Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 87

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 87
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 conditions. Monitoring performance and potentially identifying underperformance allows us to plan for loss mitigation. If our credit enhancement providers fail to meet their obligations to reimburse us for claims, we could experience an increase in credit losses.

Primary Mortgage Insurers

We currently cannot differentiate pricing for primary mortgage insurers based on counterparty strength or revoke a primary mortgage insurer's status as an eligible insurer without FHFA approval. Further, we generally do not select the insurance provider on a specific loan, because the selection is made by the lender at the time the loan is originated. Accordingly, we are limited in our ability to manage our concentration risk with respect to primary mortgage insurers. Although the financial condition of our mortgage insurers improved in recent years, there is still a risk that some of these counterparties may fail to fully meet their obligations under a stress economic scenario because they are monoline entities primarily exposed to mortgage credit risk. We continue to acquire new loans with mortgage insurance from the mortgage insurers shown in the table below. For additional information about counterparty credit risk associated with mortgage insurers, see Note 15.

The table below summarizes our exposure to single-family mortgage insurers as of December 31, 2024. In the event a mortgage insurer fails to perform, the coverage amounts represent our maximum exposure to credit losses resulting from such a failure.

Table 39 - Single-Family Primary Mortgage InsurersDecember 31, 2024December 31, 2023(In millions)UPB Coverage(1)UPB Coverage(1)Radian Guaranty Inc. (Radian)$116,412 $30,308 $112,487 $28,728 Mortgage Guaranty Insurance Corporation (MGIC)115,146 30,792 112,184 29,495 Essent Guaranty, Inc.110,180 29,982 104,847 27,880 Arch Mortgage Insurance Company109,869 29,086 111,412 29,061 Enact107,583 28,013 103,495 26,400 National Mortgage Insurance (NMI)96,762 25,770 90,176 23,603 Others2,152 494 2,436 571 Total$658,104 $174,445 $637,037 $165,738 

(1)Coverage amounts exclude coverage primarily related to certain loans for which we do not control servicing, and may include coverage provided by consolidated affiliates and subsidiaries of the