Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 7

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 6
Chunk 7
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Table 6 - (Provision) Benefit for Credit Losses 

Year Over Year ChangeYear Ended December 31,2024 vs. 20232023 vs. 2022(Dollars in millions)202420232022$%$%Single-Family($374)$1,172 ($1,772)($1,546)NM$2,944 NMMultifamily(102)(300)(69)198 66(231)(335)(Provision) benefit for credit losses($476)$872 ($1,841)($1,348)NM$2,713 NM

Key Drivers: 

n    2024 vs. 2023 - The provision for credit losses for 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. 

n    2023 vs. 2022 - The benefit for credit losses for 2023 was primarily driven by a credit reserve release in Single-Family due to improvements in house prices. 

FREDDIE MAC  |  2024 Form 10-K18

Management's Discussion and AnalysisConsolidated Results of Operations 

Non-Interest Expense 

Non-interest expense consists of salaries and employee benefits, professional services, technology, and occupancy, credit enhancement expense and benefit for credit enhancement recoveries, legislative and regulatory assessments, and other expenses we incur to run our business. 

Credit enhancement expense includes the premiums and other costs related to certain CRT transactions that are accounted for as freestanding contracts, primarily STACR and ACIS transactions in Single-Family. Benefit for credit enhancement recoveries primarily represents changes in expected recoveries from those transactions. We recognize expected recoveries from freestanding credit enhancements at the same time that we recognize an allowance for credit losses on the covered loans, measured on the same basis as the allowance for credit losses on the covered loans.

Legislative and regulatory assessments relate to three fees: (1) the legislated guarantee fees on single-family loans that we are required to remit to Treasury, (2) the fee imposed on Freddie Mac's total new business purchases that is allocated to certain affordable housing funds and remitted to Treasury and HUD, and (3) FHFA regulatory assessment. The legislated guarantee fees relate to the 10 bps increase in guarantee fees implemented at the direction of FHFA pursuant to the Temporary Payroll Tax Cut Continuation Act of 2011 as extended by the Infrastructure Investment and Jobs Act of 2021. The affordable