November 7, 2007

New York probes government lenders (AP)

The headquarters of mortgage lender Fannie Mae is shown in northwest Washington October 3, 2006. New York Attorney General Andrew Cuomo plans to announce a 'significant new development' on Wednesday in his probe into the mortgage industry involving Fannie Mae and Freddie Mac, his office said. (Jason Reed/Reuters)AP – New York Attorney General Andrew Cuomo’s subpoenas to government-sponsored lenders Fannie Mae and Freddie Mac sent another shock into the home mortgage industry where he said conflicts of interests are costing consumers thousands of dollars because of inflated appraisals.

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