v3.26.1
Mortgage Loans Held for Portfolio
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Mortgage Loans Held for Portfolio Mortgage Loans Held for Portfolio
Under the MPF Program, the Bank invests in mortgage loans that it purchases from its participating members and housing associates. The Bank’s participating members originate, service, and credit enhance residential mortgage loans that are sold to the Bank. See Note 8 – Transactions with Related Parties in this Item for further information regarding transactions with related parties.

The following table presents balances as of June 30, 2026 and December 31, 2025 for mortgage loans held for portfolio.
(in thousands)June 30, 2026December 31, 2025
Fixed-rate long-term single-family mortgages (1)
$5,365,976 $5,098,101 
Fixed-rate medium-term single-family mortgages (2)
67,894 77,064 
Total par value5,433,870 5,175,165 
Premiums78,157 73,778 
Discounts(11,272)(11,766)
Hedging adjustments(22,062)(14,400)
Total mortgage loans held for portfolio (3)
$5,478,693 $5,222,777 
Allowance for credit losses on mortgage loans(2,164)(2,475)
Mortgage loans held for portfolio, net$5,476,529 $5,220,302 
Notes:
(1) Long-term is defined as an original term of greater than 15 years and up to 30 years.
(2) Medium-term is defined as an original term of 15 years or less.
(3) Amounts exclude accrued interest receivable of $35.8 million at June 30, 2026 and $33.6 million at December 31, 2025.

The following table details the par value of mortgage loans held for portfolio outstanding categorized by type as of June 30, 2026 and December 31, 2025.
(in thousands)June 30, 2026December 31, 2025
Conventional loans$5,353,151 $5,090,977 
Government-guaranteed/insured loans80,719 84,188 
Total par value$5,433,870 $5,175,165 

Conventional MPF Loans - Credit Enhancements (CE). The conventional MPF loans held for portfolio are required to be credit enhanced as determined through the use of a validated model so the risk of loss is limited to the losses within the Bank’s risk tolerance. The Bank and its PFIs share the risk of credit losses on conventional MPF loan products held for portfolio, by structuring potential losses into layers with respect to each master commitment. After considering the borrower’s equity and any PMI, credit losses on mortgage loans in a master commitment are then absorbed by the Bank’s FLA. If applicable to the MPF product, the Bank will withhold a PFI’s scheduled performance CE fee in order to reimburse the Bank for any losses allocated to the FLA (recaptured CE Fees). If the FLA is exhausted, the credit losses are then absorbed by the PFI up to an agreed upon CE amount. The CE amount could be covered by SMI obtained by the PFI. Thereafter, any remaining credit losses are absorbed by the Bank.

Payment Status of Mortgage Loans. Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Past due loans are those where the borrower has failed to make timely payments of principal and/or interest in accordance with the terms of the loan. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.
Credit Quality Indicator for Conventional Mortgage Loans. The following table presents the payment status for conventional mortgage loans at June 30, 2026 and December 31, 2025.
June 30, 2026
(in thousands)Origination Year
Payment Status, at amortized cost (1)
Prior to 2022
2022 to 2026
Total
Past due 30-59 days$35,326 $13,218 $48,544 
Past due 60-89 days9,054 6,725 15,779 
Past due 90 days or more15,304 6,854 22,158 
Total past due loans$59,684 $26,797 $86,481 
Current loans2,925,013 2,384,965 5,309,978 
Total conventional loans $2,984,697 $2,411,762 $5,396,459 
December 31, 2025
(in thousands)
Origination Year
Payment Status, at amortized cost (1)
Prior to 2021
2021 to 2025
Total
Past due 30-59 days$35,717 $29,782 $65,499 
Past due 60-89 days9,369 8,636 18,005 
Past due 90 days or more11,683 8,675 20,358 
Total past due loans$56,769 $47,093 $103,862 
Current loans2,077,766 2,955,321 5,033,087 
Total conventional loans $2,134,535 $3,002,414 $5,136,949 
Note:
(1) The amortized cost at June 30, 2026 and December 31, 2025 excludes accrued interest receivable.

Other Delinquency Statistics. The following table presents the delinquency statistics for the Bank’s mortgage loans at June 30, 2026 and December 31, 2025.
June 30, 2026
(dollars in thousands) (1)
Conventional MPF LoansGovernment-Guaranteed or Insured Loans Total
In process of foreclosure, included above (2)
$10,560 $541 $11,101 
Serious delinquency rate (3)
0.4 %2.1 %0.4 %
Past due 90 days or more still accruing interest$— $1,742 $1,742 
Loans on nonaccrual status $25,904 $— $25,904 
December 31, 2025
(dollars in thousands) (1)
Conventional MPF LoansGovernment-Guaranteed or Insured Loans Total
In process of foreclosure, included above (2)
$5,897 $393 $6,290 
Serious delinquency rate (3)
0.4 %2.0 %0.4 %
Past due 90 days or more still accruing interest$— $1,693 $1,693 
Loans on nonaccrual status $24,074 $— $24,074 
Notes:
(1) Amounts presented at amortized cost.
(2) Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.
(3) Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio class.