Oct 31, 2011
FHFA: Refinancing, yes; principal reduction, no
31 Oct 2011
Posted by Andrew Kantor
The director of the Federal Housing Finance Agency (it oversees Fannie and Freddie) has made it clear that the agency is not considering reducing the balances of borrowers — only their interest rates.
Congress has been pushing the agency to look at principal reduction, but FHFA director Edward DeMarco said that, “Some of those things that are being advocated for us to do really go beyond what Congress has given us the authority to do.”