Freddie Mac Files 8-K: Material Agreement and Other Events

TL;DR

Freddie Mac filed an 8-K on Jan 2nd, reporting a material agreement and other events. Watch for details.

AI Summary

On January 2, 2025, Federal Home Loan Mortgage Corporation (Freddie Mac) filed an 8-K report. The filing indicates the company entered into a material definitive agreement and reported other events, along with financial statements and exhibits. The report was filed on January 8, 2025.

Why It Matters

This 8-K filing signals a significant development for Freddie Mac, potentially involving new contractual obligations or strategic shifts that could impact its operations and the broader mortgage market.

Risk Assessment

Risk Level: medium — Material definitive agreements can introduce new financial obligations or strategic directions that carry inherent risks.

Key Players & Entities

• Federal Home Loan Mortgage Corporation (company) — Registrant
• Freddie Mac (company) — Registrant's common name
• January 2, 2025 (date) — Earliest event date
• January 8, 2025 (date) — Filing date

FAQ

Key Financial Figures

• $1.5 billion — s with a principal balance in excess of $1.5 billion; the acquisition of certain loans with

Filing Documents

• fmcc-20250102.htm (8-K) — 42KB
• letteragreement20250102e.htm (EX-10.1) — 2KB
• sideletter20250102execut.htm (EX-99.1) — 5KB
• letteragreement20250102e001.jpg (GRAPHIC) — 146KB
• letteragreement20250102e002.jpg (GRAPHIC) — 177KB
• letteragreement20250102e003.jpg (GRAPHIC) — 178KB
• letteragreement20250102e004.jpg (GRAPHIC) — 148KB
• letteragreement20250102e005.jpg (GRAPHIC) — 103KB
• letteragreement20250102e006.jpg (GRAPHIC) — 38KB
• sideletter20250102execut001.jpg (GRAPHIC) — 194KB
• sideletter20250102execut002.jpg (GRAPHIC) — 118KB
• sideletter20250102execut003.jpg (GRAPHIC) — 47KB
• 0001026214-25-000010.txt ( ) — 1747KB
• fmcc-20250102.xsd (EX-101.SCH) — 2KB
• fmcc-20250102_lab.xml (EX-101.LAB) — 19KB
• fmcc-20250102_pre.xml (EX-101.PRE) — 11KB
• fmcc-20250102_htm.xml (XML) — 2KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 2, 2025, the Federal Housing Finance Agency (FHFA), acting as Conservator for Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation), and the U.S. Department of the Treasury (Treasury) entered into a letter agreement (January 2025 Letter Agreement), amending the Amended and Restated Senior Preferred Stock Purchase Agreement dated as of September 26, 2008, as amended (Purchase Agreement). January 2025 Letter Agreement The January 2025 Letter Agreement amends Purchase Agreement provisions at Article 5.3 that required prior Treasury consent to an exit from conservatorship, except an exit through receivership or if certain conditions related to resolution of pending significant litigation and capital accumulation were met. As amended by the January 2025 Letter Agreement, the Purchase Agreement now requires Treasury's prior consent to an exit other than through mandatory receivership. The Purchase Agreement was also amended to remove certain provisions in Article 5 that generally limited Freddie Mac's ability to acquire certain types of mortgage loans. These provisions, which were included pursuant to a letter agreement dated January 14, 2021 between FHFA, acting as Freddie Mac's Conservator, and Treasury, had been suspended since September 2021 pursuant to a letter agreement dated September 14, 2021. The removed provisions include the limitations on: acquiring for cash from any single seller in a year single-family mortgage loans with a principal balance in excess of $1.5 billion; the acquisition of certain loans with more than one higher-risk characteristic; and the acquisition of loans secured by investment properties or second homes. The January 2025 Letter Agreement also removes the multifamily loan purchase cap and the requirement that a certain percentage of multifamily loan acquisitions are classified as mission-driven pursuant to FHFA's guidelines. However, the multifamily

01 Other Events

Item 8.01 Other Events FHFA and Treasury also entered into a side letter agreement on January 2, 2025 (Side Letter), that sets forth certain procedural steps that FHFA will take before requesting Treasury's consent to terminate the conservatorship as set forth in Article 5.3 of the Purchase Agreement. Side Letter The Side Letter provides that prior to any termination of conservatorship other than by means of receivership, FHFA will issue a public request for information outlining in detail one or more specific options for the termination of conservatorship and seek input on the potential impacts of each option on the housing market and on Freddie Mac and Fannie Mae. Following the public input period, FHFA will brief the Financial Stability Oversight Council on a summary of the public input received, including input about factors related to each option that could have potential impacts on US financial stability. _____________________________________________________________________________________________________ Freddie Mac Form 8-K The Side Letter further provides that no less than six months before FHFA requests Treasury's consent, FHFA will provide Treasury a specific proposal that: (a) Sets forth FHFA's recommended approach to the termination of conservatorship; (b) Reflects the input received in response to the request for public input described above; (c) Includes a market impact assessment that describes how the recommended approach may impact the housing market and Freddie Mac; and (d) Addresses amendments, if any, to the Purchase Agreement and related instruments thereunder, that may be required to implement the recommended approach to the termination of the conservatorship. The Side Letter also states that Treasury will consult with the President before consenting to any request by FHFA or Freddie Mac pursuant to Article 5.3 of the Purchase Agreement related to a termination of conservatorship. The description of the Side Letter provided in thi

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The exhibits listed in the Exhibit Index below are being submitted with this report. Exhibit Number Description of Exhibit 10.1 Letter Agreement dated January 2, 2025 between the United States Department of the Treasury and the Federal Home Loan Mortgage Corporation, acting through the Federal Housing Finance Agency as its Conservator 99.1 Side Letter Agreement between the Federal Housing Finance Agency and the United States Department of the Treasury, dated January 2, 2025 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) _____________________________________________________________________________________________________ Freddie Mac Form 8-K SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FEDERAL HOME LOAN MORTGAGE CORPORATION By: /s/ Heidi L. Mason Heidi L. Mason EVP and General Counsel Date: January 8, 2025 ______________________________________________________________________________________________________ Freddie Mac Form 8-K

View Full Filing

View this 8-K filing on SEC EDGAR