Freddie Mac will begin securitizing some mortgage loans that previously were delinquent and that the company had purchased from its related Mortgage Participation Certificate (PC) pools. These mortgage loans have been reinstated to current, performing status and have not been modified.
Reinstated loans must be current at least four consecutive months at the time of securitization. For the initial securitization this month, Freddie Mac elected to securitize reinstated loans that have been current for at least 12 consecutive months.
Read more...Freddie Mac Recirculating Bad Loans into New MBS Pools - CoStar Group