New Bottom Line Statement on Fannie Mae and Freddie Mac’s Support for Mortgage Principal Write-Downs

Washington, DC—(ENEWSPF)—March 23, 2012.  For months, more and more community leaders, clergy, economists, members of Congress, local elected officials, and homeowners have been calling on Fannie Mae and Freddie Mac to write down principal for underwater homeowners.  Edward DeMarco, the Acting Director of the Federal Housing Finance Agency, which regulates both entities, has refused.

Today, National Public Radio and ProPublica have reported that FHFA’s own agencies, Fannie Mae and Freddie Mac, have determined that principle reduction is in the best interests of both homeowners and taxpayers.

We expect a quick response from Acting Director DeMarco.  If he continues to stand in the way of principal reduction for struggling homeowners, the White House must take decisive action to replace him with a director who will serve the public interest.

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The New Bottom Line is a growing movement fueled by a coalition of community organizations, congregations, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, and dozens of state and local organizations from around the country.

Source: www.newbottomline.com