Prinicpal Reduction Calls Confront FHFA's Watt

Here's a Bloomberg article about the troubles the FHFA's problems with the continued implementation of the HARP program, the program which gives struggling borrowers better loans.

The U.S. overseer of Fannie Mae and Freddie Mac, visiting Detroit to promote aid for underwater homeowners who’ve kept up loan payments, found himself confronted by protesters complaining that he’s not doing enough to help those who have fallen behind.
Melvin L. Watt, director of the Federal Housing Finance Agency, appeared yesterday at the main branch of the Detroit Public Library and urged officials to spread the word to 27,000 eligible local borrowers that they could save hundreds of dollars a month through the Home Affordable Refinancing Program.
In a city such as Detroit, where 40 percent of homeowners owe more on mortgages than the properties are worth and nearly 10 percent are behind on payments, that’s not nearly enough, said Steve Babson, a spokesman for Save Detroit -- Save Our Homes. He faulted Watt for failing to lift a ban on debt cuts for distressed borrowers in his nine months on the job. 

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