Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 63

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 63
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 ratio(1)(2)$675,499 22 %$687,185 23 %Short-term(1)(3)178,179 6 196,608 6 Recently acquired(1)(4)206,274 7 163,789 5 Other(1)(5)129,756 3 131,471 5 Single-Family mortgage portfolio - non-credit-enhanced$1,189,708 38 %$1,179,053 39 %

(1)Loans with multiple characteristics are assigned to categories in this table based on the following prioritization: low original LTV ratio, short-term, and recently acquired.  

(2)Represents loans with an original LTV ratio less than or equal to 60%. 

(3)Represents loans with an original maturity of 20 years or less. 

(4)Represents loans that were recently acquired and have not been included in a reference pool.

(5)Primarily includes ARM loans, loans with an original LTV ratio greater than 97%, loans that fail the delinquency requirements for CRT transactions, and relief refinance loans and loans that were acquired before the inception of our CRT programs in 2013.

Credit Enhancement Recoveries

Our expected recovery receivable from freestanding credit enhancements, net of allowance, was $0.1 billion as of both December 31, 2024 and December 31, 2023. These amounts are included in other assets on our consolidated balance sheets. See Note 3 and Note 6 for additional information on accounting for credit enhancements.

Monitoring Loan Performance and Characteristics

We review loan performance, including delinquency statistics and related loan characteristics, in conjunction with housing market and economic conditions, to assess credit risk when estimating our allowance for credit losses. We review the payment performance of our loans to facilitate early identification of potential problem loans, which could inform our loss mitigation strategies. We also review performance metrics for additional loan characteristics that may expose us to concentrations of credit risk. 

FREDDIE MAC  |  2024 Form 10-K57

Management's Discussion and AnalysisRisk Management

Loan Characteristics 

The table below contains a description of some of the credit characteristics that we monitor for loans in our Single-Family mortgage portfolio.

Credit CharacteristicDescriptionImpact on Credit QualityLTV ratio(1)Loan-to-value ratio. The ratio of the unpaid principal amount of the loan to the value of the property that serves as