Freddie Mac 2009 Annual Report Download - page 329

GLOSSARY
The Glossary includes acronyms and defined terms that are used throughout this Form 10-K.
Acronyms
AMT Alternative Minimum Tax
AOCI Accumulated other comprehensive income (loss), net of taxes
COSO Committee of Sponsoring Organizations of the Treadway Commission
Euribor Euro Interbank Offered Rate
FASB Financial Accounting Standards Board
FDIC Federal Deposit Insurance Corporation
FHA Federal Housing Administration
FHLB Federal Home Loan Bank
GAAP Generally accepted accounting principles
HFA Housing Finance Agency
IRR Internal Rate of Return
IRS Internal Revenue Service
LIBOR London Interbank Offered Rate
MD&A Management’s Discussion and Analysis of Financial Condition and Results of Operations
NIBI New Issue Bond Initiative
NYSE New York Stock Exchange
OTC Over-the-counter
REIT Real estate investment trust
S&P Standard & Poor’s
SEC Securities and Exchange Commission
SIFMA Securities Industry and Financial Markets Association
TBA To be announced
TCLFI Temporary Credit Liquidity Facilities Initiative
VA Department of Veteran Affairs
Defined Terms
Agency securities — Generally refers to mortgage-related securities issued by the GSEs or government agencies.
Alt-A loan — Although there is no universally accepted definition of Alt-A, many mortgage market participants classify
single-family loans with credit characteristics that range between their prime and subprime categories as Alt-A because these
loans have a combination of characteristics of each category, may be underwritten with lower or alternative income or asset
documentation requirements compared to a full documentation mortgage loan, or both. In determining our Alt-A exposure on
loans underlying our single-family mortgage portfolio, we classified mortgage loans as Alt-A if the lender that delivers them
to us classified the loans as Alt-A, or if the loans had reduced documentation requirements, as well as a combination of
certain credit characteristics and expected performance characteristics at acquisition which, when compared to full
documentation loans in our portfolio, indicate that the loan should be classified as Alt-A. There are circumstances where
loans with reduced documentation are not classified as Alt-A because the loans were part of a refinancing of a pre-existing
full documentation loan that we already guaranteed or the loans fall within various programs which we believe support not
classifying the loans as Alt-A. For our non-agency mortgage-related securities that are backed by Alt-A loans, we classified
securities as Alt-A if the securities were labeled as Alt-A when sold to us.
Adjustable-rate mortgage (ARM) — A mortgage loan with an interest rate that adjusts periodically over the life of the
mortgage loan based on changes in a benchmark index.
Basis points (BPS) — One one-hundredth of 1%. This term is commonly used to quote the yields of debt instruments or
movements in interest rates.
Buy-downs — Up-front payments that are made to us in connection with the formation of a PC that decrease (i.e., partially
prepay) the guarantee fee we will receive over the life of the PC.
Buy-ups — Up-front payments made by us in connection with the formation of a PC that increase the guarantee fee we will
receive over the life of the PC.
Cash and other investments portfolio — Our cash and other investments portfolio is comprised of our cash and cash
equivalents, federal funds sold and securities purchased under agreements to resell and investments in non-mortgage-related
securities.
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