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GSEs Exit Subprime Lending in New York

August 27, 2008

Fannie Mae and Freddie Mac plan to exit from subprime lending in New York, according to published reports.

The GSEs have Sept. 1 as the departure date from subprime loan purchases, the reports said.

Fannie Mae's and Freddie Mac's exit is a result of a new state law that could make all those involved in lending seen as predatory legally liable, including those buying such loans on the secondary market.

As a result of the agencies' exit, banks lending in New York will have to change their mortgage origination systems, the reports said.

For more information on related topics, visit the following:

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