"Elizabeth Warren Calls On FHFA To Do More To Help Homeowners"
The Federal Housing Finance Agency — which is the regulator for government backed mortgage giants Fannie Mae and Freddie Mac, headed by acting director Ed DeMarco — has been blocking Fannie and Freddie from writing down mortgage principal for troubled homeowners. DeMarco argues, contrary to the view of many economists, that writing down mortgages will put too big a dent in Fannie and Freddie’s bottom line. In a statement yesterday, Massachusetts Senate candidate Elizabeth Warren (D) called on the FHFA to stop blocking this crucial help for homeowners. “The foot-dragging in Washington has stalled economic recovery and has hurt our families,” said Warren. “We need a housing policy that fires on all cylinders: principal write-downs, refinancing options, cash for keys, and short sales.”