Freddie Mac Getting Out of Interest-Only - TheStreet

Freddie Mac Getting Out of Interest-Only

Freddie Mac said Friday it plans to stop buying and securitizing interest-only mortgages in September.
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NEW YORK(

TheStreet

) --

Freddie Mac

(FRE)

said Friday it plans to stop buying and securitizing interest-only mortgages in September.

The McLean, Va.-based mortgage lender, which was brought into conservatorship along with

Fannie Mae

(FNM)

in September 2008, said this initiative will include its Freddie Mac "Initial Interest" fixed-rate and adjustable-rate mortgages.

The company also issued its January mortgage portfolio summary this morning, saying its single-family delinquency rate rose to 4.03% during the month, up 16 basis points from December's rate of 3.87%.

Shares of Freddie Mac closed Thursday at $1.19. The company reported its

fourth-quarter results

on Wednesday, posting a loss of $6.5 billion for the final three months of 2009. The stock was up a penny to $1.20 in early trades.

Later on the same day, Treasury Secretary Timothy Geithner told a Congressional committee that

government plans to reform

Fannie and Freddie will not be outlined until at least 2011, again extending the horizon for meaningful reform of the government-sponsored enterprises' business model.

--

Written by Michael Baron in New York

.