In a weekend interview with C-SPAN, Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco said certain proposals for the FHFA to provide further borrower assistance exceed what the agency has the actual authority and funding to do.
The government-sponsored enterprises' (GSEs) conservator has been ‘aggressively trying to assist the housing market,’ DeMarco said, according to a Reuters report.
Pinpointing calls for Fannie Mae and Freddie Mac to reduce principal balances, DeMarco said that principal forgiveness, on its own, "doesn't accomplish our conservator mandate relative to the loan modification tools and techniques that we have in place right now."
DeMarco also reportedly described the FHFA's assessment of real estate owned disposition strategies – including plans for the GSEs to sell foreclosed homes to investors that would then convert the properties into rental units – as "the next priority."
To read the complete Reuters coverage, click here.