Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 186

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 186
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. These contracts expose us to the risk that we could fail to perform our obligations in a satisfactory manner and that a contractual counterparty could commence legal proceedings against us for deficiencies related to our performance. Additionally, an investor in any of our securities could claim our securitization or unsecured debt offering documents contained materially false or misleading statements. For additional information on our litigation, see Note 17. If we were not to comply with our contractual and other obligations, this could result in legal action, fines, monetary and other penalties, and harm to our reputation that may adversely affect our results of operations and financial condition.  

Changes in legal requirements or standards through government or judicial action or our contractual obligations may subject us to regulatory investigations, enforcement, or legal actions, and harm to our reputation, and adversely impact our financial results.

We are currently and will likely continue to be subject to a variety of complex and evolving laws, regulations, rules, and standards in the United States (at the federal, state, and local levels), as well as contractual obligations. For example, we are currently subject to fair lending requirements such as the Fair Housing Act, Equal Credit Opportunity Act, and similar laws and regulations. Fair lending, housing affordability, housing equity, and climate change were a focus of the previous Administration. The current Administration may change these focuses or interpret our legal obligations in a different way.

As an additional example, privacy and cybersecurity are currently areas of considerable legislative and regulatory attention, with new or modified laws, regulations, rules, and standards being frequently adopted and potentially subject to divergent interpretation or application from jurisdiction to jurisdiction in a manner that may create inconsistent or conflicting requirements for businesses. The uncertainty and compliance risk created by these legislative and regulatory developments are compounded by the rapid pace of technology development in disciplines that may impact the use or security of data, and in particular the use or security of personal information, such as Artificial Intelligence-based technologies and methods and advancements in the field of data science. Privacy and cybersecurity laws and regulations often impose strict requirements regarding the collection, storage, handling use, disclosure, transfer, security, and other processing of personal information, which may have adverse consequences on our business, including incurring significant compliance costs, requiring changes to our business or operations, and imposing severe penalties for non-compliance. Further, we could face scrutiny and adverse legal and regulatory action for any failure or perceived failure to comply with our public privacy policies and other public statements about our privacy and cybersecurity program. Failure to comply with our legal requirements and standards could potentially subject us