Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 187

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 187
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 to regulatory investigations, enforcement, or legal actions, and harm to our reputation and, fines, monetary or other penalties, and other damage to our business and results.

We may not achieve our housing goals, Duty to Serve, and equitable housing finance requirements, and we also may make certain changes to our business in an attempt to meet these goals and requirements, both of which may expose us to additional legal and compliance risk, damage our reputation, and adversely affect our business, financial condition, and results of operations.

If we do not meet our housing goals, duty to serve, or equitable housing finance requirements, and FHFA finds that the goals or requirements were feasible, we may become subject to a housing plan that could require us to take additional steps that could potentially damage our reputation and adversely affect our profitability. While we may achieve these housing goals by meeting or exceeding either the FHFA benchmark level or the market level, these increases to the benchmark levels may require additional changes to our business, and we may not meet these heightened housing goals. If we fail to meet a single-family housing goal and the gap between our performance and the market level for that goal is greater than the measurement buffers provided in the final rule, we may be required to develop a housing plan, requiring additional changes to our business. Further, any changes we make to how we conduct our business in order to achieve our housing goals could create incremental legal and compliance risk. In addition, because we did not meet one of our housing goals for 2020 and FHFA determined that achievement of that goal was feasible, FHFA required us to submit a housing plan that indicates (1) how we plan to meet the missed goal during 2022 to 2024, (2) how we will monitor to ensure that low- and moderate-income borrowers are better served 

FREDDIE MAC  |  2024 Form 10-K125

Risk Factors

in future refinance markets, and (3) what we can do to help low- and moderate-income borrowers who did not refinance in the 2020-2021 refinance market. If we fail to comply with a housing plan that is approved by FHFA, FHFA could take additional action against us.

We may make adjustments to our loan sourcing and purchase strategies in an effort to meet our housing goals and subgoals set by FHFA, including modifying some of our underwriting standards and expanding the use of targeted initiatives to reach underserved populations. For example, we may purchase loans that offer lower expected returns on our