California AG Seeks ‘Good Faith Pause’ On GSE Foreclosure Sales

Posted by Orb Staff on February 27, 2012 No Comments
Categories : Mortgage Servicing

11003_220px-kamala_harris_official_attorney_general_photo California AG Seeks 'Good Faith Pause' On GSE Foreclosure Sales California Attorney General Kamala Harris has called on the government-sponsored enterprises (GSEs) to institute a ‘good faith pause on foreclosure sales in California’ while the federal government enacts a ‘thorough, transparent analysis’ of the possibility of writing down the debt on homeowners with underwater mortgages.

The Bay Citizen reports that Harris made her request in a letter to Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco. Mortgages owned by the GSEs were not included in the Feb. 9 settlement between the nation's five major banks and federal and state government agencies. Fannie Mae and Freddie Mac own more than 60% of California's residential mortgages, but both the GSEs and the FHFA have been publicly cold to the notion of assisting underwater borrowers with loan modification assistance.

‘As ground zero for this mortgage and foreclosure crisis, California's underwater homeowners deserve a straight-forward analysis from FHFA of whether a program of principal reduction by Fannie Mae will provide significant assistance to struggling homeowners as well as save taxpayer dollars,’ Harris wrote.

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