Clarity Glossary

An indicator denoting whether the loan was originated without a traditional appraisal using Loan Advisor℠ automated collateral evaluation (ACE).

Predefined groups of deals for comparison purposes. Filters do not impact the result of Benchmarks.

Choice of Forbearance, Repayment, Trial Period, and None. Regardless of delinquency status, the type of assistance plan that the borrower is enrolled in that provides temporary mortgage payment relief or an opportunity to cure a mortgage delinquency over a defined period. Note that Borrower Assistance reporting is one month delayed relative to delinquency reporting.

Choice of 1 or 2+. Number of borrowers who, at the time of origination, are obligated to repay the loan.

Combined loan-to-value ratio. The ratio of total UPB of all known outstanding loans at origination to the value of the property. Property value reflects either the lesser of the sales price or the appraised property value for a purchase, or the appraised property value for a refinance.

Choice between Freddie Mac’s Relief Refinance Program (including HARP loans) and non-Relief Refinance loans.

Name of deal which consists of the year of deal issuance, the series type, and sequential counter.

The different categories of CRT comprising: * Low LTV – DN/DNA Series with on-the-run, original LTV 61-80% collateral * High LTV – HQ/HQA Series with on-the-run, original LTV 81-97% collateral * FTR – Off-the-run, seasoned collateral or seasoned first loss offering * HRP – Freddie Mac’s Relief Refinance collateral * Standalone – SAP series with ACIS only policy. * AFRM - ACIS forward risk offering. * Deep MI – Insurance offering beyond traditional mortgage insurance

Choice of Current Period, Prior Period, or None. Payment Deferral is a relief option for borrowers who becomes delinquent due to a short-term hardship that has since been resolved. Past due payments are deferred (non-interest bearing) and will be due at maturity, payoff date, or upon transfer or sale of the Mortgaged Premises Current Period indicates that the Payment Deferral is granted in the current Reporting Period whereas Prior Period indicates the Payment Deferral is granted before the current period.

For a delinquent mortgage only, a flag indicating that the Servicer has reported disaster-related hardship and that the mortgage may be in payment forbearance. Note that disaster reporting is one month delayed relative to delinquency reporting.

Issuance files are available around deal settlement and include the loan-level disclosure and aggregated postal code disclosure. Monthly file is available around Payment Date and includes the loan-level disclosure.

The year in which the loan is liquidated due to short sale, third party sale, REO disposition, note sale or reperforming sale.

Debt-to-income ratio. The ratio of the borrower's total monthly debt expense to total gross monthly income at the time of origination. One indicator of the creditworthiness of borrowers, as it measures their ability to manage monthly payments and repay debts.

Estimated loan-to-value ratio. The ratio obtained by dividing the total outstanding balance of the mortgage loan by the estimated current value of the property obtained through our proprietary Automated Valuation Model (AVM).

Choice of Ever Forbearance – Pre-May 2020, Ever Forbearance – Since May 2020, and Never Forbearance. This indicates borrowers have ever been granted a payment forbearance plan due to disasters or other hardship and if the forbearance was granted before or after the May 2020 Payment Date, which corresponds to March 2020 servicer forbearance reporting.

The standardized credit score used to evaluate the borrower during the loan origination process.

Identifies whether a borrower on the loan qualifies as a first-time homebuyer.

Freddie Mac Single-Family Green MBS supports our company's focus on financing energy efficiency in new and existing single-family homes, helping to preserve home affordability over time.

An affordable, conventional mortgage program available exclusively to housing financing agencies (HFAs) to maximize financing to eligible low-to moderate-income borrowers.

Choice of Home Possible or non-Home Possible. An indicator for loans that were originated through Freddie Mac's Home Possible program.

The classification describing the purpose of a loan between Purchase, Refinance (Cash-Out), Refinance (No Cash-Out), Refinance (Not Specified), or not applicable.

Indicates the current performance status of the mortgage.

Choice of Fixed Severity or Actual Loss. The Tranche Write-down amount is determined using a fixed severity tier for the first 12 CRT transactions. Starting with 2015-DNA1, the CRT program transitioned to an Actual Loss construct where the Tranche Write-down amount is based on actual loss experienced.

Indicates if mortgage insurance has been reported as cancelled.

Indicates the entity responsible for the Mortgage Insurance premium payment.

Choice of Investment, Primary Residence, and Second Home. An indicator of whether the borrower intends to use the property as a primary residence, second home, or investment property.

Choice of STACR or ACIS. Companion deals, where a portion of the risk on a reference pool is sold to both STACR and ACIS investors are found under both selections.

Original loan-to-value ratio. The ratio of original loan UPB to the value of the property. Property value reflects the lesser of the sales price or the appraised property value for a purchase loan. For refinanced loans, it is the appraised property value.

Offered Reference Tranche Percentage. The percentage of the balance of all the Original Notes (which excludes fully retained classes B3H and AH) over the total balance of the Reference Pool for a related Payment Date. Applicable to REMIC transactions only.

Denotes the amortization type and term of the loan.

Identifies the type of property that secures the loan.

Risk layer is defined as loans that are investment property, DTI ratio greater than 45% or is unknown, FICO is less than 680, and cash-out refinance mortgages. Each condition will add one risk layer to the loan.

Year of deal issuance.

Supplemental Subordinate Reduction Amount Target. The maximum threshold for the ORTP, above which any excess will be paid to the most senior subordinate bond. Applicable to REMIC transactions only.

State or U.S. territory.

An indicator that shows if a state requires judicial or non-judicial procedures for foreclosure: * Judicial: The lender must file a lawsuit in court in order to foreclose on a home. * Non-judicial: Lender can foreclose without going through the court system.

An available filter for the top states based on loan volume in CRT reference pools.

Year of loan origination.

This classification describes how the loan exits Freddie Mac’s portfolio. FA signifies Foreclosure Alternatives which include short sales, third-party sales, and charge-offs. NPL_RPL denotes Freddie Mac’s non-performing loan or reperforming loan transactions. REO refers to REO disposition.