Posted on 06/08/2014 1:21:46 PM PDT by Lorianne
Martha Coakley, the attorney general of Massachusetts, filed suit on Monday against Fannie Mae and Freddie Mac in an effort to force the federally owned mortgage finance giants to comply with a state antiforeclosure law passed in 2012.
The law seeks to ease the way for so-called buyback programs, which are aimed at reducing the debt of the homeowner while saving the lender the cost of foreclosure and eviction. Fannie and Freddie have refused to allow homes with mortgages they back to enter buyback programs, the suit contends, even though it costs them money not to.
“For too long, Fannie and Freddie have been roadblocks to progress in addressing this foreclosure crisis, and I urge them to immediately reverse their policy on this common-sense program,” Ms. Coakley said in a statement.
The lawsuit is one of numerous aggressive efforts by Ms. Coakley, a Democratic candidate for governor, to police banks’ treatment of homeowners and their securitization of mortgages. She has won settlements from Goldman Sachs, Morgan Stanley, RBS and several subprime lenders.
The lawsuit comes on the heels of a case by a homeowner, Ramon Suero, who bought an apartment for about $300,000 in 2005 that is now worth a third of that price. He fell behind on his mortgage payments, and the home went into foreclosure.
(Excerpt) Read more at nytimes.com ...
Suing the feds? Yeah, right. Good luck with that...
So let me get this right.
Ms. Coakley, noticing how successful Lizzie “Fauxcohantas” Warren was with financial populist initiatives, is suing the government agencies which have made bad loans for not minimizing the damage by foreclosing on them?
Ok, I think I understand.
It has nothing whatsoever to do with people losing their homes.
If the Fedz will keep on paying the property tax after the foreclosure the State AG will be ticked that banks are "finally being responsible" and limiting the damage to financial institutions "deadbeats" are causing.
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