Tag Archives: Fannie defends ending pilot principal-reduction program

A small pilot principal reduction program Fannie Mae killed in 2010 was not performing well enough for executives to expand, the mortgage giant claims. Reps. Elijah Cummings, D-Md., and John Tierney, D-Mass., sent a letter to Federal Housing Finance Agency Acting Director Edward DeMarco on Feb. 8, raising concerns about analysis on principal reductions used to keep the GSEs from implementing such programs. They also cited an unnamed former executive at Fannie who said a pilot program was actually developed, tentatively approved, then stopped before the analysis was given to […]