Freddie Mac 2015 Annual Report Download - page 38

Management's Discussion and Analysis Our Business Segments | Single-Family Guarantee
Freddie Mac 2015 Form 10-K 36
We issue the following types of resecuritization products:
• Giant PCs - Giant PCs are resecuritizations of previously issued PCs or Giant PCs. Giant PCs are
single-class securities that involve the straight pass through of all of the cash flows of the underlying
collateral to holders of the beneficial interests.
• Stripped Giant PCs - Stripped Giant PCs are multiclass securities that are formed by resecuritizing
previously issued PCs or Giant PCs and issuing principal-only and interest-only securities backed by
the cash flows from the underlying collateral.
• REMICs - REMICs are resecuritizations of previously issued PCs, Giant PCs, Stripped Giant PCs, or
REMICs. REMICs are multiclass securities that divide all of the cash flows of the underlying collateral
into two or more classes with varying maturities, payment priorities and coupons.
• Other securitization products - From time to time, we issue guaranteed mortgage-related securities
collateralized by non-Freddie Mac mortgage-related securities. However, we have not entered into
these types of transactions as part of our Single-family Guarantee business in several years. In 2009
and 2010, we entered into transactions under Treasury’s NIBP with HFAs. See Note 2 for further
information.
Long-term standby commitments - we provide a guarantee on mortgage assets held by third parties, in
exchange for management and guarantee fees, without securitizing those assets. Long-term standby
commitments obligate us to purchase seriously delinquent loans that are covered by those commitments.
From time to time, we have consented to the termination of our long-term standby commitments and
simultaneously entered into guarantor swap transactions with the same counterparty, issuing PCs backed
by many of the same loans.