Freddie to Issue Reference REMIC for June
Some good news for secondary market participants arrived late Monday, with Freddie Mac (FRE) saying it would look to issue a Reference REMIC security in June. The GSE did not provide details regarding the size of the expected issuance Reference REMIC securities are a structured alternative to a traditional 30- or 15-year mortgage-backed security and build on Freddie Mac's guaranteed maturity class (GMC) product; Freddie Mac GMCs are structured mortgage-backed securities with a shortened stated final maturity. Since July of last year, Freddie Mac has issued only two such Reference REMICs. The latest, in February, saw its size reduced from $700 million to $400 million. Freddie said further details on the expected issue will be made available the week of June 9. For more details, visit http://www.freddiemac.com. Disclosure: The author held no positions in FRE when this story was originally published. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.