Freddie Mac 2010 Annual Report Download - page 337

GLOSSARY
The Glossary includes acronyms and defined terms that are used throughout this Form 10-K.
1995 Employee Plan — 1995 Stock Compensation Plan, as amended
2004 Employee Plan — 2004 Stock Compensation Plan, as amended and restated June 6, 2008
Agency securities — Generally refers to mortgage-related securities issued by the GSEs or government agencies.
Alt-A loan — Although there is no universally accepted definition of Alt-A, many mortgage market participants classify
single-family loans with credit characteristics that range between their prime and subprime categories as Alt-A because these
loans have a combination of characteristics of each category, may be underwritten with lower or alternative income or asset
documentation requirements compared to a full documentation mortgage loan, or both. In determining our Alt-A exposure on
loans underlying our single-family credit guarantee portfolio, we classified mortgage loans as Alt-A if the lender that delivers
them to us classified the loans as Alt-A, or if the loans had reduced documentation requirements, as well as a combination of
certain credit characteristics and expected performance characteristics at acquisition which, when compared to full
documentation loans in our portfolio, indicate that the loan should be classified as Alt-A. In the event we purchase a
refinance mortgage in either our relief refinance mortgage initiative or in another mortgage refinance initiative and the
original loan had been previously identified as Alt-A, such refinance loan may no longer be categorized or reported as an
Alt-A mortgage in this Form 10-K and our other financial reports because the new refinance loan replacing the original loan
would not be identified by the servicer as an Alt-A loan. As a result, our reported Alt-A balances may be lower than would
otherwise be the case had such refinancing not occurred. For non-agency mortgage-related securities that are backed by
Alt-A loans, we categorize our investments in non-agency mortgage-related securities as Alt-A if the securities were
identified as such based on information provided to us when we entered into these transactions.
AMT — Alternative Minimum Tax
AOCI — Accumulated other comprehensive income (loss), net of taxes
ARM — Adjustable-rate mortgage — A mortgage loan with an interest rate that adjusts periodically over the life of the
mortgage loan based on changes in a benchmark index.
Board — Board of Directors
BPS — Basis points — One one-hundredth of 1%. This term is commonly used to quote the yields of debt instruments or
movements in interest rates.
Cash and other investments portfolio — Our cash and other investments portfolio is comprised of our cash and cash
equivalents, federal funds sold and securities purchased under agreements to resell, and investments in non-mortgage-related
securities.
CD&A — Compensation Discussion and Analysis
CEB — The Corporate Executive Board Company
CEO — Chief Executive Officer
CFO — Chief Financial Officer
Charter — The Federal Home Loan Mortgage Corporation Act, as amended, 12 U.S.C. § 1451 et seq.
CMBS — Commercial mortgage-backed security — A security backed by mortgages on commercial property (often
including multifamily rental properties) rather than one-to-four family residential real estate. Although the mortgage pools
underlying CMBS can include mortgages financing multifamily properties and commercial properties, such as office
buildings and hotels, the classes of CMBS that we hold receive distributions of scheduled cash flows only from multifamily
properties. Military housing revenue bonds are included as CMBS within investments-related disclosures. We have not
identified CMBS as either subprime or Alt-A securities.
CME — Freddie Mac Capital Markets Execution
SM
— A multifamily mortgage initiative in which we purchase loans pre-
designated for securitization through an Other Guarantee Transaction.
Conforming loan/Conforming jumbo loan/Conforming loan limit — A conventional single-family mortgage loan with an
original principal balance that is equal to or less than the applicable conforming loan limit, which is a dollar amount cap on
the size of the original principal balance of single-family mortgage loans we are permitted by law to purchase or securitize.
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