Freddie Mac 2004 Annual Report Download - page 30

administrative authority beyond current practice, or the enactment of proposed legislation (in whole or
in part) discussed in ""BUSINESS Ì Regulatory and Governmental Matters Ì GSE Regulatory
Oversight Legislation;''
‚ Actions by governmental entities, securities rating agencies or others that could adversely aÅect the
supply or cost of equity capital or debt Ñnancing available to us;
‚ Our ability to eÅectively and timely implement the remediation plan undertaken as a result of the
restatement of our consolidated Ñnancial statements and the consent order entered into with OFHEO,
including particular initiatives relating to technical infrastructure and controls over Ñnancial reporting;
‚ Our ability to identify, manage, mitigate and/or remedy internal control weaknesses and deÑciencies
and other risks;
‚ Developments in, outcomes of, impacts of, and costs, expenses, settlements and judgments related to
regulatory investigations and civil litigation in which we are involved;
‚ Political conditions and related actions by the U.S. or abroad, which may adversely aÅect our
businesses and economic conditions as a whole;
‚ Changes in our strategies for and results of credit loss mitigation, interest-rate and other market risk
management activities and investment activities;
‚ Our ability to implement changes, developments and/or impacts of new, pending or existing
accounting standards, including the timely development of supporting systems;
‚ Changes in pricing or valuation methodologies, models, assumptions and/or estimates;
‚ The degree to which our business and Ñnancial forecasting methods accurately predict actual results
and our ability to implement business processing improvements;
‚ Volatility of reported results due to changes in fair value of certain instruments or assets;
‚ Changes in, and volatility of, the general economy, including interest rates, housing prices and
employment rates;
‚ The availability of debt Ñnancing and equity capital in suÇcient quantity and at attractive rates to
support continued growth in our retained portfolio, to reÑnance maturing debt and to meet regulatory
capital requirements;
‚ The availability of derivative Ñnancial instruments (such as options and interest-rate and currency
swaps) from acceptable counterparties of the types and in the quantities needed for investment funding
and risk management purposes;
‚ The rate of growth in total outstanding U.S. residential mortgage debt and the size of the U.S.
residential mortgage market;
‚ The possibility of further concentration of mortgage loan sourcing in a smaller number of originators;
‚ Preferences of originators in selling into the secondary market. See ""BUSINESS Ì Regulatory and
Governmental Matters Ì Other Regulatory Matters'' for additional information;
‚ Borrower preferences for Ñxed-rate mortgages or ARMs;
‚ Investor preferences for mortgage loans and mortgage-related and debt securities versus other
investments;
‚ Competition and liquidity in the market for mortgage-related and debt securities;
‚ Changes in foreign exchange rates;
‚ SigniÑcant business disruptions resulting from acts of war or terrorism;
‚ The occurrence of a major natural or other disaster in geographic areas in which portions of our total
mortgage portfolio are concentrated; and
‚ Our ability to eÅectively manage these and other risks.
We undertake no obligation to update these forward-looking statements to reÖect events or circumstances
after the date of this Information Statement, or to reÖect the occurrence of unanticipated events.
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