UPDATE 1-Freddie Mac hires GMAC’s Renzi to stanch losses

(Changes headline, adds background, comment)

NEW YORK, April 15 (BestGrowthStock) – Freddie Mac (FRE.N: ), the
second-largest provider of funding for U.S. residential
mortgages, on Thursday said it hired industry veteran Anthony
Renzi for a new position aimed at cutting losses on the $1.8
trillion in loans it guarantees.

Renzi, the former chief operating officer of GMAC
Residential Capital and president of GMAC Mortgage, was named
executive vice president of single-family portfolio
management.

His new role was created to smooth communication between
groups that touch Freddie Mac’s loss mitigation or foreclosure
prevention efforts. Multiple points of contact for servicers
and others that deal with Freddie Mac have sometimes slowed
progress, said Freddie Mac’s chief operating officer, Bruce
Witherell.

Freddie Mac and Fannie Mae, the biggest U.S. home funding
company, own or guarantee about half of all outstanding U.S.
mortgage debt and are conduits for President Barack Obama’s $75
billion foreclosure prevention program. Mortgage servicing
companies this week reported 1.1 million modifications of
troubled loans under the federal program as of March, including
about 230,000 that are permanent.

Freddie Mac and Fannie Mae have been operating under
government control since September 2008, and have required
about $126 billion in U.S. funds to stay afloat.

Witherell termed the changes a “reorganization” of an
organizational structure put in place when default management
was a much smaller part of Freddie Mac’s business.

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(Reporting by Al Yoon; Editing by Leslie Adler)

UPDATE 1-Freddie Mac hires GMAC’s Renzi to stanch losses