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FHFA Rejects Further White House Assistance

Mortgage News > FHFA Rejects Further White House Assistance
Date: 08/01/2012    FHFA Rejects Further White House Assistance

Edward DeMarco, head of the Federal Housing Finance Agency that oversees mortgages held by both Fannie Mae and Freddie Mac, rejected government offered bailout funds for the second time.

Despite the urging of Treasury Secretary Tim Geithner, Edward DeMarco refused government aid for fear that relief would only encourage an increase in default among homeowners that currently had inflated mortgages.  NBC reported that Mr. Geithner stated in a letter to Mr. DeMarco regarding the refusal of funds , “ I do not believe it is the best decision for the country…”; Geithner goes on to say that the government funds would “"provide much needed help to a significant number of troubled homeowners, help repair the nation's housing market and result in a net benefit to taxpayers."

Supporters of the plan, which including President Obama, his administration and 100 plus members of Congress, are confident the proposed plan would in fact help homeowners and improve the current housing market as well as save tax payers money as the number of defaults on government guaranteed mortgages would decrease.