Freddie Mac 2014 Annual Report Download - page 35

30 Freddie Mac
the conservatorship, our current expectations and objectives for our single-family, multifamily, and investment businesses, our
loan workout initiatives and other efforts to assist the housing market, our liquidity and capital management, economic and
market conditions and trends, our market share, the effect of legislative and regulatory developments and new accounting
guidance, the credit quality of loans we own or guarantee, and our results of operations and financial condition on a GAAP,
Segment Earnings and fair value basis. Forward-looking statements involve known and unknown risks and uncertainties, some
of which are beyond our control. Forward-looking statements are often accompanied by, and identified with, terms such as
“objective,” “expect,” “possible,” “trend,” “forecast,” “anticipate,” “believe,” “intend,” “could,” “future,” “may,” “will,” and
similar phrases. These statements are not historical facts, but rather represent our expectations based on current information,
plans, judgments, assumptions, estimates, and projections. Actual results may differ significantly from those described in or
implied by such forward-looking statements due to various factors and uncertainties, including those described in the “RISK
FACTORS” section of this Form 10-K, and:
• the actions the U.S. government (including FHFA, Treasury, and Congress) may take, or require us to take, including
to further support the housing recovery or to implement FHFA’s Conservatorship Scorecards and other objectives for
us and Fannie Mae;
• the effect of the restrictions on our business due to the conservatorship and the Purchase Agreement, including our
dividend obligation on the senior preferred stock;
• our ability to maintain adequate liquidity to fund our operations;
• changes in our charter or in applicable legislative or regulatory requirements (including any legislation affecting the
future status of our company);
• changes in the fiscal and monetary policies of the Federal Reserve, including any changes to its policy of maintaining
sizable holdings of mortgage-related securities and any future sales of such securities;
• the success of our efforts to mitigate our losses on our Legacy single-family books and our investments in non-agency
mortgage-related securities;
• the success of our strategy to transfer mortgage credit risk through STACR debt note, ACIS and other credit risk
transfer transactions;
• our ability to maintain the security of our operating systems and infrastructure (e.g., against cyber attacks);
• changes in economic and market conditions, including changes in employment rates, interest rates, yield curves,
mortgage and debt spreads, and home prices;
• changes in the U.S. residential mortgage market, including changes in the supply and type of mortgage products (e.g.,
refinance versus purchase, and fixed-rate versus ARM);
• our ability to effectively execute our business strategies, implement new initiatives, and improve efficiency;
• the adequacy of our risk management framework;
• our ability to manage mortgage credit risks, including the effect of changes in underwriting and servicing practices;
• our ability to manage interest-rate and other market risks, including the availability of derivative financial instruments
needed for risk management purposes;
• changes or errors in the methodologies, models, assumptions and estimates we use to prepare our financial statements,
make business decisions, and manage risks;
• changes in investor demand for our debt or mortgage-related securities (e.g., single-family PCs and multifamily K
Certificates);
• changes in the practices of loan originators, investors and other participants in the secondary mortgage market; and
• other factors and assumptions described in this Form 10-K, including in the “MD&A” section.
Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any
forward-looking statements we make to reflect events or circumstances occurring after the date of this Form 10-K.
ITEM 1A. RISK FACTORS
Investing in our securities involves risks, including the risks described below and in “BUSINESS,” “MD&A,” and
elsewhere in this Form 10-K. These risks and uncertainties could, directly or indirectly, adversely affect our business, financial
condition, results of operations, cash flows, strategies and/or prospects.
Conservatorship and Related Matters
The future status and role of Freddie Mac are uncertain.
Our future is uncertain. It is likely that future legislative or regulatory action will materially affect our role, business
model, structure, and results of operations. Some or all of our functions could be transferred to other institutions, and we could
cease to exist as a stockholder-owned company or at all. If any of these events were to occur, our shares could further diminish
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