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Volume 14 - Number 16

August 8, 2014

Pressure Mounting on FHFA to Lift GSE Principal Reduction Ban

Federal Housing Finance Agency Director Mel Watt so far is holding the line on Fannie Maeís and Freddie Macís blanket prohibition on principal reduction, but mounting pressure from progressives in and out of Congress have industry observers predicting a policy shift soon. Since taking office as the FHFAís head in January, former Rep. Mel Watt, D-NC, has so far been a disappointment to his former Democrat colleagues and advocates who believed he would reverse the agencyís principal reduction stance set by former Acting Director Edward DeMarco.

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