Civil Rights Coalition Applauds Freddie Mac’s Decision to Stop Underwriting Risky Subprime Loans (Leadership Conference on Civil Rights)Tuesday, February 27th, 2007
WASHINGTON–(BUSINESS WIRE)–“Freddie Mac’s decision to stop underwriting high-risk subprime loans, while at the same time investing in safer fixed-rate and hybrid ARM products is a win-win situation for low income borrowers. We genuinely hope Fannie Mae and other players in the mortgage market follow Freddie Mac’s lead and adopt similar practices that are aimed at producing more responsible, repayable home loans.
It takes backbone to make a move like this and Freddie Mac should be commended for its leadership on the issue. By cutting off financial backing for dicey, low interest ‘teaser’ loans that balloon astronomically, Freddie Mac will prevent families, a disproportionate number of whom are minorities, from losing their homes.”
The Leadership Conference on Civil Rights (LCCR) is the nation’s oldest, largest, and most diverse civil and human rights coalition. For more information on LCCR and its more than 200 member organizations, visit www.civilrights.org.