Massachusetts sues Fannie Mae, Freddie Mac

|About: Fannie Mae (FNMA)|By:, SA News Editor

Massachusetts has sued Fannie Mae (FNMA) and Freddie Mac (FMCC), saying they violate state law by blocking foreclosure buyback programs.

Buyback programs allow a non-profit organization to purchase a foreclosed home and then resell it back to the original owner at a more reasonable price.

Massachusetts passed a law in 2012 prohibiting creditors from blocking such programs, although Fannie Mae and Freddie Mac have failed to comply.