Freddie Mac 2014 Annual Report Download - page 64

59 Freddie Mac
The table below provides information about the UPB of TDRs and non-accrual mortgage loans on our consolidated
balance sheets.
Table 13 — TDRs and Non-Accrual Mortgage Loans
December 31,
2014 2013 2012 2011 2010
(in millions)
TDRs on accrual status:
Single-family $ 82,373 $ 78,033 $ 65,784 $ 44,440 $ 26,612
Multifamily 535 675 806 814 905
Subtotal —TDRs on accrual status 82,908 78,708 66,590 45,254 27,517
Non-accrual loans:
Single-family(1) 32,745 42,829 61,517 74,686 87,238
Multifamily(2) 385 628 1,488 1,889 1,750
Subtotal — non-accrual loans 33,130 43,457 63,005 76,575 88,988
Total TDRs and non-accrual mortgage loans $ 116,038 $ 122,165 $ 129,595 $ 121,829 $ 116,505
Loan loss reserves associated with:
TDRs on accrual status $ 13,749 $ 14,254 $ 12,478 $ 11,640 $ 7,195
Non-accrual loans 6,966 8,870 14,759 20,971 23,493
Total loan loss reserves associated with TDRs and non-
accrual loans $ 20,715 $ 23,124 $ 27,237 $ 32,611 $ 30,688
Year Ended December 31,
2014 2013 2012 2011 2010
(in millions)
Foregone interest income on TDR and non-accrual
mortgage loans(3):
Single-family $ 3,235 $ 3,552 $ 4,126 $ 4,369 $ 4,159
Multifamily 4 8 11 15 12
Total foregone interest income on TDR and non-accrual
mortgage loans $ 3,239 $ 3,560 $ 4,137 $ 4,384 $ 4,171
(1) Includes $18.0 billion, $19.6 billion, $22.0 billion, $11.6 billion, and $3.1 billion in UPB of seriously delinquent loans classified as TDRs at
December 31, 2014, 2013, 2012, 2011, and 2010, respectively.
(2) Includes $0.4 billion, $0.6 billion, $1.4 billion, $1.8 billion, and $1.6 billion in UPB of loans that were current as of December 31, 2014, 2013, 2012,
2011, and 2010, respectively.
(3) Represents the amount of interest income that we would have recognized for loans outstanding at the end of each period, had the loans performed
according to their original contractual terms.
Credit Loss Performance
Our credit losses are generally measured at the conclusion of the loan and related collateral resolution process. Our
expenses associated with home retention actions (e.g., loan modifications) are generally not reflected in our credit losses. There
is also a significant lag in time from the start of loan workout activities by our servicers to the final resolution of those loans by
the completion of foreclosures (and subsequent REO sales) or foreclosure alternatives (e.g., short sales).
Our single-family charge-offs, gross, for 2014 and 2013 were associated with approximately $11.0 billion and $21.2
billion in UPB of loans, respectively. Our single-family charge-offs, gross, were significantly lower in 2014 compared to 2013
primarily due to lower volumes of foreclosures and foreclosure alternatives. Single-family charge-offs, net, in 2014 and 2013
include recoveries of $0.3 billion and $2.1 billion, respectively, related to settlement agreements with certain sellers to release
specified loans from certain repurchase obligations in exchange for one-time cash payments. We expect our charge-offs and
credit losses in 2015 to be lower than in 2014, but to remain elevated due to the substantial number of delinquent and
underwater single-family mortgage loans in our single-family credit guarantee portfolio that will likely be resolved. See
"BUSINESS — Regulation and Supervision — Legislative and Regulatory Developments — FHFA Advisory Bulletin" for
information about our adoption of an FHFA advisory bulletin and its effect on future charge-offs and credit losses.
The table below provides detail on our credit loss performance associated with mortgage loans and REO assets on our
consolidated balance sheets and loans underlying our non-consolidated mortgage-related financial guarantees.
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