HUD Head Pressures FHFA To OK Mortgage Write-Downs

Law360, New York (April 9, 2012, 3:54 PM EDT) -- The secretary for the U.S. Department of Housing and Urban Development on Sunday publicly leaned on the Federal Housing Finance Agency to let struggling Fannie Mae and Freddie Mac mortgage holders write off parts of their loan principals.

HUD Secretary Shaun Donovan made his case for having the FHFA take up the controversial tool as part of its arsenal to help underwater homeowners in a pretaped interview with reporters televised on C-Span. He offered to help build in safeguards to prevent homeowners from strategically defaulting on...
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