Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 147

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 147
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 to do so may impact the credit quality of the loans we purchase.

n    Mortgage fraud and other financial crimes could result in significant financial losses and harm to our reputation.

n    Declines in national or regional house prices, other adverse changes in the housing market, declines in the value of Multifamily properties, deterioration of property conditions, or adverse macroeconomic conditions, could negatively affect our Single-Family and Multifamily businesses.

n    We are exposed to counterparty credit risk with respect to our business counterparties. Our financial results may be adversely affected if one or more of our counterparties fail to meet their contractual obligations to us.

n    Our loss mitigation activities may be unsuccessful or costly and may adversely affect our financial results.

n    We have been, and continue to be, adversely affected by deficiencies and delays in the single-family and multifamily foreclosure process.

n    We are exposed to increased credit losses and credit-related expenses in the event of a natural disaster or catastrophic event.

n    New issuance market for our CRT transactions may not be available to us in adverse economic conditions. These transactions also increase our expenses.

Market Risks

n    Changes in interest rates could negatively affect the fair value of our financial assets and liabilities, results of operations, and net worth.

n    Changes in market spreads could negatively affect the fair value of our financial assets and liabilities, results of operations, and net worth.

n    A significant decline in the price performance of, or demand for, our UMBS could have an adverse effect on the volume and/or profitability of our Single-Family business activity.

n    If the UMBS does not continue to receive widespread market acceptance, the liquidity and price performance of our Single-Family mortgage-related securities and our market share and profitability could be adversely affected. 

n    Commingling certain Fannie Mae securities in resecuritizations has increased our counterparty risk.

n    The profitability of our Multifamily business could be adversely affected by market competition and/or decreased investor demand for our securities.

FREDDIE MAC  |  2024 Form 10-K107

Risk Factors

Liquidity Risks

n    Our activities may be adversely affected if funding is limited or unavailable, or if the cost is increased.

n    Any downgrade in the credit ratings of the U.S. government would likely be followed by a downgrade in our credit ratings. A downgrade in the credit ratings of our debt could adversely