Fannie and Freddie Regulator Considering Obama’s Mortgage Plan
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Fannie Mae and Freddie Mac are exploring ways to help homeowners refinance into cheaper mortgages, said the companies’ regulator, who stopped short of a promise to deliver on a proposal from President Barack Obama.
Edward DeMarco, acting director of the Federal Housing Finance Agency, said he is working with the administration to reduce “frictions” in a two-year-old program for borrowers who owe more than their homes are worth. DeMarco, charged with restoring government-controlled Fannie Mae and Freddie Mac to financial health, said the FHFA must determine whether the program can be expanded without more losses for the firms.