The Bloomberg report below is an interesting piece of information that has been flying under the radar on most MSM news outlets. Eventually, all of the securitizers of mortgage bonds will require some type of "liability verbiage" for the originating company. Freddie Mac is fighting this legislation from the state of New York, but look for more states to follow suit... Freddie to Stop Buying Subprime Loans in N.Y. State (Update2) By Dawn Kopecki (Bloomberg) -- Freddie Mac, the second-largest U.S. mortgage finance company, will stop buying subprime loans issued in New York state as a new law takes effect that holds investors accountable for mortgage fraud. Freddie won't buy loans dated on or after Sept. 1 that meet the state's subprime definition, the McLean, Virginia-based company said ...
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