FHFA: Principal reduction would cost Fannie, Freddie $100 billion

initial jobless claims rise by 12K to 293K Following last week’s significant downtick to 206K for initial jobless claims, this week’s reading rose to 214K. This is slightly below the 215K rise that was expected, and while this week’s release is about 12K higher than last week, it is still at the lower end of the range we have seen in the past year.

Reducing mortgage principal on government-owned mortgages would cost $100 billion, making it an unlikely option, a federal housing regulator said Monday.

The FHFA stands firm The Federal housing finance agency (fhfa), the conservator of Fannie Mae and freddie mac told lawmakers in a letter today that forcing the two to write down the principle on.

In that letter, DeMarco affixed a disingenuous price tag to principal reduction: $100 billion. That’s what it would cost were Fannie and Freddie to forgive enough principal on the roughly 3 million underwater homes on its books to bring down balances to the level of current property values.

Federal takeover of Fannie Mae and Freddie Mac Fannie and Freddie already have cost taxpayers over $188 billion. s estimate is based on FHFA’s own analysis which was provided to the Treasury. “In view of the clear benefits that the use of.

Former FHFA Director Edward DeMarco refused to consider principal reductions, arguing that it might cost taxpayers even more after they had already spent nearly $188 billion to save Fannie and.

Many employed veterans unable to afford typical mortgage James Mackey heads to Freddie Mac James Mackey heads to Freddie Mac. According to Reuters, James Mackey will replace Ross Kari, as chief financial officer for Freddie Mac, and will report to chief executive officer donald layton. mackey previously served as finance chief at Ally Financial, formerly GMAC. Before that he worked at Bank of america. freddie mac has been without a CFO since December 2012.

The regulator for Fannie Mae and Freddie Mac told lawmakers that forcing the two mortgage firms to write down loan principal would require more than $100 billion in fresh taxpayer funds.

But DeMarco has steadfastly refused out of concern that it would increase the cost of the taxpayer bailouts of Fannie and Freddie. As of June 20, taxpayers have pumped $188 billion into. qualify.

[Edward] DeMarco [the interim head of the Federal Housing Finance Agency (FHFA), says principal reduction could cost taxpayers 0 billion. Some economists counter that while principal reductions might lead to a short-term hit for Fannie and Freddie, it would ultimately result in fewer underwater mortgages, fewer foreclosures and a healthier.

 · Pressure Grows on Fannie and Freddie to Cut Principal on Loans. Proponents of debt forgiveness note that roughly one out of five Americans owes more on a home than it is worth, and that negative equity totals almost $700 billion. Reducing some of that debt will save families’ homes and save lenders money, they say,

GSEs lower expectations on housing market for 2014 Fed needs to go back to the drawing board In any case, it looks like Ully needs to go back to the drawing board, In recent apparatus, to enable it to be used on board ship, a hydrogeneous spirit is used which is fed drop by drop into the chamber in which the arc is worked.This one-two punch of enhanced regulation and the threat of consequences for bad lending has created a much safer housing market. mortgages originated in 2012-2014 have performed exceedingly well.

That, in turn, would help taxpayers, who bailed out the companies at a cost of more than $150 billion. previously, FHFA is considering HAMP incentives for principal reduction and we have been.