FMCC Files Q3 2024 10-Q Report

Ticker: FMCKK · Form: 10-Q · Filed: Oct 30, 2024 · CIK: 1026214

Federal Home Loan Mortgage Corp 10-Q Filing Summary
FieldDetail
CompanyFederal Home Loan Mortgage Corp (FMCKK)
Form Type10-Q
Filed DateOct 30, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$3.1 b, $420 million, $313 million, $5.8 b, $56.4 billion
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, mortgage-finance, sec-filing

Related Tickers: FNMA

TL;DR

FMCC's Q3 2024 10-Q is out. Shows financial details for the period ending 9/30/24.

AI Summary

Federal Home Loan Mortgage Corp (FMCC) filed its Q3 2024 10-Q report on October 30, 2024, covering the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity as of September 30, 2024, and comparative periods. Key financial data and operational segments are presented for the nine months and three months ended September 30, 2024, and 2023.

Why It Matters

This report provides crucial insights into the financial health and operational performance of a major player in the US housing finance market, impacting investors and the broader mortgage industry.

Risk Assessment

Risk Level: medium — As a federally sponsored entity involved in mortgage finance, FMCC faces inherent risks related to market volatility, interest rate changes, and regulatory oversight.

Key Numbers

  • 2024-09-30 — Reporting Period End Date (Key date for financial statements)
  • 2024-10-30 — Filing Date (Date the report was submitted to the SEC)
  • 2024-01-01 — Year-to-Date Start Date (Beginning of the period for year-to-date figures)
  • 2023-09-30 — Prior Year Period End Date (For comparative financial analysis)
  • 2023-07-01 — Prior Year Quarter Start Date (For comparative quarterly analysis)

Key Players & Entities

  • FEDERAL HOME LOAN MORTGAGE CORP (company) — Filer of the 10-Q report
  • 0001026214 (company) — Central Index Key for FMCC
  • 20240930 (date) — End of the reporting period
  • 20241030 (date) — Filing date of the 10-Q
  • 7039032000 (dollar_amount) — Business phone number

FAQ

What was the net income for the nine months ended September 30, 2024?

The filing does not explicitly state the net income for the nine months ended September 30, 2024, in the provided header information. Detailed financial statements within the full 10-Q would contain this figure.

What is the company's primary business activity?

The company's Standard Industrial Classification is FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111], indicating its role in federal and federally-sponsored credit agency activities.

When did the company's fiscal year end?

The company's fiscal year ends on December 31.

What is the SEC file number for Federal Home Loan Mortgage Corp?

The SEC file number is 001-34139.

What is the company's mailing address?

The mailing address is 8200 JONES BRANCH DR, MCLEAN, VA 22102.

Filing Stats: 4,390 words · 18 min read · ~15 pages · Grade level 13.8 · Accepted 2024-10-30 08:00:18

Key Financial Figures

  • $3.1 b — lions) Key Drivers: n Net income was $3.1 billion, an increase of $420 million year
  • $420 million — income was $3.1 billion, an increase of $420 million year-over-year, primarily driven by a d
  • $313 million — expense, as the prior period included a $313 million additional expense accrual. n Net reve
  • $5.8 b — l expense accrual. n Net revenues were $5.8 billion, an increase of 3% year-over-year
  • $56.4 billion — r net interest income. n Net worth was $56.4 billion as of September 30, 2024, up from $44.7
  • $44.7 billion — llion as of September 30, 2024, up from $44.7 billion as of September 30, 2023. The quarterly
  • $125.9 billion — rence of the senior preferred stock was $125.9 billion on September 30, 2024, and will increas
  • $129.0 billion — eptember 30, 2024, and will increase to $129.0 billion on December 31, 2024 based on the incre
  • $113 billion — well as for rental housing. We provided $113 billion in liquidity to the mortgage market in
  • $3.5 — ortfolio increased 2% year-over-year to $3.5 trillion at September 30, 2024, continu
  • $3.1 — ur Single-Family mortgage portfolio was $3.1 trillion at September 30, 2024, up 2% y
  • $452 billion — Our Multifamily mortgage portfolio was $452 billion at September 30, 2024, up 5% year-over-
  • $4,999 — YTD 2023 $ % (1) Net interest income $4,999 $4,749 $250 5 % $14,686 $13,773 $913 7
  • $4,749 — 23 $ % (1) Net interest income $4,999 $4,749 $250 5 % $14,686 $13,773 $913 7 % Non-
  • $250 — (1) Net interest income $4,999 $4,749 $250 5 % $14,686 $13,773 $913 7 % Non-inter

Filing Documents

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1 n Introduction 1 n Housing and Mortgage Market Conditions 4 n Consolidated Results of Operations 6 n Consolidated Balance Sheets Analysis 10 n Our Portfolios 11 n Our Business Segments 13 n Risk Management 22 l Credit Risk 22 l Market Risk 31 n Liquidity and Capital Resources 34 n Critical Accounting Estimates 42 n Regulation and Supervision 43 n Forward-Looking Statements 45

FINANCIAL STATEMENTS 47

FINANCIAL STATEMENTS 47 OTHER INFORMATION 96

CONTROLS AND PROCEDURES 98

CONTROLS AND PROCEDURES 98 EXHIBIT INDEX 99 SIGNATURES 100 FORM 10-Q INDEX 101 Freddie Mac 3Q 2024 Form 10-Q i Table of Contents MD&A TABLE INDEX Table Description Page 1 Summary of Consolidated Statements of Income and Comprehensive Income 6 2 Components of Net Interest Income 6 3 Analysis of Net Interest Yield 7 4 Components of Non-Interest Income 8 5 (Provision) Benefit for Credit Losses 8 6 Components of Non-Interest Expense 9 7 Summarized Condensed Consolidated Balance Sheets 10 8 Mortgage Portfolio 11 9 Mortgage-Related Investments Portfolio 12 10 Other Investments Portfolio 12 11 Single-Family Segment Financial Results 17 12 Multifamily Segment Financial Results 21 13 Allowance for Credit Losses Activity 23 14 Allowance for Credit Losses Ratios 23 15 Single-Family New Business Activity 24 16 Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements 25 17 Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding 25 18 Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio 26 19 Credit Quality Characteristics of Our Single-Family Mortgage Portfolio 27 20 Single-Family Mortgage Portfolio Attribute Combinations 27 21 Single-Family Completed Loan Workout Activity 29 22 Multifamily Mortgage Portfolio CRT Issuance 30 23 Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio 31 24 Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement 31 25 PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve 32 26 Duration Gap and PVS Results 32 27 PVS-L Results Before Derivatives and After Derivatives 32 28 Earnings Sensitivity to Changes in Interest Rates 33 29 Liquidity Sources 34 30 Funding Sources 35 31 Debt of Freddie Mac Activity 35 32 Maturity and Redemption Dates 36 33 Debt of Consolidated Trusts Activity 37 34 Net Worth Activity 38 35 Regu

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations This Quarterly Report on Form 10-Q includes forward-looking statements that are based on current expectations and that are subject to significant risks and uncertainties. These forward-looking statements are made as of the date of this Form 10-Q. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q. Actual results might differ significantly from those described in or implied by such statements due to various factors and uncertainties, including those described in the MD&A - Forward-Looking Statements section of this Form 10-Q and the Introduction and Risk Factors sections of our Annual Report on Form 10-K for the year ended December 31, 2023, or 2023 Annual Report . Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the Glossary of our 2023 Annual Report. You should read the following MD&A in conjunction with our 2023 Annual Report and our condensed consolidated financial statements and accompanying notes for the three and nine months ended September 30, 2024 included in Financial Statements . INTRODUCTION Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by lenders. In most instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global capital markets, and transfer interest-rate and liquidity risks to third-party investors. In addition, we transfer a portion of our mortgage credit risk exposure to third-party investors through our credit risk transfer programs, which include securities- and insurance-based offerings. We also invest in mortgage loans, mortgage-related securities, and other types of assets. We do not originate

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction Business Results Consolidated Financial Results Net Revenues and Net Income (In billions) Net Worth (In billions) Key Drivers: n Net income was $3.1 billion, an increase of $420 million year-over-year, primarily driven by a decline in non-interest expense, as the prior period included a $313 million additional expense accrual. n Net revenues were $5.8 billion, an increase of 3% year-over-year, primarily driven by higher net interest income. n Net worth was $56.4 billion as of September 30, 2024, up from $44.7 billion as of September 30, 2023. The quarterly increases in net worth have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock was $125.9 billion on September 30, 2024, and will increase to $129.0 billion on December 31, 2024 based on the increase in net worth in 3Q 2024. Market Liquidity Market Liquidity (In thousands) We support the U.S. housing market by executing our mission to provide liquidity and help maintain credit availability for new and refinanced single-family mortgages as well as for rental housing. We provided $113 billion in liquidity to the mortgage market in 3Q 2024, which enabled the financing of 415,000 home purchases, refinancings, and rental units. Freddie Mac 3Q 2024 Form 10-Q 2

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction Mortgage Portfolio Balances Mortgage Portfolio (UPB in billions) Key Drivers: n Our mortgage portfolio increased 2% year-over-year to $3.5 trillion at September 30, 2024, continuing to grow at a moderate pace. l Our Single-Family mortgage portfolio was $3.1 trillion at September 30, 2024, up 2% year-over-year. l Our Multifamily mortgage portfolio was $452 billion at September 30, 2024, up 5% year-over-year. Credit Enhancement Coverage Single-Family Mortgage Portfolio with Credit Enhancement (UPB in billions) Multifamily Mortgage Portfolio with Credit Enhancement (UPB in billions) In addition to transferring interest-rate and liquidity risk to third-party investors through our securitization activities, we engage in various types of credit enhancements, such as primary mortgage insurance and CRT transactions, to reduce our credit risk exposure and transfer a portion of the credit risk on certain loans in our mortgage portfolio to third parties. At September 30, 2024, we had credit enhancement coverage on 62% of our Single-Family mortgage portfolio and 93% of our Multifamily mortgage portfolio. See MD&A - Risk Management – Credit Risk for additional information on our credit enhancements. Freddie Mac 3Q 2024 Form 10-Q 3

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Management's Discussion and Analysis Housing and Mortgage Market Conditions HOUSING AND MORTGAGE MARKET CONDITIONS The following charts present certain housing and mortgage market indicators that can significantly affect our business and financial results. Certain market and macroeconomic prior period data have been updated to reflect revised historical data. For additional information on the effect of these indicators on our business and financial results, see MD&A – Consolidated Results of Operations and MD&A – Our Business Segments . Single-Family U.S. Single-Family Home Sales and House Prices Sources: National Association of Realtors, U.S. Census Bureau, and Freddie Mac House Price Index (seasonally adjusted rate). U.S. Single-Family Mortgage Originations (UPB in billions) Source: Freddie Mac and Inside Mortgage Finance. Single-Family Serious Delinquency Rates Source: Freddie Mac and National Delinquency Survey from the Mortgage Bankers Association. The 3Q 2024 total mortgage market rate is not yet available. Single-Family Mortgage Debt Outstanding (UPB in trillions) Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2024 U.S. single-family mortgage debt outstanding balance is not yet available. Freddie Mac 3Q 2024 Form 10-Q 4

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Management's Discussion and Analysis Housing and Mortgage Market Conditions Multifamily Apartment Vacancy Rates and Change in Effective Rents Source: Reis. Multifamily Quarterly Property Price Growth Rate Source: Real Capital Analytics Commercial Property Price Index (RCA CPPI). Multifamily Delinquency Rates Source: Freddie Mac, FDIC Quarterly Banking Profile, Intex Solutions, Inc., and Wells Fargo Securities (Multifamily CMBS conduit market, excluding REOs). The 3Q 2024 delinquency rate for FDIC insured institutions is not yet available. Multifamily Mortgage Debt Outstanding (UPB in billions) Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2024 U.S. multifamily mortgage debt outstanding balance is not yet available. Freddie Mac 3Q 2024 Form 10-Q 5

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations CONSOLIDATED RESULTS OF OPERATIONS The discussion of our consolidated results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes. The table below compares our summarized consolidated results of operations. Table 1 - Summary of Consolidated Statements of Income and Comprehensive Income Change Change (Dollars in millions) 3Q 2024 3Q 2023 $ % YTD 2024 YTD 2023 $ % (1) Net interest income $4,999 $4,749 $250 5 % $14,686 $13,773 $913 7 % Non-interest income 839 941 (102) (11) 2,897 2,083 814 39 Net revenues 5,838 5,690 148 3 17,583 15,856 1,727 11 (Provision) benefit for credit losses 191 263 (72) (27) (384) 405 (789) NM Non-interest expense (2,183) (2,576) 393 15 (6,439) (6,712) 273 4 Income before income tax expense 3,846 3,377 469 14 10,760 9,549 1,211 13 Income tax expense (741) (692) (49) (7) (2,124) (1,925) (199) (10) Net income 3,105 2,685 420 16 8,636 7,624 1,012 13 Other comprehensive income (loss), net of taxes and reclassification adjustments 62 19 43 226 32 19 13 68 Comprehensive income $3,167 $2,704 $463 17 % $8,668 $7,643 $1,025 13 % (1) NM - not meaningful. Net Revenues Net Interest Income The table below presents the components of net interest income. Table 2 - Components of Net Interest Income Change Change (Dollars in millions) 3Q 2024 3Q 2023 $ % YTD 2024 YTD 2023 $ % Guarantee net interest income: Contractual net interest income $3,844 $3,695 $149 4 % $11,430 $11,019 $411 4 % Deferred fee income 188 316 (128) (41) 533 755 (222) (29) Total guarantee net interest income 4,032 4,011 21 1 11,963 11,774 189 2 Investments net interest income 1,511 1,675 (164) (10) 4,595 4,718 (123) (3) Impact on net interest income from hedge accounting (544) (937) 393 42 (1,872) (2,719) 847 31 Net interest income $4,999 $4,749 $250 5 % $14,686 $13,773 $913 7 % Key Drivers: n Guarantee net interes

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Net Interest Yield Analysis The table below presents a yield analysis of interest-earning assets and interest-bearing liabilities. Table 3 - Analysis of Net Interest Yield 3Q 2024 3Q 2023 (Dollars in millions) Average Balance Interest Income (Expense) Average Rate Average Balance Interest Income (Expense) Average Rate Interest-earning assets: Cash and cash equivalents $9,848 $103 4.10 % $13,523 $145 4.19 % Securities purchased under agreements to resell 109,863 1,511 5.50 122,140 1,660 5.43 Investment securities 45,616 510 4.48 41,169 427 4.15 Mortgage loans (1) 3,133,839 27,640 3.53 3,069,177 24,525 3.20 Other assets 2,624 45 6.72 2,839 42 5.79 Total interest-earning assets 3,301,790 29,809 3.62 3,248,848 26,799 3.30 Interest-bearing liabilities: Debt of consolidated trusts 3,064,773 (22,330) (2.91) 3,005,595 (19,383) (2.58) Debt of Freddie Mac 178,148 (2,480) (5.56) 193,925 (2,667) (5.49) Total interest-bearing liabilities 3,242,921 (24,810) (3.06) 3,199,520 (22,050) (2.76) Impact of net non-interest-bearing funding 58,869 — 0.05 49,328 — 0.04 Total funding of interest-earning assets 3,301,790 (24,810) (3.01) 3,248,848 (22,050) (2.72) Net interest income/yield $4,999 0.61 % $4,749 0.58 % (1) Loan fees included in net interest income were $0.3 and $0.2 billion during 3Q 2024 and 3Q 2023, respectively. YTD 2024 YTD 2023 (Dollars in millions) Average Balance Interest Income (Expense) Average Rate Average Balance Interest Income (Expense) Average Rate Interest-earning assets: Cash and cash equivalents $11,119 $351 4.15 % $13,618 $401 3.88 % Securities purchased under agreements to resell 112,825 4,636 5.48 118,891 4,502 5.05 Investment securities 42,936 1,464 4.55 39,637 1,106 3.72 Mortgage loans (1) 3,115,870 80,690 3.45 3,052,953 71,427 3.12 Other assets 2,339 117 6.58 2,506 105 5.53 Total interest-earning assets 3,285,089 87,258 3.5

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Non-Interest Income The table below presents the components of non-interest income. Table 4 - Components of Non-Interest Income Change Change (Dollars in millions) 3Q 2024 3Q 2023 $ % YTD 2024 YTD 2023 $ % Guarantee income $487 $301 $186 62 % $1,366 $1,076 $290 27 % Investment gains, net 243 555 (312) (56) 1,197 741 456 62 Other income 109 85 24 28 334 266 68 26 Non-interest income $839 $941 ($102) (11) % $2,897 $2,083 $814 39 % Key Drivers: n Guarantee income l 3Q 2024 vs. 3Q 2023 - Increased primarily due to lower fair value losses on guarantee assets as a result of medium-term interest rate declines in 3Q 2024. l YTD 2024 vs. YTD 2023 - Increased primarily due to lower fair value losses on guarantee assets as a result of medium-term interest rate declines and favorable fair value changes on guarantee assets from prepayment rates in YTD 2024. n Investment gains, net l 3Q 2024 vs. 3Q 2023 - Decreased primarily due to impacts from interest-rate risk management activities. l YTD 2024 vs. YTD 2023 - Increased primarily due to impacts from interest-rate risk management activities and higher revenues from held-for-sale loan purchase and securitization activities. (Provision) Benefit for Credit Losses The table below presents the components of provision for credit losses. Table 5 - (Provision) Benefit for Credit Losses Change Change (Dollars in millions) 3Q 2024 3Q 2023 $ % (1) YTD 2024 YTD 2023 $ % (1) Single-Family $99 $304 ($205) (67) % ($336) $624 ($960) NM Multifamily 92 (41) 133 NM (48) (219) 171 78 % (Provision) benefit for credit losses $191 $263 ($72) (27) % ($384) $405 ($789) NM (1) NM - not meaningful. Key Drivers: n 3Q 2024 vs. 3Q 2023 - The benefit for credit losses for 3Q 2024 was driven by a credit reserve release in Single-Family as a result of lower mortgage interest rates and a credit reserve release in Multifamily due to enhancements in the credit

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Non-Interest Expense The table below presents the components of non-interest expense. Table 6 - Components of Non-Interest Expense Change Change (Dollars in millions) 3Q 2024 3Q 2023 $ % YTD 2024 YTD 2023 $ % Salaries and employee benefits ($424) ($418) ($6) (1) % ($1,265) ($1,197) ($68) (6) % Credit enhancement expense (616) (634) 18 3 (1,801) (1,754) (47) (3) Benefit for (decrease in) credit enhancement recoveries (4) (103) 99 96 (10) (162) 152 94 Legislative assessments expense: Legislated guarantee fees expense (732) (716) (16) (2) (2,184) (2,134) (50) (2) Affordable housing funds allocation (48) (41) (7) (17) (118) (109) (9) (8) Total legislative assessments expense (780) (757) (23) (3) (2,302) (2,243) (59) (3) Other expense (359) (664) 305 46 (1,061) (1,356) 295 22 Non-interest expense ($2,183) ($2,576) $393 15 % ($6,439) ($6,712) $273 4 % Key Drivers: n Benefit for (decrease in) credit enhancement recoveries l 3Q 2024 vs. 3Q 2023 and YTD 2024 vs. YTD 2023 - Decreased primarily due to a smaller decrease in expected credit losses on covered loans. n Other expense l 3Q 2024 vs. 3Q 2023 and YTD 2024 vs. YTD 2023 - Decreased primarily due to a $313 million expense accrual for an adverse judgment at trial in 3Q 2023. We did not have a similar litigation accrual in 3Q 2024. Freddie Mac 3Q 2024 Form 10-Q 9

Management's Discussion and Analysis Consolidated Balance Sheets Analysis

Management's Discussion and Analysis Consolidated Balance Sheets Analysis CONSOLIDATED BALANCE SHEETS ANALYSIS The table below compares our summarized condensed consolidated balance sheets. Table 7 - Summarized Condensed Consolidated Balance Sheets Change (Dollars in millions) September 30, 2024 December 31, 2023 $ % Assets: Cash and cash equivalents $4,857 $6,019 ($1,162) (19) % Securities purchased under agreements to resell 103,110 95,148 7,962 8 Investment securities, at fair value 43,613 43,275 338 1 Mortgage loans held-for-sale 11,678 12,941 (1,263) (10) Mortgage loans held-for-investment 3,140,319 3,083,665 56,654 2 Accrued interest receivable, net 10,561 9,925 636 6 Deferred tax assets, net 4,730 4,076 654 16 Other assets 23,715 25,927 (2,212) (9) Total assets $3,342,583 $3,280,976 $61,607 2 % Liabilities and Equity: Liabilities: Accrued interest payable $9,222 $8,812 $410 5 % Debt 3,265,267 3,208,346 56,921 2 Other liabilities 11,704 16,096 (4,392) (27) Total liabilities 3,286,193 3,233,254 52,939 2 Total equity 56,390 47,722 8,668 18 Total liabilities and equity $3,342,583 $3,280,976 $61,607 2 % Key Drivers: As of September 30, 2024 compared to December 31, 2023: n Securities purchased under agreements to resell increased, driven by a shift from securities sold under agreements to repurchase to debt of Freddie Mac due to lower funding costs. Securities sold under agreements to repurchase are generally offset against securities purchased under agreements to resell on our condensed consolidated balance sheets. n Mortgage loans held-for-investment increased primarily due to growth in our Single-Family mortgage portfolio. n Debt increased primarily due to an increase in debt of consolidated trusts driven by growth in our Single-Family mortgage portfolio. Freddie Mac 3Q 2024 Form 10-Q 10

Management's Discussion and Analysis Our Portfolios

Management's Discussion and Analysis Our Portfolios OUR PORTFOLIOS Mortgage Portfolio The table below presents the UPB of our mortgage portfolio by segment. Table 8 - Mortgage Portfolio September 30, 2024 December 31, 2023 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Mortgage loans held-for-investment: By consolidated trusts $2,997,105 $60,202 $3,057,307 $2,963,296 $47,433 $3,010,729 By Freddie Mac 43,911 12,507 56,418 33,213 11,770 44,983 Total mortgage loans held-for-investment 3,041,016 72,709 3,113,725 2,996,509 59,203 3,055,712 Mortgage loans held-for-sale 2,803 9,051 11,854 3,527 9,905 13,432 Total mortgage loans 3,043,819 81,760 3,125,579 3,000,036 69,108 3,069,144 Mortgage-related guarantees: Mortgage loans held by nonconsolidated trusts 30,287 359,166 389,453 30,182 360,928 391,110 Other mortgage-related guarantees 8,126 11,190 19,316 8,692 10,761 19,453 Total mortgage-related guarantees 38,413 370,356 408,769 38,874 371,689 410,563 Total mortgage portfolio $3,082,232 $452,116 $3,534,348 $3,038,910 $440,797 $3,479,707 Guaranteed mortgage-related securities: Issued by consolidated trusts $3,009,915 $60,201 $3,070,116 $2,970,707 $47,436 $3,018,143 Issued by nonconsolidated trusts 24,684 320,710 345,394 24,600 321,262 345,862 Total guaranteed mortgage-related securities $3,034,599 $380,911 $3,415,510 $2,995,307 $368,698 $3,364,005 Investments Portfolio Our investments portfolio consists of our mortgage-related investments portfolio and our other investments portfolio. Mortgage-Related Investments Portfolio The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. We are also subject to additional limitations on the size and composition of our mortgage-related investm

Management's Discussion and Analysis Our Portfolios

Management's Discussion and Analysis Our Portfolios The table below presents the details of our mortgage-related investments portfolio. Table 9 - Mortgage-Related Investments Portfolio September 30, 2024 December 31, 2023 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Unsecuritized mortgage loans: Securitization pipeline loans (1) $16,243 $15,199 $31,442 $8,225 $15,197 $23,422 Other loans (2) 30,471 6,359 36,830 28,515 6,478 34,993 Total unsecuritized mortgage loans 46,714 21,558 68,272 36,740 21,675 58,415 Mortgage-related securities: Investment securities 2,906 4,245 7,151 2,667 4,613 7,280 Debt of consolidated trusts 18,319 637 18,956 18,639 660 19,299 Total mortgage-related securities 21,225 4,882 26,107 21,306 5,273 26,579 Mortgage-related investments portfolio $67,939 $26,440 $94,379 $58,046 $26,948 $84,994 10% of notional amount of interest-only securities $22,580 $22,186 Mortgage-related investments portfolio for purposes of Purchase Agreement cap 116,959 107,180 (1) Single-family and multifamily loans that we have purchased for cash and aggregate on our balance sheet for securitization within the normal course of business. (2) Primarily includes delinquent and modified single-family loans that we have purchased from securitization trusts. Other Investments Portfolio The table below presents the details of the carrying value of our other investments portfolio. Table 10 - Other Investments Portfolio September 30, 2024 December 31, 2023 (In millions) Liquidity and Contingency Operating Portfolio Custodial Account Other Total Other Investments Portfolio Liquidity and Contingency Operating Portfolio Custodial Account Other Total Other Investments Portfolio Cash and cash equivalents $3,638 $1,106 $113 $4,857 $5,041 $890 $88 $6,019 Securities purchased under agreements to resell 89,903 13,429 1,888 105,220 94,904 9,396 1,093 105,393 Non-mortgage related securities (1) 24,531 — 6,000 30,531 24,153

Management's Discussion and Analysis Our Business Segments

Management's Discussion and Analysis Our Business Segments OUR BUSINESS SEGMENTS As shown in the table below, we have two reportable segments, which are based on the way we manage our business. Segment Description Single-Family Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment. Multifamily Reflects results f

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