Real Estate Marketing & Beyond
California attorney general wants answers from Fannie and Freddie
Mortgage giants Fannie Mae and Freddie Mac have received an unwelcome Christmas present from California’s attorney general Kamala Harris – a lawsuit filing. The attorney general is demanding Fannie and Freddie respond to a total of fifty-one questions regarding foreclosures and other practices they have made in the state.
According to a report from the Associated Press, Fannie and Freddie currently own around 60% of mortgages in California. The lawsuit stems from an investigation by Harris into the two government lender’s involvement in around 12,000 foreclosures in which they served as landlords for the properties. Harris is also investigating the two GSE’s role in the sale and marketing of mortgage backed securities in the state.
Harris is demanding that Fannie and Freddie provide the state with a wide variety of information about their practices in the state, including a list of all the homes they foreclosed on. She also wants to know if the GSE’s complied with laws that are designed to protect members of the military and minorities against foreclosures and unlawful convictions, and whether or not the GSE’s complied with state tax and securities laws.
Fannie and Freddie are yet to pass comment on the lawsuit filed against them, said the Associated Press. However, an attorney representing Fannie Mae did comment that the fifty-one subpoenas in the lawsuit were somewhat “vague and ambiguous” in places. The attorney also claimed that attorney general Harris doesn’t have the authority to file a lawsuit against the GSE’s, as they fall under federal government control.
Image courtesy: The Aspen Institute via Flickr.com
