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Mortgage Loans
12 Months Ended
Dec. 31, 2013
Mortgage Loans on Real Estate [Abstract]  
Mortgage Loans
Mortgage Loans
We own both single-family mortgage loans, which are secured by four or fewer residential dwelling units, and multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these loans as either HFI or HFS. We report HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and an allowance for loan losses. We report HFS loans at the lower of cost or fair value determined on a pooled basis, and record valuation changes in our consolidated statements of operations and comprehensive income (loss).
The following table displays our mortgage loans as of December 31, 2013 and 2012.
 
As of December 31,
 
2013
 
2012
 
Of Fannie Mae
 
Of Consolidated Trusts
 
Total
 
Of Fannie Mae
 
Of Consolidated Trusts
 
Total
 
(Dollars in millions)
Single-family
 
$
276,644

 
 
 
$
2,579,024

 
 
 
$
2,855,668

 
 
 
$
309,277

 
 
 
$
2,480,999

 
 
 
$
2,790,276

 
Multifamily
 
37,642

 
 
 
146,249

 
 
 
183,891

 
 
 
61,464

 
 
 
126,953

 
 
 
188,417

 
Total unpaid principal balance of mortgage loans
 
314,286

 
 
 
2,725,273

 
 
 
3,039,559

 
 
 
370,741

 
 
 
2,607,952

 
 
 
2,978,693

 
Cost basis and fair value adjustments, net
 
(13,778
)
 
 
 
44,305

 
 
 
30,527

 
 
 
(14,805
)
 
 
 
44,313

 
 
 
29,508

 
Allowance for loan losses for loans held for investment
 
(40,521
)
 
 
 
(3,325
)
 
 
 
(43,846
)
 
 
 
(50,519
)
 
 
 
(8,276
)
 
 
 
(58,795
)
 
Total mortgage loans
 
$
259,987

 
 
 
$
2,766,253

 
 
 
$
3,026,240

 
 
 
$
305,417

 
 
 
$
2,643,989

 
 
 
$
2,949,406

 

For the year ended December 31, 2013 we redesignated loans from HFI to HFS with a carrying value of $1.3 billion, and sold loans with an unpaid principal balance of $1.2 billion. For the years ended December 31, 2012 and 2011, we redesignated loans with a carrying value of $33 million and $561 million, respectively, from HFI to HFS.
Aging Analysis
The following tables display an aging analysis of the total recorded investment in our HFI mortgage loans, excluding loans for which we have elected the fair value option, by portfolio segment and class as of December 31, 2013 and 2012.
  
As of December 31, 2013(1)
 
30 - 59 Days
Delinquent
 
60 - 89 Days Delinquent
 
Seriously Delinquent(2)
 
Total Delinquent
 
Current
 
Total
 
Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest
 
Recorded Investment in Nonaccrual Loans 
  
(Dollars in millions)
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary(3)
 
$
32,371

 
 
 
$
9,755

 
 
 
$
48,345

 
 
 
$
90,471

 
 
$
2,558,826

 
$
2,649,297

 
 
$
81

 
 
$
57,973

Government(4)
 
66

 
 
 
32

 
 
 
346

 
 
 
444

 
 
48,150

 
48,594

 
 
346

 
 

Alt-A 
 
4,748

 
 
 
1,692

 
 
 
15,425

 
 
 
21,865

 
 
105,644

 
127,509

 
 
11

 
 
17,102

Other(5)
 
1,940

 
 
 
659

 
 
 
5,404

 
 
 
8,003

 
 
45,288

 
53,291

 
 
22

 
 
5,999

Total single-family 
 
39,125

 
 
 
12,138

 
 
 
69,520

 
 
 
120,783

 
 
2,757,908

 
2,878,691

 
 
460

 
 
81,074

Multifamily(6)
 
59

 
 
 
 N/A

 
 
 
186

 
 
 
245

 
 
185,733

 
185,978

 
 

 
 
2,209

Total 
 
$
39,184

 
 
 
$
12,138

 
 
 
$
69,706

 
 
 
$
121,028

 
 
$
2,943,641

 
$
3,064,669

 
 
$
460

 
 
$
83,283

  
As of December 31, 2012(1)
 
30 - 59 Days
Delinquent
 
60 - 89 Days Delinquent
 
Seriously Delinquent(2)
 
Total Delinquent
 
Current
 
Total
 
Recorded Investment in Loans 90 Days or More Delinquent and Accruing Interest(7)
 
Recorded Investment in Nonaccrual Loans 
  
(Dollars in millions)
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary(3)
 
$
39,043

 
 
 
$
13,513

 
 
 
$
67,737

 
 
 
$
120,293

 
 
$
2,424,022

 
$
2,544,315

 
 
$
2,162

 
 
$
78,822

Government(4)
 
82

 
 
 
40

 
 
 
340

 
 
 
462

 
 
50,408

 
50,870

 
 
340

 
 

Alt-A 
 
6,009

 
 
 
2,417

 
 
 
22,181

 
 
 
30,607

 
 
121,099

 
151,706

 
 
502

 
 
24,048

Other(5)
 
2,613

 
 
 
1,053

 
 
 
8,527

 
 
 
12,193

 
 
57,336

 
69,529

 
 
297

 
 
9,209

Total single-family 
 
47,747

 
 
 
17,023

 
 
 
98,785

 
 
 
163,555

 
 
2,652,865

 
2,816,420

 
 
3,301

 
 
112,079

Multifamily(6)
 
178

 
 
 
 N/A

 
 
 
428

 
 
 
606

 
 
190,445

 
191,051

 
 

 
 
2,214

Total 
 
$
47,925

 
 
 
$
17,023

 
 
 
$
99,213

 
 
 
$
164,161

 
 
$
2,843,310

 
$
3,007,471

 
 
$
3,301

 
 
$
114,293

__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
(2) 
Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due.
(3) 
Consists of mortgage loans that are not included in other loan classes.
(4) 
Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A. Primarily consists of reverse mortgages which due to their nature are not aged and are included in the current column.
(5) 
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A.
(6) 
Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.
(7) 
Includes loans with a recorded investment of $2.8 billion, which were repurchased in January 2013 pursuant to our resolution agreement with Bank of America. These loans were returned to accrual status to reflect the change in our assessment of collectibility resulting from this agreement.
Credit Quality Indicators
The following table displays the total recorded investment in our single-family HFI loans, excluding loans for which we have elected the fair value option, by class and credit quality indicator as of December 31, 2013 and 2012. The single-family credit quality indicator is based on available data through the end of each respective period presented.
  
As of December 31, 
  
2013(1)(2)
 
2012(1)(2)
  
Primary (3)
 
Alt-A
 
Other (4)
 
Primary (3)
 
Alt-A
 
Other (4)
  
(Dollars in millions) 
Estimated mark-to-market LTV ratio: (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than or equal to 80% 
$
2,073,079

 
$
61,670

 
 
$
24,112

 
 
$
1,703,384

 
$
57,419

 
 
$
21,936

 
Greater than 80%  and less than or equal to 90%
276,011

 
16,794

 
 
6,947

 
 
346,018

 
18,313

 
 
7,287

 
Greater than 90%  and less than or equal to 100%
153,474

 
14,709

 
 
6,402

 
 
219,736

 
16,930

 
 
7,369

 
Greater than 100% and less than or equal to 110%
59,630

 
11,006

 
 
5,146

 
 
100,302

 
14,293

 
 
7,169

 
Greater than 110%  and less than or equal to 120%
33,954

 
7,742

 
 
3,691

 
 
59,723

 
10,994

 
 
6,231

 
Greater than 120%  and less than or equal to 125%
11,256

 
2,951

 
 
1,406

 
 
20,620

 
4,387

 
 
2,665

 
Greater than 125% 
41,893

 
12,637

 
 
5,587

 
 
94,532

 
29,370

 
 
16,872

 
Total 
$
2,649,297

 
$
127,509

 
 
$
53,291

 
 
$
2,544,315

 
$
151,706

 
 
$
69,529

 
__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
(2) 
Excludes $48.6 billion and $50.9 billion as of December 31, 2013 and 2012, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A loans. The segment class is primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV ratio.
(3) 
Consists of mortgage loans that are not included in other loan classes.
(4) 
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A.
(5) 
The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan as of the end of each reported period divided by the estimated current value of the property, which we calculate using an internal valuation model that estimates periodic changes in home value.
As of September 30, 2013, we modified our multifamily credit quality indicator, which more closely aligns the classification of the internally assigned risk categories to the classification guidelines used in the industry and those established under the FHFA Advisory Bulletin 2012-02 issued in 2012. The modification of the credit quality indicator had an insignificant impact on our multifamily allowance for loan losses for the year ended December 31, 2013. The multifamily credit quality indicator is based on available data through the end of each respective period presented. The following tables display the total recorded investment in our multifamily HFI loans, excluding loans for which we have elected the fair value option, by credit quality indicator as of December 31, 2013 and 2012.
  
As of
  
December 31, 2013(1)
  
(Dollars in millions) 
Credit risk profile by internally assigned grade:(2)
 
  
 
Pass
 
$
176,528

 
Special Mention
 
2,234

 
Substandard
 
6,758

 
Doubtful
 
458

 
Total
 
$
185,978

 

  
As of
 
December 31, 2012(1)
  
(Dollars in millions) 
Credit risk profile by internally assigned grade:(3)
 
  
 
Green
 
$
154,235

 
Yellow(4)
 
21,304

 
Orange
 
14,199

 
Red
 
1,313

 
Total
 
$
191,051

 
__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
(2) 
Pass (loan is current and adequately protected by the current financial strength and debt service capacity of the borrower); special mention (loan with signs of potential weakness); substandard (loan with a well defined weakness that jeopardizes the timely full repayment); and doubtful (loan with a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions and values).
(3) 
Green (loan with acceptable risk); yellow (loan with signs of potential weakness); orange (loan with a well defined weakness that may jeopardize the timely full repayment); and red (loan with a weakness that makes timely collection or liquidation in full more questionable based on existing conditions and values).
(4) 
Includes approximately $5.1 billion of unpaid principal balance as of December 31, 2012 classified as yellow due to no available current financial information.
Individually Impaired Loans
Individually impaired loans include TDRs, acquired credit-impaired loans and multifamily loans that we have assessed as probable that we will not collect all contractual amounts due, regardless of whether we are currently accruing interest. The following tables display the total unpaid principal balance, recorded investment, and related allowance as of December 31, 2013 and 2012, and average recorded investment and interest income recognized for the years ended December 31, 2013, 2012 and 2011 for individually impaired loans.
 
As of December 31,
 
2013
 
2012
 
Unpaid Principal Balance
 
Total Recorded Investment (1)
 
Related Allowance for Loan Losses
 
Related Allowance for Accrued Interest Receivable
 
Unpaid Principal Balance
 
Total Recorded Investment (1)
 
Related Allowance for Loan Losses
 
Related Allowance for Accrued Interest Receivable
 
(Dollars in millions)
Individually impaired loans: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With related allowance recorded: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary(2)
 
$
130,080

 
 
 
$
123,631

 
 
$
24,145

 
$
430

 
 
$
132,754

 
 
 
$
126,106

 
 
$
28,610

 
$
628

Government (3)
 
213

 
 
 
210

 
 
35

 
5

 
 
214

 
 
 
208

 
 
38

 
4

Alt-A 
 
37,356

 
 
 
34,479

 
 
9,364

 
187

 
 
38,387

 
 
 
35,620

 
 
11,154

 
267

Other (4)
 
15,789

 
 
 
15,023

 
 
3,879

 
56

 
 
16,873

 
 
 
16,114

 
 
4,743

 
86

Total single-family 
 
183,438

 
 
 
173,343

 
 
37,423

 
678

 
 
188,228

 
 
 
178,048

 
 
44,545

 
985

Multifamily 
 
2,257

 
 
 
2,276

 
 
306

 
10

 
 
2,449

 
 
 
2,471

 
 
489

 
13

Total individually impaired loans with related allowance recorded 
 
185,695

 
 
 
175,619

 
 
37,729

 
688

 
 
190,677

 
 
 
180,519

 
 
45,034

 
998

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With no related allowance recorded:(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary(2)
 
14,076

 
 
 
12,305

 
 

 

 
 
16,222

 
 
 
13,901

 
 

 

Government(3)
 
120

 
 
 
120

 
 

 

 
 
104

 
 
 
104

 
 

 

Alt-A 
 
3,290

 
 
 
2,428

 
 

 

 
 
3,994

 
 
 
2,822

 
 

 

Other (4)
 
1,039

 
 
 
868

 
 

 

 
 
1,218

 
 
 
977

 
 

 

Total single-family 
 
18,525

 
 
 
15,721

 
 

 

 
 
21,538

 
 
 
17,804

 
 

 

Multifamily 
 
1,927

 
 
 
1,939

 
 

 

 
 
2,056

 
 
 
2,068

 
 

 

Total individually impaired loans with no related allowance recorded 
 
20,452

 
 
 
17,660

 
 

 

 
 
23,594

 
 
 
19,872

 
 

 

Total individually impaired loans(6)
 
$
206,147

 
 
 
$
193,279

 
 
$
37,729

 
$
688

 
 
$
214,271

 
 
 
$
200,391

 
 
$
45,034

 
$
998


 
For the Year Ended December 31,
 
2013
 
2012
 
2011
 
Average Recorded Investment
 
Total Interest Income Recognized (7)
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized (7)
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized (7)
 
Interest Income Recognized on a Cash Basis
 
(Dollars in millions)
Individually impaired loans: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With related allowance recorded: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary (2)
 
$
124,659

 
 
 
$
4,351

 
 
 
$
603

 
 
 
$
115,767

 
 
 
$
4,077

 
 
 
$
654

 
 
 
$
100,797

 
 
 
$
3,735

 
 
 
$
733

 
Government (3)
 
213

 
 
 
11

 
 
 

 
 
 
216

 
 
 
11

 
 
 

 
 
 
229

 
 
 
12

 
 
 

 
Alt-A 
 
35,075

 
 
 
1,096

 
 
 
135

 
 
 
32,978

 
 
 
1,048

 
 
 
151

 
 
 
29,561

 
 
 
982

 
 
 
186

 
Other (4)
 
15,537

 
 
 
425

 
 
 
52

 
 
 
15,593

 
 
 
444

 
 
 
65

 
 
 
14,431

 
 
 
435

 
 
 
90

 
Total single-family 
 
175,484

 
 
 
5,883

 
 
 
790

 
 
 
164,554

 
 
 
5,580

 
 
 
870

 
 
 
145,018

 
 
 
5,164

 
 
 
1,009

 
Multifamily 
 
2,552

 
 
 
128

 
 
 
1

 
 
 
2,535

 
 
 
125

 
 
 
2

 
 
 
2,430

 
 
 
103

 
 
 
5

 
Total individually impaired loans with related allowance recorded 
 
178,036

 
 
 
6,011

 
 
 
791

 
 
 
167,089

 
 
 
5,705

 
 
 
872

 
 
 
147,448

 
 
 
5,267

 
 
 
1,014

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded: (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary (2)
 
11,442

 
 
 
1,369

 
 
 
227

 
 
 
8,264

 
 
 
1,075

 
 
 
231

 
 
 
6,884

 
 
 
606

 
 
 
204

 
Government (3)
 
112

 
 
 
8

 
 
 

 
 
 
78

 
 
 
7

 
 
 

 
 
 
12

 
 
 
7

 
 
 

 
Alt-A 
 
2,207

 
 
 
329

 
 
 
45

 
 
 
1,811

 
 
 
253

 
 
 
55

 
 
 
1,771

 
 
 
205

 
 
 
63

 
Other (4)
 
752

 
 
 
117

 
 
 
17

 
 
 
455

 
 
 
95

 
 
 
24

 
 
 
467

 
 
 
57

 
 
 
19

 
Total single-family 
 
14,513

 
 
 
1,823

 
 
 
289

 
 
 
10,608

 
 
 
1,430

 
 
 
310

 
 
 
9,134

 
 
 
875

 
 
 
286

 
Multifamily 
 
1,863

 
 
 
97

 
 
 
3

 
 
 
1,781

 
 
 
56

 
 
 
2

 
 
 
993

 
 
 
48

 
 
 
8

 
 Total individually impaired loans with no related allowance recorded 
 
16,376

 
 
 
1,920

 
 
 
292

 
 
 
12,389

 
 
 
1,486

 
 
 
312

 
 
 
10,127

 
 
 
923

 
 
 
294

 
Total individually impaired loans(6)
 
$
194,412

 
 
 
$
7,931

 
 
 
$
1,083

 
 
 
$
179,478

 
 
 
$
7,191

 
 
 
$
1,184

 
 
 
$
157,575

 
 
 
$
6,190

 
 
 
$
1,308

 
__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable.
(2) 
Consists of mortgage loans that are not included in other loan classes.
(3) 
Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
(4) 
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A.
(5) 
The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.
(6) 
Includes single-family loans restructured in a TDR with a recorded investment of $187.6 billion, $193.4 billion and $161.9 billion as of December 31, 2013, 2012 and 2011, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $911 million, $1.1 billion and $956 million as of December 31, 2013, 2012 and 2011, respectively.
(7) 
Total single-family interest income recognized of $7.7 billion for the year ended December 31, 2013 consists of $5.7 billion of contractual interest and $2.0 billion of effective yield adjustments. Total single-family interest income recognized of $7.0 billion for the year ended December 31, 2012 consists of $5.3 billion of contractual interest and $1.7 billion of effective yield adjustments. Total single-family interest income recognized of $6.0 billion for the year ended December 31, 2011 consists of $4.5 billion of contractual interest and $1.6 billion of effective yield adjustments.
Troubled Debt Restructurings
A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. In addition to formal loan modifications, we also engage in other loss mitigation activities with troubled borrowers, which include repayment plans and forbearance arrangements, both of which represent informal agreements with the borrower that do not result in the legal modification of the loan’s contractual terms. We account for these informal restructurings as a TDR if we defer more than three missed payments. We also classify as TDRs loans to certain borrowers who have received bankruptcy relief.
The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. During the years ended December 31, 2013 and 2012, the average term extension of a single-family modified loan was 154 and 131 months, respectively, and the average interest rate reduction was 1.68 and 2.15 percentage points, respectively.
The following table displays the number of loans and recorded investment in loans restructured in a TDR for the years ended December 31, 2013 and 2012.
 
For the Year Ended December 31,
 
2013
 
2012
 
Number of Loans
 
Recorded  Investment(1)
 
Number of Loans
 
Recorded  Investment(1)
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary (2)
 
126,998

 
 
 
$
19,016

 
 
 
270,913

 
 
 
$
39,527

 
Government (3)
 
312

 
 
 
35

 
 
 
394

 
 
 
50

 
Alt-A 
 
21,471

 
 
 
3,794

 
 
 
50,572

 
 
 
9,116

 
Other (4)
 
6,226

 
 
 
1,378

 
 
 
15,484

 
 
 
3,489

 
Total single-family 
 
155,007

 
 
 
24,223

 
 
 
337,363

 
 
 
52,182

 
Multifamily 
 
33

 
 
 
213

 
 
 
46

 
 
 
324

 
Total troubled debt restructurings 
 
155,040

 
 
 
$
24,436

 
 
 
337,409

 
 
 
$
52,506

 
__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Based on the nature of our modification programs, which do not include principal or past-due interest forgiveness, there is not a material difference between the recorded investment in our loans pre- and post- modification, therefore amounts represent recorded investment post-modification.
(2) 
Consists of mortgage loans that are not included in other loan classes.
(3) 
Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
(4) 
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A.
The following table displays the number of loans and recorded investment in loans that had a payment default for the years ended December 31, 2013 and 2012 and were restructured in a TDR in the twelve months prior to the payment default. For purposes of this disclosure, we define loans that had a payment default as: single-family and multifamily loans with completed TDRs that liquidated during the period, either through foreclosure, deed-in-lieu of foreclosure or a short sale; single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period.
 
For the Year Ended December 31,
 
2013
 
2012
 
Number of Loans
 
Recorded Investment(1)
 
Number of Loans
 
Recorded Investment(1)
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary (2)
 
45,539

 
 
 
$
6,978

 
 
 
46,824

 
 
 
$
7,828

 
Government (3)
 
130

 
 
 
17

 
 
 
200

 
 
 
33

 
Alt-A 
 
9,601

 
 
 
1,732

 
 
 
8,848

 
 
 
1,761

 
Other (4)
 
3,093

 
 
 
685

 
 
 
4,011

 
 
 
948

 
Total single-family 
 
58,363

 
 
 
9,412

 
 
 
59,883

 
 
 
10,570

 
Multifamily 
 
9

 
 
 
64

 
 
 
7

 
 
 
35

 
Total TDRs that subsequently defaulted 
 
58,372

 
 
 
$
9,476

 
 
 
59,890

 
 
 
$
10,605

 
__________
(1) 
Recorded investment consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, and accrued interest receivable. Represents our recorded investment in the loan at time of payment default.
(2) 
Consists of mortgage loans that are not included in other loan classes.
(3) 
Consists of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies that are not Alt-A.
(4) 
Includes loans with higher-risk characteristics, such as interest-only loans and negative-amortizing loans, that are neither government nor Alt-A.