Industry News

Freddie Mac assists in Mississippi real estate recovery

Low-cost loans are available for about 350 borrowers

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Freddie Mac announced this week it will buy $40 million in bonds that will be used to finance low-cost mortgages to promote recovery efforts in Mississippi areas hit by Hurricane Katrina. Mississippi Home Corp., a state-created corporation that provides financing for affordable housing, will sell the bonds to mortgage giant Freddie Mac, which will allow about 350 borrowers to receive loans with a 5.61 percent interest rate. The announcement marks the first installment on Freddie Mac's commitment to fund up to $1 billion in below-market rate mortgages for storm recovery in Mississippi and Louisiana. Freddie Mac is buying the bonds at a price that will enable MHC to make available an additional $1.2 million to cover three points of down payment or closing cost assistance, which works out to an estimated $3,000 per borrower, according to the announcement by Freddie Mac and the home corporation. Mississippi Gov. Haley Barbour said, "Mississippi is grateful to Freddie Mac and Mississipp...