Freddie Mac To End Interest-Only Transactions

Posted by Orb Staff on February 26, 2010 No Comments
Categories : Residential Mortgage

Freddie Mac will cease purchasing and securitizing interest-only mortgages, including the Freddie Mac Initial Interest fixed-rate and adjustable-rate mortgages.

The government-sponsored enterprise states that this policy will go into effect on or around Sept. 1. Freddie Mac gave no official reason for the change in policy, and a press statement said that additional information will be provided in an upcoming edition of its Single-Family Seller/Servicer Guide bulletin.

SOURCE: Freddie Mac

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