Freddie Mac 2015 Annual Report Download - page 398

Glossary
Freddie Mac 2015 Form 10-K 396
Giant PCs - Resecuritizations of previously issued PCs or Giant PCs. Giant PCs are single-class
securities that involve the straight pass through of all of the cash flows of the underlying collateral to
holders of the beneficial interests.
Ginnie Mae - Government National Mortgage Association, which guarantees the timely payment of
principal and interest on mortgage-related securities backed by federally insured or guaranteed loans,
primarily those insured by FHA or guaranteed by the VA.
GSE Act - The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended
by the Reform Act.
GSEs - Government sponsored enterprises - Refers to certain legal entities created by the
U.S. government, including Freddie Mac, Fannie Mae, and the FHLBs.
Guidelines - Corporate Governance Guidelines, as revised
HAMP - Home Affordable Modification Program - Refers to the effort under the MHA Program whereby
the U.S. government, Freddie Mac and Fannie Mae commit funds to help eligible homeowners avoid
foreclosure and keep their homes through loan modifications.
HARP - Home Affordable Refinance Program - Refers to the effort under the MHA Program that seeks to
help eligible borrowers with existing loans that are guaranteed by us or Fannie Mae to refinance into
loans with more affordable monthly payments and/or fixed-rate terms without obtaining new mortgage
insurance in excess of the insurance coverage, if any, that was already in place. HARP is targeted at
borrowers with current LTV ratios above 80%. The relief refinance initiative, under which we also allow
borrowers with LTV ratios of 80% and below to participate, is our implementation of HARP for our loans.
HFA - State or local Housing Finance Agency
HFA initiative - Refers to the effort whereby we and Fannie Mae, in conjunction with Treasury, provided
assistance to state and local HFAs so that the HFAs could continue to meet their mission of providing
affordable financing for both single-family and multifamily housing. The HFA initiative included the NIBP
and the TCLFP.
HUD - U.S. Department of Housing and Urban Development - HUD has authority over Freddie Mac with
respect to fair lending.
Implied volatility - A measurement of how the value of a financial instrument changes due to changes in
the market’s expectation of potential changes in future interest rates. A decrease in implied volatility
generally increases the estimated fair value of our mortgage-related assets and decreases the estimated
fair value of our callable debt and option-based derivatives, while an increase in implied volatility
generally has the opposite effect.
Initial margin - The collateral that we post with a derivatives clearinghouse in order to do business with
such clearinghouse. The amount of initial margin varies over time.
Interest-only loan - A loan that allows the borrower to pay only interest (either fixed-rate or adjustable-
rate) for a fixed period of time before payments of principal begin. After the interest-only period, the
borrower may choose to refinance the loan, pay the principal balance in total, or begin paying the
scheduled principal payment due on the loan.