Executive Vice President & Head of the Single-Family Acquisitions Division, Federal Home Loan Mortg
Search every verified Sonu Mittal interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In a September 2024 podcast, Sonu Mittal, senior vice president and head of single-family acquisitions at Freddie Mac, discussed the company’s efforts to address housing affordability and reduce costs for lenders. Mittal stated that more than 50% of loans purchased by Freddie Mac were for first-time home buyers. He outlined three areas of focus: down payment assistance, technology investment, and consumer education. Mittal noted that Freddie Mac’s down payment assistance tool, DPA1, had been used by over 4,000 lenders, and that the company planned to expand its availability. He also said that special purpose credit programs launched in 2022 had helped nearly 10,000 borrowers, most of whom were families of color. Mittal highlighted Freddie Mac’s second lien product, which he described as a way for homeowners to extract equity without giving up low mortgage rates through cash-out refinancing. He said the cost to originate a mortgage had risen by over $3,000 per loan in three years, calling that trend unsustainable. Mittal reported a 50% reduction in non-acceptable quality rates and a 60% improvement in repurchase notices since late 2022, attributing the progress to industry collaboration and a repurchase alternative pilot. He encouraged lenders to use Freddie Mac’s tools, such as the loan product advisor, to improve efficiency and margins.
“When we look at all the loans we purchase at Freddie Mac, more than 50% of the borrowers were first-time home buyers. We continue to make great progress on our equity plans serving underserved communities and helping qualified borrowers who have thin credit files.”
“There are three things Freddie Mac is focusing on to assist with affordability: down payment assistance, investing in technology, and educating consumers.”
“We rolled out the DPA1 down payment assistance tool last fall, which helps lenders and loan officers match borrowers with local down payment assistance programs. Over 4,000 lenders have already taken advantage of this tool, and we plan to make it available in most of the country by the end of this year.”
“We continue to make progress on special purpose credit programs launched in fall 2022, having purchased nearly 10,000 loans under this program, most of which help families of color.”
“We are enhancing our loan product advisor to help lenders qualify more borrowers, including those with thin credit files, by leveraging bank data, pay stubs, cash flow, on-time rent payments, and soon trended credit data.”
“Our Home Possible product allows someone to become a homeowner by putting 3% down. Last year, we bought 96,000 Home Possible mortgages, with 75% assisting low- to very low-income borrowers.”
“We launched a second lien product to help homeowners extract equity responsibly without giving up their low mortgage rates, providing an alternative to cash-out refinancing, which often means losing sub-4% rates on the entire balance.”
“The cost to originate a mortgage has increased by over $3,000 per loan in the last three years, which is not sustainable. Leveraging Freddie Mac's tools like loan product advisor, appraisal waiver, and condo project advisor can reduce costs by 14% and shorten cycle times by over five days.”
“We have seen a 50%+ reduction in non-acceptable quality rates and a 60%+ improvement in repurchase notices since the peak in Q3 2022, thanks to industry collaboration and our repurchase alternative pilot involving 14 sellers.”
“We take lender feedback seriously and adjust our roadmap accordingly. We encourage lenders to fully utilize our tools to unlock efficiencies and improve margins, aiming to be their partner of choice beyond just providing liquidity and stability.”
On today's episode, Editor in Chief Sarah Wheeler talks with Sonu Mittal, senior vice president and head of single-family ...
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