WASHINGTON -- Congressmen Barney Frank, Michael Capuano and Stephen Lynch – all three Members of the House Financial Services Committee representing Congressional districts in the state of Massachusetts – today released the attached letter to Ed DeMarco, Director of the Federal Housing Finance Agency. The FHFA is the federal agency which is the regulator and conservator of Fannie Mae and Freddie Mac.
The letter supports the efforts of Massachusetts Attorney General Martha Coakley, who in her recent letter to Mr. DeMarco (also attached), calls on the FHFA to help enable loan modifications in order to prevent more foreclosures and to help stabilize the housing market.
Director DeMarco has suggested that as Director of the conservator of Fannie Mae and Freddie Mac, his ability to increase the availability of federal loan modification programs is restricted.
The legislators, Members of the House Financial Services Committee who helped pass the law which defines the authority of the FHFA, write to Mr. DeMarco that they “flatly disagree with the notion there is anything in that statute – or any other federal law – that requires you to withhold your cooperation from this effort to the extent that you have.” The relevant text of that statute is available below.