Freddie Mac CEO says 3%-down mortgages see ‘good start’
WASHINGTON (8/5/15)--Freddie Mac CEO Donald Layton reported this week that the organization’s low down payment mortgage was off to a “good start.”
Freddie, along with Fannie Mae, announced a 3% down payment mortgage for some homebuyers last December.
“It had a good start from a zero base,” Layton said Tuesday during a call discussing Freddie’s second-quarter numbers. “The numbers are moving up nicely, but way below any level of materiality.”
Freddie reported a $4.2 billion net income and $3.9 billion in comprehensive income in the second quarter of 2015.
Mortgages requiring only 3% down at Freddie Mac are called Home Possible Advantage, available as 15-, 20- or 30-year fixed-rate mortgages.
Fannie Mae’s standard mortgage and its My Community Mortgage product can be purchased with a 3% down payment if at least one co-borrower is a first-time buyer.
The Federal Housing Finance Administration announced in December that it would monitor the ongoing performance of these loans.