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Tuesday, April 10, 2012

Freddie, Fannie Conservator DeMarco Criticizes Principal Reduction

The head of the federal conservator overseeing Freddie Mac and Fannie Mae, Edward DeMarco, said in comments Tuesday that the problem of a program for mortgage principal reduction would be to encourage defaults and other efforts to claim hardship by the large number of mortgage borrowers who have faithfully kept up their mortgage payments despite being "underwater."

A CNBC report by its housing reporter, Diana Olick, details the remarks.

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