Tag Archives: 50 phone calls uncover flaws in FHFA principal reduction study

Federal Housing Finance Agency analysis used to prevent principal reduction on Fannie Mae and Freddie Mac loans was seriously flawed, according to one leading analyst. “We have reviewed the study and have a number of very substantial objections,” said Amherst Securities Senior Managing Director Laurie Goodman before a Senate subcommittee Thursday, who gathered additional data via telephone. The FHFA used the report to determine a wide-scale principal reduction program would cost more than forbearance, while increasing the risk of strategic default among borrowers seeking relief. This information was not provided […]