Freddie Mac announced yesterday that it will purchase substantially all 120 days or more delinquent mortgage loans from the company’s related fixed-rate and adjustable-rate mortgage Participation Certificate (PC) securities.

The way Freddie Mac has structured the purchases will cause a one-time pain, most of which will be borne by investors who bought Freddie Mac MBS securities during the February settlement cycle, Bank Of America Merrill Lynch analysts said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.