First came JPMorgan’s Dimon: No mortgage writedowns, and now from WSJ’s Nick Timiraos
Fannie Mae and Freddie Mac aren’t going to be writing down loan balances any time soon unless someone else is willing to pay for it, the head of the firms’ federal regulator said on Thursday.
The Obama administration pressured the firms last fall to use a program that allows homeowners who owe more than their homes are worth to refinance into smaller government-backed loans. Under the program, Fannie and Freddie would have had to take a loss to get rid of the loan.
