Cuomo subpoenas shake mortgage industry

Want to use this article? Click here for options! ALBANY, N.Y. - New York Attorney General Andrew Cuomo’s subpoenas to government-sponsored lenders Fannie Mae and Freddie Mac sent another shock into the home mortgage industry where he said conflicts of interests are costing consumers thousands of dollars because of inflated appraisals. On Wednesday Cuomo said he wants to know about loans Fannie Mae and Freddie Mac purchased from banks, including Washington Mutual Inc.

The subpoenas also seek to find out how the government-sponsored companies handle appraisals to see if lower income home buyers were stuck with loans based on inflated appraised values. Cuomo has accused a major appraiser of colluding with lenders to inflate home values and indebtedness for home buyers.
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