Freddie Mac 2008 Annual Report Download - page 150

Table 58 — Characteristics of Single-Family Mortgage Portfolio
(1)
2008 2007 2006 2008 2007 2006
Purchases During
the Year Ended
December 31,
Portfolio at
December 31,
Original LTV Ratio Range
(2)
Less than 60% . . . . . . . .................................................. 24% 18% 19% 22% 22% 24%
Above 60% to 70% . . . . .................................................. 16 14 14 16 16 16
Above 70% to 80% . . . . .................................................. 40 49 54 46 47 46
Above 80% to 90% . . . . .................................................. 11 8 7 8 8 7
Above 90% to 100% . . . .................................................. 9 11 6 8 7 7
Above 100% . . . . . . . . . .................................................. — — — — — —
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100% 100% 100% 100%
Weighted average original LTV ratio .......................................... 71% 74% 73% 72% 71% 70%
Estimated Current LTV Ratio Range
(3)
Less than 60% . . . . . . . .................................................. 32% 41% 52%
Above 60% to 70% . . . . .................................................. 13 15 18
Above 70% to 80% . . . . .................................................. 16 19 20
Above 80% to 90% . . . . .................................................. 16 15 8
Above 90% to 100% . . . .................................................. 10 7 2
Above 100% . . . . . . . . . .................................................. 13 3 —
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100%
Weighted average estimated current LTV ratio .................................... 72% 63% 57%
Credit Score
(4)
740 and above. . . . . . . . .................................................. 53% 42% 42% 46% 45% 45%
700to739............................................................ 22 22 24 23 23 23
660to699............................................................ 15 19 19 17 18 18
620to659............................................................ 7 11 10 9 9 9
Less than 620 . . . . . . . . .................................................. 3 6 5 4 4 4
Not available . . . . . . . . .................................................. — — — 1 1 1
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100% 100% 100% 100%
Weighted average credit score ............................................... 734 718 720 725 723 725
Loan Purpose
Purchase . . . . . . . . . . . .................................................. 41% 47% 53% 40% 40% 37%
Cash-out refinance . . . . . .................................................. 31 32 32 30 30 29
Other refinance . . . . . . . .................................................. 28 21 15 30 30 34
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100% 100% 100% 100%
Property Type
1 unit. . . . . . . . . . . . . . .................................................. 97% 97% 97% 97% 97% 97%
2-4 units . . . . . . . . . . . .................................................. 3 3 3 3 3 3
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100% 100% 100% 100%
Occupancy Type
Primary residence . . . . . .................................................. 89% 89% 89% 91% 91% 92%
Second/vacation home . . .................................................. 6 5 6 5 5 5
Investment . . . . . . . . . . .................................................. 5 6 5 4 4 3
Total . . . . . . . . . . . . . . .................................................. 100% 100% 100% 100% 100% 100%
(1) Purchases and ending balances are based on the unpaid principal balance of the single-family mortgage portfolio excluding Structured Securities backed
by Ginnie Mae certificates and certain Structured Transactions. Structured Transactions with ending balances of $2 billion, $6 billion and $5 billion at
December 31, 2008, 2007 and 2006, respectively, are excluded since these securities are backed by non-Freddie Mac issued securities for which the loan
characteristics data is not available.
(2) Original LTV ratios are calculated as the amount of the mortgage we guarantee including the credit-enhanced portion, divided by the lesser of the
appraised value of the property at time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by us
are excluded from the LTV ratio calculation.
(3) Current market values are estimated by adjusting the value of the property at origination based on changes in the market value of homes since
origination. Estimated current LTV ratio range is not applicable to purchases we made during 2008, includes the credit-enhanced portion of the loan and
excludes any secondary financing by third parties. Including secondary financing, the total LTV ratios above 90% were 14% at both December 31, 2008
and 2007.
(4) Credit score data is as of mortgage loan origination and is based on FICO scores.
Loan-to-Value Ratios
An important safeguard against credit losses for mortgage loans in our single-family non-credit-enhanced portfolio is
provided by the borrowers’ equity in the underlying properties. As discussed above in “Credit Enhancements,” our charter
generally requires that single-family mortgages with LTV ratios above 80% at the time of purchase be covered by specified
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