Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 226

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 226
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 with subsequent changes in this valuation allowance also being recorded in investment gains, net. Premiums, discounts, and other cost basis adjustments (including lower-of-cost-or-fair-value adjustments) are deferred and not amortized. We elect the fair value option for certain multifamily loans. Loans for which we have elected the fair value option are measured at fair value on a recurring basis, with subsequent gains or losses related to changes in fair value reported in investment gains, net on our consolidated statements of income. All fees, upfront costs, and other cost basis adjustments are recognized in earnings as incurred.Cash flows related to loans originally classified as held-for-investment are classified as either investing activities (e.g., principal repayments) or operating activities (e.g., interest payments received from borrowers included within net income) on our consolidated statements of cash flows. Cash flows related to loans originally classified as held-for-sale are classified as operating activities on our consolidated statements of cash flows.

FREDDIE MAC  |  2024 Form 10-K151

Financial StatementsNotes to Consolidated Financial Statements | Note 4

The table below provides details of the UPB of loans we purchased and sold during the periods presented.Table 4.2 - Loans Purchased and SoldYear Ended December 31,(In millions) 202420232022Single-Family:Purchases:  Held-for-investment loans$346,408 $299,886 $540,472 Sales of held-for-sale loans(1)2,072 1,253 2,211 Multifamily:Purchases:  Held-for-investment loans30,003 16,814 25,052   Held-for-sale loans31,712 29,415 44,997 Sales of held-for-sale loans(2)27,883 34,034 50,280 (1)Our sales of single-family loans reflect the sale of single-family seasoned loans. (2)Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates. 

ReclassificationsWe reclassify loans from held-for-investment to held-for-sale depending on our intent and ability to hold the loan for the foreseeable future. Upon reclassification from held-for-investment to held-for-sale, we perform a collectability assessment. When we determine that a loan to be reclassified has experienced more-than-insignificant deterioration in credit quality since origination, the excess of the loan’s amortized cost basis over its fair