CHARTER OF THE RISK COMMITTEE

OF THE BOARD OF DIRECTORS

OF THE

FEDERAL HOME LOAN MORTGAGE CORPORATION

Effective January 26, 2023

Organization, Membership Requirements and Committee Processes

The Risk Committee (the “Committee”) of the Board of Directors (the “Board”) of the Federal

Home Loan Mortgage Corporation (“Freddie Mac”) shall consist of at least three members

appointed by the Board, following notice to the Federal Housing Finance Agency, as

Conservator of Freddie Mac (the “Conservator”). One member of the Committee shall be

designated by the Board as the Chair of the Committee, and such Chair shall be independent 

under the standards set forth in Freddie Mac’s Corporate Governance Guidelines (the 

“Guidelines”) (which includes not serving in a management capacity at Freddie Mac). In

addition, at least one member of the Committee shall have experience in identifying,

assessing and managing risk exposures of large financial firms and each Committee member

shall have a practical understanding of risk management principles and practices relevant to

Freddie Mac (or acquire such understanding within a reasonable time after being elected to

the Committee).

The Committee Chair shall report regularly to the Board on the Committee’s activities and

minutes of the Committee’s meetings shall be submitted to the Board.

The members of the Committee shall have access to any employee of Freddie Mac. The

Committee may engage such outside consultants or advisors including, but not limited to,

financial advisors, legal counsel and management consultants, as it may deem appropriate to

fulfill its responsibilities. The engagement of such consultants and advisors shall be subject to

the approval of the Committee and the Conservator, to the extent set forth in the section

below titled “Conservator Approval.” Freddie Mac shall provide appropriate funding for the

retention of any such consultants or advisors and for other necessary and appropriate

administrative expenses of the Committee, all as determined by the Committee.

The Chair of the Committee will collaborate with the Chairs of any of the other Board

committees when necessary or desirable to facilitate each of the Board committees in

fulfilling their respective responsibilities. The Committee may meet in joint session with any

other Board committee to discuss matters that are pertinent to both Committees.

To the extent consistent with applicable laws, regulations, stock exchange listing standards

and conservatorship orders or directives, the Committee responsibilities listed below may, in

the alternative, be satisfied by actions of the full Board or by another Board committee acting

at the direction of the Board or the Board's Chair.
Risk Committee Charter

January 26, 2023

Page 2

Purpose, Powers, Duties and Responsibilities of the Committee

The Committee is hereby charged by the Board with the authority and responsibilities set forth

below.

1. Risk Oversight: The Committee shall assist the Board in its oversight, on an

enterprise- wide basis, of Freddie Mac’s risk management framework, including as it

relates to management of credit risk, market risk, liquidity risk, operational risk,

compliance risk, climate risk, and strategic risk, by:

(a) (i) At least annually reviewing and recommending to the Board for approval 

Freddie Mac’s enterprise risk policy and Board risk appetite statements, metrics and

limits, (ii) overseeing management’s adherence to Board risk limits, and (iii)

approving any exceptions thereto with notice to the Board;

(b) Reviewing significant (i) enterprise risk exposures, (ii) risk management strategies, 

(iii) results of risk management reviews and assessments, and (iv) emerging risks;

(c) Reviewing Freddie Mac’s exposure to the potential negative impacts of climate

change, and overseeing the development and implementation of Freddie 

Mac’s climate risk framework;

(d) Reviewing capabilities for and adequacy of resources allocated to enterprise

risk management;

(e) Reviewing reports on significant regulatory requirements relating to enterprise risk

management and regulatory assessments thereof, including stress testing results,

and approving any matter as may be required by regulation or guidance; and

(f) Reviewing changes to business practices or new business initiatives that may

significantly impact the enterprise risk profile, the achievement of Freddie Mac’s 

business strategy or the ability to operate within the Board risk appetite.

Freddie Mac’s Chief Risk Officer shall report to the Chief Executive Officer and

independently to the Committee. The Committee shall approve all decisions regarding

the appointment or removal of the Chief Risk Officer.

2. Committee Operations and Charter: At least annually, the Committee will:

(a) review, under the oversight of the Nominating and Governance Committee, this

Committee’s performance, including review of its structure and operations

(including authority to delegate to subcommittees); its process for reporting to the

Board; and the process for determining the membership of the Committee

(including qualifications for Committee membership); and

(b) review and reassess the adequacy of the Committee’s Charter and recommend

for approval by the Board any changes that it deems appropriate.
Risk Committee Charter

January 26, 2023

Page 3

3. Other Duties: The Committee will perform such other duties as may be assigned from

time to time by the Board, including as set forth in the Guidelines, or requested by the

Non-Executive Chair.

4. Conservator Approval: Board or Committee action and Conservator approval shall be

required for any matter that is designated by the Conservator as requiring such

approval.