Freddie Mac 2015 Annual Report Download - page 404

Glossary
Freddie Mac 2015 Form 10-K 402
buyer obtains the right but not the obligation to enter into a specified swap agreement with the issuer on a
specified future date.
Target TDC - Target total direct compensation
TBA - To be announced
TCLFP - Temporary Credit and Liquidity Facility Program - A component of the HFA initiative in which we
and Fannie Mae issued credit and liquidity guarantees to holders of variable-rate demand obligations
issued by various state and local HFAs. Treasury is obligated to absorb losses under the program up to a
certain level before we are exposed to any losses. The program was scheduled to expire on
December 31, 2012. However, Treasury gave participants the option to extend their individual TCLFP
facilities to December 31, 2015. No outstanding guarantees existed as of December 31, 2015.
TDR - Troubled debt restructuring - A restructuring of a debt constitutes a TDR if the creditor for economic
or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would
not otherwise consider.
Thrift/401(k) Plan - The Federal Home Loan Mortgage Corporation Thrift/401(k) Savings Plan
Total other comprehensive income (loss) (or other comprehensive income (loss)) - Consists of the
after-tax changes in the unrealized gains and losses on available-for-sale securities, the effective portion
of derivatives accounted for as cash flow hedge relationships, and defined benefit plans.
Total mortgage portfolio - Includes loans and mortgage-related securities held on our consolidated
balance sheets as well as our non-consolidated issued and guaranteed single-class and multiclass
securities, and other mortgage-related guarantees issued to third parties.
Treasury - U.S. Department of the Treasury
UPB - Unpaid principal balance - Loan UPB amounts in this report have not been reduced by charge-offs
recognized prior to the loan being subject to a foreclosure transfer, deed in lieu of foreclosure, or short
sale transaction.
USDA - U.S. Department of Agriculture
VA - U.S. Department of Veterans Affairs
Variation margin - Payments we make to or receive from a derivatives clearinghouse based on the
change in fair value of a derivative instrument. Variation margin is typically transferred within one
business day.
VIE - Variable Interest Entity - A VIE is an entity that has a total equity investment at risk that is not
sufficient to finance its activities without additional subordinated financial support provided by another
party, or where the group of equity holders does not have: (i) the ability to make significant decisions
about the entity’s activities; (ii) the obligation to absorb the entity’s expected losses; or (iii) the right to
receive the entity’s expected residual returns.
Warrant - Refers to the warrant we issued to Treasury on September 7, 2008 pursuant to the Purchase
Agreement. The warrant provides Treasury the ability to purchase, for a nominal price, shares of our
common stock equal to 79.9% of the total number of shares of Freddie Mac common stock outstanding