At the risk of sounding cliche within this short composition of economics – doesn’t quality of life matter in economic equations? Apparently not if you are the head of the FHFA Edward DeMarco. Fannie Mae and Freddie Mac could save $1.7 billion if they forgave principal on some troubled mortgages, the companies’ regulator said DeMarco …
Allow me to paint a picture for you… Imagine you purchased a home during the housing bubble and that it cost you $300,000 to purchase that home. Then the housing market crashes, the credit markets flat line, and now your home is worth $200,000. Now your mortgage is under water or you foreclosed, and in …
If you are wondering what this story is about, then here is the answer in short – Congressman from 21 states have banded together and proposed that Government Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac, do a prinicpal reduction for the people in which they own the bad mortgages. The logic follows …
