Freddie Mac 2008 Annual Report Download - page 222

Table 5.8 summarizes all securities pledged as collateral by us, including assets that the secured party may repledge and
those that may not be repledged as well as the related liability recorded on our balance sheet that caused the need to post
collateral.
Table 5.8 — Collateral in the Form of Securities Pledged
2008 2007
December 31,
(in millions)
Securities pledged with ability for secured party to repledge:
Available-for-sale securities ................................................................. $21,302 $17,010
Securities pledged without ability for secured party to repledge:
Available-for-sale securities ................................................................. 1,050 793
Total securities pledged . . . . ................................................................. $22,352 $17,803
At December 31, 2008, we had securities pledged with the ability of the secured party to repledge of $21.3 billion, of
which $20.7 billion is collateral posted in connection with our two uncommitted intraday lines of credit with third parties as
discussed above. There were no borrowings against these lines of credit at December 31, 2008. The remaining $0.6 billion of
collateral posted with the ability of the secured party to repledge was posted in connection with our futures transactions.
At December 31, 2008, we had securities pledged without the ability of the secured party to repledge of $1.1 billion at
a clearing house in connection with our futures transactions.
Also as of December 31, 2008, we had pledged $6.4 billion of collateral in the form of cash of which $5.8 billion
relates to our interest rate swap agreements as we had $6.1 billion of derivatives in a net loss position. The remaining
$0.6 billion is posted at clearing houses in connection with our securities transactions.
NOTE 6: MORTGAGE LOANS AND LOAN LOSS RESERVES
We own both single-family mortgage loans, which are secured by one to four family residential properties, and
multifamily mortgage loans, which are secured by properties with five or more residential rental units.
The following table summarizes the types of loans on our balance sheets as of December 31, 2008 and 2007. These
balances do not include mortgage loans underlying our guaranteed PCs and Structured Securities, since these are not
consolidated on our balance sheets. See “NOTE 2: FINANCIAL GUARANTEES AND MORTGAGE SECURITIZATIONS”
for information on our securitized mortgage loans.
Table 6.1 — Mortgage Loans
2008 2007
December 31,
(in millions)
Single-family
(1)
:
Conventional
Fixed-rate . . . . ...................................................................... $ 35,070 $20,707
Adjustable-rate . ...................................................................... 2,136 2,700
Total conventional . . . ................................................................ 37,206 23,407
FHA/VA — Fixed-rate . . . ................................................................ 548 311
U.S. Department of Agriculture Rural Development and other federally guaranteed loans . . . ................... 1,001 871
Total single-family ...................................................................... 38,755 24,589
Multifamily
(1)
:
Conventional
Fixed-rate . . . . ...................................................................... 65,319 53,111
Adjustable-rate . ...................................................................... 7,399 4,455
Total conventional . . . ................................................................ 72,718 57,566
U.S. Department of Agriculture Rural Development . . . ............................................ 3 3
Total multifamily . ...................................................................... 72,721 57,569
Total unpaid principal balance of mortgage loans ................................................... 111,476 82,158
Deferred fees, unamortized premiums, discounts and other cost basis adjustments . . . . ....................... (3,178) (1,868)
Lower of cost or fair value adjustments on loans held-for-sale . . ...................................... (17) (2)
Allowance for loan losses on loans held-for-investment . ............................................ (690) (256)
Total mortgage loans, net of allowance for loan losses .............................................. $107,591 $80,032
(1) Based on unpaid principal balances and excludes mortgage loans traded, but not yet settled.
For the years ended December 31, 2008 and 2007, we transferred $— million and $41 million, respectively, of held-for-
sale mortgage loans to held-for-investment. For the years ended December 31, 2008 and 2007, we did not transfer held-for-
investment mortgage loans to held-for-sale.
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