v3.26.1
Fair Value
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis.
Fair Value Measurement
Fair value measurement guidance defines fair value, establishes a framework for measuring fair value and sets forth disclosures around fair value measurements. This guidance applies whenever other accounting guidance requires or permits assets or liabilities to be measured at fair value. The guidance establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2: Limited observable inputs or observable inputs for similar assets and liabilities.
•Level 3: Unobservable inputs.
We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. See “Note 16, Fair Value” in our 2025 Form 10-K for information on the valuation control processes and 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. If the inputs used to measure assets or liabilities at fair value change, it may also result in a change in classification among Levels 1, 2, and 3. We made no material changes to the valuation control processes or the valuation techniques in the first quarter of 2026.
Recurring Changes in Fair Value
The following tables display our assets and liabilities measured in our condensed 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 March 31, 2026
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
(Dollars in millions)
Recurring fair value measurements:
Assets:
Trading securities:
Mortgage-related(2)
$— $18,646 $26 $— $18,672 
Non-mortgage-related(3)
44,406 18 — — 44,424 
Total trading securities44,406 18,664 26 — 63,096 
Available-for-sale securities:
Mortgage-related(2)
$— $187 $331 $— $518 
Non-mortgage-related(3)
11,906 — — — 11,906 
Total available-for-sale securities11,906 187 331 — 12,424 
Mortgage loans— 5,146 401 — 5,547 
Derivative assets— 418 70 (136)352 
Total assets at fair value$56,312 $24,415 $828 $(136)$81,419 
Liabilities:
Long-term debt:
Of Fannie Mae$— $— $265 $— $265 
Of consolidated trusts— 13,619 88 — 13,707 
Total long-term debt— 13,619 353 — 13,972 
Derivative liabilities— 1,959 16 (1,299)676 
Total liabilities at fair value$— $15,578 $369 $(1,299)$14,648 
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
(Dollars in millions)
Recurring fair value measurements:
Assets:
Trading securities:
Mortgage-related(2)
$— $14,264 $27 $— $14,291 
Non-mortgage-related(3)
55,205 18 — — 55,223 
Total trading securities55,205 14,282 27 — 69,514 
Available-for-sale securities:
Mortgage-related(2)
$— $34 $341 $— $375 
Non-mortgage-related(3)
— — — — — 
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 
(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)Mortgage-related securities primarily consist of securities issued by Fannie Mae, Freddie Mac, or Ginnie Mae.
(3)Non-mortgage related securities consist of U.S. Treasury securities.
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 SecuritiesAvailable-for-Sale SecuritiesMortgage LoansNet DerivativesLong-term Debt
(Dollars in millions)
Balance as of December 31, 2025
$27 $341 $388 $65 $(347)
Purchases— — — — — 
Sales— — — — — 
Issuances— — — — — 
Settlements— (8)(13)(9)3 
Net transfers— — 27 — (1)
Total gains (losses) realized & unrealized(1)
(1)(2)(1)(2)(8)
Balance as of March 31, 2026
$26 $331 $401 $54 $(353)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Trading SecuritiesAvailable-for-Sale SecuritiesMortgage LoansNet DerivativesLong-term Debt
(Dollars in millions)
Balance as of December 31, 2024
$28 $427 $399 $39 $(353)
Purchases— — — — — 
Sales— — — — — 
Issuances— — — — — 
Settlements— (19)(16)1 4 
Net transfers(3)— (2)— — 
Total gains (losses) realized & unrealized(1)
1 (3)7 (5)(15)
Balance as of March 31, 2025
$26 $405 $388 $35 $(364)
(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)” as of March 31, 2026 or March 31, 2025.
The following tables display significant 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 March 31, 2026
Fair ValueSignificant Valuation Techniques
(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related$26 Single Vendor
Available-for-sale securities:
Mortgage-related$331 Primarily Consensus, Single Vendor, and Discounted Cash Flow
Net derivatives$54 Dealer Mark and Discounted Cash Flow
Fair Value Measurements as of December 31, 2025
Fair ValueSignificant Valuation Techniques
(Dollars in millions)
Recurring fair value measurements:
Trading securities:
Mortgage-related$27 Single Vendor
Available-for-sale securities:
Mortgage-related$341 Primarily Consensus, Single Vendor, and Discounted Cash Flow
Net derivatives$65 Dealer Mark and Discounted Cash Flow
Nonrecurring Changes in Fair Value
In our condensed consolidated balance sheets, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when we evaluate loans for impairment).
The following table displays valuation techniques for our Level 3 assets measured at fair value on a nonrecurring basis.
Fair Value Measurements
as of
Valuation TechniquesMarch 31, 2026December 31, 2025
(Dollars in millions)
Nonrecurring fair value measurements:
Mortgage loans:(1)
Mortgage loans held for sale, at lower of cost or fair valueConsensus$90 $107 
Single-family mortgage loans held for investment, at amortized costInternal Model214 221 
Multifamily mortgage loans held for investment, at amortized costAppraisal38 231 
Asset Manager Estimate— 1 
Broker Price Opinion969 1,586 
Internal Model188 250 
Total multifamily mortgage loans held for investment, at amortized cost1,195 2,068 
Acquired property, net:
Single-familyAccepted Offer and Appraisal90 139 
Internal Model and Walk Forward112 263 
Total single-family202 402 
MultifamilyBroker Price Opinion and Appraisal292 104 
Total nonrecurring assets at fair value$1,993 $2,902 
(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.
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 condensed 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 March 31, 2026
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3) 		Netting AdjustmentEstimated Fair Value
(Dollars in millions)
Financial assets:
Cash, including restricted cash
$45,264 $45,264 $— $— $— $45,264 
Securities purchased under agreements to resell38,199 — 38,199 — — 38,199 
Trading securities63,096 44,406 18,664 26 — 63,096 
Available-for-sale securities12,424 11,906 187 331 — 12,424 
Mortgage loans held for sale199 — 22 191 — 213 
Mortgage loans held for investment, net of allowance for loan losses
4,115,101 — 3,607,231 163,972 — 3,771,203 
Advances to lenders3,509 — 3,509 — — 3,509 
Derivative assets at fair value352 — 418 70 (136)352 
Guaranty assets96 — — 179 — 179 
Total financial assets$4,278,240 $101,576 $3,668,230 $164,769 $(136)$3,934,439 
Financial liabilities:
Short-term debt:
Of Fannie Mae$20,602 $— $20,606 $— $— $20,606 
Long-term debt:
Of Fannie Mae129,836 — 131,354 599 — 131,953 
Of consolidated trusts4,022,364 — 3,653,910 230 — 3,654,140 
Derivative liabilities at fair value676 — 1,959 16 (1,299)676 
Guaranty obligations101 — — 52 — 52 
Total financial liabilities$4,173,579 $— $3,807,829 $897 $(1,299)$3,807,427 
As of December 31, 2025
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)		Netting AdjustmentEstimated Fair Value
(Dollars in millions)
Financial assets:
Cash, including restricted cash
$42,583 $42,583 $— $— $— $42,583 
Securities purchased under agreements to resell45,650 — 45,650 — — 45,650 
Trading securities69,514 55,205 14,282 27 — 69,514 
Available-for-sale securities375 — 34 341 — 375 
Mortgage loans held for sale209 — 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 lenders3,595 — 3,595 — — 3,595 
Derivative assets at fair value177 — 304 72 (199)177 
Guaranty assets90 — — 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 Mae102,751 — 104,784 602 — 105,386 
Of consolidated trusts4,053,140 — 3,701,675 235 — 3,701,910 
Derivative liabilities at fair value152 — 1,387 7 (1,242)152 
Guaranty obligations96 — — 54 — 54 
Total financial liabilities$4,180,677 $— $3,832,394 $898 $(1,242)$3,832,050 
For a detailed description and classification of our financial instruments, see “Note 16, Fair Value” in our 2025 Form 10-K.
Fair Value Option
We generally elect the fair value option on a financial instrument when the accounting guidance would otherwise require us to separately account for a derivative that is embedded in the instrument at fair value. Under the fair value option, we carry this type of instrument, in its entirety, at fair value instead of separately accounting for the derivative.
Interest income from the mortgage loans is recorded in “Interest income: Mortgage loans” and interest expense for the debt instruments is recorded in “Interest expense: Long-term debt” in our condensed consolidated statements of operations and comprehensive income.
The following table displays the fair value and UPB of the financial instruments for which we have elected the fair value option.
As of
March 31, 2026December 31, 2025
Loans(1)
Long-Term Debt of Fannie MaeLong-Term Debt of Consolidated Trusts
Loans(1)
Long-Term Debt of Fannie MaeLong-Term Debt of Consolidated Trusts
(Dollars in millions)
Fair value$5,547 $265 $13,707 $5,464 $256 $15,060 
UPB5,943 250 14,215 5,808 250 15,516 
(1)Includes nonaccrual loans with a fair value of $28 million and $30 million as of March 31, 2026 and December 31, 2025, respectively. Includes loans that are 90 days or more past due with a fair value of $20 million and $26 million as of March 31, 2026 and December 31, 2025, respectively.
Changes in Fair Value under the Fair Value Option Election
We recorded losses of $22 million for the three months ended March 31, 2026, and gains of $125 million for the three months ended March 31, 2025, from changes in the fair value of loans recorded at fair value in “Fair value gains (losses), net” in our condensed consolidated statements of operations and comprehensive income.
We recorded gains of $87 million for the three months ended March 31, 2026, and losses of $311 million for the three months ended March 31, 2025, from changes in the fair value of long-term debt recorded at fair value in “Fair value gains (losses), net” in our condensed consolidated statements of operations and comprehensive income.