Freddie to Outsource Processing to JPMorgan

Freddie Mac has announced the selection of JPMorgan Worldwide Securities Services to provide transaction processing and recordkeeping services for its approximately $700 billion portfolio of mortgage-backed securities and short-term assets.Freddie Mac said the decision to outsource the functions is part of an effort to upgrade its technological capabilities and streamline its operating infrastructure. JPMorgan Worldwide will provide administrative and settlement services for Freddie's estimated $700 billion retained portfolio of longer-term assets (chiefly Freddie Mac-issued MBS) and an estimated $70 billion liquidity and contingency portfolio of short-term assets, the government-sponsored enterprise said. Freddie senior vice president Joseph Rossi said the move would simplify the company's operating environment and enable it to manage its investment assets at the Federal Reserve Bank and the Depository Trust Co. more efficiently. He praised JPMorgan's "state-of-the-art systems," scalable infrastructure, and technology management experience with governments and central banks. The companies can be found online at http://www.freddiemac.com and http://www.jpmorgan.com.