Freddie Mac 2009 Annual Report Download - page 154

Table 58 — Characteristics of the Single-Family Mortgage Portfolio
(1)
2009 2008 2007 2009 2008 2007
Purchases During
the Year Ended
December 31,
Portfolio at
December 31,
Original LTV Ratio Range
(2)
60% and below. . ....................................................... 33% 24% 18% 23% 22% 22%
Above 60% to 70% ...................................................... 17 16 14 16 16 16
Above 70% to 80% ...................................................... 39 40 49 45 46 47
Above 80% to 90% ...................................................... 7 11 8 8 8 8
Above 90% to 100% ..................................................... 4 9 11 8 8 7
Above 100% . . . ....................................................... — — — — — —
Total . . . ............................................................. 100% 100% 100% 100% 100% 100%
Weighted average original LTV ratio .......................................... 67% 71% 74% 71% 72% 71%
Estimated Current LTV Ratio Range
(3)
60% and below. . ....................................................... 28% 32% 41%
Above 60% to 70% ...................................................... 12 13 15
Above 70% to 80% ...................................................... 16 16 19
Above 80% to 90% ...................................................... 16 16 15
Above 90% to 100% ..................................................... 10 10 7
Above 100% to 110% .................................................... 6 5 3
Above 110% . . . ....................................................... 12 8 N/A
Total . . . ............................................................. 100% 100% 100%
Weighted average estimated current LTV ratio. ................................... 77% 72% 63%
Credit Score
(4)
740 and above . . ....................................................... 72% 53% 42% 50% 46% 45%
700to739............................................................ 18 22 22 22 23 23
660to699............................................................ 7 15 19 16 17 18
620to659............................................................ 2 7 11 8 9 9
Less than 620 . . . ....................................................... 1 3 6 3 4 4
Not available . . . ....................................................... — — — 1 1 1
Total . . . ............................................................. 100% 100% 100% 100% 100% 100%
Weighted average credit score ............................................... 756 734 718 730 725 723
Loan Purpose
Purchase ............................................................. 20% 41% 47% 35% 40% 40%
Cash-out refinance ...................................................... 26 31 32 30 30 30
Other refinance
(5)
....................................................... 54 28 21 35 30 30
Total . . . ............................................................. 100% 100% 100% 100% 100% 100%
Property Type
1 unit . . ............................................................. 99% 97% 97% 97% 97% 97%
2-4 units ............................................................. 1 3 3 3 3 3
Total . . . ............................................................. 100% 100% 100% 100% 100% 100%
Occupancy Type
Primary residence ....................................................... 93% 89% 89% 91% 91% 91%
Second/vacation home .................................................... 5 6 5 5 5 5
Investment ............................................................ 2 5 6 4 4 4
Total . . . ............................................................. 100% 100% 100% 100% 100% 100%
(1) Purchases and ending balances are based on the unpaid principal balance of the single-family mortgage portfolio excluding Structured Securities backed
by Ginnie Mae certificates, other guarantees of HFA bonds and certain Structured Transactions. Structured Transactions with ending balances of
$2 billion, $2 billion and $6 billion at December 31, 2009, 2008 and 2007, respectively, and Structured Transactions backed by HFA bonds of
$3.9 billion, $— billion and $— billion at December 31, 2009, 2008 and 2007, respectively, are excluded since these securities are backed by non-
Freddie Mac issued securities for which the loan characteristics data is not available.
(2) Original LTV ratios are calculated as the amount of the mortgage we guarantee including the credit-enhanced portion, divided by the lesser of the
appraised value of the property at time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by us
are excluded from the LTV ratio calculation. Including secondary financing at origination, the total original LTV ratios above 90% were approximately
13% and 14% at December 31, 2009 and 2008, respectively.
(3) Current market values are estimated by adjusting the value of the property at origination based on changes in the market value of homes since
origination. Estimated current LTV ratio range is not applicable to purchases we made during 2009 and includes the credit-enhanced portion of the loan
and excludes any secondary financing by third parties. Estimated current LTV ratio for above 110% category is not available at December 31, 2007.
(4) Credit score data is based on FICO scores. Although we obtain updated credit information on certain borrowers after the origination of a mortgage, such
as those borrowers seeking a modification, the scores presented in this table represent only the credit score of the borrower at the time of loan
origination.
(5) Other refinance transactions, include refinance mortgages with “no cash-out” to the borrower, and also include refinance mortgages for which the
delivery data provided was not sufficient for us to determine whether the mortgage was a cash-out or a no cash-out refinance transaction.
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