9. Americans Underwater: Principal Reduction as Policy
Taxpayer Bailout of Reckless Borrowers?
“It is absolutely egregious [to] ask people in Tennessee
who played by the rules to bail out reckless borrowers in
other parts of the country.”
- U.S. Senator Bob Corker (R-TN)
10. NCRC 2012 Policy Agenda:
Fact or Fiction?
Is Principal Reduction A
Taxpayer Bailout of
Reckless Borrowers?
11. Americans Underwater: Principal Reduction as Policy
A Bailout By Another Name?
“What the proponents of principal reductions at Fannie
and Freddie don’t talk about is what a transfer of wealth
from taxpayers (again) to large banks such a program
would represent.”
- NY Times Journalist Gretchen Morgenson, March 25, 2012
12. NCRC 2012 Policy Agenda:
Fact or Fiction?
Is Principal Reduction
Another Bank Bailout?
13. Americans Underwater: Principal Reduction as Policy
Forgiving Mortgage Principal
Invites Greater Risks?
“Helping people who are behind on their mortgages would
ease the foreclosure crisis….Even so, it is a misguided
idea….Edward DeMarco, acting director of the Federal
Housing Finance Agency… points out that it would reward
bad behavior. DeMarco foresees a strong chance that some
people who are current on their payments would stop paying
to qualify for the government’s generosity.”
- USA Today Editorial Board, April 15, 2012
14. NCRC 2012 Policy Agenda:
Fact or Fiction?
Is Moral Hazard a Valid
Defense to Fannie and
Freddie Offering Principal
Reduction?
