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Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2015
Loans and Leases Receivable, Allowance [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
We maintain an allowance for loan losses for HFI loans held by Fannie Mae and loans backing Fannie Mae MBS issued from consolidated trusts. When calculating our allowance for loan losses, we consider our net recorded investment in the loan at the balance sheet date, which includes unpaid principal balance, net of amortized premiums and discounts, and other cost basis adjustments.
The following table displays changes in single-family, multifamily and total allowance for loan losses.
 
For the Year Ended December 31,
 
2015
 
2014
 
2013
 
Of Fannie Mae
 
Of Consolidated Trusts
 
Total
 
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 
$
32,956

 
 
$
2,221

 
 
$
35,177

 
$
40,202

 
 
$
3,105

 
 
$
43,307

 
$
49,848

 
 
$
7,839

 
 
$
57,687

Provision (benefit) for loan losses (1)
(258
)
 
 
190

 
 
(68
)
 
(4,334
)
 
 
553

 
 
(3,781
)
 
(6,751
)
 
 
(2,145
)
 
 
(8,896
)
Charge-offs(2)(3)
(9,647
)
 
 
(84
)
 
 
(9,731
)
 
(6,168
)
 
 
(225
)
 
 
(6,393
)
 
(8,458
)
 
 
(256
)
 
 
(8,714
)
Recoveries  
1,120

 
 
16

 
 
1,136

 
1,190

 
 
250

 
 
1,440

 
2,115

 
 
511

 
 
2,626

Transfers (4)
1,123

 
 
(1,123
)
 
 
—

 
1,513

 
 
(1,513
)
 
 
—

 
2,932

 
 
(2,932
)
 
 
—

Other (5)
1,145

 
 
50

 
 
1,195

 
553

 
 
51

 
 
604

 
516

 
 
88

 
 
604

Ending balance 
$
26,439

 
 
$
1,270

 
 
$
27,709

 
$
32,956

 
 
$
2,221

 
 
$
35,177

 
$
40,202

 
 
$
3,105

 
 
$
43,307

Multifamily allowance for loan losses: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance 
$
161

 
 
$
203

 
 
$
364

 
$
319

 
 
$
220

 
 
$
539

 
$
671

 
 
$
437

 
 
$
1,108

Benefit for loan losses (1)
(63
)
 
 
(27
)
 
 
(90
)
 
(91
)
 
 
(13
)
 
 
(104
)
 
(233
)
 
 
(187
)
 
 
(420
)
Charge-offs (2)(3)
(40
)
 
 
(3
)
 
 
(43
)
 
(76
)
 
 
—

 
 
(76
)
 
(153
)
 
 
—

 
 
(153
)
Recoveries
4

 
 
—

 
 
4

 
—

 
 
—

 
 
—

 
—

 
 
—

 
 
—

Transfers (4)
4

 
 
(4
)
 
 
—

 
4

 
 
(4
)
 
 
—

 
30

 
 
(30
)
 
 
—

Other (5)
5

 
 
2

 
 
7

 
5

 
 
—

 
 
5

 
4

 
 
—

 
 
4

Ending balance 
$
71

 
 
$
171

 
 
$
242

 
$
161

 
 
$
203

 
 
$
364

 
$
319

 
 
$
220

 
 
$
539

Total allowance for loan losses: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance 
$
33,117

 
 
$
2,424

 
 
$
35,541

 
$
40,521

 
 
$
3,325

 
 
$
43,846

 
$
50,519

 
 
$
8,276

 
 
$
58,795

Provision (benefit) for loan losses (1)
(321
)
 
 
163

 
 
(158
)
 
(4,425
)
 
 
540

 
 
(3,885
)
 
(6,984
)
 
 
(2,332
)
 
 
(9,316
)
Charge-offs(2)(3)
(9,687
)
 
 
(87
)
 
 
(9,774
)
 
(6,244
)
 
 
(225
)
 
 
(6,469
)
 
(8,611
)
 
 
(256
)
 
 
(8,867
)
Recoveries  
1,124

 
 
16

 
 
1,140

 
1,190

 
 
250

 
 
1,440

 
2,115

 
 
511

 
 
2,626

Transfers (4)
1,127

 
 
(1,127
)
 
 
—

 
1,517

 
 
(1,517
)
 
 
—

 
2,962

 
 
(2,962
)
 
 
—

Other (5)
1,150

 
 
52

 
 
1,202

 
558

 
 
51

 
 
609

 
520

 
 
88

 
 
608

Ending balance 
$
26,510

 
 
$
1,441

 
 
$
27,951

 
$
33,117

 
 
$
2,424

 
 
$
35,541

 
$
40,521

 
 
$
3,325

 
 
$
43,846


__________
(1) 
Provision (benefit) for loan losses is included in “Benefit for credit losses” in our consolidated statements of operations and comprehensive income.
(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. Charge-offs of consolidated trusts generally represent loans that remained in our consolidated trusts at the time of default.
(3) 
Includes, for the year ended December 31, 2015, charge-offs of (1) $1.8 billion in loans held for investment and $724 million in preforeclosure property taxes and insurance receivable in connection with our adoption of the Advisory Bulletin on January 1, 2015 and (2) $1.1 billion in accrued interest receivable in connection with our adoption of a change in accounting policy on January 1, 2015 related to the treatment of interest previously accrued, but not collected, at the date that loans are placed on nonaccrual status.
(4) 
Includes transfers from trusts for delinquent loan purchases.
(5) 
Amounts represent changes in other loss reserves which are reflected in provision (benefit) for loan losses, charge-offs, and recoveries.
The following table displays the allowance for loan losses and 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 December 31,
 
2015
 
2014
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Allowance for loan losses by segment: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
25,437

 
 
$
80

 
 
$
25,517

 
$
31,200

 
 
$
175

 
 
$
31,375

Collectively reserved loans 
2,272

 
 
162

 
 
2,434

 
3,977

 
 
189

 
 
4,166

Total allowance for loan losses 
$
27,709

 
 
$
242

 
 
$
27,951

 
$
35,177

 
 
$
364

 
 
$
35,541

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans by segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
171,161

 
 
$
1,008

 
 
$
172,169

 
$
186,377

 
 
$
1,809

 
 
$
188,186

Collectively reserved loans 
2,664,377

 
 
199,166

 
 
2,863,543

 
2,672,184

 
 
187,424

 
 
2,859,608

Total recorded investment in loans 
$
2,835,538

 
 
$
200,174

 
 
$
3,035,712

 
$
2,858,561

 
 
$
189,233

 
 
$
3,047,794

__________
(1) 
Includes acquired credit-impaired loans.