Freddie to Pass Thru Prepays on Hybrid Repos

Freddie Mac has announced that it will pass through full prepayments of principal that represent repurchases of 451 "hybrid" adjustable-rate mortgage loans from 31 single-family ARM participation certificate pools.Freddie Mac said it will reflect the prepayment activity in its February pool factors and will pass through the principal prepayments on the March distribution date for these adjustable-rate PCs. The ARMs and related PCs are all still in their fixed-rate periods. Freddie Mac said one of its sellers recently notified the company that during the second half of 2006 it inadvertently delivered certain ARM loans with a London interbank offered rate index into Freddie Mac PC pools that bear a prefix for Treasury indices. These errors triggered the repurchases, the government-sponsored enterprise said. Freddie can be found online at http://www.freddiemac.com.