Mortgage Principal Reduction Plan Too Costly, FHFA Says
A massive principal reduction program applied to underwater loans held by Fannie Mae and Freddie Mac would cost the mortgage giants more than $100 billion, says to an analysis released Monday by the Federal Housing Finance Agency.
The FHFA disclosed the analysis, conducted in 2010, in response to Democrats' requests made last week. They asked House oversight committee chair Rep. Darrell Issa (R-Calif.) to subpoena the agency since it failed to send the analysis as requested last year.
FHFA Acting Director Edward DeMarco has long said a principal reduction program on GSE loans would cost taxpayers too much. As of the end of the third quarter, Fannie and Freddie already owe a combined $151 billion in bailouts to the government.
Read the full story at HousingWire
Mortgage Rate Falls to New Record Low -- Again
After Dismal Year, Builders See Hope in 2012
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.