More than 20 lawmakers in the House of Representatives this week called on Fannie Mae and Freddie Mac to reduce the mortgage principal of borrowers who owe more on their home than it is currently worth.
The Federal Housing Finance Agency, which regulates Fannie and Freddie, has been refusing to take such a drastic move, citing concerns that writing down principal balances may create a “moral hazard” and prompt other borrowers to stop making loan payments on time.
But the Democrat lawmakers argue that such action would reduce the risk of defaults for about 20 percent of Fannie and Freddie’s mortgages.
“We strongly urge that you reconsider your refusal to allow principal reductions to achieve better-performing [loan] modifications and avoid the extreme losses of unnecessary foreclosures,” the Democrat lawmakers wrote in a letter to the FHFA.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2011/11/23/lawmakers-urge-mortgage-principal-write-downs
At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.
Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.
If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at: manager@gayrealestate.com
