Senator Warner expressed disappointment today that the director of the government-supported home mortgage companies Fannie Mae and Freddie Mac still declines to allow targeted write-downs on delinquent mortgages. Federal Housing Finance Agency director Ed DeMarco has said he sees no benefits for the taxpayers through loan modifications that write-down debt.
“FHFA’s own analysis shows that targeted principal reduction by Fannie and Freddie could help responsible, but still struggling, homeowners remain in their homes,” Senator Warner said. “The private sector has found that principal reduction makes economic sense. Providing this assistance to underwater homeowners will help boost the overall U.S. housing market and further protect the taxpayers who’ve already been asked to cover the losses incurred by Fannie and Freddie.”