Posted: May 15, 2012 3:13 PM by Associated Press
SACRAMENTO, Calif. (AP) - The federal government's main regulator of home loans is objecting to mortgage-related bills in California, saying they could end up increasing lending costs and harming the housing market.
Lenders say the legislation goes well beyond the terms of the $25 billion settlement announced in February between the nation's largest banks and more than 40 states over foreclosure abuses.
They picked up a powerful ally in the Federal Housing Finance Agency. It oversees mortgage giants Fannie Mae and Freddie Mac, the agencies that own about 60 percent of California's mortgages.
The finance agency's general counsel has sent a letter to lawmakers saying some of the bills will encourage borrowers to sue lenders to stall legitimate foreclosures. Attorney General Kamala Harris is seeking the legislation, and her spokesman disputed the criticism Tuesday.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
5/15/2012 2:59:29 PM (GMT -7:00)
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