Freddie Mac Announces Cut Off Date for Interest Only Loan Apps
ByPosted To: MND NewsWire
As reported on February 26 , Freddie Mac has decided to stop purchasing and securitizating loans utilizing the interest only payment option. Freddie's deadline for PURCHASING these loans was set as September 2010, however no application/LP approval date cut-off was provided in the bulletin. This deadline was announced yesterday in Bulletin 2010-7 Here is the verbiage from the release: Effective for mortgages with application dates on or after June 13, 2010 , and for mortgages with Freddie Mac settlements on or after September 1, 2010 we are: Retiring our Initial InterestSM Mortgage offering. Beginning June 13, Initial Interest Mortgages will not be eligible for submission or resubmission to Loan Prospector® . Plain and Simple : if you want to sell Freddie Mac an interest only loan,…(read more)