Freddie to Enhance PC Pools

Freddie Mac has announced that, as part of an ongoing review of its mortgage participation certificate disclosure practices, it will implement enhancements for all PC pools beginning in July 2004.These enhancements are intended to promote transparency as well as improve the accuracy of payment and disclosure. Specifically, Freddie will disclose three new elements: First Payment Distribution, to provide the loan count, the percentage of unpaid principal balance, and the percentage of all loans underlying the related PC that have not yet reached their first payment date; First P&I Payment, representing the first date on which principal as well as interest will be due on this type of mortgage in a PC pool; and Weighted Average Original Loan Size, the weighted average of the origination amounts for mortgages in all PCs as of pool formation. Additional enhancements will be instituted as of July. Freddie Mac can be found online at http://www.freddiemac.com.