Mass. Warns Fannie, Freddie To Follow New Mortgage Law

Law360, New York (August 23, 2012, 5:26 PM EDT) -- Massachusetts Attorney General Martha Coakley warned Fannie Mae and Freddie Mac on Thursday that they must comply with a recently passed state law aimed at curbing foreclosures, after the regulator of the mortgage giants rejected a national debt-reduction plan.

Coakley said in a public letter to the Federal Housing Finance Agency that Fannie Mae and Freddie Mac must follow the law, signed Aug. 3, which requires lenders to offer "commercially reasonable" loan modifications to struggling homeowners.

"We expect that Fannie Mae and Freddie Mac will pursue...
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