Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 228

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 228
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 of principal and interest is not received within one month of its due date. We charge off outstanding accrued interest receivable through interest income when loans are placed on non-accrual status and recognize interest income on a cash basis while a loan is on non-accrual status.

FREDDIE MAC  |  2024 Form 10-K152

Financial StatementsNotes to Consolidated Financial Statements | Note 4

Cost basis adjustments on held-for-investment loans are amortized into interest income over the contractual life of the loan using the effective interest method. No amortization is recognized during periods in which a loan is on non-accrual status.A non-accrual loan is returned to accrual status when the collectability of principal and interest in full is reasonably assured. For single-family loans, we generally determine that collectability is reasonably assured when the loan returns to current payment status. For multifamily loans, the collectability of principal and interest is considered reasonably assured based on an analysis of the factors specific to the loan being assessed. Upon a loan's return to accrual status, all previously reversed interest income is recognized and amortization of any basis adjustments into interest income is resumed.

The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the period end.Table 4.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual(1) Non-Accrual Amortized Cost BasisInterest Income Recognized(2)(In millions)December 31, 2024December 31, 2023Year Ended December 31, 2024Single-Family:20- and 30-year or more, amortizing fixed-rate$15,157 $12,682 $307 15-year or less, amortizing fixed-rate511 519 8 Adjustable-rate and other240 257 5 Total Single-Family15,908 13,458 320 Total Multifamily125 64 3 Total Single-Family and Multifamily$16,033 $13,522 $323 Non-Accrual Amortized Cost BasisInterest Income Recognized(2)(In millions)December 31, 2023December 31, 2022Year Ended December 31, 2023Single