Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 148

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 148
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 affect our liquidity and other aspects of our business.

Operational Risks

n    A failure in our operational systems or infrastructure, or those of third parties, could impair our ability to provide market liquidity, disrupt our business operations, damage our reputation, expose us to legal risk, and cause financial losses.

n    Cybersecurity threats are changing rapidly and advancing in sophistication. We may not be able to protect our systems and networks, or the confidentiality of our confidential or other information (including personal information), from cybersecurity incidents and other unauthorized access, disclosure, and disruption.

n    We rely on third parties, including our sellers and servicers, or their vendors and other business partners, for certain important functions. Any failures by those third parties to deliver products or services, or to manage risks effectively, could disrupt our business operations or servicing of our portfolio, or expose us to other operational risks.

n    We face risks and uncertainties associated with the models that we use to inform business and risk management decisions and for financial accounting and reporting purposes.

n    The use of Artificial Intelligence-based technologies and methods contain inherent risks that may expose us to unexpected losses, damage our reputation, have an adverse impact on our business operations, and violate our legal and regulatory obligations.

n    Natural disasters could adversely affect our business.

n    Legislative, regulatory, or judicial changes or actions could require operational changes that could adversely affect our business activities and financial results.

Legal and Compliance Risks

n    We face risk of non-compliance with our legal and regulatory obligations.

n    We face risk of non-compliance with our contractual and other requirements which may result in legal action, fines, monetary and other penalties, and harm to our reputation that may adversely affect our results of operations and financial condition.

n    Changes in legal requirements or standards through government or judicial action or our contractual obligations may subject us to regulatory investigations, enforcement, or legal actions, and harm to our reputation, and adversely impact our financial results. 

n    We may not achieve our housing goals, Duty to Serve, and equitable housing finance requirements, and we also may make certain changes to our business in an attempt to meet these goals and requirements, both of which may expose us to additional legal and compliance risk, damage our reputation, and adversely affect our business, financial condition, and results of operations.

General Risks

n    Changes in global or domestic economic and political conditions may have an adverse effect on our business. 

Conservator