Freddie to Simplify A-Minus Loans

Freddie Mac is listening to its customers, and will be simplifying its A-minus loans and improving its low-downpayment products, according to Freddie Mac president and chief operating officer Eugene McQuade.Mr. McQuade acknowledged that Freddie Mac's A-minus loan product is too complex and said the company is working to simplify it to lift more families out of the subprime market. Freddie is also creating new mortgage products that allow low downpayments and low -- but still acceptable -- credit scores. He added that Freddie Mac is going to manage credit risk, and "not simply avoid it." The new products are in development, and will be rolled out over the next 12 months. Mr. McQuade spoke before the America's Community Bankers annual convention in Washington. It was his first public speech as Freddie's new president. Freddie Mac can be found online at http://www.freddiemac.com, and ACB can be found at http://www.americascommunitybankers.com.