Does Freddie Mac Still Have Something to Offer?
With the mortgage market going through dynamic transformations and the federal efforts to phase out the long-standing mortgage giants, the question needs to be asked: is Freddie Mac still bringing something to the table?
As the first quarter of 2014 came to an end, Freddie Mac’s CEO came forward with a fairly positive outlook on how the group strengthens the real estate market. In addition to their strong financial results, he provided the following list of services that the group has been providing the country with:
- Funding Housing: In the first quarter of 2014, Freddie Mac helped nearly 250,000 families purchase or refinance a home. It also funded over 50,000 multifamily properties, most of which were made affordable for renters at or below the median income for the area.
- Helping Struggling Homeowners: Another 65,000 homeowners struggling with their mortgage loans received aid via the group’s Home Affordable Refinance Program. This represents a smaller number compared to earlier quarters, but the group is reporting fewer delinquent loans.
- Shifting Credit Risk: In an effort to spare taxpayers from the burden of Freddie Mac’s risky balance sheet, the group has eliminated a substantial amount of credit risk on $165 billion worth of mortgages and sold off $19 billion of securities throughout the past five quarters.
- Increasing Efficiency and Effectiveness: Freddie Mac reports that it is currently prioritizing improving their operation so as to better serve the country and help mortgage lenders likewise do their own jobs better.
