Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
| • | Research and assess opportunities to further partnerships with housing finance agencies. |
| • | Report to FHFA the actual amount of underlying mortgage credit risk transferred. |
| • | Assess and, as appropriate, begin implementation of strategies to redesign the Uniform Appraisal Dataset. |
For purposes of reporting on loan and commitment activity under the 2018 Scorecard, the Enterprises must: a) use the definitions for determining unit affordability of seniors housing assisted living units, coop units, and shared living arrangements, including student housing, that are included in the August 2015 housing goals regulation; b) use affordability data as of the loan acquisition date; c) report monthly to FHFA on their acquisition and commitment volumes using a reporting format that aligns with the Scorecard categories; and d) report quarterly on their acquisition volumes under the capped category and under the affordable and underserved excluded category in a public disclosure using a reporting format to be determined by FHFA.
Appendix B: Single-Family Credit Risk Transfer Guidelines
For 2018, targeted single-family loan categories for credit risk transfer include: non-HARP, fixed-rate mortgages with terms greater than 20 years and LTV ratios above 60percent.
These targeted loan categories do not include the following:
| • | Loans with quality control defects: Loans the Enterprises require lenders to repurchase, are pending repurchase, or require a repurchase alternative such as lender indemnification or recourse. |
| • | Prepayments: Loans that are prepaid prior to being included in a credit risk transfer transaction, although this does not include loans that may be removed from mortgage-backed securities when a loan is in default. |
| • | Loans that are not newly originated or funded: Loans that are seasoned with three or more months of performance at the time of Enterprise acquisition (both bulk transactions and individual seasoned loan purchases). |
| • | Loans that are held by third parties: |
| • | Loans, guaranteed by the Enterprises, that are part of Long Term Stand By commitments, which are held by third parties and do not involve the Enterprise acquiring or securitizing the loan at the time of providing the guarantee. |
| • | Loans that are part of Long Term Stand By unwinds, which ends the commitment with the third party by simultaneously issuing mortgage-backed securities backed by many of the same loans used in the original transaction. |
| • | Government guaranteed loans: Loans that are guaranteed by the Federal Housing Administration, Veterans Affairs, or Rural Housing. |
| • | High Loan-to-Value (LTV) Streamlined Refinance Program: Refinance loans that are issued under the Enterprises’ High-LTV Streamlined Refinance Program. |
For loans that have prepaid as a result of a High-LTV Streamlined Refinance, the Enterprises will modify the structure of their CRT transactions to allow the newly refinanced loan to return to the reference pool in place of the loan that prepaid. This will help preserve CRT coverage on the original loan. Because High-LTV Streamlined Refinance loans will be replacing a previous loan in the reference pool, loans under this program are not separately included as a targeted loan category for purposes of this measure.
About Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC)
Federal Home Loan Mortgage Corporation is a government-sponsored enterprise (GSE). The Company is engaged in the investment of mortgage loans and mortgage-related securities. The Company operates in three segments: Single-family Guarantee, Multifamily and Investments. Its Single-family Guarantee segment reflects results from the Company’s single-family credit guarantee activities. The Multifamily segment reflects results from its investment, securitization and guarantee activities in multifamily loans and securities. The Investments segment reflects results from managing its mortgage-related investments portfolio, its treasury function and interest rate risk. It purchases residential mortgages originated by mortgage lenders. It packages the mortgage loans into mortgage-related securities, which are guaranteed by the Company and are sold in the global capital markets. It does not originate mortgage loans or lend money directly to consumers.
