Financial Services Committee Chairman Spencer Bachus on Tuesday made the following comment about a ruling from the Federal Housing Finance Administration (FHFA) against forgiving mortgage principal on Fannie Mae and Freddie Mac mortgages:
"The Administration put incredible political pressure on Director DeMarco, and he deserves praise for standing up for the best interests of the American people. The Administration's foreclosure mitigation plans have not and do not work. Everyone knows a job is the best foreclosure mitigation plan. Job losses are the root cause of most foreclosures. Instead of more failed government programs, the President should work with us on bipartisan solutions that help create jobs and heal the housing market," said Chairman Bachus.
In December 2010, Chairman Bachus and other members of the Financial Services Committee requested that the FHFA conduct a full cost-benefit report before allowing Fannie Mae and Freddie Mac to participate in a loan forgiveness program.