New York Attorney General Andrew Cuomo Widens Investigation to Fannie Mae and Freddie Mac.
Cuomo Subpoenas GSEs in Loan ProbeNew York Attorney General Andrew Cuomo said Wednesday that his office will subpoena Fannie Mae and Freddie Mac as part of a widening probe of the residential mortgage industry.
Among other things, the subpoenas seek information on mortgages purchased by the government sponsored enterprises(GSE’s) from their seller/servicers, including Washington Mutual of Seattle.
The GSEs also agreed to a demand by the New York AG that they hire an independent examiner to conduct a review of all WaMu appraisals on mortgages they purchased.
In 2006 WaMu sold north of $30 billion in loans to the GSEs. “In order to fulfill their duty to consumers and investors, Fannie Mae and Freddie Mac must ensure that Washington Mutual’s mortgages have not been corrupted by inflated appraisals,” the attorney general said in a statement.
Tags: Fannie Mae, Freddie Mac, Government Sponsored Enterprise (GSE), Lenders With Problems 2007, Mortgage News, Washington Mutual, www.wamu.com
