We invest in mortgage loans through the Mortgage Partnership Finance® (MPF®) program. These mortgage loans are either guaranteed or insured by federal agencies, as is the case with government mortgage loans, or are credit-enhanced, directly or indirectly, by the related entity that sold the loan (a participating financial institution), as is the case with conventional mortgage loans. All such investments are held for portfolio.


	March 31, 2025		December 31, 2024
Real estate
Fixed-rate 15-year single-family mortgages	$	150,676	$	158,349
Fixed-rate 20- and 30-year single-family mortgages	3,578,343		3,485,188
Premiums	45,476		44,801
Discounts	(6,218)		(5,921)
Deferred derivative losses, net	(810)		(1,067)
Total mortgage loans held for portfolio(1)	3,767,467		3,681,350
Less: allowance for credit losses	(2,200)		(2,200)
Total mortgage loans, net of allowance for credit losses	$	3,765,267	$	3,679,150

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Credit-Enhancements. Our allowance for credit losses factors in the credit-enhancements associated with conventional mortgage loans under the MPF Program. These credit-enhancements apply after the homeowner's equity is exhausted and can include primary and/or supplemental mortgage insurance or other kinds of credit-enhancement. The credit risk analysis of our conventional loans is performed at the individual master commitment level to determine the credit-enhancements available to recover losses on loans under each individual master commitment. For additional information on credit enhancements see Part II — Item 8 — Financial Statements — Note 6 — Mortgage Loans Held for Portfolio — Credit-Enhancements in the 2024 Annual Report.

Payment Status of Mortgage Loans. Payment status is a key credit quality indicator for conventional mortgage loans and allows us to monitor borrower performance. A past due loan is one for which the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure. Tables 4.3 and 4.4 present the payment status for conventional mortgage loans and other delinquency statistics for all mortgage loans at March 31, 2025, and December 31, 2024.


	March 31, 2025
	Year of Origination
Payment Status at Amortized Cost(1)	Prior to 2021		2021 to 2025		Total
Past due 30-59 days delinquent	$	13,309	$	6,901	$	20,210
Past due 60-89 days delinquent	4,573		772		5,345
Past due 90 days or more delinquent	6,308		1,141		7,449
Total past due	24,190		8,814		33,004
Total current loans	1,740,433		1,860,623		3,601,056
Total conventional mortgage loans	$	1,764,623	$	1,869,437	$	3,634,060


	December 31, 2024
	Year of Origination
Payment Status at Amortized Cost(1)	Prior to 2020		2020 to 2024		Total
Past due 30-59 days delinquent	$	18,396	$	6,605	$	25,001
Past due 60-89 days delinquent	4,808		1,851		6,659
Past due 90 days or more delinquent	5,419		692		6,111
Total past due	28,623		9,148		37,771
Total current loans	1,279,577		2,227,402		3,506,979
Total conventional mortgage loans	$	1,308,200	$	2,236,550	$	3,544,750

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	March 31, 2025
	Amortized Cost in Conventional Mortgage Loans			Amortized Cost in Government Mortgage Loans			Total
In process of foreclosure (1)	$	1,116		$	1,025		$	2,141
Serious delinquency rate (2)	0.21		%	1.60		%	0.26		%
Past due 90 days or more still accruing interest	$	—		$	2,130		$	2,130
Loans on nonaccrual status (3)	$	7,703		$	—		$	7,703


	December 31, 2024
	Amortized Cost in Conventional Mortgage Loans			Amortized Cost in Government Mortgage Loans			Total
In process of foreclosure (1)	$	1,144		$	771		$	1,915
Serious delinquency rate (2)	0.17		%	1.51		%	0.22		%
Past due 90 days or more still accruing interest	$	—		$	2,060		$	2,060
Loans on nonaccrual status (3)	$	6,111		$	—		$	6,111

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(3) As of March 31, 2025, and December 31, 2024, $3.0 million and $3.2 million, respectively, of conventional mortgage loans on nonaccrual status did not have an associated allowance for credit losses because either these loans were charged off or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans.

Conventional Mortgage Loans. Conventional mortgage loans are evaluated collectively when similar risk characteristics exist. Conventional mortgage loans that do not share risk characteristics with other mortgage loans are evaluated for expected credit losses on an individual basis. We determine our allowance for credit losses on conventional mortgage 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. We use a discounted cash flow model to project our expected losses. We use a third-party model to project cash flows to estimate the expected credit losses over the life of the loans. The model relies on several inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior. We incorporate associated credit-enhancements and expected recoveries, if any, to determine our estimate of expected credit losses.

Certain conventional mortgage loans may be evaluated for credit losses by using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be made substantially through the sale of the underlying collateral. We estimate the fair value of this collateral by using a third-party property valuation model. The expected credit loss of a collateral dependent conventional 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. We reserve for these estimated losses or record a direct charge-off of the loan balance if certain triggering criteria are met.

(1) These amounts exclude government mortgage loans because we make no allowance for credit losses based on our investments in government mortgage loans, as discussed below under — Government Mortgage Loans Held for Portfolio.

Government Mortgage Loans Held for Portfolio. We invest in government mortgage loans secured by one- to four-family residential properties. Government mortgage loans are mortgage loans insured or guaranteed by the Federal Housing Administration (the FHA), the U.S. Department of Veterans Affairs (the VA), the Rural Housing Service of the U.S. Department of Agriculture (RHS), or the U.S. Department of Housing and Urban Development (HUD).

Any losses incurred on these loans that are not recovered from the insurer or guarantor are absorbed by the related servicer. Therefore, we only have credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees, but in such instances, we will have recourse against the servicer for such failure. Due to government guarantees or insurance on our government loans, there is no allowance for credit losses for the government mortgage loan portfolio as of March 31, 2025, and December 31, 2024. Additionally, government mortgage loans are not placed on nonaccrual status due to the government guarantee or insurance on these loans and the contractual obligation of the loan servicers to repurchase their related loans when certain criteria are met.