Posted by Brian R Barnes

WASHINGTON (Reuters) — Mortgage finance company Freddie Mac will no longer buy subprime mortgages that have a "high likelihood" of payment shock and foreclosure, the company announced Tuesday.

Freddie Mac has a public mission to promote home ownership and "some of these products" that fueled a five-year housing boom "don’t work going forward", Richard Syron, Freddie Mac’s CEO, said in an appearance on CNBC television.
  
Freddie Mac will invest only in mortgages that assume a borrower can make the highest possible mortgage payments and will introduce new products to help troubled mortgage borrowers, Syron said.

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