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Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2017
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 the unpaid principal balance, net of amortized premiums and discounts, and other cost basis adjustments of HFI loans at the balance sheet date.
The following table displays changes in single-family, multifamily and total allowance for loan losses.
 
As of December 31,

 
2017
 
2016
 
2015
 
(Dollars in millions)
Single-family allowance for loan losses:
 
 
 
 
 
Beginning balance
$
(23,283
)
 
$
(27,709
)
 
$
(35,177
)
Benefit for loan losses(1)
1,994

 
1,704

 
68

Charge-offs(2)
2,795

 
3,254

 
9,731

Recoveries
(326
)
 
(442
)
 
(1,136
)
Other(3)
(29
)
 
(90
)
 
(1,195
)
Ending balance
$
(18,849
)
 
$
(23,283
)
 
$
(27,709
)
Multifamily allowance for loan losses:
 
 
 
 
 
Beginning balance
$
(182
)
 
$
(242
)
 
$
(364
)
Benefit (provision) for loan losses(1)
(53
)
 
55

 
90

Charge-offs(2)
3

 
12

 
43

Recoveries
(3
)
 
(7
)
 
(4
)
Other(3)
—

 
—

 
(7
)
Ending balance
$
(235
)
 
$
(182
)
 
$
(242
)
Total allowance for loan losses:
 
 
 
 
 
Beginning balance
$
(23,465
)
 
$
(27,951
)
 
$
(35,541
)
Benefit for loan losses(1)
1,941

 
1,759

 
158

Charge-offs(2)
2,798

 
3,266

 
9,774

Recoveries
(329
)
 
(449
)
 
(1,140
)
Other(3)
(29
)
 
(90
)
 
(1,202
)
Ending balance
$
(19,084
)
 
$
(23,465
)
 
$
(27,951
)

__________
(1) 
Benefit (provision) for loan losses is included in “Benefit for credit losses” in our consolidated statements of operations and comprehensive income.
(2) 
For the year ended December 31, 2015, includes 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.
(3) 
Amounts represent changes in other loss reserves which are reflected in benefit (provision) for loan losses, charge-offs, and recoveries.
As of December 31, 2017, we included an estimate of incurred credit losses from Hurricanes Harvey, Irma and Maria (collectively, the “hurricanes”) of approximately $900 million in the allowance for loan losses.
The following table displays the allowance for loan losses and recorded investment in our HFI loans by impairment or allowance methodology and portfolio segment, excluding loans for which we have elected the fair value option.
 
As of December 31,
 
2017
 
2016
 
Single-Family
 
Multifamily
 
Total
 
Single-Family
 
Multifamily
 
Total
 
(Dollars in millions)
Allowance for loan losses by segment: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
(17,247
)
 
 
$
(42
)
 
 
$
(17,289
)
 
$
(21,920
)
 
 
$
(33
)
 
 
$
(21,953
)
Collectively reserved loans 
(1,602
)
 
 
(193
)
 
 
(1,795
)
 
(1,363
)
 
 
(149
)
 
 
(1,512
)
Total allowance for loan losses 
$
(18,849
)
 
 
$
(235
)
 
 
$
(19,084
)
 
$
(23,283
)
 
 
$
(182
)
 
 
$
(23,465
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans by segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually impaired loans(1)
$
135,191

 
 
$
590

 
 
$
135,781

 
$
155,598

 
 
$
589

 
 
$
156,187

Collectively reserved loans 
2,787,783

 
 
266,411

 
 
3,054,194

 
2,708,337

 
 
231,292

 
 
2,939,629

Total recorded investment in loans 
$
2,922,974

 
 
$
267,001

 
 
$
3,189,975

 
$
2,863,935

 
 
$
231,881

 
 
$
3,095,816

__________
(1) 
Includes acquired credit-impaired loans.