COMPLAINT | MASSACHUSETTS vs FHFA, FANNIE & FREDDIE -- Lawsuit Alleges Violation of State's 2012 Anti-Foreclosure Law

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COMPLAINT | MASSACHUSETTS vs FHFA, FANNIE & FREDDIE — Lawsuit Alleges Violation of State’s 2012 Anti-Foreclosure Law

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.

[…]

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