Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 122

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 122
---
 limitations on capital distributions 

FREDDIE MAC  |  2024 Form 10-K91

Management's Discussion and AnalysisLiquidity and Capital Resources 

and discretionary bonus payments tied to executive compensation, we also must maintain Tier 1 capital that exceeds the leverage capital requirements by at least the amount of the PLBA. The PLBA is equal to 50% of our stability capital buffer. 

Oversight, Governance, and Reporting

Our capital management is governed by policies, standards, and procedures. The Capital Committee, composed primarily of executive officers across the various divisions (including the CFO, CRO, and heads of business), provides governance across overall capital management. In addition, ERM and Internal Audit conduct independent assessments of capital management and implementation. These assessments are intended to help ensure that our capital execution, assessment, and monitoring are consistent and in compliance with the ERCF.    

Under the ERCF, we are required to submit quarterly ERCF capital reports to FHFA. These requirements include quarterly quantitative information to support the ERCF capital amount and ratio calculations and the underlying enterprise risk weighting calculations. We are also required to publish quarterly ERCF public disclosures and submit an annual capital plan to FHFA. Pursuant to an FHFA rule on stress testing of regulated entities, we are required to conduct annual stress tests using scenarios specified by FHFA to determine whether we have sufficient capital to absorb losses as a result of adverse economic conditions. Under the rule, we must publicly disclose the results of the stress test under the "severely adverse" scenario. See MD&A - Regulation and Supervision - Capital Standards and Public Disclosures for additional information on the ERCF including our reporting requirements.

Capital Metrics

The table below presents the components of our regulatory capital.

Table 53 - Regulatory Capital Components 

(In millions)December 31, 2024December 31, 2023Total equity$59,575 $47,722 Less:Senior preferred stock72,648 72,648 Preferred stock14,109 14,109 Common equity(27,182)(39,035)Less: deferred tax assets arising from temporary differences that exceed 10% of CET1 capital and other regulatory adjustments5,123 4,108 Common equity Tier 1 capital(32,305)(43,143)Add: Preferred stock14,109 14,109 Tier 1 capital(18,196)(29,034)Tier 2 capital adjustments— — Adjusted total capital($18