Freddie Mac 2009 Annual Report Download - page 321
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NOTE 22: SUBSEQUENT EVENTS
On February 10, 2010, we announced that we will purchase substantially all single-family mortgage loans that are
120 days or more delinquent from our PCs and Structured Securities. The decision to effect these purchases was made based
on a determination that the cost of guarantee payments to the security holders will exceed the cost of holding non-
performing loans on our consolidated balance sheets. The cost of holding non-performing loans on our consolidated balance
sheets was significantly affected by the required adoption of new amendments to accounting standards and changing
economics. Due to our January 1, 2010 adoption of new accounting standards for transfers of financial assets and the
consolidation of VIEs, the cost of purchasing most delinquent loans from PCs will be less than the cost of continued
guarantee payments to security holders. We will continue to review the economics of purchasing loans 120 days or more
delinquent in the future and we may reevaluate our delinquent loan purchase practices and alter them if circumstances
warrant.
END OF CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES
318 Freddie Mac