Freddie Mac and its sister company, Fannie Mae, have been holding the line against intensifying demands that they forgive loan balances to stem the foreclosure crisis. They portray their resistance as a simple act of fiscal responsibility, one aimed at doing right by American taxpayers, who are on the hook for their losses. But an exploration of Fannie and Freddie's handling of underwater homeowners in this city in western Massachusetts -- where unemployment remains stuck above 12 percent and foreclosures have doubled over the past year -- suggests that the two companies are guided by considerations that extend beyond mere dollars and cents: They sometimes require that borrowers relinquish homes even when doing so does not improve the bottom line.

Comments: Be the first to add a comment

add a comment | go to forum thread