Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 9

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 9
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Table 7 - Components of Non-Interest ExpenseYear Over Year ChangeYear Ended December 31,2024 vs. 20232023 vs. 2022(Dollars in millions)202420232022$%$%Salaries and employee benefits($1,677)($1,606)($1,509)($71)(4)%($97)(6)%Professional services, technology, and occupancy(1,166)(1,189)(1,079)23 2(110)(10)Credit enhancement expense(2,345)(2,339)(2,118)(6)—(221)(10)Benefit for (decrease in) credit enhancement recoveries(36)(189)236 153 81(425)NMLegislative and regulatory assessments:Legislated guarantee fees expense(2,923)(2,856)(2,751)(67)(2)(105)(4)Affordable housing funds allocation(173)(146)(258)(27)(18)112 43Regulatory assessment(137)(129)(122)(8)(6)(7)(6)Total legislative and regulatory assessments (3,233)(3,131)(3,131)(102)(3)— —Other expense(201)(448)(218)247 55(230)(106)Non-interest expense($8,658)($8,902)($7,819)$244 3%($1,083)(14)%

Key Drivers: 

n    Credit enhancement expense 

l    2023 vs. 2022 - Increased primarily due to a higher volume of outstanding cumulative CRT transactions and higher losses on STACR Trust note repurchases.

n    Benefit for (decrease in) credit enhancement recoveries

l    2024 vs. 2023 and 2023 vs. 2022 - Decreased primarily due to a decrease in expected credit losses on covered loans.

n    Other expense

l    2023 vs. 2022 - Increased primarily due to a $313 million expense accrual for an adverse judgment at trial in 2023. See Note 17 for additional information regarding our legal proceedings.

FREDDIE MAC  |  2024 Form 10-K19