Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 74

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 74
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 is typically higher than the collateral deficiency when these items are included.

The table below presents Single-Family collateral deficiency ratios for REO dispositions and third-party foreclosure sales. We did not have a significant number of short sales in 2024.

Table 32 - Single-Family Collateral Deficiency RatiosYear Ended December 31,202420232022REO dispositions and third-party foreclosure sales(1)(1.8)%(5.2)%(5.5)%

(1)Negative ratios indicate that the amount of sales proceeds from disposition of the properties, net of capitalized repair and selling expenses, exceeded the UPB of the related loan.

FREDDIE MAC  |  2024 Form 10-K64

Management's Discussion and AnalysisRisk Management

REO Property Status

A significant portion of our REO portfolio is unable to be marketed at any given time because the properties are occupied, involved in legal matters (e.g., bankruptcy or other litigation), or subject to a redemption period, which is a post-foreclosure period during which borrowers may reclaim a foreclosed property. Redemption periods increase the average holding period of our inventory by 10% or more. As of December 31, 2024, approximately 28% of our REO properties were unable to be marketed because the properties were occupied, located in states with a redemption period, or subject to other legal matters. Another 35% of the properties were being prepared for sale (i.e., valued, marketing strategies determined, and repaired). As of December 31, 2024, approximately 28% of our REO properties were listed and available for sale, and 9% of our inventory was pending the settlement of sales. Though it varied significantly by state, the average holding period of our single-family REO properties, excluding any redemption period, was 345 days and 328 days for our REO dispositions during 2024 and 2023, respectively.

Multifamily Mortgage Credit Risk

We manage our exposure to multifamily mortgage credit risk, which is a type of commercial real estate credit risk, using the following principal strategies:

n    Completing our own underwriting, credit and legal review for new business activity;

n    Transferring credit risk to third-party investors; and

n    Managing our portfolio, including loss mitigation activities.

Completing Our Own Underwriting, Credit, and Legal Review for New Business Activity

We use a prior approval underwriting approach for multifamily loans,