A new service from Freddie Mac could help Citicorp Mortgage and Homeside Lending boost volume while making it easier for other lenders to sell loans.
Freddie Mac will add to its electronic network the services of Citicorp, to buy adjustable-rate mortgages, and Homeside, to purchase FHA and VA loans. Lenders already use the network to sell conventional loans to the agency.
The move follows Freddie Mac's addition of the lender Residential Funding Corp. to the network last year to buy jumbo and subprime loans the agency is not allowed to buy.
The latest additions "give lenders all the market alternatives they need to make the most of their loan and servicing sales," said James Cotton, Freddie Mac vice president.