Tuesday, October 13, 2009

Freddie Mac to help banks get credit

Freddie Mac is starting a pilot program to help lenders get access to warehouse lines of credit to fund loans those lenders eventually sell to Freddie Mac and Fannie Mae.

Freddie Mac says it is currently working with Natty Mac, a Guggenheim Partners company, in the pilot program it says.

“The warehouse lending industry has nearly exited the market making it increasingly difficult for lenders to fund loans,” Freddie Mac’s new chief executive Charles Haldeman said in a statement. He calls it much needed additional liquidity for residential financing.

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