Freddie Mac 2015 Annual Report Download - page 399

Glossary
Freddie Mac 2015 Form 10-K 397
IRS - Internal Revenue Service
K Certificates - Structured pass-through certificates backed primarily by recently originated multifamily
loans purchased by Freddie Mac.
Legacy single-family book - Consists of loans in our single-family credit guarantee portfolio that were
originated in 2008 and prior.
LIBOR - London Interbank Offered Rate
LIHTC partnerships - Low-income housing tax credit partnerships - Prior to 2008, we invested in LIHTC
partnerships as a limited partner. These LIHTC partnerships invest directly in limited partnerships that
own and operate affordable multifamily rental properties that generate federal income tax credits and
deductible operating losses.
Liquidation preference - Generally refers to an amount that holders of preferred securities are entitled to
receive out of available assets upon liquidation of a company. The initial liquidation preference of our
senior preferred stock was $1.0 billion. The aggregate liquidation preference of our senior preferred stock
includes the initial liquidation preference plus amounts funded by Treasury under the Purchase
Agreement. In addition, dividends not paid in cash are added to the liquidation preference of the senior
preferred stock. We may make payments to reduce the liquidation preference of the senior preferred
stock only in limited circumstances.
Liquidity and contingency operating portfolio - Subset of our cash and other investments portfolio.
Consists of non-mortgage-related assets, including cash and cash equivalents, securities purchased
under agreements to resell, and non-mortgage-related securities.
Long-term debt - Other debt due after one year based on the original contractual maturity of the debt
instrument. Our long-term debt issuances include medium-term notes, Reference Notes® securities, and
STACR debt notes.
LTV ratio - Loan-to-value ratio - The ratio of the unpaid principal amount of a loan to the value of the
property that serves as collateral for the loan, expressed as a percentage. We report LTV ratios based
solely on the amount of the loan purchased or guaranteed by us, generally excluding any second-lien
loans (unless we own or guarantee the second lien).
Management and guarantee fee - The fee that we receive for guaranteeing the payment of principal and
interest to mortgage security investors, which consists primarily of a combination of management and
guarantee fees paid on a monthly basis, as a percentage of the UPB of the underlying loans, and initial
upfront payments, such as delivery fees.
MD&A - Management’s Discussion and Analysis of Financial Condition and Results of Operations
MHA Program - Making Home Affordable Program - Formerly known as the Housing Affordability and
Stability Plan, the MHA Program was announced by the Administration in February 2009. The MHA
Program is designed to help in the housing recovery, promote liquidity and housing affordability, expand
foreclosure prevention efforts, and set market standards. The MHA Program includes HARP and HAMP.
Mortgage assets - Refers to both loans and the mortgage-related securities we hold in our mortgage-
related investments portfolio.