Freddie Mac 2015 Annual Report Download - page 405

Glossary
Freddie Mac 2015 Form 10-K 403
on a fully diluted basis on the date of exercise.
Workforce housing - Multifamily housing that is affordable to the majority of low to middle income
households.
Workout, or loan workout - A workout is either a home retention action, which is either a loan
modification, repayment plan, or forbearance agreement, or a foreclosure alternative, which is either a
short sale or a deed in lieu of foreclosure.
XBRL - eXtensible Business Reporting Language
Yield curve - A graphical display of the relationship between yields and maturity dates for bonds of the
same credit quality. The slope of the yield curve is an important factor in determining the level of net
interest yield on a new mortgage asset, both initially and over time. For example, if a mortgage asset is
purchased when the yield curve is inverted (i.e., short-term interest rates higher than long-term interest
rates), our net interest yield on the asset will tend to be lower initially and then increase over time.
Likewise, if a mortgage asset is purchased when the yield curve is steep (i.e., short-term interest rates
lower than long-term interest rates), our net interest yield on the asset will tend to be higher initially and
then decrease over time.