Freddie Mac 2009 Annual Report Download - page 170

affected by the increasing number of borrowers who participate in HAMP, since many of these loans are counted as
delinquent while in the trial period.
Table 65 presents delinquency rates for our single-family and multifamily mortgage portfolios.
Table 65 — Delinquency Rates
Percent
(2)
Delinquency
Rate
(3)
Percent
(2)
Delinquency
Rate
(3)
Percent
(2)
Delinquency
Rate
(3)
2009 2008 2007
December 31,
Single-family:
(1)
Northeast ......................................... 25% 2.37% 24% 0.96% 24% 0.39%
Southeast ......................................... 18 4.15 18 1.87 18 0.59
North Central . . .................................... 18 2.21 19 0.98 20 0.48
Southwest ........................................ 12 1.33 13 0.68 13 0.32
West............................................ 27 4.44 26 1.67 25 0.42
100% 100% 100%
Total non-credit-enhanced — all regions . . . ................. 3.00 1.26 0.45
Total credit-enhanced — all regions . . ..................... 8.17 3.79 1.62
Total single-family mortgage portfolio ..................... 3.87 1.72 0.65
Multifamily:
Total non-credit-enhanced ............................ 89% 0.04 88% 0.00 91% 0.02
Total credit-enhanced . .............................. 11 1.02 12 0.12 9 0.00
Total multifamily mortgage portfolio . ..................... 100% 0.15 100% 0.01 100% 0.02
(1) Presentation of non-credit-enhanced delinquency rates with the following regional designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA);
Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southeast (AL,
FL, GA, KY, MS, NC, PR, SC, TN, VI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).
(2) Based on mortgage loans recognized on our consolidated balance sheets and mortgages underlying our issued guaranteed PCs and Structured Securities,
excluding that portion of Structured Securities that is backed by Ginnie Mae Certificates and other guarantees backed by HFA bonds. Single-family
percentages are based on unpaid principal balances and multifamily percentages are based on net carrying values.
(3) See “Portfolio Management Activities — Credit Performance — Delinquencies” for further information about our reported delinquency rates.
During 2009, home prices in certain regions and states improved modestly, but remained weak overall due to significant
inventories of unsold homes in every region of the U.S. In some geographical areas, particularly in certain states within the
West, Southeast and Northeast regions, home price declines of the past three years have been combined with higher rates of
unemployment which have resulted in significant increases in delinquency rates. These increases in delinquency rates have
been more severe in Florida, California, Nevada and Arizona. The delinquency rate for loans in our single-family mortgage
portfolio, excluding Structured Transactions, related to Nevada, Florida, Arizona and California were 11.17%, 10.22%,
7.29% and 5.66%, respectively, as of December 31, 2009. As of December 31, 2009, single-family loans in California
comprised 15% of our single-family mortgage portfolio; however, delinquent loans in California comprised more than 22%
of the delinquent loans in our single-family mortgage portfolio, based on unpaid principal balances.
The table below presents delinquency and default rate information for our single-family mortgage portfolio based on
year of origination.
Table 66 — Single-Family Mortgage Portfolio
(1)
by Year of Origination
Year of Origination
Percent of
Single-Family
UPB
Delinquency
Rate
Cumulative
Default
Rate
(2)
Percent of
Single-Family
UPB
Delinquency
Rate
Cumulative
Default
Rate
(2)
Percent of
Single-Family
UPB
Delinquency
Rate
Cumulative
Default
Rate
(2)
2009 2008 2007
December 31,
Pre-2000 . . . . . . . . . . . 2% 2.46% N/A 2% 1.53% N/A 3% 0.99% N/A
2000 . . . . . . . . . . . . . . G1 6.28 1.09% G1 3.95 1.05% G1 2.66 1.02%
2001 . . . . . . . . . . . . . . 1 2.97 0.80 2 1.56 0.74 2 1.01 0.69
2002 . . . . . . . . . . . . . . 4 2.00 0.69 5 0.95 0.60 6 0.61 0.53
2003 . . . . . . . . . . . . . . 13 1.39 0.47 16 0.58 0.35 20 0.32 0.26
2004 . . . . . . . . . . . . . . 8 2.78 0.84 11 1.10 0.52 13 0.57 0.31
2005 . . . . . . . . . . . . . . 12 4.99 1.63 15 1.93 0.79 18 0.77 0.30
2006 . . . . . . . . . . . . . . 11 9.32 2.70 15 3.48 1.14 18 1.05 0.25
2007 . . . . . . . . . . . . . . 14 10.47 2.24 19 3.46 0.63 20 0.45 0.02
2008 . . . . . . . . . . . . . . 12 3.38 0.37 15 0.56 0.02 — — —
2009 . . . . . . . . . . . . . . 23 0.05 — — — — — — —
Total
(2)
. . . . . . . . . . . . 100% 3.87 100% 1.72 100% 0.65
(1) Excluding Structured Transactions, those Structured Securities backed by Ginnie Mae Certificates and other guarantees backed by HFA bonds.
(2) Represents the cumulative transition rate of loans to a default event, and is calculated for each year of origination as the number of loans that have
proceeded to foreclosure acquisition or other disposition events during the period from origination to December 31, 2009, 2008 and 2007, respectively,
excluding liquidations through voluntary pay-off, divided by the number of loans in our single-family mortgage portfolio. Excludes certain Structured
Transactions for which data is unavailable.
167 Freddie Mac