Freddie Mac 2012 Annual Report Download - page 343

Table 80 — Achievement of Corporate Performance Measures for At-Risk Deferred Salary
Performance Measure Weighting Targets/Goals Scoring
Summary of Performance
Against Targets
1. Build a New Infrastructure 30% 28.4%
•Continued progress on, or
completion of, mortgage
market enhancement activities
already underway
15% • Develop template for enhanced loan-level disclosures for single-family
MBS that incorporates market standards and is consistent with maintaining
liquidity in the to-be-announced market. Template to be submitted to
FHFA by June 30, 2012.
14.9% • Substantially achieved all
targets/goals. While the
company notified the market
of the servicing data
proposal, the standard itself
was not issued by year-end.
– Loan-level disclosure in
Mortgage-Backed Security
(MBS);
• Meet articulated Uniform Mortgage Data Program (UMDP) timetables as
follows:
– Uniform Mortgage Data
Program (UMDP) ; and
— Uniform Collateral Data Portal (UCDP) electronic appraisal submission
requirement by March 19, 2012.
– Seller Servicer contract
harmonization.
— Uniform Loan Delivery Data (ULDD) format loan delivery data by July
23, 2012.
— Deliver new ULDD data point in compliance with SEC Rule 15Ga-1 by
November 30, 2012.
— Notify market of optional ULDD data points, including those necessary to
improve disclosure and for other business uses in 2012.
• Notify market of servicing data standard, including data necessary to
improve disclosure, and agree on timetable for data collection to begin in
2013 by December 31, 2012.
• Develop plans that leverage uniform appraisal data and ULDD for
enhanced risk management by December 31, 2012.
• Cooperate with FHFA implementation of portal to accept electronic
appraisals.
• Appropriate resource allocation to seller-servicer contract harmonization
and commitment to targeted timetables as outlined in FHFA directive.
•Securitization Platform 10% • In collaboration with FHFA and Fannie Mae, develop and finalize a plan
by December 31, 2012 for the design and build of a single securitization
platform that can serve both GSEs and a post-conservatorship market with
multiple future issuers.
9.0% • Substantially achieved all
targets/goals, but the
platform design was not
finalized by December 31,
2012.
•Pooling and Servicing
Agreements
5% • Propose a model pooling and servicing agreement, collaborate with other
Enterprise and FHFA on a specific proposal, seek public comment, and
produce final recommendations for standard GSE trust documentation by
December 31, 2012.
4.5% • Substantially achieved all
targets/goals. However,
while recommendations were
submitted to FHFA on
December 20, they were not
finalized by year-end.
2. Contract the Enterprises
dominant presence in the
marketplace while simplifying
and shrinking certain
operations.
30% 28.3%
•Work with FHFA to evaluate
options for meeting
conservatorship goals,
including shifting mortgage
credit risk to private investors
via assessment of:
10% • Undertake a market analysis by December 31, 2012, of the viability of
multifamily business operations without government guarantees. Review
the likely viability of these models operating on a stand-alone basis after
attracting private capital and adjusting pricing if needed.
10.0% • All targets/goals were
achieved.
• Perform analysis of investments portfolio as described in the strategic plan
by the fourth quarter of 2012 and make preparations for the competitive
disposition of a pool of nonperforming assets by September 30, 2012.
– Multifamily line of business • Review options with board of directors and FHFA and make appropriate
recommendations for future actions.– Investment assets and
nonperforming loans • Implement plan agreed to by board and FHFA.
•Risk Sharing 10% • Initiate risk sharing transactions by September 30, 2012. 8.3% • Substantially achieved all
targets/goals. However, no
risk-sharing transactions
were entered into during
2012.
• Execute new risk-sharing transactions beyond the traditional charter
required mortgage insurance coverage.
• Propose timeline for continued growth in risk-sharing transactions through
2013.
•Pricing 10% • Develop and begin implementing plan to increase guarantee fee pricing to
more closely approximate the private sector.
10.0% • All targets/goals were
achieved.– Single-family Guarantee Fee
Pricing Increases • Set uniform pricing across loan sellers to extent practicable.
– Set plan to price for state law
effects on mortgage credit
losses given default
• Work with FHFA to develop appropriate risk-based pricing by state. State-
level pricing grid to be completed by August 31, 2012.
338 Freddie Mac