Freddie warns of challenges in asset/liability management

Northwestern Financial Review, Jun 15-Jun 30, 2003

Community bankers need to prepare now for the post refinance boom in the mortgage market, Freddie Mac said. The company urged bankers to begin the process of analyzing and restructuring their mortgage portfolios for higher interest rates. Many recently booked community bank mortgages are "low-rate, high-quality loans that may not be paid off or refinanced for quite some time," said Freddie Mac Senior Vice President Dave Stevens.

"That means banks will have to effectively manage and finance longer duration assets, a task that is not easily done solely with short-duration bank deposits."