Freddie Mac 2008 Annual Report Download - page 132

Table 52 presents the distribution of underlying mortgage assets for our PCs and Structured Securities.
Table 52 — Issued PCs and Structured Securities
(1)
2008 2007 2006
December 31,
(in millions)
Single-family:
Conventional:
30-year fixed-rate
(2)
...................................................... $1,216,765 $1,091,212 $ 882,398
20-year fixed-rate ....................................................... 67,215 72,225 66,777
15-year fixed-rate ....................................................... 246,089 272,490 290,314
ARMs/adjustable-rate . . . . ................................................. 80,771 91,219 100,808
Option ARMs
(3)
......................................................... 1,551 1,853 2,808
Interest-only
(4)
.......................................................... 159,645 159,028 76,114
Balloon/resets . . . ....................................................... 10,967 17,242 21,551
Conforming jumbo ....................................................... 2,475 — —
FHA/VA .............................................................. 1,310 1,283 1,398
USDA Rural Development and other federally guaranteed loans . ....................... 118 132 138
Total single-family ..................................................... 1,786,906 1,706,684 1,442,306
Multifamily:
Conventional and other . . . . ................................................. 14,829 10,658 8,415
Total multifamily ...................................................... 14,829 10,658 8,415
Structured Securities backed by non-Freddie Mac mortgage-related securities:
Ginnie Mae Certificates
(5)
................................................... 1,089 1,268 1,510
Structured Transactions
(6)
.................................................... 24,414 20,223 24,792
Total Structured Securities backed by non-Freddie Mac mortgage-related securities ......... 25,503 21,491 26,302
Total guaranteed PCs and Structured Securities . . . .................................... $1,827,238 $1,738,833 $1,477,023
(1) Based on unpaid principal balances and excludes mortgage-related securities traded, but not yet settled. Also includes long-term standby commitments
for mortgage assets held by third parties that require that we purchase loans from lenders when these loans meet certain delinquency criteria.
(2) Portfolio balances include $1.9 billion, $1.8 billion and $42 million of 40-year fixed-rate mortgages at December 31, 2008, 2007 and 2006, respectively.
(3) Excludes option ARM mortgage loans that back our Structured Transactions. See endnote (6) for additional information.
(4) Represents loans where the borrower pays interest only for a period of time before the borrower begins making principal payments. Includes both fixed
and variable-rate interest only loans.
(5) Ginnie Mae Certificates that underlie the Structured Securities are backed by FHA/VA loans.
(6) Represents Structured Securities backed by non-agency securities that include prime, FHA/VA and subprime mortgage loan issuances. Includes
$10.8 billion, $12.8 billion and $18.5 billion of securities backed by option ARM mortgage loans at December 31, 2008, 2007 and 2006, respectively.
Due in large part to falling interest rates over the last three years, the percentages of 30-year, fixed-rate mortgages have
increased for single-family loans underlying our PCs and Structured Securities. Similarly, the percentages of ARM and
balloon/reset loans have declined. With the tightening of mortgage underwriting standards by financial institutions and us
during 2008 and a continuation of falling interest rates into 2009, we expect the trends toward conventional fixed-rate,
amortizing mortgage products to continue. See “CREDIT RISKS — Mortgage Credit Risks” for additional information on
characteristics and types of mortgage loans underlying our guaranteed PCs and Structured Securities as well as historical
performance data.
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