Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 184

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 184
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 in reducing our operational risk or increasing our operational efficiencies or otherwise result in our intended outcomes. Artificial Intelligence-based technologies and methods and the use thereof are also subject to a variety of existing laws and regulations, including fair lending, consumer protection, intellectual property, privacy, equal opportunity, and are expected to be subject to new laws and regulations or new applications of existing laws and regulations. It is possible that we will not be able to anticipate how to respond to these rapidly developing laws and regulations. If we do not have sufficient rights to use the data or other material or content on which our Artificial Intelligence-based technologies and methods or other Artificial Intelligence-based technologies and methods tools we use rely, we also may incur liability through the violation of applicable laws and regulations, such as fair lending laws and regulations, third-party intellectual property, privacy or other rights, or contracts to which we are a party. We may not be able to sufficiently mitigate or detect any of the foregoing limitations or risks given the lack of experience with using Artificial Intelligence-based technologies and methods in our business, the pace of technological change, and rapid adoption of Artificial Intelligence-based technologies and methods by our business partners and competitors. This exposes us to potential damage to our reputation, adverse impacts on our business operations, and violation of legal and regulatory obligations.

Natural disasters could adversely affect our business.

Natural disasters may affect housing affordability, property values, and the terms and conditions of mortgages available for purchase. Legislative or public policy changes and changes in consumer sentiment due to natural disasters and the response thereto could negatively impact the businesses and financial condition of both our customers and seller/servicers, which may decrease revenues from those counterparties and increase credit risk associated with loans and other credit exposures to those counterparties. In connection with any potential transition to a lower-carbon economy, legislative or public policy changes and changes in consumer sentiment could negatively impact the businesses and financial condition of both our customers and seller/servicers, which may decrease revenues from those counterparties and increase credit risk associated with loans and other credit exposures to those counterparties. Additionally, governmental and supervisory focus on natural disasters could result in our becoming subject to new, heightened, or potentially inconsistent regulatory requirements related to operational resiliency, climate risk disclosure, or stress testing for various climate stress scenarios. Any such requirements could result in increased regulatory, compliance, or other costs or higher capital requirements. For additional information on our climate-related risks, see Risk Factors - Credit Risks – We are exposed to increased credit losses and credit-related expenses in the event of a natural