Freddie Mac announced Thursday, February 25 that on or about September 1, 2010, the company will cease purchasing and securitizing "interest only" mortgages--including Freddie Mac Initial Interest fixed-rate and adjustable-rate mortgages.

Interest only mortgages, including Freddie Mac initial interest mortgages, provide for interest-only payments for a specified period of time beginning with the first monthly payment after the note date, and principal and interest payments on a fully amortizing basis for the remainder of the mortgage term.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets.  Freddie Mac supports communities across the nation by providing mortgage capital to lenders. over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.