Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2020

Financing Receivable, Allowance for Credit Loss

The following table displays changes in our allowance for single-family loans, multifamily loans and total allowance for loan losses, including the transition impact of adopting the CECL standard.


	For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2020
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(11,598)	$	(8,759)
Transition impact of the adoption of the CECL standard	—		(1,229)
Benefit (provision) for loan losses	931		(857)
Write-offs	261		377
Recoveries	(4)		(10)
Other	23		91
Ending Balance	$	(10,387)	$	(10,387)
Multifamily allowance for loan losses:
Beginning balance	$	(1,368)	$	(257)
Transition impact of the adoption of the CECL standard	—		(493)
Provision for loan losses	(34)		(669)
Write-offs	86		104
Recoveries	—		(1)

Ending Balance	$	(1,316)	$	(1,316)
Total allowance for loan losses:
Beginning balance	$	(12,966)	$	(9,016)
Transition impact of the adoption of the CECL standard	—		(1,722)
Benefit (provision) for loan losses	897		(1,526)
Write-offs	347		481
Recoveries	(4)		(11)
Other	23		91
Ending Balance	$	(11,703)	$	(11,703)

The following tables display prior period changes in single-family and multifamily allowance for loan losses and the prior period amortized cost in our HFI loans by impairment or allowance methodology and portfolio segment prior to the adoption of the CECL standard. For a description of our previous allowance and impairment methodology refer to “Note 1, Summary of Significant Accounting Policies” in our 2019 Form 10-K.


	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(11,210)	$	(13,969)
Benefit for loan losses	1,826		3,712
Write-offs	270		1,209
Recoveries	(8)		(68)
Other	—		(6)
Ending Balance	$	(9,122)	$	(9,122)
Multifamily allowance for loan losses:
Beginning balance	$	(272)	$	(234)
Benefit (provision) for loan losses	17		(23)
Write-offs	2		6
Recoveries	(1)		(3)
Ending Balance	$	(254)	$	(254)
Total allowance for loan losses:
Beginning balance	$	(11,482)	$	(14,203)
Benefit for loan losses	1,843		3,689
Write-offs	272		1,215
Recoveries	(9)		(71)
Other	—		(6)
Ending Balance	$	(9,376)	$	(9,376)


	As of December 31, 2019
	Single-Family		Multifamily			Total
	(Dollars in millions)
Allowance for loan losses by segment:
Individually impaired loans	$	(8,175)		$	(45)	$	(8,220)
Collectively reserved loans	(584)			(212)		(796)
Total allowance for loan losses	$	(8,759)		$	(257)	$	(9,016)
Amortized cost in loans by segment:
Individually impaired loans	$	97,196		$	680	$	97,876
Collectively reserved loans	2,909,115			329,938		3,239,053
Total amortized cost in loans	$	3,006,311		$	330,618	$	3,336,929