Tuesday, August 12, 2008

Freddie Mac to Stop Buying NY Subprime Mortgages

New York State has created a new law aimed at mortgage brokers and their making of subprime mortgages, which will put more burdens on brokers and purchasers of subprime mortgages, such as Freddie Mac.

The result: Freddie Mac said it will not purchase subprime mortgages secured by properties in New York state with note dates on or after Sept. 1.

The new law requires brokers and assignees to monitor 20 separate items with regard to subprime mortgages, according to Freddie Mac spokesman Brad German. Freddie as smiply a purchaser of a mortgage has no data on most of the items that must be monitored and the law simply exposes Freddie to more legal exposure without the ability to monitor the situation. German stressed that the number of mortgages impacted at this time will be minor, but that going forward the potential exists for the law to impact all mortgages in New York state that will be eligible for rescue packages.

1 comment:

  1. This is the result of a well planned mass transfer of wealth. We can thank Mr. Greenspan and his fellow travelers for "crafing" those special financial packages that "gave" everyone a house that wanted one. Nice going Al. With no restraints or checks on the quality on loans, the banksters made it coming and going. Especially since Joe Taxpayer is getting the bill. And now you can sell the country off to the highest foreign bidder. Thanx a bunch. You just bankrupted the country.