BUSINESS
May 1, 2012 | By Jim Puzzanghera, Los Angeles Times
WASHINGTON - Pressure is mounting on a key federal regulator to allow Fannie Mae and Freddie Mac to reduce loan principal amounts for struggling homeowners, after disclosures that a plan to do that was scuttled even though it was aimed at saving taxpayer money and helping to heal the housing market. Fannie Mae officials in 2009 supported principal reductions in some cases and crafted a pilot program that would have cost only $1.7 million to implement but could have provided more than $410 million worth of benefits to homeowners, according to internal company documents cited by two House Democrats.
BUSINESS
April 11, 2012 | By Jim Puzzanghera, Los Angeles Times
WASHINGTON — Fannie Mae and Freddie Mac could save $1.7 billion by reducing the amount that some underwater homeowners owe on their mortgages, according to a preliminary analysis by the regulator for the seized housing finance giants. But a principal reduction program by the government-owned companies, which many economists, lawmakers and state officials have called for, would not solve the housing market's problems, the head of the regulating agency said Tuesday. In addition, it could encourage homeowners who are making their monthly payments to fall behind in order to reduce the principal on their loans, adding to the $188 billion in taxpayer money already pumped into the companies to keep them afloat, said Edward DeMarco, acting director of the Federal Housing Finance Agency.
BUSINESS
April 10, 2012 | By Jim Puzzanghera
Fannie Mae and Freddie Mac could save $1.7 billion by reducing the amount that some underwater homeowners owe on their mortgages, according to a preliminary analysis by the regulator for the seized housing finance giants. But a principal reduction program by the government-owned companies, which many economists, lawmakers and state officials have called for, would not solve the housing market's problems, the head of the regulating agency said Tuesday. In addition, it could encourage homeowners who are making their monthly payments to fall behind in order to reduce the principal on their loans, adding to the $188 billion in taxpayer money already pumped into the companies to keep them afloat, said Edward DeMarco , acting director of the Federal Housing Finance Agency.
BUSINESS
March 29, 2012 | By Jim Puzzanghera, Los Angeles Times
WASHINGTON - A little-known career bureaucrat temporarily filling a key government job has emerged as the person with the most impact on the nation's battered housing market - and is rapidly making enemies. As the regulator over Fannie Mae and Freddie Mac, which own or back 60% of the nation's mortgages, Edward J. DeMarco is considered by a growing number of people to be the single biggest obstacle to the housing market recovery for opposing the use of a major foreclosure prevention measure.
BUSINESS
March 10, 2012 | By E. Scott Reckard and Jim Puzzanghera, Los Angeles Times
Bank of America has agreed to reduce the loan balances of underwater homeowners more aggressively than other banks, saying that by next month it will start contacting 200,000 borrowers who may qualify. The pledge is part of a side deal that BofA signed when it and other large providers of mortgage customer service reached a recent $25-billion foreclosure-abuse settlement with state and federal government agencies. Writing down the balance of home loans for underwater borrowers — people who owe more than their homes are worth — is a controversial practice.
BUSINESS
March 9, 2012 | By Jim Puzzanghera
Bank of America said Friday it would reduce by about $100,000 the amount owed by as many as 200,000 underwater homeowners as part of the recently announced government foreclosure settlement with top mortgage servicers. BofA made the commitment as part of a $1-billion side deal to the $25-billion foreclosure settlement, said bank spokesman Richard Simon. The principal reductions could eliminate the entire underwater portion of some mortgages that the bank services, with the average reduction expected to be more than $100,000, he said.