Freddie Mac, McLean, Va., hired JPMorgan Worldwide Securities Services to provide transaction processing and record-keeping services for the company's $770 billion portfolio of mortgage-backed securities and short-term assets, Freddie Mac spokesman Michael Cosgrove confirmed. The deal is believed to involve one of the largest portfolios ever, JPMorgan spokeswoman Pam Snook said. It also marks the first time Freddie Mac has outsourced this function, Mr. Cosgrove said.
JPMorgan will provide administrative and settlement services for about $700 billion in mortgage-backed securities issued by Freddie Mac and for a $70 billion liquidity and contingency portfolio of short-term assets, including asset-backed securities, cash and other forms of corporate debt.
The hiring is part of Freddie Mac's companywide effort to improve efficiencies, Mr. Cosgrove said.
