Freddie Enhancing PC Disclosures

Freddie Mac is enhancing its disclosures so that investors in its guaranteed mortgage-backed securities can tell whether the underlying loans were originated by mortgage brokers or the borrower's income and assets were verified. "Beginning no later than August 2008, Freddie Mac expects to expand its third-party origination disclosure on all newly issued Participation Certificate securities," the secondary-market agency said, so investors can see whether the loans were made by brokers, correspondents, or retail lenders. Freddie Mac says it also plans to start disclosing in June nine new loan-level variables involving income verification, combined loan-to-value ratios, and debt-to-income ratios starting. "These expanded disclosures are timely, particularly in light of continuing volatility in the housing and mortgage markets, and we believe they will help investors better evaluate our securities and help support our mission to provide stability and affordability to America's home financing system," Freddie vice president Mark Hanson said. The government-sponsored enterprise can be found online at http://www.freddiemac.com.