Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 127

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 127
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129.0 billion, and the amount of available funding remaining under the Purchase Agreement was $140.2 billion, which will be reduced by any future draws.

For additional information on the Purchase Agreement, warrant, and senior preferred stock, see Note 2.

The Purchase Agreement and warrant contain covenants that significantly restrict our business and capital activities. For example, the Purchase Agreement provides that, until the senior preferred stock is repaid or redeemed in full, we may not, without the prior written consent of Treasury: 

FREDDIE MAC  |  2024 Form 10-K95

Management's Discussion and AnalysisConservatorship and Related Matters

n    Pay dividends on our equity securities, other than the senior preferred stock or warrant, or repurchase our equity securities;

n    Issue any additional equity securities, except in limited instances;

n    Exit from conservatorship, except in limited circumstances;

n    Sell, transfer, lease, or otherwise dispose of any assets, other than dispositions for fair market value in the ordinary course of business, consistent with past practices, and in other limited circumstances; and

n    Issue any subordinated debt.

The Purchase Agreement also places limits on our mortgage-related investments portfolio, indebtedness, secondary market activities, and single-family loan acquisitions, as described below. For additional information on the Purchase Agreement covenants, see Note 2, and for related risks, see Risk Factors - Conservatorship and Related Matters.

Limits on Our Mortgage-Related Investments Portfolio and Indebtedness 

Our ability to acquire and sell mortgage assets is significantly constrained by limitations under the Purchase Agreement and other limitations imposed by FHFA:

n    The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum 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 was $123.5 billion as of 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. 

n    With respect to the composition of our mortgage-related investments portfolio, FHFA instructed us to (1) hold no more than $20 billion in Single-Family agency MBS with all dollar caps to be based on UPB and (2) hold no collateralized mortgage obligations (