Mortgage finance giant Freddie Mac said Tuesday it will no longer buy high-risk home mortgages that it deems highly vulnerable to foreclosure. The government-sponsored company said it will limit loans requiring less documentation of the borrowers status than conventional mortgages. The company said changes will take effect Sept. 1, to avoid disrupting the mortgage market.
Freddie Mac plans to toughen its standards and stop buying certain kinds of risky mortgages that have been linked to a high number of defaults. This is the latest indication of rising concern about problems in the subprime mortgage market, which caters to borrowers who are unable to qualify to buy houses with conventional loans.
NEW YORK----Chase Mortgage Finance Trust, series 2007-S2 is rated by Fitch as follows: $585,665,810 classes 1-A1 through 1-A9, 1-AX, 2-A1 through 2-A3, 2-AX, A-P, and A-R 'AAA'; $9,151,000 class A-M, 'AA+'; $7,930,900 class M-1, 'AA'; $3,050,300 class B-1, 'A'; $1,525,200 class B-2, 'BBB'; $1,220,100 privately offered B-3, 'BB'; $610,100 privately offered B-4, 'B'.
HORTONVILLE Kevin and Sarah Werner have opened Current Mortgage Solutions LLC in Hortonville.
Low mortgage interest rates keep buyers in the market despite the extreme winter weather in January, a typically slow month for the housing market in Illinois. According to the Illinois Association of REALTORS latest report, total home sales were off 6.8 percent in January 2007 to 8,584 homes sold compared to 9,206 homes sold in January 2006.
Feb. 27 (Bloomberg) -- Freddie Mac, the second-largest provider of funds for U.S. home loans, will stop buying subprime mortgages and securities that have a ``high likelihood'' of borrowers not meeting rising monthly payments.
With interest rates on the rise and the real estate market in a slump, adjustable mortgage rates are skyrocketing.
Feb. 28 (Bloomberg) -- HBOS Plc, Britain's biggest mortgage lender, posted a 26 percent gain in second-half profit and said lending margins may decline in 2007. The shares fell the most in more than three years.