Mortgage

Fannie Mae, Freddie Mac inadvertently tip off lenders

Fannie Mae and Freddie Mac unintentionally tipped off banks and other big mortgage investors to more loan data than the companies had intended, according to an article from the Financial Times

The Federal Housing Finance Agency told both groups to release data on home loans they guarantee in an effort to encourage private investors to assume more of the risk in the mortgage market, the article said.

Since the data includes the credit performance for more than 30 million single-family mortgages and excludes information on non-standard loans like the Home Affordable Refinance Program, lenders can make certain conclusions about the mortgages.

This information is valuable for mortgage investors and traders because it helps identify loans that face more refinancing obstacles, the article explains.

 

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