Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Loan Losses Rollforward by Segment [Table Text Block]

The following table displays changes in single-family, multifamily and total allowance for loan losses for the three and nine months ended September 30, 2012 and 2011.



	For the Three Months Ended September 30,
	2012										2011
	Of Fannie Mae			Of Consolidated Trusts				Total			Of Fannie Mae			Of Consolidated Trusts				Total
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	51,322			$	10,812		$	62,134		$	54,949			$	13,078		$	68,027
Provision (benefit) for loan losses⁽¹⁾	3,104				(922		)	2,182			(235		)		4,318			4,083
Charge-offs⁽²⁾⁽³⁾	(3,281		)		(232		)	(3,513		)	(3,802		)		(260		)	(4,062		)
Recoveries	323				27			350			848				35			883
Transfers⁽⁴⁾	1,372				(1,372		)	—			1,764				(1,764		)	—
Other⁽⁵⁾	710				34			744			860				137			997
Ending balance	$	53,550			$	8,347		$	61,897		$	54,384			$	15,544		$	69,928
Multifamily allowance for loan losses:
Beginning balance	$	760			$	481		$	1,241		$	1,017			$	462		$	1,479
(Benefit) provision for loan losses⁽¹⁾	(75		)		(24		)	(99		)	39				37			76
Charge-offs⁽²⁾⁽³⁾	(28		)		—			(28		)	(51		)		—			(51		)
Transfers⁽⁴⁾	6				(6		)	—			6				(6		)	—
Other⁽⁵⁾	1				—			1			3				—			3
Ending balance	$	664			$	451		$	1,115		$	1,014			$	493		$	1,507
Total allowance for loan losses:
Beginning balance	$	52,082			$	11,293		$	63,375		$	55,966			$	13,540		$	69,506
Provision (benefit) for loan losses⁽¹⁾	3,029				(946		)	2,083			(196		)		4,355			4,159
Charge-offs⁽²⁾⁽³⁾	(3,309		)		(232		)	(3,541		)	(3,853		)		(260		)	(4,113		)
Recoveries	323				27			350			848				35			883
Transfers⁽⁴⁾	1,378				(1,378		)	—			1,770				(1,770		)	—
Other⁽⁵⁾	711				34			745			863				137			1,000
Ending balance⁽⁶⁾	$	54,214			$	8,798		$	63,012		$	55,398			$	16,037		$	71,435



	For the Nine Months Ended September 30,
	2012												2011
	Of Fannie Mae				Of Consolidated Trusts				Total				Of Fannie Mae				Of Consolidated Trusts				Total
		(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance		$	56,294			$	14,339			$	70,633			$	47,377			$	12,603			$	59,980
Provision (benefit) for loan losses⁽¹⁾		1,260				(372		)		888				9,962				10,410				20,372
Charge-offs⁽²⁾⁽³⁾		(11,409		)		(703		)		(12,112		)		(14,766		)		(1,466		)		(16,232		)
Recoveries		1,185				136				1,321				3,197				1,537				4,734
Transfers⁽⁴⁾		5,172				(5,172		)		—				7,676				(7,676		)		—
Other⁽⁵⁾		1,048				119				1,167				938				136				1,074
Ending balance		$	53,550			$	8,347			$	61,897			$	54,384			$	15,544			$	69,928
Multifamily allowance for loan losses:
Beginning balance		$	1,015			$	508			$	1,523			$	1,153			$	423			$	1,576
(Benefit) provision for loan losses⁽¹⁾		(177		)		(35		)		(212		)		41				135				176
Charge-offs⁽²⁾⁽³⁾		(216		)		—				(216		)		(252		)		—				(252		)
Transfers⁽⁴⁾		23				(23		)		—				63				(63		)		—
Other⁽⁵⁾		19				1				20				9				(2		)		7
Ending balance		$	664			$	451			$	1,115			$	1,014			$	493			$	1,507
Total allowance for loan losses:
Beginning balance		$	57,309			$	14,847			$	72,156			$	48,530			$	13,026			$	61,556
Provision (benefit) for loan losses⁽¹⁾		1,083				(407		)		676				10,003				10,545				20,548
Charge-offs⁽²⁾⁽³⁾		(11,625		)		(703		)		(12,328		)		(15,018		)		(1,466		)		(16,484		)
Recoveries		1,185				136				1,321				3,197				1,537				4,734
Transfers⁽⁴⁾		5,195				(5,195		)		—				7,739				(7,739		)		—
Other⁽⁵⁾		1,067				120				1,187				947				134				1,081
Ending balance⁽⁶⁾		$	54,214			$	8,798			$	63,012			$	55,398			$	16,037			$	71,435

__________


⁽¹⁾	Provision (benefit) for loan losses is included in (provision) benefit for credit losses in our condensed consolidated statements of operations and comprehensive income (loss).


⁽²⁾	While we purchase the substantial majority of loans that are four or more months delinquent from our MBS trusts, we do not exercise this option to purchase loans during a forbearance period. Accordingly, charge-offs of consolidated trusts generally represent loans that remained in our consolidated trusts at the time of default.

⁽³⁾

Total charge-offs include accrued interest of $198 million and $289 million for the three months ended September 30, 2012 and 2011, respectively, and $709 million and $1.1 billion for the nine months ended September 30, 2012 and 2011, respectively. Single-family charge-offs include accrued interest of $196 million and $279 million for the three months ended September 30, 2012 and 2011, respectively, and $682 million and $1.1 billion for the nine months ended September 30, 2012 and 2011, respectively. Multifamily charge-offs include accrued interest of $2 million and $10 million for the three months ended September 30, 2012 and 2011, respectively, and $27 million and $34 million for the nine months ended September 30, 2012 and 2011, respectively.


⁽⁴⁾	Includes transfers from trusts for delinquent loan purchases.

⁽⁵⁾

Amounts represent the net activity recorded in our allowances for accrued interest receivable and preforeclosure property taxes and insurance receivable from borrowers. The provision for credit losses, charge-offs, recoveries and transfer activity included in this table reflects all changes for both the allowance for loan losses and the valuation allowances for accrued interest and preforeclosure property taxes and insurance receivable that relate to the mortgage loans.


⁽⁶⁾	Total allowance for loan losses includes $376 million and $334 million as of September 30, 2012 and 2011, respectively, for acquired credit-impaired loans.

Allowance for Loan Losses and Total Recorded Investment in HFI Loans [Table Text Block]

The following table displays the allowance for loan losses and total recorded investment in our HFI loans, excluding loans for which we have elected the fair value option, by impairment or reserve methodology and portfolio segment as of September 30, 2012 and December 31, 2011.



	As of
	September 30, 2012⁽¹⁾							December 31, 2011
	Single-Family		Multifamily			Total		Single-Family		Multifamily			Total
	(Dollars in millions)
Allowance for loan losses by segment:
Individually impaired loans	$	47,784		$	450	$	48,234	$	45,765		$	717	$	46,482
Collectively reserved loans	13,738			664		14,402		24,494			805		25,299
Acquired credit-impaired loans	375			1		376		374			1		375
Total allowance for loan losses	$	61,897		$	1,115	$	63,012	$	70,633		$	1,523	$	72,156

Recorded investment in loans by segment:⁽²⁾
Individually impaired loans	$	190,104		$	3,934	$	194,038	$	161,942		$	4,579	$	166,521
Collectively reserved loans	2,629,379			182,896		2,812,275		2,634,456			174,595		2,809,051
Acquired credit-impaired loans	2,622			39		2,661		3,272			47		3,319
Total recorded investment in loans	$	2,822,105		$	186,869	$	3,008,974	$	2,799,670		$	179,221	$	2,978,891

__________


⁽¹⁾	As of September 30, 2012, we began classifying as TDRs loans to certain borrowers who have received bankruptcy relief. These loans had a recorded investment of $22.9 billion and a related allowance of $1.1 billion as of September 30, 2012.


⁽²⁾	Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.