Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 207

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 207
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 issuable upon exercise of the warrant and certain issuance(s) of common stock after the occurrence of both Treasury's exercise in full of its warrant to acquire 79.9% of our common stock and resolution of currently pending material litigation relating to our conservatorship and the Purchase Agreement);n    Terminate the conservatorship (other than in connection with a mandatory receivership);n    Sell, transfer, lease, or otherwise dispose of any assets, other than dispositions for fair market value:l    To a limited life regulated entity (in the context of a receivership);l    Of assets and properties in the ordinary course of business, consistent with past practice;l    Of assets and properties having fair market value individually or in aggregate less than $250 million in one transaction or a series of related transactions;l    In connection with our liquidation by a receiver; l    Of cash or cash equivalents for cash or cash equivalents; orl    To the extent necessary to comply with the covenant described below relating to the reduction of our mortgage-related investments portfolio.n    Issue any subordinated debt;n    Enter into a corporate reorganization, recapitalization, merger, acquisition, or similar event; orn    Engage in transactions with affiliates unless the transaction is: l    Pursuant to the Purchase Agreement, the senior preferred stock, or the warrant; l    Upon arm's length terms; or l    A transaction undertaken in the ordinary course or pursuant to a contractual obligation or customary employment arrangement in existence on the date of the Purchase Agreement.Effective January 2, 2025, the Purchase Agreement requires us to comply with the ERCF, as amended from time to time. For additional information on the ERCF, see Note 18.The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. Our mortgage-related investments portfolio for purposes of the FHFA and Purchase Agreement caps was $123.5 billion at December 31, 2024, including $22.5 billion representing 10% of the notional amount of the interest-only securities we held as of December 31, 2024. Our ability to acquire and sell mortgage assets continues to be significantly constrained by limitations imposed by the Purchase Agreement and FHFA.With respect to the composition of our mortgage-related investments portfolio, FH