Cuomo, Spitzer Join to Fight Mortgage Crisis

New York, NY —

A dispute with the federal government has warmed relations between Governor Spitzer and New York Attorney General Andrew Cuomo.

REPORTER: In a joint letter to Congress, the 2 men criticized federal bills that eliminate state law protections concerning the mounting mortgage crisis. Cuomo says he's frustrated by the federal government's actions.

CUOMO: It is an absurd position for the federal government to stand up and say, "We don't need the states participating in this issue," when the federal inaction created the problem in the first place.

REPORTER: Meanwhile, a federal regulator has objected to Cuomo's recent subpoenaing of Fannie Mae and Freddie Mac, saying risks the 2 companies face from faulty home appraisals were misstated.