Harris Wants Fannie Mae, Freddie Mac to ‘Pause’ Foreclosures
The two companies own more than 60 percent of California mortgages
Attorney General Kamala Harris wants Fannie Mae and Freddie Mac to place “a good faith pause on foreclosure sales in California” until the federal government completes “a thorough, transparent analysis” of the possibility of writing down the debt of borrowers who owe more on their homes than they are worth.
Harris made the request in a letter sent Friday to Edward DeMarco, the acting director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.
“As ground zero for this mortgage and foreclosure crisis, California’s underwater homeowners deserve a straight-forward analysis from FHFA of whether a program of principal reduction by Fannie Mae will provide significant assistance to struggling homeowners as well as save taxpayer dollars,” Harris wrote in her letter.
In the letter, Harris said that a legal settlement reached earlier this month with the nation’s five largest mortgage servicers provides “an historic opportunity for you to work with us.”