Freddie Mac 2012 Annual Report Download - page 381

QSPE — Qualifying Special Purpose Entity — A term used within the former accounting guidance on transfers and
servicing of financial assets to describe a particular trust or other legal vehicle that was demonstrably distinct from the
transferor, had significantly limited permitted activities and could only hold certain types of assets, such as passive financial
assets. Prior to January 1, 2010, the securitization trusts that were used for the administration of cash remittances received on
the underlying assets of our PCs and REMICs and Other Structured Securities were QSPEs and, as such, they were not
consolidated.
Recorded Investment — The dollar amount of a loan recorded on our consolidated balance sheets, excluding any valuation
allowance, such as the allowance for loan losses, but which does reflect direct write-downs of the investment. For mortgage
loans, direct write-downs consist of valuation allowances associated with recording our initial investment in loans acquired
with evidence of credit deterioration at the time of purchase. Recorded investment excludes accrued interest income.
Reform Act — The Federal Housing Finance Regulatory Reform Act of 2008, which, among other things, amended the GSE
Act by establishing a single regulator, FHFA, for Freddie Mac, Fannie Mae, and the FHLBs.
REIT — Real estate investment trust
Relief refinance mortgage — A single-family mortgage loan delivered to us for purchase or guarantee that meets the
criteria of the Freddie Mac Relief Refinance Mortgagesm initiative. Part of this initiative is our implementation of HARP for
our loans, and relief refinance options are also available for certain non-HARP loans. Although HARP is targeted at
borrowers with current LTV ratios above 80%, our initiative also allows borrowers with LTV ratios of 80% and below to
participate.
REMIC — Real Estate Mortgage Investment Conduit — A type of multiclass mortgage-related security that divides the cash
flows (principal and interest) of the underlying mortgage-related assets into two or more classes that meet the investment
criteria and portfolio needs of different investors.
REMICs and Other Structured Securities (or in the case of Multifamily securities, Other Structured Securities)—
Single- and multiclass securities issued by Freddie Mac that represent beneficial interests in pools of PCs and certain other
types of mortgage-related assets. REMICs and Other Structured Securities that are single-class securities pass through the
cash flows (principal and interest) on the underlying mortgage-related assets. REMICs and Other Structured Securities that
are multiclass securities divide the cash flows of the underlying mortgage-related assets into two or more classes designed to
meet the investment criteria and portfolio needs of different investors. Our principal multiclass securities qualify for tax
treatment as REMICs.
REO — Real estate owned — Real estate which we have acquired through foreclosure or through a deed in lieu of
foreclosure.
RSU — Restricted stock unit
S&P — Standard & Poor’s
SEC — Securities and Exchange Commission
Secondary mortgage market — A market consisting of institutions engaged in buying and selling mortgages in the form of
whole loans (i.e., mortgages that have not been securitized) and mortgage-related securities. We participate in the secondary
mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed
mortgage-related securities, principally PCs.
Senior preferred stock — The shares of Variable Liquidation Preference Senior Preferred Stock issued to Treasury under
the Purchase Agreement.
Seriously delinquent — Single-family mortgage loans that are three monthly payments or more past due or in the process of
foreclosure as reported to us by our servicers.
SERP — Supplemental Executive Retirement Plan
Short sale — Typically an alternative to foreclosure consisting of a sale of a mortgaged property in which the homeowner
sells the home at market value and the lender accepts proceeds (sometimes together with an additional payment or
promissory note from the borrower) that are less than the outstanding mortgage indebtedness in full satisfaction of the loan.
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