Administration searches for new ways to help Fannie and Freddie borrowers

TRD New York /
Aug.August 10, 2012 11:30 AM

In the wake of the Federal Housing Finance Administration’s firm stance that it will not allow principal reductions for Fannie Mae and Freddie Mac borrowers, the Obama administration is now looking for new ways to encourage the use of unspent federal housing funds to ease borrowers’ financial pains, Bloomberg News reported.

Some states are using money from the Hardest Hit Fund, a $7.6 billion national aid program which has so far only spent $351 million of its funds, Bloomberg News said, to give debt relief to Fannie and Freddie borrowers. The difference with the money provided by Hardest Hit is that it is provided at no cost to the government sponsored entities, according to Bloomberg.

The FHFA, which had barred principal reductions at the behest of controversial acting head Edward DeMarco, has approved the plan to use Hardest Hit funds.

“Treasury has money that is meant to help homeowners, and the money has not gotten out the door,” Julia Gordon, director of housing finance and policy at the Center for American Progress, said in a recent report cited by Bloomberg. “DeMarco has not seen fit to agree to do it one way, but that money should be spent to help homeowners, and if it means offering the money in a different amount or a different format, that should be done.” [Bloomberg News]


Related Articles

arrow_forward_ios
National Cheat Sheet: Trump names new FHFA head, Cohen gets 3 years in prison, Sears shops stores …  & more

National Cheat Sheet: Trump names new FHFA head, Cohen gets 3 years in prison, Sears shops stores … & more

National Cheat Sheet: Trump names new FHFA head, Cohen gets 3 years in prison, Sears shops stores … & more
Mel Watt. (Credit: Jeff Djevdet/speedpropertybuyers.co.uk, Federal Housing Financial Agency)

Freddie Mac, Fannie Mae regulator under investigation for sexual harassment

Freddie Mac, Fannie Mae regulator under investigation for sexual harassment
This battle over credit scores could shake up the mortgage market

This battle over credit scores could shake up the mortgage market

This battle over credit scores could shake up the mortgage market
Fannie and Freddie to keep $3B in reserves

Fannie and Freddie to keep $3B in reserves

Fannie and Freddie to keep $3B in reserves
FHFA head Mel Watt plans to stay on under Trump

FHFA head Mel Watt plans to stay on under Trump

FHFA head Mel Watt plans to stay on under Trump
When will Fannie, Freddie switch to new credit-scoring model?

When will Fannie, Freddie switch to new credit-scoring model?

When will Fannie, Freddie switch to new credit-scoring model?
FHFA extends post-crash mortgage refinance program

FHFA extends post-crash mortgage refinance program

FHFA extends post-crash mortgage refinance program
Former FHFA head wants to turn Fannie, Freddie into insurance companies

Former FHFA head wants to turn Fannie, Freddie into insurance companies

Former FHFA head wants to turn Fannie, Freddie into insurance companies
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...