Freddie Mac 2015 Annual Report Download - page 53

Management's Discussion and Analysis Our Business Segments | Single-Family Guarantee
Freddie Mac 2015 Form 10-K 51
Loss Mitigation Activities
Number of Families Helped to Avoid
Foreclosure
Loan Workout Activity
Commentary
• We continue to help struggling families retain their homes or otherwise avoid foreclosure through loan
workouts, helping approximately 1.2 million borrowers since 2009. Our loan workout activity has
declined over the last several years, along with a decline in the size of our seriously delinquent single-
family loan portfolio. One of our loan workout programs, HAMP, terminates in December 2016.
• When a home retention solution is not practicable, we require our servicers to pursue foreclosure
alternatives, such as short sales, before initiating foreclosure. When foreclosure is unavoidable and
we acquire the property as REO, we have helped to stabilize communities by focusing on REO sales
to owner-occupants, who have made up 67% of purchasers since the beginning of 2009.
• As part of our strategy to mitigate losses and reduce our holdings of less liquid assets, we sold
seriously delinquent loans totaling $2.9 billion in UPB during 2015. Of the $7.7 billion in UPB of
single-family loans classified as held-for-sale at December 31, 2015, $5.7 billion related to loans that
were seriously delinquent. We believe selling these loans provides better economic returns than
continuing to hold them.
• See “Risk Management” for additional information on our loan workout activities.