NEWS FLASH

Federal Housing Regulator Decides Not To Write Down Mortgages For Troubled Homeowners | The Federal Housing Finance Agency has decided not to allow Fannie Mae and Freddie Mac, the two government backed housing giants, to reduce mortgage amounts for troubled homeowners. FHFA acting director Ed DeMarco, whose agency regulates Fannie and Freddie, said in a letter to today that FHFA has concluded “that the anticipated benefits [of reducing mortgage principal] do not outweigh the costs and risks.” A recent FHFA analysis showed that taxpayers could save billions of dollars if mortgage principals were written down. In a letter to DeMarco, Treasury Secretary Tim Geithner said, “I do not believe [the FHFA's decision] is the best decision for the country.”