Freddie Mac 2011 Annual Report Download - page 326

Objectives Weighting Targets / Measures
1. Build a New Infrastructure 30%
• Continued progress on, or completion of, mortgage
market enhancement activities already underway
15%
– Loan-level Disclosure in Mortgage Backed Security
(MBS)
• Develop template for enhanced loan-level disclosures for single-family MBS that incorporates market standards and is consistent
with maintaining liquidity in the to-be-announced market. Template to be submitted to Federal Housing Finance Agency (FHFA)
by June 30, 2012.
– Uniform Mortgage Data Program (UMDP) • Meet articulated Uniform Mortgage Data Program (UMDP) timetables as follows:
– Uniform Collateral Data Portal (UCDP) electronic appraisal submission requirement by March 19, 2012.
– Uniform Loan Delivery Data (ULDD) format loan delivery data by July 23, 2012.
– Deliver new ULDD data point in compliance with SEC Rule 15Ga-1 by November 30, 2012.
– Notify market of optional ULDD data points, including those necessary to improve disclosure and for other business uses in
2012.
• Notify market of servicing data standard, including data necessary to improve disclosure, and agree on timetable for data
collection to begin in 2013 by December 31, 2012.
• Develop plans that leverage uniform appraisal data and ULDD for enhanced risk management by December 31, 2012.
• Cooperate with FHFA implementation of portal to accept electronic appraisals.
– Seller Servicer Contract Harmonization • Appropriate resource allocation to seller-servicer contract harmonization and commitment to targeted timetables as outlined in
FHFA directive.
• Securitization Platform 10% • In collaboration with FHFA and the other Enterprise, develop and finalize a plan by December 31, 2012 for the design and build
of a single securitization platform that can serve both Enterprises and a post-conservatorship market with multiple future issuers.
• Pooling and Servicing Agreements 5% • Propose a model pooling and servicing agreement (PSA), collaborate with other Enterprise and FHFA on a specific proposal, seek
public comment, and produce final recommendations for standard Enterprise trust documentation by December 31, 2012.
2. Contract the Enterprises dominant presence in the
marketplace while simplifying and shrinking certain
operations.
30%
• Work with FHFA to evaluate options for meeting
conservatorship goals, including shifting mortgage
credit risk to private investors via assessment of:
10%
– Multifamily line of business • Undertake a market analysis by December 31, 2012, of the viability of multifamily business operations without government
guarantees. Review the likely viability of these models operating on a stand-alone basis after attracting private capital and
adjusting pricing if needed.
– Investment assets and nonperforming loans • Perform analysis of investments portfolio as described in the strategic plan by the fourth quarter of 2012 and make preparations
for the competitive disposition of a pool of nonperforming assets by September 30, 2012.
• Review options with board of directors and FHFA and make appropriate recommendations for future actions.
• Implement plan agreed to by board and FHFA.
• Risk Sharing 10% • Initiate risk sharing transactions by September 30, 2012.
• Execute new risk sharing transactions beyond the traditional charter required mortgage insurance coverage.
• Propose timeline for continued growth in risk sharing through 2013.
• Pricing 10%
– Single-family Guarantee Fee Pricing Increases • Develop and begin implementing plan to increase guarantee fee pricing to more closely approximate the private sector.
• Set uniform pricing across loan sellers to extent practicable.
– Set plan to price for state law effects on mortgage
credit losses given default
• Work with FHFA to develop appropriate risk-based pricing by state. State-level pricing grid to be completed by August 31, 2012.
3. Maintain foreclosure prevention activities and credit
availability for new and refinanced mortgages.
20%
• Loss Mitigation through continued implementation and
enhancement of Servicer Alignment Initiative
10% • Enhance transparency of servicer requirements around foreclosure timelines and compensatory fees and publish applicable
announcements by September 30, 2012.
• Short Sales • Enhance short sales programs that include efforts to identify program obstacles that impact utilization by June 30, 2012.
Applicable lender announcements to foreclosure alternatives by September 30, 2012.
• Deeds-in-Lieu and Deeds-for-Lease • Design, develop or enhance deed-in-lieu and deed-for-lease programs that include efforts to identify and resolve program
obstacles that impact utilization by September 30, 2012. Applicable lender announcements to foreclosure alternatives by
December 31, 2012.
• Real Estate Owned Sales 10% • Implement, as needed, loans to facilitate real estate owned (REO) sales program by June 30, 2012.
• Expand financing for small investors in REO properties by June 30, 2012.
• Initiate disposition pilot, either through financing or bulk sales, by September 30, 2012.
• Expand pilot programs and establish ongoing sales program, as agreed to with FHFA, during 2012.
4. Manage Efficiently in Support of Conservatorship Goals 20%
• Conservatorship / Board Priorities 20% • Work closely with FHFA toward concluding litigation associated with private label securities and whole loan repurchase claims,
as appropriate.
• Prioritize and manage Enterprise operations in support of conservatorship goals and board directions.
• Adapt to evolving conservatorship requirements.
• Collaborate fully with FHFA and, when requested, the other Enterprise.
• Actively seek and consider public input on conservatorship-related projects, as requested.
• Effectively identify, communicate, and remediate situations that create risk for the conservatorships or avoidable taxpayer losses.
• Ensure corporate governance procedures are maintained, including timely reporting to the board and adhering to board mandates
and expectations.
• Take steps to mitigate key person dependencies and maintain appropriate internal controls and risk management governance.
• Achieve milestones agreed to within the year with regard to accounting alignment.
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