Freddie Mac 2011 Annual Report Download - page 380

TDC — Total direct compensation
TDR — Troubled debt restructuring — A type of loan modification in which the changes to the contractual terms result in
concessions to borrowers that are experiencing financial difficulties.
Thrift/401(k) SERP Benefit — The component of the SERP that relates to the Thrift/401(k) Savings Plan.
TO — Target Incentive Opportunity, or Target Opportunity
Total comprehensive income (loss) — Consists of net income (loss) plus total other comprehensive income (loss).
Total other comprehensive income (loss) — Consists of the after-tax changes in: (a) the unrealized gains and losses on
available-for-sale securities; (b) the effective portion of derivatives accounted for as cash flow hedge relationships; and
(c) defined benefit plans.
Total mortgage portfolio — Includes mortgage loans and mortgage-related securities held on our consolidated balance
sheets as well as the balances of our non-consolidated issued and guaranteed single-class and multiclass securities, and
other mortgage-related financial guarantees issued to third parties.
Treasury — U.S. Department of the Treasury
UPB — Unpaid principal balance
USDA — U.S. Department of Agriculture
VA — U.S. Department of Veteran Affairs
VIE — Variable Interest Entity — A VIE is an entity: (a) that has a total equity investment at risk that is not sufficient to
finance its activities without additional subordinated financial support provided by another party; or (b) where the group
of equity holders does not have: (i) the ability to make significant decisions about the entity’s activities; (ii) the obligation
to absorb the entity’s expected losses; or (iii) the right to receive the entity’s expected residual returns.
Warrant — Refers to the warrant we issued to Treasury on September 8, 2008 pursuant to the Purchase Agreement. The
warrant provides Treasury the ability to purchase shares of our common stock equal to 79.9% of the total number of
shares of Freddie Mac common stock outstanding on a fully diluted basis on the date of exercise.
Workout, or loan workout — A workout is either: (a) a home retention action, which is either a loan modification,
repayment plan, or forbearance agreement; or (b) a foreclosure alternative, which is either a short sale or a deed in lieu of
foreclosure.
XBRL — eXtensible Business Reporting Language
Yield curve — A graphical display of the relationship between yields and maturity dates for bonds of the same credit
quality. The slope of the yield curve is an important factor in determining the level of net interest yield on a new
mortgage asset, both initially and over time. For example, if a mortgage asset is purchased when the yield curve is
inverted, with short-term rates higher than long-term rates, our net interest yield on the asset will tend to be lower initially
and then increase over time. Likewise, if a mortgage asset is purchased when the yield curve is steep, with short-term
rates lower than long-term rates, our net interest yield on the asset will tend to be higher initially and then decrease over
time.
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