Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 140

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 140
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 long as we remain subject to the Purchase Agreement. See MD&A - Conservatorship and Related Matters - Limits on Our Mortgage-Related 

FREDDIE MAC  |  2024 Form 10-K102

Management's Discussion and AnalysisRegulation and Supervision

Investments Portfolio and Indebtedness for additional information.

Multifamily Tenant Protections

In July 2024, FHFA announced a set of required tenant protections, also known as minimum residential lease standards, for multifamily properties financed by the Enterprises. Covered housing providers will be required to provide tenants with the following:

n    30-day written notice of a rent increase;

n    30-day written notice of a lease's scheduled expiration; and

n    5-day grace period for late rent payments.

Freddie Mac will monitor and enforce these tenant protections, and failure to comply could result in the exercise of remedies under the applicable loan documents.

These protections will apply to properties for which new loan applications are signed on or after the policy effective date, February 28, 2025. Freddie Mac published a detailed description of the tenant protection policy on its website on August 28, 2024.

Quality Control Standards for Automated Valuation Models

In August 2024, six federal regulatory agencies, including FHFA, published a final rule, pursuant to the Dodd-Frank Act, designed to help ensure the credibility and integrity of models used in valuations for certain mortgages secured by a consumer’s principal dwelling. In particular, the rule will implement quality control standards for AVMs used by mortgage originators and secondary market issuers in valuing those homes.

Under the final rule, the agencies will require institutions that engage in certain transactions secured by a consumer’s principal dwelling to adopt policies, practices, procedures, and control systems designed to ensure a high level of confidence in estimates produced by AVMs; protect against data manipulation; seek to avoid conflicts of interest; require random sample testing and reviews; and comply with nondiscrimination laws. The rule takes effect on October 1, 2025.

FICO 10T and VantageScore 4.0

In October 2022, FHFA announced the validation and approval of the FICO 10T and VantageScore 4.0 credit score models for use by Freddie Mac and Fannie Mae, as well as the transition to a bi-merge credit reporting requirement. Under a bi-merge approach, lenders may obtain credit reports from two, rather than three, of the national