The FHFA's Wrong on Principal

Wack, Kevin
March 2012
American Banker;3/2/2012, Vol. 177 Issue F308, p9
Trade Publication
The article presents the author's view that the U.S. Federal Housing Finance Agency (FHFA) has taken a wrong approach to debt relief for homeowners. The agency's analysis of taxpayer losses for hypothetical borrowers who received principal forgiveness modifications and those receiving principal forbearance is discussed. The effect of these scenarios on mortgage financing companies Freddie Mac and Fannie Mae in terms of cost savings for taxpayers is noted.


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