Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 396

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 396
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Delinquency - A failure to make timely payments of principal and/or interest on a loan. For single-family loans, we generally report delinquency rate information based on the number of loans that are seriously delinquent. We report single-family loans in forbearance as delinquent during the forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance plan. For multifamily loans, we report delinquency rate information based on the UPB of loans that are two monthly payments or more past due or in the process of foreclosure. Loans that have been modified or received forbearance are not counted as delinquent as long as the borrower is performing pursuant to the terms of the modified loan or forbearance agreement. Unless stated otherwise, multifamily delinquency rates presented in this Form 10-K refer to gross delinquency rates before consideration of risk transfers.

n    Derivative - A financial instrument whose value depends upon the characteristics and value of an underlying such as a financial asset or index. Examples of underlyings include security or commodity prices, interest or currency rates, and other financial indices.

n    Director - Director or Acting Director.

n    Dodd-Frank Act - Dodd-Frank Wall Street Reform and Consumer Protection Act.

n    DSCR - Debt Service Coverage Ratio - An indicator of future credit performance for multifamily loans. The DSCR estimates a multifamily borrower's ability to service its mortgage obligation using the secured property's cash flow, after deducting non-mortgage expenses from income. The higher the DSCR, the more likely a multifamily borrower will be able to continue servicing its loan obligation. The original DSCR is used for loan underwriting and assumes monthly payments that reflect amortization of principal. The current DSCR is calculated using the actual debt service payments for the loan.

n    DTI ratio - Debt-to-income ratio. The ratio of borrowers' total monthly debt payments to gross monthly income. DTI ratio is an indicator of the creditworthiness of borrowers, as it measures borrowers' ability to manage monthly payments and repay debts.    

n    Duration - A measure of a financial instrument's price sensitivity to changes in interest rates.

FREDDIE MAC  |  2024 Form 10-K271

Glossary

n    Duration gap - One of our primary interest-rate risk measures. Duration gap is a measure of