US House Democrats Ask for Mtg Prin Reduction in Budget Deal

Author: Market News International | Category: News

By Ian McKendry

WASHINGTON (MNI) – Democratic members of Congress Tuesday sent a letter to
President Barack Obama, House Speaker John Boehner and other Congressional
leaders central to the budget talks requesting that mortgage principal reduction
be included in “any deal to resolve the fiscal cliff.”

“Given the clear benefits of providing assistance to underwater borrowers,
as well as the significant savings for the American taxpayers, we believe that
provisions expanding such assistance should be part of any deal to resolve the
fiscal cliff,” the letter said.

“At a minimum, such legislation should require that Fannie Mae and Freddie
Mac offer principal reduction loan modifications to borrowers who are net
present value positive.”

The letter is the latest effort by Rep. Elijah Cummings to get principal
reduction modifications for borrowers with mortgages guaranteed by Fannie Mae
and Freddie Mac despite resistance from the Federal Housing Finance Agency.

Retiring Rep. Barney Frank, ranking member of the House Financial Services
Committee, was among the 18 Democrats who signed the letter.

–MNI Washington Bureau; tel: +1 202-371-2121; email: imckendry@mni-news.com

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