FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE000031052212/312021Q2FALSEX1us-gaap:AccountingStandardsUpdate201613Member00003105222021-01-012021-06-30xbrli:shares00003105222021-07-15iso4217:USD00003105222021-06-3000003105222020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-310000310522srt:ParentCompanyMember2021-06-300000310522srt:ParentCompanyMember2020-12-310000310522us-gaap:AllowanceForLoanAndLeaseLossesMember2021-06-300000310522us-gaap:AllowanceForLoanAndLeaseLossesMember2020-12-3100003105222021-04-012021-06-3000003105222020-04-012020-06-3000003105222020-01-012020-06-30iso4217:USDxbrli:shares0000310522srt:ParentCompanyMember2021-01-012021-06-300000310522srt:ParentCompanyMember2020-01-012020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-012021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-01-012020-06-3000003105222019-12-3100003105222020-06-300000310522fnm:SeniorPreferredStockMember2021-03-310000310522us-gaap:PreferredStockMember2021-03-310000310522us-gaap:CommonStockMember2021-03-310000310522us-gaap:RetainedEarningsMember2021-03-310000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000310522us-gaap:TreasuryStockMember2021-03-3100003105222021-03-310000310522us-gaap:RetainedEarningsMember2021-04-012021-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000310522fnm:SeniorPreferredStockMember2021-06-300000310522us-gaap:PreferredStockMember2021-06-300000310522us-gaap:CommonStockMember2021-06-300000310522us-gaap:RetainedEarningsMember2021-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000310522us-gaap:TreasuryStockMember2021-06-300000310522fnm:SeniorPreferredStockMember2020-12-310000310522us-gaap:PreferredStockMember2020-12-310000310522us-gaap:CommonStockMember2020-12-310000310522us-gaap:RetainedEarningsMember2020-12-310000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000310522us-gaap:TreasuryStockMember2020-12-310000310522us-gaap:RetainedEarningsMember2021-01-012021-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000310522fnm:SeniorPreferredStockMember2020-03-310000310522us-gaap:PreferredStockMember2020-03-310000310522us-gaap:CommonStockMember2020-03-310000310522us-gaap:RetainedEarningsMember2020-03-310000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000310522us-gaap:TreasuryStockMember2020-03-3100003105222020-03-310000310522us-gaap:RetainedEarningsMember2020-04-012020-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000310522fnm:SeniorPreferredStockMember2020-06-300000310522us-gaap:PreferredStockMember2020-06-300000310522us-gaap:CommonStockMember2020-06-300000310522us-gaap:RetainedEarningsMember2020-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000310522us-gaap:TreasuryStockMember2020-06-300000310522fnm:SeniorPreferredStockMember2019-12-310000310522us-gaap:PreferredStockMember2019-12-310000310522us-gaap:CommonStockMember2019-12-310000310522us-gaap:RetainedEarningsMember2019-12-310000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000310522us-gaap:TreasuryStockMember2019-12-3100003105222019-01-012019-12-310000310522us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberfnm:SeniorPreferredStockMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:PreferredStockMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonStockMember2019-12-310000310522us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000310522us-gaap:TreasuryStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310000310522srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310000310522us-gaap:RetainedEarningsMember2020-01-012020-06-300000310522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:PreferredStockMemberfnm:UsTreasuryMember2008-09-012008-09-300000310522us-gaap:CommonStockMemberfnm:UsTreasuryMember2008-09-012008-09-300000310522fnm:UsTreasuryMember2021-06-300000310522srt:ScenarioForecastMemberfnm:UsTreasuryMember2021-09-30xbrli:pure0000310522fnm:UsTreasuryMember2021-04-012021-06-300000310522fnm:UsTreasuryMember2020-04-012020-06-300000310522fnm:UsTreasuryMember2020-01-012020-06-300000310522fnm:UsTreasuryMember2021-01-012021-06-300000310522fnm:Fnm_SingleFamilyMemberfnm:UsTreasuryMember2021-06-300000310522us-gaap:OtherExpenseMemberfnm:UsTreasuryMember2021-04-012021-06-300000310522us-gaap:OtherExpenseMemberfnm:UsTreasuryMember2020-04-012020-06-300000310522us-gaap:OtherExpenseMemberfnm:UsTreasuryMember2021-01-012021-06-300000310522us-gaap:OtherExpenseMemberfnm:UsTreasuryMember2020-01-012020-06-300000310522fnm:FederalHousingFinanceAgencyMember2021-04-012021-06-300000310522fnm:FederalHousingFinanceAgencyMember2020-04-012020-06-300000310522fnm:FederalHousingFinanceAgencyMember2021-01-012021-06-300000310522fnm:FederalHousingFinanceAgencyMember2020-01-012020-06-300000310522fnm:CommonSecuritizationSolutionsMember2021-04-012021-06-300000310522fnm:CommonSecuritizationSolutionsMember2020-04-012020-06-300000310522fnm:CommonSecuritizationSolutionsMember2021-01-012021-06-300000310522fnm:CommonSecuritizationSolutionsMember2020-01-012020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:MortgageBackedSecuritiesMember2021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:MortgageBackedSecuritiesMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMembersrt:PartnershipInterestMember2021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMembersrt:PartnershipInterestMember2020-12-310000310522us-gaap:DebtSecuritiesMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300000310522us-gaap:DebtSecuritiesMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310000310522srt:MultifamilyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300000310522fnm:SingleClassMBSREMICMegasMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300000310522fnm:SingleClassMBSREMICMegasMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-04-012021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-04-012020-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-01-012021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-01-012020-06-300000310522srt:SingleFamilyMember2021-06-300000310522srt:SingleFamilyMember2020-12-310000310522srt:MultifamilyMember2021-06-300000310522srt:MultifamilyMember2020-12-310000310522fnm:MortgageLoansMember2021-06-300000310522fnm:MortgageLoansMember2020-12-310000310522srt:SingleFamilyMember2021-04-012021-06-300000310522srt:SingleFamilyMember2020-04-012020-06-300000310522srt:SingleFamilyMember2021-01-012021-06-300000310522srt:SingleFamilyMember2020-01-012020-06-300000310522srt:SingleFamilyMemberfnm:AllowanceForLoansRedesignatedFromHFIToHFSMember2021-04-012021-06-300000310522srt:SingleFamilyMemberfnm:AllowanceForLoansRedesignatedFromHFIToHFSMember2020-04-012020-06-300000310522srt:SingleFamilyMemberfnm:AllowanceForLoansRedesignatedFromHFIToHFSMember2021-01-012021-06-300000310522srt:SingleFamilyMemberfnm:AllowanceForLoansRedesignatedFromHFIToHFSMember2020-01-012020-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMemberfnm:FinancialAssetPastDueMember2021-06-300000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMemberfnm:FinancialAssetPastDueMember2021-06-300000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMember2021-06-300000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMember2021-06-300000310522srt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2021-06-300000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:MultifamilyMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:MultifamilyMember2021-06-300000310522srt:MultifamilyMemberfnm:FinancialAssetPastDueMember2021-06-300000310522srt:MultifamilyMemberfnm:FinancialAssetNotPastDueMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMember2021-06-300000310522us-gaap:FinancingReceivables60To89DaysPastDueMember2021-06-300000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-06-300000310522fnm:FinancialAssetPastDueMember2021-06-300000310522fnm:FinancialAssetNotPastDueMember2021-06-300000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMemberfnm:FinancialAssetPastDueMember2020-12-310000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMemberfnm:FinancialAssetPastDueMember2020-12-310000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:SingleFamilyMember2020-12-310000310522srt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:SingleFamilyMember2020-12-310000310522srt:SingleFamilyMemberfnm:FinancialAssetPastDueMember2020-12-310000310522srt:SingleFamilyMemberfnm:FinancialAssetNotPastDueMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMembersrt:MultifamilyMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:MultifamilyMember2020-12-310000310522srt:MultifamilyMemberfnm:FinancialAssetPastDueMember2020-12-310000310522srt:MultifamilyMemberfnm:FinancialAssetNotPastDueMember2020-12-310000310522us-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-310000310522us-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-310000310522us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310000310522fnm:FinancialAssetPastDueMember2020-12-310000310522fnm:FinancialAssetNotPastDueMember2020-12-310000310522srt:MinimumMembersrt:SingleFamilyMember2021-01-012021-06-300000310522srt:MinimumMembersrt:MultifamilyMember2021-01-012021-06-300000310522srt:MaximumMembersrt:MultifamilyMember2021-01-012021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMemberus-gaap:FixedRateResidentialMortgageMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMemberus-gaap:AdjustableRateResidentialMortgageMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2021-06-300000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMemberus-gaap:FixedRateResidentialMortgageMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMemberfnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-12-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2020-12-310000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMemberus-gaap:AdjustableRateResidentialMortgageMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMemberfnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-12-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2020-12-310000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioLessThanOrEqualTo80PercentMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan80PercentAndLessThanOrEqualTo90PercentMembersrt:SingleFamilyMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan90PercentAndLessThanOrEqualTo100PercentMembersrt:SingleFamilyMember2020-12-310000310522srt:SingleFamilyMemberfnm:EstimatedMarkToMarketLoanToValueRatioGreaterThan100PercentLoansRecordedInvestmentMember2020-12-310000310522us-gaap:UsGovernmentAgencyInsuredLoansMembersrt:SingleFamilyMember2021-06-300000310522us-gaap:UsGovernmentAgencyInsuredLoansMembersrt:SingleFamilyMember2020-12-310000310522srt:MultifamilyMember2021-01-012021-06-300000310522us-gaap:PassMembersrt:MultifamilyMember2021-06-300000310522us-gaap:CriticizedMembersrt:MultifamilyMember2021-06-300000310522srt:MultifamilyMember2021-06-300000310522us-gaap:PassMembersrt:MultifamilyMember2020-12-310000310522us-gaap:CriticizedMembersrt:MultifamilyMember2020-12-310000310522srt:MultifamilyMember2020-12-310000310522us-gaap:DoubtfulMembersrt:MultifamilyMember2021-06-300000310522us-gaap:DoubtfulMembersrt:MultifamilyMember2020-12-31fnm:contract0000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-04-012021-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-04-012020-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-04-012021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-04-012020-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-04-012021-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-04-012020-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-04-012021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-04-012020-06-300000310522srt:MultifamilyMember2021-04-012021-06-300000310522srt:MultifamilyMember2020-04-012020-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-01-012021-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2020-01-012020-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-01-012021-06-300000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2020-01-012020-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-01-012021-06-300000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2020-01-012020-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-01-012021-06-300000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2020-01-012020-06-300000310522srt:MultifamilyMember2020-01-012020-06-300000310522srt:SingleFamilyMemberus-gaap:FixedRateResidentialMortgageMember2021-03-310000310522fnm:FixedRateResidentialMortgage15yearMemberMembersrt:SingleFamilyMember2021-03-310000310522srt:SingleFamilyMemberus-gaap:AdjustableRateResidentialMortgageMember2021-03-310000310522fnm:OtherMortgageLoanMembersrt:SingleFamilyMember2021-03-310000310522srt:SingleFamilyMember2021-03-310000310522srt:MultifamilyMember2021-03-310000310522srt:SingleFamilyMember2021-03-310000310522srt:SingleFamilyMember2020-03-310000310522srt:SingleFamilyMember2020-12-310000310522srt:SingleFamilyMember2019-12-310000310522us-gaap:AccountingStandardsUpdate201613Membersrt:SingleFamilyMember2020-01-010000310522srt:SingleFamilyMember2021-04-012021-06-300000310522srt:SingleFamilyMember2020-04-012020-06-300000310522srt:SingleFamilyMember2021-01-012021-06-300000310522srt:SingleFamilyMember2020-01-012020-06-300000310522srt:SingleFamilyMember2021-06-300000310522srt:SingleFamilyMember2020-06-300000310522srt:MultifamilyMember2021-03-310000310522srt:MultifamilyMember2020-03-310000310522srt:MultifamilyMember2020-12-310000310522srt:MultifamilyMember2019-12-310000310522us-gaap:AccountingStandardsUpdate201613Membersrt:MultifamilyMember2020-01-010000310522srt:MultifamilyMember2021-04-012021-06-300000310522srt:MultifamilyMember2020-04-012020-06-300000310522srt:MultifamilyMember2021-01-012021-06-300000310522srt:MultifamilyMember2020-01-012020-06-300000310522srt:MultifamilyMember2021-06-300000310522srt:MultifamilyMember2020-06-300000310522us-gaap:AccountingStandardsUpdate201613Member2020-01-010000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesMember2020-12-310000310522us-gaap:USTreasurySecuritiesMember2021-06-300000310522us-gaap:USTreasurySecuritiesMember2020-12-310000310522us-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000310522us-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000310522fnm:NonmortgagerelatedsecuritiesMember2021-06-300000310522fnm:NonmortgagerelatedsecuritiesMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-06-300000310522us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesOtherMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberfnm:NonconsolidatedFannieMaesecuritiesMember2021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberfnm:NonconsolidatedFannieMaesecuritiesMember2020-12-310000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:GuaranteeTypeOtherMember2021-06-300000310522us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberus-gaap:GuaranteeTypeOtherMember2020-12-310000310522fnm:SeniorFixedBenchmarkNotesAndBondsMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFixedBenchmarkNotesAndBondsMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFixedMediumTermNotesMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFixedMediumTermNotesMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFixedOtherDebtMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFixedOtherDebtMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFixedDebtMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFixedDebtMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingMediumTermNotesMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingMediumTermNotesMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingConnecticutAvenueSecurityMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingConnecticutAvenueSecurityMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingOtherDebtMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingOtherDebtMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingDebtMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingDebtMembersrt:ParentCompanyMember2020-12-310000310522fnm:PayFixedSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-06-300000310522fnm:PayFixedSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2020-12-310000310522fnm:ReceiveFixedSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-06-300000310522fnm:ReceiveFixedSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2020-12-310000310522us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-06-300000310522us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2020-12-310000310522fnm:PayFixedSwapMember2021-06-300000310522fnm:PayFixedSwapMember2020-12-310000310522fnm:ReceiveFixedSwapMember2021-06-300000310522fnm:ReceiveFixedSwapMember2020-12-310000310522us-gaap:BasisSwapMember2021-06-300000310522us-gaap:BasisSwapMember2020-12-310000310522us-gaap:CurrencySwapMember2021-06-300000310522us-gaap:CurrencySwapMember2020-12-310000310522fnm:PayFixedSwaptionMember2021-06-300000310522fnm:PayFixedSwaptionMember2020-12-310000310522fnm:ReceiveFixedSwaptionMember2021-06-300000310522fnm:ReceiveFixedSwaptionMember2020-12-310000310522us-gaap:FutureMember2021-06-300000310522us-gaap:FutureMember2020-12-310000310522us-gaap:InterestRateContractMember2021-06-300000310522us-gaap:InterestRateContractMember2020-12-310000310522us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:InterestRateContractMember2021-06-300000310522us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:InterestRateContractMember2020-12-310000310522fnm:TotalRiskManagementDerivativesPortfolioMember2021-06-300000310522fnm:TotalRiskManagementDerivativesPortfolioMember2020-12-310000310522fnm:MortgageCommitmentsToPurchaseWholeLoansMember2021-06-300000310522fnm:MortgageCommitmentsToPurchaseWholeLoansMember2020-12-310000310522fnm:ForwardContractsToPurchaseMortgageRelatedSecuritiesMember2021-06-300000310522fnm:ForwardContractsToPurchaseMortgageRelatedSecuritiesMember2020-12-310000310522fnm:ForwardContractsToSellMortgageRelatedSecuritiesMember2021-06-300000310522fnm:ForwardContractsToSellMortgageRelatedSecuritiesMember2020-12-310000310522fnm:MortgageCommitmentDerivativesMember2021-06-300000310522fnm:MortgageCommitmentDerivativesMember2020-12-310000310522us-gaap:OtherContractMember2021-06-300000310522us-gaap:OtherContractMember2020-12-310000310522fnm:PayFixedSwapMember2021-04-012021-06-300000310522fnm:PayFixedSwapMember2020-04-012020-06-300000310522fnm:PayFixedSwapMember2021-01-012021-06-300000310522fnm:PayFixedSwapMember2020-01-012020-06-300000310522fnm:ReceiveFixedSwapMember2021-04-012021-06-300000310522fnm:ReceiveFixedSwapMember2020-04-012020-06-300000310522fnm:ReceiveFixedSwapMember2021-01-012021-06-300000310522fnm:ReceiveFixedSwapMember2020-01-012020-06-300000310522us-gaap:BasisSwapMember2021-04-012021-06-300000310522us-gaap:BasisSwapMember2020-04-012020-06-300000310522us-gaap:BasisSwapMember2021-01-012021-06-300000310522us-gaap:BasisSwapMember2020-01-012020-06-300000310522us-gaap:CurrencySwapMember2021-04-012021-06-300000310522us-gaap:CurrencySwapMember2020-04-012020-06-300000310522us-gaap:CurrencySwapMember2021-01-012021-06-300000310522us-gaap:CurrencySwapMember2020-01-012020-06-300000310522fnm:PayFixedSwaptionMember2021-04-012021-06-300000310522fnm:PayFixedSwaptionMember2020-04-012020-06-300000310522fnm:PayFixedSwaptionMember2021-01-012021-06-300000310522fnm:PayFixedSwaptionMember2020-01-012020-06-300000310522fnm:ReceiveFixedSwaptionMember2021-04-012021-06-300000310522fnm:ReceiveFixedSwaptionMember2020-04-012020-06-300000310522fnm:ReceiveFixedSwaptionMember2021-01-012021-06-300000310522fnm:ReceiveFixedSwaptionMember2020-01-012020-06-300000310522us-gaap:FutureMember2021-04-012021-06-300000310522us-gaap:FutureMember2020-04-012020-06-300000310522us-gaap:FutureMember2021-01-012021-06-300000310522us-gaap:FutureMember2020-01-012020-06-300000310522us-gaap:InterestRateContractMember2021-04-012021-06-300000310522us-gaap:InterestRateContractMember2020-04-012020-06-300000310522us-gaap:InterestRateContractMember2021-01-012021-06-300000310522us-gaap:InterestRateContractMember2020-01-012020-06-300000310522fnm:MortgageCommitmentDerivativesMember2021-04-012021-06-300000310522fnm:MortgageCommitmentDerivativesMember2020-04-012020-06-300000310522fnm:MortgageCommitmentDerivativesMember2021-01-012021-06-300000310522fnm:MortgageCommitmentDerivativesMember2020-01-012020-06-300000310522us-gaap:OtherContractMember2021-04-012021-06-300000310522us-gaap:OtherContractMember2020-04-012020-06-300000310522us-gaap:OtherContractMember2021-01-012021-06-300000310522us-gaap:OtherContractMember2020-01-012020-06-300000310522fnm:InterestRateRiskOnHeldForInvestmentMortgageLoanMemberus-gaap:InterestIncomeMember2021-04-012021-06-300000310522fnm:InterestRateRiskOnHeldForInvestmentMortgageLoanMemberus-gaap:InterestIncomeMember2021-01-012021-06-300000310522us-gaap:InterestExpenseMemberfnm:InterestRateRiskOnDebtMember2021-04-012021-06-300000310522us-gaap:InterestExpenseMemberfnm:InterestRateRiskOnDebtMember2021-01-012021-06-30fnm:segments0000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMember2021-04-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMember2021-04-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMember2020-04-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMember2020-04-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMemberfnm:UsTreasuryMember2021-04-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMemberfnm:UsTreasuryMember2021-04-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMemberfnm:UsTreasuryMember2020-04-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMemberfnm:UsTreasuryMember2020-04-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMember2021-01-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMember2021-01-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMember2020-01-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMember2020-01-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMemberfnm:UsTreasuryMember2021-01-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMemberfnm:UsTreasuryMember2021-01-012021-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_SingleFamilyMemberfnm:UsTreasuryMember2020-01-012020-06-300000310522us-gaap:OperatingSegmentsMemberfnm:Fnm_MultifamilyMemberfnm:UsTreasuryMember2020-01-012020-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThanOneHundredPercentMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:EstimatedMarkToMarketLoanToValueRatioGreaterThanOneHundredPercentMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522stpr:CAfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522stpr:CAfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:FL2021-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:FL2020-12-310000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:IL2021-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:IL2020-12-310000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:NJ2021-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberstpr:NJ2020-12-310000310522stpr:NYfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522stpr:NYfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:OtherStatesMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:OtherStatesMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:AltAMortgageLoansMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:AltAMortgageLoansMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:Vintages2004andPriorMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:Vintages2004andPriorMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:Vintages2005to2008Memberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:Vintages2005to2008Memberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:Vintages2009toCurrentYearMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:Vintages2009toCurrentYearMemberfnm:ConventionalMortgageMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522srt:MinimumMembersrt:SingleFamilyMember2020-01-012020-12-310000310522srt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522srt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:OriginalLoanToValueRatioGreaterThanEightyPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:OriginalLoanToValueRatioGreaterThanEightyPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:OriginalLoanToValueRatioLessThanOrEqualToEightyPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:OriginalLoanToValueRatioLessThanOrEqualToEightyPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:CurrentDebtServiceCoverageRatioLessThanOneHundredPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:CurrentDebtServiceCoverageRatioLessThanOneHundredPercentMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522srt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522srt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:ArchCapitalGroupLtd.Member2021-01-012021-06-300000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:ArchCapitalGroupLtd.Member2020-01-012020-12-310000310522fnm:RadianGuarantyIncMemberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:RadianGuarantyIncMemberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:MortgageGuarantyInsuranceCorp.Memberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:MortgageGuarantyInsuranceCorp.Memberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:GenworthMortgageInsuranceCorp.Member2021-01-012021-06-300000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:GenworthMortgageInsuranceCorp.Member2020-01-012020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:EssentGuarantyIncMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:EssentGuarantyIncMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:NationalMortgageInsuranceCorporationMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:NationalMortgageInsuranceCorporationMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:OthercounterpartiesMemberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:OthercounterpartiesMemberfnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:InsuranceServiceProviderConcentrationRiskMembersrt:SingleFamilyMemberfnm:GuarantyBookOfBusinessMember2021-06-300000310522fnm:PMIMortgageInsuranceCompanyMember2021-06-300000310522fnm:TriadGuarantyInsuranceCorporation1Member2021-06-300000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:DepositoryServicerMemberfnm:GuarantyBookOfBusinessMemberfnm:WellsFargoBankN.A.Member2021-01-012021-06-300000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:DepositoryServicerMemberfnm:GuarantyBookOfBusinessMemberfnm:WellsFargoBankN.A.Member2020-01-012020-12-310000310522fnm:OtherTopServicersMembersrt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:DepositoryServicerMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:OtherTopServicersMembersrt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:DepositoryServicerMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMemberfnm:NonDepositoryServicerMember2021-01-012021-06-300000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMemberfnm:NonDepositoryServicerMember2020-01-012020-12-310000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522srt:SingleFamilyMemberus-gaap:CreditConcentrationRiskMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522us-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:WellsFargoBankN.A.Member2021-01-012021-06-300000310522us-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMemberfnm:WellsFargoBankN.A.Member2020-01-012020-12-310000310522fnm:WalkerDunlopLLCMemberus-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:WalkerDunlopLLCMemberus-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522fnm:OtherTopServicersMemberus-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522fnm:OtherTopServicersMemberus-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522us-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMember2021-01-012021-06-300000310522us-gaap:CreditConcentrationRiskMembersrt:MultifamilyMemberfnm:GroupOfLargestMortgageServicersIncludingAffiliatesMemberfnm:GuarantyBookOfBusinessMember2020-01-012020-12-310000310522us-gaap:OverTheCounterMemberus-gaap:InterestRateContractMember2021-06-300000310522us-gaap:InterestRateContractMemberus-gaap:ExchangeClearedMember2021-06-300000310522us-gaap:OverTheCounterMemberus-gaap:InterestRateContractMember2020-12-310000310522us-gaap:InterestRateContractMemberus-gaap:ExchangeClearedMember2020-12-310000310522us-gaap:CashAndCashEquivalentsMember2021-06-300000310522us-gaap:CashAndCashEquivalentsMember2020-12-310000310522fnm:RestrictedCashAndCashEquivalentMember2021-06-300000310522fnm:RestrictedCashAndCashEquivalentMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberfnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:TradingSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:SwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:SwaptionMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMemberfnm:MortgageCommitmentDerivativesMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberfnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingDebtMemberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:FairValueMeasurementsRecurringMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-03-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-04-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2021-03-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2021-04-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2021-03-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2021-04-012021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2021-03-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2021-04-012021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2021-03-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2021-04-012021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-03-310000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-04-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-04-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2021-03-310000310522us-gaap:AvailableforsaleSecuritiesMember2021-04-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:MortgagesMember2021-03-310000310522us-gaap:MortgagesMember2021-04-012021-06-300000310522us-gaap:MortgagesMember2021-06-300000310522us-gaap:MortgagesMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:DerivativeMember2021-03-310000310522us-gaap:DerivativeMember2021-04-012021-06-300000310522us-gaap:DerivativeMember2021-06-300000310522us-gaap:DerivativeMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2021-03-310000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2021-04-012021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2021-03-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2021-04-012021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:LongTermDebtMember2021-03-310000310522us-gaap:LongTermDebtMember2021-04-012021-06-300000310522us-gaap:LongTermDebtMember2021-06-300000310522us-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2021-04-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2020-12-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-01-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-01-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2020-12-310000310522us-gaap:AvailableforsaleSecuritiesMember2021-01-012021-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:MortgagesMember2020-12-310000310522us-gaap:MortgagesMember2021-01-012021-06-300000310522us-gaap:MortgagesMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:DerivativeMember2020-12-310000310522us-gaap:DerivativeMember2021-01-012021-06-300000310522us-gaap:DerivativeMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2020-12-310000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2021-01-012021-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2021-01-012021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:LongTermDebtMember2020-12-310000310522us-gaap:LongTermDebtMember2021-01-012021-06-300000310522us-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-03-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-04-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-03-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-04-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-03-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-04-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2020-03-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2020-04-012020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2020-03-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2020-04-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2020-03-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2020-04-012020-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2020-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-03-310000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-04-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-04-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2020-03-310000310522us-gaap:AvailableforsaleSecuritiesMember2020-04-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:MortgagesMember2020-03-310000310522us-gaap:MortgagesMember2020-04-012020-06-300000310522us-gaap:MortgagesMember2020-06-300000310522us-gaap:MortgagesMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:DerivativeMember2020-03-310000310522us-gaap:DerivativeMember2020-04-012020-06-300000310522us-gaap:DerivativeMember2020-06-300000310522us-gaap:DerivativeMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2020-03-310000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2020-04-012020-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2020-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-03-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-04-012020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:LongTermDebtMember2020-03-310000310522us-gaap:LongTermDebtMember2020-04-012020-06-300000310522us-gaap:LongTermDebtMember2020-06-300000310522us-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2020-04-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2019-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember2020-01-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-01-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2019-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-01-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2019-12-310000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember2020-01-012020-06-300000310522us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2019-12-310000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMember2020-01-012020-06-300000310522us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2019-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMember2020-01-012020-06-300000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2019-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMember2020-01-012020-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2019-12-310000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-01-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-01-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMember2019-12-310000310522us-gaap:AvailableforsaleSecuritiesMember2020-01-012020-06-300000310522us-gaap:AvailableforsaleSecuritiesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:MortgagesMember2019-12-310000310522us-gaap:MortgagesMember2020-01-012020-06-300000310522us-gaap:MortgagesMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:DerivativeMember2019-12-310000310522us-gaap:DerivativeMember2020-01-012020-06-300000310522us-gaap:DerivativeMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2019-12-310000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMember2020-01-012020-06-300000310522fnm:SeniorFloatingDebtMemberus-gaap:LongTermDebtMembersrt:ParentCompanyMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2019-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-01-012020-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:LongTermDebtMember2019-12-310000310522us-gaap:LongTermDebtMember2020-01-012020-06-300000310522us-gaap:LongTermDebtMemberus-gaap:OtherComprehensiveIncomeMember2020-01-012020-06-300000310522us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:SubprimeMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522srt:MaximumMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:DealerMarkMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000310522us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberfnm:ConsensusWithoutInputsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:SingleVendorWithInputsMemberus-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522srt:MaximumMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AvailableforsaleSecuritiesMemberfnm:DiscountedCashFlowWithInputsMemberus-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesOtherMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberfnm:DealerMarkMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:ConsensusWithoutInputsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:ConsensusWithoutInputsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522fnm:SingleVendorWithoutInputsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522fnm:SingleVendorWithoutInputsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522fnm:InternalModelMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522fnm:InternalModelMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberfnm:AppraisalsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberfnm:AppraisalsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522fnm:InternalModelMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522fnm:InternalModelMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_MultifamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522fnm:AcceptedOffersMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522fnm:AcceptedOffersMemberus-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:AppraisalsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:AppraisalsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:WalkForwardsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:WalkForwardsMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberfnm:OtherValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-06-300000310522us-gaap:FairValueInputsLevel3Memberfnm:Fnm_SingleFamilyMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000310522us-gaap:FairValueInputsLevel1Member2021-06-300000310522us-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Member2021-06-300000310522us-gaap:FairValueDisclosureItemAmountsDomain2021-06-300000310522us-gaap:CarryingReportedAmountFairValueDisclosureMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:FairValueInputsLevel1Membersrt:ParentCompanyMember2021-06-300000310522srt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:FairValueInputsLevel3Membersrt:ParentCompanyMember2021-06-300000310522us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:ParentCompanyMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel1Member2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel2Member2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel3Member2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000310522us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000310522us-gaap:FairValueInputsLevel1Member2020-12-310000310522us-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Member2020-12-310000310522us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000310522us-gaap:FairValueDisclosureItemAmountsDomain2020-12-310000310522us-gaap:CarryingReportedAmountFairValueDisclosureMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:FairValueInputsLevel1Membersrt:ParentCompanyMember2020-12-310000310522srt:ParentCompanyMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:FairValueInputsLevel3Membersrt:ParentCompanyMember2020-12-310000310522us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:ParentCompanyMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel1Member2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel2Member2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:FairValueInputsLevel3Member2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000310522us-gaap:LoansReceivableMember2021-06-300000310522srt:ParentCompanyMemberus-gaap:LongTermDebtMember2021-06-300000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2021-06-300000310522us-gaap:LoansReceivableMember2020-12-310000310522srt:ParentCompanyMemberus-gaap:LongTermDebtMember2020-12-310000310522us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LongTermDebtMember2020-12-310000310522srt:MinimumMemberfnm:Fnm_SingleFamilyMember2021-01-012021-06-300000310522srt:MinimumMemberfnm:Fnm_SingleFamilyMember2020-01-012020-12-310000310522us-gaap:LoansReceivableMember2021-04-012021-06-300000310522us-gaap:LoansReceivableMember2021-01-012021-06-300000310522us-gaap:LoansReceivableMember2020-04-012020-06-300000310522us-gaap:LoansReceivableMember2020-01-012020-06-300000310522us-gaap:LongTermDebtMember2021-04-012021-06-300000310522us-gaap:LongTermDebtMember2021-01-012021-06-300000310522us-gaap:LongTermDebtMember2020-04-012020-06-300000310522us-gaap:LongTermDebtMember2020-01-012020-06-30

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q

    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from      to         
Commission file number: 0-50231
Federal National Mortgage Association
(Exact name of registrant as specified in its charter)
Fannie Mae
Federally chartered corporation
52-0883107
1100 15th Street, NW


800 232-6643
Washington, DC 20005
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
(Address of principal executive offices, including zip code) (Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: 
Title of each class Trading Symbol(s) Name of each exchange on which registered
None N/A N/A
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 
As of July 15, 2021, there were 1,158,087,567 shares of common stock of the registrant outstanding.



TABLE OF CONTENTS
Page
PART I—Financial Information
1
Item 1.
Item 2.
1
1
2
Summary of Our Financial Performance
2
Liquidity Provided in the First Half of 2021
4
4
7
Single-Family Mortgage Market
Single-Family Market Activity
Single-Family Business Metrics
Single-Family Business Financial Results
Single-Family Mortgage Credit Risk Management
Multifamily Mortgage Market
Multifamily Business Metrics
Multifamily Business Financial Results
Multifamily Mortgage Credit Risk Management
Institutional Counterparty Credit Risk Management
Market Risk Management, including Interest-Rate Risk Management
Fannie Mae Second Quarter 2021 Form 10-Q
i


Fannie Mae Second Quarter 2021 Form 10-Q
ii

MD&A | Introduction
PART I—FINANCIAL INFORMATION
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
We have been under conservatorship, with the Federal Housing Finance Agency (“FHFA”) acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since provided for the exercise of certain authorities by our Board of Directors. Our directors do not have any fiduciary duties to any person or entity except to the conservator and, accordingly, are not obligated to consider the interests of the company, the holders of our equity or debt securities, or the holders of Fannie Mae MBS unless specifically directed to do so by the conservator.
We do not know when or how the conservatorship will terminate, what further changes to our business will be made during or following conservatorship, what form we will have and what ownership interest, if any, our current common and preferred stockholders will hold in us after the conservatorship is terminated or whether we will continue to exist following conservatorship. Members of Congress and the Administration continue to express the importance of housing finance system reform.
We are not currently permitted to pay dividends or other distributions to stockholders. Our agreements with the U.S. Department of the Treasury (“Treasury”) include a commitment from Treasury to provide us with funds to maintain a positive net worth under specified conditions; however, the U.S. government does not guarantee our securities or other obligations. Our agreements with Treasury also include covenants that significantly restrict our business activities. For additional information on the conservatorship, the uncertainty of our future, our agreements with Treasury, and recent developments relating to housing finance reform, see “Business—Conservatorship, Treasury Agreements and Housing Finance Reform” and “Risk Factors” in our Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”) and “Legislation and Regulation” in this report.
You should read this MD&A in conjunction with our unaudited condensed consolidated financial statements and related notes in this report and the more detailed information in our 2020 Form 10-K. You can find a “Glossary of Terms Used in This Report” in our 2020 Form 10-K.
Forward-looking statements in this report are based on management’s current expectations and are subject to significant uncertainties and changes in circumstances, as we describe in “Forward-Looking Statements.” Future events and our future results may differ materially from those reflected in our forward-looking statements due to a variety of factors, including those discussed in “Risk Factors” and elsewhere in this report and in our 2020 Form 10-K.
Introduction
Fannie Mae is a leading source of financing for mortgages in the United States, with $4.2 trillion in assets as of June 30, 2021. Organized as a government-sponsored entity, Fannie Mae is a shareholder-owned corporation. Our charter is an act of Congress, and we have a mission under that charter to provide liquidity and stability to the residential mortgage market and to promote access to mortgage credit. We were initially established in 1938.
Our revenues are primarily driven by guaranty fees we receive for assuming the credit risk on loans underlying the mortgage-backed securities we issue. We do not originate loans or lend money directly to borrowers. Rather, we work primarily with lenders who originate loans to borrowers. We securitize those loans into Fannie Mae mortgage-backed securities that we guarantee (which we refer to as Fannie Mae MBS or our MBS).
Effectively managing credit risk is key to our business. In exchange for assuming credit risk on the loans we acquire, we receive guaranty fees. These fees take into account the credit risk characteristics of the loans we acquire. Guaranty fees are set at the time we acquire loans and do not change over the life of the loan. How long a loan remains in our guaranty book is heavily dependent on interest rates. When interest rates decrease, a larger portion of our book of business turns over as more loans refinance. On the other hand, as interest rates increase, fewer loans refinance and our book turns over more slowly. Since guaranty fees are set at the time a loan is originated, the impact of any change in guaranty fees on future revenues is dependent on the rate at which newly originated loans replace the existing loans in our book of business.
Fannie Mae Second Quarter 2021 Form 10-Q
1

MD&A | Executive Summary | Summary of Our Financial Performance
Executive Summary
Summary of Our Financial Performance
FNM-20210630_G1.JPG     
Net revenues increased $2.5 billion in the second quarter of 2021 compared with the second quarter of 2020, primarily due to an increase in net amortization income as a result of high prepayment volumes from loan refinancings in the second quarter of 2021 driven by the continued low interest-rate environment, as well as higher base guaranty fees due to an increase in the size of our guaranty book of business. High prepayments result in accelerated amortization of cost basis adjustments, including upfront fees we received at the time of loan acquisition. We anticipate net revenues from prepayment activity will begin to slow in the second half of 2021 as we expect mortgage interest rates are likely to rise modestly, resulting in fewer borrowers who can benefit from a refinancing. Lower levels of refinancing will likely slow the accelerated amortization of cost basis adjustments for loans in our book of business as loans remain outstanding for longer, and therefore will likely result in lower amortization income in any one period.
Net income increased $4.6 billion in the second quarter of 2021 compared with the second quarter of 2020, driven primarily by a shift from credit-related expense in the second quarter of 2020 to credit-related income in the second quarter of 2021 and higher net revenues as discussed above. Credit-related expense in the second quarter of 2020 was driven by economic dislocation caused by the COVID-19 pandemic. Credit-related income in the second quarter of 2021 was primarily driven by strong actual and forecasted home price growth and a benefit from the redesignation of reperforming loans. Additional drivers of increased net income in the second quarter of 2021 included lower fair value losses and an increase in investment gains related to reperforming loan sales.
Net worth increased to $37.3 billion as of June 30, 2021 from $30.2 billion as of March 31, 2021. The increase is attributable to $7.1 billion of comprehensive income for the second quarter of 2021.
Fannie Mae Second Quarter 2021 Form 10-Q
2

MD&A | Executive Summary | Summary of Our Financial Performance
FNM-20210630_G2.JPG     
Net revenues increased $3.9 billion in the first half of 2021 compared with the first half of 2020, primarily due to an increase in net amortization income as a result of high prepayment volumes from loan refinancings in the first half of 2021 driven by the low interest-rate environment, as well as higher base guaranty fees due an increase in the size of our guaranty book of business.
Net income increased $9.1 billion in the first half of 2021 compared with the first half of 2020, primarily driven by a shift from credit-related expense in the first half of 2020 to credit-related income in the first half of 2021 and higher net revenues as discussed above. Credit-related expense in the first half of 2020 was driven by economic dislocation caused by the COVID-19 pandemic. Credit-related income in the first half of 2021 was primarily driven by strong actual and forecasted home price growth and a benefit from the redesignation of reperforming loans. Additional drivers of increased net income included a shift from fair value losses in the first half of 2020 to fair value gains in the first half of 2021 and a shift from investment losses in the first half of 2020 to investment gains in the first half of 2021 primarily due to reperforming loan sales in 2021.
Net worth increased to $37.3 billion as of June 30, 2021 from $25.3 billion as of December 31, 2020. The increase is attributable to $12.1 billion of comprehensive income for the first half of 2021.
Fannie Mae Second Quarter 2021 Form 10-Q
3

MD&A | Executive Summary | Liquidity Provided in First Half of 2021
Liquidity Provided in the First Half of 2021
Through our single-family and multifamily business segments, we provided $806 billion in liquidity to the mortgage market in the first half of 2021, enabling the financing of approximately 3.1 million home purchases, refinancings or rental units.
Fannie Mae Provided $806 Billion in Liquidity in the First Half of 2021
Unpaid Principal Balance Units
$229B
759K
Single-Family Home Purchases
$545B
2.0M
Single-Family Refinancings
$32B
345K
Multifamily Rental Units
We continued our commitment to green financing in the first half of 2021, issuing a total of $8.6 billion in multifamily green MBS, $152 million in single-family green MBS and $1.6 billion in multifamily green resecuritizations. We also issued $5.6 billion in multifamily social MBS and $315 million in multifamily social resecuritizations in the first half of 2021. These social bonds were issued in alignment with our Sustainable Bond Framework, which guides our issuances of sustainable debt bonds and sustainable MBS that support housing affordability and green financing. For information about our green bonds and our Sustainable Bond Framework, see “Directors, Executive Officers and Corporate Governance—ESG Matters” in our 2020 Form 10-K.
Legislation and Regulation
The information in this section updates and supplements information regarding legislative, regulatory, conservatorship and other developments affecting our business set forth in “Business—Conservatorship, Treasury Agreements and Housing Finance Reform” and “Business—Legislation and Regulation” in our 2020 Form 10-K, as well as in “MD&A—Legislation and Regulation” in our Form 10-Q for the quarter ended March 31, 2021 (“First Quarter 2021 Form 10-Q”). Also see “Risk Factors” in our 2020 Form 10-K and in this report for discussions of risks relating to legislative and regulatory matters.
Resolution Planning Final Rule
In May 2021, FHFA issued a final rule requiring us to develop a plan for submission to FHFA that would assist FHFA in planning for the rapid and orderly resolution of the company if FHFA is appointed as our receiver. The stated goals in the rule for our resolution plan are to:
minimize disruption in the national housing finance markets by providing for the continued operation of our core business lines in receivership by a newly constituted limited-life regulated entity;
preserve the value of our franchise and assets;
facilitate the division of assets and liabilities between the limited-life regulated entity and the receivership estate;
ensure that investors in our guaranteed mortgage-backed securities and our unsecured debt bear losses in the order of their priority established under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended, including by the Housing and Economic Recovery Act of 2008 (together, the “GSE Act”), while minimizing unnecessary losses and costs to these investors; and
foster market discipline by making clear that no extraordinary government support will be available to indemnify investors against losses or fund the resolution of the company.
The rule establishes that our resolution planning process would begin with the identification of our core business lines—those business lines that plausibly would continue to operate in a limited-life regulated entity. Our initial identification of core business lines must be submitted to FHFA by October 6, 2021. The rule requires that we submit our initial resolution plan to FHFA by April 6, 2023, and subsequent resolution plans not later than every two years thereafter unless otherwise notified by FHFA. The rule provides a set of required and prohibited assumptions the resolution plan should reflect, including assuming severely adverse economic conditions and the prohibition of assuming extraordinary support by the U.S. government (including support under our senior preferred stock purchase agreement with Treasury).
Fannie Mae Second Quarter 2021 Form 10-Q
4

MD&A | Legislation and Regulation
Executive Compensation Request for Input
On June 10, 2021, FHFA issued a request for input on executive compensation at Fannie Mae, Freddie Mac and the Federal Home Loan Banks. FHFA has significant oversight and approval rights over our executive compensation arrangements both as our conservator and as our regulator. The request for input asks for feedback from the public within 60 days on a number of questions relating to our executive compensation program covering a variety of topics. Changes in our executive compensation program could affect our ability to retain and recruit executive officers. See “Risk Factors—GSE and Conservatorship Risk” in this report for a discussion of how our business and financial results may be materially adversely affected if we are unable to retain and recruit well-qualified executives and other employees.
Supreme Court Decision on Housing and Economic Recovery Act; Change in FHFA Director
In its opinion in Collins et al. v. Yellen, Secretary of the Treasury, et al., issued on June 23, 2021, the Supreme Court concluded that the for-cause restriction on the President’s power to remove the FHFA Director under the Housing and Economic Recovery Act of 2008 violates the Constitution’s separation of powers. Accordingly, the Supreme Court’s decision confirmed that the President has the power to remove the Director of FHFA for any reason, not just for cause.
On June 23, 2021, President Biden appointed Sandra Thompson as the Acting Director of FHFA to replace Mark Calabria. Ms. Thompson has served as Deputy Director of FHFA’s Division of Housing Mission and Goals since 2013. Changes in leadership at FHFA could result in significant changes to the goals FHFA establishes for us and could have a material impact on our business and financial results. See “Risk Factors—GSE and Conservatorship Risk” in our 2020 Form 10-K for a discussion of how our business activities are significantly affected by the conservatorship.
The Supreme Court’s opinion in Collins v. Yellen also included an expansive interpretation of FHFA’s authority as conservator under the Housing and Economic Recovery Act, noting that “when the FHFA acts as a conservator, it may aim to rehabilitate the regulated entity in a way that, while not in the best interests of the regulated entity, is beneficial to the Agency and, by extension, the public it serves.” See “Legal Proceedings” for more information about the Supreme Court’s decision in Collins v. Yellen.
Federal Eviction Moratorium
In June 2021, the Centers for Disease Control and Prevention (the “CDC”) further extended through July 31, 2021 its order prohibiting the eviction of any tenant, lessee or resident of a residential property for nonpayment of rent, if such person provides a specified declaration attesting that they meet the requirements to obtain the protection of the order. In its press release announcing this extension, the CDC indicated that this is intended to be the final extension of the moratorium. The requirements to obtain the protection of the order included a specified income cap and an inability to pay full rent. While the CDC order did not impose any obligations on Fannie Mae or its servicers to ensure compliance by borrowers, a borrower’s income may have been impacted by tenants who did not pay their rent while under the protection of the CDC order. As a result, this eviction moratorium could adversely affect the ability of some of our borrowers to make payments on their loans.
Final CFPB Rule Regarding Foreclosures
On June 28, 2021, the Consumer Financial Protection Bureau (the “CFPB”) issued a final rule that prohibits servicers from initiating new foreclosures on certain mortgage loans secured by the borrower’s principal residence until after December 31, 2021. The CFPB rule provides for limited exceptions to this foreclosure prohibition, including for abandoned properties and for loans that were more than 120 days delinquent before March 2020. The effective date of the CFPB rule is August 31, 2021. Fannie Mae had already suspended foreclosures and certain foreclosure-related activities for single-family properties, other than for vacant or abandoned properties, through July 31, 2021. On June 29, 2021, FHFA announced that Fannie Mae servicers will not be permitted to initiate foreclosures that would be prohibited under the CFPB rule before the rule’s August 31, 2021 effective date. Because the CFPB’s rule extends the time period before certain foreclosures can be initiated by our servicers, it may increase our costs relating to foreclosures and foreclosure-related activities, which could adversely affect our credit-related expenses.
FHFA Policy Statement on Fair Lending
On July 1, 2021, FHFA issued a policy statement on fair lending. FHFA’s policy statement states that FHFA will engage in comprehensive fair lending oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and adopts specified high-level policies to guide its fair lending monitoring, supervision and enforcement. FHFA requested public comments on the policy statement by September 7, 2021.
Fannie Mae Second Quarter 2021 Form 10-Q
5

MD&A | Legislation and Regulation
Elimination of Adverse Market Refinance Fee
In July 2021, FHFA directed us to eliminate the adverse market refinance fee on our single-family loans effective August 1, 2021. The adverse market refinance fee, which became effective in December 2020, was a one-time charge of 0.5% of the loan amount that the lender was required to pay at the time we acquired a loan. The adverse market refinance fee applied to most of the single-family refinance loans we acquired from December 2020 through July 2021 and was intended to help us offset some of the higher projected expenses and risk due to the COVID-19 pandemic. In its news release announcing the elimination of the fee, FHFA stated that “the success of FHFA and the Enterprises’ COVID-19 policies reduced the impact of the pandemic and were effective enough to warrant an early conclusion of the Adverse Market Refinance Fee.” As described in “Single-Family Business—Single-Family Business Metrics,” we expect our average charged guaranty fee on new single-family conventional acquisitions to decrease in the second half of 2021 as a result of the elimination of the adverse market refinance fee.
Proposed Legislation Extending Guaranty Fee Payments to Treasury
As described in our 2020 Form 10-K, in December 2011, Congress enacted the Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) under which, at the direction of FHFA, we increased the guaranty fee on all single-family residential mortgages delivered to us by 10 basis points effective April 1, 2012. The revenue generated by this fee increase is paid to Treasury and helps offset the cost of a two-month extension of the payroll tax cut in early 2012. In 2012, FHFA advised us to remit this fee increase to Treasury with respect to all single-family loans acquired by us on or after April 1, 2012 and before January 1, 2022, and to continue to remit these amounts to Treasury on and after January 1, 2022 with respect to loans we acquired before this date until those loans are paid off or otherwise liquidated.
On August 1, 2021, the Senate released proposed legislation that would extend our obligation to pay these fees to Treasury beyond our current obligation. If enacted in its current form, the Infrastructure Investment and Jobs Act would amend the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended, to extend the current requirement that we pay to Treasury 10 basis points in fees on single-family residential mortgages delivered to us by an additional eleven years to October 1, 2032. The revenue generated by this fee extension would help offset the cost of infrastructure spending.
Fannie Mae Second Quarter 2021 Form 10-Q
6

MD&A | Key Market Economic Indicators
Key Market Economic Indicators
Below we discuss how varying macroeconomic conditions can influence our financial results across different business and economic environments. Our forecasts and expectations are subject to many uncertainties, including the pace and nature of economic growth, and may change, perhaps substantially, from our current expectations.
Selected Benchmark Interest Rates
FNM-20210630_G3.JPG
(1)Refers to the U.S. weekly average fixed-rate mortgage rate according to Freddie Mac's Primary Mortgage Market Survey®. These rates are reported using the latest available data for a given period.
(2)According to Bloomberg.
(3)Refers to the daily rate per the Federal Reserve Bank of New York.
How interest rates can affect our financial results
Net interest income. In a rising interest-rate environment, our mortgage loans tend to prepay more slowly. We amortize various cost basis adjustments over the life of the mortgage loan, including those relating to loan-level pricing adjustments we receive as upfront fees at the time we acquire single-family loans. As a result, any prepayment of a loan results in an accelerated realization of those upfront fees as income. Therefore, as loan prepayments slow, the accelerated realization of amortization income also slows. Conversely, in a declining interest-rate environment, our mortgage loans tend to prepay faster, typically resulting in the opposite trend of higher net amortization income from cost basis adjustments on mortgage loans and related debt.
Fair value gains (losses). We have exposure to fair value gains and losses resulting from changes in interest rates, primarily through our mortgage commitment derivatives and risk management derivatives, which we mark to market through earnings. Fair value gains and losses on our mortgage commitment derivatives fluctuate depending on how interest rates and prices move between the time the commitment is opened and settled. The net position and composition across the yield curve of our risk management derivatives changes over time. As a result, interest rate changes (increases or decreases) and yield curve changes (parallel, steepening or flattening shifts) will generate varying amounts of fair value gains or losses in a given period.
Credit-related income (expense). Increases in mortgage interest rates tend to lengthen the expected lives of our loans, which generally increases the expected impairment and provision for credit losses on such loans. Decreases in mortgage interest rates tend to shorten the expected lives of our loans, which reduces the impairment and provision for credit losses on such loans.
Fannie Mae Second Quarter 2021 Form 10-Q
7

MD&A | Key Market Economic Indicators
In January 2021, we began applying fair value hedge accounting to reduce the impact of changes in interest rates, or the interest-rate effect, on our financial results. For additional information on how hedge accounting supports our interest-rate risk management strategy and our fair value hedge accounting policy, see “Consolidated Results of Operations—Hedge Accounting Impact,” “Risk Management—Market Risk Management, including Interest-Rate Risk Management—Earnings Exposure to Interest-Rate Risk” and “Note 1, Summary of Significant Accounting Policies.”
Single-Family Quarterly Home Price Growth Rate(1)

FNM-20210630_G4.JPG
(1)Calculated internally using property data on loans purchased by Fannie Mae, Freddie Mac and other third-party home sales data. Fannie Mae’s home price index is a weighted repeat-transactions index, measuring average price changes in repeat sales on the same properties. Fannie Mae’s home price index excludes prices on properties sold in foreclosure. Fannie Mae’s home price estimates are based on preliminary data and are subject to change as additional data becomes available.
Home prices and how they can affect our financial results
Actual and forecasted home prices impact our provision or benefit for credit losses.
Changes in home prices affect the amount of equity that borrowers have in their homes. Borrowers with less equity typically have higher delinquency and default rates.
As home prices increase, the severity of losses we incur on defaulted loans that we hold or guarantee decreases because the amount we can recover from the properties securing the loans increases. Declines in home prices increase the losses we incur on defaulted loans.
Home prices also impact the growth and size of our guaranty book of business. As home prices rise, the principal balance of loans associated with purchase money mortgages may increase, which affects the size of our book. Additionally, rising home prices can increase the amount of equity borrowers have in their home, which may lead to an increase in origination volumes for cash-out refinance loans with higher principal balances than the existing loan. Replacing existing loans with newly acquired cash-out refinances can affect the growth and size of our book.
Home price growth in the first half of 2021 was 10.5%, the highest six-month home price growth rate in the history of the Fannie Mae national home price index, driven by continued low interest rates and low levels of housing supply relative to the level of demand.
We currently expect home price growth on a national basis in 2021 of 14.8%, which is a significant increase compared to our prior forecast for the year and higher than the strong home price growth realized in 2020 of 10.5%. We expect significant regional variation in the timing and rate of home price growth and expect home price growth to moderate next year.
Our forecasts and expectations are subject to many uncertainties and may change, perhaps substantially, from our current forecasts and expectations. For example, home price growth could slow if growth in gross domestic product ("GDP") is weaker than we currently expect, if unemployment, particularly among existing homeowners and potential new home buyers, is higher than we expect, or if the housing market is more sensitive to economic and labor-market weaknesses than we expect. For further discussion on housing activity, see “Single-Family Business—Single-Family Mortgage Market” and “Multifamily Business—Multifamily Mortgage Market.”

Fannie Mae Second Quarter 2021 Form 10-Q
8

MD&A | Key Market Economic Indicators
New Housing Starts(1)
FNM-20210630_G5.JPG
(1)According to U.S. Census Bureau and subject to revision.
How housing activity can affect our financial results
Two key aspects of economic activity that can impact supply and demand for housing and thus mortgage lending are the rates of household formation and housing construction.
Household formation is a key driver of demand for both single-family and multifamily housing. A newly formed household will either rent or purchase a home. Thus, changes in the pace of household formation can affect prices and credit performance as well as the degree of loss on defaulted loans.
Growth of household formation stimulates homebuilding. Homebuilding has typically been a cyclical leader, weakening prior to a slowdown in U.S. economic activity and accelerating prior to a recovery, which contributes to the growth of GDP and employment. However, the housing sector’s performance may vary from its historical precedent due to the many uncertainties surrounding future economic or housing policy as well as the continued impact of the COVID-19 pandemic on the economy and the housing market.
With regard to housing construction, a decline in housing starts results in fewer new homes being available for purchase and potentially a lower volume of mortgage originations. Construction activity can also affect credit losses through its impact on home prices. If the growth of demand exceeds the growth of supply, prices will appreciate and impact the risk profile of newly originated home purchase mortgages, depending on where in the housing cycle the market is. A reduced pace of construction is often associated with a broader economic slowdown and may signal expected increases in delinquency and losses on defaulted loans.
Home sales fell in the second quarter of 2021, declining from the high pace seen at the end of 2020, due in part to a lack of available homes for sale, along with the associated surge in home prices, which reduced housing affordability. We expect a continued lack of inventory for both new and existing homes will likely continue to constrain sales into the third quarter. Due to the current strength in housing demand and low supply of homes for sale, we expect single-family housing starts to be higher in 2021 than in 2020. Despite the constraints on home sales, we continue to expect housing activity to remain solid throughout 2021.
Construction demand in the multifamily sector strengthened in the first half of 2021, with multifamily starts posting a solid increase during the period. While we expect multifamily starts to decline in the second half of 2021, we expect they will increase overall in 2021 on annual basis.
Fannie Mae Second Quarter 2021 Form 10-Q
9

MD&A | Key Market Economic Indicators
GDP, Unemployment Rate and Personal Consumption
FNM-20210630_G6.JPG
(1)Real GDP growth (decline) and real personal consumption growth (decline) are based on the quarterly series calculated by the Bureau of Economic Analysis and are subject to revision.
(2)According to the U.S. Bureau of Labor Statistics and subject to revision.
How GDP, the unemployment rate and personal consumption can affect our financial results
Changes in GDP, the unemployment rate and personal consumption can affect several mortgage market factors, including the demand for both single-family and multifamily housing and the level of loan delinquencies, which in turn can lead to credit losses.
Economic growth is a key factor for the performance of mortgage-related assets. In a growing economy, employment and income are typically rising, thus allowing existing borrowers to meet payment requirements, existing homeowners to consider purchasing and moving to another home, and renters to consider becoming homeowners. Homebuilding typically increases to meet the rise in demand. Mortgage delinquencies typically fall in an expanding economy, thereby decreasing credit losses.
In a slowing economy, employment, income growth and housing activity typically slow as an early indicator of reduced economic activity. Typically, as an economic slowdown intensifies, households reduce their spending. This reduction in consumption then accelerates the slowdown. An economic slowdown can lead to employment losses, impairing the ability of borrowers and renters to meet mortgage and rental payments, thus causing loan delinquencies to rise. Home sales and mortgage originations also typically fall in a slowing economy.
The economic recovery from the impact of the COVID-19 pandemic began in the second half of 2020 and continued its momentum through the first half of 2021, with the second quarter 2021 GDP number pushing GDP above its pre-pandemic level. The pace of vaccinations, along with the lifting of business restrictions across the country, has led to further strength in consumer spending and GDP growth. While GDP has surpassed its pre-pandemic level, the pace and strength of economic expansion remains uncertain and will depend on a number of factors, including current labor market shortages, recovery of economic activity outside the U.S., global supply chain disruptions, the impact of the highly transmissible Delta variant of the coronavirus or the emergence of other new, more infectious variants of the coronavirus, COVID-19 vaccination rates, and the potential for higher inflation.
Fannie Mae Second Quarter 2021 Form 10-Q
10

MD&A | Key Market Economic Indicators
See “Risk Factors” in this report and in our 2020 Form 10-K for further discussion of risks to our business and financial results associated with interest rates, home prices, housing activity and economic conditions, as well as the COVID-19 pandemic.

Consolidated Results of Operations
This section discusses our condensed consolidated results of operations and should be read together with our condensed consolidated financial statements and the accompanying notes.
Summary of Condensed Consolidated Results of Operations
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 Variance 2021 2020 Variance
(Dollars in millions)
Net interest income(1)
$ 8,286  $ 5,777  $ 2,509  $ 15,028  $ 11,124  $ 3,904 
Fee and other income 103  90  13  190  210  (20)
Net revenues 8,389  5,867  2,522  15,218  11,334  3,884 
Investment gains (losses), net 646  149  497  691  (9) 700 
Fair value gains (losses), net(1)
(446) (1,018) 572  338  (1,294) 1,632 
Administrative expenses (746) (754) (1,494) (1,503)
Credit-related income (expenses):
Benefit (provision) for credit losses 2,588  (12) 2,600  3,353  (2,595) 5,948 
Foreclosed property expense (41) (10) (31) (36) (90) 54 
Total credit-related income (expenses) 2,547  (22) 2,569  3,317  (2,685) 6,002 
TCCA fees
(758) (660) (98) (1,489) (1,297) (192)
Credit enhancement expense(2)
(274) (360) 86  (558) (736) 178 
Change in expected credit enhancement recoveries(3)
(44) 273  (317) (75) 461  (536)
Other expenses, net(4)
(280) (261) (19) (599) (479) (120)
Income before federal income taxes 9,034  3,214  5,820  15,349  3,792  11,557 
Provision for federal income taxes (1,882) (669) (1,213) (3,204) (786) (2,418)
Net income $ 7,152  $ 2,545  $ 4,607  $ 12,145  $ 3,006  $ 9,139 
Total comprehensive income $ 7,120  $ 2,532  $ 4,588  $ 12,086  $ 3,008  $ 9,078 
(1)In January 2021, we began applying fair value hedge accounting. For qualifying hedging relationships, fair value changes attributable to movements in the designated benchmark interest rates for hedged mortgage loans and funding debt and the fair value change of the designated portion of the paired interest-rate swaps are recognized in “Net interest income.” In prior years, all fair value changes for interest-rate swaps were recognized in “Fair value gains (losses), net.” See “Hedge Accounting Impact” below and “Note 1, Summary of Significant Accounting Policies” for more information about our hedge accounting program.
(2)Consists of costs associated with our freestanding credit enhancements, which primarily include our Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk TransferTM (“CIRTTM”) programs, enterprise-paid mortgage insurance (“EPMI”), and certain lender risk-sharing programs.
(3)Consists of increase (decrease) in benefits recognized from our freestanding credit enhancements, including any realized amounts.
(4)Consists of debt extinguishment gains and losses, housing trust fund expenses, loan subservicing costs, servicer fees paid in connection with certain loss mitigation activities, and gains and losses from partnership investments.
Hedge Accounting Impact
Our earnings can experience volatility due to interest-rate changes and differing accounting treatments that apply to certain financial instruments on our balance sheet. Specifically, we have exposure to earnings volatility that is driven by changes in interest rates in two primary areas: our net portfolio and our consolidated MBS trusts. The exposure in the net portfolio is primarily driven by changes in the fair value of risk management derivatives, mortgage commitments, and certain assets, primarily securities, that are carried at fair value. The exposure related to our consolidated MBS trusts relates to changes in our credit loss reserves driven by changes in interest rates.
Fannie Mae Second Quarter 2021 Form 10-Q
11

MD&A | Consolidated Results of Operations
To help address this volatility, we began applying fair value hedge accounting in January 2021 to reduce the current-period impact on our earnings related to changes in interest rates, particularly the London Inter-bank Offered Rate (“LIBOR”) and the Secured Overnight Financing Rate (“SOFR”). Hedge accounting aligns the timing of when we recognize fair value changes in hedged items attributable to these benchmark interest-rate movements with fair value changes in the hedging instrument.
Under our hedge accounting program, we establish fair value hedging relationships between risk management derivatives, specifically interest-rate swaps, and qualifying portfolios of mortgage loans or funding debt. For hedging relationships that are highly effective, we recognize changes in the fair value of the hedged mortgage loans or funding debt attributable to movements in the benchmark interest rate in net interest income. We then offset that impact with the changes in fair value of the designated interest-rate swap. This has the effect of deferring the recognition of gains and losses on the hedging instrument to future periods by recognizing the offsetting gain or loss on the hedged item as a cost basis adjustment on the underlying loans or funding debt at the end of the hedge term. The cost basis adjustment is then subsequently amortized back into earnings. Accordingly, we deferred $284 million in fair value gains and $875 million in fair value losses as cost basis adjustments in the second quarter and first half of 2021, respectively, on our hedged loans and funding debt that will be amortized through “Net interest income” over the contractual life of the respective hedged items.
Although hedge accounting reduces the earnings volatility related to benchmark interest rate movements in any given period, it does not impact the amount of interest-rate-driven gains or losses we will ultimately recognize through earnings.
While we expect the earnings volatility related to benchmark interest rate movements to be meaningfully reduced as a result of our adoption of hedge accounting, earnings variability driven by other factors, such as spreads, remains. In addition, hedge accounting is not designed to address earnings volatility driven by changes in cost basis amortization recognized in net interest income, which can be influenced by interest rate changes.
See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional discussion of our fair value hedge accounting policy and related disclosures.
Net Interest Income
Our primary source of net interest income is guaranty fees we receive for managing the credit risk on loans underlying Fannie Mae MBS held by third parties.
Guaranty fees consist of two primary components:
base guaranty fees that we receive over the life of the loan; and
upfront fees that we receive at the time of loan acquisition primarily related to single-family loan-level pricing adjustments and other fees we receive from lenders, which are amortized into net interest income as cost basis adjustments over the contractual life of the loan. We refer to this as amortization income.
We recognize almost all of our guaranty fee revenue in net interest income because we consolidate the substantial majority of loans underlying our Fannie Mae MBS in consolidated trusts in our condensed consolidated balance sheets. Guaranty fees from these loans account for nearly all of the difference between the interest income on loans in consolidated trusts and the interest expense on the debt of consolidated trusts.
The timing of when we recognize amortization income can vary based on a number of factors, the most significant of which is a change in mortgage interest rates. In a rising interest-rate environment, our mortgage loans tend to prepay more slowly, which typically results in lower net amortization income. Conversely, in a declining interest-rate environment, our mortgage loans tend to prepay faster, typically resulting in higher net amortization income.
We also recognize net interest income on the difference between interest income earned on the assets in our retained mortgage portfolio and our other investments portfolio (collectively, our “portfolios”) and the interest expense associated with the debt that funds those assets. See “Retained Mortgage Portfolio” and “Liquidity and Capital Management—Liquidity Management—Other Investments Portfolio” for more information about our portfolios.
Beginning in January 2021, we recognize fair value changes attributable to movements in benchmark interest rates for hedged mortgage loans and funding debt and total fair value changes for designated interest-rate swaps, as well as the amortization of hedge-related basis adjustments on the associated mortgage loans or funding debt and any related interest accrual on the swap, as a component of net interest income. The income or expense associated with this activity is presented in the “Income from hedge accounting” line item in the table below.
Fannie Mae Second Quarter 2021 Form 10-Q
12

MD&A | Consolidated Results of Operations
The table below displays the components of our net interest income from our guaranty book of business, which we discuss in “Guaranty Book of Business,” and from our portfolios, as well as from hedge accounting.
Components of Net Interest Income
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 Variance 2021 2020 Variance
(Dollars in millions)
Net interest income from guaranty book of business:
Base guaranty fee income(1)
$ 3,420  $ 2,677  $ 743  $ 6,617  $ 5,277  $ 1,340 
Base guaranty fee income related to TCCA(2)
758  660  98  1,489  1,297  192 
Net amortization income(3)
3,736  1,955  1,781  6,262  3,461  2,801 
Total net interest income from guaranty book of business
7,914  5,292  2,622  14,368  10,035  4,333 
Net interest income from portfolios 306  485  (179) 572  1,089  (517)
Income from hedge accounting(4)
66  —  66  88  —  88 
Total net interest income
$ 8,286  $ 5,777  $ 2,509  $ 15,028  $ 11,124  $ 3,904 
(1)Excludes revenues generated by the 10 basis point guaranty fee increase we implemented pursuant to the TCCA, which is remitted to Treasury and not retained by us.
(2)Represents revenues generated by the 10 basis point guaranty fee increase we implemented pursuant to the TCCA, the incremental revenue from which is remitted to Treasury and not retained by us. See “Note 1, Summary of Significant Accounting Policies” for more information on guidance we received from FHFA regarding TCCA fee amounts that we are not required to accrue or remit to Treasury with respect to delinquent loans backing MBS trusts.
(3)Net amortization income refers to the amortization of premiums and discounts on mortgage loans and debt of consolidated trusts. These cost basis adjustments represent the difference between the initial fair value and the carrying value of these instruments as well upfront fees we receive at the time of loan acquisition. It does not include the amortization of cost basis adjustments resulting from hedge accounting, which is included in income from hedge accounting.
(4)Consists of gains and losses from fair value hedging relationships that have been presented in net interest income. See “Note 8, Derivative Instruments” for additional information on the effect of our fair value hedge accounting program and related disclosures.
Net interest income increased in the second quarter and first half of 2021 compared with the second quarter and first half of 2020, primarily driven by higher net amortization income and higher base guaranty fee income, partially offset by lower income from portfolios.
Higher net amortization income. A continued low interest-rate environment in the second quarter and first half of 2021 led to elevated prepayment volumes as loans refinanced, which accelerated the amortization of cost basis adjustments, including upfront fees we recognize over the contractual life of the loans, on mortgage loans of consolidated trusts and the related debt.
Higher base guaranty fee income. An increase in the size of our guaranty book of business over the prior year was the primary driver of the increase in base guaranty fee income in the second quarter and first half of 2021.
Lower income from portfolios. Lower yields in the second quarter and first half of 2021 on mortgage loans and assets in our other investments portfolio, partially offset by a decrease in interest expense on our funding debt due to a decrease in average borrowing costs, contributed to a decline in income from portfolios in the second quarter and first half of 2021.
We have been in a historically low interest-rate environment over the last 18 months, which has contributed to continued strong mortgage refinance activity and high levels of amortization income. Over half of our single-family guaranty book of business has been originated in the last 18 months as borrowers took advantage of the low rate environment. Refinancing activity began to taper in the second quarter of 2021 as fewer borrowers could benefit from refinancing. We expect that lower levels of refinancing in the future will likely slow the rate at which we amortize cost basis adjustments. This will likely result in lower amortization income in any one period as the average life of our outstanding book of business may extend as our book of business turns over more slowly. In addition, a slower turnover rate would limit the impact that changes in our guaranty fees have on our future revenues as any changes would take longer to meaningfully impact the average charged guaranty fee on our total book of business.
For loans negatively impacted by the COVID-19 pandemic, we continue to recognize interest for up to six months of delinquency provided that the loans were either current at March 1, 2020 or originated after March 1, 2020. We continue to accrue interest income beyond six months of delinquency provided that the collection of principal and interest
Fannie Mae Second Quarter 2021 Form 10-Q
13

MD&A | Consolidated Results of Operations
continues to be reasonably assured. This resulted in a large portion of delinquent loans, including those in a forbearance arrangement, remaining on accrual status as of June 30, 2021. See “Note 3, Mortgage Loans” for more information about our nonaccrual accounting policy and “Single-Family Business—Single-Family Mortgage Credit Risk Management—Single-Family Problem Loan Management” and “Multifamily Business—Multifamily Mortgage Credit Risk Management—Multifamily Problem Loan Management and Foreclosure Prevention” for details about loans in forbearance, as well as on-balance sheet loans past due 90 days or more and continuing to accrue interest.
Analysis of Net Interest Income
The table below displays an analysis of our net interest income, average balances, and related yields earned on assets and incurred on liabilities. For most components of the average balances, we use a daily weighted average of unpaid principal balance net of unamortized cost basis adjustments. When daily average balance information is not available, such as for mortgage loans, we use monthly averages. For the second quarter and first half of 2021, net interest income was impacted by the application of fair value hedge accounting beginning in January 2021.
Analysis of Net Interest Income and Yield(1)
For the Three Months Ended June 30,
2021 2020
Average Balance
Interest Income/ (Expense)
Average Rates Earned/Paid
Average Balance
Interest Income/ (Expense)
Average Rates Earned/Paid
(Dollars in millions)
Interest-earning assets:
Mortgage loans of Fannie Mae(2)
$ 99,364  $ 782  3.15  % $ 115,310  $ 1,028  3.57  %
Mortgage loans of consolidated trusts(2)
3,712,015  24,150  2.60  3,311,267  25,979  3.14 
Total mortgage loans(3)
3,811,379  24,932  2.62  3,426,577  27,007  3.15 
Mortgage-related securities
6,637  42  2.53  10,976  116  4.23 
Non-mortgage-related securities(4)
132,921  98  0.29  103,935  129  0.49 
Federal funds sold and securities purchased under agreements to resell or similar arrangements
61,428  4  0.03  46,487  14  0.12 
Advances to lenders
7,910  31  1.57  7,917  25  1.25 
Total interest-earning assets
$ 4,020,275  25,107  2.50  % $ 3,595,892  27,291  3.04  %
Interest-bearing liabilities:
Short-term funding debt
$ 3,790  (1) 0.11  % $ 50,777  (54) 0.42  %
Long-term funding debt(2)
246,045  (673) 1.09  189,906  (777) 1.64 
Connecticut Avenue Securities® (“CAS”) debt
14,321  (149) 4.16  18,993  (219) 4.61 
Total debt of Fannie Mae
264,156  (823) 1.25  259,676  (1,050) 1.62 
Debt securities of consolidated trusts held by third parties
3,742,947  (15,998) 1.71  3,350,210  (20,464) 2.44 
Total interest-bearing liabilities
$ 4,007,103  (16,821) 1.68  % $ 3,609,886  (21,514) 2.38  %
Net interest income/net interest yield
$ 8,286  0.81  % $ 5,777  0.64  %
Fannie Mae Second Quarter 2021 Form 10-Q
14

MD&A | Consolidated Results of Operations
For the Six Months Ended June 30,
2021 2020
Average Balance
Interest Income/ (Expense)
Average Rates Earned/Paid
Average Balance
Interest Income/ (Expense)
Average Rates Earned/Paid
(Dollars in millions)
Interest-earning assets:
Mortgage loans of Fannie Mae(2)
$ 103,372  $ 1,607  3.11  % $ 108,668  $ 2,044  3.76  %
Mortgage loans of consolidated trusts(2)
3,658,573  46,678  2.55  3,287,673  53,901  3.28 
Total mortgage loans(3)
3,761,945  48,285  2.57  3,396,341  55,945  3.29 
Mortgage-related securities
7,018  84  2.39  10,926  215  3.94 
Non-mortgage-related securities(4)
148,576  215  0.29  84,370  377  0.88 
Federal funds sold and securities purchased under agreements to resell or similar arrangements
60,769  12  0.04  37,911  121  0.63 
Advances to lenders
9,438  73  1.54  7,167  59  1.63 
Total interest-earning assets
$ 3,987,746  48,669  2.44  % $ 3,536,715  56,717  3.21  %
Interest-bearing liabilities:
Short-term funding debt
$ 6,768  (4) 0.12  % $ 41,309  (156) 0.75  %
Long-term funding debt(2)
252,853  (1,433) 1.13  162,661  (1,564) 1.92 
CAS debt
14,561  (302) 4.15  19,765  (508) 5.14 
Total debt of Fannie Mae
274,182  (1,739) 1.27  223,735  (2,228) 1.99 
Debt securities of consolidated trusts held by third parties
3,693,674  (31,902) 1.73  3,315,963  (43,365) 2.62 
Total interest-bearing liabilities
$ 3,967,856  (33,641) 1.70  % $ 3,539,698  (45,593) 2.58  %
Net interest income/net interest yield
$ 15,028  0.75  % $ 11,124  0.63  %
(1)Includes the effects of discounts, premiums and other cost basis adjustments. For the second quarter and first half of 2021, includes cost basis adjustments related to hedge accounting.
(2)Includes income of $66 million and $88 million from hedged funding debt, hedged mortgage loans and paired interest-rate swaps for the second quarter and first half of 2021, respectively. Substantially all of this amount is related to the hedged funding debt and paired interest-rate swaps. There was no income or expense from hedge accounting for the second quarter or first half of 2020.
(3)Average balance includes mortgage loans on nonaccrual status. For nonaccrual mortgage loans not subject to the COVID-19-related nonaccrual guidance, interest income is recognized when cash is received. Interest income from the amortization of loan fees, primarily consisting of upfront cash fees and yield maintenance fees, was $2.4 billion and $4.9 billion, respectively, for the second quarter and first half of 2021, compared to $2.4 billion and $4.0 billion, respectively, for the second quarter and first half of 2020.
(4)Consists of cash, cash equivalents and U.S. Treasury securities.
Fannie Mae Second Quarter 2021 Form 10-Q
15

MD&A | Consolidated Results of Operations
Analysis of Deferred Amortization Income
We initially recognize mortgage loans and debt of consolidated trusts in our condensed consolidated balance sheets at fair value. The difference between the initial fair value and the carrying value of these instruments is recorded as a cost basis adjustment, either as a premium or a discount, in our condensed consolidated balance sheets. We amortize these cost basis adjustments over the contractual lives of the loans or debt. On a net basis, for mortgage loans and debt of consolidated trusts, we are in a premium position with respect to debt of consolidated trusts, which represents deferred income we will recognize in our condensed consolidated statements of operations and comprehensive income as net interest income in future periods.
Deferred Income Represented by Net Premium Position
on Debt of Consolidated Trusts
(Dollars in billions)
FNM-20210630_G7.JPG
Investment Gains (Losses), Net
Investment gains (losses), net primarily includes gains and losses recognized from the sale of available-for-sale (“AFS”) securities, sale of loans, gains and losses recognized on the consolidation and deconsolidation of securities, and lower of cost or fair value adjustments on held for sale (“HFS”) loans.
The increase in net investment gains in the second quarter of 2021 compared with the second quarter of 2020 and the shift from net investment losses in the first half of 2020 to net investment gains in the first half of 2021 was primarily driven by a significant increase in the volume of sales of single-family HFS loans in the 2021 periods.
Fair Value Gains (Losses), Net
The estimated fair value of our derivatives, trading securities and other financial instruments carried at fair value may fluctuate substantially from period to period because of changes in interest rates, the yield curve, mortgage and credit spreads and implied volatility, as well as activity related to these financial instruments.
As discussed above in “Hedge Accounting Impact,” we began applying fair value hedge accounting in January 2021 to reduce earnings volatility in our financial statements driven by changes in interest rates. Accordingly, we now recognize the fair value gains and losses and the contractual interest income and expense associated with risk management derivatives designated in qualifying hedging relationships in net interest income. Prior to the implementation of our hedge accounting program, these fair value changes were included in fair value gains (losses), net. Derivatives not designated in hedging relationships are unaffected by this change.
Fannie Mae Second Quarter 2021 Form 10-Q
16

MD&A | Consolidated Results of Operations
The table below displays the components of our fair value gains and losses.
Fair Value Gains (Losses), Net
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 2021 2020
(Dollars in millions)
Risk management derivatives fair value gains (losses) attributable to:
Net contractual interest income (expense) on interest-rate swaps $ 61  $ (64) $ 104  $ (170)
Net change in fair value during the period 374  126  (637) (129)
Impact of the presentation of fair value gains (losses) in net interest income for risk management derivatives designated in fair value hedges(1)
(371) —  753  — 
Risk management derivatives fair value gains (losses), net 64  62  220  (299)
Mortgage commitment derivatives fair value gains (losses), net
(553) (662) 529  (1,655)
Credit enhancement derivatives fair value gains (losses), net
(18) 31  (108) 20 
Total derivatives fair value gains (losses), net
(507) (569) 641  (1,934)
Trading securities gains (losses), net
161  135  (597) 782 
CAS debt fair value gains (losses), net
(25) (163) (26) 474 
Other, net(2)
(75) (421) 320  (616)
Fair value gains (losses), net $ (446) $ (1,018) $ 338  $ (1,294)
(1)Consists of the presentation of $317 million in fair value gains and $54 million in contractual interest income for the three months ended June 30, 2021 and $861 million in fair value losses and $108 million in contractual interest income for the six months ended June 30, 2021 in net interest income, for designated interest-rate swaps as a result of fair value hedge accounting.
(2)Consists of fair value gains and losses on non-CAS debt and mortgage loans held at fair value.
Fair value losses, net in the second quarter of 2021 were primarily driven by decreases in the fair value of mortgage commitment derivatives due to losses on commitments to sell mortgage-related securities as prices increased during the commitment period as interest rates declined. These losses were partially offset by gains on trading securities due to decreases in U.S. Treasury yields during the second quarter of 2021, which resulted in gains on fixed-rate securities held in our other investments portfolio as prices rose.
Fair value gains, net in the first half of 2021 were primarily driven by:
the application of hedge accounting resulting in the presentation of fair value losses on designated interest-rate swaps in “net interest income;”
increases in the fair value of mortgage commitment derivatives due to gains on commitments to sell mortgage-related securities as prices decreased during the commitment period as interest rates increased; and
decreases in the fair value of long-term debt of consolidated trusts held at fair value, which are included in “Other, net,” due to increases in interest rates.
These gains were partially offset by fair value losses in the first half of 2021 on trading securities, primarily driven by increases in interest rates during the first quarter, which resulted in losses on fixed-rate securities held in our other investments portfolio.
Fair value losses, net in the second quarter of 2020 were primarily driven by:
decreases in the fair value of mortgage commitment derivatives due to losses on commitments to sell mortgage-related securities as prices increased during the commitment period as interest rates declined, which were partially offset by gains on commitments to buy mortgage-related securities;
increases in the fair value of long-term debt of consolidated trusts held at fair value, which are included in “Other, net,” due to declines in interest rates; and
losses on CAS debt reported at fair value resulting from tightening spreads between CAS debt yields and LIBOR during the period.
These losses were partially offset by fair value gains in the second quarter of 2020 on trading securities primarily driven by declines in interest rates, which resulted in gains on mortgage-related securities held in our retained mortgage portfolio.
Fannie Mae Second Quarter 2021 Form 10-Q
17

MD&A | Consolidated Results of Operations
Fair value losses, net in the first half of 2020 were primarily driven by:
•     decreases in the fair value of mortgage commitment derivatives due to losses on commitments to sell mortgage-related securities as prices increased during the commitment period as interest rates declined, which were partially offset by gains on commitments to buy mortgage-related securities;
•     increases in the fair value of long-term debt of consolidated trusts held at fair value, which are included in “Other, net,” due to declines in interest rates; and
•     net interest expense on risk management derivatives combined with decreases in the fair value of pay-fixed risk management derivatives due to declines in swap rates, which were partially offset by increases in the fair value of receive-fixed risk management derivatives.
These losses were partially offset by fair value gains in the first half of 2020 on trading securities and CAS debt, primarily driven by declines in interest rates and widened spreads between CAS debt yields and LIBOR, which resulted in gains on fixed-rate securities held in our other investments portfolio and our CAS debt held at fair value.
Credit-Related Income (Expense)
Our credit-related income or expense can vary substantially from period to period based on a number of factors, such as changes in actual and forecasted home prices or property valuations, fluctuations in actual and forecasted interest rates, borrower payment behavior, events such as natural disasters or pandemics, the types and volume of our loss mitigation activities, including forbearances and loan modifications, the volume of foreclosures completed and the redesignation of loans from held for investment (“HFI”) to HFS.
Our credit-related income or expense and our loss reserves can also be impacted by updates to the models, assumptions and data used in determining our allowance for loan losses. As described below, since the onset of the COVID-19 pandemic in early 2020, our credit-related income or expense and our loss reserves have been significantly affected by our estimates of the impact of the pandemic and the pace and strength of the economy’s subsequent recovery, which require significant management judgment. Changes in our expectations regarding the length of time borrowers remain in forbearance, and even more significantly, the loss mitigation outcomes of affected borrowers after the forbearance period ends, remain uncertain and can affect the amount of credit-related income or expense we recognize. Although we believe the estimates underlying our allowance are reasonable, we may observe future volatility in these estimates as we continue to observe actual loan performance data and update our models and assumptions relating to this unprecedented event.
Fannie Mae Second Quarter 2021 Form 10-Q
18

MD&A | Consolidated Results of Operations
Benefit (Provision) for Credit Losses
The table below provides a quantitative analysis of the drivers of our single-family and multifamily benefit or provision for credit losses and the change in expected credit enhancement recoveries. The benefit or provision for credit losses includes our benefit or provision for loan losses, accrued interest receivable losses and our guaranty loss reserves, and excludes credit losses on our AFS securities. It also excludes the transition impact of adopting Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses, Measurement of Credit Losses on Financial Instruments, (the “CECL standard”), which was recorded as an adjustment to retained earnings as of January 1, 2020. Many of the drivers that contribute to our benefit or provision for credit losses overlap or are interdependent. The attribution shown below is based on internal allocation estimates.
Components of Benefit (Provision) for Credit Losses and Change in Expected Credit Enhancement Recoveries
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 2021 2020
(Dollars in millions)
Single-family benefit (provision) for credit losses:
Changes in loan activity(1)
$ 33  $ (70) $ (30) $ (67)
Redesignation of loans from HFI to HFS
678  —  985  175 
Actual and forecasted home prices
1,124  337  2,303  (584)
Actual and projected interest rates
304  84  (588) 1,341 
Changes in assumptions regarding COVID-19 forbearance and loan delinquencies(2)
210  (3) 337  (2,590)
Other(3)
204  (129) 208  (226)
Single-family benefit (provision) for credit losses
2,553  219  3,215  (1,951)
Multifamily benefit (provision) for credit losses:
Changes in loan activity(1)
(21) (52) (140) (74)
Actual and projected interest rates
41  58  22  274 
Actual and projected economic data(4)
6  —  321  — 
Estimated impact of the COVID-19 pandemic 23  (261) 77  (874)
Other(3)
(14) 24  (142) 33 
Multifamily benefit (provision) for credit losses
35  (231) 138  (641)
Total benefit (provision) for credit losses
$ 2,588  $ (12) $ 3,353  $ (2,592)
Change in expected credit enhancement recoveries:(5)
Single-family
$ (57) $ 208  $ (73) $ 266 
Multifamily
7  65  (15) 192 
Total change in expected credit enhancement recoveries
$ (50) $ 273  $ (88) $ 458 
(1)Primarily consists of loan liquidations, amortization of concessions granted to borrowers and the impact of FHFA’s Advisory Bulletin 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” (the “Advisory Bulletin”). For multifamily, changes in loan activity also includes changes in the allowance due to loan delinquencies and the impact of changes in debt service coverage ratios (“DSCRs”) based on updated property financial information, which is used to assess loan credit quality.
(2)Includes changes in the allowance due to assumptions regarding loss mitigation when loans exit forbearance, as well as adjustments to modeled results.
(3)Includes provision for allowance for accrued interest receivable. For single-family, also includes changes in the reserve for guaranty losses that are not separately included in the other components. For multifamily, also includes the impact of credit model enhancements implemented in the first half of 2021.
(4)For the three and six months ended June 30, 2020, the impact of actual and projected economic data is grouped with “Estimated impact of the COVID-19 pandemic” as these impacts were driven by the pandemic.
(5)Includes increase (decrease) in expected credit enhancement recoveries only for active loans. Recoveries received after foreclosure, which are included in “Change in expected credit enhancement recoveries” in “Summary of Condensed Consolidated Results of Operations,” are not included.
Fannie Mae Second Quarter 2021 Form 10-Q
19

MD&A | Consolidated Results of Operations
Single-Family Benefit (Provision) for Credit Losses
The primary factors that contributed to our single-family benefit for credit losses in the second quarter of 2021 were:
Benefit from actual and forecasted home price growth. During the second quarter of 2021, home price growth was very strong. We also increased our expectations for home price growth on a national basis for full-year 2021. Higher home prices decrease the likelihood that loans will default and reduce the amount of credit loss on loans that do default, which impacts our estimate of losses and ultimately reduces our loss reserves and provision for credit losses. See “Key Market Economic Indicators” for additional information about how home prices affect our credit loss estimates, including a discussion of home price appreciation and our home price forecast.
Benefit from the redesignation of certain reperforming single-family loans from HFI to HFS. We redesignated certain reperforming single-family loans from HFI to HFS, as we no longer intend to hold them for the foreseeable future or to maturity. Upon redesignation of these loans, we recorded the loans at the lower of cost or fair value with a write-off against the allowance for loan losses. Amounts recorded in the allowance related to these loans exceeded the amounts written off, resulting in a benefit for credit losses.
Benefit from lower actual and projected interest rates. Actual and projected interest rates decreased as of June 30, 2021 compared with March 31, 2021. As mortgage interest rates decrease, we expect an increase in future prepayments on single-family loans, including modified loans. Higher expected prepayments shorten the expected lives of modified loans, which decreases the expected impairment relating to term and interest-rate concessions provided on these loans, resulting in a benefit for credit losses.
Benefit from changes in assumptions regarding COVID-19 forbearance and loan delinquencies as discussed below.
The primary factors that contributed to our single-family benefit for credit losses in the first half of 2021 were:
Benefit from actual and forecasted home price growth as discussed in “Key Market Economic Indicators.”
Benefit from the redesignation of certain reperforming single-family loans from HFI to HFS consistent with the discussion above.
Benefit from changes in assumptions regarding COVID-19 forbearance and loan delinquencies. In both the first and second quarters of 2021, management used its judgment to reduce the non-modeled adjustment that was previously applied to the loss projections developed by our credit loss model to account for uncertainty. The decrease in uncertainty as of June 30, 2021 compared with the end of 2020 was primarily driven by the passage of the American Rescue Plan Act of 2021, which provided additional economic stimulus and helped support the continued economic recovery. In addition, the implementation of the COVID-19 vaccination program in the United States, which has contributed to a significant increase in business activity and an improved economy in 2021, decreased uncertainty surrounding the post-pandemic recovery. There has also been decreased political uncertainty, as well as a decrease in the number of borrowers in a COVID-19-related forbearance, lessening expectations of credit losses. However, management continued to apply its judgment and supplement model results as of June 30, 2021 as uncertainty remains regarding the loss mitigation outcomes of borrowers still in forbearance and the future course of the pandemic, including the impact on the economy of the spread of the Delta variant or other new, more infectious variants of the virus and low vaccination rates in certain areas of the country.
The impact of these factors was partially offset by the impact of the following factor, which reduced our single-family benefit for credit losses recognized in the first half of 2021:
Provision from higher actual and projected interest rates. Actual and projected interest rates were higher as of June 30, 2021 compared with December 31, 2020. As mortgage rates increase, we expect a decrease in future prepayments on single-family loans, including modified loans. Lower expected prepayments extend the expected lives of modified loans, which increases the expected impairment relating to term and interest-rate concessions provided on these loans, resulting in a provision for credit losses.
The primary factors that impacted our single-family benefit (provision) for credit losses in the second quarter and first half of 2020 were:
Expected credit losses as a result of the COVID-19 pandemic, which included adjustments to modeled results. In the first quarter of 2020, the rapidly changing conditions as a result of the unprecedented COVID-19 pandemic caused us to believe our model used to estimate single-family credit losses did not capture the entirety of losses we expected to incur relating to COVID-19 at that time, which included our expectations surrounding loan forbearance and borrower behavior once the forbearance period ends. As a result,
Fannie Mae Second Quarter 2021 Form 10-Q
20

MD&A | Consolidated Results of Operations
management used its judgment to increase the loss projections developed by our credit loss model in the first quarter of 2020 by $2.5 billion.
During the second quarter of 2020 our credit loss model consumed data from the initial months of the pandemic, including loan delinquencies, updated profile data for loans in forbearance, and an updated home price forecast. As more of this data was consumed by our credit loss model, we reduced our non-modeled adjustment. However, management continued to apply its judgment and supplement model results as of June 30, 2020, taking into account uncertainty at that time regarding the type and extent of loss mitigation that may be needed when loans complete their forbearance period and the continued high degree of uncertainty regarding the future course of the pandemic and its effect on the economy, including the continued availability of fiscal stimulus to support borrowers.
For the second quarter of 2020, our estimate of expected losses due to the pandemic, which included both modeled and non-modeled adjustments, remained relatively flat compared with the first quarter of 2020. A reduction in overall expected forbearance volumes was offset by a weaker credit profile for loans entering forbearance. Furthermore, the positive impact of higher-than-initially-expected borrower prepayment activity was offset by heightened uncertainty as noted above. When taken together, the net impact for the second quarter was a $3 million increase to expected losses as shown in the table above.
Changes in our expectations for home price growth. In the first quarter of 2020, we significantly reduced our expectations for home price growth to near-zero for 2020, which contributed to our provision for credit losses for the period. However, the negative impact from the first quarter of 2020 was partially reduced in the second quarter of 2020 as we revised our home price forecast to reflect an increase in home price appreciation on a national basis for 2020 based on strong home sales data for the period. This improvement in the 2020 home price forecast was partially offset by our updated long-term projected home price growth estimate, which was lowered as a result of a longer projected economic recovery period at that time.
Credit benefit from lower actual and projected mortgage interest rates.
Multifamily Benefit (Provision) for Credit Losses
The primary factors that contributed to our multifamily benefit for credit losses in the second quarter and first half of 2021 were:
Benefit from actual and projected economic data. In the second quarter and first half of 2021, property value forecasts increased due to continued demand for multifamily housing. In addition, improved job growth led to an increase in projected average property net operating income, which reduced the probability of loan defaults resulting in a benefit for credit losses for the quarter and year-to-date.
Benefit from lower expected credit losses as a result of the COVID-19 pandemic. Similar to our single-family provision for credit losses described above, in both the first and second quarters of 2021, management used its judgment to further reduce the non-modeled adjustment that was previously applied to the loss projections developed by our credit loss model to account for uncertainty. The decrease in uncertainty as of June 30, 2021 compared with the end of 2020 was primarily driven by positive economic growth and the passage of the American Rescue Plan Act of 2021, which provided additional economic stimulus. However, management continued to apply its judgment and supplement model results with a non-modeled adjustment as of June 30, 2021, as uncertainty remains surrounding the future course of the pandemic, including new strains of the virus and its effect on the economy.
Our multifamily provision for credit losses in the second quarter and first half of 2020 was primarily driven by:
Actual and projected economic data and expected credit losses as a result of the COVID-19 pandemic. Similar to the single-family provision for credit losses for the 2020 periods discussed above, we believed our model used to estimate multifamily credit losses as of June 30, 2020 did not capture the entirety of losses we expected to incur relating to COVID-19 at that time. As a result, management used its judgment to increase the loss projections developed by our credit loss model to reflect our expectations relating to the impact of the pandemic at that time. Our multifamily provision for credit losses was primarily driven by elevated unemployment rates compared with pre-COVID-19 levels. We expected higher unemployment rates would reduce the operating income of multifamily properties in the near term, resulting in an increase in the number of loans in forbearance. Additionally, property values were expected to decrease, increasing the probability of loan defaults.
In the second quarter of 2020, we increased our expected credit losses as a result of significant economic uncertainty and worsened forecasted capitalization rates at that time. We also increased our expected credit losses on senior housing loans to reflect that these properties had been disproportionately impacted by the
Fannie Mae Second Quarter 2021 Form 10-Q
21

MD&A | Consolidated Results of Operations
pandemic, which resulted in increased operating expenses and limited these borrowers’ ability to attract new tenants. These increases in expected credit losses were partially offset by a reduction in our overall estimated forbearance volumes and lower actual and projected interest rates. In developing these adjustments, management considered the credit risk profile of our multifamily loan book of business at that time, as well as relevant historical credit loss experience during rare or stressful economic environments.
Consolidated Balance Sheet Analysis
This section discusses our condensed consolidated balance sheets and should be read together with our condensed consolidated financial statements and the accompanying notes.
Summary of Condensed Consolidated Balance Sheets
As of
June 30, 2021 December 31, 2020 Variance
(Dollars in millions)
Assets
Cash and cash equivalents and federal funds sold and securities purchased under agreements to resell or similar arrangements
$ 92,767  $ 66,537  $ 26,230 
Restricted cash and cash equivalents 76,420  77,286  (866)
Investments in securities 96,056  138,239  (42,183)
Mortgage loans:
Of Fannie Mae 88,257  117,911  (29,654)
Of consolidated trusts 3,770,164  3,546,533  223,631 
Allowance for loan losses (7,114) (10,552) 3,438 
Mortgage loans, net of allowance for loan losses 3,851,307  3,653,892  197,415 
Deferred tax assets, net 12,575  12,947  (372)
Other assets 28,913  36,848  (7,935)
Total assets $ 4,158,038  $ 3,985,749  $ 172,289 
Liabilities and equity
Debt:
Of Fannie Mae $ 251,576  $ 289,572  $ (37,996)
Of consolidated trusts 3,844,699  3,646,164  198,535 
Other liabilities 24,418  24,754  (336)
Total liabilities 4,120,693  3,960,490  160,203 
Fannie Mae stockholders’ equity:
Senior preferred stock 120,836  120,836  — 
Other net deficit (83,491) (95,577) 12,086 
Total equity 37,345  25,259  12,086 
Total liabilities and equity $ 4,158,038  $ 3,985,749  $ 172,289 
Cash and Cash Equivalents and Federal Funds Sold and Securities Purchased under Agreements to Resell or Similar Arrangements, and Investments in Securities
Investments in securities declined from December 31, 2020 to June 30, 2021 primarily driven by a shift from investments in U.S. Treasury securities as of December 31, 2020 to investments in federal funds sold and securities purchased under agreements to resell as of June 30, 2021, as well as a decrease in funding debt issuances during the period. With lower funding debt issuances, our other investments portfolio declined as maturing investments were not replaced.
For further discussion, see “Liquidity and Capital Management—Liquidity Management.”
Fannie Mae Second Quarter 2021 Form 10-Q
22

MD&A | Consolidated Balance Sheet Analysis
Mortgage Loans, Net of Allowance
The mortgage loans reported in our condensed consolidated balance sheets are classified as either HFS or HFI and include loans owned by Fannie Mae and loans held in consolidated trusts.
Mortgage loans, net of allowance for loan losses increased as of June 30, 2021 compared with December 31, 2020, driven by an increase in loan acquisitions, primarily from continued high refinancing activity, outpacing liquidations and sales.
For additional information on our mortgage loans, see “Note 3, Mortgage Loans,” and for additional information on changes in our allowance for loan losses, see “Note 4, Allowance for Loan Losses.”
Debt
The decrease in debt of Fannie Mae from December 31, 2020 to June 30, 2021 was primarily due to decreased funding needs. The increase in debt of consolidated trusts from December 31, 2020 to June 30, 2021 was primarily driven by sales of Fannie Mae MBS, which are accounted for as issuances of debt of consolidated trusts in our condensed consolidated balance sheets, since the MBS certificate ownership is transferred from us to a third party. See “Liquidity and Capital Management—Debt Funding” for a summary of activity in debt of Fannie Mae and a comparison of the mix between our outstanding short-term and long-term debt. Also see “Note 7, Short-Term and Long-Term Debt” for additional information on our total outstanding debt.
Stockholders’ Equity
Our net equity increased as of June 30, 2021 compared with December 31, 2020 by the amount of our comprehensive income recognized during the first half of 2021.
The aggregate liquidation preference of the senior preferred stock increased to $151.7 billion as of June 30, 2021 and will further increase to $158.8 billion as of September 30, 2021 due to the $7.1 billion increase in our net worth during the second quarter of 2021.
Retained Mortgage Portfolio
We use our retained mortgage portfolio primarily to provide liquidity to the mortgage market through our whole loan conduit and to support our loss mitigation activities, particularly in times of economic stress when other sources of liquidity to the mortgage market may decrease or withdraw. Previously, we also used our retained mortgage portfolio for investment purposes.
Our retained mortgage portfolio consists of mortgage loans and mortgage-related securities that we own, including Fannie Mae MBS and non-Fannie Mae mortgage-related securities. Assets held by consolidated MBS trusts that back mortgage-related securities owned by third parties are not included in our retained mortgage portfolio.
Fannie Mae Second Quarter 2021 Form 10-Q
23

MD&A | Retained Mortgage Portfolio
The chart below separates the instruments within our retained mortgage portfolio, measured by unpaid principal balance, into three categories based on each instrument’s use:
Lender liquidity, which includes balances related to our whole loan conduit activity, supports our efforts to provide liquidity to the single-family and multifamily mortgage markets.
Loss mitigation supports our loss mitigation efforts through the purchase of delinquent loans from our MBS trusts.
Other represents assets that were previously purchased for investment purposes. The majority of the balance of “Other” as of June 30, 2021 consisted of Fannie Mae reverse mortgage securities and reverse mortgage loans. We expect the amount of assets in “Other” will continue to decline over time as they liquidate, mature or are sold.
Retained Mortgage Portfolio
(Dollars in billions)
FNM-20210630_G8.JPG
The decrease in our retained mortgage portfolio as of June 30, 2021 compared with December 31, 2020 was primarily due to a decrease in our lender liquidity portfolio driven by a decline in mortgage refinance activity, primarily during the second quarter of 2021, leading to lower acquisition volumes through the whole loan conduit. In addition, sales of reperforming mortgage loans drove a decrease in our loss mitigation portfolio.
Fannie Mae Second Quarter 2021 Form 10-Q
24

MD&A | Retained Mortgage Portfolio
The table below displays the components of our retained mortgage portfolio, measured by unpaid principal balance. Based on the nature of the asset, these balances are included in either “Investments in securities” or “Mortgage loans of Fannie Mae” in our Summary of Condensed Consolidated Balance Sheets.
Retained Mortgage Portfolio
As of
June 30, 2021 December 31, 2020
(Dollars in millions)
Lender liquidity:
Agency securities(1)
$ 25,652  $ 34,810 
Mortgage loans 30,000  45,895 
Total lender liquidity 55,652  80,705 
Loss mitigation mortgage loans(2)
45,472  56,315 
Other:
Reverse mortgage loans 10,920  12,388 
Mortgage loans 4,073  4,881 
Reverse mortgage securities(3)
6,823  7,185 
Private-label and other securities 403  473 
Fannie Mae-wrapped private-label securities 497  521 
Mortgage revenue bonds 146  182 
Total other 22,862  25,630 
Total retained mortgage portfolio $ 123,986  $ 162,650 
Retained mortgage portfolio by segment:
Single-family mortgage loans and mortgage-related securities $ 118,445  $ 154,943 
Multifamily mortgage loans and mortgage-related securities $ 5,541  $ 7,707 
(1)Consists of Fannie Mae, Freddie Mac and Ginnie Mae mortgage-related securities, including Freddie Mac securities guaranteed by Fannie Mae. Excludes Fannie Mae and Ginnie Mae reverse mortgage securities and Fannie Mae-wrapped private-label securities.
(2)Includes single-family loans classified as troubled debt restructurings (“TDRs”) that were on accrual status of $20.1 billion and $29.4 billion as of June 30, 2021 and December 31, 2020, respectively, and single-family loans on nonaccrual status of $15.9 billion and $19.6 billion as of June 30, 2021 and December 31, 2020. Includes multifamily loans classified as TDRs that were on accrual status of $24 million and $20 million as of June 30, 2021 and December 31, 2020, respectively, and multifamily loans on nonaccrual status of $507 million and $536 million as of June 30, 2021 and December 31, 2020, respectively.
(3)Consists of Fannie Mae and Ginnie Mae reverse mortgage securities.
The amount of mortgage assets that we may own is capped at $250 billion and will decrease to $225 billion on December 31, 2022 under the terms of our senior preferred stock purchase agreement with Treasury. We are currently managing our business to a $225 billion cap pursuant to instructions from FHFA. See “Business—Conservatorship, Treasury Agreements and Housing Finance Reform” in our 2020 Form 10-K for additional information on our portfolio cap.
We include 10% of the notional value of interest-only securities in calculating the size of the retained portfolio for the purpose of determining compliance with the senior preferred stock purchase agreement retained portfolio limits and associated FHFA guidance. As of June 30, 2021, 10% of the notional value of our interest-only securities was $2.2 billion, which is not included in the table above.
Under the terms of our MBS trust documents, we have the option or, in some instances, the obligation, to purchase mortgage loans that meet specific criteria from an MBS trust. The purchase price for these loans is the unpaid principal balance of the loan plus accrued interest. If a delinquent loan remains in a single-family MBS trust, the servicer is responsible for advancing the borrower’s missed scheduled principal and interest payments to the MBS holders for up to four months, after which time we must make these missed payments. In addition, we must reimburse servicers for advanced principal and interest payments. The cost of purchasing most delinquent loans from a single-family Fannie Mae MBS trust and holding them in our retained mortgage portfolio is currently less than the cost of advancing delinquent payments to security holders.
Except for loans that are in forbearance or that have been granted certain other types of loss mitigation options (such as a repayment plan or payment deferral), we have historically purchased loans from single-family MBS trusts when they become four consecutive monthly payments delinquent. In September 2020, FHFA instructed both us and Freddie Mac
Fannie Mae Second Quarter 2021 Form 10-Q
25

MD&A | Retained Mortgage Portfolio
to extend the timeframe for our single-family delinquent loan buyout policy to 24 consecutively missed monthly payments (that is, loans that are 24 months past due) effective January 1, 2021. We expect that in most cases we nevertheless will purchase delinquent loans from single-family MBS trusts prior to the 24-month deadline under one of the exceptions to the FHFA directive, which includes loans that are permanently modified, loans subject to a short-sale or deed-in-lieu of foreclosure, loans that are paid in full and loans referred to foreclosure.
In support of our loss mitigation strategies, we purchased $3.7 billion of loans from our single-family MBS trusts in the first half of 2021, the substantial majority of which were delinquent, compared with $5.6 billion of loans purchased from single-family MBS trusts in the first half of 2020. We expect the amount of loans we buy out of trusts may increase, particularly in 2022, compared with 2020 as a result of COVID-19-related loan delinquencies and loss mitigation strategies, which may increase the size of our retained mortgage portfolio. However, the magnitude of any increase in our retained mortgage portfolio will depend on the volume of loans we ultimately buy, the timing of those purchases, and the length of time those loans remain in our retained mortgage portfolio. These factors are highly uncertain and depend on a number of things, including the length of time loans remain in forbearance, the duration of foreclosure suspensions, and the nature and success of our loss mitigation activities, including payment deferrals and repayment plans, which do not require us to purchase loans out of trust. See “Single-Family Business—Single-Family Mortgage Credit Risk Management—Single-Family Problem Loan Management—Single-Family Loans in Forbearance” and “Multifamily Business—Multifamily Mortgage Credit Risk Management—Multifamily Problem Loan Management and Foreclosure Prevention” for information on our loans in forbearance.
Guaranty Book of Business
Our “guaranty book of business” consists of:
Fannie Mae MBS outstanding, excluding the portions of any structured securities we issue that are backed by Freddie Mac securities;
mortgage loans of Fannie Mae held in our retained mortgage portfolio; and
other credit enhancements that we provide on mortgage assets.
“Total Fannie Mae guarantees” consists of:
our guaranty book of business; and
the portions of any structured securities we issue that are backed by Freddie Mac securities.
We and Freddie Mac issue single-family uniform mortgage-backed securities, or “UMBS®.” In this report, we use the term “Fannie Mae-issued UMBS” to refer to single-family Fannie Mae MBS that are directly backed by fixed-rate mortgage loans and generally eligible for trading in the to-be-announced (“TBA”) market. We use the term “Fannie Mae MBS” or “our MBS” to refer to any type of mortgage-backed security that we issue, including UMBS, Supers®, Real Estate Mortgage Investment Conduit securities (“REMICs”) and other types of single-family or multifamily mortgage-backed securities.
Some Fannie Mae MBS that we issue are backed in whole or in part by Freddie Mac securities. When we resecuritize Freddie Mac securities into Fannie Mae-issued structured securities, such as Supers and REMICs, our guaranty of principal and interest extends to the underlying Freddie Mac securities. However, Freddie Mac continues to guarantee the payment of principal and interest on the underlying Freddie Mac securities that we have resecuritized. We do not charge an incremental guaranty fee to include Freddie Mac securities in the structured securities that we issue. References to our single-family guaranty book of business in this report exclude Freddie Mac-acquired mortgage loans underlying Freddie Mac securities that we have resecuritized.
Fannie Mae Second Quarter 2021 Form 10-Q
26

MD&A | Guaranty Book of Business
The table below displays the composition of our guaranty book of business based on unpaid principal balance. Our single-family guaranty book of business accounted for 90% of our guaranty book of business as of June 30, 2021 and December 31, 2020.
Composition of Fannie Mae Guaranty Book of Business
As of
June 30, 2021 December 31, 2020
Single-Family
Multifamily
Total
Single-Family
Multifamily
Total
(Dollars in millions)
Conventional guaranty book of business(1)
$ 3,449,139  $ 403,364  $ 3,852,503  $ 3,305,030  $ 386,379  $ 3,691,409 
Government guaranty book of business(2)
18,558  2,138  20,696  20,777  2,268  23,045 
Guaranty book of business 3,467,697  405,502  3,873,199  3,325,807  388,647  3,714,454 
Freddie Mac securities guaranteed by Fannie Mae(3)
168,937    168,937  137,316  —  137,316 
Total Fannie Mae guarantees $ 3,636,634  $ 405,502  $ 4,042,136  $ 3,463,123  $ 388,647  $ 3,851,770 
(1)Refers to mortgage loans and mortgage-related securities that are not guaranteed or insured, in whole or in part, by the U.S. government.
(2)Refers to mortgage loans and mortgage-related securities guaranteed or insured, in whole or in part, by the U.S. government.
(3)Consists of approximately (i) $138.0 billion and $110.7 billion in unpaid principal balance of Freddie Mac-issued UMBS backing Fannie Mae-issued Supers as of June 30, 2021 and December 31, 2020, respectively; and (ii) $31.0 billion and $26.6 billion in unpaid principal balance of Freddie Mac securities backing Fannie Mae-issued REMICs as of June 30, 2021 and December 31, 2020, respectively.
The GSE Act requires us to set aside each year an amount equal to 4.2 basis points of the unpaid principal balance of our new business purchases and to pay this amount to specified U.S. Department of Housing and Urban Development (“HUD”) and Treasury funds in support of affordable housing. In March 2021, we paid $603 million to the funds based on our new business purchases in 2020. For the first half of 2021, we recognized an expense of $339 million related to this obligation based on $806.5 billion in new business purchases during the period. We expect to pay this amount to the funds in 2022, plus additional amounts to be accrued based on our new business purchases in the second half of 2021. See “Business—Legislation and Regulation—GSE Act and Other Legislative and Regulatory Matters—Affordable Housing Allocations” in our 2020 Form 10-K for more information regarding this obligation.
Business Segments
We have two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to single-family mortgage loans, which are secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to multifamily mortgage loans, which are secured by properties containing five or more residential units.
The chart below displays net revenues and net income for each of our business segments for the first half of 2020 compared with the first half of 2021. Net revenues consist of net interest income and fee and other income.
Business Segment Net Revenues and Net Income
(Dollars in billions)
FNM-20210630_G9.JPG FNM-20210630_G10.JPG
Fannie Mae Second Quarter 2021 Form 10-Q
27

MD&A | Business Segments
In the following sections, we describe each segment’s business metrics, financial results and credit performance. For an overview of how we are compensated for and manage the risk of credit losses through the life cycle of our loans and how we measure our credit risk, see "Business—Managing Mortgage Credit Risk” in our 2020 Form 10-K.
Single-Family Business
Our Single-Family business provides liquidity to the mortgage market primarily by acquiring single-family loans from lenders and securitizing those loans into Fannie Mae MBS, which are either delivered to the lenders or sold to investors or dealers.
This section supplements and updates information regarding our Single-Family business segment in our 2020 Form 10-K. See “MD&A—Single-Family Business” in our 2020 Form 10-K for additional information regarding the primary business activities, customers and competition of our Single-Family business.
Single-Family Mortgage Market
Housing activity slowed modestly in the second quarter of 2021 compared with the first quarter of 2021. Total home sales moderated due to near record-low inventory of available homes for sale and construction capacity constraints stemming from a surge in material prices. Given recent construction constraints, single-family starts declined in the second quarter of 2021 compared with the first quarter of 2021. However, we continue to expect single-family housing starts to be higher for the full-year 2021 when compared with 2020. We also expect total home sales for the year to exceed the level seen in 2020. We expect the average mortgage rate to rise in 2021, which we expect will lead to a decline in total refinance originations for 2021 compared with 2020.
Total existing home sales averaged 5.8 million units annualized in the second quarter of 2021, compared with 6.3 million units in the first quarter of 2021, according to data from the National Association of REALTORS®. According to the U.S. Census Bureau, new single-family home sales decreased during the second quarter of 2021, averaging an annualized rate of approximately 728,300 units, compared with approximately 896,300 units in the first quarter of 2021.
The 30-year fixed mortgage rate averaged 2.98% in June 2021, compared with 3.08% in March 2021, according to Freddie Mac’s Primary Mortgage Market Survey®.
We forecast that total originations in the U.S. single-family mortgage market in 2021 will decrease from 2020 levels by approximately 7%, from an estimated $4.54 trillion in 2020 to $4.20 trillion in 2021, and that the amount of refinance originations in the U.S. single-family mortgage market will decrease from an estimated $2.89 trillion in 2020 to $2.37 trillion in 2021. Declining origination volume reduces the number of mortgages available for us to acquire, which affects our business volume. See “Key Market Economic Indicators” for additional discussion of how housing activity can affect our financial results and the uncertainties that may affect our forecasts and expectations.
Fannie Mae Second Quarter 2021 Form 10-Q
28

MD&A | Single-Family Business | Single-Family Market Activity
Single-Family Market Activity
Single-Family Mortgage-Related Securities Issuances Share
Our single-family Fannie Mae MBS issuances were $388.5 billion for the second quarter of 2021, compared with $342.8 billion for the second quarter of 2020. Based on the latest data available, the chart below displays our estimated share of single-family mortgage-related securities issuances in the second quarter of 2021 as compared with that of our primary competitors for the issuance of single-family mortgage-related securities.
Single-Family Mortgage-Related Securities Issuances Share
Second Quarter 2021
FNM-20210630_G11.JPG
We estimate our share of single-family mortgage-related securities issuances was 41% in the first quarter of 2021 and 45% in the second quarter of 2020.
Presentation of Our Single-Family Guaranty Book of Business
For purposes of the information reported in this “Single-Family Business” section, we measure the single-family guaranty book of business using the unpaid principal balance of our mortgage loans underlying Fannie Mae MBS outstanding. By contrast, the single-family guaranty book of business presented in the “Composition of Fannie Mae Guaranty Book of Business” table in the “Guaranty Book of Business” section is based on the unpaid principal balance of the Fannie Mae MBS outstanding, rather than the unpaid principal balance of the underlying mortgage loans. These amounts differ primarily as a result of payments we receive on underlying loans that have not yet been remitted to the MBS holders or instances where we have advanced missed borrower payments on mortgage loans to make required distributions to related MBS holders. As measured for purposes of the information reported below, our single-family conventional guaranty book of business was $3,377.2 billion as of June 30, 2021 and $3,200.9 billion as of December 31, 2020.
Single-Family Business Metrics
Net interest income for our Single-Family business is driven by the guaranty fees we charge and the size of our single-family conventional guaranty book of business. Our business volume and growth in our guaranty book of business is affected by the rate of growth in total U.S. residential mortgage debt outstanding, the size of the U.S. residential mortgage market and our share of mortgage acquisitions. The guaranty fees we charge are based on the characteristics of the loans we acquire. We may adjust our guaranty fees in light of market conditions and to achieve return targets. As a result, the average charged guaranty fee on new acquisitions may fluctuate based on the credit quality and product mix of loans acquired, as well as market conditions and other factors.
Fannie Mae Second Quarter 2021 Form 10-Q
29

MD&A | Single-Family Business | Single-Family Business Metrics
The charts below display our average charged guaranty fees, net of TCCA fees, on our single-family conventional guaranty book of business and on new single-family conventional loan acquisitions, along with our average single-family conventional guaranty book of business and our single-family conventional loan acquisitions for the periods presented.
Select Single-Family Business Metrics
(Dollars in billions)
FNM-20210630_G12.JPG FNM-20210630_G13.JPG
Average charged guaranty fee on single-family conventional guaranty book of business, net of TCCA fees(1)
Average single-family conventional guaranty book of business(2)
Average charged guaranty fee on new single-family conventional acquisitions, net of TCCA fees(1)
Single-family conventional acquisitions
(1)    Excludes the impact of a 10 basis point guaranty fee increase implemented pursuant to the TCCA, the incremental revenue from which is remitted to Treasury and not retained by us.
(2)    Our single-family conventional guaranty book of business primarily consists of single-family conventional mortgage loans underlying Fannie Mae MBS outstanding. It also includes single-family conventional mortgage loans of Fannie Mae held in our retained mortgage portfolio, and other credit enhancements that we provide on single-family conventional mortgage assets. Our single-family conventional guaranty book of business does not include: (a) non-Fannie Mae single-family mortgage-related securities held in our retained mortgage portfolio for which we do not provide a guaranty; (b) mortgage loans guaranteed or insured, in whole or in part, by the U.S. government; or (c) Freddie Mac-acquired mortgage loans underlying Freddie Mac-issued UMBS that we have resecuritized. Our average single-family conventional guaranty book of business is based on quarter-end balances.
Average charged guaranty fee on newly acquired conventional single-family loans is a metric management uses to measure the price we earn as compensation for the credit risk we manage and to assess our return. Average charged guaranty fee represents, on an annualized basis, the sum of the base guaranty fees charged during the period for our new single-family conventional guaranty arrangements, which we will receive monthly over the life of the loan, plus the recognition of any upfront cash payments, including loan-level price adjustments and the adverse market refinance fee, based on an estimated average life at the time of acquisition. We use loan-level price adjustments, including various upfront risk-based fees, to price for the credit risk we assume in providing our guaranty. FHFA must approve changes to the national loan-level price adjustments we charge and can direct us to make other changes to our single-family guaranty fee pricing.
Our average charged guaranty fee on newly acquired conventional single-family loans, net of TCCA fee, increased in the second quarter of 2021 compared with the second quarter of 2020 primarily due to the implementation of the adverse market refinance fee in December 2020. In July 2021, FHFA directed us to eliminate the adverse market refinance fee effective August 1, 2021. As a result, we expect our average charged guaranty fee on new single-family conventional acquisitions to decrease in the second half of 2021. See “Legislation and Regulation—Elimination of Adverse Market Refinance Fee” for additional information on the adverse market refinance fee.

Fannie Mae Second Quarter 2021 Form 10-Q
30

MD&A | Single-Family Business | Single-Family Business Financial Results
Single-Family Business Financial Results(1)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 Variance 2021 2020 Variance
(Dollars in millions)
Net interest income(2)
$ 7,323  $ 4,939  $ 2,384  $ 13,217  $ 9,480  $ 3,737 
Fee and other income 80  71  142  165  (23)
Net revenues 7,403  5,010  2,393  13,359  9,645  3,714 
Investment gains (losses), net 658  96  562  722  (56) 778 
Fair value gains (losses), net (386) (1,030) 644  354  (1,490) 1,844 
Administrative expenses (619) (625) (1,242) (1,254) 12 
Credit-related income (expense)(3)
2,525  216  2,309  3,204  (2,034) 5,238 
TCCA fees(2)
(758) (660) (98) (1,489) (1,297) (192)
Credit enhancement expense (219) (307) 88  (445) (623) 178 
Change in expected credit enhancement recoveries(4)
(57) 208  (265) (73) 266  (339)
Other expenses, net(5)
(315) (252) (63) (602) (415) (187)
Income before federal income taxes 8,232  2,656  5,576  13,788  2,742  11,046 
Provision for federal income taxes (1,725) (556) (1,169) (2,887) (574) (2,313)
Net income $ 6,507  $ 2,100  $ 4,407  $ 10,901  $ 2,168  $ 8,733 
(1)See “Note 9, Segment Reporting” for information about our segment allocation methodology.
(2)Reflects the impact of a 10 basis point guaranty fee increase implemented pursuant to the TCCA, the incremental revenue from which is remitted to Treasury. The resulting revenue is included in net interest income and the expense is recognized as “TCCA fees.”
(3)Consists of the benefit or provision for credit losses and foreclosed property income or expense.
(4)Consists of change in benefits recognized from our single-family freestanding credit enhancements, which primarily relate to our CAS and CIRT programs.
(5)Consists primarily of debt extinguishment gains and losses, housing trust fund expenses, servicer fees paid in connection with certain loss mitigation activities, and loan subservicing costs.
Net Interest Income
Single-family net interest income increased in the second quarter and first half of 2021 compared with the second quarter and first half of 2020, primarily driven by higher net amortization income and higher base guaranty fee income, partially offset by lower income from portfolios.
The drivers of net interest income for the Single-Family segment are consistent with the drivers of net interest income in our condensed consolidated statements of operations and comprehensive income, which we discuss in “Consolidated Results of Operations—Net Interest Income.”
Investment Gains (Losses), Net
The increase in net investment gains in the second quarter of 2021 compared with the second quarter of 2020 and the shift from net investment losses in the first half of 2020 to net investment gains in the first half of 2021 was primarily driven by a significant increase in the volume of sales of single-family HFS loans in the 2021 periods. The drivers of investment gains (losses), net for the Single-Family segment are consistent with the drivers of investment gains (losses), net in our condensed consolidated statements of operations and comprehensive income, which we discuss in “Consolidated Results of Operations—Investment Gains (Losses), Net.”
Fair Value Gains (Losses), Net
Fair value losses, net in the second quarter of 2021 were primarily driven by decreases in the fair value of mortgage commitment derivatives, partially offset by gains on trading securities.
Fair value gains, net in the first half of 2021 were largely impacted by the implementation of our hedge accounting program resulting in the presentation of fair value losses on designated interest-rate swaps in “net interest income.” Fair value gains, net in the first half of 2021 were also driven by gains as a result of increases in the fair value of mortgage
Fannie Mae Second Quarter 2021 Form 10-Q
31

MD&A | Single-Family Business | Single-Family Business Financial Results
commitment derivatives and decreases in the fair value of long-term debt of consolidated trusts held at fair value, which were partially offset by losses on trading securities.
Fair value losses, net in the second quarter and first half of 2020 were primarily driven by decreases in the fair values of our mortgage commitments derivatives, partially offset by fair value gains on trading securities.
The drivers of fair value gains (losses), net for the Single-Family segment are consistent with the drivers of fair value gains (losses), net in our condensed consolidated statements of operations and comprehensive income, which we discuss in “Consolidated Results of Operations—Fair Value Gains (Losses), Net.”
For information on the implementation of our hedge accounting program and its impact on our financial statements, see “Consolidated Results of Operations—Hedge Accounting Impact” and “Consolidated Results of Operations—Fair Value Gains (Losses), Net.”
Credit-Related Income (Expense)
Credit-related income for the second quarter of 2021 was driven by a benefit for credit losses due primarily to strong actual and forecasted home price growth, the redesignation of certain reperforming loans from HFI to HFS, lower actual and projected interest rates, and a reduction in our allowance for loan losses for changes in assumptions regarding COVID-19 forbearance and loan delinquencies.
Credit-related income for the first half of 2021 was driven by a benefit for credit losses due primarily to strong actual and forecasted home price growth, the redesignation of certain reperforming loans from HFI to HFS and a reduction in our allowance for loan losses for changes in assumptions regarding COVID-19 forbearance and loan delinquencies. The impact of those factors was partially offset by higher actual and projected interest rates.
Credit-related income for the second quarter of 2020 was primarily driven by an increase in actual home prices. In the first quarter of 2020, our expectations for home price growth for 2020 were near-zero. However, in the second quarter of 2020, we revised our home price forecast for the year to reflect an increase in home price appreciation on a national basis for 2020 based on continued strong home sales at that time. This change contributed to credit-related income for the period.
Credit-related expense for the first half of 2020 was primarily driven by an increase in our allowance for loan losses due to losses we expected to incur as a result of the COVID-19 pandemic. This was partially offset by lower actual and projected mortgage interest rates.
See “Consolidated Results of Operations—Credit-Related Income (Expense)” in this report for more information on the primary factors that contributed to our single-family credit-related income (expense).
Single-Family Mortgage Credit Risk Management
This section updates our discussion of single-family mortgage credit risk management in our 2020 Form 10-K. For an overview of key elements of our mortgage credit risk management, see “Business—Managing Mortgage Credit Risk” in our 2020 Form 10-K. For additional information on our acquisition and servicing policies, underwriting and servicing standards, quality control process, repurchase requests, and representation and warranty framework, see “MD&A—Single-Family Business—Single-Family Mortgage Credit Risk Management” in our 2020 Form 10-K.
Single-Family Acquisition and Servicing Policies and Underwriting and Servicing Standards
COVID-19 Selling Policies
Based on current market conditions, we are no longer offering most of the COVID-19-related temporary flexibilities to our Selling Guide requirements that we had previously offered, such as purchasing loans that are subject to a COVID-19-related payment forbearance and offering additional methods of obtaining verbal verifications of borrower employment.
We have maintained our temporary selling policy updates to provide clarity and mitigate risk, including:
assessment of more recent documentation of borrower employment (including self-employment), income, and assets;
requiring evidence of receipt of funds from stocks, stock options and mutual funds when used for down payment or closing costs, and reducing the value to 70% when considered for reserves;
requiring additional due diligence regarding the payment status of a borrower’s existing mortgage loans;
providing clarity for assessing self-employment income for qualifying purposes; and
Fannie Mae Second Quarter 2021 Form 10-Q
32

MD&A | Single-Family Business | Single-Family Mortgage Credit Risk Management
requiring that loans be no more than six months old to be eligible for sale to us.
COVID-19 Servicing Policies
We continue to work with Freddie Mac as instructed by FHFA to implement temporary policies in response to the COVID-19 pandemic to enable our single-family loan servicers to better assist borrowers impacted by COVID-19. We issued initial requirements to servicers on temporary policies to assist borrowers impacted by COVID-19 in March 2020, and have subsequently amended the requirements. We will continue monitoring the market to determine whether further adjustments to or extensions of our temporary policies are appropriate.
These temporary policies include:
authorizing servicers to offer up to 12 months of forbearance, upon the request of any single-family borrower experiencing a financial hardship due to the COVID-19 pandemic, regardless of the borrower’s delinquency status; for loans already in a COVID-19-related forbearance as of February 28, 2021, servicers may grant an extension of forbearance for up to an additional six months, to a total of up to 18 months, provided that the forbearance does not result in the loan becoming greater than 18 months delinquent;
offering a payment deferral workout option to eligible borrowers who have resolved a COVID-19-related financial hardship but cannot afford to bring the loan current by reinstating the loan (that is, repaying all the missed payments at one time) or through a repayment plan (that is, repaying the missed payments over time). The payment deferral workout option allows the borrower to defer up to 18 months of past-due payments, without interest, to the end of the loan term (or when the loan is refinanced, the property is sold or the loan is otherwise paid off before the end of the loan term). All other terms of the loan remain unchanged;
adjusting the terms for a Flex Modification for COVID-19-impacted borrowers to provide an opportunity to reduce the interest rate regardless of the mortgage loan’s post-modified mark-to-market loan-to-value (“LTV”) ratio. This change, which was announced on June 30, 2021, is intended to help borrowers with a mark-to-market LTV ratio of less than 80% obtain a lower payment on their mortgage loan. Although servicers are encouraged to implement the policy change immediately, they must implement it no later than August 31, 2021;
suspending foreclosures and certain foreclosure-related activities for single-family properties through July 31, 2021, other than for vacant or abandoned properties; and
reporting as current to the credit bureaus the obligation of a borrower who receives a forbearance plan or other form of relief as a result of the COVID-19 pandemic during the period covered by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), if the borrower was current before the accommodation and makes payments as agreed under the accommodation in accordance with the Fair Credit Reporting Act, as amended by the CARES Act.
The CFPB and certain states and localities have implemented COVID-19-related borrower and/or renter protections that are more extensive than our Servicing Guide requirements. On June 28, 2021, the CFPB issued a final rule prohibiting certain new single-family foreclosures on mortgage loans secured by the borrower’s principal residence until after December 31, 2021. In addition, on June 29, 2021, FHFA announced that Fannie Mae servicers will not be permitted to initiate foreclosures that would be prohibited under the CFPB rule before the rule’s August 31, 2021 effective date. The CFPB and certain states and localities may continue to consider such proposals in the future or extend the time period of existing protections. Our servicers must comply with all applicable laws.
Single-Family Portfolio Diversification and Monitoring
The table below displays our single-family conventional business volumes and our single-family conventional guaranty book of business, based on certain key risk characteristics that we use to evaluate the risk profile and credit quality of our single-family loans. As shown in the table below, our single-family conventional guaranty book of business has been impacted by record home price appreciation in the first half of 2021. The weighted average mark-to-market LTV ratio decreased from 58% as of December 31, 2020 to 55% as of June 30, 2021, and the percentage of our single-family conventional guaranty book of business with a mark-to-market LTV ratio over 80% decreased from 13% of our single-family conventional guaranty book of business as of December 31, 2020, to 9% as of June 30, 2021.
We provide additional information on the credit characteristics of our single-family loans in quarterly financial supplements, which we furnish to the Securities and Exchange Commission (the “SEC”) with current reports on Form 8-K and make available on our website. Information in our quarterly financial supplements is not incorporated by reference into this report.
Fannie Mae Second Quarter 2021 Form 10-Q
33

MD&A | Single-Family Business | Single-Family Mortgage Credit Risk Management
Key Risk Characteristics of Single-Family Conventional Business Volume and Guaranty Book of Business(1)
Percent of Single-Family Conventional Business Volume at Acquisition(2)
Percent of Single-Family Conventional
Guaranty Book of Business(3)
As of
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 2021 2020 June 30, 2021 December 31, 2020
Original LTV ratio:(4)
<= 60% 31  % 24  % 33  % 23  % 25  % 23  %
60.01% to 70% 16  16  16  16  15  14 
70.01% to 80% 31  35  31  35  34  35 
80.01% to 90% 10  12  9  13  11  11 
90.01% to 95% 10  10  9  10  10  11 
95.01% to 100% 2  2  4 
Greater than 100% * * * * 1 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Weighted average
70  % 72  % 69  % 73  % 73  % 74  %
Average loan amount $ 281,749  $ 280,846  $ 282,169  $ 278,525  $ 192,919  $ 185,047 
Estimated mark-to-market LTV ratio:(5)
<= 60% 57  % 52  %
60.01% to 70% 19  17 
70.01% to 80% 15  18 
80.01% to 90% 7 
90.01% to 100% 2 
Greater than 100% * *
Total 100  % 100  %
Weighted average
55  % 58  %
FICO credit score at origination:
< 620   % * %   % * % 1  % %
620 to < 660 3  2  4 
660 to < 680 3  3  3 
680 to < 700 6  5  7 
700 to < 740 18  19  18  20  19  20 
>= 740 70  72  72  70  66  64 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Weighted average 757  759  759  757  752  750 
Debt-to-income (“DTI”) ratio at origination:(6)
<= 43% 78  % 80  % 79  % 78  % 78  % 77  %
43.01% to 45% 8  8  8 
Greater than 45% 14  12  13  14  14  14 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Weighted average 34  % 34  % 34  % 34  % 34  % 35  %
Fannie Mae Second Quarter 2021 Form 10-Q
34

MD&A | Single-Family Business | Single-Family Mortgage Credit Risk Management
Percent of Single-Family Conventional Business Volume at Acquisition(2)
Percent of Single-Family Conventional
Guaranty Book of Business(3)
As of
For the Three Months Ended June 30, For the Six Months Ended June 30,
2021 2020 2021 2020 June 30, 2021 December 31, 2020
Product type:
Fixed-rate:(7)
Long-term 82  % 85  % 83  % 85  % 84  % 85  %
Intermediate-term 17  15  17  14  15  14 
Total fixed-rate
99  100  100  99  99  99 
Adjustable-rate 1  * * 1 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Number of property units:
1 unit 98  % 98  % 98  % 98  % 97  % 97  %
2-4 units 2  2  3 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Property type:
Single-family homes 91  % 92  % 91  % 92  % 91  % 91  %
Condo/Co-op 9  9  9 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Occupancy type:
Primary residence 93  % 93  % 92  % 93  % 90  % 90  %
Second/vacation home 3  3  4 
Investor 4  5  6 
Total 100  % 100  % 100  % 100  % 100  % 100  %
Loan purpose:
Purchase 35  % 26  % 30  % 30  % 36  % 38  %
Cash-out refinance 22  20  21  21  20  20 
Other refinance 43  54  49  49  44  42 
Total 100  % 100  % 100  % 100  % 100  % 10