Freddie Proposed Purchase of Single-Family Second Mortgages

ICBA submitted a letter to FHFA regarding a proposed by Freddie Mac to purchase certain closed-end second mortgages. The letter outlines significant concerns with the proposal, such as recognition of the fact that these loans are readily available in the private sector, including from community banks.

The proposal does not provide sufficient details regarding pricing, property valuation, and risk management, nor does it appear consistent with Freddie Mac’s core housing mission.