“The mortgages are listed as performing, but Freddie Mac said some are still distressed.”

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Freddie Mac to securitize previously delinquent mortgages

Freddie Mac plans to bundle pools of once-delinquent mortgages, calling the strategy “a new avenue for securitization.”

The mortgages to be used as collateral are re-performing loans, current for the last 12 months. However, the mortgages are not modified and the government-sponsored enterprise did not specify the loss-mitigation strategies used to bring the loans current.

The reinstated loans will be pooled into new Freddie Mac participation certificates with the “R” prefix. These certificates may back new Freddie Mac REMIC and Giant securities in the future, the company said in a statement Thursday.

Rest here…

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