Fair Value (Tables)

12 Months Ended

Dec. 31, 2025

The following tables display our assets and liabilities measured in our consolidated balance sheets at fair value on a

recurring basis subsequent to initial recognition, including instruments for which we have elected the fair value option.


	Fair Value Measurements as of December 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment(1)		Estimated Fair Value
Recurring fair value measurements:	(Dollars in millions)
Assets:
Trading securities:
Mortgage-related		$—		$14,264		$27		$—		$14,291
Non-mortgage-related		55,205		18		—		—		55,223
Total trading securities		55,205		14,282		27		—		69,514
Available-for-sale securities:
Agency(2)		—		32		276		—		308
Other mortgage-related		—		2		65		—		67
Total available-for-sale securities		—		34		341		—		375
Mortgage loans		—		5,076		388		—		5,464
Derivative assets		—		304		72		(199)		177
Total assets at fair value		$55,205		$19,696		$828		$(199)		$75,530

Liabilities:
Long-term debt:
Of Fannie Mae		$—		$—		$256		$—		$256
Of consolidated trusts		—		14,969		91		—		15,060
Total long-term debt		—		14,969		347		—		15,316
Derivative liabilities		—		1,387		7		(1,242)		152
Total liabilities at fair value		$—		$16,356		$354		$(1,242)		$15,468


	Fair Value Measurements as of December 31, 2024
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustment(1)		Estimated Fair Value
Recurring fair value measurements:	(Dollars in millions)
Assets:
Trading securities:
Mortgage-related		$—		$1,070		$28		$—		$1,098
Non-mortgage-related		77,610		20		—		—		77,630
Total trading securities		77,610		1,090		28		—		78,728
Available-for-sale securities:
Agency(2)		—		38		301		—		339
Other mortgage-related		—		4		126		—		130
Total available-for-sale securities		—		42		427		—		469
Mortgage loans		—		3,345		399		—		3,744
Derivative assets		—		487		54		(362)		179
Total assets at fair value		$77,610		$4,964		$908		$(362)		$83,120

Liabilities:
Long-term debt:
Of Fannie Mae		$—		$136		$249		$—		$385
Of consolidated trusts		—		13,188		104		—		13,292
Total long-term debt		—		13,324		353		—		13,677
Derivative liabilities		—		2,506		15		(2,367)		154
Total liabilities at fair value		$—		$15,830		$368		$(2,367)		$13,831

(1)Derivative contracts are reported on a gross basis by level. 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.

(2)Agency securities consist of securities issued by Fannie Mae, Freddie Mac, or Ginnie Mae.

Fair Value Measurements Using Significant Unobservable Input (Level 3)

The following tables display a reconciliation of all assets and liabilities measured at fair value on a recurring basis using

significant unobservable inputs (Level 3).


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Trading Securities	Available-for- Sale Securities	Mortgage Loans	Net Derivatives	Long-term Debt
	(Dollars in millions)
Balance as of December 31, 2022	$47	$634	$543	$(37)	$(378)
Purchases	—	—	—	—	—
Sales	—	—	(1)	—	—
Issuances	—	—	—	—	—
Settlements	(1)	(124)	(79)	36	17
Net transfers	(11)	—	2	—	1
Total gains (losses) realized & unrealized(1)	(9)	4	12	78	(25)
Balance as of December 31, 2023	26	514	477	77	(385)
Purchases	—	—	—	—	—
Sales	—	—	(14)	—	—
Issuances	—	—	—	—	—
Settlements	(1)	(92)	(63)	54	16
Net transfers	3	(1)	(9)	—	—
Total gains (losses) realized & unrealized(1)	—	6	8	(92)	16
Balance as of December 31, 2024	28	427	399	39	(353)
Purchases	—	—	—	—	—
Sales	—	—	(1)	—	—
Issuances	—	—	—	—	—
Settlements	—	(86)	(54)	37	14
Net transfers	(3)	1	29	—	—
Total gains (losses) realized & unrealized(1)	2	(1)	15	(11)	(8)
Balance as of December 31, 2025	$27	$341	$388	$65	$(347)

(1)We had no significant unrealized gains or losses related to assets and liabilities still held in either “Net income” or “Other comprehensive

income (loss)” at December 31, 2025, 2024, or 2023.

Fair Value Measurement Inputs and Valuation Techniques

The following tables display valuation techniques for our Level 3 assets and liabilities measured at fair value on a

recurring basis, excluding instruments for which we have elected the fair value option. Changes in these unobservable

inputs can result in significantly higher or lower fair value measurements of these assets and liabilities as of the

reporting date.


	Fair Value Measurements as of December 31, 2025
	Fair Value	Significant Valuation Techniques
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related(1)	$27	Single Vendor
Available-for-sale securities:
Agency(1)	$276	Consensus and Single Vendor
Other mortgage-related	65	Primarily Discounted Cash Flow, Single Vendor, and Consensus
Total available-for-sale securities	$341
Net derivatives	$65	Dealer Mark and Discounted Cash Flow


	Fair Value Measurements as of December 31, 2024
	Fair Value	Significant Valuation Techniques
	(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related(1)	$28	Primarily Consensus
Available-for-sale securities:
Agency(1)	$301	Consensus
Other mortgage-related	126	Primarily Discounted Cash Flow, Single Vendor, and Consensus
Total available-for-sale securities	$427
Net derivatives	$39	Dealer Mark and Discounted Cash Flow

(1)Includes Fannie Mae and Freddie Mac securities.

Our nonrecurring fair value measures consist primarily of Level 3 assets, for which the valuation techniques are

displayed in the following table.


		Fair Value Measurements as of December 31,
	Valuation Techniques	2025	2024
		(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans:(1)
Mortgage loans held for sale, at lower of cost or fair value	Consensus	$107	$113

Single-family mortgage loans held for investment, at amortized cost	Internal Model	221	267

Multifamily mortgage loans held for investment, at amortized cost	Appraisal	231	448
	Asset Manager Estimate	1	—
	Broker Price Opinion	1,586	851
	Internal Model	250	172
Total multifamily mortgage loans held for investment, at amortized cost		2,068	1,471

Acquired property, net:
Single-family	Accepted Offer and Appraisal	139	74
	Internal Model and Walk Forward	263	294
Total single-family		402	368

Multifamily	Broker Price Opinion and Appraisal	104	278
Total nonrecurring assets at fair value		$2,902	$2,497

(1)When we measure impairment, including recoveries, based on the fair value of the loan or the underlying collateral and impairment is

recorded on any component of the mortgage loan, including accrued interest receivable and amounts due from the borrower for advances

of taxes and insurance, we present the entire fair value measurement amount with the corresponding mortgage loan.

The following is a description of the valuation techniques we use for fair value measurement and disclosure as well as

our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in more specific

situations.


Instruments	Valuation Techniques	Classification
U.S. Treasury Securities and Futures	We classify securities whose values are based on quoted market prices in active markets for identical assets as Level 1 of the valuation hierarchy. These are comprised of U.S. Treasury securities and futures which are classified as trading securities.	Level 1
Other Trading Securities and Available-for-Sale Securities	We classify securities in active markets as Level 2 of the valuation hierarchy if quoted market prices in active markets for identical assets are not available. For all valuation techniques used for securities where there is limited activity or less transparency around these inputs to the valuation, these securities are classified as Level 3 of the valuation hierarchy. Single Vendor: Uses a single vendor price that represents estimated fair value. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value.	Level 2 and 3
	Discounted Cash Flow: In the absence of prices provided by third-party pricing services supported by observable market data, we estimate the fair value of a portion of our securities using a discounted cash flow technique that uses inputs such as default rates, prepayment speeds, loss severity and spreads based on market assumptions where available. For private-label securities, an increase in unobservable prepayment speeds in isolation would generally result in an increase in fair value, and an increase in unobservable spreads, severity rates or default rates in isolation would generally result in a decrease in fair value. For mortgage revenue bonds classified as Level 3 of the valuation hierarchy, an increase in unobservable spreads would result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of our recurring Level 3 securities above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
Mortgage Loans Held for Investment	Build-up: We derive the fair value of performing mortgage loans using a build-up valuation technique starting with the base value for our Fannie Mae MBS with similar characteristics and then add or subtract the fair value of the associated guaranty asset, guaranty obligation (“GO”) and master servicing arrangement. We set the GO equal to the estimated fair value we would receive if we were to issue our guaranty to an unrelated party in a stand-alone arm’s length transaction at the measurement date. The fair value of the GO is estimated based on our current guaranty pricing for newly acquired loans. Our performing loans are generally classified as Level 2 of the valuation hierarchy to the extent that significant inputs are observable. To the extent that unobservable inputs are significant, the loans are classified as Level 3 of the valuation hierarchy.	Level 2 and 3
	Consensus: Calculated through the extrapolation of indicative sample bids obtained from multiple active market participants plus the estimated value of any applicable mortgage insurance, the estimated fair value using the Consensus method represents an estimate of the prices we would receive if we were to sell these single-family nonperforming and certain reperforming loans in the whole loan market. The fair value of any mortgage insurance on a nonperforming or reperforming loan is estimated using product-specific pricing grids that have been derived from loan-level bids on whole loan transactions. These loans are generally classified as Level 3 of the valuation hierarchy because significant inputs are unobservable. To the extent that significant inputs are observable, the loans are classified as Level 2 of the valuation hierarchy. We estimate the fair value for a portion of our senior-subordinated trust structures using the prices at the security level as a proxy for estimating loan fair value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.
	Single Vendor: We estimate the fair value of our reverse mortgages using the single vendor valuation technique. Internal Model: The internal model used to value collateral contains four sub-component models: 1) Location Model, 2) Neighborhood Model, 3) Automated Valuation Model (“AVM”) Imputation Model and 4) Final Valuation Model. These models consider characteristics of the property, neighborhood, local housing markets, underlying loan and home price growth to derive a final estimated value. These loans are classified as Level 3 of the valuation hierarchy because significant inputs are unobservable.


Instruments	Valuation Techniques	Classification
Mortgage Loans Held for Investment	Appraisal: We use appraisals to estimate the fair value for a portion of our multifamily loans based on either estimated replacement cost, the present value of future cash flows, or sales of similar properties. Significant unobservable inputs include estimated replacement or construction costs, property net operating income, capitalization rates, and adjustments made to sales of comparable properties based on characteristics such as financing, conditions of sale, and physical characteristics of the property. Broker Price Opinion: We use broker price opinions to estimate the fair value for a portion of our multifamily loans. This technique uses both current property value and the property value adjusted for stabilization and market conditions. The unobservable inputs used in this technique are property net operating income and market capitalization rates to estimate property value. Asset Manager Estimate: This technique uses the net operating income and tax assessments of the specific property as well as Metropolitan Statistical Area-specific market capitalization rates and average per unit sales values to estimate property fair value.	Level 2 and 3
	An increase in prepayment speeds in isolation would generally result in an increase in the fair value of our mortgage loans classified as Level 3 of the valuation hierarchy, and an increase in severity rates, default rates or spreads in isolation would generally result in a decrease in fair value. Although we have disclosed unobservable inputs for the fair value of the mortgage loans classified as Level 3 above, interrelationships exist among these inputs such that a change in one unobservable input typically results in a change to one or more of the other inputs.
Mortgage Loans Held for Sale	Loans are reported at the lower of cost or fair value in our consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are the same as our HFI loans and are described above in “Mortgage Loans Held for Investment.” To the extent that significant inputs are unobservable, the loans are classified within level 3 of the valuation hierarchy.	Level 2 and 3
Acquired Property, Net and Other Assets	Single-family acquired property valuation techniques Accepted Offer: An Offer to Purchase Real Estate that has been submitted by a potential purchaser of an acquired property and accepted by Fannie Mae in a pending sale. Appraisal: An appraisal is an estimate based on recent historical data of the value of a specific property by a certified or licensed appraiser. Adjustments are made for differences between comparable properties for unobservable inputs such as square footage, location, and condition of the property. At times, we may use similar valuation techniques to appraisals, such as Broker Price Opinion, Evaluation, and Property Inspection Report with Value. These additional techniques are included in the ‘Appraisal’ category within the table above. This information is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value. Broker Price Opinion: This technique provides an estimate of what the property is worth based upon a real estate broker’s use of specific market research and a sales comparison approach that is similar to the appraisal process. This information is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value. Property Inspection Report with Value: This technique provides an estimate of what the property is worth based upon a third party model that is adjusted for condition of the property and/or any other factors impacting the marketability. This information is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value. Evaluation: This technique provides an estimate of what the property is worth based upon a valuation professional’s use of data gathered during an inspection, market research and a sales comparison approach that is similar to the appraisal process. This information is used along with recent and pending sales and current listings of similar properties to arrive at an estimate of value.	Level 3
	Walk Forward: A walk forward is a technique to adjust an existing valuation or sales price for changing market conditions by applying a walk forward factor based on local price movements. Internal Model: We use an internal model to estimate fair value for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”
	Multifamily acquired property valuation techniques Broker Price Opinion: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.” Appraisal: We use this method to estimate property values for distressed properties. The valuation methodology and inputs used are described under “Mortgage Loans Held for Investment.”


Instruments	Valuation Techniques	Classification
Asset and Liability Derivative Instruments (collectively “Derivatives”)	The valuation process for the majority of our risk management derivatives uses observable market data provided by third-party sources, resulting in Level 2 classification of the valuation hierarchy. Single Vendor: We use one vendor price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique. Clearing House: We use the clearing house-provided value for interest-rate derivatives which are transacted through a clearing house. Internal Model: We use internal models to value interest-rate derivatives which are valued by referencing yield curves derived from observable interest rates and spreads to project and discount cash flows to present value. Discounted Cash Flow: We use discounted cash flow to estimate fair value for credit enhancement derivatives related to credit risk transfer transactions. Dealer Mark: Certain highly complex structured swaps primarily use a single dealer mark due to lack of transparency in the market and may be modeled using observable interest rates and volatility levels as well as significant unobservable assumptions, resulting in Level 3 classification of the valuation hierarchy. Mortgage commitment derivatives that use observable market data, quotes and actual transaction price levels adjusted for market movement are typically classified as Level 2 of the valuation hierarchy. To the extent mortgage commitment derivatives include adjustments for market movement that cannot be corroborated by observable market data, we classify them as Level 3 of the valuation hierarchy.	Level 2 and 3
Debt of Fannie Mae and Consolidated Trusts	We classify debt instruments that have quoted market prices in active markets for similar liabilities when traded as assets as Level 2 of the valuation hierarchy. For all valuation techniques used for debt instruments where there is limited activity or less transparency around these inputs to the valuation, these debt instruments are classified as Level 3 of the valuation hierarchy. Consensus: Uses an average of two or more vendor prices or dealer marks that represents estimated fair value for similar liabilities when traded as assets. Single Vendor: Uses a single vendor price that represents estimated fair value for these liabilities when traded as assets. Discounted Cash Flow: Uses spreads based on market assumptions where available. The valuation methodology and inputs used in estimating the fair value of MBS assets are described under “Other Trading Securities and Available-for-Sale Securities.”	Level 2 and 3

The following is a description of the valuation techniques we use for fair value measurement of our financial instruments

as well as our basis for classifying these measurements as Level 1, Level 2 or Level 3 of the valuation hierarchy in

certain specific situations.


Instruments	Description	Classification
Financial Instruments for which Fair Value Approximates Carrying Value	We hold certain financial instruments that are not carried at fair value but for which the carrying value approximates fair value due to the short-term nature and negligible credit risk inherent in them. These financial instruments include cash, the majority of advances to lenders, and securities sold/purchased under agreements to repurchase/resell.	Level 1 and 2
Securities Sold/ Purchased Under Agreements to Repurchase/Resell	The carrying value for the majority of these specific instruments approximates the fair value due to the short-term nature and the negligible inherent credit risk, as they involve the exchange of collateral that is easily traded. Were we to calculate the fair value of these instruments, we would use observable inputs.	Level 2
Mortgage Loans Held for Sale	Loans are reported at the lower of cost or fair value in our consolidated balance sheets. The valuation methodology and inputs used in estimating the fair value of HFS loans are the same as for our HFI loans and are described under “Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table in the “Fair Value Measurement” section above. To the extent that significant inputs are unobservable, the loans are classified within Level 3 of the valuation hierarchy.	Level 2 and 3
Mortgage Loans Held for Investment	For a description of loan valuation techniques, refer to “Mortgage Loans Held for Investment” in the valuation techniques for assets and liabilities held at fair value table in the “Fair Value Measurement” section above.	Level 2 and 3
Advances to Lenders	The carrying value for the majority of our advances to lenders approximates the fair value due to the short-term nature and the negligible inherent credit risk. If we were to calculate the fair value of these instruments, we would use discounted cash flow models that use observable inputs such as spreads based on market assumptions, resulting in Level 2 classification.	Level 2
Guaranty Assets and Buy-ups	Guaranty assets related to our portfolio securitizations are recorded in our consolidated balance sheets at fair value on a recurring basis and are classified as Level 3. Guaranty assets in lender swap transactions are recorded in our consolidated balance sheets at the lower of cost or fair value. These assets, which are measured at fair value on a nonrecurring basis, are also classified as Level 3. We estimate the fair value of guaranty assets by using proprietary models to project cash flows based on management’s best estimate of key assumptions such as prepayment speeds and forward yield curves. Because guaranty assets are similar to an interest-only income stream, the projected cash flows are discounted at rates that consider the current spreads on interest-only swaps that reference Fannie Mae MBS and also liquidity considerations of the guaranty assets. The fair value of guaranty assets includes the fair value of any associated buy-ups.	Level 3
Guaranty Obligations	The fair value of all guaranty obligations, measured subsequent to their initial recognition, is our estimate of a hypothetical transaction price we would receive if we were to issue our guaranty to an unrelated party in a standalone arm’s-length transaction at the measurement date. The valuation methodology and inputs used in estimating the fair value of the guaranty obligations are described under “Mortgage loans held for Investment—Build-up” in the valuation techniques for assets and liabilities held at fair value in the “Fair Value Measurement” section above.	Level 3

Fair Value of Financial Instruments

The following table displays the carrying value and estimated fair value of our financial instruments. The fair value of

financial instruments we disclose includes commitments to purchase multifamily and single-family mortgage loans that

we do not record in our consolidated balance sheets. The fair values of these commitments are included as “Mortgage

loans held for investment, net of allowance for loan losses.” The disclosure excludes all non-financial instruments;

therefore, the fair value of our financial assets and liabilities does not represent the underlying fair value of our total

consolidated assets and liabilities.


	As of December 31, 2025
	Carrying Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Netting Adjustment	Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash, including restricted cash	$42,583	$42,583	$—	$—	$—	$42,583
Securities purchased under agreements to resell	45,650	—	45,650	—	—	45,650
Trading securities	69,514	55,205	14,282	27	—	69,514
Available-for-sale securities	375	—	34	341	—	375
Mortgage loans held for sale	209	—	23	201	—	224
Mortgage loans held for investment, net of allowance for loan losses	4,119,104	—	3,656,465	137,864	—	3,794,329
Advances to lenders	3,595	—	3,595	—	—	3,595
Derivative assets at fair value	177	—	304	72	(199)	177
Guaranty assets	90	—	—	172	—	172
Total financial assets	$4,281,297	$97,788	$3,720,353	$138,677	$(199)	$3,956,619

Financial liabilities:
Short-term debt:
Of Fannie Mae	$24,538	$—	$24,548	$—	$—	$24,548
Long-term debt:
Of Fannie Mae	102,751	—	104,784	602	—	105,386
Of consolidated trusts	4,053,140	—	3,701,675	235	—	3,701,910
Derivative liabilities at fair value	152	—	1,387	7	(1,242)	152
Guaranty obligations	96	—	—	54	—	54
Total financial liabilities	$4,180,677	$—	$3,832,394	$898	$(1,242)	$3,832,050


	As of December 31, 2024
	Carrying Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Netting Adjustment	Estimated Fair Value
	(Dollars in millions)
Financial assets:
Cash, including restricted cash	$38,536	$38,536	$—	$—	$—	$38,536
Securities purchased under agreements to resell	56,250	—	56,250	—	—	56,250
Trading securities	78,728	77,610	1,090	28	—	78,728
Available-for-sale securities	469	—	42	427	—	469
Mortgage loans held for sale	373	—	130	258	—	388
Mortgage loans held for investment, net of allowance for loan losses	4,137,633	—	3,496,803	127,763	—	3,624,566
Advances to lenders	1,825	—	1,825	—	—	1,825
Derivative assets at fair value	179	—	487	54	(362)	179
Guaranty assets	64	—	—	160	—	160
Total financial assets	$4,314,057	$116,146	$3,556,627	$128,690	$(362)	$3,801,101
Financial liabilities:
Short-term debt:
Of Fannie Mae	$11,188	$—	$11,193	$—	$—	$11,193
Long-term debt:
Of Fannie Mae	128,234	—	129,152	567	—	129,719
Of consolidated trusts	4,088,675	—	3,557,237	274	—	3,557,511
Derivative liabilities at fair value	154	—	2,506	15	(2,367)	154
Guaranty obligations	69	—	—	60	—	60
Total financial liabilities	$4,228,320	$—	$3,700,088	$916	$(2,367)	$3,698,637

Fair Value Option

The following table displays the fair value and UPB of the financial instruments for which we have elected the fair value

option.


	As of December 31,
	2025			2024
	Loans(1)	Long-Term Debt of Fannie Mae	Long-Term Debt of Consolidated Trusts	Loans(1)	Long-Term Debt of Fannie Mae	Long-Term Debt of Consolidated Trusts
	(Dollars in millions)
Fair value	$5,464	$256	$15,060	$3,744	$385	$13,292
UPB	5,808	250	15,516	4,079	383	13,766

(1)Includes nonaccrual loans with a fair value of $30 million and $31 million as of December 31, 2025 and 2024, respectively. Includes loans

that are 90 days or more past due with a fair value of $26 million and $25 million as of December 31, 2025 and 2024, respectively.