Freddie Mac 2012 Annual Report Download - page 247

Table 5.1 — Individually Impaired Loans
Balance at December 31, 2012 For The Year Ended December 31, 2012
UPB
Recorded
Investment
Associated
Allowance
Net
Investment
Average
Recorded
Investment
Interest
Income
Recognized
Interest
Income
Recognized
On Cash Basis
(in millions)
Single-family —
With no specific allowance recorded(1):
20 and 30-year or more, amortizing fixed-rate(2) ................... $ 6,582 $ 3,236 $ — $ 3,236 $ 3,136 $ 339 $ 46
15-year amortizing fixed-rate(2) ............................... 64 30 — 30 25 6 1
Adjustable rate(3) ......................................... 19 12 — 12 7 — —
Alt-A, interest-only, and option ARM(4) ......................... 1,799 857 — 857 847 63 11
Total with no specific allowance recorded ......................... 8,464 4,135 — 4,135 4,015 408 58
With specific allowance recorded:(5)
20 and 30-year or more, amortizing fixed-rate(2) ................... 67,473 66,501 (13,522) 52,979 55,431 1,632 279
15-year amortizing fixed-rate(2) ............................... 1,134 1,125 (55) 1,070 714 31 8
Adjustable rate(3) ......................................... 883 874 (107) 767 558 14 5
Alt-A, interest-only, and option ARM(4) ......................... 16,946 16,656 (4,251) 12,405 14,278 326 82
Total with specific allowance recorded ........................... 86,436 85,156 (17,935) 67,221 70,981 2,003 374
Combined single-family:
20 and 30-year or more, amortizing fixed-rate(2) ................... 74,055 69,737 (13,522) 56,215 58,567 1,971 325
15-year amortizing fixed-rate(2) ............................... 1,198 1,155 (55) 1,100 739 37 9
Adjustable rate(3) ......................................... 902 886 (107) 779 565 14 5
Alt-A, interest-only, and option ARM(4) ......................... 18,745 17,513 (4,251) 13,262 15,125 389 93
Total single-family(6) ........................................ $94,900 $89,291 $(17,935) $71,356 $74,996 $2,411 $432
Multifamily —
With no specific allowance recorded (7) ........................... $ 978 $ 966 $ — $ 966 $ 1,420 $ 61 $ 37
With specific allowance recorded ............................... 1,248 1,230 (205) 1,025 1,470 68 51
Total multifamily .......................................... $ 2,226 $ 2,196 $ (205) $ 1,991 $ 2,890 $ 129 $ 88
Total single-family and multifamily ............................. $97,126 $91,487 $(18,140) $73,347 $77,886 $2,540 $520
Balance at December 31, 2011 For The Year Ended December 31, 2011
UPB
Recorded
Investment
Associated
Allowance
Net
Investment
Average
Recorded
Investment
Interest
Income
Recognized
Interest
Income
Recognized
On Cash Basis
(in millions)
Single-family —
With no specific allowance recorded(1):
20 and 30-year or more, amortizing fixed-rate(2) ................... $ 7,073 $ 3,200 $ — $ 3,200 $ 3,352 $ 336 $ 48
15-year amortizing fixed-rate(2) ............................... 57 23 — 23 26 7 1
Adjustable rate(3) ......................................... 13 6 — 6 7 1 —
Alt-A, interest-only, and option ARM(4) ......................... 1,987 881 — 881 940 72 9
Total with no specific allowance recorded ......................... 9,130 4,110 — 4,110 4,325 416 58
With specific allowance recorded:(5)
20 and 30-year or more, amortizing fixed-rate(2) ................... 44,672 43,533 (11,253) 32,280 35,707 889 129
15-year amortizing fixed-rate(2) ............................... 367 347 (43) 304 230 12 4
Adjustable rate(3) ......................................... 280 268 (59) 209 155 5 2
Alt-A, interest-only, and option ARM(4) ......................... 12,103 11,779 (3,745) 8,034 9,391 173 34
Total with specific allowance recorded ........................... 57,422 55,927 (15,100) 40,827 45,483 1,079 169
Combined single-family:
20 and 30-year or more, amortizing fixed-rate(2) ................... 51,745 46,733 (11,253) 35,480 39,059 1,225 177
15-year amortizing fixed-rate(2) ............................... 424 370 (43) 327 256 19 5
Adjustable rate(3) ......................................... 293 274 (59) 215 162 6 2
Alt-A, interest-only, and option ARM(4) ......................... 14,090 12,660 (3,745) 8,915 10,331 245 43
Total single-family(6) ........................................ $66,552 $60,037 $(15,100) $44,937 $49,808 $1,495 $227
Multifamily —
With no specific allowance recorded(7) ............................ $ 1,049 $ 1,044 $ — $ 1,044 $ 1,427 $ 65 $ 34
With specific allowance recorded ............................... 1,644 1,626 (246) 1,380 1,920 81 67
Total multifamily .......................................... $ 2,693 $ 2,670 $ (246) $ 2,424 $ 3,347 $ 146 $101
Total single-family and multifamily ............................. $69,245 $62,707 $(15,346) $47,361 $53,155 $1,641 $328
(1) Individually impaired loans with no specific related valuation allowance primarily represent mortgage loans purchased out of PC pools and accounted for in
accordance with the accounting guidance for loans and debt securities acquired with deteriorated credit quality that have not experienced further deterioration.
(2) See endnote (3) of “Table 4.2 — Recorded Investment of Held-for-Investment Mortgage Loans, by LTV Ratio.”
(3) Includes balloon/reset mortgage loans and excludes option ARMs.
(4) See endnote (5) of “Table 4.2 — Recorded Investment of Held-for-Investment Mortgage Loans, by LTV Ratio.”
(5) Consists primarily of mortgage loans classified as TDRs.
(6) As of December 31, 2012 and 2011 includes $86.4 billion and $57.4 billion, respectively, of UPB associated with loans for which we have recorded a specific
allowance, and $8.5 billion and $9.1 billion, respectively, of UPB associated with loans that have no specific allowance recorded. See endnote (1) for additional
information.
(7) Individually impaired multifamily loans with no specific related valuation allowance primarily represent those loans for which the collateral value is sufficiently
in excess of the loan balance to result in recovery of the entire recorded investment if the property were foreclosed upon or otherwise subject to disposition.
242 Freddie Mac