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 June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
	(Dollars in millions)
Single-family allowance for credit losses:
Beginning balance	$	(6,286)	$	(5,356)	$	(6,272)	$	(5,487)
(Provision) benefit for credit losses	(226)		(737)		(329)		(761)
Write-offs	233		166		365		357
Recoveries	(66)		(58)		(109)		(94)

Ending balance	$	(6,345)	$	(5,985)	$	(6,345)	$	(5,985)
Multifamily allowance for credit losses:
Beginning balance	$	(2,306)	$	(2,366)	$	(2,320)	$	(2,399)
(Provision) benefit for credit losses	(259)		(209)		(433)		(209)
Write-offs	201		122		444		183
Recoveries	(44)		(33)		(99)		(61)

Ending balance	$	(2,408)	$	(2,486)	$	(2,408)	$	(2,486)
Total allowance for credit losses:
Beginning balance	$	(8,592)	$	(7,722)	$	(8,592)	$	(7,886)
(Provision) benefit for credit losses	(485)		(946)		(762)		(970)
Write-offs	434		288		809		540
Recoveries	(110)		(91)		(208)		(155)

Ending balance	$	(8,753)	$	(8,471)	$	(8,753)	$	(8,471)


Components of allowance for credit losses:
	As of
	June 30, 2026		December 31, 2025
	(Dollars in millions)
Single-family allowance for credit losses:
Allowance for loan losses	$	(6,117)	$	(6,056)
Other(1)	(228)		(216)
Total	$	(6,345)	$	(6,272)
Multifamily allowance for credit losses:
Allowance for loan losses	$	(2,396)	$	(2,308)
Other(1)	(12)		(12)
Total	$	(2,408)	$	(2,320)
Total allowance for credit losses:
Allowance for loan losses	$	(8,513)	$	(8,364)
Other(1)	(240)		(228)
Total	$	(8,753)	$	(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 and six months ended June 30, 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. The impact of these drivers was partially offset by a benefit from actual home price growth. In addition, for the three months ended June 2026, the redesignation of loans from HFI to HFS also contributed to provision. Upon redesignation of these loans, we recorded the loans at the lower of cost or fair value with a write-off against the allowance for loan losses.

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 downward compared to our previous estimates. In addition, actual home prices came in lower than we had previously projected.

Our multifamily provision for credit losses for the three and six months ended June 30, 2026 was primarily driven by weaker property valuations and slower net operating income growth in our multifamily guaranty book of business and by provision for loans that became seriously delinquent. We continue to observe uncertainty in multifamily property valuations, and we continue to evaluate the extent to which recent market activity in select markets is indicative of broader valuation trends.