Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 118

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 118
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 from borrower defaults. 

We have the ability to commingle TBA-eligible Fannie Mae collateral in certain of our resecuritization products. When we resecuritize Fannie Mae securities in our commingled resecuritization products, our guarantee covers timely payments of principal and interest on such securities. Accordingly, commingling Fannie Mae collateral in our resecuritization transactions increases our off-balance sheet liquidity exposure as we do not have control over the Fannie Mae collateral. See Note 3 and Note 5 for additional information on our mortgage-related guarantees and guarantees of Fannie Mae securities.

FREDDIE MAC  |  2024 Form 10-K89

Management's Discussion and AnalysisLiquidity and Capital Resources 

Commitments

We enter into certain commitments, including commitments to purchase securities under agreements to resell, commitments to purchase multifamily loans, and unfunded multifamily lending arrangements, that are not recorded on our consolidated balance sheets. We have elected the fair value option for certain of our commitments to purchase multifamily loans. We also have entered into other commitments to purchase or sell mortgage loans or mortgage-related securities that are accounted for as derivative instruments. These commitments are recognized on our consolidated balance sheets at fair value. 

In addition, in connection with certain of our multifamily other mortgage-related guarantee arrangements and other securitization products, we have provided commitments to advance funds, commonly referred to as "liquidity guarantees." These guarantees require us to advance funds to third parties that enable them to repurchase tendered bonds or securities that are unable to be remarketed. At both December 31, 2024 and December 31, 2023, there were no liquidity guarantee advances outstanding. See Note 5 and Note 9 for additional information on our commitments.

Cash Flows

n     2024 vs. 2023 - Cash and cash equivalents (including restricted cash and cash equivalents) decreased slightly from $6.0 billion as of December 31, 2023 to $5.5 billion as of December 31, 2024.

n     2023 vs. 2022 - Cash and cash equivalents (including restricted cash and cash equivalents) decreased slightly from $6.4 billion as of December 31, 2022 to $6.0 billion as of December 31, 2023.

Capital Resources 

The GSE Act specifies certain capital requirements for us and authorizes FHFA to establish other capital requirements as