Senator Sheldon Whitehouse backs loan write-downs to ease crisis

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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