Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 6

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 5
Chunk 6
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Management's Discussion and AnalysisConsolidated Results of Operations 

The table below presents the components of non-interest income.

Table 5 - Components of Non-Interest Income Year Over Year ChangeYear Ended December 31,2024 vs. 20232023 vs. 2022(Dollars in millions)202420232022$%$%Guarantee income$1,611 $1,615 $783 ($4)— %$832 106 %Investment gains, net2,076 707 1,969 1,369 194 (1,262)(64)Other income488 365 507 123 34 (142)(28)Non-interest income$4,175 $2,687 $3,259 $1,488 55 %($572)(18)%

Key Drivers: 

n    Guarantee income

l    2023 vs. 2022 - Increased primarily due to higher fair value losses on guarantee assets in 2022 as a result of significant interest rate increases.

n    Investment gains, net

l    2024 vs. 2023 - Increased primarily due to higher revenues from held-for-sale loan purchase and securitization activities, lower realized losses on sales of available-for-sale securities, and net impacts from index lock activities.

l    2023 vs. 2022 - Net investment gains declined, as the prior year period included spread-related gains on commitments to hedge the Single-Family securitization pipeline that did not recur in 2023.

(Provision) Benefit for Credit Losses

Our provision for credit losses relates primarily to single-family loans held-for-investment and can vary substantially from period to period based on a number of factors, such as changes in house prices and house price forecasts, changes in interest rates, borrower prepayments and delinquency rates, events such as natural disasters and pandemics, the type and volume of our loss mitigation and foreclosure activity, and government assistance provided to borrowers. See MD&A - Critical Accounting Estimates for additional information.

The table below presents the components of provision for credit losses.