Dems Press FHFA On Fannie, Freddie Loan Forgiveness

Law360, New York (November 30, 2011, 3:54 PM EST) -- House Democrats on Wednesday demanded that the Federal Housing Finance Agency — the regulator of Fannie Mae and Freddie Mac — explain its reluctance to allow the mortgage financing entities to cut loan balances for troubled homeowners.

In a letter to FHFA Acting Director Edward DeMarco, 17 lawmakers asked the agency to defend its policy against reducing the principal for underwater borrowers — those owing more than their home is worth — whose mortgages it owns.

“For too long now, we have heard superficial excuses about...
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