home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.


Freddie to Stop Buying Some N.Y. Mortgages

Impacts loans defined as subprime under new law

August 12, 2008

By MortgageDaily.com staff


A new mortgage law in New York has prompted Freddie Mac to quit buying some loans in that state.

In a bulletin to sellers and servicers today, the secondary lender said that it will not purchase New York mortgages that are considered subprime under new legislation enacted earlier this month.

New York's Governor David A Paterson signed S.8143-A/A.10817-A on Aug. 2. In addition to requiring a 90-day notice before foreclosure proceedings may be initiated, the new law establishes a mandatory settlement conference for foreclosure proceedings involving some subprime borrowers.

The legislation also mandates a suitability standard requiring verification of income to determine the ability to repay the fully indexed loan, a state assembly statement said.

"The bill establishes an ability to pay standard requiring lenders to make a reasonable and good faith determination of the borrower's ability to repay the loan, including the principal, interest, taxes, insurance, assessments, points and fees," Paterson said in an announcement last week. "The duty of care feature of the bill requires brokers to act in the borrower's interest by presenting loans most appropriate for the borrower."

New York's State Banking Superintendent Richard Neiman called the new law "one of the strongest in the nation."

In today's bulletin, Freddie said it will not purchases New York mortgages that fall within the law's definition of "subprime home loans" on or after Sept. 1.

First mortgage loans are considered subprime if they exceed the average commitment rate by 1.75 percent, the assembly's announcement said. Subordinate liens are considered subprime if they exceed the average commitment rate by 3.75 percent.

Other subprime provisions of the bill include the prohibition of negative amortization, loan flipping and prepayment penalties; the mandatory escrowing of taxes and insurance; and the provisioning for assignee liability as a defense in foreclosure proceedings.

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.



Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.


Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.




SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders