Freddie Mac 2015 Annual Report Download - page 363

Executive Compensation Compensation Discussion and Analysis
Freddie Mac 2015 Form 10-K 361
The table below presents the Conservatorship Scorecard objectives and FHFA’s assessment of our
achievement against those objectives.
Performance Goals FHFA's Summary of Performance
1 Maintain in a safe and sound manner, credit availability and foreclosure prevention activities for new and
refinanced mortgages to foster liquid, efficient, competitive and resilient national housing finance
markets (40%)
Work to increase access to mortgage credit for creditworthy
borrowers, consistent with the full extent of applicable credit
requirements and risk management practices:
All goals were achieved except for a year-end
deliverable for a portion of the sub-goal related to
improvements to the Representations and Warranties
Framework for originations.
• Finalize improvements to the Representations and Warranties
Framework for originations;
• Continue to provide clarity regarding expectations for servicer
performance and remedies, where appropriate;
• Enhance servicer eligibility standards for our counterparties;
• Continue to encourage greater participation by small lenders, rural
lenders, and state and local Housing Finance Agencies;
• Continue to assess impediments to access to credit. Explore the
feasibility of:
• Greater purchases of loans on manufactured housing secured by
real estate;
• Improving the effectiveness of pre-purchase and early
delinquency counseling through existing or new partnerships with
housing counseling networks.
• Assess the feasibility of alternate credit score models and credit
history in loan-decision models, including the operational and system
implications;
• Prepare to implement Duty to Serve requirements upon publication
of a final rule.
Effectively implement key loss mitigation activities, which include
enabling borrowers to stay in their homes and avoid foreclosure
where possible:
All goals were achieved, except for a year-end
deliverable for a portion of the sub-goal related to the
pursuit of opportunities to encourage HARP-eligible
borrowers to take advantage of beneficial refinance
opportunities.
• Pursue opportunities to encourage current HARP-eligible borrowers
to take advantage of beneficial refinance opportunities;
• Develop and execute additional strategies to reduce the number of
severely aged delinquent loans held, considering tools such as loan
modifications, short sales, deeds in lieu of foreclosure, and non-
performing loan sales. These strategies should be informed by the
Neighborhood Stabilization Initiative and have an emphasis on
improving outcomes in hardest hit markets.
• Develop and execute additional strategies to reduce the number of
vacant real estate owned (REO) properties, considering tools such
as sales to non-profit organizations, repairs to REO properties
before third-party sale, and demolition or possible donation of
uninhabitable properties. These strategies should be informed by the
Neighborhood Stabilization Initiative and have an emphasis on
improving outcomes in hardest hit markets.
• Propose and implement solutions for HAMP borrowers facing rate
resets.
• Continue to engage in efforts to reduce costs for Lender Force
Placed Insurance.
Maintain the dollar volume of new multifamily business at $30
billion or below, excluding: While the goal was achieved, adjustments to the loan caps during the year could have been avoided by
employing a different approach.
• Affordable housing loans, loans to small multifamily properties and
loans to manufactured housing rental communities.
2 Reduce taxpayer risk through increasing the role of private capital in the mortgage market (30%)
Single-Family All goals were achieved
• Transact credit risk transfers on reference pools of single-family
mortgages with a UPB of at least $120 billion;
• In meeting the above target, utilize at least two types of risk transfer
structures;