Freddie Mac Tightens Mortgage Purchases

Mortgage giant Freddie Mac said Tuesday it will no longer buy those high-risk home mortgages that it deems to be the most vulnerable to foreclosure. The surprise move came amid a deteriorating market for subprime loans affected by slumping home prices and rising interest rates
The government-sponsored company, which is the second-biggest financer of home loans in the United States, said it will begin using stricter standards for mortgages that it buys -- including limiting the use of loans requiring less documentation of the borrower's status than conventional mortgages. The goal is "to help ensure that future borrowers have the income necessary to afford their homes," McLean, Va.-based Freddie Mac said.
"The steps we are taking today will provide more protection to consumers and enhance the level of underwriting standards in the market," Richard Syron, the company's chairman and CEO, said in a statement.

Grand jury indicts eight on $14 million mortgage fraud scheme

A federal grand jury has returned an indictment charging eight defendants with various charges related to a mortgage fraud scheme they operated in the Dallas area. Seven of the defendants were arrested at various locations throughout the metroplex and in Hawaii. One defendant has surrendered to authorities. The 17-count indictment, returned this week in Dallas, charges each of the defendants with conspiracy. Defendants Donald L. Jones, a/k/a “Don Jones,"61, of Grapevine, and Joseph B. Jackson, Sr., a/k/a “Joseph Jackson," 63, of Irving, are also each charged with ten counts of wire fraud and six counts of bank fraud. Donald L. Jones and Joseph Jackson represented themselves as real estate investors who owned and operated Affordable Homebuilders and the YIN Group in Irving.
Donald Matthew Jones, a/k/a “Mat Jones," 35, of Maui, Hawaii, is also charged with three counts of wire fraud.

Managing money after home is bought

The potential pitfalls of home buying don't disappear when the purchase offer has been accepted and the loan has been lined up.
As you may have guessed, most of them have to do with managing money. A few pointers:
Don't buy any high-priced items on credit before closing the home purchase, or you might not qualify for your mortgage anymore. Lenders will look at that new debt - a car loan, for example, or lots of furniture charged to a credit card - and judge that you are less able to take on mortgage debt. And don't spend a large chunk of cash, either, if you might need it for closing costs.
Expect to get a "supplemental" property tax bill from the county tax collector soon after you've purchased your home. This bill is for the difference between the amount of tax the former owner paid and the amount you will be paying, prorated according to when you bought the house.