U.S. should offer mortgage relief for homeowners: New York Attorney General

Reuters News
Posted: Apr 08, 2016 2:53 PM

WASHINGTON (Reuters) - New York's attorney general urged the Federal Housing Finance Agency (FHFA) on Friday to quickly adopt a plan to reduce principal mortgages for U.S. homeowners at risk of foreclosure.

In a letter sent to FHFA Director Mel Watt, New York Attorney General Eric Schneiderman said nearly 60,000 homeowners in New York were delinquent on mortgages backed by government-controlled Fannie Mae and Freddie Mac in 2013 alone, and called for a quick adoption of "principal reduction" plans.

While the FHFA has promoted other policies to help struggling homeowners, including allowing eligible Americans to buy back Fannie- or Freddie-backed foreclosed homes at current market value, it has so far not offered to reduce the principal mortgages for homeowners.

(Reporting by Clarece Polke; Editing by David Gregorio)