Freddie Mac 2015 Annual Report Download - page 243

Financial Statements Notes to the Consolidated Financial Statements | Note 4
Freddie Mac 2015 Form 10-K 241
The table below presents the volume of single-family and multifamily loans that were newly classified as
TDRs during the years ended December 31, 2015 and 2014, based on the original category of the loan
before the loan was classified as a TDR. Loans classified as a TDR in one period may be subject to
further action (such as a modification or remodification) in a subsequent period. In such cases, the
subsequent action would not be reflected in the table below since the loan would already have been
classified as a TDR.
Year Ended December 31,
2015 2014
(dollars in millions) Number of Mortgage Loans
Post-TDR
Recorded
Investment Number of Mortgage Loans
Post-TDR
Recorded
Investment
Single-family:(1)
20 and 30-year or more, amortizing
fixed-rate 46,641 $ 6,627 68,186 $10,172
15-year amortizing fixed-rate 5,806 419 7,189 528
Adjustable-rate 1,335 195 1,849 285
Alt-A, interest-only, and option ARM 7,143 1,146 9,112 1,865
Total single-family 60,925 8,387 86,336 12,850
Multifamily 1 30 215
Total 60,926 $ 8,417 86,338 $12,865
(1) The pre-TDR recorded investment for single-family loans initially classified as TDR during the years ended December 31,
2015 and 2014 was $8.4 billion and $12.8 billion, respectively.
The table below presents the volume of our TDR modifications that experienced payment defaults (i.e.,
loans that became two months delinquent or completed a loss event) during the applicable periods and
had completed a modification during the year preceding the payment default. The table presents loans
based on their original product category before modification.
Year Ended December 31,
2015 2014
(dollars in millions) Number of Mortgage Loans
Post-TDR
Recorded
Investment(1) Number of Mortgage Loans
Post-TDR
Recorded
Investment(1)
Single-family:
20 and 30-year or more, amortizing fixed-rate 18,478 $ 3,036 19,101 $ 3,384
15-year amortizing fixed-rate 900 72 645 62
Adjustable-rate 335 55 332 61
Alt-A, interest-only, and option ARM 1,955 435 2,357 564
Total single-family 21,668 $ 3,598 22,435 $ 4,071
Multifamily — $ — — $ —
In addition to modifications, loans may be initially classified as TDRs as a result of other loss mitigation
activities (i.e., repayment plans, forbearance agreements, or trial period modifications). During the years
ended December 31, 2015 and 2014, 9,492 and 9,538, respectively, of such loans (with a post-TDR
recorded investment of $1.2 billion and $1.4 billion, respectively) experienced a payment default within a
year after the loss mitigation activity occurred.
Loans may also be initially classified as TDRs because the borrowers’ debts were discharged in Chapter
7 bankruptcy (and the loan was not already classified as a TDR for other reasons). During the years
ended December 31, 2015 and 2014, 2,196 and 4,206, respectively, of such loans (with a post-TDR