Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2025

The following table displays the notional amount and estimated fair value of our asset and liability derivative

instruments, including derivative instruments designated as hedges.


	As of December 31,
	2025			2024
	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value
	Notional Amount	Asset Derivatives	Liability Derivatives	Notional Amount	Asset Derivatives	Liability Derivatives
	(Dollars in millions)
Risk management derivatives designated as hedging instruments:
Swaps:(1)
Pay-fixed	$38,759	$—	$—	$26,704	$—	$—
Receive-fixed	8,439	—	—	10,057	—	—
Total risk management derivatives designated as hedging instruments	47,198	—	—	36,761	—	—
Risk management derivatives not designated as hedging instruments:
Swaps:(1)
Pay-fixed	199,744	—	—	146,628	—	—
Receive-fixed	194,394	145	(1,082)	135,686	71	(2,164)
Basis	250	28	—	250	26	—
Foreign currency	334	—	(56)	310	—	(81)
Swaptions:(1)
Pay-fixed	11,956	91	(4)	7,006	280	(31)
Receive-fixed	11,661	13	(114)	5,916	24	(92)
Futures(1)	11,546	—	—	86	—	—
Total risk management derivatives not designated as hedging instruments	429,885	277	(1,256)	295,882	401	(2,368)
Netting adjustment(2)	—	(199)	1,242	—	(362)	2,367
Total risk management derivatives portfolio	477,083	78	(14)	332,643	39	(1)
Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	4,005	7	(1)	2,634	1	(9)
Forward contracts to purchase mortgage- related securities	47,122	48	(13)	31,883	3	(118)
Forward contracts to sell mortgage-related securities	111,868	—	(117)	78,934	108	(10)
Total mortgage commitment derivatives	162,995	55	(131)	113,451	112	(137)
Credit enhancement derivatives	27,269	44	(3)	28,775	28	(16)
Other derivatives	732	—	(4)	—	—	—
Derivatives at fair value	$668,079	$177	$(152)	$474,869	$179	$(154)

(1)Centrally cleared derivatives have no ascribable fair value because the positions are settled daily.

(2)The netting adjustment represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with

the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $1.1 billion and $2.0

billion as of December 31, 2025 and 2024, respectively. Cash collateral received was $27 million and $3 million as of December 31, 2025

and 2024, respectively

The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives.


	For the Year Ended December 31,
	2025	2024	2023
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$(1,003)	$1,472	$(1,441)
Receive-fixed	1,806	242	2,441
Basis	4	(22)	39
Foreign currency	25	(15)	32
Swaptions:
Pay-fixed	(190)	66	(2)
Receive-fixed	(60)	(20)	(10)
Futures	21	1	—
Net contractual interest expense on interest-rate swaps	(532)	(964)	(711)
Total risk management derivatives fair value gains (losses), net	71	760	348
Mortgage commitment derivatives fair value gains (losses), net	(1,006)	533	120
Credit enhancement derivatives fair value gains (losses), net	(23)	(82)	46
Other derivatives fair value gains (losses), net	1	—	—
Total derivatives fair value gains (losses), net	$(957)	$1,211	$514

The following table displays the effect of fair value hedge accounting on our consolidated statements of operations and

comprehensive income, including gains and losses recognized on fair value hedging relationships.


		For the Year Ended December 31,
		2025		2024
		Interest Income: Mortgage Loans	Interest Expense: Long- Term Debt	Interest Income: Mortgage Loans	Interest Expense: Long- Term Debt
	(Dollars in millions)
Total amounts presented in our consolidated statements of operations and comprehensive income		$152,149	$(129,425)	$144,152	$(121,223)

Gains (losses) from fair value hedging relationships:
Mortgage loans HFI and related interest-rate contracts:
Hedged items		$441	$—	$(675)	$—
Discontinued hedge-related basis adjustment amortization		31	—	33	—
Derivatives designated as hedging instruments		(364)	—	636	—
Interest accruals on derivative hedging instruments		217	—	315	—
Debt of Fannie Mae and related interest-rate contracts:
Hedged items		—	(233)	—	502
Discontinued hedge-related basis adjustment amortization		—	(802)	—	(863)
Derivatives designated as hedging instruments		—	224	—	(363)
Interest accruals on derivative hedging instruments		—	(91)	—	(425)
Gains (losses) recognized in net interest income on fair value hedging relationships		$325	$(902)	$309	$(1,149)

The following table displays the carrying amounts of the hedged items that have been in qualifying fair value hedges

recorded in our consolidated balance sheets, including the hedged item’s cumulative basis adjustments and the closed

portfolio balances under the portfolio layer method. The hedged item carrying amounts and total basis adjustments

include both open and discontinued hedges. The amortized cost and designated UPB consists only of open hedges as

of December 31, 2025 and 2024.


	As of December 31, 2025
	Carrying Amount Assets (Liabilities)	Cumulative Amount of Fair Value Hedging Basis Adjustments Included in the Carrying Amount		Closed Portfolio of Mortgage Loans Under Portfolio Layer Method
	Carrying Amount Assets (Liabilities)	Total Basis Adjustments(1)	Remaining Adjustments - Discontinued Hedge	Total Amortized Cost	Designated UPB
	(Dollars in millions)
Mortgage loans HFI	$1,343,231	$(344)	$(344)	$251,659	$39,605
Debt of Fannie Mae	(28,764)	2,355	2,355	N/A	N/A


	As of December 31, 2024
	Carrying Amount Assets (Liabilities)	Cumulative Amount of Fair Value Hedging Basis Adjustments Included in the Carrying Amount		Closed Portfolio of Mortgage Loans Under Portfolio Layer Method
	Carrying Amount Assets (Liabilities)	Total Basis Adjustments(1)	Remaining Adjustments - Discontinued Hedge	Total Amortized Cost	Designated UPB
	(Dollars in millions)
Mortgage loans HFI	$1,109,445	$(816)	$(816)	$813,536	$26,825
Debt of Fannie Mae	(47,849)	3,390	3,390	N/A	N/A

(1)No basis adjustment associated with open hedges, as all hedges are designated at the close of business, with a one-day term.