Feds vs. NY AG: Lending Fraud Probe Turf Battle Emerging?

The Wall Street Journal reports:

• Tensions are beginning to rise between state and federal authorities as the number of agencies investigating mortgage fraud continues to grow. New York Attorney General Andrew Cuomo is in a tussle with the Office of Federal Housing Enterprise Oversight, the federal regulator that oversees mortgage giants Fannie Mae and Freddie Mac. Their dispute is over who should be the investigating allegations of fraudulent appraisals and mortgage fraud.

• The interaction of state and federal oversight has long been a political hot potato. Friction is expected to increase as rising number of participants -- including the Justice Department and Securities and Exchange Commission -- probe the mortgage area.

For more, see Tensions Rise in Lending Probes (subscription may be required - if no subscription, go here). OFHEO