Freddie Mac purchases adjustable rate initial interest mortgage loans
Freddie Mac will purchase certain mortgage loans from Freddie Mac adjustable rate Initial Interest Mortgage Participation Certificates.
According to Freddie Mac, this is a direct result of “erroneous loan level data we received on adjustable rate Initial Interest mortgage loans with interest only periods that did not match the interest only periods of the associated adjustable rate Initial Interest PCs.”
In addition, the appendix identifies, by pool and CUSIP number, the Freddie Mac adjustable rate Initial Interest PCs that will experience prepayments in an amount of 5% or more of the unpaid principal balance of the PCs before the June factor.
For these 58 PCs, Freddie Mac will purchase 143 mortgage loans, which were originated between 2005 and 2008, and total approximately $29 million in unpaid principal balance.