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California Attorney General Sues Fannie Mae, Freddie Mac

December 26, 2011 by  

California Attorney General Sues Fannie Mae, Freddie Mac

California’s Attorney General filed lawsuits against Fannie Mae and Freddie Mac last week, demanding that the companies respond to questions in a State investigation, reported The Associated Press.

According to the news outlet, the two mortgage giants, which own roughly 60 percent of the mortgages in the State, are the target of an investigation led by Attorney General Kamala Harris into their involvement in 12,000 foreclosed properties in California.

The AP reported that Harris also wants to find out what role the companies had in selling or marketing mortgage-backed securities. The lawsuit asks the mortgage firms to reveal whether they have information on the decreased value of those homes due to several factors, including the presence of drug dealing or explosives.

“Foreclosures not only affect the families who lose their homes, but also the safety, health and welfare of the entire community,” the lawsuit said.

The Wall Street Journal reported that the Securities and Exchange Commission has alleged securities fraud against former executives at the two mortgage firms over deceptive and misleading public statements in the wake of the financial crisis.

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  • s c

    On the surface, hooray for California. Underneath Harris’ move, the people of California and all other AGs need to know if this is a lame fishing expedition. At least THREE key names crop up when discussing Fannie and Freddie.
    So far, those THREE key names have been able to hide behind Obummer, Holder and a Washingtonian ‘that’s the way it goes,’ it was an accident, no one’s to blame, let’s drop it and move on defense.
    Either truth and accountability MATTER, or this latest episode of a redistribution of wealth gambit is proof that “certain” people are above the law and all Americans are good for is a good screwing by an utterly corrupt, power-mad regime.
    I hope Harris is willing to go for the throat and genitals. It may be her only chance to help restore trust and faith in a government that makes Ponzi seem like an innocent baby.

    • Michael

      Good for the governor. Now if only some of the others will follow.

      • Matt Newell

        She’s not the Governor, “Moonbeam” is. And I doubt that she has the Democrat’s blessings with this lawsuit either.

    • http://www.personalliberty.com Patrick Corrigan

      I am very encouraged, this internet is the route to taking back our lives and our government. I heretofore had all but given up. You GO fellow American, and you too fellow HUMANS.

    • Joe H.

      sc,
      I think you forgot one other name on that short list. Bawney Fwanks!!! Now that i consider further, it might contain the grinch’s name as well!!!

      • s c

        Joe H, I didn’t mention Fwank, Dodd or Raines for a reason. This website’s utopian apologists didn’t volunteer any names, so you know where their loyaties are. Like it says in Orwell’s 1984, ‘some are more equal than others.’
        As long as certain people can hide behind the skirts of Obummer, Holder and the rest of America’s current weasels, justice is just a word. And Obummer is somehow allowed to define and redefine ANY word.
        What can be said about a nonleader who couldn’t a dime’s worth of integrity, spine or ‘jewels’ at a WalMart if they were on sale? Are his jockstrappers any better?

  • cawmun cents

    It is a move designed by the progressives to throw you off the beaten track.If one progressive appears to be attacking a group of progressives then the subterfuge can be complete.Where was this person 3 years ago?Why wasnt it brought up then?Their special envoy to the homosexual caucus was there,and vulnerable.So they waited until he stepped down.
    How ingracious and disingenuous can you get?
    Just watch the progressives if you wish to learn.
    Watch the Hollywood stylings of the Kaulifohnia AG,and see if they do not match up with that which we have seen recently.
    The same tired old tactics in DC,are evidently rubbing off on someone out on the left coast.HMMMM,dont think I could have seen it coming.
    Yes after there is a complete disaster,you need to point fingers,right?
    To me,this is a classic example of slight of hand.
    The current administrations way of jumping into the stream so the bloodhounds cant track them down.Wash off the stink.Do it in the progressive bastion of legislatory cleptomania out in Cali,and we will look as if there is some fair play going on out here in Hollyweird.
    Aint no fish biting here.
    I assume that the guppies of the progressive movement will harry the bait.But nobody is truly stupid enough to bite.
    eddie47d?
    karolyn?
    Dr.Smith?
    Sarvis?
    Anyone?
    Yes….just looking as if you are attempting to speak for the constituents is a good one.Unfortunately I dont think any of us are drunk enough to laugh at the joke.
    But what do I know?
    Apparently very little…….
    -CC.

  • Bert Cundle Sr.

    That is a Good thing… But: I wonder how much of their holdings are available. My Guess If they are rattled, they will put their $ in the Bank of Dubi. ( Don’t trust Realitors!)
    The reduced rates of interest; is a good thing! But the invaision of foreigners, is unforgivable!

  • Rayma Dorsa

    First Squeek I have heard from California,seems they are ready to kiss something besides the “balarnay stone”However any Government,I don’t trust could be I have been in California to long,maybe they are just tying up loose ends,so thier place dollars are in the right place when the country falls…

  • James

    Fannie Mae and Freddie Mac were created by Congress, my guess is the case will be dismissed for lack of jurisdiction over federal agencies.

    • http://www.personalliberty.com Patrick Corrigan

      The root of the problem in Government is that there is just too much money in it. Mr. Perry mentioned establishing a part time congress, a “citizen congress”. That is a very fine start, and Mr. Cain’s idea of overhauling our Tax system is another one.
      I am an unemployed near homeless person who has been working illegally in Mexico for the past 15 yrs and not even I want government help. I prefer a job every day any day of the week. From what I see the “Great Society” sucks.

  • http://liberyalearts john p.

    THERE IS TO MANY FINGERS IN THE COOKIE JAR . WHEN THE GOVERNMENT HAS
    ANYTHING TO DO IN RUNNING ANYTHING . CHRIS DODD AND BARNY FRANKS
    ARE THE BLAME .THEY LIED TO CONGRESS AND THE SENATE ABOUT EVERY THING
    AND THEY GOT AWAY WITH IT.THEY GOT THERE PENSIONS AND HEALTH CARE
    AND THERE FREEDOM .THIS YOUR TAX DOLLARS AT WORK .GOVERNMENT HAS
    WAY TO MUCH POWER IN OUR COUNTRY . THE ONLY SAY WE HAVE IS AT
    THE POLLS WHEN WE VOTE .BUT THE NEWS PEOPLE LIE TO US AND PEOPLE
    LESION TO THEM . WHO TO VOTE FOR THIS IS THE LAMBS THAT ARE FOLLOWERS .

    • http://www.personalliberty.com Patrick Corrigan

      Okay, what government program is run well?
      I am amazed, the same folks that sack our treasury with the slickest heist in history (the mortgage rippoff, are wanting to be rewarded with the management of our health care. They must think we are really stupid.
      The best consequence for those people involved is to go straight to Prison. I have been there and it is a wonderful place to contemplate ones sins. If a thief doesn’t pay the ultimate price they will just continue. Cap n Trade, health care, they are just more scams.

      • http://www.personalliberty.com Patrick Corrigan

        And another thing, let’s get union, and lobby money out of politics.

        • Bert Cundle Sr.

          The word “Lets” indicates, UNION!!!

          • Joe H.

            Bert,
            yes, as you spell it, lets, as in the government LETS itself be swayed by union money, it idoes indicate union. as the man USED the word, Let’s kick the union out of politics, it definately does NOT indicate union!!! i know a great many union membes that support Ron Paul, why should their dues go to support someone they are diametrically AGAINST????

          • James

            Bert, Like don’t means ‘do not,’ let’s means ‘let us.’

        • Joe H.

          Patrick corrigan,
          While I DO hope for that, I wish you luck as I doubt it wll ever happen!!!

      • eddie47d

        That would of coarse include Corporate and Wall Street money,correct?

    • FWO21

      In my opinion, we don’t have a say at the polls; not in my state anyway. Their minds are already made up before I ever get a chance to vote. And, if it’s not like that, then my vote goes to the one I don’t want because I tried to vote for a different party (not Republican or Democrat) because I didn’t trust the ones running, and my vote went to Obama because not enough people voted for the constitutional party, like I did. This seems off-topic but it is a reply to john p.

  • duaner

    If he attorneys’ general all sue these bozo’s (freddie and fanny) where do you think the money is coming from??? The taxpayers. The only real solution is to disband these agencies and let the banks fend for themselves.This will bring home lending back to reality ( and interest rates where they should be 6-8% range). Also, go after the prior leaders of these agencies and recoup the outrageous bonuses these crooks got. Only in America can a person be rewarded for failure on a grand scale. Go figure.

    • Bert Cundle Sr.

      500,000.00
      0.05 =
      0.05 ×
      ————————–
      25,000 =

      30 ÷
      ————————–
      833.333333333333333 =

      12 ÷
      ————————–
      69.44 / month … $1,388.00 to Principal!
      o.k. ! But now… $300.00 to Principal!

      • Bert Cundle Sr.

        Head of household Should make $6,000.00 / Month for that house!

  • Larry Castle

    I have a question folks, we the tax payers have already bought all of these mortgages through the TARP, etc. What is the point in spending more money trying to recover the money that is already gone and will never come back. What we should be saying to the government and the banks is this. You got paid for the bad mortgages from the tax payers, now release all these loans, and leave the home owners alone no foreclosure allow on any of the property that the banks and fanny/freddy took taxpayer bail outs for.

    • eddie47d

      Freddie and Fannie need to take their lumps in allowing a bad product or idea to hit the market. Yet once again it was the private companies like Countrywide who inflated the ponzi schemes and bundled the loans to make money. Freddie and Fannie only encouraged low cost loans they didn’t tell the private market how to do it. The inflated home prices came from private manipulation of the markets. The bundled loans came from the private market. Creative financing came from the private market and Wall Street Hedge Fund Managers. In other words if you are not willing to take on these private loan makers and deal breakers then they will also go out and do it again. Rein them all in or you gain nothing.

  • Jay

    This is absolute non-sense! Not just Fannie Mae and Freddie Mac need to be investigated, but our Federal Government that made it possible for the two mortgage companies to buy home loans from banks and other lenders, package them into bonds with a guarantee against default and then sell them to investors around the world. And to the obvious collusion, our Federal Government bails them out to the tune of 150 billion plus! Now the Attorney General files a law suit?

    I agree with the above poster CC, this is nothing more than smoke and mirrors. The same crooks that facilitated the mortgage fiasco, are now the very same that will investigate, file a law suit? Yeah right!

    The companies have so far cost American taxpayers more than $150 billion – the largest bailout of the financial crisis. They could cost up to $259 billion, according to the FHFA.

    Question: If the bail-outs were provided, why are Fannie and Freddie for-closing?

  • hitthedeck

    I wonder if this attorney named Barney Frank and Chris Dodd in the lawsuit.

  • RoughandReady

    Well, if the Executive Branch and the Legislative Branch will not defend the citizens of the United States, then I guess the states will have to cry for some accountability. I hope my state follows California. Damn, I never thought I would be saying that!!!!!!

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