Freddie Mac will cease purchasing and securitizing interest-only mortgages, including the Freddie Mac Initial Interest fixed-rate and adjustable-rate mortgages.
The government-sponsored enterprise states that this policy will go into effect on or around Sept. 1. Freddie Mac gave no official reason for the change in policy, and a press statement said that additional information will be provided in an upcoming edition of its Single-Family Seller/Servicer Guide bulletin.
SOURCE: Freddie Mac