Home > Avid Law Center, Foreclosure > AG Kamala Harris strikes again!

AG Kamala Harris strikes again!

California Attorney General Kamala Harris filed lawsuits against Fannie Mae and Freddie Mac on Tuesday. The lawsuits demand that the companies that own some 60 percent of the state’s mortgages respond to questions in a state investigation, according to the Huffington Post.

While an attorney representing the Federal Housing Finance Agency said state attorneys general do not have the authority to issue subpoenas against the federal conservator, Harris argues that since the mortgage companies own properties in California, they are subject to state law and demands.

Attorney General Harris is investigating Freddie Mac’s and Fannie Mae’s involvement in 12,000 foreclosed properties in California where they served as landlords. She also wants to find out what role the companies played in selling or marketing mortgage-backed securities.

The lawsuits ask the mortgage firms to respond to 51 investigative subpoenas that call on Fannie Mae and Freddie Mac to identify all the California homes on which they foreclosed. The lawsuits also ask the mortgage firms to reveal whether they have information on the decreased value of those homes due to drug dealing or prostitution, as well as explosives and weapons found on those vacant properties.

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