FHFA Requests Public Input on Freddie Mac Second Mortgage Proposal

The Federal Housing Finance Agency on Tuesday proposed a new product from Freddie Mac to begin purchasing certain single-family closed-end second mortgages.

Freddie Mac proposes to purchase closed-end second mortgages on properties for which it already holds the first mortgage. FHFA said it has determined this to be a new product that merits public notice and comment about whether it is in the public interest.

“The proposed activity is intended to provide homeowners with a cost-effective alternative for accessing the equity in their homes,” FHFA Director Sandra Thompson said. “Reviewing and considering comments from the public will be a critical component of our review as the agency exercises its statutory responsibility to evaluate new Enterprise products.”

There will be a 30-day comment period once the Federal Register publishes the notice. After that 30-day period has ended, FHFA has 30 days to make a final decision as to whether to approve the proposed new product.

FHFA invited interested parties to provide written feedback on the proposed new product. Comments may be submitted via FHFA’s website or by email to RegComments@fhfa.gov.