Freddie Mac 2010 Annual Report Download - page 121

underwriting standards, which has significantly reduced the amount of subprime, option ARM, interest-only and Alt-A loans
being originated.
Conditions in the mortgage market continued to remain challenging during 2010. All types of single-family mortgage
loans have been affected by the compounding pressures on household wealth caused by declines in home values that began
in 2006 and the ongoing weak employment environment. Our serious delinquency rates remained high in 2010, primarily due
to economic factors which adversely affected borrowers. Contributing to this increase were: (a) delays related to servicer
processing capacity constraints; (b) delays associated with the HAMP trial period and related processes; and (c) delays in the
foreclosure process, including those associated with deficiencies in foreclosure documentation practices, those imposed by
third parties, and our own temporary suspensions of foreclosure transfers. Although the UPB of our single-family non-
performing loans continued to increase during 2010, the number of loans that transitioned to serious delinquency gradually
declined during the same period, though it remained high.
Characteristics of the Single-Family Credit Guarantee Portfolio
The average UPB of loans in our single-family credit guarantee portfolio was approximately $150,000 at both
December 31, 2010 and December 31, 2009, respectively. Table 42 provides additional characteristics of single-family
mortgage loans purchased during the years ended December 31, 2010, 2009, and 2008, and of our single-family credit
guarantee portfolio at December 31, 2010, 2009, and 2008.
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