Freddie Mac 2014 Annual Report Download - page 34

29 Freddie Mac
Among other requirements, the Advisory Bulletin requires that we classify the portion of an outstanding single-family
loan balance in excess of the fair value of the underlying property, less costs to sell and adjusted for any credit enhancements,
as a “loss” no later than when the loan becomes 180 days delinquent, except in certain specified circumstances (where our
servicers are actively working with the borrowers on alternatives to allow them to stay in their homes and our data supports that
the loans are not yet uncollectible). The Advisory Bulletin also requires us to charge off the portion of the loan classified as a
“loss.” Prior to our adoption of the charge-off provisions of the Advisory Bulletin, we deemed a loan uncollectible at the time
of foreclosure or other liquidation event (such as a deed-in-lieu of foreclosure or a short sale).
In May 2013, FHFA issued an additional Advisory Bulletin clarifying the implementation timeline for AB 2012-02,
requiring that: (a) the asset classification provisions of AB 2012-02 should be implemented by January 1, 2014; and (b) the
charge-off provisions of AB 2012-02 should be implemented no later than January 1, 2015. Effective January 1, 2014, we
implemented the asset classification provisions of AB 2012-02, and we provide FHFA with this information on a quarterly
basis. Effective January 1, 2015, we implemented the charge-off provisions.
Our adoption of the Advisory Bulletin did not have a material effect on our financial position or results of operations. As
a result of our implementation of the Advisory Bulletin as of January 2015, our allowance for loan losses on the affected loans
was eliminated and the corresponding recorded investment was reduced by the amount charged off.
Employees
At February 5, 2015, we had 4,957 full-time and 50 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 have not prepared or provided proxy statements for the solicitation of proxies from stockholders since we
entered into conservatorship, and do not expect to do so while we remain in 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 file with the SEC are available for
review and copying 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 Form 10-K solely
for your information. Information appearing on our website or on the SEC’s website is not incorporated into this 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.
Freddie Mac’s securities offerings are exempted from SEC registration requirements. As a result, we do not file
registration statements or prospectuses with the SEC with respect to our securities offerings. To comply with the disclosure
requirements of Form 8-K relating to the incurrence of material financial obligations, we report these types of obligations either
in offering circulars (or supplements thereto) that we post on our website or in a current report on Form 8-K, in accordance
with a “no-action” letter we received from the SEC staff. In cases where the information is disclosed in an offering circular
posted on our website, the document will be posted within the same time period that a prospectus for a non-exempt securities
offering would be required to be filed with the SEC.
The website address for disclosure about our debt securities is www.freddiemac.com/debt. From this address, investors
can access the offering circular and related supplements for debt securities offerings under Freddie Mac’s global debt facility,
including pricing supplements for individual issuances of debt securities. Similar information about our STACR debt securities
is available at www.freddiemac.com/creditriskofferings.
Disclosure about the mortgage-related securities we issue, some of which are off-balance sheet obligations, can be found
at www.freddiemac.com/mbs. From this address, investors can access information and documents about our mortgage-related
securities, including offering circulars and related offering circular supplements.
Forward-Looking Statements
We regularly communicate information concerning our business activities to investors, the news media, securities
analysts, and others as part of our normal operations. Some of these communications, including this Form 10-K, contain
“forward-looking statements.” Examples of forward-looking statements include, but are not limited to, statements pertaining to
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