Freddie Mac 2015 Annual Report Download - page 294

Financial Statements Notes to the Consolidated Financial Statements | Note 13
Freddie Mac 2015 Form 10-K 292
The table below summarizes the concentration by year of origination and geographic area of the
approximately $1.7 trillion UPB of our single-family credit guarantee portfolio at both December 31, 2015
and 2014. See Note 4 and Note 6 for more information about credit risk associated with loans and
mortgage-related securities that we hold or guarantee.
December 31, 2015 December 31, 2014 Percent of Credit Losses Year Ended
Percentage
of
Portfolio
Serious
Delinquency
Rate
Percentage
of
Portfolio
Serious
Delinquency
Rate December 31,
2015 December 31, 2014
Year of Origination
2015 17% 0.01% N/A N/A —% N/A
2014 11 0.11% 12% 0.02% — —%
2013 13 0.12% 16 0.06% — —
2012 12 0.11% 14 0.09% — —
2011 5 0.28% 6 0.26% — —
2010 4 0.47% 6 0.46% 1 1
2009 4 0.88% 6 0.92% 2 2
Subtotal - Core single-
family book 66 0.21% 60 0.24% 3 3
HARP and other relief
refinance book(1) 18 0.72% 20 0.75% 8 8
Legacy single-family book 16 4.12% 20 5.13% 89 89
Total 100% 1.32% 100%1.88%100%100%
Region(2)
West 29% 0.79% 29% 1.23% 13% 13%
Northeast 26 2.04% 26 2.81% 41 26
North Central 17 1.13% 17 1.48% 17 22
Southeast 16 1.57% 16 2.40% 25 35
Southwest 12 0.88% 12 1.16% 4 4
Total 100% 1.32% 100%1.88%100%100%
State(3)
Florida 5% 2.16% 6% 3.92% 18% 28%
New Jersey 4 3.90% 4 5.49% 15 6
New York 5 2.94% 5 4.06% 12 4
Illinois 5 1.62% 5 2.17% 8 10
California 18 0.60% 17 0.92% 5 5
All other 63 1.12% 63 1.52% 42 47
Total 100% 1.32% 100%1.88%100%100%
(1) HARP and other relief refinance loans are presented separately rather than in the year that the refinancing occurred (from
2009 to 2015). All other refinance loans are presented in the year that the refinancing occurred.
(2) Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY,
PA, RI, VT, VA, WV); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN,
VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).
(3) States presented based on those with the highest percentage of credit losses during the year ended December 31, 2015.
The REO balance, net at December 31, 2015 and 2014 associated with single-family properties was $1.7
billion and $2.6 billion, respectively, and the balance associated with multifamily properties was $4 million
and $0, respectively. Our single-family REO inventory consisted of 17,004 properties and 25,768
properties at December 31, 2015 and 2014, respectively. In recent years, the foreclosure process has
been significantly slowed in many geographic areas, particularly in states that require a judicial
foreclosure process, which extends the time it takes for loans to be foreclosed upon and the underlying
property to transition to REO.