DS News

» VISIT US ONLINE @ DSNEWS.COM 55 DS News Government Progress Report k ey per sonnel Donald H. Layton CEO David M. Brickman EVP, Multi-Family Business Michael Hutchins SVP, Investments and Capital Market Timothy F. Kenny SVP and General Auditor David Lowman EVP, Single-Family Business Robert Lux SVP and Chief Information Officer James J. Mackey EVP & CFO William McDavid EVP, General Counsel and Corporate Secretary Dwight Robinson SVP, HR & Chief Diversity Officer Carol Wombeke SVP and Chief Compliance Officer Jerry Weiss EVP and Chief Administrative Officer Paige Wisdom EVP and Chief Enterprise Risk Officer STAFFING: Full-time employees: 5,100 DS News Housing Score B+ MISSION » Freddie Mac was chartered by Congress in 1970 to provide liquidity, stability, and affordability to the housing market. Freddie Mac makes home ownership possible for one in four homebuyers and is one of the largest sources of finance for multifamily housing. » Freddie participates in the secondary mortgage market by purchasing loans and mortgage-related securities for investment and issuing guaranteed mortgage-related securities, principally PCs. SUCCESSES » Freddie's comprehensive income for 2013 was $51.6 billion compared to $16.0 billion for 2012. These figures include $48.7 billion of net income and $2.9 billion of other comprehensive income. » The April 2014 financial report released by Freddie shows Total number of loan modifications was 6,435 in April 2014 and 25,063 for the four months ended April 30, 2014. Single-family seriously delinquent rate decreased from 2.20 percent in March to 2.15 percent in April. Multifamily delinquency rate increased from 0.04 percent in March to 0.05 percent. Single-family refinance-loan purchase and guarantee volume was $8.8 billion in April. » New Rules for Servicers On June 3, Freddie announced revisions to policies, including rules about short sales and deeds-in-lieu of foreclosure (DILs), the CFPB's mortgage servicing rules, and unemployment forbearance. Service members will be able to qualify for a short sale or DIL based on evaluations conducted on or after August 1, 2014, if the property is or was the borrower's primary residence. Other revisions include trial period payment adjustments after the borrower exercises the right to appeal, delay in referral to foreclosure or proceeding with the next legal action, foreclosure sale date timing, and borrower solicitation letters. OPPORTUNITIES/ISSUES » Despite Fannie and Freddie improving a bad situation, critics aren't happy. Some say the mortgage industry's reluctance to extend loans to borrowers with less-than-perfect credit has shut many Americans out of housing. » With Fannie and Freddie now being owned by the government, they are more powerful, and they're flexing their muscles by refusing to adhere to foreclosure laws. » In June 2014, Massachusetts Attorney General Martha Coakley filed suit against Fannie and Freddie and their regulator/conservator, the Federal Housing Finance Agency, to defend the state's foreclosure prevention laws. » The filing alleges that the defendants are unlawfully blocking the sale of homes to altruistic entities like Boston Community Capital. » Sources report the Attorney General's actions are timely, considering Massachusetts foreclosures have increased 58 percent in one year. » Sources report that Attorney General Coakley is opening a window on the absurdity of a federal housing agency that won't hold itself to the same standards it sets for others. » In 2011, Chicago sued Fannie and Freddie because they refused to honor laws that established a citywide database of vacant properties and required banks to keep their foreclosed properties in good condition. Fannie and Freddie sued Chicago, claiming their nationalization exempted them from local regulations. A federal judge agreed. CURRENT STATUS The Senate Banking Committee is considering replacing Freddie (and Fannie) with a federal insurance program. However, some investors and financial firms have organized an effort to prevent that action. BUSINESS SCOPE » Single-Family Credit Guarantee business for home loans » Multifamily business for apartment financing » Investment business for mortgages and mortgage- related securities, other investments, debt financing, and managing interest-rate risk, liquidity, and capital position Provided $2.3 trillion to the mortgage market Helped 11.6 million families buy, rent, or refinance a home. Purchased 2.1 million home loans and 7.8 million refi loans Credit quality of 2014 loans: 740 Average FICO score Helped 987,000 borrowers avoid foreclosure – 79 percent retained their homes Freddie Mac (FHLMC) | CORPORATE HEADQUARTERS: McLean, Virginia, with regional offices in Atlanta, Chicago, Dallas, Los Angeles, and New York $2.3 TRILLION 11.6 MILLION FAMILIES 2.1 MILLION HOME LOANS 740 AVG. FICO SCORE 987,000 BORROWERS Since January 1, 2009, Freddie Mac has

• Cover