Congressman Ted Deutch (D-FL) has joined more than 50 Members of Congress on a letter to Edward DeMarco, Acting Director of the Federal Housing Financing Agency (FHFA), calling for Fannie and Freddie to take a leadership role in stemming the current foreclosure crisis. In part, the lawmakers write that FHFA has failed to use its influence to effect crucial changes that would slow the continuing decline of the housing market and maximize return to the taxpayer.

"Through no fault of their own, thousands of Florida families now owe more to their banks than their homes are actually worth," said Congressman Deutch. "It is critical that the federal government step up efforts encouraging lenders to reduce principals and provide relief to millions of struggling homeowners throughout the country." 

In the letter, Members of Congress state that the conduct of FHFA in servicing mortgages guaranteed by Fannie and Freddie is greatly exacerbating taxpayer losses. They urge the agency to aggressively pursue sustainable modification of mortgages, a course that could help millions of struggling homeowners while maximizing value of the conservator's assets. The lawmakers also point out that current FHFA policies could preclude taxpayers from benefitting from any settlement proposed by the 50 Attorneys General. View a copy of the letter here.