[1]Freddie Mac [2] will be adding loan-level actual loss data to its Single-Family Loan-Level Historical Dataset [3] in order to increase investor transparency, the company announced [4] on Monday.
Investors will be able build more accurate credit performance models in support of Freddie Mac's single-family credit risk offerings with the increased transparency the company will offer, according to the announcement.
"It is important for investors to have this expanded view of credit risk, especially as we continue to grow and evolve our credit risk offerings," said Kevin Palmer, VP of single-family strategic credit costing and structuring for Freddie Mac. "Having data openly available in the marketplace allows us to expand the amount of risk transferred to private investors."
Freddie Mac's Single-Family Loan-Level Historical Dataset was first made available in March 2013 and covers about 17 million 30-year, fixed-rate, single-family mortgage loans that originated between January 1, 1999, and June 30, 2013. Other data that includes actual loss and monthly loan performance, which includes credit performance up to and including property disposition is current through December 31, 2013.
The dataset will include loan-level loss information such as expenses and recoveries as well as credit performance data for 30-year fixed-rate single-family mortgages. It does not include data for other types of mortgages, such as adjustable-rate, balloon, initial interest, government-insured, refinancing relief mortgages such as the Home Affordable Refinance Program (HARP [5]), or any other non-standard mortgages.
"We expect to introduce an actual loss credit offering in our ACIS reinsurance and STACR programs next year," Palmer said. "We are releasing this data now to give potential credit investors sufficient time to get familiar with Freddie Mac's actual loss performance."