Freddie Mac 2012 Annual Report Download - page 140

Table 41 — Characteristics of the Single-Family Credit Guarantee Portfolio(1)
Portfolio Balance at December 31,(2)
2012 2011 2010
Original LTV Ratio Range(3)
60% and below ............................................................................. 22% 23% 23%
Above 60% to 70% .......................................................................... 15 16 16
Above 70% to 80% .......................................................................... 40 42 43
Above 80% to 100% ......................................................................... 18 17 17
Above 100% ............................................................................... 5 2 1
Total .................................................................................... 100% 100% 100%
Weighted average original LTV ratio ............................................................. 74% 72% 71%
Estimated Current LTV Ratio Range(4)
60% and below ............................................................................. 28% 25% 27%
Above 60% to 70% .......................................................................... 14 12 12
Above 70% to 80% .......................................................................... 21 18 17
Above 80% to 90% .......................................................................... 13 15 16
Above 90% to 100% ......................................................................... 9 10 10
Above 100% to 120% ........................................................................ 8 10 10
Above 120% ............................................................................... 7 10 8
Total .................................................................................... 100% 100% 100%
Weighted average estimated current LTV ratio:
Relief refinance mortgages(5) .................................................................. 83% 79% 78%
All other mortgages ........................................................................ 74% 80% 78%
Total mortgages .......................................................................... 75% 80% 78%
Credit Score(6)
740 and above .............................................................................. 56% 55% 53%
700to739 ................................................................................ 21 21 21
660to699 ................................................................................ 14 14 15
620to659 ................................................................................ 6 7 7
Less than 620 .............................................................................. 3 3 3
Not available .............................................................................. <1 <1 1
Total .................................................................................... 100% 100% 100%
Weighted average credit score:
Relief refinance mortgages(5) .................................................................. 741 744 745
All other mortgages ........................................................................ 736 734 732
Total mortgages .......................................................................... 737 735 733
Loan Purpose
Purchase .................................................................................. 27% 30% 31%
Cash-out refinance .......................................................................... 24 27 29
Other refinance(7) ............................................................................ 49 43 40
Total .................................................................................... 100% 100% 100%
Property Type
Detached/townhome(8) ........................................................................ 92% 92% 92%
Condo/Co-op .............................................................................. 8 8 8
Total .................................................................................... 100% 100% 100%
Occupancy Type
Primary residence ........................................................................... 90% 91% 91%
Second/vacation home ........................................................................ 5 5 5
Investment ................................................................................ 5 4 4
Total .................................................................................... 100% 100% 100%
(1) Ending balances are based on the UPB of the single-family credit guarantee portfolio. Other Guarantee Transactions with ending balances of $1 billion
at December 31, 2012, and $2 billion at both December 31, 2011, and 2010, respectively, are excluded since these securities are backed by non-Freddie
Mac issued securities for which the loan characteristics data was not available.
(2) Includes loans acquired under our relief refinance initiative, which began in 2009.
(3) 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.
(4) Current LTV ratios are management estimates, which are updated on a monthly basis. Current market values are estimated by adjusting the value of the
property at origination based on changes in the market value of homes in the same geographical area since origination.
(5) Relief refinance mortgages of all LTV ratios comprised approximately 18%, 11%, and 7% of our single-family credit guarantee portfolio by UPB as of
December 31, 2012, 2011, and 2010, respectively.
(6) 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. Excludes less than 1% of loans in the portfolio because the FICO scores at origination were not available at December 31, 2012.
(7) 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.
(8) Includes manufactured housing and homes within planned unit development communities.
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