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Los Angeles Times | Real Estate: Regulator nixes push to cut mortgage debt of troubled homeowners

By Jim Puzzanghera. The move by the Federal Housing Finance Agency director is a setback for the White House, which wants to reduce foreclosures to help the economic recovery.

August 01, 2012

Edward DeMarco, acting director of the FHFA, said Tuesday that allowing up to 2.6 million borrowers who owe more than their houses are worth to have their mortgage principal reduced would end up costing taxpayers money and could encourage additional defaults..

Richard Green, director of the USC Lusk Center for Real Estate, said that DeMarco's decision meant that, "for the places that really are in the most trouble, recovery's going to take a lot longer..."

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Link: Los Angeles Times | Real Estate