Decision by FHFA to Forbid Principal Reductions Leaves Hundreds of Thousands of Families Facing Foreclosure and Could Cost Up to $1 Billion in Potential Savings

Washington, DC – August 1, 2012 – (RealEstateRama) — Congressman John Tierney today released the following statement in response to the decision by Federal Housing Finance Agency Acting Director Ed DeMarco to forbid Fannie Mae and Freddie Mac from reducing principal on mortgages even though utilizing principal reductions could save Fannie Mae and Freddie Mac as much as $3.6 billion, save U.S. taxpayers up to $1 billion on a net basis, and help up to 497,000 homeowners. The Department of the Treasury also issued a letter today calling on FHFA Acting Director Ed DeMarco to reconsider his decision.