Freddie Mac 2009 Annual Report Download - page 163

Table 62 provides characteristics of our multifamily new business purchases in 2009 and 2008, and of our multifamily
mortgage portfolio at December 31, 2009 and 2008.
Table 62 — Characteristics of the Multifamily Mortgage Portfolio
(1)
2009 2008 2009 2008
Purchases During The Year
Ended December 31, Portfolio at December 31,
Original LTV Ratio
(2)
Below 75% ................................................... 80% 68% 64% 61%
75%to80% .................................................. 18 21 29 31
Above 80% ................................................... 2 11 7 8
Total ....................................................... 100% 100% 100% 100%
Weighted average LTV ratio at origination ............................... 70% 71% 70% 70%
Original Debt Service Coverage Ratio
(3)
Below 1.10 ................................................... —% 7% 4% 4%
1.10 to 1.25 ................................................... 11 15 13 14
Above 1.25 ................................................... 89 78 83 82
Total ..................................................... 100% 100% 100% 100%
Weighted average debt service coverage ratio at origination ..................... 1.70 1.50 1.61 1.65
Original Loan Size Distribution
Below $5 million ............................................... 4% 5% 8% 8%
$5 million to $25 million .......................................... 45 53 55 58
Above $25 million .............................................. 51 42 37 34
Total ..................................................... 100% 100% 100% 100%
Other Characteristics
Fixed rate
(4)
................................................... 67% 77% 82% 85%
Adjustable-rate ................................................. 33 23 18 15
Total ..................................................... 100% 100% 100% 100%
Product Distribution
Interest-only — partial
(5)
........................................... 35% 36% 34% 34%
Interest-only — balloon
(5)
.......................................... 10 36 25 27
Amortizing
(6)
.................................................. 55 28 41 39
Total ..................................................... 100% 100% 100% 100%
Geographic Distribution
California .................................................... 21% 18% 18% 17%
Texas ....................................................... 13 14 12 11
NewYork.................................................... 9 6 9 9
Virginia ..................................................... 6 7 5 5
Florida ...................................................... 6 5 5 6
All other states ................................................. 45 50 51 52
Total ..................................................... 100% 100% 100% 100%
Maturity Dates
2009 ....................................................... —% 2%
2010 ....................................................... 2 2
2011 ....................................................... 4 4
2012 ....................................................... 4 5
2013 ....................................................... 7 8
Beyond 2013 .................................................. 83 79
Total ..................................................... 100% 100%
(1) Purchases and ending balances are based on unpaid principal balance of the multifamily mortgage portfolio, which includes multifamily loans
underlying issued PCs and Structured Securities. As of December 31, 2009 and 2008, the total multifamily mortgage portfolio was $98.6 billion and
$87.5 billion, respectively, excluding securities and guarantees backed by HFA bonds and certain multifamily Structured Transactions since the loan
characteristics data is not readily 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.
(3) Original debt service coverage ratio is calculated by dividing the annual net operating income (“NOI”) of the property by the borrower’s scheduled
annual mortgage payments on the loan at the time of purchase. NOI is the amount of funds available for repayment of debt and return on equity to the
owner after deducting all expenses except mortgage principal and interest payments.
(4) Includes loans that, as of the reporting date, are either fixed for their remaining term, or within their fixed coupon period, but may have a contractual
coupon rate that is subject to change before maturity.
(5) Interest-only — partial are those loans that have an initial interest-only period before converting into amortizing loans. Interest-only — balloon are those
loans that are interest-only for their entire term and culminate in a balloon payment at maturity.
(6) Consists primarily of loans where the amortization of principal is scheduled for a longer term than the loan itself, which results in a partial balloon
payment due at the loan’s maturity date.
160 Freddie Mac