In its 2022 stress test, the Freddie Mac mortgage company found that an adverse scenario would affect its credit losses more than the test did in 2020. This news comes as the company prepares to go public again after being in government conservatorship for over 10 years.
In an adverse scenario, Freddie Mac would see an increase in credit losses of $19.3 billion, compared to the $11.1 billion it would lose in a stressed scenario. The company’s capital levels would also decline, but would still remain above the minimum levels required by regulators.
This news is likely to have an impact on the mortgage industry as a whole, as Freddie Mac is a major player in the market. It is important to monitor the situation and see how this affects the company’s ability to provide liquidity to the housing market.
You can read this full article at: https://www.housingwire.com/articles/freddie-mac-releases-2023-stress-test-results/(subscription required)
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