Freddie Mac 2015 Annual Report Download - page 5
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Introduction About Freddie Mac | Executive Summary
Freddie Mac 2015 Form 10-K 3
CONSOLIDATED FINANCIAL RESULTS
Comprehensive Income
Our comprehensive income for 2015 declined compared to 2014, primarily as a result of the following
items:
• Lower other income, as we did not have any significant litigation settlements in 2015 related to our
investments in non-agency mortgage-related securities. By comparison, we had a number of
significant litigation settlements in 2014;
• We recorded fair value losses in 2015 on certain mortgage loans and mortgage-related securities that
are measured at fair value due to spread widening, while in 2014 we recorded gains due to spread
tightening; partially offset by
• Lower derivative fair value losses in 2015 than in 2014. Longer-term interest rates declined less in
2015 than in 2014, when the yield curve also flattened, leading to lower losses.
Our comprehensive income for 2014 declined compared to 2013, primarily as a result of events that
occurred in 2013 but which did not occur in 2014, including:
• The release of the valuation allowance on our deferred tax asset; and
• Representation and warranty settlements related to our pre-conservatorship single-family loan
purchases.