Freddie Mac 2015 Annual Report Download - page 245

Financial Statements Notes to the Consolidated Financial Statements | Note 4
Freddie Mac 2015 Form 10-K 243
whether the borrower’s modified interest rate is consistent with that of a borrower having a similar credit
profile at the time of modification. In certain cases, for maturing loans we may provide short-term loan
extensions of up to one year with no changes to the effective borrowing rate. In other cases, we may
make more significant modifications of terms for borrowers experiencing financial difficulty, such as
reducing the interest rate, extending the maturity for longer than one year, providing principal
forbearance, or some combination of these terms.
Impaired Loans
The tables below present our recorded investment in individually impaired loans and the related
allowance for loan losses.
Balance at December 31, 2015 For the Year Ended December 31, 2015
(in millions) UPB Recorded Investment Associated Allowance Net Investment
Average
Recorded
Investment
Interest
Income
Recognized
Interest Income
Recognized
On Cash Basis(1)
Single-family —
With no specific allowance
recorded:(2)
20 and 30-year or more,
amortizing fixed-rate $ 4,957 $ 3,724 N/A $ 3,724 $ 3,381 $ 387 $ 11
15-year amortizing fixed-
rate 45 38 N/A 38 41 8 —
Adjustable-rate 194 191 N/A 191 112 4 —
Alt-A, interest-only, and
option ARM 1,370 1,033 N/A 1,033 844 83 2
Total with no specific
allowance recorded 6,566 4,986 N/A 4,986 4,378 482 13
With specific allowance
recorded:(3)
20 and 30-year or more,
amortizing fixed-rate 72,886 71,215 $ (11,245) 59,970 73,530 2,558 308
15-year amortizing fixed-
rate 975 978 (21) 957 1,033 47 11
Adjustable-rate 518 510 (28) 482 632 19 4
Alt-A, interest-only, and
option ARM 14,409 13,839 (2,725) 11,114 14,958 422 55
Total with specific allowance
recorded 88,788 86,542 (14,019) 72,523 90,153 3,046 378
Combined single-family:
20 and 30-year or more,
amortizing fixed-rate 77,843 74,939 (11,245) 63,694 76,911 2,945 319
15-year amortizing fixed-
rate 1,020 1,016 (21) 995 1,074 55 11
Adjustable-rate 712 701 (28) 673 744 23 4
Alt-A, interest-only, and
option ARM 15,779 14,872 (2,725) 12,147 15,802 505 57
Total single-family $ 95,354 $ 91,528 $ (14,019) $ 77,509 $ 94,531 $ 3,528 $ 391
Multifamily —
With no specific allowance
recorded(2) $ 341 $ 333 N/A $ 333 $ 660 $ 25 $ 9
With specific allowance
recorded 149 142 $ (21) 121 235 8 5
Total multifamily $ 490 $ 475 $ (21) $ 454 $ 895 $ 33 $14
Total single-family and
multifamily $ 95,844 $ 92,003 $ (14,040) $ 77,963 $ 95,426 $ 3,561 $ 405