Company: FMCCN
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001026214-25-000116
Chunk: 159

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 159
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 credit losses is a complex process that is subject to numerous estimates and assumptions requiring significant management judgment about matters that involve a high degree of subjectivity. This process involves the use of models that require us to make judgments about matters that are difficult to predict. 

Changes in forecasted house price growth rates can have a significant effect on our allowance for credit losses estimates. The table below shows our nationwide forecasted house price growth rates that were used in determining our allowance for credit losses. See Note 5 for additional information regarding our current period provision for credit losses.

 Table 39 - Forecasted House Price Growth RatesSeptember 30, 2025December 31, 202412-Month Forward0.7 %2.7 %13- to 24-Month Forward0.9 3.3 

Freddie Mac 3Q 2025 Form 10-Q40

Management's Discussion and AnalysisRegulation and Supervision

REGULATION AND SUPERVISION

In addition to FHFA’s oversight as our Conservator, we are subject to regulation and supervision by FHFA under our Charter and the GSE Act, and regulation by certain other government agencies. FHFA has the authority to direct changes to our processes and require us to take or refrain from actions that may affect our business. Additionally, regulatory activities by other government agencies can indirectly impact us, even if we are not directly subject to their regulation or oversight. For example, changes in regulations affecting the purchase or servicing of mortgages can impact our operations.

Federal Housing Finance Agency

From time to time, FHFA in its power both as our Conservator and regulator has rescinded or modified certain guidance, directives, and other requirements affecting the Enterprises. FHFA may continue modifying, rescinding, or withdrawing, or changing its approach to implementation and enforcement of, guidance, directives, and other requirements relating to the Enterprises. The impact of these and any similar future actions taken by FHFA are uncertain at this time. 

2025 Dodd-Frank Stress Test Results

FHFA requires the Enterprises to conduct annual stress tests to assess capital adequacy under FHFA's rule implementing the Dodd-Frank Act. In August 2024, FHFA temporarily waived the requirement that we publish our 2024 stress test results. On August 15, 2025, we published on our website the results of the severely adverse scenarios for 2024 and 2025. Those results, and those of previous years, can be found at www.freddiemac.com/investors/resources.