Freddie Mac will begin securitizing modified single-family loans, according to the government-sponsored enterprise.And depending on the performance of the pools, the GSE might sell the new modified participation certificates at a later date.
The first Freddie Mac fixed-rate modified PC consists of $1 billion in non-HAMP modified loans that have been current for at least six months.
"Securitizing loans that have been modified and are now performing will allow Freddie Mac to better manage its mortgage-related investments portfolio," said Freddie Mac vice president Adama Kah.
Freddie Mac will provide additional pool-level and loan-level disclosures specific to the modified PCs.
"As we continually seek to provide more transparency to the investment community, we are providing additional information on these securities which should aid in their valuation," said Neil Hughes, vice president and interim head of single-family securitization.
Since November 2011, Freddie has securitized $3 billion in previously delinquent, non-modified loans. These delinquent loans were purchased out of PCs.
