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CA attorney general demands answers from Fannie, Freddie in lawsuits

A Fannie Mae sign is seen in this undated file photo.

December 21, 2011 12:00:00 AM PST
Mortgage giants Fannie Mae and Freddie Mac are facing lawsuits in California.

The office of Attorney General Kamala Harris filed the suits, demanding answers about Fannie Mae and Freddie Mac's involvement in 12,000 foreclosed properties in California where the companies served as landlords.

They also want the companies to reveal whether they have information on the decreased value of homes due to drug dealing or prostitution, as well as explosives and weapons found on vacant properties.

The lawsuits could determine whether states have a right to investigate the mortgage firms while they are under federal control.

Harris argues that since the mortgage companies own properties in California, they are subject to state law and demands.

The companies have not commented on the lawsuits.

The Associated Press contributed to this report.

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