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

Commentary: This Will Hurt a Little Bit Jeremiah 5:30 (KJV) – Forerunner Commentary – Forerunner Commentary Jamieson, Fausset, and Brown John Wesley’s Notes. It began when the priesthood deceived itself into allowing a bit of falseness to creep into their preaching, and they convinced themselves that a little bit would not hurt at all. It would be all right.

It would cost fannie mae and Freddie Mac almost $100 billion to write down the principal on the underwater loans they control to current market values, according to a new estimate released by the federal housing finance agency.. The $100 billion tab – on three million loans – would have to be paid by taxpayers in "addition to the credit losses both Enterprises are currently experiencing.

This year, Washington housing wonks have fought over "principal reduction With four million homes lost to foreclosure since the housing crisis began, and another 11 million borrowers underwater on.

FHFA estimates principal forgiveness for all of these mortgages would require funding of almost $100 billion to pay down the loans to the value of the homes securing them.

He has argued there are less costly ways to assist distressed homeowners and that the FHFA’s must protect the $188 billion in taxpayer money pumped into Fannie and Freddie. had shown principal.

Now principal reduction. cost of HAMP subsidies paid by taxpayers, a debt-forgiveness program would save the public $1 billion, The wall street journal reported. Nonetheless, FHFA Acting Director.

Allowing principal reductions on Fannie Mae and Freddie Mac mortgages "would not make a meaningful improvement in reducing foreclosures in a cost effective way for taxpayers," Edward DeMarco, acting.

FHFA Says Principal Reductions Would Cost Taxpayers $100 Billion. By Anthony Randazzo January 23, 2012

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[Edward] DeMarco [the interim head of the Federal Housing Finance Agency (FHFA), says principal reduction could cost taxpayers $100 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.

In a January analysis sent to Congress, FHFA said it would cost Fannie Mae and Freddie Mac an additional $100 billion to write down all 3 million underwater loans to the value of the homes securing them. Far fewer loans would actually be candidates for principal forgiveness, even if FHFA changes its policy.

Fannie Mae and Freddie Mac will not lower the amount struggling homeowners owe on their mortgages, their regulator declared Tuesday after a months-long delay. The Federal Housing. principal.

Genworth Mortgage reduces rates for high-credit borrowers Lenders’ appetite for risky home loans will continue to wane in 2016, forcing borrowers to stump out bigger deposits for their property purchases. That is the view of Genworth Mortgage Insurance..