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.
