Freddie Mac 2010 Annual Report Download - page 39

information covering the three year period ended December 31, 2011), with subsequent filings due each quarter thereafter.
While we are assessing the rule’s impact on us, we currently believe compliance with the disclosure requirements will likely
present significant operational challenges for us.
Conforming Loan Limits
On September 30, 2010, Congress temporarily extended the current higher loan limits in certain high-cost areas through
September 30, 2011. The higher loan limits in certain high-cost areas were set to expire on December 31, 2010. Actual
conforming loan limits are established by FHFA for each county (or equivalent) and the loan limits for specific high-cost
areas may be lower than the maximum amounts. For a further discussion of conforming loan limits, see “Our Business.”
Energy Loan Tax Assessment Programs
A number of states have enacted laws allowing localities to create energy loan assessment programs for the purpose of
financing energy efficient home improvements. These programs are typically denominated as Property Assessed Clean
Energy, or PACE, programs. While the specific terms may vary, these laws generally treat the new energy assessments like
property tax assessments, which generally create a new lien to secure the assessment that is senior to any existing first
mortgage lien. These laws could have a negative impact on Freddie Mac’s credit losses, to the extent a large number of
borrowers obtain this type of financing.
On July 6, 2010, FHFA announced that it had determined that certain of these programs present significant safety and
soundness concerns that must be addressed by the GSEs. FHFA directed Freddie Mac and Fannie Mae to waive the uniform
mortgage document prohibitions against senior liens for any homeowner who obtained a PACE or PACE-like loan with a first
priority lien before July 6, 2010 and, in addressing PACE programs with first liens, to undertake actions that protect their
safe and sound operation.
On August 31, 2010, we released a new directive to our seller/servicers in which we reinforced our long-standing
requirement that mortgages sold to us must be and remain in the first-lien position, while also providing guidance on our
requirements for refinancing loans that were originated with PACE obligations before July 6, 2010.
We are subject to lawsuits relating to PACE programs. See “NOTE 21: LEGAL CONTINGENCIES” for additional
information. Legislation has been introduced in the Senate and the House of Representatives that would require Freddie Mac
and Fannie Mae to adopt standards that support PACE programs.
For more information regarding legislative and regulatory developments that could impact our business, see “RISK
FACTORS — Legal and Regulatory Risks.”
Employees
At February 11, 2011, we had 5,231 full-time and 78 part-time employees. Our principal offices are located in McLean,
Virginia.
Available Information
SEC Reports
We file reports and other information with the SEC. In view of the Conservator’s succession to all of the voting power
of our stockholders, we do not expect to prepare or provide proxy statements for the solicitation of proxies from stockholders
during the conservatorship. We make available free of charge through our website at www.freddiemac.com our annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all other SEC reports and amendments to
those reports as soon as reasonably practicable after we electronically file the material with, or furnish it to, the SEC. In
addition, materials that we filed with the SEC are available for review and copying free of charge at the SEC’s Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an internet site (www.sec.gov) that
contains reports, proxy and information statements, and other information regarding companies that file electronically with
the SEC.
We are providing our website addresses and the website address of the SEC here or elsewhere in this annual report on
Form 10-K solely for your information. Information appearing on our website or on the SEC’s website is not incorporated
into this annual report on Form 10-K.
Information about Certain Securities Issuances by Freddie Mac
Pursuant to SEC regulations, public companies are required to disclose certain information when they incur a material
direct financial obligation or become directly or contingently liable for a material obligation under an off-balance sheet
arrangement. The disclosure must be made in a current report on Form 8-K under Item 2.03 or, if the obligation is incurred
in connection with certain types of securities offerings, in prospectuses for that offering that are filed with the SEC.
36 Freddie Mac