SOURCE: Freddie Mac
May 12, 2014 09:19 ET
MCLEAN, VA--(Marketwired - May 12, 2014) - Freddie Mac (OTCQB: FMCC) announced today that it will purchase certain mortgage loans from Freddie Mac adjustable rate Initial Interest Mortgage Participation Certificates (PCs), identified in an Appendix available on our website. The purchases result from erroneous loan level data we received on adjustable rate Initial Interest mortgage loans with interest only periods that did not match the interest only periods of the associated adjustable rate Initial Interest PCs.
Freddie Mac will purchase the affected mortgage loans on June 16, 2014 and the resulting prepayments will be reflected in the June factor for the adjustable rate Initial Interest PCs backed by these loans.
The Appendix identifies, by pool and CUSIP number, the Freddie Mac adjustable rate Initial Interest PCs that will experience prepayments in an amount of 5% or more of the unpaid principal balance of the PCs before the June factor. For these 58 PCs, Freddie Mac will purchase 143 mortgage loans which were originated between 2005 and 2008 and total approximately $29 million in unpaid principal balance.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at www.FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog www.FreddieMac.com/blog.
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