Mortgage Loans

9 Months Ended

Sep. 30, 2022

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Mortgage Loans

Mortgage Loans

We own single-family mortgage loans, which are secured by four or fewer residential dwelling units, and multifamily mortgage loans, which are secured by five or more residential dwelling units. We classify these loans as either held for investment (“HFI”) or held for sale (“HFS”). For purposes of our notes to the condensed consolidated financial statements, we report the amortized cost of HFI loans for which we have not elected the fair value option at the unpaid principal balance, net of unamortized premiums and discounts, hedge-related basis adjustments, other cost basis adjustments, and accrued interest receivable in these “Note 3, Mortgage Loans” disclosures. For purposes of our condensed consolidated balance sheets, we present accrued interest receivable, net separately from the amortized cost of our loans held for investment. We report the carrying value of HFS loans at the lower of cost or fair value and record valuation changes in “Investment gains (losses), net” in our condensed consolidated statements of operations and comprehensive income.

For purposes of the single-family mortgage loan disclosures below, we display loans by class of financing receivable type. Financing receivable classes used for disclosure consist of: “20- and 30-year or more, amortizing fixed-rate,” “15-year or less, amortizing fixed-rate,” “Adjustable-rate,” and “Other.” The “Other” class primarily consists of reverse mortgage loans, interest-only loans, negative-amortizing loans and second liens.

The following table displays the carrying value of our mortgage loans and allowance for loan losses.

	As of
	September 30, 2022		December 31, 2021
	(Dollars in millions)
Single-family	$	3,638,342	$	3,495,573
Multifamily	420,312		403,452
Total unpaid principal balance of mortgage loans	4,058,654		3,899,025
Cost basis and fair value adjustments, net	54,376		74,846
Allowance for loan losses for HFI loans	(8,302)		(5,629)
Total mortgage loans(1)	$	4,104,728	$	3,968,242

(1)Excludes $9.2 billion and $9.1 billion of accrued interest receivable, net of allowance as of September 30, 2022 and December 31, 2021.

The following table displays information about our purchase of HFI loans, redesignation of loans from HFI to HFS and the sales of mortgage loans during the period.

		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2022		2021		2022		2021
	(Dollars in millions)
Purchase of HFI loans:
Single-family unpaid principal balance		$	117,686	$	296,410	$	529,453	$	1,070,136
Multifamily unpaid principal balance		15,943		16,282		50,627		48,580
Single-family loans redesignated from HFI to HFS:
Amortized cost		$	1,726	$	3,427	$	6,099	$	12,844
Lower of cost or fair value adjustment at time of redesignation(1)		(196)		(47)		(418)		(247)
Allowance reversed at time of redesignation		80		165		298		1,350
Single-family loans sold:
Unpaid principal balance		$	1,919	$	3,063	$	6,229	$	10,588
Realized gains, net		20		300		91		955

(1)Consists of the write-off against the allowance at the time of redesignation.

The amortized cost of single-family mortgage loans for which formal foreclosure proceedings were in process was $4.6 billion as of September 30, 2022 and $4.4 billion as of December 31, 2021. As a result of our various loss mitigation and foreclosure prevention efforts, we expect that a portion of the loans in the process of formal foreclosure proceedings will not ultimately foreclose.

Aging Analysis

The following tables display an aging analysis of the total amortized cost of our HFI mortgage loans by portfolio segment and class of financing receivable, excluding loans for which we have elected the fair value option.

	As of September 30, 2022
	30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	22,792	$	5,603	$	19,511	$	47,906	$	3,079,227	$	3,127,133	$	12,525	$	3,563
15-year or less, amortizing fixed-rate	1,530		264		808		2,602		504,620		507,222		654		95
Adjustable-rate	147		29		135		311		26,161		26,472		99		28
Other(2)	604		165		876		1,645		30,412		32,057		444		282
Total single-family	25,073		6,061		21,330		52,464		3,640,420		3,692,884		13,722		3,968
Multifamily(3)	282		N/A		1,046		1,328		420,253		421,581		6		14
Total	$	25,355	$	6,061	$	22,376	$	53,792	$	4,060,673	$	4,114,465	$	13,728	$	3,982

	As of December 31, 2021
	30 - 59 Days Delinquent		60 - 89 Days Delinquent		Seriously Delinquent(1)		Total Delinquent		Current		Total		Loans 90 Days or More Delinquent and Accruing Interest		Nonaccrual Loans with No Allowance
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	22,862	$	5,192	$	38,288	$	66,342	$	2,902,763	$	2,969,105	$	24,236	$	6,271
15-year or less, amortizing fixed-rate	2,024		326		1,799		4,149		529,278		533,427		1,454		193
Adjustable-rate	161		36		374		571		25,771		26,342		287		63
Other(2)	786		204		1,942		2,932		35,013		37,945		1,008		545
Total single-family	25,833		5,758		42,403		73,994		3,492,825		3,566,819		26,985		7,072
Multifamily(3)	114		N/A		1,693		1,807		404,398		406,205		317		107
Total	$	25,947	$	5,758	$	44,096	$	75,801	$	3,897,223	$	3,973,024	$	27,302	$	7,179

(1)Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

(2)Reverse mortgage loans included in “Other” are not aged due to their nature and are included in the current column.

(3)Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.

Credit Quality Indicators

The following tables display the total amortized cost of our single-family HFI loans by class of financing receivable, year of origination and credit quality indicator, excluding loans for which we have elected the fair value option. The estimated mark-to-market loan-to-value (“LTV”) ratio is a primary factor we consider when estimating our allowance for loan losses for single-family loans. As LTV ratios increase, the borrower's equity in the home decreases, which may negatively affect the borrower's ability to refinance or to sell the property for an amount at or above the outstanding balance of the loan.

	As of September 30, 2022, by Year of Origination(1)
	2022		2021		2020		2019		2018		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	253,757	$	926,196	$	836,382	$	152,731	$	72,366	$	669,943	$	2,911,375
Greater than 80% and less than or equal to 90%	68,200		75,617		4,698		991		583		1,100		151,189
Greater than 90% and less than or equal to 100%	56,826		5,369		1,351		280		79		227		64,132
Greater than 100%	41		94		28		13		13		248		437
Total 20- and 30-year or more, amortizing fixed-rate	378,824		1,007,276		842,459		154,015		73,041		671,518		3,127,133
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	36,062		190,699		138,640		21,091		7,698		111,042		505,232
Greater than 80% and less than or equal to 90%	1,054		436		34		3		1		2		1,530
Greater than 90% and less than or equal to 100%	440		14		1		—		—		2		457
Greater than 100%	—		—		—		—		—		3		3
Total 15-year or less, amortizing fixed-rate	37,556		191,149		138,675		21,094		7,699		111,049		507,222
Adjustable-rate:
Less than or equal to 80%	3,151		6,565		1,925		848		944		11,830		25,263
Greater than 80% and less than or equal to 90%	644		196		9		2		1		2		854
Greater than 90% and less than or equal to 100%	338		15		1		—		1		—		355
Greater than 100%	—		—		—		—		—		—		—
Total adjustable-rate	4,133		6,776		1,935		850		946		11,832		26,472
Other:
Less than or equal to 80%	—		—		—		30		229		23,078		23,337
Greater than 80% and less than or equal to 90%	—		—		—		—		1		127		128
Greater than 90% and less than or equal to 100%	—		—		—		—		1		60		61
Greater than 100%	—		—		—		—		—		55		55
Total other	—		—		—		30		231		23,320		23,581
Total	$	420,513	$	1,205,201	$	983,069	$	175,989	$	81,917	$	817,719	$	3,684,408
Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	292,970	$	1,123,460	$	976,947	$	174,700	$	81,237	$	815,893	$	3,465,207
Greater than 80% and less than or equal to 90%	69,898		76,249		4,741		996		586		1,231		153,701
Greater than 90% and less than or equal to 100%	57,604		5,398		1,353		280		81		289		65,005
Greater than 100%	41		94		28		13		13		306		495
Total	$	420,513	$	1,205,201	$	983,069	$	175,989	$	81,917	$	817,719	$	3,684,408

	As of December 31, 2021, by Year of Origination(1)
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Estimated mark-to-market LTV ratio:(2)
20- and 30-year or more, amortizing fixed-rate:
Less than or equal to 80%	$	798,830	$	881,290	$	177,909	$	87,825	$	111,059	$	666,327	$	2,723,240
Greater than 80% and less than or equal to 90%	129,340		39,689		2,689		1,056		622		1,687		175,083
Greater than 90% and less than or equal to 100%	66,667		2,278		544		229		57		460		70,235
Greater than 100%	21		12		9		16		22		467		547
Total 20- and 30-year or more, amortizing fixed-rate	994,858		923,269		181,151		89,126		111,760		668,941		2,969,105
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	196,163		157,076		25,390		9,595		20,715		121,027		529,966
Greater than 80% and less than or equal to 90%	2,576		259		16		4		2		7		2,864
Greater than 90% and less than or equal to 100%	579		5		—		1		1		4		590
Greater than 100%	—		—		—		—		2		5		7
Total 15-year or less, amortizing fixed-rate	199,318		157,340		25,406		9,600		20,720		121,043		533,427
Adjustable-rate:
Less than or equal to 80%	6,166		2,235		1,065		1,236		2,524		12,501		25,727
Greater than 80% and less than or equal to 90%	438		25		7		4		2		3		479
Greater than 90% and less than or equal to 100%	135		1		—		—		—		—		136
Greater than 100%	—		—		—		—		—		—		—
Total adjustable-rate	6,739		2,261		1,072		1,240		2,526		12,504		26,342
Other:
Less than or equal to 80%	—		—		34		268		655		26,930		27,887
Greater than 80% and less than or equal to 90%	—		—		—		3		6		275		284
Greater than 90% and less than or equal to 100%	—		—		—		1		2		133		136
Greater than 100%	—		—		—		1		1		141		143
Total other	—		—		34		273		664		27,479		28,450
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324
Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	1,001,159	$	1,040,601	$	204,398	$	98,924	$	134,953	$	826,785	$	3,306,820
Greater than 80% and less than or equal to 90%	132,354		39,973		2,712		1,067		632		1,972		178,710
Greater than 90% and less than or equal to 100%	67,381		2,284		544		231		60		597		71,097
Greater than 100%	21		12		9		17		25		613		697
Total	$	1,200,915	$	1,082,870	$	207,663	$	100,239	$	135,670	$	829,967	$	3,557,324

(1)Excludes $8.5 billion and $9.5 billion as of September 30, 2022 and December 31, 2021, respectively, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies, which represents primarily reverse mortgages for which we do not calculate an estimated mark-to-market LTV ratio.

(2)The aggregate estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan divided by the estimated current value of the property as of the end of each reported period, which we calculate using an internal valuation model that estimates periodic changes in home value.

The following tables display the total amortized cost of our multifamily HFI loans by year of origination and credit-risk rating, excluding loans for which we have elected the fair value option. Property rental income and property valuations are key inputs to our internally assigned credit risk ratings.

	As of September 30, 2022, by Year of Origination
	2022		2021		2020		2019		2018		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	41,215	$	65,917	$	76,340	$	60,824	$	50,069	$	109,463	$	403,828
Classified(2)	66		172		1,061		2,383		2,181		11,890		17,753
Total	$	41,281	$	66,089	$	77,401	$	63,207	$	52,250	$	121,353	$	421,581

	As of December 31, 2021, by Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Non-classified(1)	$	58,986	$	79,602	$	64,278	$	55,552	$	44,037	$	87,549	$	390,004
Classified(2)	21		595		2,288		2,114		4,091		7,092		16,201
Total	$	59,007	$	80,197	$	66,566	$	57,666	$	48,128	$	94,641	$	406,205

(1)A loan categorized as “Non-classified” is current or adequately protected by the current financial strength and debt service capability of the borrower.

(2)Represents loans classified as “Substandard” or “Doubtful.” Loans classified as “Substandard” have a well-defined weakness that jeopardizes the timely full repayment. “Doubtful” refers to a loan with a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions and values. We had loans with an amortized cost of $15 million classified as doubtful as of September 30, 2022 and loans with an amortized cost of less than $1 million classified as doubtful as of December 31, 2021.

Loss Mitigation Options for Borrowers Experiencing Financial Difficulty

As part of our loss mitigation activities, we may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. In addition to loan modifications, we also provide other loss mitigation options to assist borrowers who experience financial difficulties.

Below we provide disclosures relating to loan restructurings where borrowers were experiencing financial difficulty, including restructurings that resulted in an insignificant payment delay. The disclosures exclude loans classified as held for sale and those for which we have elected the fair value option.

Single-Family Loan Restructurings

We offer several types of restructurings to single-family borrowers that may result in a payment delay, interest rate reduction, term extension, or combination thereof. We do not typically offer principal forgiveness.

We offer the following types of restructurings to single-family borrowers that only result in a payment delay:

•a forbearance plan is a short-term loss mitigation option which grants a period of time (typically 3-month increments) during which the borrower’s monthly payment obligations are reduced or suspended. A forbearance plan does not impact our reporting of when a loan is considered past due, which remains based on the contractual terms of the loan. Borrowers may exit a forbearance plan by repaying all past due amounts to fully reinstate the loan, paying off the loan in full, or entering into another loss mitigation option, such as a repayment plan, a payment deferral, or a loan modification. The vast majority of forbearance plans offered since 2020 relate to a COVID-19-related financial hardship where we have authorized our servicers to offer a forbearance plan for up to 18 months for eligible borrowers;

•a repayment plan is a short-term loss mitigation option that allows borrowers a specific period of time to return the loan to current status by paying the regular monthly payment plus additional agreed-upon delinquent amounts (generally for a period up to 12 months and the monthly repayment plan amount must not exceed 150% of the contractual mortgage payment). A repayment plan does not impact our reporting of when a loan is considered past due, which remains based on the contractual terms of the loan. At the end of the repayment plan, the borrower resumes making the regular monthly payment; and

•a payment deferral is a loss mitigation option which defers the repayment of the delinquent principal and interest payments and other eligible default-related amounts that were advanced on behalf of the borrower by converting them into a non-interest-bearing balance due at the earlier of the payoff date, the maturity date, or sale or transfer of the property. The remaining mortgage terms, interest rate, payment schedule, and maturity date remain unchanged, and no trial period is required. The number of months of payments deferred varies based on the types of hardships the borrower is facing.

We also offer single-family borrowers loan modifications, which contractually change the terms of the loan. Our loan modification programs generally require completion of a trial period of three to four months where the borrower makes reduced monthly payments prior to receiving the modification. During the trial period, the mortgage loan is not contractually modified and continues to be reported as past due according to its contractual terms. The reduced payments that are made by the borrower during the trial period will result in a payment delay with respect to the original contractual terms of the loan. After successful completion of the trial period, and the borrower’s execution of a modification agreement, the mortgage loan is contractually modified.

Our loan modifications include the following concessions:

•capitalization of past due amounts, a form of payment delay, which capitalizes interest and other eligible default related amounts that were advanced on behalf of the borrower that are past due into the unpaid principal balance; and

•a term extension, which typically extends the contractual maturity date of the loan to 40 years from the effective date of the modification.

In addition to these concessions, loan modifications may also include an interest rate reduction, which reduces the contractual interest rate of the loan, or a principal forbearance, which is another form of payment delay that includes forbearing repayment of a portion of the principal balance as a non-interest bearing amount that is due at the earlier of the payoff date, the maturity date, or sale or transfer of the property.

Multifamily Loan Restructurings

For multifamily borrowers, loan restructurings include short-term forbearance plans and loan modification programs, which primarily result in term extensions of up to one year with no change to the loan’s interest rate. In certain cases, we may make more significant modifications of terms for borrowers experiencing financial difficulty, such as reducing the interest rate, converting to interest-only payments, extending the maturity for longer than one year, providing principal forbearance, or some combination of these terms.

Restructurings for Borrowers Experiencing Financial Difficulty

The following table displays the amortized cost of HFI mortgage loans that were restructured during the three and nine months ended September 30, 2022, presented by portfolio segment and class of financing receivable.

	For the Three Months Ended September 30, 2022
	Payment Delay (Only)
	Forbearance Plan		Payment Deferral		Trial Modification and Repayment Plans		Payment Delay and Term Extension(1)		Payment Delay, Term Extension and Interest Rate Reduction(1)		Total		Percentage of Total by Financing Class(2)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	9,811	$	3,827	$	2,869	$	1,144	$	2,321	$	19,972	1	%
15-year or less, amortizing fixed-rate	478		196		129		1		1		805		*
Adjustable-rate	49		22		15		—		3		89		*
Other	173		77		86		25		91		452		1
Total single-family	10,511		4,122		3,099		1,170		2,416		21,318		1
Multifamily	6		—		—		—		18		24		*
Total(3)	$	10,517	$	4,122	$	3,099	$	1,170	$	2,434	$	21,342	1
	For the Nine Months Ended September 30, 2022
	Payment Delay (Only)
	Forbearance Plan		Payment Deferral		Trial Modification and Repayment Plans		Payment Delay and Term Extension(1)		Payment Delay, Term Extension and Interest Rate Reduction(1)		Total		Percentage of Total by Financing Class(2)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	13,905	$	14,705	$	5,417	$	2,832	$	11,247	$	48,106	2	%
15-year or less, amortizing fixed-rate	697		794		245		2		1		1,739		*
Adjustable-rate	76		83		39		—		26		224		1
Other	289		353		182		109		497		1,430		4
Total single-family	14,967		15,935		5,883		2,943		11,771		51,499		1
Multifamily	187		—		—		—		18		205		*
Total(3)	$	15,154	$	15,935	$	5,883	$	2,943	$	11,789	$	51,704	1

*    Represents less than 0.5% of total by financing class.

(1)    Represents loans that received a contractual modification.

(2)    Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.

(3)    Excludes $205 million and $3.0 billion for the three and nine months ended September 30, 2022, respectively, for loans that received a loss mitigation activity during the period that paid off, repurchased or sold prior to period end. Also excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale. Loans may move from one category to another, as a result of the restructuring(s) they received during the period.

Our estimate of future credit losses uses a lifetime methodology, derived from modeled loan performance based on the historical experience of loans with similar risk characteristics, adjusted to reflect current conditions, our current loss mitigation activities and reasonable and supportable forecasts. The credit loss model considers extensive historical loss experience, which would include the impact of the loss mitigation programs that we offer to borrowers experiencing financial difficulty, and also includes the impact of projected loss severities as a result of a loan default. The manner in which these loss mitigation programs are factored into our loss estimates do not vary by portfolio segment.

The following tables summarize the financial impacts of loan modifications and payment deferrals made to single-family HFI loans during the three and nine months ended September 30, 2022, presented by class of financing receivable. We discuss the qualitative impacts of forbearance plans, repayment plans, and trial modifications earlier in this footnote. As a result, those loss mitigation options are excluded from the table below.

	For the Three Months Ended September 30, 2022
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in Months)	Average Amount Capitalized as a Result of a Payment Delay(1)
Loan by class of financing receivable(2):
20- and 30-year or more, amortizing fixed-rate	1.18	%	179	$	20,896
15-year or less, amortizing fixed-rate	1.88		45	16,950
Adjustable-rate	1.47		—	22,079
Other	1.66		192	21,042
	For the Nine Months Ended September 30, 2022
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in Months)	Average Amount Capitalized as a Result of a Payment Delay(1)
Loan by class of financing receivable(2):
20- and 30-year or more, amortizing fixed-rate	1.45	%	179	$	22,862
15-year or less, amortizing fixed-rate	2.31		52	19,872
Adjustable-rate	0.82		—	23,065
Other	1.82		184	23,776

(1)    Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance. Amounts are in whole dollars.

(2)    Excludes the financial effects of modifications for loans that were paid off or otherwise liquidated as of period end.

The following tables display the amortized cost of HFI loans that received a completed modification or payment deferral on or after January 1, 2022, the date we adopted ASU 2022-02, through September 30, 2022 and that defaulted in the period presented. The substantial majority of loans that received a completed modification or a payment deferral during the third quarter of 2022 did not default during the period. For purposes of this disclosure, we define loans that had a payment default as single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period. For loans that receive a forbearance plan, repayment plan or trial modification, these loss mitigation options generally remain in default until the loan is no longer delinquent as a result of the payment of all past-due amounts or as a result of a loan modification or payment deferral. Therefore, forbearance plans, repayment plans and trial modifications are not included in default tables below.

	For the Three Months Ended September 30, 2022
		Payment Delay as a Result of a Payment Deferral (Only)		Payment Delay and Term Extension		Payment Delay, Term Extension and Interest Rate Reduction		Total
	(Dollars in Millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate		$	766	$	97	$	276	$	1,139
15-year or less, amortizing fixed-rate		26		—		—		26
Adjustable-rate		4		—		2		6
Other		19		4		18		41
Total single-family		815		101		296		1,212
Multifamily		—		—		—		—
Total loans that subsequently defaulted(1)		$	815	$	101	$	296	$	1,212

	For the Nine Months Ended September 30, 2022
		Payment Delay as a Result of a Payment Deferral (Only)		Payment Delay and Term Extension		Payment Delay, Term Extension and Interest Rate Reduction		Total
	(Dollars in Millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate		$	1,083	$	136	$	343	$	1,562
15-year or less, amortizing fixed-rate		39		—		—		39
Adjustable-rate		5		—		3		8
Other		29		7		26		62
Total single-family		1,156		143		372		1,671
Multifamily		—		—		—		—
Total loans that subsequently defaulted(1)		$	1,156	$	143	$	372	$	1,671

(1)    Represents amortized cost as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.

The following table displays an aging analysis of HFI mortgage loans that were restructured on or after January 1, 2022, the date we adopted ASU 2022-02, through September 30, 2022, presented by portfolio segment and class of financing receivable. The substantial majority of loans that received a completed modification or a payment deferral during the third quarter of 2022 were not delinquent.

	As of September 30, 2022
	30-59 Days Delinquent		60-89 Days Delinquent(1)		Seriously Delinquent		Total Delinquent		Current		Total
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	3,051	$	2,202	$	13,299	$	18,552	$	22,262	$	40,814
15-year or less, amortizing fixed-rate	132		90		553		775		766		1,541
Adjustable-rate	11		9		80		100		99		199
Other	92		51		361		504		732		1,236
Total single-family loans modified	3,286		2,352		14,293		19,931		23,859		43,790
Multifamily	—		—		187		187		18		205
Total loans restructured(2)	$	3,286	$	2,352	$	14,480	$	20,118	$	23,877	$	43,995

(1)    Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.    

(2)    Represents the amortized cost basis as of period end.

Troubled Debt Restructuring Disclosures Prior to Our Adoption of ASU 2022-02

Prior to our adoption of ASU 2022-02, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. In addition to formal loan modifications, we accounted for informal restructurings as a TDR if we deferred more than three missed payments to a borrower experiencing financial difficulty. We also classified bankruptcy relief provided to certain borrowers as TDRs. However, our TDR accounting described herein was suspended for most of our loss mitigation activities through our election to account for certain eligible loss mitigation activities occurring between March 2020 and January 1, 2022 under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021. On January 1, 2022, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2022. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified. See “Note 1, Summary of Significant Accounting Policies” in our 2021 Form 10-K for more information on the COVID-19 relief from TDR accounting and disclosure requirements, and “Note 1, Summary of Significant Accounting Policies” in this report for more information on our adoption of ASU 2022-02.

The substantial majority of the loan modifications accounted for as TDRs resulted from a payment delay, term extension, interest rate reduction or a combination thereof. The average term extension of a single-family modified loan was 151 months and the average interest rate reduction was 0.56 percentage points for the three months ended September 30, 2021. During the nine months ended September 30, 2021, the average term extension of a single-family modified loan was 146 months and the average interest rate reduction was 0.57 percentage points.

The following table displays the number of loans and amortized cost of loans classified as a TDR during the period.

	For the Three Months Ended September 30, 2021
	Number of Loans	Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	2,126	$	345
15-year or less, amortizing fixed-rate	209	16
Adjustable-rate	18	2
Other	88	8
Total single-family	2,441	371
Multifamily	—	—
Total TDRs	2,441	$	371

	For the Nine Months Ended September 30, 2021
	Number of Loans	Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	8,022	$	1,274
15-year or less, amortizing fixed-rate	886	70
Adjustable-rate	96	14
Other	416	43
Total single-family	9,420	1,401
Multifamily	—	—
Total TDRs	9,420	$	1,401

For loans that defaulted in the periods presented and that were classified as a TDR in the twelve months prior to the default, the following table displays the number of loans and the amortized cost of these loans at the time of payment default. For purposes of this disclosure, we defined loans that had a payment default as: single-family and multifamily loans with completed modifications that liquidated during the period, either through foreclosure, deed-in-lieu of foreclosure, or a short sale; single-family loans with completed modifications that are two or more months delinquent during the period; or multifamily loans with completed modifications that are one or more months delinquent during the period.

	For the Three Months Ended September 30, 2021
	Number of Loans	Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	1,782	$	294
15-year or less, amortizing fixed-rate	133	10
Adjustable-rate	11	1
Other	200	37
Total single-family	2,126	342
Multifamily	—	—
Total TDRs that subsequently defaulted	2,126	$	342

	For the Nine Months Ended September 30, 2021
	Number of Loans	Amortized Cost
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	5,754	$	969
15-year or less, amortizing fixed-rate	330	24
Adjustable-rate	26	4
Other	693	128
Total single-family	6,803	1,125
Multifamily	—	—
Total TDRs that subsequently defaulted	6,803	$	1,125

Nonaccrual Loans

For loans negatively impacted by the COVID-19 pandemic, we continue to recognize interest income for up to six months of delinquency provided that the loan was either current as of March 1, 2020 or originated after March 1, 2020. For single-family loans, we continue to accrue interest income beyond six months of delinquency provided that the collection of principal and interest continues to be reasonably assured. Multifamily loans that are in a forbearance arrangement are placed on nonaccrual status when the borrower is six months past due unless the loan is both well secured and in the process of collection. For single-family and multifamily loans in a forbearance arrangement that are placed on nonaccrual status, cash payments for interest are applied as a reduction of accrued interest receivable until the receivable has been reduced to zero, and then recognized as interest income. For loans that have been negatively impacted by COVID-19, we establish a valuation allowance for expected credit losses on the accrued interest receivable balance applying the process that we have established for both single-family and multifamily loans. The credit expense related to this valuation allowance is classified as a component of the provision for credit losses. Accrued interest receivable is written off when the amount is deemed to be uncollectible. Loans that are in active forbearance plans are not evaluated for write-off. For loans not subject to the COVID-19-related guidance, we have elected not to measure an allowance for credit losses on accrued interest receivable balances as we have a nonaccrual policy to ensure the timely reversal of unpaid accrued interest. See “Note 4, Allowance for Loan Losses” for additional information about our current-period provision for loan losses.

For loans not subject to the COVID-19-related nonaccrual policy we discontinue accruing interest when we believe collectability of principal and interest is not reasonably assured, which for a single-family loan we have determined,

based on our historical experience, to be when the loan becomes two months or more past due according to its contractual terms. Single-family and multifamily loans are reported past due if a full payment of principal and interest is not received within one month of its due date.

Interest income previously accrued but not collected is reversed through interest income at the date the loan is placed on nonaccrual status. For single-family loans on nonaccrual status, we recognize income when cash payments are received. We return a non-modified single-family loan to accrual status at the point when the borrower brings the loan current.

As a part of our single-family loss mitigation activities, we restructure loans where the borrower is experiencing financial difficulty. For the purpose of income recognition, we require the borrower to complete a performance period for those loss mitigation arrangements that bring the loan current via the capitalization of the past due principal and interest (i.e., contractual modifications and payment deferrals). In that regard, our contractual modifications generally include a trial period (a performance period of generally 3 to 4 months) that the borrower has to complete before the loan is permanently modified. The loans that receive these contractual modifications are not returned to accrual status until the borrower has successfully made all required payments during the trial period and the modification is made permanent. As payment deferrals do not include a trial period, these restructurings are not returned to accrual status until the borrower has made three consecutive contractual payments. If interest is capitalized pursuant to either a loan modification or a payment deferral, any capitalized interest that had not been previously recognized as interest income is recorded as a discount to the loan and amortized over the life of the loan.

For loans that have not been negatively impacted by COVID-19, we place a multifamily loan on nonaccrual status when the loan becomes two months or more past due according to its contractual terms unless the loan is well secured such that collectability of principal and accrued interest is reasonably assured. For multifamily loans on nonaccrual status, we apply any payment received on a cost recovery basis to reduce principal on the mortgage loan. We return a multifamily loan to accrual status when the borrower cures the delinquency of the loan.

The table below displays the accrued interest receivable written off through the reversal of interest income for nonaccrual loans.

		For the Three Months Ended September 30,
		2022		2021
	(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family		$	14	$	15
Multifamily		1		—

		For the Nine Months Ended September 30,
		2022		2021
	(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family		$	46	$	144
Multifamily		1		1

The tables below include the amortized cost of and interest income recognized on our HFI single-family and multifamily loans on nonaccrual status by class, excluding loans for which we have elected the fair value option.

	As of						For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
	September 30, 2022		June 30, 2022		December 31, 2021
	Amortized Cost						Total Interest Income Recognized(1)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	10,121	$	10,241	$	17,599	$	48	$	175
15-year or less, amortizing fixed-rate	235		245		430		1		3
Adjustable-rate	55		59		107		—		1
Other	591		698		1,101		3		9
Total single-family	11,002		11,243		19,237		52		188
Multifamily	1,231		1,317		1,259		12		25
Total nonaccrual loans	$	12,233	$	12,560	$	20,496	$	64	$	213

	As of						For the Three Months Ended September 30, 2021		For the Nine Months Ended September 30, 2021
	September 30, 2021		June 30, 2021		December 31, 2020
	Amortized Cost						Total Interest Income Recognized(1)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	20,083	$	24,728	$	22,907	$	67	$	241
15-year or less, amortizing fixed-rate	491		596		853		1		4
Adjustable-rate	126		179		270		—		1
Other	1,277		1,761		2,475		3		14
Total single-family	21,977		27,264		26,505		71		260
Multifamily	2,253		2,220		2,069		9		24
Total nonaccrual loans	$	24,230	$	29,484	$	28,574	$	80	$	284

(1)Interest income recognized includes amortization of any deferred cost basis adjustments while the loan is performing and that is not reversed when the loan is placed on nonaccrual status. For loans negatively impacted by the COVID-19 pandemic, also includes amounts accrued but not collected prior to the loan being placed on nonaccrual status. For single-family, interest income recognized includes payments received on nonaccrual loans held as of period end.