Freddie Mac 2010 Annual Report Download - page 109

Table 35 provides additional details regarding our issued and guaranteed mortgage-related securities.
Table 35 — Freddie Mac Mortgage-Related Securities by Class Type
(1)
2010 2009 2008
December 31,
(in millions)
Held by Freddie Mac:
Single-Class ............................................................. $ 157,752 $ 255,171 $ 293,597
Multiclass .............................................................. 105,851 119,444 130,927
Total held by Freddie Mac
(2)
................................................... 263,603 374,615 424,524
Held by third parties:
Single-Class ............................................................. 1,020,200 1,031,869 865,375
Multiclass .............................................................. 429,115 448,329 517,654
Total held by third parties ..................................................... 1,449,315 1,480,198 1,383,029
Total Freddie Mac mortgage-related securities
(2)
.................................... $1,712,918 $1,854,813 $1,807,553
(1) Based on UPB of the securities and excludes mortgage-related securities traded, but not yet settled.
(2) Beginning January 1, 2010, includes single-family single-class and certain multiclass securities held by us, which are recorded as extinguishments of
debt securities of consolidated trusts on our consolidated balance sheets. Prior to 2010, all Freddie Mac mortgage-related securities held by us were
accounted for as investments in securities on our consolidated balance sheets. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES” for a discussion of our significant accounting policies related to our investments in securities and debt securities of consolidated trusts.
Table 36 presents issuances and extinguishments of the debt securities of our consolidated trusts during 2010 as well as
the UPB of consolidated trusts held by third parties.
Table 36 — Issuances and Extinguishments of Debt Securities of Consolidated Trusts
(1)
Year Ended
December 31, 2010
(in millions)
Beginning balance of debt securities of consolidated trusts held by third parties . ................................ $1,564,093
Issuances to third parties of debt securities of consolidated trusts:
Issuances based on underlying mortgage product type:
30-year or more, amortizing fixed-rate .......................................................... 255,101
20-year amortizing fixed-rate . . . . . . .......................................................... 24,293
15-year amortizing fixed-rate . . . . . . .......................................................... 78,316
Adjustable-rate . . . ....................................................................... 15,869
Interest-only ........................................................................... 845
FHA/VA . . ............................................................................ 1,429
Debt securities of consolidated trusts retained by us at issuance . . ....................................... (15,725)
Net issuances of debt securities of consolidated trusts . ............................................. 360,128
Reissuances of debt securities of consolidated trusts previously held by us
(2)
.................................. 51,209
Total issuances to third parties of debt securities of consolidated trusts . . ................................ 411,337
Extinguishments, net
(3)
........................................................................ (458,429)
Ending balance of debt securities of consolidated trusts held by third parties . . . ................................ $1,517,001
(1) Based on UPB.
(2) Represents our sales of PCs and certain Other Guarantee Transactions previously held by us.
(3) Represents: (a) UPB of our purchases from third parties of PCs and Other Guarantee Transactions issued by our consolidated trusts; (b) principal
repayments related to PCs and Other Guarantee Transactions issued by our consolidated trusts; and (c) certain remittance amounts associated with our
trust security administration that are payable to third-party mortgage-related security holders as of December 31, 2010.
Other Liabilities
Other liabilities consist of the guarantee obligation, the reserve for guarantee losses on non-consolidated trusts and other
mortgage-related financial guarantees, servicer advanced interest payable and certain other servicer liabilities, accounts
payable and accrued expenses, payables related to securities, and other miscellaneous liabilities. Upon consolidation of our
single-family PC trusts and certain Other Guarantee Transactions, the guarantee obligation and related reserve for guarantee
losses do not have a material effect on our financial position and are, therefore, included in other liabilities on our
consolidated balance sheets. Our guarantee obligation declined to $625 million as of December 31, 2010 from $12.5 billion
as of December 31, 2009, primarily because we no longer recognize a guarantee obligation on PCs and certain Other
Guarantee Transactions that are issued by consolidated trusts. Our reserve for guarantee losses decreased by $32.2 billion
during 2010 to $235 million as of December 31, 2010, as a result of the consolidation of our single-family PC trusts and
certain Other Guarantee Transactions. Upon consolidation, reserves for credit losses related to mortgage loans held in
consolidated securitization trusts are included in our allowance for loan losses. See “NOTE 2: CHANGE IN ACCOUNTING
PRINCIPLES” and “NOTE 23: SELECTED FINANCIAL STATEMENT LINE ITEMS” for additional information.
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