Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 143

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 143
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Consumer Financial Protection Bureau

The CFPB regulates consumer financial products and services. The CFPB has adopted a number of final rules relating to loan origination, finance, and servicing practices. These rules include an ability-to-repay rule, which requires loan originators to make a reasonable and good faith determination that a borrower has a reasonable ability to repay the loan according to its terms. This rule provides certain protection from liability for originators making loans that satisfy the definition of a qualified mortgage. The ability-to-repay rule applies to most loans acquired by Freddie Mac, and for loans covered by the rule, FHFA has directed us to limit our single-family acquisitions to those that generally would constitute qualified mortgages under that rule. CFPB or FHFA may impose fines for noncompliance with these requirements. 

Securities and Exchange Commission

We are subject to the reporting requirements applicable to registrants under the Exchange Act, including the requirement to file with the SEC annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Although our common stock is required to be registered under the Exchange Act, we continue to be exempt from certain federal securities law requirements, including the following:

n    Securities we issue or guarantee are "exempted securities" and may be sold without registration under the Securities Act of 1933;

n    We are excluded from the definitions of "government securities broker" and "government securities dealer" under the Exchange Act;

n    The Trust Indenture Act of 1939 does not apply to securities issued by us; and

n    We are exempt from the Investment Company Act of 1940 and the Investment Advisers Act of 1940, as we are an "agency, authority, or instrumentality" of the U.S. for purposes of such Acts.

FREDDIE MAC  |  2024 Form 10-K104

Management's Discussion and AnalysisRegulation and Supervision

Final Rule Regarding Conflicts of Interest in Securitizations 

In November 2023, the SEC adopted a final rule that generally would prohibit “securitization participants” (e.g., underwriters or sponsors) from, directly or indirectly, engaging in any transaction that would involve or result in any material conflict of interest between the securitization participant and an investor in the asset-backed security (ABS) during a specified period of time. The rule provides exceptions for certain: (1) risk