Freddie Mac, a government-backed mortgage securitizer, is contemplating expanding its portfolio to include home equity loans in addition to first-time mortgages. This potential move could provide borrowers with more favorable terms compared to those offered by private credit markets. Public comments on the proposal recently closed, and it has already garnered praise…
Freddie Mac’s potential shift towards purchasing home equity loans could have significant implications for the housing market. By offering borrowers more attractive terms, Freddie Mac may help increase homeownership rates and stimulate the real estate sector. Additionally, the move could provide broader access to credit for individuals who may not qualify for traditional loans…
In conclusion, Freddie Mac’s consideration of including home equity loans in its portfolio represents a strategic opportunity to support homeowners and facilitate broader access to credit. It will be interesting to see how this proposal develops in the coming months and the potential impact it may have on the housing market.