Freddie Mac Warns Of New Interest-Rate Risks

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Credit unions and other community-based mortgage lenders hold roughly $300 billion in loans that could be at risk if interest rates tick up by as little as 25 to 50 basis points, Freddie Mac warned Last week. David Stevens, senior vice president for the secondary mortgage market giant, said at a news conference about 2,400 credit unions, banks, and S&Ls are not properly managing their mortgage assets and liabilities and are holding these loans on their books.

Freddie Mac is trying to make community lenders aware of the interest-rate risk inherent in holding the loans because the two-year old refinancing boom could "come to a quick end," Stevens said. Freddie's 2,500 community lenders are an increasingly important part of Freddie Mac's roster of seller/servicers, he added.

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