Hi,
Oct 22 (Reuters) - A federal judge has dismissed a lawsuit brought by Massachusetts Attorney General Martha Coakley that accused mortgage finance giants Fannie Mae and Freddie Mac of violating a state law meant to prevent financially troubled residents of the state from losing their homes.
Filed in June, the lawsuit said Fannie and Freddie blocked a state program that let Massachusetts nonprofit groups buy foreclosed homes and resell them to the original homeowners.
The lawsuit said Fannie and Freddie stopped such buybacks on homes that the two groups either owned or guaranteed, citing policies that prohibit them from selling a home when the original borrower has the first right to buy it.
Coakley's lawsuit also named as a defendant the Federal Housing Finance Agency (FHFA), the conservator for Fannie and Freddie. The agency directed the two government-controlled companies to enforce the home-sale restrictions.
www.reuters.com/article/2014/10/22/...amp;feedName=companyNews
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