2006 Annual Report
The complete report has been divided into four segments for easier online viewing and printing.
To our Stockholders:
2006 was a challenging year in the U.S. housing and mortgage markets, and Freddie Mac shared in those challenges. But even though housing weakened last year, Freddie Mac gained some strength.
Housing starts tumbled by 13 percent in 2006. Home purchases fell 10 percent. Mortgage originations dropped and home prices began to decline in a number of local markets. And the possibility of further weakness in the sector remains a leading concern for economic growth in 2007 – particularly if accompanied by widespread loan defaults or a severe tightening of credit standards.
At this writing, defaults and late payments have remained relatively low on prime mortgages, which are made to lower-risk borrowers and account for the lion’s share of home loans. But late payments have risen swiftly over the past year on subprime mortgages, those made to borrowers having spottier credit histories and posing higher risks. Read more from Richard Syron.
Segment 1 of the Report contains the following information:
Table of Contents BUSINESS REGULATION AND SUPERVISION RISK FACTORS MARKET 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 CONSOLIDATED RESULTS OF OPERATIONS CONSOLIDATED BALANCE SHEETS ANALYSIS CONSOLIDATED FAIR VALUE BALANCE SHEETS ANALYSIS LIQUIDITY AND CAPITAL RESOURCES
Segment 3 of the Report contains the following information:
RISK MANAGEMENT Operational Risks Interest-Rate Risk and Other Market Risks Credit Risks OFF-BALANCE SHEET ARRANGEMENTS CRITICAL ACCOUNTING POLICIES AND ESTIMATES PORTFOLIO BALANCES AND ACTIVITIES QUARTERLY SELECTED FINANCIAL DATA RISK MANAGEMENT AND DISCLOSURE COMMITMENTS
Segment 4 of the Report contains the following information:
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA PROPERTIES LEGAL PROCEEDINGS SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES CONTROLS AND PROCEDURES DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE EXECUTIVE COMPENSATION SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE PRINCIPAL ACCOUNTING FEES AND SERVICES CERTIFICATIONS RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ADDITIONAL FINANCIAL INFORMATION INDEX OF ACRONYMS