Freddie Mac to Eliminate Interest Only Option. Lender Overlays Loom

Posted To:MND NewsWire

Freddie Mac is taking another step in the direction of historically responsible lending habits. The Enterprise today announced it would no longer offer interest only loans as of Sept. 2010. Lenders will undoubtedly enforce this guideline change well in advance of the deadline. HERE is the release: McLean, VA – Freddie Mac (NYSE: FRE) announced today that on or about September 1, 2010, the company will cease purchasing and securitizing interest only mortgages, including Freddie Mac Initial Interest fixed-rate and adjustable-rate mortgages. Additional information will be provided to Freddie Mac Seller/Servicers in an upcoming Single-Family Seller/Servicer Guide bulletin. Interest only mortgages, including Freddie Mac Initial Interest mortgages, provide for interest-only payments for a specified…(read more)

This mortgage update is brought to you by: Adam Quinones – You can read the full article at Freddie Mac to Eliminate Interest Only Option. Lender Overlays Loom

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