FHFA Chief Says Principal Reductions Could Save $1.7B

Law360, New York (April 10, 2012, 2:27 PM ET) -- The head of the federal agency charged with overseeing Fannie Mae and Freddie Mac on Tuesday said incentives offered by the Obama administration could save the two mortgage giants $1.7 billion by cutting the amount of money underwater homeowners owe on their mortgages.

But Edward J. DeMarco, the acting head of the Federal Housing Finance Agency, cautioned that even if Fannie and Freddie engaged in principal reductions for troubled homeowners, it would benefit only a relatively small number of borrowers and aid in preventing foreclosures on...
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