institutions under the Mortgage Partnership Finance® (MPF®) Program (“Mortgage Partnership Finance” and “MPF” are registered trademarks of the FHLBank of Chicago). The following table presents information as of March 31, 2025, and December 31, 2024, on mortgage loans held for portfolio, all of which are secured by one- to four-unit residential properties and single-unit homes.


(In millions)	March 31, 2025		December 31, 2024
Fixed rate medium-term mortgage loans(1)	$	10	$	10
Fixed rate long-term mortgage loans(1)	636		648
Subtotal	646		658
Premiums	36		37
Discounts	(1)		(1)
Mortgage loans held for portfolio(2)	681		694
Less: Allowance for credit losses	(1)		(1)
Total mortgage loans held for portfolio, net	$	680	$	693

(1)Medium-term loans have original contractual terms of 15 years or less, and long-term loans have contractual terms of more than 15 years.

(2)Excludes accrued interest receivable of $4 million and $5 million at March 31, 2025, and December 31, 2024, respectively.

Credit Quality Indicator. Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. A past due loan is one where the borrower has failed to make a scheduled full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure. The following table presents the payment status for mortgage loans and other delinquency statistics for the Bank’s mortgage loans at March 31, 2025, and December 31, 2024.


(Dollars in millions)
Payment Status, at Amortized Cost(1)	March 31, 2025			December 31, 2024
30 – 59 days delinquent	$	6		$	8
60 – 89 days delinquent	2			2
90 days or more delinquent	19			17
Total past due	27			27
Total current loans	654			667
Total mortgage loans held for portfolio	$	681		$	694
In process of foreclosure, included above(2)	$	3		$	1
Nonaccrual loans(3)	$	19		$	17

Serious delinquencies as a percentage of total mortgage loans outstanding(4)	2.76		%	2.48		%

(1) The amortized cost in a loan is the unpaid principal balance of the loan, adjusted for net deferred loan fees or costs, amortized premiums or discounts, and direct write-downs.

(2) Includes loans for which the servicer has reported a decision to foreclose or to pursue a similar alternative, such as deed-in-lieu. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.

(3) At March 31, 2025, and December 31, 2024, $6 million and $5 million, respectively, of mortgage loans on nonaccrual status did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans.

(4) Represents loans that are 90 days or more past due or in the process of foreclosure as a percentage of the recorded investment of total mortgage loans outstanding.

Allowance for Credit Losses on Mortgage Loans Held for Portfolio. Mortgage loans held for portfolio are evaluated on a loan-level basis for expected credit losses. The Bank determines its allowance for credit losses on mortgage loans held for portfolio through analyses that include consideration of various loan portfolio and collateral related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions.

At both March 31, 2025 and December 31, 2024, the allowance for credit losses on the mortgage loan portfolio was $1 million. The amount of charge-offs and recoveries related to the allowance for credit losses on the mortgage loan portfolio were de minimis for the three months ended March 31, 2025 and 2024.

For more information related to the Bank’s accounting policies for mortgage loans held for portfolio, see “Item 8. Financial Statements and Supplementary Data – Note 1 – Summary of Significant Accounting Policies” in the Bank’s 2024 Form 10-K.