Freddie Mac has appointed JP Morgan Worldwide Securities Services to provide transaction processing and record keeping services for its approximately $700 billion portfolio of mortgage-backed securities and short-term assets.
Freddie Mac says its decision to outsource these processing and record keeping functions is part of its efforts to upgrade its technological capabilities and streamline its operating infrastructure. Linking JP Morgan’s technology to Freddie Mac’s trading platform and developing accounting infrastructure will help the company reconcile transactions and close its books more efficiently.
“Freddie Mac is committed to achieving a higher level of organizational strength and focus across all of our operations,” says Joseph Rossi, senior vice president for Freddie Mac. “By working with a world-class provider like JPMorgan, we are simplifying our operating environment, saving time and money and more efficiently managing our investment assets at the Federal Reserve Bank and the Depository Trust Company. JPMorgan’s state-of-the-art systems, scalable infrastructure and technology management experience with governments, central banks, make them a terrific choice for Freddie Mac.”
JP Morgan Worldwide Securities Services will provide administrative and settlement services for Freddie Mac’s estimated $700 billion retained portfolio of longer-term assets (primarily Freddie Mac-issued mortgage-backed securities) and an estimated $70 billion liquidity and contingency portfolio of short-term assets with a variety of issuers that support mortgage investment and debt-funding activities.
“JPMorgan is delighted that Freddie Mac selected us for this mandate, which will represent the industry’s largest ever,” says Michael Clark, head of JPMorgan Worldwide Securities Services. “We are pleased that Freddie Mac recognizes our leadership position in management technology and this further strengthens the deep relationship between our two firms. The size, scale, strength and breadth of JPMorgan’s people, products and services means that we can meet Freddie Mac’s needs today and well into the future.”