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Mortgage Loans Held for Portfolio
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Mortgage Loans Held for Portfolio [Text Block] Mortgage Loans Held for Portfolio

Mortgage loans held for portfolio includes conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained through the MPF program and the MPP. The MPF program, which represented 98 and 97 percent of the Bank’s mortgage loans held for portfolio at December 31, 2019 and December 31, 2018, involves investment by the Bank in single-family mortgage loans held for portfolio that are either purchased from PFIs or funded by the Bank through PFIs. MPF loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank’s MPF PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. MPF PFIs participating in the servicing release program do not service the loans owned by the Bank. The servicing on these loans is sold concurrently by the MPF PFI to a designated mortgage service provider.

Under the MPP, the Bank acquired single-family mortgage loans that were purchased directly from MPP PFIs. Similar to the MPF program, MPP PFIs generally originated, serviced, and credit enhanced the mortgage loan sold to the Bank. The MPP program represented two and three percent of the Bank’s mortgage loans held for portfolio at December 31, 2019 and December 31, 2018. The Bank does not currently purchase mortgage loans under this program. All loans in this portfolio were originated prior to 2006.

The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions):
 
December 31,
 
2019
 
2018
Fixed rate, long-term single-family mortgage loans
$
8,192

 
$
6,860

Fixed rate, medium-term1 single-family mortgage loans
1,016

 
874

Total unpaid principal balance
9,208

 
7,734

Premiums
125

 
105

Discounts
(4
)
 
(5
)
Basis adjustments from mortgage loan purchase commitments
6

 
2

Total mortgage loans held for portfolio
$
9,335

 
$
7,836

Allowance for credit losses
(1
)
 
(1
)
Total mortgage loans held for portfolio, net
$
9,334

 
$
7,835




1
Medium-term is defined as a term of 15 years or less.

The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions):
 
December 31,
 
2019
 
2018
Conventional mortgage loans
$
8,712

 
$
7,231

Government-insured mortgage loans
496

 
503

Total unpaid principal balance
$
9,208

 
$
7,734


For information related to the Bank’s credit risk exposure on mortgage loans held for portfolio, refer to “Note 10 — Allowance for Credit Losses.”