Freddie Mac Begins Creating Bonds Backed by Modified Mortgages

Freddie Mac, the government-controlled mortgage financier, said that it’s begun packaging modified home loans into bonds that it guarantees, with $1 billion of securitizations already completed.

The “vast majority” of the mortgages reworked to help homeowners had previously been contained in its bonds and were bought out after delinquencies, the McLean, Virginia-based company said today in an e-mailed statement. Since November 2011, the firm has been repackaging into bonds those loans that were once delinquent and began performing again without modifications, it said.