Mortgage Aid Pilot Programs Were Halted, Papers Show
The Federal National Mortgage Association and Freddie Mac approved and even initiated programs to reduce homeowner debt and save taxpayers millions, but halted them before the trials had progressed far enough to measure success, according to documents released Tuesday.
The documents came to light the day after Edward J. DeMarco, the conservator who oversees the Federal National Mortgage Association, known as Fannie Mae, and Freddie Mac, missed a self-imposed deadline to release a new analysis of the cost benefits of principal reduction that would include new incentives offered by the Treasury Department.
Mr. DeMarco has come under increasing pressure from Democrats to forgive debt for certain homeowners when it would both restore some equity and save the lender money by heading off foreclosure.
He has opposed it, though he recently conceded it would reduce the agencies’ losses.
Frank says: