Freddie Mac 2012 Annual Report Download - page 248

The average recorded investment in individually impaired loans for the year ended December 31, 2010, was
approximately $27.5 billion.
We recognized interest income on individually impaired loans of $1.4 billion for the year ended December 31, 2010.
Interest income recognized on a cash basis on individually impaired loans was $0.2 billion for the year ended December 31,
2010. Interest income foregone on individually impaired loans was $2.3 billion, $1.6 billion, and $0.8 billion for the years
ended December 31, 2012, 2011, and 2010, respectively.
Mortgage Loan Performance
We do not accrue interest on loans three months or more past due.
The table below presents the recorded investment of our single-family and multifamily mortgage loans, held-for-
investment, by payment status.
Table 5.2 — Payment Status of Mortgage Loans(1)
December 31, 2012
Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure Total Non-accrual
(in millions)
Single-family —
20 and 30-year or more, amortizing fixed-rate(2) ........... $1,125,996 $21,509 $ 8,051 $40,977 $1,196,533 $40,833
15-year amortizing fixed-rate(2) ....................... 270,730 1,320 338 1,184 273,572 1,177
Adjustable-rate(3) ................................. 63,736 614 212 1,388 65,950 1,383
Alt-A, interest-only, and option ARM(4) ................. 82,438 3,439 1,582 16,270 103,729 16,237
Total single-family ................................. 1,542,900 26,882 10,183 59,819 1,639,784 59,630
Total multifamily .................................. 63,000 — 2 30 63,032 1,457
Total single-family and multifamily ..................... $1,605,900 $26,882 $10,185 $59,849 $1,702,816 $61,087
December 31, 2011
Current
One
Month
Past Due
Two
Months
Past Due
Three Months or
More Past Due,
or in Foreclosure Total Non-accrual
(in millions)
Single-family —
20 and 30-year or more, amortizing fixed-rate(2) ........... $1,191,809 $24,964 $ 9,006 $46,707 $1,272,486 $46,600
15-year amortizing fixed-rate(2) ....................... 256,306 1,499 361 1,367 259,533 1,361
Adjustable-rate(3) ................................. 63,929 724 239 1,842 66,734 1,838
Alt-A, interest-only, and option ARM(4) ................. 109,967 4,617 2,172 22,502 139,258 22,473
Total single-family ................................. 1,622,011 31,804 11,778 72,418 1,738,011 72,272
Total multifamily .................................. 72,715 2 15 69 72,801 1,882
Total single-family and multifamily ..................... $1,694,726 $31,806 $11,793 $72,487 $1,810,812 $74,154
(1) Based on recorded investment in the loan. Mortgage loans that have been modified are not counted as past due as long as the borrower is current under
the modified terms. The payment status of a loan may be affected by temporary timing differences, or lags, in the reporting of this information to us by
our servicers.
(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.”
We have the option under our PC agreements to remove mortgage loans that underlie our PCs under certain
circumstances to resolve an existing or impending delinquency or default. Our practice generally has been to remove loans
from PC trusts when the loans have been delinquent for 120 days or more. As of December 31, 2012, there were $2.2 billion
in UPB of loans underlying our PCs that were 120 days or more delinquent, and that met our criteria for removing the loan
from the PC trust. Generally, we remove these delinquent loans from the PC trust, and thereby extinguish the related PC
debt, at the next scheduled PC payment date, unless the loans proceed to foreclosure transfer, complete a foreclosure
alternative or are paid in full by the borrower before such date.
243 Freddie Mac