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.”


	For the Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Single-family allowance for credit losses:
Beginning balance		$	(6,272)	$	(5,487)
(Provision) benefit for credit losses		(103)		(24)
Write-offs		132		191
Recoveries		(43)		(36)

Ending balance		$	(6,286)	$	(5,356)
Multifamily allowance for credit losses:
Beginning balance		$	(2,320)	$	(2,399)
(Provision) benefit for credit losses		(174)		—
Write-offs		243		61
Recoveries		(55)		(28)

Ending balance		$	(2,306)	$	(2,366)
Total allowance for credit losses:
Beginning balance		$	(8,592)	$	(7,886)
(Provision) benefit for credit losses		(277)		(24)
Write-offs		375		252
Recoveries		(98)		(64)

Ending balance		$	(8,592)	$	(7,722)

Components of allowance for credit losses:
		For the Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Single-family allowance for credit losses:
Allowance for loan losses		$	(6,060)	$	(5,178)
Other(1)		(226)		(178)
Total		$	(6,286)	$	(5,356)
Multifamily allowance for credit losses:
Allowance for loan losses		$	(2,297)	$	(2,354)
Other(1)		(9)		(12)
Total		$	(2,306)	$	(2,366)
Total allowance for credit losses:
Allowance for loan losses		$	(8,357)	$	(7,532)
Other(1)		(235)		(190)
Total		$	(8,592)	$	(7,722)

(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 in the first quarter of 2026 was primarily driven by provision associated with loans that we acquired during the period, the majority of which consisted of purchase loans, and by provision from newly delinquent loans, partially offset by a benefit from actual home price growth.

•Provision from economic uncertainty. During the first quarter of 2025, the impact of economic uncertainty associated with recent trade and fiscal policies led to market volatility, which increased our estimate for credit losses and resulted in a provision.

Our multifamily provision for credit losses in the first quarter of 2026 was primarily driven by an increase in loan delinquencies and by weakened property valuations on properties in our multifamily guaranty book of business where foreclosure was probable.

Our multifamily (provision) benefit for credit losses in the first quarter of 2025 was neutral. Our multifamily allowance for credit losses as of March 31, 2025 included a component related to economic uncertainty, particularly uncertainty related to multifamily property values.