Freddie Mac 2009 Annual Report Download - page 313

NOTE 19: CONCENTRATION OF CREDIT AND OTHER RISKS
Mortgages and Mortgage-Related Securities
Our business activity is to participate in and support the residential mortgage market in the United States, which we
pursue by both issuing guaranteed mortgage securities and investing in mortgage loans and mortgage-related securities. We
primarily invest in and securitize single-family mortgage loans. However, we also invest in and securitize multifamily
mortgage loans, which totaled $98.6 billion and $87.6 billion in unpaid principal balance as of December 31, 2009 and
2008, respectively. Approximately 29% and 30% of these multifamily loans related to properties located in the Northeast
region of the U.S. and 26% and 25% of these loans related to properties located in the West region of the U.S. as of
December 31, 2009 and 2008, respectively.
Table 19.1 summarizes the geographical concentration of single-family mortgages that are held by us or that underlie
our issued PCs and Structured Securities, excluding $0.9 billion and $1.1 billion of mortgage-related securities issued by
Ginnie Mae that back Structured Securities at December 31, 2009 and 2008, respectively, because these securities do not
expose us to meaningful amounts of credit risk. See “NOTE 6: INVESTMENTS IN SECURITIES” and
“NOTE 7: MORTGAGE LOANS AND LOAN LOSS RESERVES” for information about other concentrations in loans and
mortgage-related securities that we hold.
Table 19.1 — Concentration of Credit Risk — Single-Family Loans
Amount
(1)
Delinquency
Rate
(2)
Amount
(1)
Delinquency
Rate
(2)
2009 2008
December 31,
(dollars in millions)
Single-Family Loans:
By Region
(3)
West.......................................................... $ 511,588 5.18% $ 482,534 1.99%
Northeast . ...................................................... 468,325 3.03 447,361 1.27
North Central . . . . ................................................ 348,952 3.16 348,697 1.50
Southeast . ...................................................... 339,798 5.47 339,347 2.60
Southwest ...................................................... 233,910 2.14 231,307 1.14
$1,902,573 3.87% $1,849,246 1.72%
By State
California ...................................................... $ 283,863 5.66% $ 259,050 2.27%
Florida . . ...................................................... 122,074 10.22 125,084 4.92
Arizona . . ...................................................... 51,633 7.29 52,245 2.83
Nevada ........................................................ 22,486 11.17 23,187 4.11
Michigan . ...................................................... 59,537 3.55 61,243 1.61
All others. ...................................................... 1,362,980 N/A 1,328,437 N/A
$1,902,573 3.87% $1,849,246 1.72%
(1) Based on the unpaid principal balance of single-family mortgage loans held by us and those underlying our issued PCs and Structured Securities less
Structured Securities backed by Ginnie Mae Certificates and Structured Transactions and other guarantees of HFA bonds.
(2) Based on the number of single-family mortgages 90 days or more delinquent or in foreclosure. Delinquencies on mortgage loans underlying certain
Structured Securities and long-term standby commitments may be reported on a different schedule due to variances in industry practice. Excludes loans
underlying our Structured Transactions.
(3) Region 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); Southwest (AR, CO, KS, LA,
MO, NE, NM, OK, TX, WY).
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