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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Allowance for Loan Losses Allowance for Loan Losses
We maintain an allowance for loan losses for HFI loans held by Fannie Mae and by consolidated Fannie Mae MBS trusts, excluding loans for which we have elected the fair value option.
The following table displays changes in our allowance for single-family loans, multifamily loans and total allowance for loan losses.
For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Single-family allowance for loan losses:
Beginning balance
$(5,178)$(6,275)$(5,319)$(6,671)
(Provision) benefit for loan losses
(707)530 (723)869 
Write-offs
161 141 350 256 
Recoveries
(53)(99)(85)(157)
Ending balance
$(5,777)$(5,703)$(5,777)$(5,703)
Multifamily allowance for loan losses:
Beginning balance
$(2,354)$(2,104)$(2,388)$(2,059)
(Provision) benefit for loan losses
(205)(245)(204)(402)
Write-offs
122 38 183 171 
Recoveries
(33)(12)(61)(33)
Ending balance
$(2,470)$(2,323)$(2,470)$(2,323)
Total allowance for loan losses:
Beginning balance
$(7,532)$(8,379)$(7,707)$(8,730)
(Provision) benefit for loan losses
(912)285 (927)467 
Write-offs
283 179 533 427 
Recoveries
(86)(111)(146)(190)
Ending balance
$(8,247)$(8,026)$(8,247)$(8,026)
Our single-family provision for loan losses for the three and six months ended June 30, 2025 was primarily driven by lower actual and projected home price growth. During the three and six months ended June 30, 2025, forecasted home price growth was revised downwards compared to our previous estimates. In addition, actual home prices came in lower than we had previously projected. Lower home prices heighten the likelihood that loans will default and increase the amount of losses on loans that default, which impacts our estimate of losses and ultimately increases our loss reserves and provision for loan losses.
Our single-family benefit for loan losses for the three and six months ended June 30, 2024 was primarily driven by a benefit from actual and forecasted home price growth, partially offset by a provision from changes in loan activity, as described below:
•Benefit from actual and forecasted home price growth. During the three and six months ended June 30, 2024, actual home prices appreciated more than originally projected and our forecast of future home prices also improved.
•Provision from changes in loan activity. This includes provision on newly acquired loans and was primarily driven by the credit risk profile of our single-family acquisitions for the three and six months ended June 30, 2024, which primarily consisted of purchase loans. Purchase loans generally have higher original LTV ratios than refinance loans; therefore, purchase loans have a higher estimated risk of default and loss severity in the allowance than refinance loans and a correspondingly higher loan loss provision at the time of acquisition.
Our multifamily provision for loan losses for the three and six months ended June 30, 2025 was primarily driven by declines in actual and estimated near-term projected multifamily property values and new delinquencies during the second quarter.
Our multifamily provision for loan losses for the three months ended June 30, 2024 was primarily driven by continued declines in estimated actual and near-term projected multifamily property values and the impact of the then-new 30-day
loan delinquencies in our multifamily guaranty book of business, including provision attributable to a portfolio of approximately $600 million of adjustable-rate conventional loans.
Our multifamily provision for loan losses for the six months ended June 30, 2024 was primarily driven by declines in estimated actual and near-term projected multifamily property values, the impact of the then-new 30-day loan delinquencies in our multifamily guaranty book of business, and increases in actual and projected interest rates.