Freddie Mac Products Get New Life

The list of internet-based products will be expanded by Freddie Mac, the US’s second largest funding company, over the summer months according to a statement released on Monday afternoon. The automated underwriting service, Loan Prospector, and its online selling system will include new options. The face lift will include 40 year mortgages, 20 new adjustable rate mortgages and rural housing products.

Freddie Mac’s Home Possible line of products, a flagship suite of affordable mortgages, will also be updated with a 40 year fixed rate option. The new direction is in response to providing lenders with more competitive selling options as well as to expand affordable homeownership opportunities. The Home Possible line can allow a qualified borrower to purchase a primary home with as little as $500 down or toward closing costs. For areas where rising insurance deductibles is a problem, Freddie Mac plans to revise its requirements for property insurance to facilitate those purchases, most notably in coastal areas likely to experience wind damage or hurricanes.