Freddie Mac 2014 Annual Report Download - page 178

173 Freddie Mac
(2) Individually impaired single-family loans with no specific related valuation allowance primarily represent mortgage loans removed from PC pools and
accounted for in accordance with the accounting guidance for loans and debt securities acquired with deteriorated credit quality that have not
experienced further deterioration.
(3) Consists primarily of mortgage loans classified as TDRs.
(4) Individually impaired multifamily loans with no specific related valuation allowance primarily represent those loans for which the collateral value is
sufficiently in excess of the loan balance to result in recovery of the entire recorded investment if the property were foreclosed upon or otherwise
subject to disposition.
Mortgage Loan Performance
The table below presents the recorded investment of our single-family and multifamily mortgage loans, held-for-
investment, by payment status.
Table 5.2 — Payment Status of Mortgage Loans
December 31, 2014
Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure Total Non-accrual
(in millions)
Single-family:
20 and 30-year or more, amortizing fixed-rate $ 1,207,826 $ 17,516 $ 5,817 $ 23,436 $ 1,254,595 $ 23,433
15-year amortizing fixed-rate 280,629 1,010 216 682 282,537 682
Adjustable-rate 66,737 406 118 612 67,873 612
Alt-A, interest-only, and option ARM 53,251 2,368 948 7,048 63,615 7,045
Total single-family 1,608,443 21,300 7,099 31,778 1,668,620 31,772
Total multifamily 41,335 7 11 — 41,353 385
Total single-family and multifamily $ 1,649,778 $ 21,307 $ 7,110 $ 31,778 $ 1,709,973 $ 32,157
December 31, 2013
Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure Total Non-accrual
(in millions)
Single-family:
20 and 30-year or more, amortizing fixed-rate $ 1,157,057 $ 19,743 $ 6,675 $ 29,635 $ 1,213,110 $ 29,620
15-year amortizing fixed-rate 293,286 1,196 271 864 295,617 863
Adjustable-rate 62,987 495 147 871 64,500 871
Alt-A, interest-only, and option ARM 62,356 2,898 1,157 10,169 76,580 10,162
Total single-family 1,575,686 24,332 8,250 41,539 1,649,807 41,516
Total multifamily 50,827 — 21 26 50,874 627
Total single-family and multifamily $ 1,626,513 $ 24,332 $ 8,271 $ 41,565 $ 1,700,681 $ 42,143
We have the option under our PC master trust agreement to remove mortgage loans that underlie our PCs under certain
circumstances to resolve an existing or impending delinquency or default. Our practice generally has been to remove loans
from PC trusts when the loans have been delinquent for 120 days or more. As of December 31, 2014, there were $0.8 billion in
UPB of loans underlying our PCs that were 120 days or more delinquent, and that met our criteria for removing the loan from
the PC trust. Generally, we remove these delinquent loans from the PC trust, and thereby extinguish the related PC debt at the
next scheduled PC payment date, unless the loans proceed to foreclosure transfer, complete a foreclosure alternative or are paid
in full by the borrower before such date.
When we remove mortgage loans from PC trusts, we reclassify the loans from mortgage loans held-for-investment by
consolidated trusts to unsecuritized mortgage loans held-for-investment and record an extinguishment of the corresponding
portion of the debt securities of the consolidated trusts. We removed $11.2 billion and $18.2 billion in UPB of loans from PC
trusts (or purchased delinquent loans associated with other guarantee commitments) during the years ended December 31, 2014
and 2013, respectively.
The table below summarizes the delinquency rates of mortgage loans within our single-family credit guarantee and
multifamily mortgage portfolios.
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