While subprime loans have been grabbing the headlines, Freddie Mac executives are disclosing information about another type of loan that could open the government-backed institution to more risk. Freddie Mac is prohibited by federal law from purchasing mortgages that involve more than 80% of a house's value. For the past several years, however, the firm has allowed borrowers to get a second loan, or "piggyback" loan, to cover the remaining 20%. The scheme could leave Freddie Mac exposed to larger losses.
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