Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 249

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 249
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 balance$6,691 $548 $7,239 $6,402 $447 $6,849 $7,746 $147 $7,893 Components of the ending balance of the allowance for credit losses:Mortgage loans held-for-investment$6,381 $393 $6,774 $6,057 $326 $6,383 $7,314 $77 $7,391 Other(2)310 155 465 345 121 466 432 70 502 Total ending balance$6,691 $548 $7,239 $6,402 $447 $6,849 $7,746 $147 $7,893 (1)Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.(2)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.

n    2024 vs. 2023 - The provision for credit losses for 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions.n    2023 vs. 2022 - The benefit for credit losses for 2023 was primarily driven by a credit reserve release in Single-Family due to improvements in house prices. In addition, charge-offs decreased in 2024 compared to 2023 primarily due to a decrease in charge-offs of accrued interest receivable. Charge-offs increased in 2023 compared to 2022 due to a higher volume of transfers of single-family loans from held-for-investment to held-for-sale and the lower fair value of these loans as a result of higher mortgage interest rates.

Allowance for Credit Losses MethodologyWe recognize changes in the allowance for credit losses through provision or benefit for credit losses on our consolidated statements of income.Mortgage Loans Held-for-InvestmentOur allowance for credit losses on mortgage loans pertains to single-family and multifamily loans classified as held-for-investment for which we have not elected the fair value option. We measure the allowance for credit losses on a pooled basis when our loans share similar risk characteristics. We record charge-offs in the period in which a loan is deemed uncollectible. Proceeds received in excess of amounts previously written off are recorded as a decrease to non-interest expense on our consolidated statements of income. Single-FamilyWe estimate the allowance for credit