Vallejo Times-Herald - Reps. Miller, Thompson fighting for principal writedowns for struggling homeowners in Napa, Solano counties

Two local congressmen have joined an effort to urge a federal regulator to stop blocking mortgage principal reductions for struggling homeowners.

With the national foreclosure crisis continuing, "a unilateral decision by the Federal Housing Finance Agency to block all forms of principal write-down for loans backed by Fannie Mae and Freddie Mac," is hindering the housing and general economic recovery, the letter signed by 110 congressmen said.

The letter calls for an end to a policy blocking modifications at Fannie Mae and Freddie Mac that could save taxpayers billions.

Reps. George Miller, D-Martinez and Mike Thompson, D-St. Helena, joined in writing acting Federal Housing Finance Agency director Ed DeMarco on Monday, urging him to change the policy and allow Fannie Mae and Freddie Mac to forgive mortgage principal in cases where it benefits homeowners and taxpayers.