Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 395

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 395
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, and their joint venture, Common Securitization Solutions, LLCSM.

n    Convexity - A measure of how much a financial instrument's duration changes as interest rates change.

n    Corporate Governance Rule - FHFA's rule regarding the Responsibilities of Board of Directors, Corporate Practices and Corporate Governance Matters.

n    Credit enhancement - A financial arrangement that is designed to reduce credit risk by partially or fully compensating an investor in a mortgage or security (e.g., Freddie Mac) in the event of specified losses. Examples of credit enhancements include insurance, CRT transactions, overcollateralization, indemnification agreements, and government guarantees.

n    Credit fee - A fee charged to sellers above base contractual guarantee fees to compensate us for higher levels of risk in some loan products.

n    Credit risk transfer (CRT) transactions - Arrangements where we actively transfer the credit risk exposure on mortgages that we own or guarantee.

n    Credit score - Statistically-derived number that may indicate a borrower's likelihood to repay debt. Reported credit scores are based on FICO credit scoring models developed by Fair Isaac Corporation. FICO scores are ranked on a scale of approximately 300 to 850 points with a higher value indicating a lower likelihood of credit default. 

l Original credit score - The credit score of the borrower at the time of loan origination or our purchase.

l Current credit score - The credit score of the borrower as of the first month of the most recent quarter.

n    CRO - Chief Risk Officer.

n    CSS - Common Securitization Solutions, LLC.

n    CSS Board - Board of Managers of CSS.

n    CSP - Common Securitization Platform.

n    December 2017 Letter Agreement - An agreement that we through the Conservator, acting on our behalf, entered into with Treasury on December 21, 2017 to amend the Amended and Restated Certificate of Creation, Designation, Powers, Preferences, Rights, Privileges, Qualifications, Limitations, Restrictions, Terms, and Conditions of Variable Liquidation Preference Senior Preferred Stock (Par Value $1.00 Per Share) dated September 27, 2012.

n    Deed in lieu of foreclosure - An alternative to foreclosure in which the borrower voluntarily conveys title to the property to the lender and the lender accepts such title (sometimes together with an additional payment by the borrower) in full satisfaction of the mortgage indebtedness.

n