US Senator Sheldon Whitehouse is calling on the head of the federal agency that oversees mortgage giants Fannie Mae and Freddie Mac to allow debt forgiveness as a way to address the housing crisis. The Rhode Island Democrat sent the acting director of the Federal Housing Finance Agency a letter Friday endorsing principal reductions. A special master trying to mediate foreclosure disputes in Rhode Island’s federal courts called for debt forgiveness in a report last week. Whitehouse’s letter asks Edward DeMarco to allow principal reductions, saying it makes sense for struggling homeowners and the economy.
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