The Attorney General of Connecticut, Richard Blumenthal, is asking Fannie Mae and Freddie Mac to turn over documents regarding the foreclosure and default servicing practices of the GSEs in the state, according to letters he sent to the firms earlier this month. The letters are dated June 4 and give a deadline of compliance by June 19. Other than that, at this moment, none of the parties involved are commenting on the requests for information. Assistant Attorney General Jon Blake, who is working the case, could only acknowledge and validate the inquiry at this point, but would not say if the firms were expected to meet the deadline. In the letters, Blumenthal notes that his office is receiving complaints that “consumers are not receiving proper foreclosure notices and are being charged excessive fees in connection with foreclosure actions.” Blumenthal states these complaints may reveal a system of favoritism, where only a few select law firms and state troopers are assigned to deal with actions the GSEs are taking on the borrowers. A source for HousingWire however, states that this “concentration of resources” is a common practice in default and foreclosure servicing and not unique to GSEs. Fannie, Freddie, and the Federal Housing Finance Agency (which regulates the GSEs, and is currently their conservator) are not commenting on the state AG’s inquiry at this time. The AG requested by the aforementioned deadline 10 points of data, including disclosure of the law firms employed in the last two years, as well as the criteria for selecting these entities and copies of all contracts with law firms the GSEs work with to manage borrower defaults. The office also want all fees paid to these business identified and itemized before being sent over. The AG also requested disclosure of services provided to lenders. Additionally, Blumenthal wants to see all complaints Fannie and Freddie recently received concerning foreclosure actions. Write to Jacob Gaffney.

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