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State AGs Call on FHFA to Roll Out New Modifications

Democratic state attorneys general circulated a letter Thursday that called on ""Fannie Mae"":http://www.fanniemae.com/portal/index.html and ""Freddie Mac"":http://www.freddiemac.com/ ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and their regulator ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô to move forward with principal reductions.


Headlined by Massachusetts Attorney General ""Martha Coakley"":http://www.marthacoakley.com/, the letter doubled down on the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) to ""preserve assets and prevent unnecessary foreclosures by implementing loan modifications that include principal write-downs.""


State attorneys general said that new reductions ""should consider all of a borrower's debts, not just the monthly mortgage debt, be uniform, transparent, and publicly disclosed.""

The letter added that current statistics and analysis are ""completely model driven and FHFA's analysis cautions that the model used may not be appropriate. We encourage the FHFA to use actual results in its analyses where real data are available, including data from HAMP, and the anticipated data from the ├â┬ó├óÔÇÜ┬¼├ï┼ôMultistate Servicing Settlement.'""

FHFA Acting Director ""Edward DeMarco"":http://www.fhfa.gov/Default.aspx?Page=67 continues to resist calls by lawmakers and policymakers to implement new loan modifications for homeowners, stressing the agency's ""preserve and conserve"" mandate.

Coakley and others were joined this week by International Monetary Fund Director Christine Lagarde, who reportedly leaned on regulators to reduce the mortgage debt owned by U.S. homeowners.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

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