The Federal Housing Finance Agency will announce whether it has found a win-win principal reduction strategy in 30 days, Director Melvin Watt said Tuesday.
Watt made the comment during a Women in Housing and Finance Pubic Policy luncheon in Washington, calling the agency's evaluation the biggest challenge he has taken on as director. He said within 30 days, the agency will either make a decision about the principal reduction strategy or decide to take principal reduction off the table.
The director said the decision involves considering an extremely complicated set of factors, including balancing the decreasing number of borrowers who are both underwater and seriously delinquent with the cost, and significant operational complexity for the government-sponsored enterprises and servicers that would implement a principal reduction program.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
