Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 128

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 128
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CMOs), which are also sometimes referred to as REMICs. We have a holding period limit to sell any new CMO tranches created but not sold at issuance. CMOs do not include tranches initially retained from reperforming loans senior subordinate securitizations.

n    Under the Purchase Agreement, we may not incur indebtedness that would result in the par value of our aggregate indebtedness exceeding 120% of the amount of mortgage assets we are permitted to own on December 31 of the immediately preceding calendar year. Our debt cap under the Purchase Agreement decreased to $270 billion on January 1, 2023 as a result of the decrease in the mortgage assets limit under the Purchase Agreement to $225 billion on December 31, 2022. As of December 31, 2024, our aggregate indebtedness for purposes of the debt cap was $187.7 billion.

n    FHFA has indicated that any portfolio sales should be commercially reasonable transactions that consider impacts to the market, borrowers, and neighborhood stability. 

Our decisions with respect to managing the mortgage-related investments portfolio affect our business segments. In order to achieve all of our portfolio goals, it is possible that we may forgo economic opportunities in one business segment in order to pursue opportunities in the other business segment.

Limits on Our Secondary Market Activities and Single-Family Loan Acquisitions 

The Purchase Agreement restricts our secondary market activities and single-family loan acquisitions:

n    Secondary Market Activities - We cannot vary the pricing or any other term of the acquisition of a single-family loan based on the size, charter type, or volume of business of the seller of the loan and are required to: 

l    Offer to purchase loans for cash consideration and operate this cash window with non-discriminatory pricing and

l    Comply with directives, regulations, restrictions, or other requirements prescribed by FHFA related to equitable secondary market access by community lenders.

n    Single-Family Loan Acquisitions - We are required to limit our acquisition of certain single-family mortgage loans.

l    Subject to such exceptions as FHFA may prescribe to permit us to acquire single-family mortgage loans that are currently eligible for acquisition, we were required to implement a program reasonably designed to ensure that each single-family mortgage is: 

–A qualified mortgage; 

–Expressly exempt from the CFPB’s ability-to-repay requirements; 

–Secured by an investment property; 

–A refinancing with streamlined underwriting for high LTV