Monday, November 21, 2011

California AG Hits Fannie, Freddie w/ Subpoenas; Demands Information About Conduct Towards Renters In F'closed Homes, Involvement With Toxic Mortgages

In Los Angeles, California, the Los Angeles Times reports:

  • Investigators with the California attorney general's office have subpoenaed information from mortgage titans Fannie Mae and Freddie Mac as part of a wide-ranging inquiry into lending and foreclosure practices in the state.

  • The subpoenas ask the government-controlled finance companies to answer a series of questions about their activities in California, including their roles as landlords who own thousands of foreclosed properties.

  • The attorney general's office is also seeking details of Fannie and Freddie's mortgage-servicing and home-repossession practices, according to a person familiar with the matter.

  • In addition, investigators want to learn more about the companies' purchases and sponsorship of securities holding "toxic mortgages" in the Golden State, said the person, who was not authorized to speak on the matter and requested anonymity.

For more, see California attorney general's office subpoenas Fannie, Freddie (Information is sought on the mortgage giants' roles as landlords who own thousands of foreclosed properties in California. Also sought are details of their mortgage-servicing and home-repossession practices, a source says).

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