Freddie Mac Announces New Factor Methodology for Single-Family and Multifamily Mortgage-Backed Securities
OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) today announced that the company will round, rather than truncate, the last digit of the factors for substantially all Single-Family and Multifamily mortgage-backed securities published on or after July 25, 2016. Currently, Freddie Mac factors are truncated after the last decimal place.
The methodology change is being made primarily in preparation for the Single Security, where Freddie Mac will match Fannie Mae's current factor calculation process. The change will also help ensure a consistent approach to factor calculation across our securities products.
Although factors for Freddie Mac Multifamily Gold PCs will not be impacted, the rounding methodology will be used in calculating and reporting the factors for virtually all Freddie Mac securities products, including but not limited to the following:
Single-Family | Multifamily | Credit Risk Offerings |
Gold PC/Giant | MF 75 PC | Whole Loan Securities |
ARM PC/Giant | MF ARM PC | STACR |
75 PC/Giant | MF 55 PC | |
Strips | MF TEBs | |
REMICs | K-Deals, Q-Deals and Small Balance Deals | |
T-Deals | ||
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