The U.S. Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac, subpoenaed companies that sold the mortgage giants mortgage-backed securities. The agency is striving to determine whether issuers are liable for losses on the securities. The regulator is seeking transaction documents and loan files. "By obtaining these documents we can assess whether contractual violations or other breaches have taken place leading to losses for the enterprises and thus taxpayers," said Edward J. DeMarco, acting director of the agency.
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