Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 73

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 73
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 of REO properties is also governed by federal fair housing/fair lending requirements.

We are subject to various state and local laws that affect the foreclosure process. The pace and volume of REO acquisitions are affected not only by the delinquent loan population but also by when we can initiate the foreclosure process and the length of the process. These factors extend the time it takes for loans to be foreclosed upon and for the underlying properties to transition to REO.

The volume of our foreclosure sales, which include foreclosure sales that result in our acquisition of the underlying properties and third-party foreclosure sales, was approximately 4,000, 5,000, and 4,000 in 2024, 2023, and 2022, respectively.

The table below shows our Single-Family REO activity.

Table 31 - Single-Family REO ActivityYear Ended December 31,202420232022(Dollars in millions)Number of PropertiesAmountNumber of PropertiesAmountNumber of PropertiesAmountBeginning balance - REO2,499 $354 2,218 $280 1,615 $179 Additions2,223 379 2,600 363 2,137 266 Dispositions(2,398)(345)(2,319)(289)(1,534)(165)Ending balance - REO2,324 388 2,499 354 2,218 280 Beginning balance, valuation allowance(3)(2)(3)Change in valuation allowance(6)(1)1 Ending balance, valuation allowance(9)(3)(2)Ending balance - REO, net$379 $351 $278 

Collateral Deficiency Ratios

Collateral deficiency ratios are the percentages of our realized losses when loans are resolved by the completion of REO dispositions and third-party foreclosure sales or short sales. Collateral deficiency ratios are calculated as the amount of our recognized losses divided by the aggregate UPB of the related loans. The amount of recognized losses is equal to the amount by which the UPB of the loans exceeds the amount of sales proceeds from disposition of the properties, net of capitalized repair and selling expenses, if applicable. Collateral deficiency excludes recoveries from credit enhancements and certain expenses and costs related to the foreclosure process that are recognized on our consolidated financial statements, such as property taxes, homeowner's insurance premiums, property maintenance costs, and the cost of funding the loans after they are repurchased from the associated security pool. Our overall loss severity