Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 78

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 78
---
 issuance. For lender risk-sharing, represents the maximum amount of loss recovery that is available subject to the terms of counterparty agreements at issuance.

(3)    The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

Multifamily Mortgage Portfolio Credit Enhancement Coverage Outstanding 

While we obtain various forms of credit protection in connection with the acquisition, guarantee, and/or securitization of a loan or group of loans, our principal credit enhancement type is subordination, which is created through our senior subordinate securitization transactions. Through senior subordinate securitizations, we have transferred a substantial amount of the expected and stressed credit risk on the Multifamily mortgage portfolio, thereby reducing our overall credit risk exposure and required capital. As of December 31, 2024 and December 31, 2023, our maximum coverage outstanding provided by subordination in nonconsolidated VIEs was $37.4 billion and $39.5 billion, respectively. 

The table below presents the UPB and delinquency rates for both credit-enhanced and non-credit-enhanced loans underlying our Multifamily mortgage portfolio.

Table 35 - Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage PortfolioDecember 31,20242023(Dollars in millions)UPBDelinquency RateUPBDelinquency RateCredit-enhanced:Subordination$352,566 0.45 %$358,944 0.26 %MSCR/MCIP62,870 0.25 47,011 0.23 Other9,737 0.82 8,844 0.89 Total credit-enhanced425,173 0.43 414,799 0.27 Non-credit-enhanced41,462 0.15 25,998 0.51 Total$466,635 0.40 $440,797 0.28 

The Multifamily delinquency rate increased to 0.40% at December 31, 2024, primarily driven by an increase in delinquent floating rate loans including small balance loans that are in their floating rate period. As of December 31, 2024, 97% of the delinquent loans in the Multifamily mortgage portfolio have credit enhancement coverage.

In addition to the credit enhancements listed above, we have various other credit enhancements related to our multifamily unse