Freddie Mac is adamant about not sharing details on the success of its Home Possible Advantage Program, with no apparent plans to start revealing it.
But while its feelings toward this didn’t change in its latest third-quarter earnings conference call, there is one thing can be gleaned from the government-sponsored enterprise’s third-quarter conference call: the program isn’t performing badly.
In response to being asked how the program is doing since the second quarter and if the company can reveal any further details about the success of the program, Donald Layton, Freddie Mac CEO, once again, stated a line almost identical to last year, “The program is growing rapidly.”
However, Layton added that the numbers are still very small.
The response almost mirrors his reply last year when Layton simply quantified the success of the 3% down as “rapidly growing in demand.”
The program is still fairly new though. Freddie Mac introduced the 3% down mortgage product barely two years ago to help more first-homebuyers and other qualified borrowers jump into the market.
Last quarter, Layton highlighted two important factors during the call. He stated that 42% of non-refinance purchase buys were to fund loans to first-time homebuyers, which is at the highest level in 10 years, and he also noted that the 97% LTV product has significantly attractive characteristic for first-time homebuyers. So it makes sense that the Home Possible Advantage Program performed well.
Now when compared to this quarter, Layton stated on this call that they experienced a surge in refinance volume, which isn’t a surprise given the aftermath of Brexit.
Due to the lack of information on the success of Freddie Mac’s low down program, the main gauge of success is its partnerships with companies like Quicken Loans and Bank of America, which are outlined in this recent HousingWire magazine feature on low down programs.
Besides that, we’ll have to keep watch of future earning reports.