Freddie Mac 2006 Annual Report Download - page 100

(6) Includes mortgage loans we purchased that underlie whole-loan REMICs except for $83 million of mortgage loan purchases that collateralize the
non-guaranteed portion of whole-loan REMICs.
(7) Mortgages whose terms require lump sum principal payments on contractually determined future dates unless the borrower qualiÑes for and elects an
extension of the maturity date at an adjusted interest rate.
(8) Excludes FHA/VA loans that back Structured Transactions.
(9) Includes $6,908 million, $14,331 million and $5,653 million at December 31, 2006, 2005 and 2004, respectively, of option ARM loans.
(10) Based on total mortgage portfolio. Excludes the eÅect of sales of non-Freddie Mac mortgage-related securities.
Our new business purchases consist of mortgage loans and non-Freddie Mac mortgage-related securities that are
purchased for our Retained portfolio and serve as collateral for our issued PCs and Structured Securities. We generate a
signiÑcant portion of our mortgage purchase volume through several key mortgage lenders that have entered into unique
business arrangements with us. See ""BUSINESS Ì Business Activities Ì Credit Guarantee Activities'' for information
about these relationships and consequent risks. During 2006 and 2005, we increased purchases of adjustable-rate (i.e.,
ARMs/Variable-rate and option ARMs) and interest-only mortgage loans and non-Freddie Mac mortgage-related securities
because these products generally oÅered more attractive option-adjusted spreads than Ñxed-rate products.
Guaranteed PCs and Structured Securities
Guaranteed PCs and Structured Securities Issued represent the unpaid principal balances of the mortgage-related
securities we issue or otherwise guarantee. Table 50 presents the distribution of underlying mortgage assets for total PCs and
Structured Securities issued and outstanding.
Table 50 Ì Guaranteed PCs and Structured Securities Issued and Outstanding
December 31,
2006 2005
Total Issued PCs Outstanding PCs Total Issued PCs Outstanding PCs
and Structured and Structured and Structured and Structured
Securities(1) Securities(2) Securities(1) Securities(2)
(in millions)
PCs and Structured Securities
Single-family:
Conventional:
30-year Ñxed-rate(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 956,842 $ 763,563 $ 810,897 $614,112
15-year Ñxed-rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 290,314 202,747 321,176 220,225
ARMs/Variable-rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 169,254 116,910 131,294 88,898
Option ARMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,808 303 3,830 414
Balloons/ResetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21,551 20,508 26,321 24,973
FHA/VA(4) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,398 1,267 849 823
Rural Housing Service and other federally guaranteed loans ÏÏÏÏÏÏÏÏÏÏ 139 139 154 154
Total single-family ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,442,306 1,105,437 1,294,521 949,599
Multifamily:
Conventional:
Fixed-rateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,449 3,208 10,149 9,902
Variable-rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,966 4,825 4,354 4,210
Total multifamily ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8,415 8,033 14,503 14,112
Structured Securities backed by non-Freddie Mac mortgage-related
securities:
Ginnie Mae CertiÑcates(5) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,510 1,481 2,021 1,900
Structured Transactions(6) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24,792 7,810 24,479 8,589
Total Structured Securities backed by non-Freddie Mac mortgage-
related securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26,302 9,291 26,500 10,489
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,477,023 $1,122,761 $1,335,524 $974,200
(1) Based on unpaid principal balances. Excludes mortgage loans and mortgage-related securities traded, but not yet settled.
(2) Represents PCs and Structured Securities held by third parties.
(3) Issued balances include $42 million and $Ì million of 40-year Ñxed-rate mortgages at December 31, 2006 and 2005, respectively; and $66,779 million
and $67,937 million of 20-year Ñxed-rate mortgages at December 31, 2006 and 2005, respectively.
(4) Excludes FHA and VA loans that are collateral for Structured Transactions.
(5) Represents Ginnie Mae CertiÑcates that are backed by FHA/VA loans.
(6) Represents Structured Securities backed by non-agency securities that include $1,122 million and $1,520 million of Ñxed-rate, $4,019 million and
$3,472 million of ARMs/variable-rate, $2,648 million and $3,566 million of FHA/VA, $9 million and $12 million of the Rural Housing Service and
other federally guaranteed loans and $12 million and $19 million of second mortgages, which are mortgage loans that are subordinate to a superior
mortgage lien on the property, at December 31, 2006 and 2005, respectively.
88 Freddie Mac