Mortgage Loans

3 Months Ended

Mar. 31, 2025

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”). Unless otherwise noted, within “Note 4, Mortgage Loans,” 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. Within 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.

Within our 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
	March 31, 2025		December 31, 2024
	(Dollars in millions)
Single-family	$	3,604,747	$	3,619,838
Multifamily	495,424		490,358
Total unpaid principal balance of mortgage loans	4,100,171		4,110,196
Cost basis and fair value adjustments, net	34,537		35,517
Allowance for loan losses for HFI loans	(7,532)		(7,707)
Total mortgage loans(1)	$	4,127,176	$	4,138,006

(1)Excludes $11.0 billion and $10.8 billion of accrued interest receivable as of March 31, 2025 and December 31, 2024, respectively.

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

		For the Three Months Ended March 31,
		2025		2024
	(Dollars in millions)
Purchase of HFI loans:
Single-family unpaid principal balance		$	63,627	$	62,290
Multifamily unpaid principal balance		11,514		10,068
Single-family loans redesignated from HFI to HFS:
Amortized cost		$	510	$	236
Lower of cost or fair value adjustment at time of redesignation(1)		(69)		(20)
Allowance reversed at time of redesignation		17		(1)
Single-family loans sold:
Unpaid principal balance		$	—	$	499
Realized gains (losses), net		—		5

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

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 March 31, 2025
	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	$	28,699	$	8,159	$	20,100	$	56,958	$	3,187,685	$	3,244,643	$	299	$	3,742
15-year or less, amortizing fixed-rate	1,283		296		585		2,164		354,526		356,690		14		197
Adjustable-rate	134		36		103		273		24,493		24,766		2		21
Other(2)	449		126		388		963		18,769		19,732		18		168
Total single-family	30,565		8,617		21,176		60,358		3,585,473		3,645,831		333		4,128
Multifamily(3)	849		N/A		2,285		3,134		491,448		494,582		1		1,290
Total	$	31,414	$	8,617	$	23,461	$	63,492	$	4,076,921	$	4,140,413	$	334	$	5,418

	As of December 31, 2024
	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	$	34,339	$	9,582	$	20,004	$	63,925	$	3,183,403	$	3,247,328	$	329	$	3,790
15-year or less, amortizing fixed-rate	1,545		352		616		2,513		367,214		369,727		16		208
Adjustable-rate	158		45		92		295		24,723		25,018		3		18
Other(2)	488		143		407		1,038		19,568		20,606		21		184
Total single-family	36,530		10,122		21,119		67,771		3,594,908		3,662,679		369		4,200
Multifamily(3)	491		N/A		2,060		2,551		487,176		489,727		76		1,070
Total	$	37,021	$	10,122	$	23,179	$	70,322	$	4,082,084	$	4,152,406	$	445	$	5,270

(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.

The amortized cost of single-family mortgage loans for which formal foreclosure proceedings were in process was $5.0 billion and $4.7 billion as of March 31, 2025 and December 31, 2024, respectively. As a result of our various loss mitigation and foreclosure prevention efforts, we expect that only a small portion of the loans in the process of formal foreclosure proceedings will ultimately foreclose.

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 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.

The following tables display information about the credit quality of our single-family HFI loans, based on total amortized cost. The tables below also include 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 March 31, 2025 and Write-offs for the Three Months Ended March 31, 2025, by Year of Origination(1)
	2025		2024		2023		2022		2021		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%	$	21,744	$	174,572	$	163,228	$	328,482	$	840,437	$	1,396,722	$	2,925,185
Greater than 80% and less than or equal to 90%	5,580		60,119		65,003		62,117		14,690		3,180		210,689
Greater than 90% and less than or equal to 100%	8,290		60,797		20,461		13,756		1,682		404		105,390
Greater than 100%	—		402		809		1,747		241		180		3,379
Total 20- and 30-year or more, amortizing fixed-rate	35,614		295,890		249,501		406,102		857,050		1,400,486		3,244,643
Current-year 20- and 30-year or more,      amortizing fixed-rate write-offs	$	—	$	8	$	18	$	39	$	24	$	74	$	163
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	1,599		8,146		6,163		30,106		140,583		168,651		355,248
Greater than 80% and less than or equal to 90%	119		585		250		117		8		—		1,079
Greater than 90% and less than or equal to 100%	83		251		13		15		—		—		362
Greater than 100%	—		—		—		1		—		—		1
Total 15-year or less, amortizing fixed-rate	1,801		8,982		6,426		30,239		140,591		168,651		356,690
Current-year 15-year or less, amortizing      fixed-rate write-offs	—		—		—		1		—		1		2
Adjustable-rate:
Less than or equal to 80%	331		1,621		1,785		4,370		5,289		9,165		22,561
Greater than 80% and less than or equal to 90%	62		431		471		615		33		6		1,618
Greater than 90% and less than or equal to 100%	46		214		126		149		6		1		542
Greater than 100%	—		1		8		34		2		—		45
Total adjustable-rate	439		2,267		2,390		5,168		5,330		9,172		24,766
Current-year adjustable-rate write-offs	—		—		—		—		—		—		—
Other:
Less than or equal to 80%	—		—		—		—		—		16,322		16,322
Greater than 80% and less than or equal to 90%	—		—		—		—		—		50		50
Greater than 90% and less than or equal to 100%	—		—		—		—		—		25		25
Greater than 100%	—		—		—		—		—		21		21
Total other	—		—		—		—		—		16,418		16,418
Current-year other write-offs	—		—		—		—		—		22		22
Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	23,674	$	184,339	$	171,176	$	362,958	$	986,309	$	1,590,860	$	3,319,316
Greater than 80% and less than or equal to 90%	5,761		61,135		65,724		62,849		14,731		3,236		213,436
Greater than 90% and less than or equal to 100%	8,419		61,262		20,600		13,920		1,688		430		106,319
Greater than 100%	—		403		817		1,782		243		201		3,446
Total	$	37,854	$	307,139	$	258,317	$	441,509	$	1,002,971	$	1,594,727	$	3,642,517
Total current-year write-offs	$	—	$	8	$	18	$	40	$	24	$	97	$	187

	Credit Quality Indicators as of December 31, 2024 and Write-offs for the Year Ended December 31, 2024, by Year of Origination(1)
	2024		2023		2022		2021		2020		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%	$	156,136	$	161,237	$	324,160	$	849,984	$	714,620	$	710,162	$	2,916,299
Greater than 80% and less than or equal to 90%	53,904		67,163		71,059		18,333		2,078		1,338		213,875
Greater than 90% and less than or equal to 100%	67,749		27,468		16,801		1,757		233		205		114,213
Greater than 100%	266		670		1,616		208		48		133		2,941
Total 20- and 30-year or more, amortizing fixed-rate	278,055		256,538		413,636		870,282		716,979		711,838		3,247,328
Current-year 20- and 30-year or more,      amortizing fixed-rate write-offs	$	2	$	43	$	130	$	114	$	71	$	261	$	621
15-year or less, amortizing fixed-rate:
Less than or equal to 80%	7,508		6,455		31,140		145,254		102,032		75,904		368,293
Greater than 80% and less than or equal to 90%	576		314		168		11		—		—		1,069
Greater than 90% and less than or equal to 100%	323		24		16		1		—		—		364
Greater than 100%	—		—		1		—		—		—		1
Total 15-year or less, amortizing fixed-rate	8,407		6,793		31,325		145,266		102,032		75,904		369,727
Current-year 15-year or less, amortizing      fixed-rate write-offs	—		1		2		2		1		4		10
Adjustable-rate:
Less than or equal to 80%	1,471		1,790		4,369		5,400		1,478		8,159		22,667
Greater than 80% and less than or equal to 90%	434		502		729		44		5		2		1,716
Greater than 90% and less than or equal to 100%	272		154		165		4		1		1		597
Greater than 100%	—		8		29		1		—		—		38
Total adjustable-rate	2,177		2,454		5,292		5,449		1,484		8,162		25,018
Current-year adjustable-rate write-offs	—		—		1		—		—		1		2
Other:
Less than or equal to 80%	—		—		—		—		—		16,945		16,945
Greater than 80% and less than or equal to 90%	—		—		—		—		—		58		58
Greater than 90% and less than or equal to 100%	—		—		—		—		—		27		27
Greater than 100%	—		—		—		—		—		24		24
Total other	—		—		—		—		—		17,054		17,054
Current-year other write-offs	—		—		—		—		—		37		37
Total for all classes by LTV ratio:(2)
Less than or equal to 80%	$	165,115	$	169,482	$	359,669	$	1,000,638	$	818,130	$	811,170	$	3,324,204
Greater than 80% and less than or equal to 90%	54,914		67,979		71,956		18,388		2,083		1,398		216,718
Greater than 90% and less than or equal to 100%	68,344		27,646		16,982		1,762		234		233		115,201
Greater than 100%	266		678		1,646		209		48		157		3,004
Total	$	288,639	$	265,785	$	450,253	$	1,020,997	$	820,495	$	812,958	$	3,659,127
Total current-year write-offs	$	2	$	44	$	133	$	116	$	72	$	303	$	670

(1)Excludes amortized cost of $3.3 billion and $3.6 billion as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 and year ended December 31, 2024, it also excludes write-offs of $2 million and $47 million, respectively, 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. The tables below also include 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 March 31, 2025 and Write-offs for the Three Months Ended March 31, 2025, by Year of Origination(1)
	2025		2024		2023		2022		2021		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Pass(2)	$	7,086	$	54,311	$	50,931	$	49,399	$	59,330	$	243,047	$	464,104
Special mention(3)	—		30		72		211		334		518		1,165
Substandard(4)	—		440		2,829		8,777		3,362		13,860		29,268
Doubtful(5)	—		—		—		5		—		40		45
Total	$	7,086	$	54,781	$	53,832	$	58,392	$	63,026	$	257,465	$	494,582
Current-year write-offs	$	—	$	—	$	16	$	12	$	19	$	14	$	61

	Credit Quality Indicators as of December 31, 2024 and Write-offs for the Year Ended December 31, 2024, by Year of Origination(1)
	2024		2023		2022		2021		2020		Prior		Total
	(Dollars in millions)
Internally assigned credit risk rating:
Pass(2)	$	49,867	$	51,194	$	49,570	$	59,687	$	71,657	$	175,887	$	457,862
Special mention(3)	54		68		165		353		162		280		1,082
Substandard(4)	429		2,626		9,045		3,259		2,500		12,820		30,679
Doubtful(5)	—		42		—		62		—		—		104
Total	$	50,350	$	53,930	$	58,780	$	63,361	$	74,319	$	188,987	$	489,727
Current-year write-offs	$	—	$	81	$	192	$	16	$	27	$	189	$	505

(1)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 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)“Substandard” refers to loans that have a well-defined weakness that jeopardizes the timely full repayment.

(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. 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 2024 Form 10-K for additional information on our accounting policies for single-family and multifamily loans that have been restructured. Also see “Note 4, Mortgage Loans” in our 2024 Form 10-K for additional information about our single-family and multifamily loss mitigation options.

Restructurings for Borrowers Experiencing Financial Difficulty

The following tables display the amortized cost of HFI mortgage loans that were restructured, during the periods indicated, presented by portfolio segment and class of financing receivable.

	For the Three Months Ended March 31, 2025
	Payment Delay (Only)
	Forbearance Plan		Payment Deferral		Trial Modification and Repayment Plans		Payment Delay and Term Extension(1)		Payment Delay, Term Extension, Interest Rate Reduction, and Other(1)		Total		Percentage of Total by Financing Class(2)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	7,211	$	3,502	$	6,158	$	2,611	$	136	$	19,618	1	%
15-year or less, amortizing fixed-rate	254		119		169		4		—		546		*
Adjustable-rate	42		11		21		—		2		76		*
Other	43		32		60		19		8		162		1
Total single-family	7,550		3,664		6,408		2,634		146		20,402		1
Multifamily	612		—		—		—		22		634		*
Total(3)	$	8,162	$	3,664	$	6,408	$	2,634	$	168	$	21,036	1

	For the Three Months Ended March 31, 2024
	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	$	5,504	$	3,539	$	4,567	$	2,223	$	32	$	15,865	*
15-year or less, amortizing fixed-rate	220		121		153		1		1		496		*
Adjustable-rate	29		18		15		—		1		63		*
Other	33		48		69		28		12		190		1	%
Total single-family	5,786		3,726		4,804		2,252		46		16,614		*
Multifamily	5		—		—		—		12		17		*
Total(3)	$	5,791	$	3,726	$	4,804	$	2,252	$	58	$	16,631	*

*    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 loans that were the subject of loss mitigation activity during the period that paid off, were repurchased or were 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.

The following tables summarize the financial impacts of loan modifications and payment deferrals made to single-family HFI loans presented by class of financing receivable. We discuss the qualitative impacts of forbearance plans, repayment plans, and trial modifications in our 2024 Form 10-K in “Note 4, Mortgage Loans.” As a result, those loss mitigation options are excluded from the table below.

	For the Three Months Ended March 31,
	2025					2024
	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	0.63	%	157	$	12,403	1.04	%	163	$	13,886
15-year or less, amortizing fixed-rate	1.13		65	8,660		1.54		83	13,893
Adjustable-rate	—		—	10,333		2.00		—	13,238
Other	1.00		174	11,647		1.19		172	17,515

(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. 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 March 31, 2025
		Payment Delay as a Result of a Payment Deferral (Only)		Payment Delay and Term Extension		Payment Delay, Term Extension, Interest Rate Reduction and Other		Total
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate		$	1,176	$	756	$	19	$	1,951
15-year or less, amortizing fixed-rate		34		—		—		34
Adjustable-rate		5		—		1		6
Other		13		7		3		23
Total single-family		1,228		763		23		2,014
Multifamily		—		—		—		—
Total loans that subsequently defaulted(1)(2)		$	1,228	$	763	$	23	$	2,014

	For the Three Months Ended March 31, 2024
	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	$	871	$	490	$	15	$	1,376
15-year or less, amortizing fixed-rate	29		—		—		29
Adjustable-rate	3		—		1		4
Other	14		7		4		25
Total single-family	917		497		20		1,434
Multifamily	—		—		5		5
Total loans that subsequently defaulted(1)(2)	$	917	$	497	$	25	$	1,439

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

(2)    The substantial majority of loans that received a completed modification or a payment deferral during the three months ended March 31, 2025 did not default during the first quarter of 2025. The substantial majority of loans that received a completed modification or a payment deferral during the three months ended March 31, 2024 did not default during the first quarter of 2024.

The following tables display an aging analysis of HFI mortgage loans that were restructured during the twelve months prior to March 31, 2025 and March 31, 2024, respectively, presented by portfolio segment and class of financing receivable.

	As of March 31, 2025(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	$	4,040	$	2,889	$	13,813	$	20,742	$	14,107	$	34,849
15-year or less, amortizing fixed-rate	101		82		382		565		398		963
Adjustable-rate	13		13		64		90		34		124
Other	49		32		125		206		125		331
Total single-family loans modified	4,203		3,016		14,384		21,603		14,664		36,267
Multifamily	—		N/A		613		613		1,051		1,664
Total loans restructured(3)	$	4,203	$	3,016	$	14,997	$	22,216	$	15,715	$	37,931

	As of March 31, 2024(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	$	3,283	$	2,080	$	11,125	$	16,488	$	12,856	$	29,344
15-year or less, amortizing fixed-rate	97		61		364		522		421		943
Adjustable-rate	9		8		47		64		44		108
Other	55		33		143		231		204		435
Total single-family loans modified	3,444		2,182		11,679		17,305		13,525		30,830
Multifamily	13		N/A		343		356		957		1,313
Total loans restructured(3)	$	3,457	$	2,182	$	12,022	$	17,661	$	14,482	$	32,143

(1)    As of March 31, 2025, the substantial majority of loans that received a completed modification or a payment deferral during the first quarter of 2025 were not delinquent as of March 31, 2025. As of March 31, 2024, the substantial majority of loans that received a completed modification or a payment deferral during the first quarter of 2024 were not delinquent as of March 31, 2024.

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

(3)    Represents the amortized cost basis 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.

Cost basis adjustments on HFI loans are amortized into interest income over the contractual life of the loan using the effective interest method. Cost basis adjustments on the loan are not amortized into income while a loan is on nonaccrual status. 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.

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 account for interest income on a cost recovery basis and we apply any payment received while on nonaccrual status to reduce the amortized cost of the 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.

A nonaccrual loan is returned to accrual status when the full collection of principal and interest is reasonably assured. We generally determine that the full collection of principal and interest 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 on an accrual basis 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 into interest income over the remaining contractual life 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 March 31,
		2025		2024
	(Dollars in millions)
Accrued interest receivable written off through the reversal of interest income:
Single-family		$	103	$	82
Multifamily		10		3

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 March 31, 2025
	March 31, 2025		December 31, 2024
	Amortized Cost(1)				Total Interest Income Recognized(2)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	26,335	$	25,218	$	46
15-year or less, amortizing fixed-rate	771		770		1
Adjustable-rate	122		114		—
Other	463		482		1
Total single-family	27,691		26,584		48
Multifamily	2,702		2,517		4
Total nonaccrual loans	$	30,393	$	29,101	$	52

	As of					For the Three Months Ended March 31, 2024
	March 31, 2024		December 31, 2023
	Amortized Cost(1)				Total Interest Income Recognized(2)
	(Dollars in millions)
Single-family:
20- and 30-year or more, amortizing fixed-rate	$	22,712	$	21,971		$	38
15-year or less, amortizing fixed-rate	734		727			1
Adjustable-rate	115		109			—
Other	480		508			1
Total single-family	24,041		23,315			40
Multifamily	1,812		1,890			2
Total nonaccrual loans	$	25,853	$	25,205		$	42

(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 single-family, interest income recognized includes payments received on nonaccrual loans held as of period end.