Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 310

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 310
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   Notes to Consolidated Financial Statements | Note 16

recurring basis, with subsequent gains or losses related to changes in fair value (net of accrued interest income) reported in investment gains, net, on our consolidated statements of income. We elected to report separately the portion of the changes in fair value of the loans related to accrued interest from the remaining changes in fair value. Related interest income continues to be reported, based on the stated terms of the loans, as interest income on our consolidated statements of income. The multifamily loan commitments are included in other assets or liabilities on our consolidated balance sheets and are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value included in investment gains, net, on our consolidated statements of income.Debt of Consolidated Trusts and Debt of Freddie Mac

We elected the fair value option on debt that contains embedded derivatives, including certain STACR and SCR debt notes, and certain other debt issuances. Fair value changes are recorded in investment gains, net, on our consolidated statements of income. For debt where we have elected the fair value option, upfront costs and fees are recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. 

The table below presents the fair value and UPB related to items for which we have elected the fair value option. Table 16.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected(1) December 31, 2024December 31, 2023(In millions)Fair valueUPBDifferenceFair valueUPBDifferenceMortgage loans held-for-sale$11,394 $11,470 ($76)$7,356 $7,080 $276 Mortgage loans held-for-investment2,413 2,710 (297)1,806 2,095 (289)Debt of Freddie Mac152 150 2 240 234 6 Debt of consolidated trusts1,689 1,817 (128)1,705 1,799 (94)Other assets (other liabilities)1 N/AN/A95 N/AN/A  (1)    Excludes interest-only securities related to debt of consolidated trusts and debt of Freddie Mac with a fair value of $0.5 billion as of both December 31, 2024 and December 31