Freddie and Fannie Reject Debt Relief.

[elleng]

'“It is extremely difficult for the principal reduction program to be successful” when Fannie and Freddie opt out, said Shaun Rieve, a spokesman for the Arizona Department of Housing.

The companies’ policy against debt forgiveness, or principal reduction, has blocked widespread use of what many have come to believe is an indispensable tool for fixing the housing problem. The state attorneys general have been insisting that debt forgiveness be a part of the multibillion-dollar settlement they are negotiating with big banks over faulty mortgage practices.

Smaller investors and companies that service home loans have stepped up debt forgiveness as well.

Not so Edward J. DeMarco, who as acting director of the Federal Housing Finance Agency oversees Fannie and Freddie. Even though he recently signaled that he might make it easier for homeowners to refinance into more favorable loans, he has held his ground on debt relief. Fannie and Freddie say reducing the principal is bad for business, and as a result bad for taxpayers.'

http://www.nytimes.com/2011/10/06/business/opposition-from-freddie-and-fannie-stalls-debt-reduction.html?_r=1&hpw

[ixion]

1. The people that need debt reduction ARE TAXPAYERS

Mr. DeMarco. And you, sir, need to be out of a job.

[dixiegrrrrl]

2. Well said.

[Igel]

3. Advocate vs fiduciary.

It's not possible to be both. They often adopt opposite viewpoints for obvious reasons, with the advocates being more vehement because the issues are more personal.

DeMarco is a fiduciary. You're an advocate.

There's more than enough room for both. But one should never lose sight of which category one is in.