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Freddie Mac initiates pilot to provide standby purchase agreements to warehouse lenders

NationalMortgageProfessional.com
Oct 12, 2009

Freddie Mac has announced a new pilot to help lenders obtain warehouse lines of credit with participating warehouse lenders. The initiative is designed to help single family and multifamily lenders (Freddie Mac Seller/Servicers) find adequate warehouse lines of credit to fund loans for sale to Freddie Mac. Freddie Mac currently is working with warehouse lender Natty Mac, a Guggenheim Partners company, in the pilot program. "The warehouse lending industry has nearly exited the market making it increasingly difficult for lenders to fund loans," said Charles E. Haldeman Jr., chief executive officer for Freddie Mac. "We're proud to help bring much-needed additional liquidity to the residential and apartment financing community." Freddie Mac will provide participating warehouse lenders with standby commitments to purchase qualifying loans in the event a Seller/Servicer cannot meet its contract obligations or fails. Pre-funding reviews are required and normal Freddie Mac purchase and origination processes and procedures apply. Consistent with its charter and without objection from its regulator, the Federal Housing Finance Agency (FHFA), Freddie Mac is providing this standby purchase commitment arrangement with Natty Mac as part of the pilot program. Freddie Mac Seller/Servicers interested and who qualify for this program will need to enter into a separate agreement directly with the participating warehouse lender. The credit line from the warehouse lender that is supported by the standby commitment will fund only the loans the participating Seller/ Servicer intends to sell to Freddie Mac. For more information, visit FreddieMac.com.
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