Freddie Mac: Mortgage Rates Edged Up

Mortgage rates edged up this week compared to last week, according to Freddie Mac’s Primary Mortgage Market Survey.

In fact, fixed mortgage rates on average made their biggest one-week gain so far this year, the government-sponsored enterprises reports. Still, rates remain near historical lows.

For the week ending Sept. 18, the average rate for a 30-year fixed-rate mortgage (FRM) was 4.23%, up from 4.12% the previous week. A year ago at this time, the 30-year FRM averaged 4.50%.

The average rate for a 15-year FRM was 3.37%, up from 3.26% a week prior. A year ago at this time, the 15-year FRM averaged 3.54%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.06%, up from 2.99% the previous week. A year ago, the five-year ARM averaged 3.11%.

The average rate for a one-year Treasury-indexed ARM was 2.43%, down slightly from 2.45% the week prior. At this time last year, the one-year ARM averaged 2.65%.

“Fixed-rate mortgage rates rose this week following the increase in 10-year Treasury yields being partially fueled by market speculation the Federal Reserve might change its interest rate guidance,” says Frank Nothaft, vice president and chief economist for Freddie Mac, in a statement. “Meanwhile, the Labor Department reported that its Consumer Price Index (CPI) declined 0.2 percent in August, reflecting declines in energy prices. Excluding food and energy, the CPI was unchanged.”

Freddie Mac: 30-year mortgage rate jumps to 4.23% from 4.12% last week

Mortgage rates rose this week at the fastest pace of the year, with Freddie Mac’s survey showing lenders were offering 30-year fixed-rate loans at an average of 4.23%, up from 4.12% last week. 

It was the highest rate that the weekly survey has recorded since May 1, Freddie Mac reported.

The average for a 15-year fixed-rate loan rose to 3.37% from 3.26%, according to the survey, released Thursday. The start rate for mortgages that become adjustable after five years at a fixed rate rose to 3.06% from 2.99%. 

Glitches, complaints plague Ocwen, other mortgage servicers

Translated into the terms borrowers actually receive, the increase would mean a loan at 4.25% interest per year instead of 4.125%. The monthly payment on a 30-year, $350,000 fixed-rate loan would rise from $1,696 to $1,722.

Consumers thinking about whether to buy homes have been getting mixed signals from housing market indicators.

Sharp price increases of recent years have leveled off, with many sellers having to cut their asking prices in order to find buyers. Surveys show home builder confidence is at its highest level in nine years, but housing starts dropped more than forecast in August.

lRelated Housing price cuts point to a shift in Southland market
Real EstateHousing price cuts point to a shift in Southland marketSee all related

Freddie Mac’s weekly survey asks lenders about the terms they are offering on loans up to $417,000 to solid borrowers with 20% down payments or equivalent equity if they are refinancing.

The borrowers would have paid about half of 1% of the loan amount in upfront lender fees and discount points to obtain the rates. 

The increases were fueled in part by an uptick in the yield, or effective interest rate, that investors are demanding on 10-year Treasury notes, a benchmark for long-term home lenders, noted Frank Nothaft, Freddie Mac’s chief economist.  

Only 3 in 10 checking accounts are free, survey says

Only 3 in 10 checking accounts are free, survey says Walter Hamilton Its getting ever harder to find free checking at the nations banks, with barely three in 10 accounts coming with no monthly service fees, according to a new survey. Its getting ever harder to find free checking at the nations banks, with barely three in 10 accounts coming with no monthly service fees, according to a new survey. ( Walter Hamilton ) –>

The yield on the 10-year note, which dipped to near 2.3% at the end of August, has risen recently to about 2.6% — a level it last touched in early July.  

Investors are warily watching the Federal Reserve wind down a huge economic stimulus program it has pursued for six years. To keep long-term interest rates low, the Fed has bought trillions of dollars in Treasury securities and mortgage bonds issued by government-backed Freddie Mac, Fannie Mae and Ginnie Mae.

On Wednesday, the central bank announced that it would further reduce its purchases of these securities, keeping it on track to end the so-called quantitative easing program next month.

Bank and home lending trends @ScottReckard

Copyright © 2014, Los Angeles Times

Fitch Rates 2014-K39 Multifamily Mtge PT Ctfs and Freddie Mac SPC, Series K …

CHICAGO, Sep 18, 2014 (BUSINESS WIRE) –
Fitch Ratings rates FREMF 2014-K39 Multifamily Mortgage Pass-Through
Certificates and Freddie Mac Structured Pass-Through Certificates,
Series K-039 as follows:

FREMF 2014-K39 Multifamily Mortgage Pass-Through Certificates

–$156,270,000 class A-1 ‘AAAsf’; Outlook Stable;

–$977,510,000 class A-2 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X1 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X2-A ‘AAAsf’; Outlook Stable;

–$63,172,000 class B ‘Asf’; Outlook Stable;

–$33,249,000 class C ‘BBB+sf’; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-039

–$156,270,000 class A-1 ‘AAAsf’; Outlook Stable;

–$977,510,000 class A-2 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X1 ‘AAAsf’; Outlook Stable.

*Notional amount and interest only.

Fitch did not rate the following classes of FREMF 2014-K39: the
$196,167,775 interest-only class X3, the $196,167,775 interest only
class X2-B, or the $99,746,775 class D. Fitch did not rate the
$196,167,775 class X3 of the Structured Pass-Through Certificates,
Series K-039.

The certificates represent the beneficial interests in a pool of 105
commercial mortgages secured by 107 properties. The Freddie Mac
Structured Pass-Through Certificates, Series K-039 (Freddie Mac SPC
K-039) represents a pass-through interest in the corresponding class of
securities issued by FREMF 2014-K39. Each Freddie Mac SPC K-039 security
has the same designation as its underlying FREMF 2014-K39 class. All
loans were originated specifically for Freddie Mac by approved Seller
Servicers. The certificates follow a sequential-pay structure.

Fitch reviewed a comprehensive sample of the transaction’s collateral,
including site inspections on 63.7% of the properties by balance and
cash flow analysis of 73.8% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR)
of 1.13x, a Fitch stressed loan-to value (LTV) of 104.6%, and a Fitch
debt yield of 8.31%. Fitch’s aggregate net cash flow represents a
variance of 7% to issuer cash flows.

KEY RATING DRIVERS

Low Fitch Leverage: This transaction has slightly lower leverage than
other recent Fitch-rated, fixed-rate, 10-year Freddie Mac deals. The
Fitch stressed LTV ratio is 104.6%, and is below the average of 2013
Fitch-rated, 10-year, K-Series Freddie Mac deals, which averaged 112.8%.
The Fitch stressed DSCR, at 1.13x, is slightly above the average of
1.12x for the 2013 Fitch-rated, 10-year, K-series Freddie Mac deals.

Partial Interest and Interest Only Loans: Twenty-two loans representing
20.1% of the pool are full-term interest only, and 34 loans representing
39% of the pool have partial-term interest-only components. Based on the
loans’ scheduled maturity balance, the pool is expected to amortize
12.79% during the term.

Credit Opinion Loan: The third largest loan in the pool (2.6%) has a
Fitch credit opinion of ‘AAAsf’ on a stand-alone basis. The loan is
secured by 250 Mercer Street, a 256-unit high rise co-op complex located
in the Greenwich Village section of Manhattan within the New York
metropolitan statistical area (MSA).

Loan Concentration: The top 10 loans constitute 31.8% of the pool, which
is slightly lower than that of recent Freddie Mac transactions. The top
loan in the pool, The Bays Apartment Homes, constitutes 9.5% of the
pool. The second largest loan is 3.1% of the pool.

Property-Type Concentration: Of the pool, 100% is backed by multifamily
properties. Three loans (5.6%) are classified as student housing and one
loan (2.1%) is classified as independent living.

Strong Origination Practices: All loans were originated specifically for
Freddie Mac by approved Seller Servicers and adhere to the originator
best practices identified by Fitch. Freddie Mac multifamily loans had an
average delinquency rate of 0.02% as of June 2014 compared with 5.65% on
Fitch-rated CMBS multifamily loans as of the same period. Based on these
program attributes, Fitch applies a programmatic credit to Freddie Mac
transactions.

Asset Volatility: Three loans in the top 10 have asset volatility scores
of 4 due to their locations in historically volatile regions as
determined by Fitch. Overall, 13 loans in the pool have volatility
scores of 4, representing 14.05% of the pool balance.

RATING SENSITIVITIES

Fitch performed two model-based break-even analyses to determine the
level of cash flow and value deterioration the pool could withstand
prior to $1 of loss being experienced by the ‘BBB+sf’ and ‘AAAsf’ rated
classes. Fitch found that the FREMF 2014-K39 pool could withstand a
46.6% decline in value (based on appraised values at issuance) and an
approximately 20.3% decrease to the most recent actual cash flow prior
to experiencing $1 of loss to the ‘BBB+sf’ rated class. Additionally,
Fitch found that the pool could withstand a 48.1% decline in value and
an approximately 22.6% decrease in the most recent actual cash flow
prior to experiencing $1 of loss to any ‘AAAsf’ rated class.

Key Rating Drivers and Rating Sensitivities are further described in the
accompanying presale report.

The Master Servicer is KeyBank National Association, rated ‘CMS1′ by
Fitch. The Special Servicer is Berkeley Point Capital LLC rated ‘CSS3+’,
by Fitch.

The presale report is available at ‘www.fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Criteria for Analyzing Multiborrower U.S. Commercial Mortgage
Transactions’, June 2014;

–’Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions’ September 2013;

–’U.S. Commercial Mortgage Servicer Rating Criteria’, February 2014;

–’U.S. Fixed-Rate Multiborrower CMBS Surveillance and ReREMIC
Criteria’, December 2013;

–’Global Structured Finance Rating Criteria’, August 2014.

Applicable Criteria and Related Research:

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage
Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748778

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Rating Criteria for U.S. Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=876134

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.

SOURCE: Fitch Ratings

Fitch Ratings
Primary Analyst
Clement Okeke
Analyst
+1-312-606-2323
Fitch
Ratings, Inc.
70 W. Madison Street
Chicago IL, 60602
or
Secondary
Analyst
Donald MacMaster
Analyst
+1-212-908-0379
or
Committee
Chairperson
Eric Rothfeld
Managing Director
+1-212-908-0517
or
Media
Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Copyright Business Wire 2014

Fitch Rates 2014-K39 Multifamily Mtge PT Ctfs and Freddie Mac SPC, Series K-039

CHICAGO–(BUSINESS WIRE)–

Fitch Ratings rates FREMF 2014-K39 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-039 as follows:

FREMF 2014-K39 Multifamily Mortgage Pass-Through Certificates

–$156,270,000 class A-1 ‘AAAsf’; Outlook Stable;

–$977,510,000 class A-2 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X1 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X2-A ‘AAAsf’; Outlook Stable;

–$63,172,000 class B ‘Asf’; Outlook Stable;

–$33,249,000 class C ‘BBB+sf’; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-039

–$156,270,000 class A-1 ‘AAAsf’; Outlook Stable;

–$977,510,000 class A-2 ‘AAAsf’; Outlook Stable;

–$1,133,780,000* class X1 ‘AAAsf’; Outlook Stable.

*Notional amount and interest only.

Fitch did not rate the following classes of FREMF 2014-K39: the $196,167,775 interest-only class X3, the $196,167,775 interest only class X2-B, or the $99,746,775 class D. Fitch did not rate the $196,167,775 class X3 of the Structured Pass-Through Certificates, Series K-039.

The certificates represent the beneficial interests in a pool of 105 commercial mortgages secured by 107 properties. The Freddie Mac Structured Pass-Through Certificates, Series K-039 (Freddie Mac SPC K-039) represents a pass-through interest in the corresponding class of securities issued by FREMF 2014-K39. Each Freddie Mac SPC K-039 security has the same designation as its underlying FREMF 2014-K39 class. All loans were originated specifically for Freddie Mac by approved Seller Servicers. The certificates follow a sequential-pay structure.

Fitch reviewed a comprehensive sample of the transaction’s collateral, including site inspections on 63.7% of the properties by balance and cash flow analysis of 73.8% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.13x, a Fitch stressed loan-to value (LTV) of 104.6%, and a Fitch debt yield of 8.31%. Fitch’s aggregate net cash flow represents a variance of 7% to issuer cash flows.

KEY RATING DRIVERS

Low Fitch Leverage: This transaction has slightly lower leverage than other recent Fitch-rated, fixed-rate, 10-year Freddie Mac deals. The Fitch stressed LTV ratio is 104.6%, and is below the average of 2013 Fitch-rated, 10-year, K-Series Freddie Mac deals, which averaged 112.8%. The Fitch stressed DSCR, at 1.13x, is slightly above the average of 1.12x for the 2013 Fitch-rated, 10-year, K-series Freddie Mac deals.

Partial Interest and Interest Only Loans: Twenty-two loans representing 20.1% of the pool are full-term interest only, and 34 loans representing 39% of the pool have partial-term interest-only components. Based on the loans’ scheduled maturity balance, the pool is expected to amortize 12.79% during the term.

Credit Opinion Loan: The third largest loan in the pool (2.6%) has a Fitch credit opinion of ‘AAAsf’ on a stand-alone basis. The loan is secured by 250 Mercer Street, a 256-unit high rise co-op complex located in the Greenwich Village section of Manhattan within the New York metropolitan statistical area (MSA).

Loan Concentration: The top 10 loans constitute 31.8% of the pool, which is slightly lower than that of recent Freddie Mac transactions. The top loan in the pool, The Bays Apartment Homes, constitutes 9.5% of the pool. The second largest loan is 3.1% of the pool.

Property-Type Concentration: Of the pool, 100% is backed by multifamily properties. Three loans (5.6%) are classified as student housing and one loan (2.1%) is classified as independent living.

Strong Origination Practices: All loans were originated specifically for Freddie Mac by approved Seller Servicers and adhere to the originator best practices identified by Fitch. Freddie Mac multifamily loans had an average delinquency rate of 0.02% as of June 2014 compared with 5.65% on Fitch-rated CMBS multifamily loans as of the same period. Based on these program attributes, Fitch applies a programmatic credit to Freddie Mac transactions.

Asset Volatility: Three loans in the top 10 have asset volatility scores of 4 due to their locations in historically volatile regions as determined by Fitch. Overall, 13 loans in the pool have volatility scores of 4, representing 14.05% of the pool balance.

RATING SENSITIVITIES

Fitch performed two model-based break-even analyses to determine the level of cash flow and value deterioration the pool could withstand prior to $1 of loss being experienced by the ‘BBB+sf’ and ‘AAAsf’ rated classes. Fitch found that the FREMF 2014-K39 pool could withstand a 46.6% decline in value (based on appraised values at issuance) and an approximately 20.3% decrease to the most recent actual cash flow prior to experiencing $1 of loss to the ‘BBB+sf’ rated class. Additionally, Fitch found that the pool could withstand a 48.1% decline in value and an approximately 22.6% decrease in the most recent actual cash flow prior to experiencing $1 of loss to any ‘AAAsf’ rated class.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report.

The Master Servicer is KeyBank National Association, rated ‘CMS1′ by Fitch. The Special Servicer is Berkeley Point Capital LLC rated ‘CSS3+’, by Fitch.

The presale report is available at ‘www.fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions’, June 2014;

–’Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions’ September 2013;

–’U.S. Commercial Mortgage Servicer Rating Criteria’, February 2014;

–’U.S. Fixed-Rate Multiborrower CMBS Surveillance and ReREMIC Criteria’, December 2013;

–’Global Structured Finance Rating Criteria’, August 2014.

Applicable Criteria and Related Research:

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748778

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Rating Criteria for U.S. Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=876134

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Freddie Mac: 30-year mortgage rate jumps to 4.23% from 4.12% last week

Mortgage rates rose this week at the fastest pace of the year, with Freddie Mac’s survey showing lenders were offering 30-year fixed-rate loans at an average of 4.23%, up from 4.12% last week. 

It was the highest rate that the weekly survey has recorded since May 1, Freddie Mac reported.

The average for a 15-year fixed-rate loan rose to 3.37% from 3.26%, according to the survey, released Thursday. The start rate for mortgages that become adjustable after five years at a fixed rate rose to 3.06% from 2.99%. 

Glitches, complaints plague Ocwen, other mortgage servicers

Translated into the terms borrowers actually receive, the increase would mean a loan at 4.25% interest per year instead of 4.125%. The monthly payment on a 30-year, $350,000 fixed-rate loan would rise from $1,696 to $1,722.

Consumers thinking about whether to buy homes have been getting mixed signals from housing market indicators.

Sharp price increases of recent years have leveled off, with many sellers having to cut their asking prices in order to find buyers. Surveys show home builder confidence is at its highest level in nine years, but housing starts dropped more than forecast in August.

lRelated Housing price cuts point to a shift in Southland market
Real EstateHousing price cuts point to a shift in Southland marketSee all related

Freddie Mac’s weekly survey asks lenders about the terms they are offering on loans up to $417,000 to solid borrowers with 20% down payments or equivalent equity if they are refinancing.

The borrowers would have paid about half of 1% of the loan amount in upfront lender fees and discount points to obtain the rates. 

The increases were fueled in part by an uptick in the yield, or effective interest rate, that investors are demanding on 10-year Treasury notes, a benchmark for long-term home lenders, noted Frank Nothaft, Freddie Mac’s chief economist.  

Only 3 in 10 checking accounts are free, survey says

Only 3 in 10 checking accounts are free, survey says Walter Hamilton Its getting ever harder to find free checking at the nations banks, with barely three in 10 accounts coming with no monthly service fees, according to a new survey. Its getting ever harder to find free checking at the nations banks, with barely three in 10 accounts coming with no monthly service fees, according to a new survey. ( Walter Hamilton ) –>

The yield on the 10-year note, which dipped to near 2.3% at the end of August, has risen recently to about 2.6% — a level it last touched in early July.  

Investors are warily watching the Federal Reserve wind down a huge economic stimulus program it has pursued for six years. To keep long-term interest rates low, the Fed has bought trillions of dollars in Treasury securities and mortgage bonds issued by government-backed Freddie Mac, Fannie Mae and Ginnie Mae.

On Wednesday, the central bank announced that it would further reduce its purchases of these securities, keeping it on track to end the so-called quantitative easing program next month.

Bank and home lending trends @ScottReckard

Copyright © 2014, Los Angeles Times

Freddie Mac Will Not Issue a Reference Notes(R) Security in September

MCLEAN, VA–(Marketwired – Sep 18, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it will not issue a Reference Notes® security in September. The company’s 2014 Reference Notes calendar designates dates that it may use to announce the issuance of Reference Notes securities. 

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2014; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (‘Exchange Act”) since December 31, 2013, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog.

Existing home sales up for 4th straight month

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Home-Builder Optimism Highest Since 2005, Builders’ Group Says

WASHINGTON—Home-builder optimism surged in September to the highest level since late 2005, a sign home construction could pick up in coming months.

An index of builder confidence in the market for newly built, single-family homes rose four points to 59 in September from August, the National Association of Home Builders said Wednesday. A reading…

zipLogix and the Houston Association of REALTORS(R) Release zipFormMLS-Connect(R)

FRASER, Mich., Sept. 18, 2014 (GLOBE NEWSWIRE) — More than 27,000 Houston real estate professionals that currently subscribe to the Houston Association of REALTORS(R) MLS, will have the option to purchase zipFormMLS-Connect(R) today for $19.95 within zipForm(R) Plus. After purchasing, HAR MLS subscribers will have easy access to MLS information within zipForm(R) Plus simplifying the contract creation process.

“Empowering agents and brokers with tools that create contracts faster is what zipLogix does best,” stated Walt McDonald, Chairman of the Board for zipLogix. “Bringing zipForm MLS-Connect to Houston real estate professionals will save users time and is sure to become a staple during the transaction creation process.”

zipFormMLS-Connect(R) enables zipForm(R) users to import data directly from MLS listings into their transaction forms. This assists agents in maintaining information accuracy in their transactions. Users will also discover the transaction creation process is eased with the automated data entry for many of the most repetitive form fields.

“We are always looking for ways to enhance our members’ productivity and being able to import MLS data directly into zipForm will be a huge time-saver,” says Chaille Ralph, Chair of the Houston Association of REALTORS(R).

MLS service providers are encouraged to partner with zipLogix to provide their membership with access to their trusted data source directly within zipForm. This access greatly enhances the value of MLS membership. The streamlining of data flow and accessibility adds a very tangible value to members while maintaining the integrity of the information within an MLS database.

With extensive knowledge of the way real estate professionals do business, zipLogix continuously develops and enhances its suite of tools for the real estate industry. For more information on solutions for today’s real estate industry or to discuss association partnership opportunities, contact Wendy Waldrep at 888-318-2660 X130 or wwaldrep@ziplogix.com.

About zipLogix

The zipLogix family of tech-savvy products are the recognized industry standard for electronic real estate forms and transaction management systems. zipForm(R) is the Exclusive and Official forms software of the National Association of REALTORS(R). zipLogix also offers relay(R), the web-based transaction management system. zipLogix provides transaction solutions to real estate professionals that enhance the value of services they deliver to their clients while improving productivity and efficiency.

zipLogix, a subsidiary of Real Estate Business Services, Inc. (REBS), is a joint venture between REBS and the National Association of REALTORS(R). zipLogix is also a proud Partner in NAR’s REALTOR Benefits(R) Program.

About the Houston Association of REALTORS(R)

Founded in 1918, the Houston Association of REALTORS(R) is a 28,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS(R) in the United States.

Eased Buyback Rules May Boost Fannie-Freddie Risk, Auditor Says

Lenders could benefit at the
expense of Fannie Mae and Freddie Mac because the Federal
Housing Finance Agency
didn’t adequately assess the risk of new
rules for handling loan buybacks, an auditor’s report said.

FHFA failed to ensure the government-owned companies had
the right infrastructure in place before requiring them to
change the way they review mortgages for defects, according to a
report released today by the agency’s Office of Inspector
General. The regulator also may be relieving lenders of
liability for flawed loans too early, according to the report.

“The potential consequences of continued implementation of
the new framework are substantial,” the auditor said.

The critique takes aim at a central part of U.S. efforts to
ease tight credit conditions that are threatening the health of
the housing market.

Fannie Mae and Freddie Mac buy mortgages from banks and
package them into securities. When loans default, the companies
require lenders to buy them back if they find origination flaws
such as improperly computed borrower income or missing
documents.

FHFA last year tried to ease lenders’ fears that they’d be
stuck with losses on bad loans by announcing that Fannie Mae and
Freddie Mac would review files soon after origination instead of
waiting for defaults. In the hope of persuading banks to lend to
riskier borrowers, the agency also said lenders would be cleared
of liability on loans after borrowers pay steadily for three
years.

The regulator relaxed the rules even more this year,
agreeing to waive liability even if borrowers miss two payments
within the first 36 months after the companies buy a loan.

In a written response to the audit, FHFA officials said
they’d continue to review whether Fannie Mae and Freddie Mac
have adequate systems to monitor a sample of loans early after
they’ve been originated. They said they wouldn’t reconsider
whether relieving lenders of liability after three years exposes
the companies to too much risk.

To contact the reporter on this story:
Clea Benson in Washington at
cbenson20@bloomberg.net

To contact the editors responsible for this story:
Lawrence Roberts at
lroberts13@bloomberg.net
Gregory Mott