Freddie Mac 2011 Annual Report Download - page 373

GLOSSARY
This 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
Administration — Executive branch of the U.S. Government.
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
Bond insurers — Companies that provide credit insurance principally covering securitized assets in both the primary
issuance and secondary markets.
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.
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