Freddie Mac 2015 Annual Report Download - page 394

Glossary
Freddie Mac 2015 Form 10-K 392
GLOSSARY
This Glossary includes acronyms and defined terms that are used throughout this report.
ACIS - Agency Credit Insurance Structure - A risk transfer transaction through which we purchase
insurance policies (typically underwritten by a group of insurers and reinsurers) that obligate the
counterparties to reimburse us for specified credit events (based on either actual losses or losses
calculated using a predefined formula) up to an aggregate limit that occur on our first loss and/or
mezzanine loss positions associated with STACR debt note transactions in exchange for our payment of
periodic premiums.
Administration - Executive branch of the U.S. government.
Agency securities - Generally refers to mortgage-related securities issued by the GSEs or government
agencies.
Alt-A loan - Although there is no universally accepted definition of Alt-A, many mortgage market
participants classify single-family loans with credit characteristics that range between their prime and
subprime categories as Alt-A because these loans have a combination of characteristics of each category,
may be underwritten with lower or alternative income or asset documentation requirements compared to
a full documentation loan, or both. We categorize loans in our single-family credit guarantee portfolio as
Alt-A if the lender that delivers them to us classified the loans as Alt-A, or if the loans had reduced
documentation requirements as well as a combination of certain credit characteristics and expected
performance characteristics at acquisition which, when compared to full documentation loans in our
portfolio, indicate that the loan should be classified as Alt-A. In the event we purchase a refinance loan
and the original loan had been previously identified as Alt-A, such refinance loan may no longer be
categorized as an Alt-A loan because the refinance loan is not identified by the servicer as an Alt-A loan.
We categorize our investments in non-agency mortgage-related securities as Alt-A if the securities were
identified as such based on information provided to us when we entered into these transactions.
AMT - Alternative Minimum Tax
AOCI - Accumulated other comprehensive income (loss), net of taxes
ARM - Adjustable-rate mortgage - A mortgage loan with an interest rate that adjusts periodically over the
life of the loan based on changes in a benchmark index.
Board - Board of Directors
Bps - Basis points - One one-hundredth of 1%. This term is commonly used to quote the yields of debt
instruments or movements in interest rates.
Cash and other investments portfolio - Consists of the liquidity and contingency operating portfolio and
restricted cash.
CCO - Chief Compliance Officer
CD&A - Compensation Discussion and Analysis
CEO - Chief Executive Officer