Mass.AG: Mortgage giants should aid homeowners
In a letter Friday to the acting director of the Federal Housing Finance Agency, Coakley said the agency should also allow for principal forgiveness to help prevent foreclosures.
Coakley said adopting the changes could help stabilize the nation's housing market and give a boost to the wider economy.
Coakley said Fannie Mae and Freddie Mac should become leaders in the area of loan modification, not an obstruction.
Coakley's office has brought a number of legal actions against major banks and financial institutions -- including Countrywide, Morgan Stanley and Goldman Sachs -- which she said are aimed at keeping people in their homes.