Even though Freddie Mac's departure from the interest-only loan market could hurt the ability of some companies to originate the product, at least one firm thinks it will benefit from the GSE's decision. "I'm not concerned about it," said Craig Cole, senior vice president of Union Bank, San Francisco. "It's good for us. More business might come our way." Union Bank, unlike some lenders, does not sell its IOs into the secondary market, and instead holds them in portfolio. Many of its IOs are high balance loans and fall into the jumbo category. However, some mortgage bankers are not happy with Freddie's decision to exit the market in the fall. (For more details see the Monday edition of National Mortgage News.)
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