Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 88

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 88
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 counterparty.

ACIS Counterparties

As part of our ACIS transactions, we regularly obtain insurance coverage from global insurers and reinsurers. These transactions incorporate features designed to increase the likelihood that we will recover on the claims we file with the insurers and reinsurers. In each transaction, we require the individual insurers and reinsurers to post collateral to cover portions of their exposure, which helps to promote certainty and timeliness of claim payment. In addition, while private mortgage insurance companies are required to be monoline (i.e., to participate solely in the mortgage insurance business, although the holding company may be a diversified insurer), our insurers and reinsurers generally participate in multiple types of insurance businesses, which helps to diversify their risk exposure.

The table below displays the concentration of our single-family credit risk exposure to our ACIS counterparties.

Table 40 - Single-Family ACIS CounterpartiesDecember 31, 2024December 31, 2023(In millions)Maximum Coverage(1)% of TotalMaximum Coverage(1)% of TotalTop five ACIS counterparties$8,156 50 %$8,311 47 %All other ACIS counterparties8,318 50 9,336 53 Total$16,474 100 %$17,647 100 %

(1)Represents maximum coverage exclusive of the collateral posted to secure the counterparties' obligations.

As of December 31, 2024 and December 31, 2023, our ACIS counterparties posted collateral, which may include cash, U.S. Treasury securities, and agency securities, of $3.7 billion and $4.3 billion, respectively. There is a possibility that, if our ACIS counterparties become insolvent, a third-party involved in the restructure process could cancel a contract or contracts and prevent us from accessing collateral for future claims despite current collateral provisions.

FREDDIE MAC  |  2024 Form 10-K72

Management's Discussion and AnalysisRisk Management

Financial Intermediaries, Clearinghouses, and Other Counterparties

Derivative Counterparties

We use cleared derivatives, exchange-traded derivatives, OTC derivatives, and forward sales and purchase commitments to mitigate risk, and are exposed to the non-performance of each of the related financial intermediaries, clearinghouses, and individual counterparties. Our financial intermediaries and clearinghouse credit exposure relates principally to interest-rate derivative contracts. We maintain internal standards for approving new derivative counterparties, clearing