Investors Grumble as Freddie Shifts Risk of Helping Homeowners

Some mortgage-bond investors are criticizing a change in Freddie Mac debt that increases the risk of loss from homeowners who can’t afford their loans.

The government-controlled company’s latest version of securities that put bondholders on the hook when borrowers miss mortgage payments can now generate losses if the loans are modified, such as by having their interest rates reduced to help the homeowners, according to a document posted on its website.