Freddie Mac Expands Repurchase Alternative Pilot for Performing Loans
Freddie Mac (OTCQB: FMCC) announced the nationwide expansion of its performing loan repurchase alternative pilot starting Q1 2025. The program introduces a fee-based structure replacing loan repurchases for most performing loans. Key features include fees for lenders with Non-Acceptable Quality rates above 2%, fee waivers for small lenders without significant NAQ rates, and enhanced risk monitoring. The company also introduced a fee-only remedy option under the traditional program and committed to quarterly repurchase data reporting. Currently, NAQ rates are 28% lower than Q3 2022 peak, with repurchase requests down 55% from Q1 2023 peak, and 80% lower for small lenders.
Freddie Mac (OTCQB: FMCC) ha annunciato l'espansione nazionale del suo programma pilota di riacquisto di prestiti performanti a partire dal primo trimestre del 2025. Il programma introduce una struttura basata su commissioni che sostituisce i riacquisti di prestiti per la maggior parte dei prestiti performanti. Le caratteristiche principali includono commissioni per i prestatori con tassi di Qualità Non Accettabile superiori al 2%, esenzioni dalle commissioni per i piccoli prestatori senza tassi significativi di NAQ e un monitoraggio del rischio migliorato. L'azienda ha inoltre introdotto un'opzione di rimedio solo a pagamento nel programma tradizionale e si è impegnata a riportare i dati sui riacquisti su base trimestrale. Attualmente, i tassi di NAQ sono inferiori del 28% rispetto al picco del terzo trimestre del 2022, con le richieste di riacquisto in calo del 55% rispetto al picco del primo trimestre del 2023, e dell'80% più basse per i piccoli prestatori.
Freddie Mac (OTCQB: FMCC) anunció la expansión nacional de su programa piloto de recompra de préstamos en rendimiento a partir del primer trimestre de 2025. El programa introduce una estructura basada en tarifas que reemplaza las recompras de préstamos para la mayoría de los préstamos en rendimiento. Las características clave incluyen tarifas para prestamistas con tasas de Calidad No Aceptable superiores al 2%, exenciones de tarifas para prestamistas pequeños sin tasas significativas de NAQ y un monitoreo de riesgo mejorado. La empresa también introdujo una opción de remedio solo por tarifa bajo el programa tradicional y se comprometió a informar los datos de recompra trimestralmente. Actualmente, las tasas de NAQ son un 28% más bajas que el pico del tercer trimestre de 2022, con las solicitudes de recompra bajando un 55% desde el pico del primer trimestre de 2023, y un 80% más bajas para los pequeños prestamistas.
프레디 맥 (OTCQB: FMCC)는 2025년 1분기부터 퍼포밍 대출 재매입 대안 프로그램의 전국적 확장을 발표했습니다. 이 프로그램은 대부분의 퍼포밍 대출에 대한 재매입을 대체하는 수수료 기반 구조를 도입합니다. 주요 특징으로는 2% 이상의 비수용 품질(Non-Acceptable Quality) 비율을 가진 대출 기관에 대한 수수료, 의미 있는 NAQ 비율이 없는 소규모 대출 기관에 대한 수수료 면제, 그리고 향상된 위험 모니터링이 있습니다. 이 회사는 전통적인 프로그램에 수수료 전용 구제 옵션도 도입하고 분기별 재매입 데이터 보고를 약속했습니다. 현재 NAQ 비율은 2022년 3분기 정점보다 28% 낮고, 재매입 요청은 2023년 1분기 정점보다 55% 감소했으며, 소규모 대출 기관에 대해서는 80% 더 낮습니다.
Freddie Mac (OTCQB: FMCC) a annoncé l'extension nationale de son programme pilote de rachat de prêts performants à partir du premier trimestre 2025. Le programme introduit une structure basée sur des frais remplaçant les rachats de prêts pour la plupart des prêts performants. Les caractéristiques clés incluent des frais pour les prêteurs avec des taux de Qualité Non Acceptables supérieurs à 2%, des exonérations de frais pour les petits prêteurs sans taux NAQ significatifs et un suivi des risques amélioré. La société a également introduit une option de recours uniquement sur frais dans le cadre du programme traditionnel et s'est engagée à faire rapport sur les données de rachat tous les trimestres. Actuellement, les taux NAQ sont inférieurs de 28% au pic du troisième trimestre 2022, avec une baisse de 55% des demandes de rachat par rapport au pic du premier trimestre 2023, et 80% plus faibles pour les petits prêteurs.
Freddie Mac (OTCQB: FMCC) hat die landesweite Erweiterung seines Pilotprogramms für den Rückkauf von leistungsstarken Krediten ab dem ersten Quartal 2025 bekannt gegeben. Das Programm führt eine gebührenbasierte Struktur ein, die die Rückkäufe von Krediten für die meisten leistungsstarken Kredite ersetzt. Wichtige Merkmale sind Gebühren für Kreditgeber mit nicht akzeptablen Qualitätsraten über 2%, Gebührenbefreiungen für kleine Kreditgeber ohne signifikante NAQ-Raten und verbessertes Risikomonitoring. Das Unternehmen hat auch eine gebührenbasierte Lösungsmöglichkeit im traditionellen Programm eingeführt und sich verpflichtet, die Rückkaufsdaten vierteljährlich zu berichten. Derzeit liegen die NAQ-Raten 28% unter dem Höchststand im 3. Quartal 2022, während die Rücknahmeanfragen um 55% gegenüber dem Höchststand im 1. Quartal 2023 gesunken sind und um 80% niedriger bei kleinen Kreditgebern liegen.
- NAQ rates decreased 28% from Q3 2022 peak
- Repurchase requests declined 55% from Q1 2023 peak
- Small lender repurchase requests dropped 80%
- New fee-based structure offers more flexibility and efficiency for lenders
- Introduction of fee waivers for small lenders benefits smaller market participants
- Lenders with NAQ rates above 2% will face new fee charges
- Implementation of stricter business restrictions for consistently high NAQ rates
Company also offers fee-only remedy under traditional program, commits to greater transparency and reporting on repurchases
MCLEAN, Va., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it will expand its performing loan repurchase alternative pilot to lenders nationwide beginning in the first quarter of 2025. The company also announced a new fee-only option for performing loans. Under that option, lenders can obtain immediate representations and warranties (R&W) relief in lieu of repurchasing a defective loan under the company’s traditional performing loan remedies framework. Finally, Freddie Mac committed to greater transparency and reporting on repurchases.
“In today’s challenging housing market, Freddie Mac is committed to enhancing our processes and reducing costs,” said Sonu Mittal, SVP and head of Single-Family Acquisitions at Freddie Mac. “Today’s announcements are part of making good on our commitment to be part of the solution and build upon the progress we already made with lenders and industry partners over the past year. We know lenders will continue doing their part to keep improving loan quality.”
Broad Expansion of Performing Loan Repurchase Alternative Pilot
The optional repurchase alternative pilot uses a fee-based structure that is more efficient, transparent and rewards lenders that deliver high-quality loans. The company began piloting this new fee-based structure with lender input earlier this year.
Currently, loan repurchase is the primary remedy for all loans with significant defects identified during quality control reviews, regardless of performance status. Under the pilot expansion, lenders will no longer be subject to repurchases on most performing loans and will rather be subject to a fee-based structure that incents quality loan origination. Additionally, the fee structure helps offset Freddie Mac’s credit risk for loans with significant defects that default after the 36-month R&W period.
This new structure provides an alternative to the decades-old single loan repurchase remedy approach. Specifically:
- Lenders with a Non-Acceptable Quality (NAQ) rate above
2% will be charged a fee in a step-up approach based on the unpaid principal balance of loans delivered for the quarter. - The fee will be assessed on lenders who deliver enough loan volume to generate statistically significant sampling.
- Lenders will not be required to repurchase most performing loans with significant defects and Freddie Mac will waive fees for small lenders that do not have a statistically significant NAQ rate.
- Because the new pilot is optional, on an annual basis, lenders can determine which path they want for performing loan repurchases for the upcoming year.
- The process for lenders to appeal and/or correct loans with defects as defined in the Seller/Servicer Guide will remain unchanged.
- This pilot remains within the R&W framework and loans that default within the R&W relief period are still subject to repurchase.
- Freddie Mac has enhanced its Seller risk monitoring program to apply remedies, such as restriction on business, that will trigger if a lender consistently has high NAQ rates.
New Fee-Only Option with Immediate R&W Relief
For lenders who choose to stay on the traditional performing loan repurchase path, the company will now offer a new fee-only remedy for eligible loans. This starts with loans purchased in Q1 2025.
Enhanced Transparency and Reporting on Repurchases
Finally, Freddie Mac is committed to publishing a quarterly report of repurchase data beginning next year. Through this offering, lenders will ultimately be better able to assess their own proprietary data against broader industry manufacturing quality.
Freddie Mac has seen a definitive declining trend in performing loan repurchase requests over the past two years. In fact, NAQ rates on incoming loans to the company are approximately
Mittal added, “We will continue to improve our quality control review process to ensure outcomes are consistent, reasons for defects are well-defined and feedback to lenders is clear. Today we also are committing to enhancing the repurchase data we report in the coming year, so lenders are better able to assess their own proprietary data against broader industry manufacturing quality.”
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
FAQ
When will Freddie Mac (FMCC) expand its performing loan repurchase alternative pilot nationwide?
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