Freddie Mac 2015 Annual Report Download - page 123

Management's Discussion and Analysis Risk Management | MF Credit Risk
Freddie Mac 2015 Form 10-K 121
Credit Losses and Recoveries
Our multifamily credit losses remain low as a result of the strong property performance of our multifamily
mortgage portfolio. The table below contains details on our multifamily credit losses and delinquencies.
Year Ended December 31,
(dollars in millions) 2015 2014 2013
Charge-offs, gross(1) $9$3$ 29
Recoveries —(1) (1)
Charge-offs, net 9 2 28
REO operations expense (income) 4(9) (16)
Credit losses (gains) $ 13 $ (7) $ 12
Credit losses (gains) (in bps) 0.8 (0.5) 0.9
Number of delinquent loans 4 8 16
(1) Includes cumulative fair value losses recognized through the date of foreclosure for Multifamily loans we elected to carry at
fair value at the time of our purchase.
Loan Loss Reserves
The table below summarizes our multifamily loan loss reserves activity.
Year Ended December 31,
(dollars in millions) 2015 2014 2013 2012 2011
Beginning balance $ 94 $ 151 $382 $545 $828
Provision for credit losses (26) (55)(218)(123)(196)
Charge-offs, gross (9) (3) (7) (36)(75)
Recoveries — 1 1 2 1
Transfers, net — — (7) (6) (13)
Ending balance $ 59 $ 94 $ 151 $382 $545
As a percentage of total multifamily mortgage
portfolio 0.04% 0.07%0.11%0.30%0.47%
TDRs and Non-accrual Loans
The table below provides information about the UPB of multifamily TDRs and non-accrual loans on our
consolidated balance sheets.