Loan Modification News: The California Attorney General, Kamala Harris, has launched legal proceedings against Fannie Mae and Freddie Mac demanding that the federal mortgage giants cooperate with a state inquiry. Harris is placing a spotlight on Fannie and Freddie’s involvement in 12,000 foreclosed homes in California where they essentially assumed the responsibility of landlord. Additionally, Harris is intent on uncovering the role Fannie and Freddie played in the sale, or at least the marketing, of home loan-backed securities. Both firms are being asked to respond to 51 subpoenas that require them to disclose all the properties in CA that they foreclosed on.
Fannie and Freddie currently own around 60% of the state’s mortgages. The two companies are also required to disclose any information they have on the reduction in value of the 12,000 homes due to issues like drug dealing and/or prostitution, along with weapons and explosives that are located on some of these vacant residences. Harris is concerned that these foreclosures not only affect the lives of the people who have lost their homes, but also the safety and perceived real estate value of entire communities and neighborhoods as well.
The burden on Fannie and Freddie does not end there. The companies have also been called upon to confirm whether or not they have complied with civil rights legalities that are intended to safeguard minorities and members of the United States armed forces against illegal foreclosures as well as convictions. The law suits in question will also establish if the companies are adhering to California’s tax and securities laws. What makes these lawsuits particularly interesting is the fact that they will make it clear whether states are justified in investigating Fannie and Freddie while they are under federal control.
In Harris’s view, because the companies own homes in California, they have to comply with state law and directives. At this point in time. Fannie and Freddie own or back about 50% of all American mortgages. That’s a figure of 31 million loans. With all the bailouts that have taken place to date, these federal agencies have already siphoned 150 billion dollars out of the pockets of American taxpayers. It represents the most significant bail-out of the financial crisis by a long shot. By the time it’s all said and done, the final price-tag that taxpayers will be required to foot could be close to 260 billion dollars, according to the Federal Housing Finance Agency.
Harris has stated that she will not participate in a proposed 50-state settlement relating to foreclosure and http://www.mycaal.com/ malpractices that various federal officials and other state AGs are currently discussing with the largest banks in the United States. A settlement of this nature would provide banks with an unbalanced degree of immunity from civil litigation, and make it far too easy for them to get away with severe real estate abuses with nothing more than a little slap on the wrist.
However sincere Harris’s efforts are in pursuing justice, or not, it is refreshing to come across anyone in this day and age in America who refuses to go along with the status quo and who at least seems to give a hoot about securing justice for victimized homeowners. Goodness knows, there is a severe lack of people or organizations in the country who are willing to do exactly that.
About Carla Ghosn
|CEO and Founder of MyCaal.com keen on helping American homeowners save their home. If you need help loan modification hep, visit www.mycaal.com to get help on pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online.|