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Freddie Mac to Seek Securities Sales Linked to Riskier Mortgages

Freddie Mac, which has sold $3.1 billion of securities sharing the risk it bears from homeowner defaults, will seek to sell debt tied to potentially riskier mortgages, according to a company executive.

The government-controlled company’s four offerings of risk-sharing notes have all been linked to homeowners who took out mortgages equal to between 60 percent and 80 percent of their property values. The McLean, Virginia-based company is now exploring similar deals that would include debt with higher loan-to-value ratios of as much as 90 percent, said Mike Reynolds, a director of portfolio management.