Company: FMCCN
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001026214-25-000086
Chunk: 26

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 15
Chunk 26
---
 is otherwise not readily available to us. Other includes repayment plans and foreclosure alternatives.

Completed loan workout activity includes forbearance plans where borrowers fully reinstated the loan to current status during or at the end of the forbearance period, payment deferral plans, loan modifications, successfully completed repayment plans, short sales, and deeds in lieu of foreclosure. Completed loan workout activity excludes active loss mitigation activity that was ongoing and had not been completed as of the end of the period, such as forbearance plans that had been initiated but not completed and trial period modifications. There were approximately 16,000 loans in active forbearance plans and approximately 18,000 loans in other active loss mitigation activity as of June 30, 2025.

Multifamily Mortgage Credit Risk

Completing Our Own Underwriting, Credit, and Legal Review for New Business Activity 

Our underwriting standards focus on the LTV ratio and DSCR, which estimates the value of the collateral and a borrower's ability to repay the loan using the secured property's cash flows, after expenses. The charts below provide the weighted average original LTV ratio and original DSCR for our new business activity. 

Freddie Mac 2Q 2025 Form 10-Q27

Management's Discussion and AnalysisRisk Management

Weighted Average Original LTV Ratio                                                                                                                       Weighted Average Original DSCR(1) (1)   Assumes monthly payments that reflect amortization of principal.

Transferring Credit Risk to Third-Party Investors

We engage in a variety of CRT activities which transfer credit risk on the Multifamily mortgage portfolio, thereby reducing our overall credit risk exposure and required capital.

Multifamily Mortgage Portfolio CRT Issuance

We obtain credit enhancement through subordination, as well as our MSCR and MCIP transactions. We generally retain first loss exposure in MSCR and MCIP transactions.

The table below provides the UPB of the multifamily mortgage loans covered by CRT transactions issued during the periods presented as well as the maximum coverage provided by those transactions. 

Table 22 - Multifamily Mortgage Portfolio CRT Issuance2Q 20252Q 2024YTD 2025YTD 2024(In millions)UPB(1)Maximum Coverage(2)(3)UPB(1)Maximum Coverage(2)(3)UPB(1)Maximum Coverage(2)(3)UPB(1)Maximum Coverage(2)(3)Subordination$8,247 $540 $6,462 $360