Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 389

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 389
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ver reviews and considers all relevant information, which may include: 

n    The nature of the related person's interest in the transaction; 

n    The approximate total dollar value of, and extent of the related person's interest in, the transaction;

n    Whether the transaction was or would be undertaken in the ordinary course of business; 

n    Whether the transaction is proposed to be, or was, entered into on terms no less favorable to us than terms that could have been reached with an unrelated third party; and 

n    The purpose, and potential benefits to us, of the transaction.

TRANSACTIONS WITH 5% SHAREHOLDERS

In connection with our entry into conservatorship, we issued the Warrant to Treasury to purchase shares of our common stock equal to 79.9% of the total number of shares of our common stock outstanding, on a fully diluted basis. There have been a number of transactions between us and Treasury since the beginning of 2023, as discussed in MD&A - Consolidated Results of Operations, MD&A - Liquidity and Capital Resources, MD&A - Conservatorship and Related Matters, MD&A - Regulation and Supervision, Note 2, Note 8, and Note 11. FHFA, as Conservator, approved the Purchase Agreement. The remaining transactions described in those sections did not require review and approval under any of our policies and procedures relating to transactions with related persons.

TRANSACTIONS WITH INSTITUTIONS RELATED TO EXECUTIVE OFFICERS

Mr. Lown’s brother, Jeffrey Lown, serves as the CEO and President of Cherry Hill Mortgage Investment Corporation (“Cherry Hill”) and serves as the President and a director of one of Cherry Hill’s subsidiaries, Aurora Financial Group Inc. (“Aurora”). Aurora is a single-family servicer servicing approximately 27,061 loans with a UPB of $6.4 billion as of December 31, 2024. These transactions were conducted in the ordinary course of business and on an arm's-length basis. 

Until November 15, 2024, Mr. Whitlinger’s spouse was an executive officer with NewPoint Real Estate Capital (“NewPoint”), a multifamily loan originator and servicer. We regularly acquire loans originated by NewPoint and we understand that these transactions represent a significant portion of NewPoint’s business. In 2024, we acquired loans from NewPoint totaling approximately $1.3 billion. These transactions were conducted in the