A federal watchdog found no evidence that Freddie Mac discouraged homeowners from refinancing their mortgages to profit from an exotic form of interest rate hedging.
The inspector general for the Federal Housing Finance Agency released a report Wednesday largely in response to a January investigation by ProPublica and National Public Radio that alleged Freddie had placed "multi-billion dollar bets that pay off if homeowners stay trapped in expensive mortgages."
The ProPublica story, under the headline "
Yet the
Freddie has an "information wall" and the report found "no evidence of collusion" between the capital markets division and its single-family credit guarantee business "that would discourage borrowers from refinancing at lower rates or obstruct a homeowner from seeking more favorable mortgage terms."
ProPublica