Freddie Mac 2006 Annual Report Download - page 7
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buy $1 billion in mortgage revenue bonds (MRBs) from state and local housing finance
agencies in the Gulf. We fully met that commitment in 2006, less than 12 months later.
The MRBs we have purchased will provide low-cost financing for more than 10,000
families. In addition, Freddie Mac provided well over $700 million in mortgage funding last
year for multifamily properties along the Gulf Coast.
Freddie Mac acted last year to ease the increasing strains on housing affordability. We
supported our lenders by introducing an innovative 40-year product that combines the
advantages of a fixed-rate loan with lower monthly costs. And we expanded our special
workforce housing initiative to include military families, as well as police, firefighters,
teachers and nurses. Those who defend us from harm, teach our children and care for
our sick should be able to live in the communities they serve.
This February, in order to protect consumers and raise underwriting standards, Freddie Mac
took the lead in announcing that after September 1, we will not buy subprime mortgages
that pose an unacceptable risk of excessive payment shock and possible foreclosure. As
a GSE, we feel a responsibility not only to help families buy their own homes, but to help
them keep their homes, as well.
Freddie Mac also exerted responsible leadership in 2006 by addressing concerns about
credit quality and practices in the housing finance market. For instance, we developed
and instituted workout policies that can significantly reduce the odds of home loss
through foreclosure. We also continued educating consumers on how to avoid predatory
practices, and maintained our pioneering policies that led the industry in recent years to
reject abusive loans that limit consumers’ rights.
Strengthening Our Team
We strengthened Freddie Mac last year by building out the company’s executive team
in several areas vital to our success. Of great interest to our investors is the addition of
Buddy Piszel as Chief Financial Officer. Buddy brings experience and zeal to the task of
making Freddie Mac’s financials more transparent, accessible and useful to investors.
Other key additions included our new head of Enterprise Operational Risk, Gareth Davies;
General Auditor, Kirk Die; Corporate Controller, Jim Egan; Chief Information Officer,
Jim Hughes; Senior Vice President for Market Risk Oversight, Manoj Singh; and Vice
President for Internal Controls, Jim Larkin, among others.
Of course, the strength of our team goes far beyond its executives. Freddie Mac’s greatest
asset is its skilled and dedicated employees, and their efforts are critical to our success.
So we were gratified by our enhanced employee engagement in 2006, and we thank all
our employees for their hard work.
Freddie Mac
2006
Annual Report