by Bill McBride on 7/31/2012 04:01:00 PM
Tuesday, July 31, 2012
From Nick Timiraos at the WSJ: Fannie, Freddie Won't Cut Loan Balances
The federal regulator for Fannie Mae and Freddie Mac FMCC -2.10%will not permit the taxpayer-supported mortgage giants to participate in an Obama administration program that reduces mortgage balances for certain troubled homeowners, the agency said on Tuesday.Based on DeMarco's concerns about "strategic modifiers" (borrowers who default to get a principal reduction), I'm not surprised.
"The potential benefit was too small and uncertain relative to known and unknown costs and risks," said Edward DeMarco, the FHFA's acting director, in a briefing on Tuesday.
Earlier on house prices:
• Case Shiller: House Prices increased 2.2% in May
• House Price Comments, Real House Prices, Price-to-Rent Ratio
• All Current House Price Graphs
Posted by Bill McBride on 7/31/2012 04:01:00 PM