Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 69

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 69
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, such as loans with both higher LTV ratios and lower credit scores.

Geographic Concentrations

We purchase mortgage loans from across the U.S. but do not purchase an equal number of loans from each state, leading to concentrations of credit risk in certain geographic areas. Local economic and other conditions can affect the borrower's ability to repay and the value of the underlying collateral. Property insurance markets in certain geographic areas, including areas with high risk of natural disaster events, have observed rapid increases in property insurance premiums and reduction in the availability of coverage in recent years. In addition, certain states and municipalities have passed or may pass laws that limit our ability to foreclose or evict and make it more difficult and costly to manage our risk.

See MD&A - Risk Management - Credit Risk - Natural Disaster and Climate-Related Risk Management for additional information about the impact of natural disaster events on our Single-Family mortgage portfolio and Note 15 for additional information about the geographic distribution of our Single-Family mortgage portfolio.

Delinquency Rates

We report Single-Family delinquency rates based on the number of loans in our Single-Family mortgage portfolio that are past due as reported to us by our servicers as a percentage of the total number of loans in our Single-Family mortgage portfolio. 

The chart below shows the delinquency rates of mortgage loans in our Single-Family mortgage portfolio.

FREDDIE MAC  |  2024 Form 10-K61

Management's Discussion and AnalysisRisk Management

Single-Family Delinquency Rates 

The percentage of loans that were one month past due stayed flat as of December 31, 2024 compared to December 31, 2023 while the percentage of loans that were two months past due increased as of December 31, 2024 compared to December 31, 2023. The percentage of loans one month past due can be volatile due to seasonality, whether the last day of the period falls on a weekend, and other factors that may not be indicative of default. As a result, the percentage of loans two months past due tends to be a better early performance indicator than the percentage of loans one month past due.

Our Single-Family serious delinquency rate has increased to 0.59% as of December 31, 2024, compared to 0.55% as of December 31, 2023, primarily due to the recent hurricanes. We have historically observed temporary increases in delinquency rates following such events. See Note 4