I COMMEND Paul McMorrow’s frank discussion of continuing challenges in the housing market (“The reason foreclosures will continue,” Op-ed, Feb. 19). The refusal of Fannie Mae and Freddie Mac, under the direction of the Federal Housing Finance Agency, to engage in mortgage principal reductions continues to harm Massachusetts homeowners and our economic recovery. These principal write-downs would only be done when they make financial sense to both the borrower and the lenders.
It is time for a change in this policy. I and others have called for new, permanent leadership at FHFA to replace acting director Edward DeMarco. I urge the president to make this permanent appointment and for Congress to act on the appointment quickly.
Comments
It's too bad that through the 90's they didn't have good leadership, mr. Frank Reines cooked by books bigtime.
Too bad Martha only cares about people who didn't pay their mortgages...continuing to reduce these people's mortgage only continuesto keep home prices down..and payment reductions for people who do pay their bills is far more likely to stimulate the economy, because that money exists and can be spent...people that were not paying their mortgages will spend less, because now they will have to use money to pay their mortgages that they were likely spending...Mortgage reductions for all! Or back payments for those who have lived without any housing costs for likely 2 years!
But Senator Barney Frank said they were fine & the Boston Globe took him at his word!!!