Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 55

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 55
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Total Single-Family94,377 403,059 1,099,918 1,465,857 3,063,211 Multifamily:  Fixed-rate1,104 33,771 41,520 3,607 80,002   Adjustable-rate1,184 2,550 3,680 — 7,414 Total Multifamily2,288 36,321 45,200 3,607 87,416 Cost basis and fair value adjustments, net28,476 Total(1)$3,179,103 

(1)Includes $2.4 billion multifamily held-for-investment loans for which we have elected the fair value option as of December 31, 2024.

Single-Family Mortgage Credit Risk

We manage our exposure to Single-Family mortgage credit risk, which is a type of consumer credit risk, using the following principal strategies:

n    Maintaining prudent eligibility standards and quality control practices and managing seller/servicer performance;

n    Transferring credit risk to third-party investors;

n    Monitoring loan performance and characteristics;

n    Engaging in loss mitigation activities; and

n    Managing foreclosure and REO activities.

Maintaining Prudent Eligibility Standards and Quality Control Practices and Managing Seller/Servicer Performance 

We employ multiple strategies to maintain loan quality:

n    Our eligibility requirements are set forth in our underwriting standards, which are published in our Guide and incorporated in Freddie Mac Loan Advisor®. These underwriting standards establish the requirements our sellers apply when originating loans in compliance with representations and warranties to us;

n    Loan quality control practices, including post-closing review and our remedy management repurchase process, help to validate that the loan origination process is acceptable to us; and

n    Seller/servicer management, including review of their in-house quality control as well as our loan performance monitoring, helps to maintain quality control for loans sold and/or serviced by third parties.

Underwriting Standards 

We use a delegated underwriting process in connection with our acquisition of single-family loans whereby we set eligibility and underwriting standards, and sellers represent and warrant to us that loans they sell to us meet these standards. Our eligibility and underwriting standards are used to assess loans based on a number of characteristics. 

We establish more strict eligibility standards for loans with certain higher risk characteristics. These standards are designed to balance our credit risk exposure while supporting affordable