Freddie Mac 2015 Annual Report Download - page 102

Management's Discussion and Analysis Risk Management | SF Credit Risk
Freddie Mac 2015 Form 10-K 100
The table below contains details on characteristics of the loans in our single-family credit guarantee
portfolio as of December 31, 2015, 2014, and 2013.
December 31,
(percentage of portfolio based on UPB) 2015 2014 2013
Original LTV Ratio Range
60% and below 20% 21% 22%
Above 60% to 80% 53% 52% 53%
Above 80% to 100% 22% 21% 19%
Above 100% 5% 6% 6%
Portfolio weighted average original LTV ratio 75% 75% 75%
Current LTV Ratio Range
60% and below 43% 39% 33%
Above 60% to 80% 37% 37% 38%
Above 80% to 100% 16% 18% 19%
Above 100% 4% 6% 10%
Portfolio weighted average current LTV ratio 63% 66% 69%
Credit Score
740 and above 59% 58% 58%
700 to 739 21% 20% 20%
660 to 699 13% 13% 13%
620 to 659 5% 6% 6%
Less than 620 2% 3% 3%
Portfolio weighted average credit score 741 740 739
Loan Purpose
Purchase 32% 30% 26%
Cash-out refinance 21% 21% 22%
Other refinance 47% 49% 52%
In addition, at December 31, 2015, 2014, and 2013:
• More than 90% of our loans were secured by detached homes or townhomes;
• Approximately 90% of our loans were secured by properties used as the borrower’s primary
residence; and
• More than 90% of our loans were fixed-rate.
At December 31, 2015, approximately 13% of our loans had second-lien financing by the originator or
other third party at origination, and these loans comprised approximately 17% of our seriously delinquent
loan population. It is likely that additional borrowers have post-origination second-lien financing.
Higher Risk Loan Attributes and Attribute Combinations
Certain of the loan attributes shown above may indicate a higher risk of default. In particular, loans with
original LTV ratios over 90% and/or credit scores below 620 at origination may be higher risk. The table
below provides information on loans in our portfolio with these characteristics. The table includes a
presentation of each higher risk category in isolation. A single loan may fall within more than one
category.