Geithner Seeks Policy Sway Over Independent FHFA

Law360, New York (March 28, 2012, 4:59 PM EDT) -- Treasury Secretary Timothy Geithner on Wednesday joined other Democratic officials calling on Fannie Mae and Freddie Mac's regulator to allow the two mortgage giants to reduce the amount of money underwater homeowners owe, adding he "would welcome" the authority to force a policy change.

In testimony before the U.S. Senate Appropriation Committee's financial services and general government subcommittee, Geithner said there is an economic argument that engaging in principal reductions in certain cases could actually benefit Fannie and Freddie, and in turn taxpayers.

The Federal Housing...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.