to make a capital distribution if, after making the distribution, we would be undercapitalized. The FHFA Director,

however, may permit us to repurchase shares if the repurchase is made in connection with the issuance of additional

shares or obligations in at least an equivalent amount and will reduce our financial obligations or otherwise improve our

financial condition.

Restrictions Relating to Conservatorship and Under Senior Preferred Stock Purchase Agreement. Consistent with the

prohibition on the payment of dividends in the senior preferred stock purchase agreement, the conservator eliminated

dividends on our common and preferred stock (other than the senior preferred stock) during the conservatorship. For

additional information on the dividend provisions for our equity instruments and the restrictions on our ability to pay

dividends, see “Note 12, Equity.”

Restrictions Under Enterprise Regulatory Capital Framework. The enterprise regulatory capital framework rule

establishes prior notice and approval requirements for capital distributions. In addition, while not currently applicable,

our payment of dividends and capital distributions will be subject to the following restrictions under the enterprise

regulatory capital framework effective on the date of termination of our conservatorship:

During a calendar quarter, we will not be permitted to pay dividends or make any other capital distributions (or create an

obligation to make such distributions) that, in the aggregate, exceed the amount equal to our eligible retained income for

the quarter multiplied by our maximum payout ratio. The maximum payout ratio for a given quarter is the lowest of the

payout ratios determined by our capital conservation buffer and our leverage buffer. We will not be subject to this

limitation on distributions if we have a capital conservation buffer that is greater than our prescribed capital conservation

buffer amount and a leverage buffer that is greater than our prescribed leverage buffer amount. Notwithstanding the

above-described limitations, FHFA may permit us to make a distribution upon our request, if FHFA determines that the

distribution would not be contrary to the purposes of this section of the enterprise regulatory capital framework or to our

safety and soundness. We will not be permitted to make any distributions during a quarter if our eligible retained income

is negative and either (a) our capital conservation buffer is less than our stress capital buffer or (b) our leverage buffer is

less than our prescribed leverage buffer amount.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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