Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 120

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 120
---
 End Date, see MD&A - Conservatorship and Related Matters, Note 2, and Note 11.

FREDDIE MAC  |  2024 Form 10-K90

Management's Discussion and AnalysisLiquidity and Capital Resources 

The table below presents activity related to our net worth.

Table 52 - Net Worth Activity Year Ended December 31,(In millions)202420232022Beginning balance, January 1$47,722 $37,018 $28,033 Comprehensive income11,853 10,704 8,985 Capital draws from Treasury— — — Senior preferred stock dividends declared— — — Total equity / net worth$59,575 $47,722 $37,018 Remaining Treasury funding commitment$140,162 $140,162 $140,162 Aggregate draws under Purchase Agreement71,648 71,648 71,648 Aggregate cash dividends paid to Treasury119,680 119,680 119,680 Liquidation preference of the senior preferred stock129,038 117,309 107,878 

ERCF 

FHFA established the ERCF as a new enterprise regulatory capital framework for Freddie Mac and Fannie Mae in December 2020. FHFA published a final rule in November 2023 amending several provisions of the ERCF, with most of the amendments becoming effective in April 2024. Our current capital levels are significantly below the levels that would be required under the ERCF. The ERCF has a transition period for compliance, and we are not required to comply with the regulatory capital requirements or the buffer requirements while in conservatorship. In general, the compliance date for the regulatory capital requirements will be the later of the date of termination of our conservatorship and any later compliance date provided in a transition order, and the compliance date for buffer requirements in the ERCF will be the date of termination of our conservatorship.  With respect to the ERCF’s advanced approaches requirements, the compliance date is January 1, 2028 or any later compliance date specified by FHFA.

The ERCF establishes risk-based and leverage capital requirements and includes capital requirements relating to the amount and form of the capital we hold, based largely on definitions of capital used in U.S. banking regulators' regulatory capital framework. The ERCF capital requirements contain both statutory capital elements (total capital and core capital) and regulatory capital elements (CET1 capital, Tier