Freddie Mac 2014 Annual Report Download - page 179

174 Freddie Mac
Table 5.3 — Delinquency Rates
December 31, 2014 December 31, 2013
Single-family:(1)
Non-credit-enhanced portfolio
Serious delinquency rate 1.74% 2.09%
Total number of seriously delinquent loans 150,300 190,119
Credit-enhanced portfolio:(2)
Primary mortgage insurance:
Serious delinquency rate 3.10% 4.40%
Total number of seriously delinquent loans 38,595 51,600
Other credit protection:(3)
Serious delinquency rate 1.21% 3.66%
Total number of seriously delinquent loans 12,175 15,828
Total single-family:
Serious delinquency rate 1.88% 2.39%
Total number of seriously delinquent loans 200,069 255,325
Multifamily:(4)
Non-credit-enhanced portfolio:
Delinquency rate 0.02% 0.07%
UPB of delinquent loans (in millions) $ 11 $ 46
Credit-enhanced portfolio:
Delinquency rate 0.05% 0.11%
UPB of delinquent loans (in millions) $ 44 $ 75
Total Multifamily:
Delinquency rate 0.04% 0.09%
UPB of delinquent loans (in millions) $ 55 $ 121
(1) Serious delinquencies on single-family mortgage loans underlying certain REMICs and Other Structured Securities, Other Guarantee Transactions, and
other guarantee commitments may be reported on a different schedule due to variances in industry practice. In the third quarter of 2014, we revised our
presentation of single-family non-credit enhanced and credit-enhanced serious delinquency rates. This revision did not impact our total single-family
serious delinquency rate. Prior periods have been revised to conform with the current presentation.
(2) The credit enhanced categories are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and other credit
protection.
(3) Consists of single-family mortgage loans covered by financial arrangements (other than primary mortgage insurance) that are designed to reduce our
credit risk exposure. See "Table 4.5 — Recourse and Other Forms of Credit Protection" for more information.
(4) Multifamily delinquency performance is based on UPB of mortgage loans that are two monthly payments or more past due or those in the process of
foreclosure and includes multifamily Other Guarantee Transactions (e.g., K Certificates).
We continue to implement a number of initiatives to refinance and modify loans, including the MHA Program and the
servicing alignment initiative. Our implementation of the MHA Program, for our loans, includes the following: (a) an initiative
to allow mortgages currently owned or guaranteed by us to be refinanced without obtaining additional credit enhancement
beyond that already in place for the loan (i.e., our relief refinance mortgage, which is our implementation of HARP); (b) an
initiative to modify mortgages for both homeowners who are in default and those who are at risk of imminent default (i.e.,
HAMP); and (c) an initiative designed to permit borrowers who meet basic HAMP eligibility requirements to sell their homes
in short sales or to complete a deed in lieu of foreclosure transaction. As part of accomplishing certain of these initiatives, we
pay various incentives to servicers and borrowers. Except as described below, we bear the full costs associated with these loan
workout and foreclosure alternatives on mortgages that we own or guarantee, including the cost of any monthly payment
reductions, and do not receive any reimbursement from Treasury. In addition, in January 2015, at the instruction of FHFA, we
implemented a new $5,000 principal reduction incentive payable to eligible borrowers who remain in good standing on their
HAMP modified loans through the sixth anniversary of their modification. Treasury will pay the $5,000 incentive for certain of
our eligible HAMP modified loans, and we will pay the $5,000 incentive on our other eligible HAMP modified loans.
HAMP and HARP are scheduled to end in December 2015. In June 2014, Treasury announced that HAMP would be
extended for at least another year. However, it is still not known if FHFA will direct us to extend our version of HAMP as well.
Troubled Debt Restructurings
Single-Family TDRs
We require our single-family servicers to contact borrowers who are in default and to evaluate loan workout options in
accordance with our requirements. We establish guidelines for our servicers to follow and provide them default management
programs designed to help them manage non-performing loans more effectively and to assist borrowers in maintaining home
ownership, or facilitate foreclosure alternatives when continued homeownership is not practicable. We require our single-
family servicers first to evaluate problem loans for a repayment or forbearance plan before considering modification. If a
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