NEW YORK ( CNBC) -- Despite strong pressure from the Obama administration, a federal regulator will not allow Fannie Mae and Freddie Mac to reduce mortgage principal. The Federal Housing Finance Agency's Ed DeMarco has previously opposed the program, which uses taxpayer money to pay lenders to reduce loan balances of severely troubled borrowers, but had not made the final decision until now. "After much study, I have concluded that Fannie Mae and Freddie Mac's adoption of HAMP PRA
By Phil LeBeau, CNBC Correspondent
|More from CNBC Where Are the Move-Up Home Buyers? |
For Retailers, Where's the Olympic Gold?
Hey, Boss -- Time to Ditch the Corner Office