California Sues Fannie Mae & Freddie Mac (illegal, drug, attorney)

[Motion]

Dec. 21 (Bloomberg) -- Fannie Mae and Freddie Mac were accused in a lawsuit by California Attorney General Kamala Harris of hindering her probe into mortgage lending and foreclosure practices.

Harris wants to know if drug dealing and prostitution occur in foreclosed homes owned by the companies, whether taxes are being paid on those houses, and whether military families have been illegally evicted by loan servicers, according to the two lawsuits filed yesterday in state court in San Francisco.

Fannie Mae and Freddie Mac are “frustrating the Attorney General’s efforts to investigate and combat crime, blight and other threats to the health and safety of Californians,” according to the complaints.


Fannie Mae, Freddie Mac Sued by California in Foreclosure Probe - Businessweek

First the SEC and now California. What's going on with Fannie Mae and Freddie Mac? What should Obama do about this?

[Skinny Puppy]

Originally Posted by Motion

First the SEC and now California. What's going on with Fannie Mae and Freddie Mac? What should Obama do about this?

Eliminate them would be a nice start. What exactly is their purpose?

[Cletus Awreetus-Awrightus]

Originally Posted by Skinny Puppy

Eliminate them would be a nice start. What exactly is their purpose?

Without them nobody could get a mortgage.

Without mortgages, the U.S. economy does not function properly. Mortgages are more than just selling houses, they are a key way of creating new dollars, and thus, inflation.

This is stupid , but it is what we have.

[plwhit]

I'll bet we'll see numerous lawsuits filed by California seeing the deepening money crises they are in.

Nothing like practicing that great American concept: When you need money, SUE.

[kevinm]

Originally Posted by Motion

First the SEC and now California. What's going on with Fannie Mae and Freddie Mac? What should Obama do about this?

Fannie and Freddie do not issue mortgages. They BUY them from the banks. California is barking up the wrong tree.

[HappyTexan]

The government is suing the government. Oh how nice. In this case the government gets to pay for both sides fighting each other.

When revenue get tight they turn on their own.

[pghquest]

Originally Posted by Cletus Awreetus-Awrightus

Without them nobody could get a mortgage.

yes they would The difference would be that banks would be able to flip them and would have to make sure those that they were loaning to, are qualified.

[Cletus Awreetus-Awrightus]

Originally Posted by HappyTexan

The government is suing the government. Oh how nice. In this case the government gets to pay for both sides fighting each other.

When revenue get tight they turn on their own.

we're creating jobs for the poor, downtrodden lawyers.

[Skinny Puppy]

Originally Posted by kevinm

Fannie and Freddie do not issue mortgages. They BUY them from the banks. California is barking up the wrong tree.

Fannie Mae owns the mortgages, the banks in most cases are just servicers.

Fannie Mae promises to keep families in homes, but instead pressures banks to foreclose

Fannie Mae promises to keep families in homes, but instead pressures banks to foreclose | Detroit Free Press | freep.com

[pghquest]

Originally Posted by kevinm

Fannie and Freddie do not issue mortgages. They BUY them from the banks. California is barking up the wrong tree.

And banks wouldnt just issue them to anyone, without Fannie/Freddie agreeing to purchase them