Allowance for Credit Losses

9 Months Ended

Sep. 30, 2026

We maintain an allowance for credit 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. In addition, we maintain allowances for credit losses on advances of pre-foreclosure costs, accrued interest receivable, guaranty loss reserves, and credit reserves on AFS debt securities. We collectively refer to these allowances as our “allowance for credit losses.”

The following table displays changes in single-family and multifamily allowance for credit losses and the total allowance for credit losses as well as the components of the single-family and multifamily allowance for credit losses.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
	(Dollars in millions)
Single-family allowance for credit losses:
Beginning balance	$	(6,345)	$	(5,985)	$	(6,272)	$	(5,487)
(Provision) benefit for credit losses	(694)		(269)		(1,023)		(1,030)
Write-offs	181		241		546		598
Recoveries	(67)		(51)		(176)		(145)

Ending balance	$	(6,925)	$	(6,064)	$	(6,925)	$	(6,064)
Multifamily allowance for credit losses:
Beginning balance	$	(2,408)	$	(2,486)	$	(2,320)	$	(2,399)
(Provision) benefit for credit losses	(446)		(69)		(879)		(278)
Write-offs	160		167		604		350
Recoveries	(40)		(25)		(139)		(86)

Ending balance	$	(2,734)	$	(2,413)	$	(2,734)	$	(2,413)
Total allowance for credit losses:
Beginning balance	$	(8,753)	$	(8,471)	$	(8,592)	$	(7,886)
(Provision) benefit for credit losses	(1,140)		(338)		(1,902)		(1,308)
Write-offs	341		408		1,150		948
Recoveries	(107)		(76)		(315)		(231)

Ending balance	$	(9,659)	$	(8,477)	$	(9,659)	$	(8,477)


Components of allowance for credit losses:
	As of
	September 30, 2026		December 31, 2025
	(Dollars in millions)
Single-family allowance for credit losses:
Allowance for loan losses	$	(6,694)	$	(6,056)
Other(1)	(231)		(216)
Total	$	(6,925)	$	(6,272)
Multifamily allowance for credit losses:
Allowance for loan losses	$	(2,721)	$	(2,308)
Other(1)	(13)		(12)
Total	$	(2,734)	$	(2,320)
Total allowance for credit losses:
Allowance for loan losses	$	(9,415)	$	(8,364)
Other(1)	(244)		(228)
Total	$	(9,659)	$	(8,592)

(1)Consists of allowance for credit losses on advances of pre-foreclosure costs, accrued interest receivable, our guaranty loss reserves, and credit reserves on our AFS debt securities. Pre-foreclosure costs represent advances for property taxes and insurance receivables.

Our estimate of credit losses can vary substantially from period to period due to factors such as changes in actual and forecasted home prices, property valuations, and fluctuations in actual and forecasted interest rates. Other drivers include: the volume and credit risk profile of our new acquisitions; borrower payment behavior; events such as natural disasters or pandemics; the type, volume and effectiveness of our loss mitigation activities, including forbearances and loan modifications; the volume of completed foreclosures; and the volume and pricing of loans redesignated from HFI to HFS. In addition, updates to the models, assumptions, and data used in determining our estimate for credit losses can impact our allowance. Changes in our estimate of credit losses are recognized as “(Provision) benefit for credit losses” in our consolidated statements of operations and comprehensive income.

Our single-family provision for credit losses for the three months ended September 30, 2026 was primarily driven by higher actual and projected interest rates, which extend the expected life of the loans, provision related to loans acquired during the period for our single-family guaranty book of business, and loans that became newly delinquent.

Our single-family provision for credit losses for the nine months ended September 30, 2026 was primarily driven by provision related to loans acquired during the period for our single-family guaranty book of business, loans that became newly delinquent, and higher actual and projected interest rates.

For both the three and nine months ended September 30, 2026, these factors were partially offset by benefits from actual home price growth and loans liquidating from our single-family guaranty book of business.

Our single-family provision for credit losses for the three months ended September 30, 2025 was primarily driven by provision associated with loans that we acquired during the period, which primarily consisted of purchase loans.

Our single-family provision for credit losses for the nine months ended September 30, 2025 was primarily driven by provision associated with loans that we acquired during the period, which primarily consisted of purchase loans, and by weaker-than-expected home price growth.

Our multifamily provision for credit losses for the three and nine months ended September 30, 2026 was primarily driven by weakening credit metrics on loans in our multifamily guaranty book of business and a decline in our near-term forecast for multifamily property values. The deterioration in credit metrics primarily reflected higher mark-to-market LTV ratios on multifamily properties, loans with lower debt service coverage ratios driven by lower net operating income reported for the underlying properties, and new loan delinquencies. Higher actual and projected interest rates were also a primary driver of provision for each period.

Our multifamily provision for loan losses for the three and nine months ended September 30, 2025 was primarily driven by an increase in delinquencies including provision from seriously delinquent loans that were written down to the net recoverable amount of the loans’ collateral during the period.