Executive Perspectives Blog
Today Freddie Mac reported a net loss of $354 million and a comprehensive loss of $200 million for the first quarter of 2016. This loss was mainly caused by the GAAP accounting measurement differences associated with our use of derivatives to hedge interest rate risk, whereby the derivatives are fair valued but many of the assets and liabilities being hedged are not.
I enjoy woodworking and recently made a bookcase for my daughter's bedroom using multiple tools, including a saw, drill and screws. Without these different tools, it would have been a tough job indeed! In a similar fashion, we take a multiple-tool approach to the way we transfer single-family credit risk at Freddie Mac.
Freddie Mac recently announced Loan Closing AdvisorSM, Loan Product AdvisorSM and Business Intelligence – new tools and functionality scheduled to go live this summer with Loan Advisor Suite. Loan Advisor Suite is Freddie Mac's smart, end-to-end technology solution designed with lenders to help lenders deliver high-quality loans and acquire earlier insight into representation and warranty relief during the loan production process. Freddie Mac SVPs Andy Higginbotham and Christina Boyle discuss the impact on lenders.
Ah, spring – when people buy homes, find new places to rent, write checks, sign complex legal documents and – too often – fall victim to real estate fraud. That's why it is so important to know how to protect yourself from fraud before you sign along the dotted line on a lease or a closing document.
Millennials and other new households should be camping out at open houses, if history is any guide. Mortgage rates are low, averaging four percent. Twice as many housing markets are growing or stable compared to this time last year. And, the nation's 86 million millennials, plus America's rapidly growing immigrant communities, are expected to produce about 1.2 million new households a year for the next ten years, according to statistics from the Harvard Joint Center for Housing Studies and the Collingwood Group.