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Mortgage Loans
 9 Months Ended
Sep. 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
September 30, 2023December 31, 2022
(Dollars in millions)
Single-family
$3,644,725 $3,644,158 
Multifamily
455,555 431,440 
Total unpaid principal balance of mortgage loans
4,100,280 4,075,598 
Cost basis and fair value adjustments, net
42,279 50,185 
Allowance for loan losses for HFI loans
(8,671)(11,347)
Total mortgage loans(1)
$4,133,888 $4,114,436 
(1)Excludes $10.1 billion and $9.5 billion of accrued interest receivable, net of allowance as of September 30, 2023 and December 31, 2022, respectively.
The following table displays information about our purchase of HFI loans, redesignation of loans and sales of mortgage loans during the period.
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2023202220232022
(Dollars in millions)
Purchase of HFI loans:
Single-family unpaid principal balance$89,228 $117,686 $245,870 $529,453 
Multifamily unpaid principal balance16,415 15,943 41,761 50,627 
Single-family loans redesignated from HFI to HFS:
Amortized cost
$3,122 $1,726 $3,122 $6,099 
Lower of cost or fair value adjustment at time of redesignation(1)
(638)(196)(638)(418)
Allowance reversed at time of redesignation
47 80 47 298 
Single-family loans redesignated from HFS to HFI:
Amortized cost
$372 $1 $372 $1 
Single-family loans sold:
Unpaid principal balance
$— $1,919 $1,842 $6,229 
Realized gains, net
— 20 17 91 
(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, 2023 and 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 September 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
$29,388 $7,174 $17,461 $54,023 $3,140,515 $3,194,538 $2,208 $3,412 
15-year or less, amortizing fixed-rate
1,648 289 639 2,576 441,002 443,578 126 165 
Adjustable-rate
157 34 101 292 26,413 26,705 18 26 
Other(2)
566 153 614 1,333 25,105 26,438 178 247 
Total single-family
31,759 7,650 18,815 58,224 3,633,035 3,691,259 2,530 3,850 
Multifamily(3)
187 N/A2,169 2,356 453,272 455,628 295 807 
Total
$31,946 $7,650 $20,984 $60,580 $4,086,307 $4,146,887 $2,825 $4,657 
 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 September 30, 2023 and Write-offs For the Nine Months Ended September 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%
$117,474 $316,653 $902,920 $779,843 $139,305 $664,732 $2,920,927 
Greater than 80% and less than or equal to 90%
39,749 100,635 39,119 3,402 829 1,168 184,902 
Greater than 90% and less than or equal to 100%
48,108 35,593 3,374 359 75 214 87,723 
Greater than 100%
32 585 124 45 17 179 982 
Total 20- and 30-year or more, amortizing fixed-rate
205,363 453,466 945,537 783,649 140,226 666,293 3,194,534 
Current-year 20- and 30-year or more,
     amortizing fixed-rate write-offs		$— $24 $37 $38 $104 $533 $736 
15-year or less, amortizing fixed-rate:
Less than or equal to 80%
5,995 36,184 170,132 121,606 17,852 90,299 442,068 
Greater than 80% and less than or equal to 90%
416 758 62 6 — 2 1,244 
Greater than 90% and less than or equal to 100%
209 54 2 — — — 265 
Greater than 100%
— — — — — 1 1 
Total 15-year or less, amortizing fixed-rate
6,620 36,996 170,196 121,612 17,852 90,302 443,578 
Current-year 15-year or less, amortizing
     fixed-rate write-offs		— — 1 1 — 4 6 
Adjustable-rate:
Less than or equal to 80%
1,257 4,574 6,078 1,697 730 10,231 24,567 
Greater than 80% and less than or equal to 90%
415 1,079 84 6 2 4 1,590 
Greater than 90% and less than or equal to 100%
227 311 6 1 — 1 546 
Greater than 100%
— 2 — — — — 2 
Total adjustable-rate
1,899 5,966 6,168 1,704 732 10,236 26,705 
Current-year adjustable-rate write-offs— — — — 1 1 2 
Other:
Less than or equal to 80%
— — — — 27 20,038 20,065 
Greater than 80% and less than or equal to 90%
— — — — — 93 93 
Greater than 90% and less than or equal to 100%
— — — — — 42 42 
Greater than 100%
— — — — — 39 39 
Total other
— — — — 27 20,212 20,239 
Current-year other write-offs— — — — — 46 46 
Total for all classes by LTV ratio:(2)
Less than or equal to 80%
$124,726 $357,411 $1,079,130 $903,146 $157,914 $785,300 $3,407,627 
Greater than 80% and less than or equal to 90%
40,580 102,472 39,265 3,414 831 1,267 187,829 
Greater than 90% and less than or equal to 100%
48,544 35,958 3,382 360 75 257 88,576 
Greater than 100%
32 587 124 45 17 219 1,024 
Total
$213,882 $496,428 $1,121,901 $906,965 $158,837 $787,043 $3,685,056 
Total current-year write-offs$— $24 $38 $39 $105 $584 $790 
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 $6.2 billion and $9.5 billion as of September 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 nine months ended September 30, 2023, it also excludes write-offs of $4 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 operating 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 September 30, 2023 and Write-offs For the Nine Months Ended September 30, 2023, by Year of Origination(1)
20232022202120202019
Prior
Total
(Dollars in millions)
Internally assigned credit risk rating:
Pass(2)
$39,087 $53,256 $60,621 $73,279 $57,342 $138,908 $422,493 
Special mention(3)
— 8 114 53 19 298 492 
Substandard(4)
1 7,807 3,904 2,600 3,726 14,600 32,638 
Doubtful(5)
— — — — 5 — 5 
Total
$39,088 $61,071 $64,639 $75,932 $61,092 $153,806 $455,628 
Current-year write-offs$— $3 $— $7 $23 $273 $306 
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 $9.1 billion and $9.2 billion as of September 30, 2023 and December 31, 2022, respectively, 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 September 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 $7,287 $2,424 $3,407 $1,819 $41 $14,978 *
15-year or less, amortizing fixed-rate 311 97 130 — — 538 *
Adjustable-rate42 8 11 — 1 62 *
Other 54 30 57 31 22 194 1 %
Total single-family7,694 2,559 3,605 1,850 64 15,772 *
 Multifamily 361 — — — 560 921 *
Total(3)
$8,055 $2,559 $3,605 $1,850 $624 $16,693 *
For the Nine Months Ended September 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$10,851 $8,306 $6,216 $5,209 $360 $30,942 1 %
15-year or less, amortizing fixed-rate465 343 241 1 1 1,051 *
Adjustable-rate59 31 22 — 7 119 *
Other128 108 137 94 65 532 2 
Total single-family11,503 8,788 6,616 5,304 433 32,644 1 
Multifamily1,045 — — — 585 1,630 *
Total(3)
$12,548 $8,788 $6,616 $5,304 $1,018 $34,274 1

For the Three Months Ended September 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$9,811 $3,827 $2,869 $1,144 $2,321 $19,972 1 %
15-year or less, amortizing fixed-rate478 196 129 1 1 805 *
Adjustable-rate49 22 15 — 3 89 *
Other173 77 86 25 91 452 1 
Total single-family10,511 4,122 3,099 1,170 2,416 21,318 1 
Multifamily6 — — — 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 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$13,905 $14,705 $5,417 $2,832 $11,247 $48,106 2 %
15-year or less, amortizing fixed-rate697 794 245 2 1 1,739 *
Adjustable-rate76 83 39 — 26 224 1 
Other289 353 182 109 497 1,430 4 
Total single-family14,967 15,935 5,883 2,943 11,771 51,499 1 
Multifamily187 — — — 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 $276 million and $1.2 billion for the three and nine months ended September 30, 2023, respectively, and $205 million and $3.0 billion for the three and nine months ended September 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 September 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 1.05 %167 $16,464 1.18 %179 $20,896 
15-year or less, amortizing fixed-rate 2.41 52 14,218 1.88 45 16,950 
Adjustable-rate
1.97 — 12,980 1.47 — 22,079 
Other
1.04 199 23,072 1.66 192 21,042 
For the Nine Months Ended September 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 1.08 %171 $16,798 1.45 %179 $22,862 
15-year or less, amortizing fixed-rate 2.22 70 14,588 2.31 52 19,872 
Adjustable-rate
1.29 — 14,823 0.82 — 23,065 
Other
1.31 188 21,396 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 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 third 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 September 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$861 $468 $80 $1,409 
15-year or less, amortizing fixed-rate28 — — 28 
Adjustable-rate1 — 1 2 
Other12 9 6 27 
Total single-family902 477 87 1,466 
Multifamily— — — — 
Total loans that subsequently defaulted(1)
$902 $477 $87 $1,466 
For the Nine Months Ended September 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 $1,635 $746 $298 $2,679 
15-year or less, amortizing fixed-rate 51 1 — 52 
Adjustable-rate4 — 2 6 
Other 20 14 17 51 
Total single-family1,710 761 317 2,788 
Multifamily — — — — 
Total loans that subsequently defaulted(1)
$1,710 $761 $317 $2,788 
(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 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 the Three Months Ended September 30, 2022
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 $766 $97 $276 $1,139 
15-year or less, amortizing fixed-rate 26 — — 26 
Adjustable-rate4 — 2 6 
Other 19 4 18 41 
Total single-family815 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(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 $1,083 $136 $343 $1,562 
15-year or less, amortizing fixed-rate 39 — — 39 
Adjustable-rate5 — 3 8 
Other 29 7 26 62 
Total single-family1,156 143 372 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 during the twelve months prior to September 30, 2023, presented by portfolio segment and class of financing receivable.
As of September 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 $3,722 $2,332 $11,455 $17,509 $15,368 $32,877 
15-year or less, amortizing fixed-rate 115 78 405 598 562 1,160 
Adjustable-rate 14 8 55 77 56 133 
Other 75 37 192 304 297 601 
Total single-family loans modified3,926 2,455 12,107 18,488 16,283 34,771 
Multifamily 19 N/A1,045 1,064 587 1,651 
Total loans restructured(3)
$3,945 $2,455 $13,152 $19,552 $16,870 $36,422 
(1)    The substantial majority of loans that received a completed modification or a payment deferral during the third quarter of 2023 were not delinquent as of September 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 September 30, 2022, presented by portfolio segment and class of financing receivable.
As of September 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 $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 modified3,286 2,352 14,293 19,931 23,859 43,790 
 Multifamily — N/A187 187 18 205 
Total loans restructured(3)
$3,286 $2,352 $14,480 $20,118 $23,877 $43,995 
(1)    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.
(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 September 30,For the Nine Months Ended September 30,
2023202220232022
(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family$80 $14 $233 $46 
Multifamily3 1 36 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, 2023For the Nine Months Ended September 30, 2023
September 30, 2023June 30, 2023December 31, 2022
Amortized Cost(1)
Total Interest Income Recognized(2)

(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate
$19,108 $17,051 $9,447 $19 $197 
15-year or less, amortizing fixed-rate
638 565 200 — 4 
Adjustable-rate
99 85 53 — 1 
Other
526 573 617 1 6 
Total single-family
20,371 18,274 10,317 20 208 
Multifamily
1,526 1,448 2,200 3 16 
Total nonaccrual loans
$21,897 $19,722 $12,517 $23 $224 
As of
For the Three Months Ended September 30, 2022For the Nine Months Ended September 30, 2022
September 30, 2022June 30, 2022December 31, 2021
Amortized Cost(1)
Total Interest Income Recognized(2)

(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 
(1)Amortized cost is presented net of any write-offs, which are recognized when a loan balance is deemed uncollectible.
(2)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.