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Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2016
Receivables [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,
 
2016
 
2015
 
2014
 
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 
$
26,439

 
 
$
1,270

 
 
$
27,709

 
$
32,956

 
 
$
2,221

 
 
$
35,177

 
$
40,202

 
 
$
3,105

 
 
$
43,307

Provision (benefit) for loan losses(1)
(1,692
)
 
 
(12
)
 
 
(1,704
)
 
(258
)
 
 
190

 
 
(68
)
 
(4,334
)
 
 
553

 
 
(3,781
)
Charge-offs(2)(3)
(3,163
)
 
 
(91
)
 
 
(3,254
)
 
(9,647
)
 
 
(84
)
 
 
(9,731
)
 
(6,168
)
 
 
(225
)
 
 
(6,393
)
Recoveries  
412

 
 
30

 
 
442

 
1,120

 
 
16

 
 
1,136

 
1,190

 
 
250

 
 
1,440

Transfers(4)
470

 
 
(470
)
 
 
—

 
1,123

 
 
(1,123
)
 
 
—

 
1,513

 
 
(1,513
)
 
 
—

Other(5)
90

 
 
—

 
 
90

 
1,145

 
 
50

 
 
1,195

 
553

 
 
51

 
 
604

Ending balance 
$
22,556

 
 
$
727

 
 
$
23,283

 
$
26,439

 
 
$
1,270

 
 
$
27,709

 
$
32,956

 
 
$
2,221

 
 
$
35,177

Multifamily allowance for loan losses: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance 
$
71

 
 
$
171

 
 
$
242

 
$
161

 
 
$
203

 
 
$
364

 
$
319

 
 
$
220

 
 
$
539

Benefit for loan losses(1)
(49
)
 
 
(6
)
 
 
(55
)
 
(63
)
 
 
(27
)
 
 
(90
)
 
(91
)
 
 
(13
)
 
 
(104
)
Charge-offs(2)(3)
(11
)
 
 
(1
)
 
 
(12
)
 
(40
)
 
 
(3
)
 
 
(43
)
 
(76
)
 
 
—

 
 
(76
)
Recoveries
7

 
 
—

 
 
7

 
4

 
 
—

 
 
4

 
—

 
 
—

 
 
—

Transfers(4)
5

 
 
(5
)
 
 
—

 
4

 
 
(4
)
 
 
—

 
4

 
 
(4
)
 
 
—

Other(5)
—

 
 
—

 
 
—

 
5

 
 
2

 
 
7

 
5

 
 
—

 
 
5

Ending balance 
$
23

 
 
$
159

 
 
$
182

 
$
71

 
 
$
171

 
 
$
242

 
$
161

 
 
$
203

 
 
$
364

Total allowance for loan losses: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance 
$
26,510

 
 
$
1,441

 
 
$
27,951

 
$
33,117

 
 
$
2,424

 
 
$
35,541

 
$
40,521

 
 
$
3,325

 
 
$
43,846

Provision (benefit) for loan losses(1)
(1,741
)
 
 
(18
)
 
 
(1,759
)
 
(321
)
 
 
163

 
 
(158
)
 
(4,425
)
 
 
540

 
 
(3,885
)
Charge-offs(2)(3)
(3,174
)
 
 
(92
)
 
 
(3,266
)
 
(9,687
)
 
 
(87
)
 
 
(9,774
)
 
(6,244
)
 
 
(225
)
 
 
(6,469
)
Recoveries  
419

 
 
30

 
 
449

 
1,124

 
 
16

 
 
1,140

 
1,190

 
 
250

 
 
1,440

Transfers(4)
475

 
 
(475
)
 
 
—

 
1,127

 
 
(1,127
)
 
 
—

 
1,517

 
 
(1,517
)
 
 
—

Other(5)
90

 
 
—

 
 
90

 
1,150

 
 
52

 
 
1,202

 
558

 
 
51

 
 
609

Ending balance 
$
22,579

 
 
$
886

 
 
$
23,465

 
$
26,510

 
 
$
1,441

 
 
$
27,951

 
$
33,117

 
 
$
2,424

 
 
$
35,541


__________
(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,
 
2016
 
2015
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Allowance for loan losses by segment: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
21,920

 
 
$
33

 
 
$
21,953

 
$
25,437

 
 
$
80

 
 
$
25,517

Collectively reserved loans 
1,363

 
 
149

 
 
1,512

 
2,272

 
 
162

 
 
2,434

Total allowance for loan losses 
$
23,283

 
 
$
182

 
 
$
23,465

 
$
27,709

 
 
$
242

 
 
$
27,951

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans by segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
155,598

 
 
$
589

 
 
$
156,187

 
$
171,161

 
 
$
1,008

 
 
$
172,169

Collectively reserved loans 
2,708,337

 
 
231,292

 
 
2,939,629

 
2,664,377

 
 
199,166

 
 
2,863,543

Total recorded investment in loans 
$
2,863,935

 
 
$
231,881

 
 
$
3,095,816

 
$
2,835,538

 
 
$
200,174

 
 
$
3,035,712

__________
(1) 
Includes acquired credit-impaired loans.