Freddie Mac has announced changes to the eligibility requirements for its real estate mortgage investment conduit program, starting with August settlements.Initial Interest fixed-rate Gold participation certificates with the prefixes H0 (10/20), H1 (15/15), and H2 (10/10) will now be eligible for use as assets in REMIC securities, Freddie Mac said. Freddie will also permit Initial Interest fixed-rate Gold PCs and regularly amortizing fixed-rate Gold PCs with the same coupon and term to be included in the same REMIC group. Freddie Mac said the change is aimed at offering more options for secondary-market execution for the products and, ultimately, providing more competitive rates to mortgage borrowers. The company began offering Initial Interest Gold PCs early last year. The securities are backed by loans that initially have interest-only periods and thereafter are fully amortizing. For example, the prefix H0 (10/20) identifies a 10-year interest-only period followed by a 20-year fully amortizing period.

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