Freddie Mac says it will disclose performance data on a swath of single-family loans that it purchased over a 13-year period representing about 53 percent of Freddie Mac’s total mortgage acquisitions, or 15.7 million mortgages, from Jan. 1, 1999 to Dec. 31, 2011.
The move, directed by the Federal Housing Finance Agency (FHFA), helps pave the way for implementing risk-sharing arrangements with investors who purchase the company’s mortgage-backed securities. The effort is one of the latest aimed at reforming the mortgage finance system.
"We are releasing a tremendous amount of data that will take a while for credit investors to absorb and develop updated models," said Donna Corley, senior vice president of credit, pricing, structuring and securitization at Freddie Mac. "As investors become familiar with Freddie Mac’s single-family credit performance they will be in a better position to participate in any potential future credit risk-sharing transactions."
In an effort to reduce taxpayers’ exposure to potential losses from Fannie Mae and Freddie Mac-backed mortgages, the FHFA committed to "demonstrate the viability of multiple types of risk-transfer transactions" involving mortgages with at least $30 billion in unpaid principal in its recent conservatorship scorecard.