Fannie Mae and Freddie Mac were warned by Massachusetts Attorney General Martha Coakley to comply with a new state law aimed at reducing foreclosures by requiring mortgage loan modifications, Bloomberg News reported yesterday. The companies must offer “commercially reasonable” changes under legislation signed into law Aug. 3 by Governor Deval Patrick, Coakley’s office said yesterday. "We expect Fannie Mae and Freddie Mac, like all creditors, to comply with these statutory obligations," Coakley said Federal Housing Finance Agency. "We expect that Fannie Mae and Freddie Mac will pursue common-sense loan modifications for borrowers when the economic benefits of a modified loan exceed the significant losses anticipated at foreclosure."
http://www.bloomberg.com/news/print/2012-08-23/fannie-freddie-must-obey…
To read the text of the new Massachusetts mortgage law, please click here:
http://www.mass.gov/legis/journal/desktop/Current%20Agenda%202011/H4323…