Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 85

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 85
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 Management

These institutions may not have the same financial strength or operational capacity, or be subject to the same level of regulatory oversight, as large depository institutions. We monitor and review the financial stability of our non-depository counterparties. However, if these counterparties experience financial difficulty, we could see a decline in mortgage servicing quality and/or be less likely to recover losses. In 2025, we expect the risk from non-depository counterparties to remain elevated, and possibly increase, due to continuing difficult operating conditions. 

The table below summarizes the concentration of our Single-Family mortgage purchases acquired from non-depository sellers.

Table 37 - Single-Family Mortgage Purchases from Non-Depository Sellers20242023% of Purchases% of PurchasesTop five non-depository sellers42 %41 %Other non-depository sellers36 32 Total78 %73 %

The table below summarizes the concentration of non-depository servicers of our Single-Family mortgage portfolio.

Table 38 - Single-Family Mortgage Portfolio Non-Depository ServicersDecember 31, 2024December 31, 2023% of Portfolio(1)% of Seriously Delinquent Single-Family Loans% of Portfolio(1)% of Seriously Delinquent Single-Family LoansTop five non-depository servicers29 %21 %25 %22 %Other non-depository servicers31 52 32 45 Total60 %73 %57 %67 %

(1)     Excludes loans for which we do not exercise control over the associated servicing.

Multifamily Sellers and Servicers

We acquire a significant portion of our multifamily loan purchase volume from several large lenders, and a large percentage of our loans are also serviced by several large servicers. We are exposed to the risk that multifamily sellers and servicers could come under financial stress, which could potentially cause degradation in the quality of the servicing they provide us, including their monitoring of each property's financial performance and physical condition. This could also, in certain cases, reduce the likelihood that we could recover losses through lender repurchases, recourse agreements, or other credit enhancements, where applicable. This risk primarily relates to multifamily loans that we hold on our consolidated balance sheets where we retain all of the related credit risk.

The majority of our multifamily loans are securitized using trusts that are administered by master servicers who bear responsibility to advance funds in the event of payment shortfalls, including principal and