Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 139

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 139
---
 these underserved markets, we are required to establish three-year plans that describe the activities and objectives we will undertake to serve each underserved market. 

Freddie Mac is currently operating under an underserved markets plan for 2025-2027. In 2024, FHFA evaluated Freddie Mac and Fannie Mae’s 2023 Duty to Serve performance under their respective Plans and determined that each Enterprise complied with its Duty to Serve requirements in all three underserved markets. For 2023, FHFA assigned Freddie Mac a rating of Low Satisfactory for its activities in the affordable housing preservation market, a rating of Low Satisfactory for its activities in the manufactured housing market, and a rating of Low Satisfactory for its activities in the rural housing market.

Affordable Housing Fund Allocations

The GSE Act requires us to set aside in each fiscal year an amount equal to 4.2 basis points of each dollar of total new business purchases and pay such amount to certain housing funds. FHFA suspended this requirement when we were placed into conservatorship. However, in December 2014, FHFA terminated the suspension and instructed us to begin setting aside and paying amounts into those funds, subject to any subsequent guidance or instruction from FHFA.

During 2024, we completed $0.4 trillion of new business purchases subject to this requirement and accrued $173 million of related expense, of which $112 million is related to the Housing Trust Fund administered by HUD and $61 million is related to the Capital Magnet Fund administered by Treasury. We are prohibited from passing through the costs of these allocations to the originators of the loans that we purchase.

Equitable Housing Finance Plan

In December 2024, FHFA announced the public release of the Enterprises’ Equitable Housing Finance Plans for 2025-2027. The 2025-2027 plan activities are intended to identify and address barriers experienced by renters, aspiring homeowners, and current homeowners – particularly in traditionally underserved minority communities, including using SPCPs to originate loans. The plan activities are updated annually.

Portfolio Activities

The GSE Act provides FHFA with the power to regulate the size and composition of our mortgage-related investments portfolio. The GSE Act requires FHFA to establish, by regulation, criteria governing portfolio holdings to ensure the holdings are backed by sufficient capital and consistent with our mission and safe and sound operations. FHFA adopted the portfolio holdings criteria established in the Purchase Agreement, as it may be amended from time to time, for so