Prevent more foreclosures

For prevention of more homes going into foreclosure, Randall Kroszner, Fed Governor has said that lenders need to lower interest rates on mortgages & also lower the principal amount for home owners where home prices have gone down below loan value on their loan.

At the time of testifying before HFSP (Home Financial Services Panel), Governor Kroszner urged Congress to take immediate steps for reconciling & enacting FHA modernization legislation which would allow Federal Housing Administration to increase its scale & improve upon management of risks that exists for the government. He also said that GSEs can do more in this regard by increasing their capital & imphasized the need for the government to move ahead with legislation on GSE reform and creation of regulator for GSEs.