Fannie and Freddie Consider Principal Reductions
After steadfastly refusing to consider principal reductions for Fannie Mae and Freddie Mac mortgages, Edward DeMarco, Acting Director of the FHFA (Federal Housing Finance Agency) has telegraphed that he will consider them.
Roughly 60% of all mortgages are held by Fannie and Freddie.
Together, Fannie and Freddie loans account for 29% of seriously delinquent loans.
It has been estimated that principal reductions for Fannie Mae and Freddie Mac loans could cost taxpayers $100 BILLION.
That’s in addition to the $180 BILLION cost (to date) of rescuing them from insolvency.
A billion here, a billion there and it soon starts to add up to real money.
Source: DSNews.com article
March 31st, 2012 Posted in Inside Real Estate
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