American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

Freddie Mac exec: ARMs, interest-only loans safe

September 20, 2005

COO downplays mortgage giant's exposure

Inman News

Freddie Mac's chief operating officer on Monday said some new loans such as adjustable-rate mortgages that have prompted concern about a housing bubble appear safer than more traditional mortgage loans, Reuters reported.

Eugene McQuade, speaking at a Bank of America conference in San Francisco, said government-sponsored enterprise Freddie Mac is not too heavily exposed to adjustable-rate mortgages, or ARMs, which can offer borrowers lower rates early, but higher rates later, reports said.

He also downplayed potential concern about loans where borrowers pay only the interest due, known as interest-only loans, or less than the interest due, known as "negative amortization" loans because principal amounts due increase, reports said.

"On the (interest-only) and the (negative amortization), on the stuff that we have seen come through us, the credit quality is actually higher than on the 15- and 30-year fixed," said the COO of the No. 2 U.S. mortgage financier.

As of the end of June, 59 percent of McLean, Va.-based Freddie Mac's $1.3 trillion loan portfolio was in 30-year fixed-rate mortgages and 27 percent was in 15-year fixed-rate mortgages. One percent was in interest-only loans and another 10 percent was in various adjustable-rate mortgages.

Newer-style loans have allowed thousands of home buyers to cut initial monthly payments, letting them buy more expensive homes and, some say, drive up prices.

Separately, McQuade said Freddie Mac will see "some impact" to third-quarter results from Hurricane Katrina, but the company is "very well positioned" to handle it, Reuters reported. He said less than one quarter of one percent of Freddie Mac's guaranteed mortgages are in the three hardest-hit parishes in the New Orleans area, reports said.

Copyright 2005 Inman News

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment