Freddie Mac ends buying interest-only loans in September

February 26, 2010 by · Leave a Comment
Filed under: Policy News 

It is surprising Freddie was actually purchasing these loans in the first place.  I would automatically assume a interest only mortgage was not used by a first time home buyer and more likely used by a speculator that was assuming appreciation through a refinance or flip on the sale.  Maybe I am wrong but that seems pretty close to the case.  We do not need to be using taxpayer money to support this type of activity.  We need to help people trying to stay in there home that intend to stay there.

Reuters – Freddie Mac, the second largest purchaser of U.S. residential mortgages, said on Friday that it would stop buying and securitizing all interest-only mortgages because of the poor performance of those loans.

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