On October 28,
Freddie Mac announced the nationwide expansion of its performing loan repurchase alternative pilot program, which will begin in the first quarter of 2025. The pilot offers a fee-based structure as an alternative to the traditional loan repurchase remedy for loans found with significant defects identified during quality control reviews. The new structure would enhance efficiency, transparency and incentivize high-quality loan origination. Lenders with a non-acceptable quality (NAQ) rate above 2 percent will be charged a fee based on the unpaid principal balance of loans delivered, while small lenders with statistically insignificant NAQ rates will have fees waived.
Additionally, Freddie Mac introduced a new fee-only option for lenders opting to stay on the traditional repurchase remedy. It also committed to greater transparency by publishing quarterly repurchase data reports starting next year.
