2004 Annual Report
The complete report has been divided into four segments for easier online viewing and printing.
To our Shareholders:
I am pleased to write you this second annual letter as Chairman and CEO of Freddie Mac – the first covering developments under the company’s new leadership team.
What began as a triage year became a year of mounting progress. By the end of 2004, our steps forward had begun to build real momentum. While we still have many challenges, I feel good about where we are and where we’re going.
Our progress has come in three phases. First, we acted to repair the company’s accounting, reputation and key relationships. Second, we laid a strong organizational foundation for the future. This has meant putting in place a tested and talented senior management team and reorganizing the company to be more agile, control costs and move toward operating excellence. Third, we are taking specific steps to build on this foundation, fulfill our vital public mission and produce lasting value for our shareholders.
Freddie Mac’s employees are highly able, loyal and committed to our mission. The key is providing the right kind of leadership and sense of urgency. Read more from Richard Syron.
Segment 1 of the Report contains the following information:
Table of Contents BOARD OF DIRECTORS EXPLANATORY NOTE BUSINESS Financial Information about Segments Business Review Market Overview Mortgage Purchase and Guarantee Activity The To Be Announced Market Resecuritization Portfolio Investment PC Market-Making and Support Activities Mortgage Security Performance and Other Market Support Activities Regulation and Governmental Relationships PROPERTIES LEGAL PROCEEDINGS SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS MARKET PRICE FOR THE COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES FORWARD-LOOKING STATEMENTS SELECTED FINANCIAL DATA
Segment 2 of the Report contains the following information:
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE SUMMARY OUR RETAINED AND TOTAL MORTGAGE PORTFOLIOS CRITICAL ACCOUNTING POLICIES AND ESTIMATES CONSOLIDATED RESULTS OF OPERATIONS CONSOLIDATED BALANCE SHEETS ANALYSIS AVERAGE CONSOLIDATED BALANCE SHEETS AND RATE/VOLUME ANALYSIS CONSOLIDATED FAIR VALUE BALANCE SHEETS VOLUME STATISTICS LIQUIDITY AND CAPITAL RESOURCES OFF-BALANCE SHEET ARRANGEMENTS
Segment 3 of the Report contains the following information:
RISK MANAGEMENT Risk Oversight Operational Risk Interest-Rate and Other Market Risks Credit Risks QUARTERLY SELECTED FINANCIAL DATA SUBSEQUENT ACCOUNTING REVISIONS VOLUNTARY COMMITMENTS
Segment 4 of the Report contains the following information:
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA DIRECTORS AND EXECUTIVE OFFICERS EXECUTIVE COMPENSATION SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS INDEMNIFICATION AND OTHER REIMBURSEMENTS OF DIRECTORS, OFFICERS AND EMPLOYEES PRINCIPAL ACCOUNTANT FEES AND SERVICES CERTIFICATIONS RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS INDEX OF ACRONYMS