Fannie Mae, Freddie Mac Sued by California Attorney General
Fannie Mae (FNMA) and Freddie Mac were accused in a lawsuit by California Attorney General Kamala Harris of hindering her probe into mortgage lending and foreclosure practices.
Harris wants to know if drug dealing and prostitution occur in foreclosed homes owned by the companies, whether taxes are being paid on those houses, and whether military families have been illegally evicted by loan servicers, according to the two lawsuits filed yesterday in state court in San Francisco.
Fannie Mae, the government-sponsored enterprise which issues almost half of all mortgage-backed securities, and Freddie Mac, the McLean, Virginia-based mortgage-finance company, haven’t responded to those and other questions Harris sent Nov. 15, according to the complaints.
Fannie Mae and Freddie Mac (FMCC) are “frustrating the Attorney General’s efforts to investigate and combat crime, blight and other threats to the health and safety of Californians,” according to the complaints.