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Mortgage Loans
6 Months Ended
Jun. 30, 2015
Mortgage Loans on Real Estate [Abstract]  
Mortgage Loans
 Mortgage Loans
We own 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 the carrying value of 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 the carrying value of HFS loans at the lower of cost or fair value and record valuation changes in our condensed consolidated statements of operations and comprehensive income. We report the recorded investment of HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and accrued interest receivable.
For purposes of the single-family mortgage loan disclosures below, we define “primary” class as mortgage loans that are not included in other loan classes; “government” class as 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; and “other” class as 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 carrying value of our mortgage loans.
 
As of
 
June 30, 2015
 
December 31, 2014
 
Of Fannie Mae
 
Of Consolidated Trusts
 
Total
 
Of Fannie Mae
 
Of Consolidated Trusts
 
Total
 
(Dollars in millions)
Single-family
 
$
250,100

 
 
 
$
2,559,480

 
 
 
$
2,809,580

 
 
 
$
262,116

 
 
 
$
2,569,884

 
 
 
$
2,832,000

 
Multifamily
 
18,394

 
 
 
179,258

 
 
 
197,652

 
 
 
23,255

 
 
 
164,045

 
 
 
187,300

 
Total unpaid principal balance of mortgage loans
 
268,494

 
 
 
2,738,738

 
 
 
3,007,232

 
 
 
285,371

 
 
 
2,733,929

 
 
 
3,019,300

 
Cost basis and fair value adjustments, net
 
(13,101
)
 
 
 
49,197

 
 
 
36,096

 
 
 
(12,705
)
 
 
 
48,440

 
 
 
35,735

 
Allowance for loan losses for loans held for investment
 
(29,724
)
 
 
 
(1,426
)
 
 
 
(31,150
)
 
 
 
(33,117
)
 
 
 
(2,424
)
 
 
 
(35,541
)
 
Total mortgage loans
 
$
225,669

 
 
 
$
2,786,509

 
 
 
$
3,012,178

 
 
 
$
239,549

 
 
 
$
2,779,945

 
 
 
$
3,019,494

 

During the three months ended June 30, 2015 and 2014, we redesignated loans with a carrying value of $4.3 billion and $19 million, respectively, from HFI to HFS. During the six months ended June 30, 2015 and 2014, we redesignated loans with a carrying value of $4.6 billion and $2.2 billion, respectively, from HFI to HFS. We sold loans with an unpaid principal balance of $633 million during the three and six months ended June 30, 2015. We sold loans with an unpaid principal balance of $862 million and $1.9 billion during the three and six months ended June 30, 2014, respectively.
The recorded investment of single-family mortgage loans for which formal foreclosure proceedings are in process was $28.8 billion as of June 30, 2015. As a result of our various loss mitigation and foreclosure prevention efforts, we expect that a portion of the loans in the process of formal foreclosure proceedings will not ultimately foreclose.
Nonaccrual Policy
We discontinue accruing interest on loans when we believe collectability of principal or interest is not reasonably assured, which for a single-family loan we have determined, based on our historical experience, to be when the loan becomes two months or more past due according to its contractual terms. We generally place a multifamily loan on nonaccrual status when the loan is deemed to be individually impaired, unless the loan is well secured such that collectability of principal and accrued interest is reasonably assured.
Effective January 1, 2015, we changed our policy for the treatment of interest previously accrued but not collected at the date both single-family and multifamily loans are placed on nonaccrual status. Specifically, interest previously accrued but not collected will be reversed through interest income at the date a loan is placed on nonaccrual status. Previously, when a loan was placed on nonaccrual status, interest previously accrued but not collected became part of the loan’s recorded investment and was reviewed either individually or collectively for impairment. 
We also changed our policy for when a non-modified single-family loan is returned to accrual status. Effective January 1, 2015, a non-modified single-family loan will be returned to accrual status at the point that the borrower brings the loan current. Previously, a non-modified single-family loan was returned to accrual status at the point that the borrower had made sufficient payments to reduce their delinquency status below our nonaccrual threshold of 60 days past due. We did not change our policy for returning modified single-family loans to accrual status. We return modified single-family loans to accrual status at the point that the borrower successfully makes all required payments during the trial period (generally three to four months) and modification is made permanent. See “Note 1, Summary of Significant Accounting Policies” for additional information on such changes in accounting policy.
Changes to our nonaccrual policy were limited to those described above. For most single-family loans, we continue to recognize interest income for loans on nonaccrual status when cash is received. However, if a single-family loan was charged off prior to foreclosure, all payments received are applied on a cost recovery basis to reduce principal on the mortgage loan. We stop applying the cost recovery approach on those single-family loans when they are brought current either through borrower payments or modification and there has been a sufficient performance period to demonstrate that the borrower has the ability and intent to make the remaining payments on their mortgage loans.
For multifamily loans, we apply any payment received on a cost recovery basis to reduce principal on the mortgage loan unless the loan is determined to be well secured. We generally return a multifamily loan to accrual status and stop applying the cost recovery approach when the borrower cures the delinquency of the loan or we otherwise determine that the loan is well secured such that collectability is reasonably assured.
Aging Analysis
The following tables display an aging analysis of the total recorded investment in our HFI mortgage loans by portfolio segment and class, excluding loans for which we have elected the fair value option.
  
As of June 30, 2015
 
30 - 59 Days
Delinquent
 
60 - 89 Days Delinquent
 
Seriously Delinquent(1)
 
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
 
$
27,698

 
 
 
$
7,352

 
 
 
$
29,566

 
 
 
$
64,616

 
 
$
2,581,112

 
$
2,645,728

 
 
$
56

 
 
$
36,842

Government(2)
 
54

 
 
 
26

 
 
 
287

 
 
 
367

 
 
43,192

 
43,559

 
 
287

 
 

Alt-A
 
4,003

 
 
 
1,284

 
 
 
7,918

 
 
 
13,205

 
 
90,821

 
104,026

 
 
7

 
 
9,195

Other
 
1,495

 
 
 
486

 
 
 
2,603

 
 
 
4,584

 
 
35,503

 
40,087

 
 
5

 
 
3,075

Total single-family
 
33,250

 
 
 
9,148

 
 
 
40,374

 
 
 
82,772

 
 
2,750,628

 
2,833,400

 
 
355

 
 
49,112

Multifamily(3)
 
57

 
 
 
N/A

 
 
 
90

 
 
 
147

 
 
198,102

 
198,249

 
 

 
 
809

Total
 
$
33,307

 
 
 
$
9,148

 
 
 
$
40,464

 
 
 
$
82,919

 
 
$
2,948,730

 
$
3,031,649

 
 
$
355

 
 
$
49,921

  
As of December 31, 2014
 
30 - 59 Days
Delinquent
 
60 - 89 Days Delinquent
 
Seriously Delinquent(1)
 
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
 
$
29,130

 
 
 
$
8,396

 
 
 
$
38,248

 
 
 
$
75,774

 
 
$
2,580,446

 
$
2,656,220

 
 
$
55

 
 
$
46,556

Government(2)
 
63

 
 
 
26

 
 
 
305

 
 
 
394

 
 
44,927

 
45,321

 
 
305

 
 

Alt-A
 
4,094

 
 
 
1,414

 
 
 
11,603

 
 
 
17,111

 
 
95,650

 
112,761

 
 
8

 
 
13,007

Other
 
1,520

 
 
 
516

 
 
 
3,763

 
 
 
5,799

 
 
38,460

 
44,259

 
 
6

 
 
4,259

Total single-family
 
34,807

 
 
 
10,352

 
 
 
53,919

 
 
 
99,078

 
 
2,759,483

 
2,858,561

 
 
374

 
 
63,822

Multifamily(3)
 
60

 
 
 
 N/A

 
 
 
89

 
 
 
149

 
 
189,084

 
189,233

 
 

 
 
823

Total
 
$
34,867

 
 
 
$
10,352

 
 
 
$
54,008

 
 
 
$
99,227

 
 
$
2,948,567

 
$
3,047,794

 
 
$
374

 
 
$
64,645

__________
(1) 
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.
(2) 
Primarily consists of reverse mortgages which, due to their nature, are not aged and are included in the current column.
(3) 
Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.
Credit Quality Indicators
The following table displays the total recorded investment in our single-family HFI loans by class and credit quality indicator, excluding loans for which we have elected the fair value option.
  
As of
  
June 30, 2015(1)
 
December 31, 2014(1)
  
Primary
 
Alt-A
 
Other
 
Primary
 
Alt-A
 
Other
  
(Dollars in millions) 
Estimated mark-to-market loan-to-value ratio:(2)
  
 
 
 
 
  
 
 
  
 
 
 
 
  
 
Less than or equal to 80% 
$
2,199,656

 
$
60,418

 
 
$
22,119

 
 
$
2,156,165

 
$
60,851

 
 
$
22,558

 
Greater than 80%  and less than or equal to 90%
249,031

 
13,849

 
 
5,459

 
 
261,709

 
15,151

 
 
6,046

 
Greater than 90%  and less than or equal to 100%
120,779

 
10,811

 
 
4,424

 
 
140,778

 
12,490

 
 
5,236

 
Greater than 100% and less than or equal to 110%
34,295

 
7,353

 
 
3,193

 
 
43,014

 
8,998

 
 
3,900

 
Greater than 110%  and less than or equal to 120%
18,373

 
4,794

 
 
2,039

 
 
23,439

 
6,033

 
 
2,615

 
Greater than 120%  and less than or equal to 125%
5,811

 
1,564

 
 
671

 
 
7,529

 
2,114

 
 
904

 
Greater than 125% 
17,783

 
5,237

 
 
2,182

 
 
23,586

 
7,124

 
 
3,000

 
Total 
$
2,645,728

 
$
104,026

 
 
$
40,087

 
 
$
2,656,220

 
$
112,761

 
 
$
44,259

 
__________
(1) 
Excludes $43.6 billion and $45.3 billion as of June 30, 2015 and December 31, 2014, 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 loan-to-value (“LTV”) ratio.
(2) 
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.
The following table displays the total recorded investment in our multifamily HFI loans by credit quality indicator, excluding loans for which we have elected the fair value option.
  
As of
  
June 30,
 
December 31,
 
2015
 
2014
  
(Dollars in millions) 
Credit risk profile by internally assigned grade:(1)
 
  
 
 
 
 
 
Pass
 
$
192,044

 
 
 
$
182,079

 
Special Mention
 
2,769

 
 
 
3,070

 
Substandard
 
3,414

 
 
 
3,842

 
Doubtful
 
22

 
 
 
242

 
Total
 
$
198,249

 
 
 
$
189,233

 
_________
(1) 
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).
Individually Impaired Loans
Individually impaired loans include troubled debt restructurings (“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, related allowance, average recorded investment and interest income recognized for individually impaired loans.
 
As of
 
 
June 30, 2015
 
December 31, 2014
 
 
Unpaid Principal Balance
 
Total Recorded Investment
 
Related Allowance for Loan Losses
 
Unpaid Principal Balance
 
Total Recorded Investment
 
Related Allowance for Loan Losses
 
Related Allowance for Accrued Interest Receivable
 
(Dollars in millions)
 
Individually impaired loans:
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
Single-family:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
Primary
 
$
120,954

 
 
 
$
114,898

 
 
 
$
18,825

 
 
$
125,960

 
 
 
$
120,221

 
 
 
$
20,327

 
 
 
$
309

 
Government
 
287

 
 
 
291

 
 
 
60

 
 
281

 
 
 
285

 
 
 
46

 
 
 
12

 
Alt-A
 
33,132

 
 
 
30,321

 
 
 
6,976

 
 
35,492

 
 
 
32,816

 
 
 
7,778

 
 
 
136

 
Other
 
13,548

 
 
 
12,810

 
 
 
2,759

 
 
14,667

 
 
 
13,947

 
 
 
3,049

 
 
 
38

 
Total single-family
 
167,921

 
 
 
158,320

 
 
 
28,620

 
 
176,400

 
 
 
167,269

 
 
 
31,200

 
 
 
495

 
Multifamily
 
959

 
 
 
963

 
 
 
125

 
 
1,230

 
 
 
1,241

 
 
 
175

 
 
 
6

 
Total individually impaired loans with related allowance recorded
 
168,880

 
 
 
159,283

 
 
 
28,745

 
 
177,630

 
 
 
168,510

 
 
 
31,375

 
 
 
501

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
With no related allowance recorded:(1)
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Single-family:
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Primary
 
16,789

 
 
 
15,274

 
 
 

 
 
16,704

 
 
 
14,876

 
 
 

 
 
 

 
Government
 
55

 
 
 
50

 
 
 

 
 
61

 
 
 
57

 
 
 

 
 
 

 
Alt-A
 
4,332

 
 
 
3,609

 
 
 

 
 
3,993

 
 
 
3,119

 
 
 

 
 
 

 
Other
 
1,404

 
 
 
1,251

 
 
 

 
 
1,240

 
 
 
1,056

 
 
 

 
 
 

 
Total single-family
 
22,580

 
 
 
20,184

 
 
 

 
 
21,998

 
 
 
19,108

 
 
 

 
 
 

 
Multifamily
 
404

 
 
 
406

 
 
 

 
 
565

 
 
 
568

 
 
 

 
 
 

 
Total individually impaired loans with no related allowance recorded
 
22,984

 
 
 
20,590

 
 
 

 
 
22,563

 
 
 
19,676

 
 
 

 
 
 

 
Total individually impaired loans(2)
 
$
191,864

 
 
 
$
179,873

 
 
 
$
28,745

 
 
$
200,193

 
 
 
$
188,186

 
 
 
$
31,375

 
 
 
$
501

 



 
For the Three Months Ended June 30,
 
2015
 
2014
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
(Dollars in millions)
Individually impaired loans:
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Single-family:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Primary
 
$
115,856

 
 
 
$
1,028

 
 
 
$
73

 
 
 
$
122,791

 
 
 
$
1,093

 
 
 
$
121

 
Government
 
288

 
 
 
3

 
 
 

 
 
 
281

 
 
 
3

 
 
 

 
Alt-A
 
30,642

 
 
 
251

 
 
 
10

 
 
 
34,029

 
 
 
267

 
 
 
22

 
Other
 
12,994

 
 
 
93

 
 
 
2

 
 
 
14,669

 
 
 
102

 
 
 
9

 
Total single-family
 
159,780

 
 
 
1,375

 
 
 
85

 
 
 
171,770

 
 
 
1,465

 
 
 
152

 
Multifamily
 
1,090

 
 
 
3

 
 
 

 
 
 
1,813

 
 
 
23

 
 
 

 
Total individually impaired loans with related allowance recorded
 
160,870

 
 
 
1,378

 
 
 
85

 
 
 
173,583

 
 
 
1,488

 
 
 
152

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
16,453

 
 
 
253

 
 
 
19

 
 
 
13,413

 
 
 
205

 
 
 
53

 
Government
 
54

 
 
 
1

 
 
 

 
 
 
56

 
 
 
2

 
 
 

 
Alt-A
 
4,010

 
 
 
50

 
 
 

 
 
 
2,636

 
 
 
43

 
 
 
10

 
Other
 
1,378

 
 
 
17

 
 
 

 
 
 
927

 
 
 
13

 
 
 
3

 
Total single-family
 
21,895

 
 
 
321

 
 
 
19

 
 
 
17,032

 
 
 
263

 
 
 
66

 
Multifamily
 
460

 
 
 
2

 
 
 

 
 
 
1,668

 
 
 
20

 
 
 

 
   Total individually impaired loans with no related allowance recorded
 
22,355

 
 
 
323

 
 
 
19

 
 
 
18,700

 
 
 
283

 
 
 
66

 
Total individually impaired loans(2)
 
$
183,225

 
 
 
$
1,701

 
 
 
$
104

 
 
 
$
192,283

 
 
 
$
1,771

 
 
 
$
218

 

 
For the Six Months Ended June 30,
 
2015
 
2014
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
Average Recorded Investment
 
Total Interest Income Recognized(3)
 
Interest Income Recognized on a Cash Basis
 
(Dollars in millions)
Individually impaired loans:
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Single-family:
 
 
 
 
 
  

 
 
 
 
 
 
 
 
 
 
 
  

 
 
 
 
 
Primary
 
$
116,811

 
 
 
$
2,062

 
 
 
$
177

 
 
 
$
123,066

 
 
 
$
2,187

 
 
 
$
261

 
Government
 
285

 
 
 
6

 
 
 

 
 
 
257

 
 
 
6

 
 
 

 
Alt-A
 
31,094

 
 
 
502

 
 
 
27

 
 
 
34,178

 
 
 
537

 
 
 
50

 
Other
 
13,216

 
 
 
187

 
 
 
9

 
 
 
14,787

 
 
 
205

 
 
 
20

 
Total single-family
 
161,406

 
 
 
2,757

 
 
 
213

 
 
 
172,288

 
 
 
2,935

 
 
 
331

 
Multifamily
 
1,140

 
 
 
6

 
 
 

 
 
 
1,967

 
 
 
46

 
 
 

 
Total individually impaired loans with related allowance recorded
 
162,546

 
 
 
2,763

 
 
 
213

 
 
 
174,255

 
 
 
2,981

 
 
 
331

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
With no related allowance recorded:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Primary
 
16,178

 
 
 
500

 
 
 
60

 
 
 
13,055

 
 
 
390

 
 
 
101

 
Government
 
56

 
 
 
2

 
 
 

 
 
 
76

 
 
 
3

 
 
 

 
Alt-A
 
3,775

 
 
 
94

 
 
 
7

 
 
 
2,576

 
 
 
84

 
 
 
20

 
Other
 
1,311

 
 
 
35

 
 
 
2

 
 
 
910

 
 
 
24

 
 
 
5

 
Total single-family
 
21,320

 
 
 
631

 
 
 
69

 
 
 
16,617

 
 
 
501

 
 
 
126

 
Multifamily
 
496

 
 
 
3

 
 
 

 
 
 
1,758

 
 
 
40

 
 
 

 
Total individually impaired loans with no related allowance recorded
 
21,816

 
 
 
634

 
 
 
69

 
 
 
18,375

 
 
 
541

 
 
 
126

 
Total individually impaired loans(2)
 
$
184,362

 
 
 
$
3,397

 
 
 
$
282

 
 
 
$
192,630

 
 
 
$
3,522

 
 
 
$
457

 
__________
(1) 
The discounted cash flows or collateral value equals or exceeds the carrying value of the loan and, as such, no valuation allowance is required.
(2) 
Includes single-family loans restructured in a TDR with a recorded investment of $177.5 billion and $185.2 billion as of June 30, 2015 and December 31, 2014, respectively. Includes multifamily loans restructured in a TDR with a recorded investment of $525 million and $716 million as of June 30, 2015 and December 31, 2014, respectively.
(3) 
Total single-family interest income recognized of $1.7 billion for the three months ended June 30, 2015 and 2014 consists of $1.4 billion of contractual interest for both periods and $304 million and $285 million of effective yield adjustments, respectively. Total single-family interest income recognized of $3.4 billion for the six months ended June 30, 2015 and 2014 consists of $2.8 billion and $2.9 billion of contractual interest, respectively, and $580 million and $560 million of effective yield adjustments, respectively.
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 loans to certain borrowers who have received bankruptcy relief as TDRs.
The substantial majority of the loan modifications we complete result in term extensions, interest rate reductions or a combination of both. During the three months ended June 30, 2015 and 2014, the average term extension of a single-family modified loan was 162 months for both periods and the average interest rate reduction was 0.77 and 0.99 percentage points, respectively. During the six months ended June 30, 2015 and 2014, the average extension of a single-family modified loan was 162 months and 161 months, respectively, and the average interest rate reduction was 0.77 and 1.12 percentage points, respectively.
The following tables display the number of loans and recorded investment in loans restructured in a TDR.
 
For the Three Months Ended June 30,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
17,951

 
 
 
$
2,477

 
 
 
24,932

 
 
 
$
3,564

 
Government
 
64

 
 
 
8

 
 
 
111

 
 
 
13

 
 Alt-A
 
2,533

 
 
 
395

 
 
 
3,660

 
 
 
614

 
Other
 
539

 
 
 
100

 
 
 
872

 
 
 
179

 
Total single-family
 
21,087

 
 
 
2,980

 
 
 
29,575

 
 
 
4,370

 
Multifamily
 
1

 
 
 
1

 
 
 
3

 
 
 
4

 
Total troubled debt restructurings
 
21,088

 
 
 
$
2,981

 
 
 
29,578

 
 
 
$
4,374

 

 
For the Six Months Ended June 30,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
39,358

 
 
 
$
5,422

 
 
 
53,774

 
 
 
$
7,674

 
Government
 
138

 
 
 
16

 
 
 
173

 
 
 
21

 
 Alt-A
 
5,322

 
 
 
833

 
 
 
8,056

 
 
 
1,354

 
Other
 
1,129

 
 
 
208

 
 
 
1,910

 
 
 
398

 
Total single-family
 
45,947

 
 
 
6,479

 
 
 
63,913

 
 
 
9,447

 
Multifamily
 
4

 
 
 
6

 
 
 
9

 
 
 
38

 
Total troubled debt restructurings
 
45,951

 
 
 
$
6,485

 
 
 
63,922

 
 
 
$
9,485

 
The following tables display the number of loans and our recorded investment in these loans at the time of payment default for loans that 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 Three Months Ended June 30,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
6,156

 
 
 
$
864

 
 
 
8,190

 
 
 
$
1,251

 
Government
 
37

 
 
 
6

 
 
 
18

 
 
 
1

 
Alt-A
 
963

 
 
 
151

 
 
 
1,396

 
 
 
252

 
Other
 
290

 
 
 
55

 
 
 
420

 
 
 
89

 
Total single-family
 
7,446

 
 
 
1,076

 
 
 
10,024

 
 
 
1,593

 
Multifamily
 
1

 
 
 
2

 
 
 
1

 
 
 
3

 
Total TDRs that subsequently defaulted
 
7,447

 
 
 
$
1,078

 
 
 
10,025

 
 
 
$
1,596

 

 
For the Six Months Ended June 30,
 
2015
 
2014
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(Dollars in millions)
Single-family:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
 
12,879

 
 
 
$
1,867

 
 
 
16,788

 
 
 
$
2,561

 
Government
 
57

 
 
 
9

 
 
 
36

 
 
 
3

 
Alt-A
 
2,116

 
 
 
354

 
 
 
2,840

 
 
 
512

 
Other
 
594

 
 
 
121

 
 
 
924

 
 
 
204

 
Total single-family
 
15,646

 
 
 
2,351

 
 
 
20,588

 
 
 
3,280

 
Multifamily
 
3

 
 
 
6

 
 
 
5

 
 
 
17

 
Total TDRs that subsequently defaulted
 
15,649

 
 
 
$
2,357

 
 
 
20,593

 
 
 
$
3,297