Though Freddie Mac's new modifiable mortgage offering will provide lenders with a solution to bottlenecks associated with heavy refinance activity, analysts say that these products - which carry more prepayment risk - would trade significantly behind TBA securities and would never achieve the liquidity of the TBAs.

Freddie's new product would provide homeowners with an alternative to the refinancing process, the GSE says, by offering a fixed-rate home mortgage that can be modified after it is sold to Freddie Mac. It would be pooled under one of two designated guarantor PC prefixes.

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