Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Loans and Leases Receivable, Allowance [Abstract]

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

The following tables display changes in single-family, multifamily and total allowance for loan losses.



	For the Three Months Ended June 30,
	2016										2015
	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	$	24,490			$	1,107		$	25,597		$	29,759			$	1,755		$	31,514
Provision (benefit) for loan losses⁽¹⁾	(1,292		)		(40		)	(1,332		)	1,268				(227		)	1,041
Charge-offs⁽²⁾⁽³⁾	(789		)		(29		)	(818		)	(2,032		)		(23		)	(2,055		)
Recoveries	114				1			115			257				4			261
Transfers⁽⁴⁾	191				(191		)	—			256				(256		)	—
Other⁽⁵⁾	22				—			22			116				(1		)	115
Ending balance	$	22,736			$	848		$	23,584		$	29,624			$	1,252		$	30,876
Multifamily allowance for loan losses:
Beginning balance	$	67			$	155		$	222		$	114			$	192		$	306
Provision (benefit) for loan losses⁽¹⁾	(8		)		4			(4		)	6				(18		)	(12		)
Charge-offs⁽²⁾⁽³⁾	(3		)		—			(3		)	(19		)		—			(19		)
Transfers⁽⁴⁾	1				(1		)	—			—				—			—
Other⁽⁵⁾	—				—			—			(1		)		—			(1		)
Ending balance	$	57			$	158		$	215		$	100			$	174		$	274
Total allowance for loan losses:
Beginning balance	$	24,557			$	1,262		$	25,819		$	29,873			$	1,947		$	31,820
Provision (benefit) for loan losses⁽¹⁾	(1,300		)		(36		)	(1,336		)	1,274				(245		)	1,029
Charge-offs⁽²⁾⁽³⁾	(792		)		(29		)	(821		)	(2,051		)		(23		)	(2,074		)
Recoveries	114				1			115			257				4			261
Transfers⁽⁴⁾	192				(192		)	—			256				(256		)	—
Other⁽⁵⁾	22				—			22			115				(1		)	114
Ending balance	$	22,793			$	1,006		$	23,799		$	29,724			$	1,426		$	31,150



	For the Six Months Ended June 30,
	2016										2015
	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	$	26,439			$	1,270		$	27,709		$	32,956			$	2,221		$	35,177
Provision (benefit) for loan losses⁽¹⁾	(2,418		)		70			(2,348		)	1,473				(374		)	1,099
Charge-offs⁽²⁾⁽³⁾	(2,042		)		(55		)	(2,097		)	(7,360		)		(42		)	(7,402		)
Recoveries	231				3			234			871				12			883
Transfers⁽⁴⁾	440				(440		)	—			615				(615		)	—
Other⁽⁵⁾	86				—			86			1,069				50			1,119
Ending balance	$	22,736			$	848		$	23,584		$	29,624			$	1,252		$	30,876
Multifamily allowance for loan losses:
Beginning balance	$	71			$	171		$	242		$	161			$	203		$	364
Benefit for loan losses⁽¹⁾	(11		)		(9		)	(20		)	(31		)		(31		)	(62		)
Charge-offs⁽²⁾⁽³⁾	(8		)		—			(8		)	(34		)		—			(34		)
Recoveries	1				—			1			—				—			—
Transfers⁽⁴⁾	4				(4		)	—			—				—			—
Other⁽⁵⁾	—				—			—			4				2			6
Ending balance	$	57			$	158		$	215		$	100			$	174		$	274
Total allowance for loan losses:
Beginning balance	$	26,510			$	1,441		$	27,951		$	33,117			$	2,424		$	35,541
Provision (benefit) for loan losses⁽¹⁾	(2,429		)		61			(2,368		)	1,442				(405		)	1,037
Charge-offs⁽²⁾⁽³⁾	(2,050		)		(55		)	(2,105		)	(7,394		)		(42		)	(7,436		)
Recoveries	232				3			235			871				12			883
Transfers⁽⁴⁾	444				(444		)	—			615				(615		)	—
Other⁽⁵⁾	86				—			86			1,073				52			1,125
Ending balance	$	22,793			$	1,006		$	23,799		$	29,724			$	1,426		$	31,150

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⁽¹⁾	Provision (benefit) for loan losses is included in “Benefit (provision) for credit losses” in our condensed 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⁾	Our charge-offs for 2015 reflect initial charge-offs associated with our approach to adopting the charge-off provisions of Advisory Bulletin AB 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention,” as well as charge-offs relating to a change in accounting policy for nonaccrual loans.


⁽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.

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

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
	June 30, 2016							December 31, 2015
	Single-Family		Multifamily			Total		Single-Family		Multifamily			Total
	(Dollars in millions)
Allowance for loan losses by segment:
Individually impaired loans⁽¹⁾	$	22,075		$	59	$	22,134	$	25,437		$	80	$	25,517
Collectively reserved loans	1,509			156		1,665		2,272			162		2,434
Total allowance for loan losses	$	23,584		$	215	$	23,799	$	27,709		$	242	$	27,951

Recorded investment in loans by segment:
Individually impaired loans⁽¹⁾	$	164,090		$	841	$	164,931	$	171,161		$	1,008	$	172,169
Collectively reserved loans	2,666,912			211,918		2,878,830		2,664,377			199,166		2,863,543
Total recorded investment in loans	$	2,831,002		$	212,759	$	3,043,761	$	2,835,538		$	200,174	$	3,035,712

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⁽¹⁾	Includes acquired credit-impaired loans.