Mortgage lending: California plans action against Fannie Mae and Freddie Mac
Some may say California is getting too big for its boots, that it has aspirations to being a country. That might, at least in part, be true. But the concept of the United States is that any state can sue Federal institutions - and that brings Fannie Mae into the firing line. Countries in Europe might like to take a look at whether the same options are open to them.
At a news conference today at 1:30 p.m. in San Diego, Attorney General Edmund G. Brown Jr. will discuss a major action he is initiating against mortgage giants Fannie Mae and Freddie Mac, as well as the federal agency that oversees them, for blocking what he says is an an innovative scheme that is creating tens of thousands of jobs in California while saving home-owners and small businesses money on their utility bills.
He's keeping his powder dry until that press conference so exactly what his beef is has yet to be clearly set out. More in these pages later....
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