As a long-time fan of professional wrestling I've come to see how much of mortgage servicing resembles what goes on in the ring. Like wrestling the servicing business is full of "works," "gimmicks," "heels and baby faces," so let me explain.
Edward J. DeMarco, the head of the Federal Housing Finance Agency (FHFA), has announced that Fannie Mae and Freddie Mac will not offer principal reductions as an option to prevent foreclosures on the loans they guarantee.
This Administration's failures -- in domestic policy at least -- are more the product of doing too little too late, than of doing too much too soon. Nowhere is that failure clearer than in the Administration's inept handling of the home foreclosure crisis.
Through recent revisions, the government hopes that its program will provide relief to more homeowners and make a bigger impact on the housing market by enabling more homeowners to prevent foreclosure.