Company: FMCCN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001026214-25-000060
Chunk: 15

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 15
Chunk 15
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Management's Discussion and AnalysisRisk Management

The table below contains additional information about the single-family loans we purchased.

Table 15 - Single-Family New Business Activity 1Q 20251Q 2024(Dollars in millions)Amount% of TotalAmount% of Total20- and 30-year, amortizing fixed-rate$72,772 93 %$59,091 95 %15-year or less, amortizing fixed-rate4,434 6 2,278 4 Adjustable-rate440 1 900 1 Total$77,646 100 %$62,269 100 %Percentage of purchasesDTI ratio > 45%30 %28 %Original LTV ratio > 90%23 25 Transaction type:Guarantor swap71 66 Cash window29 34 Property type:Detached single-family houses and townhouses92 91 Condominium or co-op8 9 Occupancy type:Primary residence93 93 Second home2 2 Investment property5 5 Loan purpose:Purchase79 86 Cash-out refinance11 8    Other refinance10 6 

Transferring Credit Risk to Third-Party Investors 

We engage in various credit enhancement arrangements to reduce our credit risk exposure on our single-family loans. 

Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements

The table below provides the UPB of the mortgage loans acquired during the periods presented that were covered by primary mortgage insurance, the UPB of the mortgage loans covered by CRT transactions we entered into during the periods presented, and maximum coverage related to these newly acquired credit enhancements. In recent periods, we have changed our business strategy and revised our CRT transactions by retaining higher levels of initial losses. As a result, the benefits provided by these revised CRT transactions may be lower than those provided by the earlier CRT transactions even if the maximum coverage provided by the more recent CRT transactions is similar to that provided by the earlier CRT transactions.

Table 16 - Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements1Q 20251Q 2024(In millions)UPB(1)(2)Maximum Coverage(3)(4)UPB(1)(2)Maximum Coverage(3)(4)Primary mortgage insurance$29,454 $7,740 $25,135 $6,616 CRT transactions:STACR 37,961 1,296 41,402