COMPLAINT | MASSACHUSETTS vs FHFA, FANNIE & FREDDIE -- Lawsuit Alleges Violation of State’s 2012 Anti-Foreclosure Law
COMMONWEALTH OF MASSACHUSETTS SUFFOLK, ss.
COMMONWEALTH OF MASSACHUSETTS, Plaintiff, v. FEDERAL HOUSING FINANCE AGENCY, FEDERAL HOME LOAN MORTGAGE CORPORATION, and FEDERAL NATIONAL MORTGAGE ASSOCIATION, Defendants.COMPLAINT
1. The Commonwealth of Massachusetts, by and through its Attorney General Martha Coakley, brings this action against defendants Federal Housing Finance Agency ("FHFA"), Federal Home Loan Mortgage Corporation, ("Freddie Mac") and Federal National Mortgage Association, ("Fannie Mae") to require them to comply with a Massachusetts law that forbids banks and lenders from refusing to allow the sale of homes in foreclosure to non-profit organizations if the property will be resold or leased by the non-profit to the former homeowner. As described more fully below, Fannie Mae, Freddie Mac and their regulator and conservator, FHFA, have employed policies that restrict the sale of properties owned or guaranteed by Fannie Mae or Freddie Mac, in direct violation of M.G.L. c. 244, §35C(h). The Commonwealth asks the Court to enjoin the Defendants' unlawful practices in Massachusetts. [...]