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To: Giordano Bruno who wrote (341150)	8/15/2007 9:35:29 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 436258

They're "adding value". What could be better? Buying FRE or FNM is like banging a scabbed up hooker w/o a condom. Freddie Mac loosens up To soothe market turmoil, Alt-A loans that typically fell short of Freddie's stricter requirements will be a bigger part of the company's activity. August 15 2007: 2:08 PM EDT NEW YORK (Reuters) -- Freddie Mac said on Wednesday it will back more Alt-A loans after lenders urged the home loan finance company to jumpstart part of the mortgage market frozen by Wall Street and skittish investors. The Alt-A market includes loans that typically fell short of the stricter requirements of Freddie Mac, but will now be a more prominent part of the company's activity in an effort to soothe market turmoil, said Charles Coulter, a vice president in Freddie Mac's single-family mortgage operations. Freddie Mac (up $1.74 to $61.15, Charts, Fortune 500) late on Tuesday announced it would provide 90-day forward commitments to lenders with terms that accommodate most Alt-A loans. Alt-A loans have credit scores above subprime, but include characteristics that have become common among loans gone bad - such as no proof of income or loans to borrowers with no stake in the property. The market for Alt-A loans has dried up in recent days as investors increasingly balk at any security that is not guaranteed by Freddie Mac, Fannie Mae or Ginnie Mae. Mortgage borrowers look for stability "We felt it was important for us to make a statement saying we are active in this marketplace," Coulter said. It is also "a good opportunity" to "add value" to lenders' loans.