Freddie Mac to Purchase Seriously Delinquent Loans

[FreakinDJ]

Freddie Mac to Purchase Substantial Number of Seriously Delinquent Loans

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it will purchase substantially all 120 days or more delinquent mortgage loans from the company's related fixed-rate and adjustable-rate (ARM) mortgage Participation Certificate (PC) securities.

The company's purchases of these loans from related PCs should be reflected in the PC factor report published after the close of business on March 4, 2010, and the corresponding principal payments would be passed through to fixed-rate and ARM PC holders on March 15 and April 15, respectively. The decision to effect these purchases stems from the fact that the cost of guarantee payments to security holders, including advances of interest at the security coupon rate, exceeds the cost of holding the nonperforming loans in the company's mortgage-related investments portfolio as a result of the required adoption of new accounting standards and changing economics. In addition, the delinquent loan purchases will help Freddie Mac preserve capital and reduce the amount of any additional draws from the U.S. Department of the Treasury. The purchases would not affect Freddie Mac's activities under the Making Home Affordable Program.

http://www.freddiemac.com/news/archives/mbs/2010/20100210_pc_securities.html

[cap]

1. this is very important and may help a lot of folks out

I've given up on judging the morality of the bailout... what we need to do is to get bad loans off the books fast and mortgage payments right-sized. If we do, there will be a lot more cash in people's pockets and that will help get the economy going.

Freddie Mac will be able to negotiate with the home owners better than the banks

[FreakinDJ]

2. Yep - they are offering programs to keep people in their homes

Freddie Mac: Your lender should be able to tell you if your mortgage is owned by Freddie Mac. You may also use our secured look-up tool: Does Freddie Mac Own Your Mortgage? If your loan is owned by Freddie Mac, you are eligible to be considered for the President’s Making Home Affordable program. If not, go to Fannie Mae’s website to see if Fannie Mae owns your loan. If neither company owns your loan, call your servicer and ask if they offer the MHA program.

http://www.freddiemac.com/avoidforeclosure/where_to_get_help.html

[laughingliberal]

3. This sounds like a step in the right direction.

on edit: rec'd