Freddie Mac 2009 Annual Report Download - page 258

the right to repledge the securities underlying our financing to other third parties, including the Federal Reserve Bank. We
pledge collateral to meet these requirements upon demand by the respective counterparty.
Table 6.10 summarizes all securities pledged as collateral by us, including assets that the secured party may repledge
and those that may not be repledged as well as the related liability recorded on our consolidated balance sheet that caused
the need to post collateral.
Table 6.10 — Collateral in the Form of Securities Pledged
2009 2008
December 31,
(in millions)
Securities pledged with ability for secured party to repledge:
Available-for-sale securities . . .............................................................. $10,879 $21,302
Securities pledged without ability for secured party to repledge:
Available-for-sale securities . . .............................................................. 302 1,050
Total securities pledged . . . . . . . .............................................................. $11,181 $22,352
Securities Pledged with the Ability of the Secured Party to Repledge
At December 31, 2009, we pledged securities with the ability of the secured party to repledge of $10.9 billion, of which
$10.8 billion was collateral posted in connection with our uncommitted intraday line of credit with a third party as discussed
above. At December 31, 2008, we pledged securities with the ability of the secured party to repledge of $21.3 billion, of
which $20.7 billion was collateral posted in connection with our two uncommitted intraday lines of credit with third parties
as discussed above. There were no borrowings against the lines of credit at December 31, 2009 or 2008. The remaining
$0.1 billion and $0.6 billion of collateral posted with the ability of the secured party to repledge at December 31, 2009 and
2008, respectively, was posted in connection with our futures transactions.
Securities Pledged without the Ability of the Secured Party to Repledge
At December 31, 2009 and 2008, we pledged securities without the ability of the secured party to repledge of
$0.3 billion and $1.1 billion, respectively, at a clearinghouse in connection with our futures transactions.
Collateral in the Form of Cash Pledged
At December 31, 2009, we pledged $5.8 billion of collateral in the form of cash of which $5.6 billion related to our
interest rate swap agreements as we had $6.0 billion of such derivatives in a net loss position. At December 31, 2008, we
pledged $6.4 billion of collateral in the form of cash of which $5.8 billion related to our interest rate swap agreements as we
had $6.1 billion of such derivatives in a net loss position. The remaining $0.2 billion and $0.6 billion was posted at
clearinghouses in connection with our securities transactions at December 31, 2009 and 2008, respectively.
NOTE 7: MORTGAGE LOANS AND LOAN LOSS RESERVES
We own both single-family mortgage loans, which are secured by one to four family residential properties, and
multifamily mortgage loans, which are secured by properties with five or more residential rental units. We principally
purchase single-family loans as held-for-sale in cash-based exchanges where our intent is to securitize and sell our PCs at
auction to investors. We purchase single-family loans designated as held-for-investment when we make required or optional
repurchases of mortgages out of our PCs. Historically, we purchased multifamily loans as held-for-investment and have been
a buy and hold investor. In 2008 and 2009 we increased our purchases of multifamily loans designated as held-for-sale to
facilitate greater volumes of securitization transactions.
Table 7.1 summarizes the types of loans on our consolidated balance sheets as of December 31, 2009 and 2008. These
balances do not include mortgage loans underlying our issued PCs and Structured Securities, since these are not consolidated
on our balance sheets. See “NOTE 3: FINANCIAL GUARANTEES AND MORTGAGE SECURITIZATIONS” for
information on our securitized mortgage loans.
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