Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 185

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 185
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 disaster or catastrophic event.

Legislative, regulatory, or judicial changes or actions could require operational changes that could adversely affect our business activities and financial results.

Our business or operations may be directly adversely affected by future legislative, regulatory, or judicial actions at the federal, state, and local levels. Such actions could affect us in a number of ways, including by imposing significant additional legal, compliance, and other costs on us, limiting our business activities, and diverting management attention or other resources. Such actions, and any required changes to our business or operations or those of third parties upon whom we rely in response thereto (e.g., seller/servicers), could have an adverse effect on our business activities and financial results. For example, we may be required to increase supervision of our servicers' payment collection practices and policies which would impose significant additional operational costs on our business. For additional information, see Risk Factors – Operational Risks - We rely on third parties, including our sellers and servicers, or their vendors and other business partners, for certain important functions. Any failures by those third parties to deliver products or services, or to manage risks effectively, could disrupt our business operations or servicing of our portfolio, or expose us to other operational risks.

FREDDIE MAC  |  2024 Form 10-K124

Risk Factors

Legal and Compliance Risks

We face risk of non-compliance with our legal and regulatory obligations.

We operate in a highly regulated industry and are subject to heightened supervision from FHFA, as both our regulator and our Conservator, which places increased demand on our compliance systems. Our compliance systems and programs may not be adequate to confirm that we are in compliance with all legal, regulatory, and other requirements. We also rely upon third parties with whom we do business and their respective compliance risk management programs. The failure or limitations of our or any third-party compliance programs may expose us to legal and compliance risk. Failure to comply with applicable legal and regulatory requirements could result in enforcement actions, investigations, fines, monetary and other penalties, additional restrictions on our business activities imposed by FHFA, and harm to our reputation that may adversely affect our results of operations and financial condition.  

We face risk of non-compliance with our contractual and other requirements which may result in legal action, fines, monetary and other penalties, and harm to our reputation that may adversely affect our results of operations and financial condition.

We rely on and have interdependence with third parties due to the number and complexity of our contractual and other obligations