"Dems push Fannie, Freddie regulator on mortgage write-downs"
Do Democrats have any idea what these types of policies will have on new loans being made? If you can have a loan you make marked down dramatically after you make it, why would you ever make that type of loan? From The Hill newspaper:
Congressional Democrats are expected to continue pushing a federal housing regulator to write down mortgage principal for government-backed loans if a settlement with banks doesn't help out enough homeowners.
The federal government is "very close" to an agreement with mortgage servicers that could help about a million homeowners, Housing and Urban Development Secretary Shaun Donovan said this week.
The deal, which also includes states' attorneys general, would require the nation's five largest banks — Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial — to spend upward of $25 billion to help borrowers caught up in so-called robo-signing practices where servicers signed-off on foreclosure paperwork without properly reviewing documents. . . .
Labels: financialmarkets, mortgagecrisis
posted by John Lott at 10:07 PM
1 Comments:
An increasing chorus of legislators and government authorities has called for Freddie Mac and Fannie Mae, the government-backed mortgage insurers, to write down mortgage principals for underwater homeowners. The agencies have received billions of dollars in bailout funding over time. However, the main regulator for the companies has balked at the idea of Freddie Mac and Fannie Mae principal savings, so it isn't likely to occur. Source for this article: Freddie Mac and Fannie Mae principal savings
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