Freddie Mac Announces Start Of Modified Loans Securitization

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On May 23, Freddie Mac announced that it has begun securitizing certain loans that were modified for borrowers at risk of foreclosure. The announcement explains that (i) to be eligible for securitization, loans must be current for at least six consecutive months, (ii) the modified loans are pooled into new Freddie Mac Fixed-Rate Modified Participation Certificates (Modified PCs) with new “MA-MD” prefixes, and (iii) the pools are not TBA deliverable and do not include loans modified through HAMP. Freddie Mac intends to provide additional pool-level and loan-level disclosures specific to the Modified PCs, as well as pool-level disclosure of payment history covering up to 36 months before the Modified PC issuance.