Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2021

Allowance for Loan Losses Roll Forward by Segment

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, on January 1, 2020. See “Note 1, Summary of Significant Accounting Policies” for additional information and accounting policies on loans held for sale and changes 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 consolidated statements of operations and comprehensive income.


	For the Year Ended December 31,
	2021		2020
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance	$	(9,344)	$	(8,759)
Transition impact of the adoption of the CECL standard	—		(1,229)
Benefit (provision) for loan losses	4,503		127
Write-offs	417		457
Recoveries	(419)		(93)
Other	(107)		153
Ending Balance	$	(4,950)	$	(9,344)
Multifamily allowance for loan losses:
Beginning balance	$	(1,208)	(257)
Transition impact of the adoption of the CECL standard	—		(493)
Benefit (provision) for loan losses	519		(593)
Write-offs	59		136
Recoveries	(49)		(1)
Ending Balance	$	(679)	$	(1,208)
Total allowance for loan losses:
Beginning balance	$	(10,552)	$	(9,016)
Transition impact of the adoption of the CECL standard	—		(1,722)
Benefit (provision) for loan losses	5,022		(466)
Write-offs	476		593
Recoveries	(468)		(94)
Other	(107)		153
Ending Balance	$	(5,629)	$	(10,552)

The following table displays changes in single-family and multifamily allowance for loan losses for the year ended 2019 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.”


		For the Year Ended December 31,
		2019
	(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance		$	(13,969)
Benefit for loan losses		3,988
Write-offs		1,299
Recoveries		(71)
Other		(6)
Ending Balance		$	(8,759)
Multifamily allowance for loan losses:
Beginning balance		$	(234)
Provision for loan losses		(27)
Write-offs		8
Recoveries		(4)
Ending Balance		$	(257)
Total allowance for loan losses:
Beginning balance		$	(14,203)
Benefit for loan losses		3,961
Write-offs		1,307
Recoveries		(75)
Other		(6)
Ending Balance		$	(9,016)