Freddie Won't Take Indiana 'High Cost' Loans

Freddie Mac has issued an industry lender in response to recently enacted predatory lending rules in the state of Indiana.The revised standards for the purchase of loans in the state apply to mortgages with note dates on or after January 1, 2005, that are secured by properties in Indiana. In the industry letter, the agency said mortgages secured by high cost home loans as defined by the Indiana Act are not eligible for delivery to Freddie Mac. The seller must represent and warrant that it will not sell to Freddie Mac high cost home loans or any other ineligible mortgages.