Freddie Mac 2015 Annual Report Download - page 402

Glossary
Freddie Mac 2015 Form 10-K 400
senior preferred stock, which was subsequently amended and restated on September 26, 2008 and
further amended on May 6, 2009, December 24, 2009, and August 17, 2012.
Recorded Investment - The dollar amount of a loan recorded on our consolidated balance sheets,
excluding any allowance, such as the allowance for loan losses, but including direct write-downs of the
investment. Recorded investment excludes accrued interest income.
Recoveries of charge-offs - Recoveries of charge-offs primarily result from foreclosure alternatives and
REO acquisitions on loans where a share of default risk has been assumed by mortgage insurers,
servicers, or third parties through certain credit enhancements, or we received a reimbursement of our
losses from a seller/servicer associated with a repurchase request on a loan that experienced a
foreclosure transfer or a foreclosure alternative.
Reform Act - The Federal Housing Finance Regulatory Reform Act of 2008, which, among other things,
amended the GSE Act by establishing a single regulator, FHFA, for Freddie Mac, Fannie Mae, and the
FHLBs.
REIT - Real estate investment trust
Relief refinance loan - A single-family loan delivered to us for purchase or guarantee that meets the
criteria of the Freddie Mac Relief Refinance Mortgage sm initiative. Part of this initiative is our
implementation of HARP for our loans, and relief refinance options are also available for certain non-
HARP loans. Although HARP is targeted at borrowers with current LTV ratios above 80%, our initiative
also allows borrowers with LTV ratios of 80% and below to participate.
REMIC - Real Estate Mortgage Investment Conduit - A type of multiclass mortgage-related security that
divides the cash flows (principal and interest) of the underlying mortgage-related assets into two or more
classes that meet the investment criteria and portfolio needs of different investors.
REO - Real estate owned - Real estate which we have acquired through foreclosure or through a deed in
lieu of foreclosure.
RSU - Restricted stock unit
S&P - Standard & Poor’s
SEC - Securities and Exchange Commission
Secondary mortgage market - A market consisting of institutions engaged in buying and selling loans in
the form of whole loans (i.e., loans that have not been securitized) and mortgage-related securities. We
participate in the secondary mortgage market by issuing guaranteed mortgage-related securities,
principally PCs, and by purchasing loans and mortgage-related securities for investment.
Senior preferred stock - The shares of Variable Liquidation Preference Senior Preferred Stock issued to
Treasury under the Purchase Agreement.
Seriously delinquent or SDQ - Single-family loans that are three monthly payments or more past due or
in the process of foreclosure as reported to us by our servicers.
SERP - Supplemental Executive Retirement Plan