Mortgage loans held for portfolio include conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained primarily through the MPF program. The Bank’s mortgage loan program involves investment by the Bank in single-family mortgage loans held for portfolio, defined as one-to-four family residential properties, that are purchased from PFIs. Mortgage loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank’s PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. 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 PFI to a designated mortgage service provider.


	December 31,
	2025		2024
Fixed rate, long-term1 single-family mortgage loans	$	13,549	$	10,961
Fixed rate, medium-term2 single-family mortgage loans	904		856
Total unpaid principal balance	14,453		11,817
Premiums	156		130
Discounts	(54)		(33)
Basis adjustments from mortgage loan purchase commitments	(9)		(13)
Total mortgage loans held for portfolio3	14,546		11,901
Allowance for credit losses	(6)		(5)
Total mortgage loans held for portfolio, net	$	14,540	$	11,896


	December 31,
	2025		2024
Conventional mortgage loans	$	14,097	$	11,452
Government-guaranteed or -insured mortgage loans	356		365
Total unpaid principal balance	$	14,453	$	11,817

Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor borrower performance. Past due loans are those where the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. Other delinquency statistics include non-accrual loans and loans in process of foreclosure.


	December 31, 2025
	Origination Year
	Prior to 2021		2021 to 2025		Total
Past due 30 - 59 days	$	36	$	61	$	97
Past due 60 - 89 days	8		12		20
Past due 90 - 179 days	6		12		18
Past due 180 days or more	4		7		11
Total past due mortgage loans	54		92		146
Total current mortgage loans	3,243		10,796		14,039
Total amortized cost of mortgage loans1	$	3,297	$	10,888	$	14,185


	December 31, 2024
	Origination Year
	Prior to 2020		2020 to 2024		Total
Past due 30 - 59 days	$	28	$	41	$	69
Past due 60 - 89 days	8		11		19
Past due 90 - 179 days	5		7		12
Past due 180 days or more	4		4		8
Total past due mortgage loans	45		63		108
Total current mortgage loans	2,347		9,076		11,423
Total amortized cost of mortgage loans1	$	2,392	$	9,139	$	11,531

1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable.


	December 31, 2025
Amortized Cost	Conventional			Government-Insured			Total
In process of foreclosure1	$	2		$	1		$	3
Serious delinquency rate2	—		%	2		%	—		%
Past due 90 days or more and still accruing interest3	$	—		$	8		$	8
Non-accrual mortgage loans4	$	62		$	—		$	62


	December 31, 2024
Amortized Cost	Conventional			Government- Insured			Total
In process of foreclosure1	$	4		$	1		$	5
Serious delinquency rate2	—		%	2		%	—		%
Past due 90 days or more and still accruing interest3	$	—		$	7		$	7
Non-accrual mortgage loans4	$	49		$	—		$	49

2 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. Serious delinquency rate on conventional loans was less than one percent at December 31, 2025 and 2024.

4 Represents conventional mortgage loans that are 90 days or more past due or for which the collection of interest or principal is doubtful. At December 31, 2025 and 2024, $31 million and $25 million of conventional mortgage loans on non-accrual status were evaluated individually and do not have a related allowance for credit losses because these loans were either previously charged off to the expected recoverable value and/or the fair value of the underlying collateral is greater than the amortized cost of the loans.

The Bank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. The Bank’s allowance for credit losses on conventional mortgage loans was $6 million and $5 million at December 31, 2025 and 2024.

For collectively evaluated loans, the Bank uses a projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as current and projected property values and interest rates, as well as historical borrower behavior experience. The Bank also incorporates associated credit enhancements when determining its estimate of expected credit losses. The Bank may incorporate a management adjustment in the allowance for credit losses for conventional mortgage loans due to changes in economic and business conditions or other factors that may not be fully captured in its model.

For individually evaluated loans, the Bank uses the practical expedient for collateral-dependent assets. A mortgage loan is considered collateral-dependent when repayment is expected to be provided solely by the sale of the underlying collateral. The Bank estimates the fair value of this collateral using a property valuation model. The expected credit loss of a collateral- dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs and expected proceeds from PMI. The Bank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs are included in the allowance for credit losses.

The Bank invests in government-insured fixed rate mortgage loans portfolios that are insured or guaranteed by the FHA, the Department of Veterans Affairs, Department of Housing and Urban Development, and/or the Rural Housing Service of the Department of Agriculture. The servicer or PFI obtains and maintains insurance or a guaranty from the applicable government agency.

The Bank has never experienced a credit loss on its government-insured mortgage loans. At December 31, 2025 and 2024, the Bank assessed its servicers and determined there was no expectation that a servicer would fail to remit payments due until paid in full. As a result, the Bank did not establish an allowance for credit losses for its government-insured mortgage loans at December 31, 2025 and 2024. Furthermore, none of these mortgage loans have been placed on non-accrual status because of the U.S. Government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.