Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 135

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 135
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 or the mortgage finance system. The rule also establishes objective criteria for determining what constitutes new activity, and clarifies certain exclusions.

On June 21, 2024, FHFA announced its conditional approval for Freddie Mac to engage in a limited pilot to purchase certain single-family closed-end second-lien mortgages, following FHFA’s initial publication of the proposed new product for public comment under FHFA’s Prior Approval for Enterprise Products requirement. This conditional approval includes several incremental limitations on the product, including:

n    A maximum volume of $2.5 billion in purchases for the pilot;

n    A maximum duration of 18 months for the pilot;

n    A maximum loan amount of $78,277, corresponding to certain subordinate-lien loan thresholds in the CFPB's definition of Qualified Mortgage;

n    A minimum seasoning period of 24 months for the first mortgage; and

n    Eligibility only for primary residences.

Upon the pilot’s conclusion, FHFA will analyze the data on Freddie Mac’s purchases of second-lien mortgages to determine whether the objectives of the pilot were met. FHFA has determined that any increase to the volume or extension of the duration of the pilot, or conversion of the pilot to a programmatic activity, would be treated as a new product that is subject to public notice and comment and FHFA approval. Any subsequent approval would be informed by the preliminary results of the pilot. 

Enterprise Fair Lending and Fair Housing Compliance

In April 2024, FHFA published a final rule to provide FHFA's supervisory expectations and guidance to Freddie Mac and Fannie Mae on fair lending and fair housing compliance, which became effective in July 2024. FHFA considers ensuring Enterprise compliance with fair lending laws part of FHFA's obligation to further the purposes of the Fair Housing Act in its program of regulatory and supervisory oversight of the Enterprises and its responsibility to ensure that the Enterprises comply with applicable laws.

FHFA's fair lending policy statement generally articulates its policy on fair lending and how FHFA uses its authorities to ensure compliance with fair lending laws. The Enterprises are subject to several associated fair lending requirements, such as requirements to obtain and maintain data relevant to ensuring compliance with fair lending laws, report certain information to FHFA pursuant to FHFA's reporting order on fair lending, include certain information related to fair lending in their annual housing reports, and comply with fair lending requirements associated with other FHFA processes and requirements. The Enterprises are also subject to HUD oversight related to fair housing.