Freddie Mac 2012 Annual Report Download - page 139

Table 40 — Characteristics of Purchases for the Single-Family Credit Guarantee Portfolio(1)
Percent of Purchases During the Year ended December 31,
2012 2011 2010
Relief Refi All Other Total Relief Refi All Other Total Relief Refi All Other Total
Original LTV Ratio Range(2)
60% and below .......................... 4% 21% 25% 6% 23% 29% 6% 22% 28%
Above 60% to 70% ....................... 2 12 14 3 13 16 4 12 16
Above 70% to 80% ....................... 3 29 32 5 32 37 6 33 39
Above 80% to 100% ...................... 8 9 17 8 6 14 9 5 14
Above 100% to 125% ..................... 7 <1 7 4 <1 4 3 <1 3
Above 125% ........................... 5 <1 5 — — — — — —
Total ................................. 29% 71% 100% 26% 74% 100% 28% 72% 100%
Weighted average original LTV ratio .......... 97% 68% 76% 77% 67% 70% 77% 67% 70%
Credit Score(3)
740 and above .......................... 17% 55% 72% 16% 55% 71% 18% 53% 71%
700to739 ............................. 6 11 17 5 13 18 5 13 18
660to699 ............................. 4 4 8 3 5 8 3 5 8
620to659 ............................. 1 1 2 1 1 2 1 1 2
Less than 620 ........................... 1 <1 1 1 <1 1 1 <1 1
Not available ........................... <1 <1 <1 <1 <1 <1 <1 <1 <1
Total ................................. 29% 71% 100% 26% 74% 100% 28% 72% 100%
Weighted average credit score:
Total mortgages ....................... 740 762 756 744 759 755 747 758 755
Percent of Purchases During
the Year ended December 31,
2012 2011 2010
Loan Purpose
Purchase .............................. 18% 22% 20%
Cash-out refinance ....................... 15 18 21
Other refinance(4) ......................... 67 60 59
Total ................................. 100% 100% 100%
Property Type
Detached/townhome(5) ..................... 94% 94% 94%
Condo/Co-op ........................... 6 6 6
Total ................................. 100% 100% 100%
Occupancy Type
Primary residence ........................ 91% 92% 93%
Second/vacation home .................... 4 4 4
Investment ............................. 5 4 3
Total ................................. 100% 100% 100%
(1) Percentages are based on the UPB of the single-family credit guarantee portfolio.
(2) Original LTV ratios are calculated as the amount of the mortgage we guarantee including the credit-enhanced portion, divided by the lesser of the
appraised value of the property at the time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by
us are excluded from the LTV ratio calculation because we generally do not receive data about them. The existence of a second-lien mortgage reduces
the borrower’s equity in the home and, therefore, can increase the risk of default.
(3) Credit score data is based on FICO scores, which are ranked on a scale of approximately 300 to 850 points. Although we obtain updated credit
information on certain borrowers after the origination of a mortgage, such as those borrowers seeking a modification, the scores presented in this table
represent the credit score of the borrower at the time of loan origination and may not be indicative of the borrowers’ creditworthiness at December 31,
2012.
(4) Other refinance loans include: (a) refinance mortgages with “no cash out” to the borrower; and (b) refinance mortgages for which the delivery data
provided was not sufficient for us to determine whether the mortgage was a cash-out or a no cash-out refinance transaction.
(5) Includes manufactured housing and homes within planned unit development communities. The UPB of manufactured housing mortgage loans purchased
during 2012, 2011, and 2010, was $676 million, $376 million, and $403 million, respectively.
134 Freddie Mac