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Friday, February 29, 2008

Freddie Mac: Tightened Standards Working

From Realtor Magazine Online, Daily Real Estate News February 29, 2008

Freddie Mac has been tightening underwriting guidelines and says that the quality of mortgages sold into its bond program has improved since November, its Chief Business Officer Patti Cook said.

"While it's too early to claim victory, we have seen a meaningful improvement in the quality of our deliveries," Cook said on a conference call.

Freddie Mac’s share of the mortgage bond market has risen as other investment sources have dried up. That left Freddie facing record loses in the 4th quarter of 2007 and expecting to lose as much as $5.1 billion in 2008 and 2009.

Source: Reuters News (02/28/08)

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