Class Action Claims Fannie Mae Violated California Credit Reporting Law

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit has been filed against Federal National Mortgage Association, i.e. Fannie Mae, over alleged “widespread” violations of the California Consumer Credit Reporting Agencies Act (CCRAA). 

The 51-page lawsuit claims Fannie Mae has unlawfully deprived mortgage applicants their rights under the CCRAA by inaccurately reporting that consumers had undergone one or more foreclosures, among other falsehoods. In truth, the lawsuit says, the consumers had actually experienced a prior short sale—a real estate sale from which the proceeds are less than debts secured by liens on a property. On top of this, the case alleges Fannie Mae failed to:

• Provide consumers with all information it sells or furnishes on a “cooperative non-profit basis” about them to third parties;
• Allow consumers to obtain a copy of and review information about them that Fannie Mae sells; and
• Permit consumers to dispute and ultimately correct any inaccuracies.

The lawsuit also hopes to take Fannie Mae to task for its alleged practice of exerting its “tremendous,” albeit mostly silent, influence on the secondary mortgage loan market. From the complaint (emphasis ours):

To this claim, the lawsuit argues Fannie Mae has intentionally made itself unaccountable to consumers while failing to comply with the CCRAA.