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Freddie Mac to Provide Pool-Level Delinquency Data on Securities

""Freddie Mac"":http://www.freddiemac.com announced Tuesday that beginning in January 2011, the company will begin disclosing pool-level delinquency data on a monthly basis for all single-family Freddie Mac Participation Certificate (PC) and Giant PC securities.
[IMAGE] Freddie Mac says providing this delinquency disclosure data at the pool level will make the company's delinquency disclosures consistent with an industry practice previously established by ""Ginnie Mae"":http://www.ginniemae.gov.

Currently, Freddie Mac provides aggregate delinquency data by PC cohort each month to the market and investors about the GSE's single-family securities. However, market participants have expressed interest in more detailed delinquency information when analyzing the attributes of Freddie Mac securities.

Freddie Mac explained in an advisory notice that providing delinquency data at the pool level satisfies the


strong market demand for past-due information on Freddie Mac PCs, as prepayments resulting from delinquencies have grown to represent a significant portion of overall prepayments.

Beginning next month, Freddie Mac will provide the disclosures on a special section of the ""company's Web site"":http://www.FreddieMac.com/mbs. Each month, Freddie will disclose for each PC and Giant PC the loan count and associated aggregate unpaid principal balances (UPB) for mortgage loans that fall into one of four delinquency groups: 30-59 days delinquent, 60-89 days delinquent, 90-119 days delinquent, and 120 days or more delinquent. The information will also include the percentage of delinquent loans as measured against the total number of loans in each security.

Additionally, the new monthly disclosures will include information about certain seriously delinquent loans purchased by Freddie Mac from each PC and Giant PC. As previously announced by the GSE, the company purchases these loans from the related securities because the loans are 120 days or more delinquent and the cost of making guarantee payments exceeds the cost of holding such loans in Freddie Mac's portfolio or the loans have continued their delinquency for a total of 24 months.

""Freddie Mac is providing the market more timely and detailed information about delinquencies of loans backing our PC and Giant securities,"" said Mark Hanson, Freddie Mac's VP of mortgage funding. ""We understand that the new disclosures may aid market participants in modeling prepayment speeds. We will continue to consider disclosure enhancements that meet our investors' changing needs.""

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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