After years of fighting big banks, we have been able to gain moderate concessions for homeowners, including that of principal reduction for some underwater mortgages. Freddie Mac and Fannie Mae, which own over half of all mortgages in the US, has refused to offer similar relief. Our Fannie/Freddie fighters continue to pressure Fannie Mae, Freddie Mac, and the FHFA (the oversight agency in charge of them) to stop all no-fault evictions from foreclosed homes, resell back to occupants at real value, or offer leases for renters in foreclosed homes in lieu of displacement.
Principal Reduction from Fannie and Freddie is LONG OVERDUE!
City Life/Vida Urbana has been pressing for principal reduction for six years. Gradually, under popular pressure, we are starting to see Wall St. banks do principal reduction. The big holdouts? Fannie Mae and Freddie Mac.
Fannie and Freddie are ‘government supported enterprises,’ yet refuse to do principal reduction, even though thier own studies show it’s cheaper than foreclosing!
A letter by 54 members of Congress condemming Fannie & Freddie’s policy against principal reduction.
A letter from Secretary of the Treasury Tim Giethner in support of principal reduction.
Fact sheet on Fannie Mae & Freddie Mac from the Right to the City coalition.