TEXT-EXTRACT 2 filename2.txt United States securities and exchange commission logo March 21, 2024 Christian Lown Executive Vice President and Chief Financial Officer Federal Home Loan Mortgage Corporation 8200 Jones Branch Drive McLean, VA 22102-3110 Re: Federal Home Loan Mortgage Corporation Form 10-K for Fiscal Year Ended December 31, 2023 File No. 001-34139 Dear Christian Lown: We have conducted a limited review of your annual report and have the following comment. Please respond to this letter within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe the comment applies to your facts and circumstances, please tell us why in your response. After reviewing your response to this letter, we may have additional comments. Form 10-K for Fiscal Year Ended December 31, 2023 Note 4. Mortgage Loans, page 155 1. We note your disclosure on page 165 that you elected to suspend TDR accounting for eligible modifications under Section 4013 of the CARES Act during the period beginning on March 1, 2020 and ending on January 1, 2022. Please provide us with the following: An analysis explaining, in detail, your accounting treatment and policies regarding non-accrual loans and interest income recognition for eligible modifications under Section 4013 of the CARES Act. Cite any authoritative accounting literature or guidance considered and applied. In your response, explain how the interest rate was determined for purposes of any interest income recognition for these loans and discuss any differences in how the interest rate was calculated if it varied depending on the types or length of the modification. Quantification of the amount of the eligible modifications and the associated interest income recognized, and any interest income deferred, for loans not accounted for as TDRs due to your election under Section 4013 of the CARES Act for each period Christian Lown Federal Home Loan Mortgage Corporation March 21, 2024 Page 2 presented. To the extent there are different types of modifications, or material differences in the terms of the modifications, please provide this information separately for each material type of modification. An analysis explaining, in detail, your accounting treatment and policies for these loans subsequent to the expiration of the relief provided by Section 4013 of the CARES Act. As part of your response, please consider providing an illustrative example of a loan that went through an eligible modification under Section 4013 of the CARES Act, outlining the typical process for determining the interest rate for recognizing interest income on the loan both during and after the expiration of the relief. In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff. Please contact John Spitz at 202-551-3484 or Ben Phippen at 202-551-3697 with any questions. FirstName LastNameChristian Lown Sincerely, Comapany NameFederal Home Loan Mortgage Corporation Division of Corporation Finance March 21, 2024 Page 2 Office of Finance FirstName LastName