Freddie Mac 2015 Annual Report Download - page 58

Management's Discussion and Analysis Our Business Segments | Multifamily
Freddie Mac 2015 Form 10-K 56
through certificates backed by multifamily housing revenue bonds. In 2009 and 2010, we entered into
transactions under Treasury’s NIBP with HFAs. See Note 2 for further information.
• Other mortgage-related guarantees - We guarantee mortgage-related assets held by third parties
in exchange for management and guarantee fee income without securitizing those assets. For
example, we provide guarantees on certain tax-exempt multifamily housing revenue bonds secured
by low- and moderate-income multifamily loans.
Investing Activities
• Mortgage loans - Our primary business model is to acquire loans for aggregation and then to
securitize the loans through the issuance of K Certificates. However, we continue to hold a portfolio of
multifamily mortgage loans that we acquired under our prior buy-and-hold investment strategy. This
portfolio is declining over time.
• Agency mortgage-related securities - We may purchase or retain a portion of the K Certificates
and other types of multifamily securitization products we issue, depending on market conditions, and
we may also buy or sell these securities in the secondary market.
• Non-Agency mortgage-related securities - We may purchase a portion of the unguaranteed
subordinated securities related to our securitization transactions, depending on market conditions.
• CMBS - We are not currently an active purchaser of CMBS. However, we continue to hold a portfolio
of CMBS and other multifamily investment securities that we acquired under our prior buy-and-hold
investment strategy. This portfolio is declining over time.
Customers
Our multifamily loan volume is sourced through our approved lenders. We generally provide post-
construction financing to apartment project operators with established performance records. The following
graphs show the concentration of our 2015 multifamily new business volume by our largest sellers and
loan servicing by our largest servicers as of December 31, 2015. Any seller or servicer with a 10% or
greater share is listed separately.