Freddie Mac CEO Discusses Subprime Market Disruption

Freddie Mac Chairman and CEO Richard F. Syron appeared on FOX News to discuss the disruption in the subprime market and what can be done to contain the crisis and maintain liquidity and stability in the broader mortgage market.

Syron addressed Freddie Mac's response to the subprime issue. Early this year, Freddie Mac announced that it was toughening underwriting standards for the subprime loans the company invested in and that it was developing more consumer-friendly mortgage products to help lenders better serve borrowers with impaired credit. The goal is to protect future borrowers from the payment shock that could occur when their adjustable rate mortgages increase.