Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 254

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 254
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 classified as available-for-sale are reported at fair value with changes in fair value included in AOCI, net of taxes. See Note 16 for additional information on how we determine the fair value of securities.We record purchases and sales of non-mortgage-related securities on the trade date. We record purchases and sales of mortgage-related securities on the expected settlement date, with a corresponding derivative recorded on the trade date.We recognize interest income using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities.We recognize interest income using the prospective effective interest method for securities that can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment. Under this method, we recognize as interest income, over the expected life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis.We classify the cash flows related to both available-for-sale and trading securities as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities.

Trading Securities The table below presents the fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities. Table 7.2 - Trading Securities (In millions)December 31, 2024December 31, 2023Mortgage-related securities$9,158 $8,113 Non-mortgage-related securities42,714 30,272 Total fair value of trading securities$51,872 $38,385 

The table below provides details of our net trading gains (losses) recognized during the periods presented.Table 7.3 - Net Trading Gains (Losses)Year Ended December 31,(In millions)202420232022Net trading gains (losses)$256 $440 ($3,531)Less: Net trading gains (losses) on securities sold38 105 (1,685)Net trading gains (losses) related to securities still held at period end$218 $335 ($1,846)

FREDDIE MAC  |  2024 Form 10-K169

Financial Statements                                  Notes