Freddie Mac 2014 Annual Report Download - page 115

110 Freddie Mac
Table 49 — Single-Family Relief Refinance Loans(1)
Year Ended December 31, 2014 Year Ended December 31, 2013
UPB Number of
Loans Average Loan Balance(2) UPB Number of Loans Average Loan Balance(2)
(dollars in millions, except for average loan balances)
Purchases of relief refinance mortgages:
HARP:
Above 125% LTV ratio $ 1,439 8,794 $ 164,000 $ 11,574 62,652 $ 185,000
Above 100% to 125% LTV ratio 4,295 24,113 178,000 21,005 110,302 190,000
Above 80% to 100% LTV ratio 8,356 49,340 169,000 29,958 167,420 179,000
Other (80% and below LTV ratio) 13,204 96,409 137,000 36,658 270,138 136,000
Total relief refinance mortgages $ 27,294 178,656 153,000 $ 99,195 610,512 162,000
As of December 31, 2014 As of December 31, 2013
UPB Number of
Loans
Serious
Delinquency
Rate UPB Number of
Loans
Serious
Delinquency
Rate
(dollars in millions)
Balance of relief refinance mortgages:
HARP:
Above 125% LTV ratio $ 30,233 162,299 1.36% $ 30,579 158,531 0.90%
Above 100% to 125% LTV ratio 66,091 346,220 1.19 68,416 344,832 1.01
Above 80% to 100% LTV ratio 109,618 609,239 0.93 114,688 610,128 0.85
Other (80% and below LTV ratio) 125,158 957,435 0.36 127,991 936,038 0.32
Total relief refinance mortgages $ 331,100 2,075,193 0.75 $ 341,674 2,049,529 0.64
(1) Includes purchases of mortgage loans for securitization that were previously associated with other guarantee commitments.
(2) Rounded to the nearest thousand.
For more information on relief refinance loans, including HARP, in our single-family credit guarantee portfolio, see
"Table 43 — Single-Family Credit Guarantee Portfolio Data by Year of Origination," and "Table 40 — Characteristics of
Purchases for the Single-Family Credit Guarantee Portfolio."
The UPB of loans in our single-family credit guarantee portfolio for which we have completed a loan modification
increased to $85.1 billion as of December 31, 2014 from $81.7 billion as of December 31, 2013, and such loans comprised
approximately 4.1% and 3.8% of the portfolio at those dates. For the year ended December 31, 2014, approximately 44% of our
loan modifications were related to loans which were 180 days or more delinquent prior to the modification effective date. The
estimated weighted average current LTV ratio for all modified loans in our single-family credit guarantee portfolio was 93% at
December 31, 2014. The serious delinquency rate on these loans was 12.28% as of December 31, 2014.
During 2014, approximately 67,000 borrowers (including 15,000 borrowers in the fourth quarter of 2014) having loans
with aggregate UPB of $12.8 billion completed modifications under all of our programs, and as of December 31, 2014,
approximately 24,000 borrowers were in the modification trial period. Both our loan modification volume and the number of
seriously delinquent loans remaining in the portfolio declined during 2014 compared to 2013, primarily due to lower volumes
of single-family loans becoming seriously delinquent in 2014.
In recent years, our non-HAMP modifications have represented the majority of our modification volume. The portion of
our modification volume that is HAMP-related continued to decline in 2014 primarily due to the decline in the number of
borrowers eligible for HAMP.
During 2014, approximately 55,000 borrowers completed a non-HAMP loan modification. As of December 31, 2014, the
percentage of our non-HAMP modifications that were completed in 2012 and 2013 that were seriously delinquent, proceeded to
foreclosure transfer, completed a short sale, or were remodified was approximately 23% and 16%, respectively.
We incurred $112 million and $153 million of servicer incentive expenses on modified loans (both HAMP and non-
HAMP) during 2014 and 2013, respectively. We also pay certain incentives to borrowers who continue to perform under their
HAMP modifications, which are included within our provision for credit losses on our consolidated statements of
comprehensive income.
The table below presents volumes of completed loan workouts, seriously delinquent loans, and foreclosures in our single-
family credit guarantee portfolio for 2014, 2013, and 2012.
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