Freddie Mac 2015 Annual Report Download - page 52

Management's Discussion and Analysis Our Business Segments | Single-Family Guarantee
Freddie Mac 2015 Form 10-K 50
Two whole loan security transactions where we issued $0.9 billion in UPB of guaranteed
securities and $0.1 billion in UPB of unguaranteed subordinated securities; and
One seller indemnification agreement transaction.
• Since 2013, we have completed 34 credit risk transfer transactions that, upon execution of the
transaction, covered $386.6 billion in principal of loans in our Core single-family book.
• The interest and premiums we pay on our issued STACR debt note and ACIS transactions to transfer
credit risk effectively reduce the management and guarantee income we earn on the PCs within the
respective pools. Our expected management and guarantee fee income on the PCs within the
STACR and ACIS reference pools has been effectively reduced by approximately 30%, on average,
for transactions executed as of December 31, 2015. The reduction to our overall management and
guarantee income could change over time as we continue our credit risk transfer activities or if there
are changes in the economic or regulatory environment that impact the cost of executing these
transactions.
• As of December 31, 2015 there has not been a significant number of loans in our STACR debt note
reference pools that have experienced a credit event. As a result of the credit performance of these
loans, we have only recognized small write-downs on our STACR debt notes and have begun to
make claims for reimbursement of losses under our ACIS transactions.
• The 2016 Conservatorship Scorecard sets a goal for us to complete credit risk transfer transactions
on at least 90% of the UPB of certain categories of newly acquired single-family loans, such as non-
HARP fixed-rate loans with terms greater than 20 years and LTV ratios above 60%.