Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

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 Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which was later amended by ASU 2019-04, ASU 2019-05 and ASU 2019-1 (collectively, the “CECL standard”), on January 1, 2020. See “Note 1, Summary of Significant Accounting Policies” in our 2020 Form 10-K for additional information on changes to our allowance for loan losses resulting from our adoption of the CECL standard.

The benefit or provision for loan losses excludes provision for accrued interest receivable losses, guaranty loss reserves and credit losses on available-for-sale (“AFS”) debt securities. Cumulatively, these amounts are recognized as “Benefit (provision) for credit losses” in our condensed consolidated statements of operations and comprehensive income.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(6,064)	$	(11,598)	$	(9,344)	$	(8,759)
Transition impact of the adoption of the CECL standard	—		—		—		(1,229)
Benefit (provision) for loan losses	839		931		4,003		(857)
Write-offs	51		261		271		377
Recoveries	(133)		(4)		(212)		(10)
Other	(8)		23		(33)		91
Ending Balance	$	(5,315)	$	(10,387)	$	(5,315)	$	(10,387)
Multifamily allowance for loan losses:
Beginning balance	$	(1,050)	$	(1,368)	$	(1,208)	$	(257)
Transition impact of the adoption of the CECL standard	—		—		—		(493)
Benefit (provision) for loan losses	45		(34)		175		(669)
Write-offs	7		86		54		104
Recoveries	(21)		—		(40)		(1)

Ending Balance	$	(1,019)	$	(1,316)	$	(1,019)	$	(1,316)
Total allowance for loan losses:
Beginning balance	$	(7,114)	$	(12,966)	$	(10,552)	$	(9,016)
Transition impact of the adoption of the CECL standard	—		—		—		(1,722)
Benefit (provision) for loan losses	884		897		4,178		(1,526)
Write-offs	58		347		325		481
Recoveries	(154)		(4)		(252)		(11)
Other	(8)		23		(33)		91
Ending Balance	$	(6,334)	$	(11,703)	$	(6,334)	$	(11,703)