WASHINGTON, DC – U.S. Senator Jack Reed (D-RI) issued the following statement in response to Federal Housing Finance Agency (FHFA) Acting Director Edward J. Demarco’s opposition to allowing Fannie Mae and Freddie Mac to use Principal Reduction Alternative incentives to prevent foreclosures and offer relief to struggling homeowners:

“This seems to be a case of what’s good for the goose is not good for the gander.  The Acting Director has okayed principal reduction for Fannie and Freddie under Hardest Hit, but won’t for other Americans.  Meanwhile banks, who know a thing or two about profit and shareholder value, are increasingly allowing principal reduction.  No wonder the FHFA Inspector General has questioned the efficiency and effectiveness of the FHFA’s oversight of the GSEs.”