The quality of loans backed by mortgage financier Freddie Mac began to show signs of improvement during the first quarter of 2008, according to an executive with the company, Reuters reported today.
While speaking at the Mortgage Banker Association’s National Secondary Market Conference & Expo 2008 in Boston, Vice President of family credit management at Freddie Mac Connie Ferran said the company was getting loan quality back to were it ought to be.
It’s unclear what that means specifically, but we’ll find out more when the company reports first quarter earnings on May 14.
Freddie Mac is expected to report a $920.6 million first-quarter loss, or $1.22 per share, according to Reuters Estimates.
In related news, Freddie Mac said in a bulletin Friday that effective immediately it would no longer require lenders to reduce the loan-to-value on properties in declining markets below 95 percent.
However, to be eligible the transaction must be a purchase or rate and term refinance, secured by a one-unit primary residence that receives an Accept Risk Class from Loan Prospector.
Fannie is set to announce first quarter earnings tomorrow, with analysts expecting a $2.02 billion loss, or $1.48 per share.
Interestingly, Reuters noted that the effects of the mortgage crisis were evident in the 53 percent drop in attendance from last year’s MBA Secondary Markets conference.
Shares of Fannie Mae fell $1.21, or 4.10%, to $28.29, while Freddie Mac shares slipped $1.57, or 5.80%, to $25.52.