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Freddie Mac Starts Selling Reperforming Loans

Wed June 29, 2016

Freddie Mac will conduct its first-ever structured sale of seasoned loans from its mortgage-related investments portfolio, according to an announcement from Freddie Mac on Wednesday.

The pilot sale for Freddie Mac-guaranteed loans serviced by JPMorgan Chase is worth $199 million, and the majority of loans are less than six months current or are moderately delinquent, according to Freddie Mac. The collateral is comprised of Option Adjustable-Rate Mortgages (ARMs) and loans that were originated as Option ARMs but were later modified either through the government’s Home Affordable Modification Program (HAMP) or a proprietary modification.

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