California sues Fannie Mae and Freddie Mac
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California Atty. Gen. Kamala D. Harris has filed suit against mortgage titans Fannie Mae and Freddie Mac for refusing to answer subpoenas issued to the companies this year.
The suits, filed Tuesday in San Francisco County Superior Court, comes after investigators with the state attorney general’s office presented the two firms with questions regarding their foreclosure, lending and mortgage-related practices in the state.
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The subpoenas ask the government-controlled finance companies to answer questions about their activities in California, including their roles as landlords that own thousands of foreclosed properties, The Times previously reported. The attorney general’s office is also seeking details of Fannie and Freddie’s mortgage-servicing and home-repossession practices.
In addition, investigators want to learn more about the companies’ purchases and sponsorship of mortgage-backed securities in the Golden State. According to separate suits filed by Harris against Fannie and Freddie, the two companies refused to answer the questions. The filing of the suits was reported earlier by the Wall Street Journal.
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— Alejandro Lazo