Company: FMCCN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001026214-25-000060
Chunk: 117

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 117
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 4 Adjustable-rate440 1 900 1 Total$77,646 100 %$62,269 100 %Percentage of purchasesDTI ratio > 45%30 %28 %Original LTV ratio > 90%23 25 Transaction type:Guarantor swap71 66 Cash window29 34 Property type:Detached single-family houses and townhouses92 91 Condominium or co-op8 9 Occupancy type:Primary residence93 93 Second home2 2 Investment property5 5 Loan purpose:Purchase79 86 Cash-out refinance11 8    Other refinance10 6 

Transferring Credit Risk to Third-Party Investors 

We engage in various credit enhancement arrangements to reduce our credit risk exposure on our single-family loans. 

Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements

The table below provides the UPB of the mortgage loans acquired during the periods presented that were covered by primary mortgage insurance, the UPB of the mortgage loans covered by CRT transactions we entered into during the periods presented, and maximum coverage related to these newly acquired credit enhancements. In recent periods, we have changed our business strategy and revised our CRT transactions by retaining higher levels of initial losses. As a result, the benefits provided by these revised CRT transactions may be lower than those provided by the earlier CRT transactions even if the maximum coverage provided by the more recent CRT transactions is similar to that provided by the earlier CRT transactions.

Table 16 - Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements1Q 20251Q 2024(In millions)UPB(1)(2)Maximum Coverage(3)(4)UPB(1)(2)Maximum Coverage(3)(4)Primary mortgage insurance$29,454 $7,740 $25,135 $6,616 CRT transactions:STACR 37,961 1,296 41,402 1,284 ACIS24,238 783 15,523 559 Other885 158 692 107 Total CRT issuance$63,084 $2,237 $57,617 $1,950 

Freddie Mac 1Q 2025 Form 10-Q21

Management's Discussion and AnalysisRisk Management

(1)    Represents the UPB of the mortgage assets, reference pool, or securitization trust, as