TBO.com - TBO is Tampa Bay Online

Regulator Disputes N.Y. Investigation

ADVERTISEMENT

The Associated Press

Published: November 9, 2007

WASHINGTON - The federal regulator who oversees Fannie Mae and Freddie Mac on Thursday accused New York's attorney general of overstating risks the mortgage finance companies face from faulty home appraisals.

James B. Lockhart, director of the Office of Federal Housing Enterprise Oversight, sent a strong letter to New York Attorney General Andrew Cuomo a day after he issued subpoenas to government-sponsored Fannie and Freddie as part of a widening investigation of inflated appraisals.

In response, a Cuomo spokesman insisted that the investigation has uncovered evidence of pressure on home appraisers to inflate their assessments and that many of the tainted mortgages were purchased by Fannie and Freddie.

While respecting the jurisdiction of Lockhart's agency, "our office has a legal duty and unquestioned jurisdiction to protect New York consumers and investors," the spokesman, Jeffrey Lerner, said in an e-mailed statement.

Cuomo said Wednesday that he wants to know about billions of dollars of home loans that Fannie and Freddie bought from banks, including the largest U.S. savings and loan, Washington Mutual.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT