Freddie Mac 2014 Annual Report Download - page 285

280 Freddie Mac
GLOSSARY
This Glossary includes acronyms and defined terms that are used throughout this report.
1995 Employee Plan — 1995 Stock Compensation Plan, as amended
2004 Employee Plan — 2004 Stock Compensation Plan, as amended and restated June 6, 2008
2005-2008 Legacy single-family book — Consists of mortgage loans in our single-family credit guarantee portfolio that were
originated from 2005 through 2008.
ACIS — Agency Credit Insurance Structure — A risk transfer program through which we obtain insurance policies (typically
underwritten by a panel of insurers and reinsurers) that obligate the counterparties to reimburse us for specified credit events up
to an aggregate limit that are incurred on our mezzanine loss position associated with STACR debt note transactions in
exchange for our payment of periodic premiums.
Administration — Executive branch of the U.S. government.
Agency securities — Generally refers to mortgage-related securities issued by the GSEs or government agencies.
Alt-A loan — Although there is no universally accepted definition of Alt-A, many mortgage market participants classify
single-family loans with credit characteristics that range between their prime and subprime categories as Alt-A because these
loans have a combination of characteristics of each category, may be underwritten with lower or alternative income or asset
documentation requirements compared to a full documentation mortgage loan, or both. In determining our Alt-A exposure on
loans underlying our single-family credit guarantee portfolio, we classified mortgage loans as Alt-A if the lender that delivers
them to us classified the loans as Alt-A, or if the loans had reduced documentation requirements as well as a combination of
certain credit characteristics and expected performance characteristics at acquisition which, when compared to full
documentation loans in our portfolio, indicate that the loan should be classified as Alt-A. In the event we purchase a refinance
mortgage in either our relief refinance initiative or in another mortgage refinance initiative and the original loan had been
previously identified as Alt-A, such refinance loan may no longer be categorized or reported as an Alt-A mortgage in this report
and our other financial reports because the new refinance loan replacing the original loan would not be identified by the
servicer as an Alt-A loan. As a result, our reported Alt-A balances may be lower than would otherwise be the case had such
refinancing not occurred. For non-agency mortgage-related securities that are backed by Alt-A loans, we categorize our
investments in non-agency mortgage-related securities as Alt-A if the securities were identified as such based on information
provided to us when we entered into these transactions.
AOCI — Accumulated other comprehensive income (loss), net of taxes
ARM — Adjustable-rate mortgage — A mortgage loan with an interest rate that adjusts periodically over the life of the
mortgage loan based on changes in a benchmark index.
Board — Board of Directors
Bond insurers — Companies that provide credit insurance principally covering securitized assets in both the primary issuance
and secondary markets.
BPs — Basis points — One one-hundredth of 1%. This term is commonly used to quote the yields of debt instruments or
movements in interest rates.
Cash and other investments portfolio — Our cash and other investments portfolio is comprised of our cash and cash
equivalents, federal funds sold and securities purchased under agreements to resell, and investments in non-mortgage-related
securities.
CCO — Chief Compliance Officer
CD&A — Compensation Discussion and Analysis
CEB — The Corporate Executive Board Company
CEO — Chief Executive Officer
CERO — Chief Enterprise Risk Officer
CFO — Chief Financial Officer
CFPB — Consumer Financial Protection Bureau
Charge-Offs, gross — Represent the carrying amount of a loan that has been discharged in order to remove the loan from our
consolidated balance sheet at the time of resolution, regardless of when the impact of the credit loss was recorded on our
consolidated statements of comprehensive income. Charge-offs primarily result from foreclosure transfers and short sales and
are generally calculated as the recorded investment of a loan at the date it is discharged less the estimated value in final
disposition or actual net sales in a short sale.
Table of Contents