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.
Fannie Mae and Freddie Mac have been a roadblock to progress for many families and our economic recovery. It is time for new ideas and new leadership at FHFA.