Freddie Mac 2015 Annual Report Download - page 55

Management's Discussion and Analysis Our Business Segments | Single-Family Guarantee
Freddie Mac 2015 Form 10-K 53
• Administrative expense increases resulted, in part, from our investments in our technology to better
support our lenders and Freddie Mac's products and programs, as well as the new common
securitization platform and the single (common) security initiative.
• REO operations expense increased in 2015 and 2014 compared to the respective prior year. REO
property expenses declined in 2015 and 2014, consistent with a decline in REO inventory in each
year. However, the REO property expenses were offset to a lesser extent by gains on the disposition
of REO properties and recoveries from mortgage insurance, compared to the respective prior year.
• Other non-interest expense increased in 2015 primarily due to property taxes and insurance
expense associated with loans reclassified as held-for-sale and expenses related to the allocation of
funds to certain housing funds pursuant to the GSE Act during 2015.