Dealer repurchase of Freddie Mac Home loans rose to $430 million in the second quarter of 2024, a 29.1% increase from the first quarter, according to an analysis of public filings. Inside Mortgage Finance.
In contrast, sellers of government-sponsored enterprise (GSE) loans Fannie Mae repurchased $268.5 million in non-performing loans during the same period, a 27.7% decrease from Q1 2024. Overall, purchases decreased 0.8%.
Some lenders feel attacked by Freddie’s approach. In late June, a senior mortgage executive told HousingWire that the GSE repurchase problem “has grown 10x. Our Freddie Mac requests are up 100% month over month. I talked to my peers and they all have the same problem with Freddie Mac. I don’t know how a young journalist survives.”
The same source said on Monday that his mortgage company was hit by a third quarter “with a lot of foreclosures and a few repurchases, although most of us came from Q1-Q2.”
Two mortgage executives told HousingWire that the most common reason for a repurchase request was related to income verification.
Freddie Mac did not immediately respond to a request for comment Monday. But a spokesperson told HousingWire in June that the agency “heard feedback from the industry and took it seriously, improved our communications, improved collaboration and provided some feedback to our lenders.” We have also developed our own processes.
“Even this year, we are continuing to address this issue by introducing a cash-based screening program. We see the results of these efforts in fewer repeat purchases and greater efficiency for both retailers and Freddie Mac. “
Freddie launched that pilot program late last year. It is actually one of the single loan repurchase solutions, and it deals with all unpaid balances of the loan vintage during the quality control process. Lenders with an unacceptable quality rate of more than 2% are charged a fee, while those below that rate are waived.
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