Washington, DC – Today, in reaction to the announcement by the Federal Housing Finance Agency (FHFA) that Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers, NCRC President and CEO John Taylor made the following statement:
“We applaud FHFA and Director Watt for taking this important step in the right direction. The new principal reduction modification program will help certain underwater borrowers avoid foreclosure and stay in their homes. That’s a very positive thing. That said, with the scope announced today, this program will have limited impact.”
“This represents the first bite at the apple. Hopefully this program will serve as a model for what can be done with the larger portfolio of delinquent loans that could be modified at Fannie Mae and Freddie Mac.”
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.