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California AG Subpoenas Fannie and Freddie

California Attorney General Kamala Harris reportedly sent subpoenas to Fannie Mae and Freddie Mac, requesting information about their servicing, foreclosure, and property leasing actions in the state.

The ""_LA Times_"":http://www.latimes.com/business/realestate/la-fi-mortgage-probe-20111117,0,7829931.story was the first to report the action Thursday, reporting comments from an anonymous source ""familiar with the matter"" but who ""was not authorized to speak on the matter.""


The attorney general's office also intends to investigate the GSEs' actions regarding purchases of ""toxic mortgages,"" according to the _LA Times._

Fannie Mae and Freddie Mac both declined to comment on the matter.

Harris announced her ""withdrawal"":http://dsnews.comarticles/california-ag-proposed-settlement-is-inadequate-for-californians-2011-10-03 from the settlement negotiations between the state attorneys general and the top mortgage servicers in early October, stating her belief that the settlement would be ""inadequate for California homeowners.""

With one of the highest default rates in the nation, Harris has been actively seeking aid for California homeowners and has recently lobbied for increased principal reductions from Fannie and Freddie.

At the end of October, the state attorneys general and servicers appeared to be ""close to a settlement,"":http://dsnews.comarticles/state-attorneys-general-and-servicers-set-to-strike-25b-settlement-2011-10-31 but state officials were reportedly hoping to bring California and New York back to the table.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.

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