Recent data from Freddie Mac has provided new insights into loan losses across different mortgage types, Fitch Ratings said in a press release Thursday.
The new data, which was released by Freddie Mac on Nov. 24, show patterns in loss severities or loss as a percentage of a loan’s total balance.
Severities on liquidated Freddie Mac mortgages were between 5% and 10% higher than on prime jumbo loans, Fitch said.
Fitch also found that severities on the liquidated Freddie Mac loans were between 15% and 20% lower than on Alt-A loans.
The New York-based rating agency said that the differences were mostly driven by factors such as property values and mortgage insurance.
Additionally, Fitch praised Freddie Mac for releasing the loan-level loss data, saying that it “increased transparency to the market in anticipation of an actual loss credit offering in 2015.”