State Senator Beth Moura (R – Cumberland/Lincoln) put out a press release calling for a forum with top executives of Fannie Mae and Freddie Mac, the federal governmentally backed financial entities that securitize mortgages for the servicing banks.
Moura’s allegation is that Fannie and Freddie aren’t working with many distressed Rhode Island homeowners to refinance a mortgage and instead prefer to send the property to foreclosure, add more red ink to their books and then go to the federal government for bailout money.

Moura says, “I believe they are intentionally creating these huge losses in mortgage defaults so they can justify on paper their requests for hundreds of billions in taxpayer money. The longerthey take to review modification applications, the further behind the homeowners end up, the higher the arrearage gets, the larger the investor loss appears, therefore making a modification that much harder to qualify for. The perfect storm has been created.”

Moura wants the top executives of these firms to come to Rhode Island and disprove her allegations and evidence. She claims to have “notes, files and homeowners from Westerly to Woonsocket” ready to testify.
We’ll wait to see if she is able to get a response from either of the finance giants.