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Mortgage Loans
 6 Months Ended
Jun. 30, 2023
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
June 30, 2023December 31, 2022
(Dollars in millions)
Single-family
$3,638,886 $3,644,158 
Multifamily
445,653 431,440 
Total unpaid principal balance of mortgage loans
4,084,539 4,075,598 
Cost basis and fair value adjustments, net
46,568 50,185 
Allowance for loan losses for HFI loans
(9,982)(11,347)
Total mortgage loans(1)
$4,121,125 $4,114,436 
(1)Excludes $9.7 billion and $9.5 billion of accrued interest receivable, net of allowance as of June 30, 2023 and December 31, 2022, respectively.
The following table displays information about our purchase of HFI loans, redesignation of loans from HFI to HFS and sales of mortgage loans during the period.
For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
(Dollars in millions)
Purchase of HFI loans:
Single-family unpaid principal balance$89,175 $172,303 $156,642 $411,771 
Multifamily unpaid principal balance15,111 18,674 25,346 34,683 
Single-family loans redesignated from HFI to HFS:
Amortized cost
$— $3,192 $— $4,373 
Lower of cost or fair value adjustment at time of redesignation(1)
— (209)— (222)
Allowance reversed at time of redesignation
— 155 — 218 
Single-family loans sold:
Unpaid principal balance
$— $4,310 $1,842 $4,310 
Realized gains, net
— 71 17 71 
(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 $4.5 billion as of June 30, 2023 and $4.6 billion as of December 31, 2022. Typically, a portion of the loans in the process of formal foreclosure proceedings will not ultimately foreclose as a result of our various loss mitigation and foreclosure prevention efforts.
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 June 30, 2023
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
$25,262 $6,392 $17,676 $49,330 $3,126,385 $3,175,715 $3,962 $3,236 
15-year or less, amortizing fixed-rate
1,475 272 667 2,414 457,079 459,493 212 137 
Adjustable-rate
144 33 105 282 27,028 27,310 33 25 
Other(2)
551 146 716 1,413 26,819 28,232 243 264 
Total single-family
27,432 6,843 19,164 53,439 3,637,311 3,690,750 4,450 3,662 
Multifamily(3)
581 N/A1,377 1,958 444,192 446,150 341 728 
Total
$28,013 $6,843 $20,541 $55,397 $4,081,503 $4,136,900 $4,791 $4,390 
 As of December 31, 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
$27,891 $6,774 $19,990 $54,655 $3,092,199 $3,146,854 $13,257 $3,254 
15-year or less, amortizing fixed-rate
1,902 314 800 3,016 488,452 491,468 666 82 
Adjustable-rate
176 38 127 341 26,767 27,108 90 24 
Other(2)
660 179 898 1,737 30,362 32,099 424 324 
Total single-family
30,629 7,305 21,815 59,749 3,637,780 3,697,529 14,437 3,684 
Multifamily(3)
173 N/A955 1,128 431,094 432,222 11 13 
Total
$30,802 $7,305 $22,770 $60,877 $4,068,874 $4,129,751 $14,448 $3,697 
(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 and Write-offs by Year of Origination
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 a borrower’s LTV ratio increases, their 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.
The following tables display information about the credit quality of our single-family HFI loans, based on total amortized cost. Effective January 1, 2023, we adopted amendments to ASU 2022-02 that require us to disclose current-period gross write-offs by year of origination for financing receivables. As a result, for the period beginning January 1, 2023, the tables below includes current year write-offs of our single-family HFI mortgage loans by class of financing receivable and year of origination, excluding loans for which we have elected the fair value option.
 
Credit Quality Indicators as of June 30, 2023 and Write-offs For the Six Months Ended June 30, 2023, by Year of Origination(1)
20232022202120202019
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%
$70,043 $308,622 $903,688 $793,746 $142,716 $684,941 $2,903,756 
Greater than 80% and less than or equal to 90%
22,294 100,199 53,443 4,152 1,013 1,379 182,480 
Greater than 90% and less than or equal to 100%
30,563 51,485 4,932 760 110 255 88,105 
Greater than 100%
20 834 218 70 21 207 1,370 
Total 20- and 30-year or more, amortizing fixed-rate
122,920 461,140 962,281 798,728 143,860 686,782 3,175,711 
Current-year 20- and 30-year or more,
     amortizing fixed-rate write-offs		$— $9 $20 $12 $6 $33 $80 
15-year or less, amortizing fixed-rate:
Less than or equal to 80%
4,075 37,021 175,317 125,822 18,623 96,878 457,736 
Greater than 80% and less than or equal to 90%
281 1,010 126 12 1 2 1,432 
Greater than 90% and less than or equal to 100%
175 143 4 1 — 1 324 
Greater than 100%
— — — — — 1 1 
Total 15-year or less, amortizing fixed-rate
4,531 38,174 175,447 125,835 18,624 96,882 459,493 
Current-year 15-year or less, amortizing
     fixed-rate write-offs		— — — — — 1 1 
Adjustable-rate:
Less than or equal to 80%
976 4,518 6,192 1,761 764 10,866 25,077 
Greater than 80% and less than or equal to 90%
298 1,137 133 7 1 4 1,580 
Greater than 90% and less than or equal to 100%
205 434 10 1 — — 650 
Greater than 100%
— 2 1 — — — 3 
Total adjustable-rate
1,479 6,091 6,336 1,769 765 10,870 27,310 
Current-year adjustable-rate write-offs— — — — — — — 
Other:
Less than or equal to 80%
— — — — 28 20,910 20,938 
Greater than 80% and less than or equal to 90%
— — — — — 107 107 
Greater than 90% and less than or equal to 100%
— — — — — 50 50 
Greater than 100%
— — — — — 49 49 
Total other
— — — — 28 21,116 21,144 
Current-year other write-offs— — — — — 11 11 
Total for all classes by LTV ratio:(2)
Less than or equal to 80%
$75,094 $350,161 $1,085,197 $921,329 $162,131 $813,595 $3,407,507 
Greater than 80% and less than or equal to 90%
22,873 102,346 53,702 4,171 1,015 1,492 185,599 
Greater than 90% and less than or equal to 100%
30,943 52,062 4,946 762 110 306 89,129 
Greater than 100%
20 836 219 70 21 257 1,423 
Total
$128,930 $505,405 $1,144,064 $926,332 $163,277 $815,650 $3,683,658 
Total current-year write-offs$— $9 $20 $12 $6 $45 $92 
Credit Quality Indicators as of December 31, 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%
$281,257 $896,977 $820,452 $149,067 $70,306 $651,297 $2,869,356 
Greater than 80% and less than or equal to 90%
84,864 86,335 5,904 1,152 618 1,062 179,935 
Greater than 90% and less than or equal to 100%
84,664 9,284 1,333 217 77 224 95,799 
Greater than 100%
1,230 208 56 18 12 240 1,764 
Total 20- and 30-year or more, amortizing fixed-rate
452,015 992,804 827,745 150,454 71,013 652,823 3,146,854 
15-year or less, amortizing fixed-rate:
Less than or equal to 80%
37,830 185,511 134,336 20,239 7,324 103,841 489,081 
Greater than 80% and less than or equal to 90%
1,363 410 33 3 — 2 1,811 
Greater than 90% and less than or equal to 100%
552 16 1 — — 1 570 
Greater than 100%
3 1 — — — 2 6 
Total 15-year or less, amortizing fixed-rate
39,748 185,938 134,370 20,242 7,324 103,846 491,468 
Adjustable-rate:
Less than or equal to 80%
3,971 6,383 1,865 821 906 11,226 25,172 
Greater than 80% and less than or equal to 90%
1,013 236 12 3 1 3 1,268 
Greater than 90% and less than or equal to 100%
645 21 — — 1 — 667 
Greater than 100%
1 — — — — — 1 
Total adjustable-rate
5,630 6,640 1,877 824 908 11,229 27,108 
Other:
Less than or equal to 80%
— — — 29 222 22,103 22,354 
Greater than 80% and less than or equal to 90%
— — — — 1 129 130 
Greater than 90% and less than or equal to 100%
— — — — 1 56 57 
Greater than 100%
— — — — — 57 57 
Total other
— — — 29 224 22,345 22,598 
Total
$497,393 $1,185,382 $963,992 $171,549 $79,469 $790,243 $3,688,028 
Total for all classes by LTV ratio:(2)
Less than or equal to 80%
$323,058 $1,088,871 $956,653 $170,156 $78,758 $788,467 $3,405,963 
Greater than 80% and less than or equal to 90%
87,240 86,981 5,949 1,158 620 1,196 183,144 
Greater than 90% and less than or equal to 100%
85,861 9,321 1,334 217 79 281 97,093 
Greater than 100%
1,234 209 56 18 12 299 1,828 
Total
$497,393 $1,185,382 $963,992 $171,549 $79,469 $790,243 $3,688,028 
(1)Excludes amortized cost of $7.1 billion and $9.5 billion as of June 30, 2023 and December 31, 2022, 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. For the three months ended June 30, 2023, it also excludes write-offs of $3 million, of mortgage loans guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies. Year of loan origination may not be the same as the period in which we subsequently acquired the loan.
(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. For the periods beginning January 1, 2023, the tables below includes current year write-offs of our multifamily HFI mortgage loans by year of origination, excluding loans for which we have elected the fair value option.
Credit Quality Indicators as of June 30, 2023 and Write-offs for the Six Months Ended June 30, 2023, by Year of Origination(1)
20232022202120202019
Prior
Total
(Dollars in millions)
Internally assigned credit risk rating:
Pass(2)
$23,068 $55,124 $61,194 $74,157 $58,280 $143,885 $415,708 
Special mention(3)
— 8 91 64 16 331 510 
Substandard(4)
— 6,030 3,586 2,091 3,435 14,784 29,926 
Doubtful(5)
— — — — 5 1 6 
Total
$23,068 $61,162 $64,871 $76,312 $61,736 $159,001 $446,150 
Current-year write-offs$— $3 $— $5 $5 $241 $254 
Credit Quality Indicators as of December 31, 2022, by Year of Origination(1)
20222021202020192018PriorTotal
(Dollars in millions)
Internally assigned credit risk rating:
Pass(2)
$57,976 $64,165 $75,468 $59,507 $48,720 $103,772 $409,608 
Special mention(3)
11 41 128 55 54 306 595 
Substandard(4)
1,415 1,580 1,388 2,816 2,488 12,324 22,011 
Doubtful(5)
— — — — 8 — 8 
Total
$59,402 $65,786 $76,984 $62,378 $51,270 $116,402 $432,222 
(1)In the current period, we updated our presentation of credit quality indicators. Previously, “Pass” and “Special mention” were disclosed as “Non-classified,” and “Substandard” and “Doubtful” were disclosed as “Classified.” Prior periods have been updated to conform to the current period presentation. Year of loan origination may not be the same as the period in which we subsequently acquired the loan.
(2)A loan categorized as “Pass” is current or is adequately protected by the current financial strength and debt service capability of the borrower.
(3)“Special mention” refers to loans that are otherwise performing but have potential weaknesses that, if left uncorrected, may result in deterioration in the borrower’s ability to repay in full.
(4)Loans classified as “Substandard” have a well-defined weakness that jeopardizes the timely full repayment. We had seniors housing loans with an amortized cost of $9.2 billion as of June 30, 2023 and December 31, 2022 classified as substandard.
(5)“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.
Loss Mitigation Options for Borrowers Experiencing Financial Difficulty
As part of our loss mitigation activities, we offer several types of loan restructurings to assist borrowers who experience financial difficulties. We do not typically offer principal forgiveness to our single-family or multifamily borrowers.
For single-family borrowers, we may offer loan restructurings that are only in the form of a payment delay (e.g., a forbearance plan, a repayment plan, or a payment deferral). We may also offer loan modifications that contractually change the terms of the loan, generally after the successful completion of a three to four month trial period. Single-family loan modifications may result in the capitalization of past due amounts (a form of payment delay), an interest rate reduction, a term extension, a principal forbearance (which is another form of payment delay), or a combination thereof. During the trial period, the borrower makes reduced payments that are an estimate of the anticipated modified payment amount. Additionally, during the trial period, the mortgage loan is not contractually modified such that the loan continues to be reported as past due and the trial period is considered a form of payment delay with respect to the original contractual terms of the loan. See “Note 3, Mortgage Loans” in our 2022 Form 10-K for additional information about our single-family loss mitigation options.
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.
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 HFS and those for which we have elected the fair value option. See “Note 1, Summary of Significant Accounting Policies” in our 2022 Form 10-K for additional information on our accounting policies for single-family and multifamily loans that have been restructured.
Restructurings for Borrowers Experiencing Financial Difficulty
The following tables display the amortized cost of HFI mortgage loans that were restructured during the period indicated, presented by portfolio segment and class of financing receivable.
For the Three Months Ended June 30, 2023
Payment Delay (Only)
Forbearance Plan Payment DeferralTrial 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 $8,107 $2,689 $3,444 $1,746 $80 $16,066 1 %
15-year or less, amortizing fixed-rate 339 116 132 1 — 588 *
Adjustable-rate46 10 12 — 1 69 *
Other 89 36 86 35 17 263 1 
Total single-family8,581 2,851 3,674 1,782 98 16,986 *
 Multifamily 423 — — — 525 948 *
Total(3)
$9,004 $2,851 $3,674 $1,782 $623 $17,934 *
For the Six Months Ended June 30, 2023
Payment Delay (Only)
Forbearance PlanPayment DeferralTrial 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$10,410 $6,207 $5,202 $3,487 $338 $25,644 1 %
15-year or less, amortizing fixed-rate451 264 203 1 — 919 *
Adjustable-rate55 27 18 — 2 102 *
Other137 84 134 69 45 469 2 
Total single-family11,053 6,582 5,557 3,557 385 27,134 1 
Multifamily784 — — — 534 1,318 *
Total(3)
$11,837 $6,582 $5,557 $3,557 $919 $28,452 1

For the Three Months Ended June 30, 2022
Payment Delay (Only)
Forbearance PlanPayment DeferralTrial 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$11,213 $5,203 $3,815 $769 $4,671 $25,671 1 %
15-year or less, amortizing fixed-rate571 287 154 — — 1,012 *
Adjustable-rate61 27 28 — 4 120 *
Other231 121 144 46 148 690 2 
Total single-family12,076 5,638 4,141 815 4,823 27,493 1 
Multifamily23 — — — 11 34 *
Total(3)
$12,099 $5,638 $4,141 $815 $4,834 $27,527 1 
For the Six Months Ended June 30, 2022
Payment Delay (Only)
Forbearance Plan(4)
Payment Deferral
Trial Modification and Repayment Plans(4)
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$14,428 $11,518 $6,064 $1,831 $9,165 $43,006 1 %
15-year or less, amortizing fixed-rate735 653 253 1 1 1,643 *
Adjustable-rate84 77 53 — 12 226 1 
Other319 304 232 139 374 1,368 4 
Total single-family15,566 12,552 6,602 1,971 9,552 46,243 1 
Multifamily237 — — — 11 248 *
Total(3)
$15,803 $12,552 $6,602 $1,971 $9,563 $46,491 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 $200 million and $604 million for the three and six months ended June 30, 2023, respectively, and $269 million and $1.7 billion for the three and six months ended June 30, 2022, respectively, for loans that were the subject of loss mitigation activity during the period that paid off, were 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, in which case they appear in the table above only in the category that best reflects the cumulative effects of the loan restructurings received during the periods.
Our estimate of future credit losses uses a lifetime methodology, derived from modeled loan performance based on extensive historical experience of loans with similar risk characteristics, adjusted to reflect current conditions and reasonable and supportable forecasts. The historical loss experience used in our single-family and multifamily credit loss models includes the impact of the loss mitigation options provided to borrowers experiencing financial difficulty, and also includes the impact of projected loss severities as a result of a loan default.
The following tables summarize the financial impacts of loan modifications and payment deferrals for single-family HFI loans presented by class of financing receivable. The qualitative impact of forbearance plans, repayment plans, and trial modifications are discussed earlier in this footnote; these loss mitigation options are not included in the table below.
For the Three Months Ended June 30,
20232022
Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in Months)
Average Amount Capitalized as
a Result of a Payment Delay(1)
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 1.15 %172 $16,661 1.45 %180 $22,997 
15-year or less, amortizing fixed-rate 2.50 79 14,819 1.88 51 18,394 
Adjustable-rate
1.61 — 14,450 0.78 — 19,528 
Other
1.34 172 21,304 1.81 183 22,666 
For the Six Months Ended June 30,
20232022
Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in Months)
Average Amount Capitalized as
a Result of a Payment Delay(1)
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 1.09 %173 $16,864 1.52 %179 $23,372 
15-year or less, amortizing fixed-rate 1.83 73 14,636 2.69 61 20,361 
Adjustable-rate
1.76 — 15,228 0.53 — 23,406 
Other
1.48 179 20,715 1.87 185 24,310 
(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 defaulted during the period and had received a completed modification or payment deferral in the twelve months prior to the payment default. The substantial majority of loans that received a completed modification or a payment deferral during the second quarter of 2023 did not default during the period. For purposes of the default tables, 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 June 30, 2023
Payment Delay as a Result of a Payment Deferral (Only)Payment Delay and Term ExtensionPayment Delay, Term Extension and Interest Rate ReductionTotal
(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate$819 $327 $197 $1,343 
15-year or less, amortizing fixed-rate27 — — 27 
Adjustable-rate2 — 2 4 
Other11 7 10 28 
Total single-family859 334 209 1,402 
Multifamily— — 1 1 
Total loans that subsequently defaulted(1)
$859 $334 $210 $1,403 
For the Six Months Ended June 30, 2023
Payment Delay as a Result of a Payment Deferral (Only)Payment Delay and Term ExtensionPayment Delay, Term Extension and Interest Rate ReductionTotal
(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate $1,290 $446 $385 $2,121 
15-year or less, amortizing fixed-rate 44 — 1 45 
Adjustable-rate3 — 2 5 
Other 18 11 19 48 
Total single-family1,355 457 407 2,219 
 Multifamily — — 1 1 
Total loans that subsequently defaulted(1)
$1,355 $457 $408 $2,220 
(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 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 June 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 second quarter of 2022 did not default during the period.
For the Six Months Ended June 30, 2022(1)
Payment Delay as a Result of a Payment Deferral (Only)
Payment Delay and Term Extension(1)
Payment Delay, Term Extension and Interest Rate Reduction(1)
Total
(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate $492 $62 $109 $663 
15-year or less, amortizing fixed-rate 21 1 — 22 
Adjustable-rate3 — 1 4 
Other 14 5 9 28 
Total single-family530 68 119 717 
 Multifamily — — — — 
Total loans that subsequently defaulted(2)
$530 $68 $119 $717 
(1)    The substantial majority of loans that received a completed modification on or after the date we adopted ASU 2022-02 through June 30, 2022 defaulted during the second quarter of 2022; therefore we are not separately presenting a table for the three months ended June 30, 2022.
(2)    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 during the twelve months prior to June 30, 2023, presented by portfolio segment and class of financing receivable.
As of June 30, 2023(1)
30-59 Days Delinquent
60-89 Days Delinquent(2)
Seriously Delinquent Total Delinquent Current Total
(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate $3,442 $2,227 $12,035 $17,704 $18,060 $35,764 
15-year or less, amortizing fixed-rate 114 82 447 643 639 1,282 
Adjustable-rate 14 9 59 82 66 148 
Other 82 43 251 376 400 776 
Total single-family loans modified3,652 2,361 12,792 18,805 19,165 37,970 
 Multifamily — N/A380 380 969 1,349 
Total loans restructured(3)
$3,652 $2,361 $13,172 $19,185 $20,134 $39,319 
(1)    The substantial majority of loans that received a completed modification or a payment deferral during the second quarter of 2023 were not delinquent as of June 30, 2023.
(2)    Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.    
(3)    Represents the amortized cost basis of the loan as of period end.
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 June 30, 2022, presented by portfolio segment and class of financing
receivable.
As of June 30, 2022(1)
30-59 Days Delinquent
60-89 Days Delinquent(2)
Seriously Delinquent Total Delinquent Current Total
(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate $2,351 $1,680 $15,203 $19,234 $13,130 $32,364 
15-year or less, amortizing fixed-rate 112 87 649 848 507 1,355 
Adjustable-rate 14 8 103 125 71 196 
Other 65 44 440 549 504 1,053 
Total single-family loans modified2,542 1,819 16,395 20,756 14,212 34,968 
 Multifamily — N/A237 237 11 248 
Total loans restructured(3)
$2,542 $1,819 $16,632 $20,993 $14,223 $35,216 
(1)    The substantial majority of loans that received a completed modification or a payment deferral during the second quarter of 2022 were not delinquent as of June 30, 2022.
(2)     Multifamily loans 60-89 days delinquent are included in the seriously delinquent column.    
(3)    Represents the amortized cost basis of the loan as of period end.
Nonaccrual Loans
We recognize interest income on an accrual basis except when we believe the collection of principal and interest is not reasonably assured. This generally occurs when a single-family loan is three or more months past due and a multifamily loan is two or more months past due according to its contractual terms. A loan is reported as past due if a full payment of principal and interest is not received within one month of its due date. When a loan is placed on nonaccrual status based on delinquency status, interest previously accrued but not collected on the loan is reversed through interest income.
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 single-family loans, we recognize any contractual interest payments received on the loan while on nonaccrual status as interest income on a cash basis. For multifamily loans, we apply any payment received on a cost recovery basis to reduce the amortized cost of the mortgage loan. Thus, we do not recognize any interest income on a multifamily loan placed on nonaccrual status until the amortized cost of the loan has been reduced to zero. Cost basis adjustments on HFI loans are amortized into interest income over the contractual life of the loan using the effective interest method. No amortization is recognized during periods in which the loan is on nonaccrual status.
A nonaccrual loan is returned to accrual status when the collectability of principal and interest in full is reasonably assured. We generally determine that collectability is reasonably assured when the loan returns to current payment status. If a loan is restructured for a borrower experiencing financial difficulty, we require a performance period of up to 6 months before we return the loan to accrual status. Upon a loan’s return to accrual status, we resume the recognition of interest income and the amortization of cost basis adjustments, if any, into interest income. If interest is capitalized pursuant to a restructuring, any capitalized interest that had not been previously recognized as interest income or that had been reversed through interest income when the loan was placed on nonaccrual status is recorded as a discount to the loan and amortized over the remaining contractual life of the loan.
For single-family loans negatively impacted by the COVID-19 pandemic that were three or more months past due as of December 31, 2022, 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. We continue to accrue interest income beyond six months of delinquency provided that the collection of principal and interest continues to be reasonably assured. For multifamily loans that are in a COVID-19 forbearance arrangement on December 31, 2022, we continue to recognize interest income for up to six months of delinquency and then place them on nonaccrual status when the borrower is six months past due.
For loans that are subject to the COVID-19-related nonaccrual policy, 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 arrangements are not evaluated for write-off.
The table below displays the accrued interest receivable written off through the reversal of interest income for nonaccrual loans.
For the Three Months Ended June 30,
20232022
(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family$74 $15 
Multifamily33 1 
For the Six Months Ended June 30,
20232022
(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family$153 $32 
Multifamily35 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 June 30, 2023For the Six Months Ended June 30, 2023
June 30, 2023March 31, 2023December 31, 2022
Amortized Cost
Total Interest Income Recognized(1)

(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate
$17,051 $14,172 $9,447 $15 $79 
15-year or less, amortizing fixed-rate
565 429 200 — 1 
Adjustable-rate
85 75 53 — — 
Other
573 601 617 2 4 
Total single-family
18,274 15,277 10,317 17 84 
Multifamily
1,448 1,541 2,200 2 10 
Total nonaccrual loans
$19,722 $16,818 $12,517 $19 $94 
As of
For the Three Months Ended June 30, 2022For the Six Months Ended June 30, 2022
June 30, 2022March 31, 2022December 31, 2021
Amortized Cost
Total Interest Income Recognized(1)

(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate
$10,241 $13,692 $17,599 $34 $82 
15-year or less, amortizing fixed-rate
245 331 430 1 2 
Adjustable-rate
59 84 107 — — 
Other
698 913 1,101 2 5 
Total single-family
11,243 15,020 19,237 37 89 
Multifamily
1,317 1,258 1,259 8 14 
Total nonaccrual loans
$12,560 $16,278 $20,496 $45 $103 
(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.