Company: FMCCN
Filing Date: 2025-01-08
Form Type: 8-K
Source: 0001026214-25-000010
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Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-01-08
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events

FHFA and Treasury also entered into a side letter agreement on January 2, 2025 (Side Letter), that sets forth certain procedural steps that FHFA will take before requesting Treasury’s consent to terminate the conservatorship as set forth in Article 5.3 of the Purchase Agreement.

Side Letter

The Side Letter provides that prior to any termination of conservatorship other than by means of receivership, FHFA will issue a public request for information outlining in detail one or more specific options for the termination of conservatorship and seek input on the potential impacts of each option on the housing market and on Freddie Mac and Fannie Mae. Following the public input period, FHFA will brief the Financial Stability Oversight Council on a summary of the public input received, including input about factors related to each option that could have potential impacts on US financial stability.

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Freddie Mac Form 8-K

The Side Letter further provides that no less than six months before FHFA requests Treasury’s consent, FHFA will provide Treasury a specific proposal that:

(a) Sets forth FHFA’s recommended approach to the termination of conservatorship;

(b) Reflects the input received in response to the request for public input described above;

(c) Includes a market impact assessment that describes how the recommended approach may impact the housing market and Freddie Mac; and

(d) Addresses amendments, if any, to the Purchase Agreement and related instruments thereunder, that may be required to implement the recommended approach to the termination of the conservatorship.

The Side Letter also states that Treasury will consult with the President before consenting to any request by FHFA or Freddie Mac pursuant to Article 5.3 of the Purchase Agreement related to a termination of conservatorship.

The description of the Side Letter provided in this report is qualified in its entirety by reference to the full text of the letter, which is filed as Exhibit 99.1 to this report and incorporated herein by reference.

As a result of our previous issuance to Treasury of a warrant to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding, on a fully diluted basis, we are deemed a related party to the U. S. government. For a discussion of our relationship and transactions with Treasury, see our 2023 Annual Report, under the headings “ Introduction - About Freddie Mac - Conservatorship and Government Support for Our Business,” “ MD& A - Conservatorship and Related Matters - Purchase