New Freddie Mac second mortgage purchase product proposed

On Tuesday, the Federal Housing Finance Agency sent to the Federal Register a notice of a proposed new product from Freddie Mac to begin purchasing certain single-family closed-end second mortgages.

Freddie Mac proposes to purchase closed-end second mortgages on properties for which it already holds the first mortgage. FHFA has determined this to be a new product that merits public notice and comment about whether it is in the public interest. The FHFA invites interested parties to provide written feedback on the proposed new product. Comments may be submitted via the FHFA’s website or by email to RegComments@fhfa.gov.

Once the Federal Register publishes the notice, a statutory 30-day comment period begins. After that 30-day period has ended, FHFA has a statutory 30-day period to make a final decision as to whether to approve the proposed new product.