Company: FMCCN
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001026214-25-000116
Chunk: 135

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 135
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 125 16,033 

(1)Represents allowance for credit losses on mortgage loans held-for-investment.

(2)Based on amortized cost basis of mortgage loans held-for-investment for which we have not elected the fair value option.

Freddie Mac 3Q 2025 Form 10-Q20

Management's Discussion and AnalysisRisk Management

n 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - The increase in charge-offs was primarily driven by a pool of Multifamily senior housing loans during 3Q 2025.

n September 30, 2025 vs. December 31, 2024 - The balance of non-accrual loans increased 2% primarily driven by the loans in the Multifamily senior housing pool that were placed on non-accrual status and the 1% increase in the balance of non-accrual loans in Single-Family.

Single-Family Mortgage Credit Risk

Maintaining Prudent Eligibility Standards and Quality Control Practices and Managing Seller/Servicer Performance

Loan Purchase Credit Characteristics

We monitor and evaluate market conditions that could affect the credit quality of our single-family loan purchases. Additionally, when managing our new acquisitions, we consider our risk limits and guidance from FHFA and capital requirements under the ERCF. This may affect the volume and characteristics of our loan acquisitions.

The charts below show the credit profile of the single-family loans we purchased.

Weighted Average Original LTV Ratio                                                                                                             Weighted Average Original Credit Score(1)(1)Weighted average original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion).Weighted Average Original DTI Ratio

Freddie Mac 3Q 2025 Form 10-Q21

Management's Discussion and AnalysisRisk Management

The table below contains additional information about the single-family loans we purchased.

Table 15 - Single-Family New Business Activity 3Q 20253Q 2024YTD 2025YTD 2024(Dollars in millions)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of Total20- and 30-year, amortizing fixed-rate$89,478 90 %$93,999 96 %$247,235 91 %$234,609 95 %15-year or less, amortizing fixed-rate7,128 7 3,444