Freddie Mac Rejects New York Governor's Subprime Fight

09/13/2008 05:12 am ET | Updated May 25, 2011
  • John Carney Dealbreaker

Freddie Mac dealt a blow to New York governor David Patterson's plans to ease mortgage stress in the state. Last week Patterson went to Queens, one of the areas in New York hardest hit by foreclosures, and signed legislation creating a category of subprime mortgages that enjoy certain protections from foreclosures and in some cases imposing criminal penalties on fraudulent mortgage lenders. This morning Freddie Mac announced that it simply won't purchase these loans.