Freddie Mac 2012 Annual Report Download - page 289

funding has been requested under the Purchase Agreement to address a deficit in our net worth, and Treasury is unable to
provide us with such funding within the 60-day period specified by FHFA, FHFA would be required to place us into
receivership if our assets remain less than our obligations during that 60-day period.
At December 31, 2012, our assets exceeded our liabilities under GAAP; therefore no draw is being requested from
Treasury under the Purchase Agreement. As of December 31, 2012, our aggregate funding received from Treasury under the
Purchase Agreement was $71.3 billion. This aggregate funding amount does not include the initial $1.0 billion liquidation
preference of senior preferred stock that we issued to Treasury in September 2008 as an initial commitment fee and for which
no cash was received. We paid quarterly dividends of $1.8 billion on the senior preferred stock in cash in March 2012, June
2012, September 2012, and December 2012 at the direction of the Conservator.
Subordinated Debt Commitment
In October 2000, we announced our adoption of a series of commitments designed to enhance market discipline,
liquidity and capital. In September 2005, we entered into a written agreement with FHFA that updated those commitments
and set forth a process for implementing them. FHFA, as Conservator of Freddie Mac, has suspended the requirements in the
September 2005 agreement with respect to issuance, maintenance and reporting and disclosure of Freddie Mac subordinated
debt during the term of conservatorship and thereafter until directed otherwise.
NOTE 15: CONCENTRATION OF CREDIT AND OTHER RISKS
Single-Family Credit Guarantee Portfolio
Our business activity is to participate in and support the residential mortgage market in the United States, which we
pursue by both issuing guaranteed mortgage securities and investing in mortgage loans and mortgage-related securities.
The table below summarizes the concentration by year of origination and geographical area of the approximately
$1.6 trillion UPB and $1.7 trillion UPB of our single-family credit guarantee portfolio at December 31, 2012 and 2011,
respectively. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” and “NOTE 4: MORTGAGE
LOANS AND LOAN LOSS RESERVES” and “NOTE 7: INVESTMENTS IN SECURITIES” for more information about
credit risk associated with loans and mortgage-related securities that we hold.
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