Finance
Freddie Mac to Provide Monthly Disclosures
Freddie Mac will begin providing monthly updates on loans used as collateral. The GSE is looking to attract investors for its mortgage backed securities.
Beginning in August, Freddie Mac will provide monthly disclosures on loan-levels for single-family, fixed-rate and adjustable-rate mortgage PC securities issued after December 1, 2005.
The company believes the increased reports will help investors determine how quickly bonds will be repaid. By increasing the level of information, Freddie is hoping to draw in investors.
"Today's announcement illustrates our continued commitment to providing the market transparent disclosures on our mortgage-backed securities," said Phil Guth, Freddie Mac vice president of mortgage securitization.
"We believe that providing investors timely, transparent mortgage securities disclosure promotes our mission to provide liquidity, stability and affordability to America's home financing system."
Freddie Mac currently has $1.4 trillion in mortgage bonds outstanding. The company is the second largest buyer of home loans in the nation. It has been struggling with a fairly recent accounting scandal, as it's twin -- Fannie Mae -- has.
Mortgage bonds are susceptible to rising interest rates. When homeowners remain in their homes longer than expected, the speed of return on the principal to the investor slows.
Bonds are also known to suffer when rates fall, due to the loans being repaid more quickly. Investors like to look for younger loans, as they are less likely to be refinanced.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! |
Martin Lukac
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