DeMarco refuses to allow Fannie & Freddie to help distressed homeowners by writing off principal balances on their mortgages. This means 10s of millions of borrowers remain "underwater," that is, they owe the banks more than their homes are worth - making them ripe for foreclosure. His simplistic "logic": He has to clean up the books at Fannie and Freddie, so he is against spending money.
Currently 1 out of every 5 mortgages in the nation is underwater. Unless balances are cut to restore equity along with a sense of ownership, many borrowers will relinquish their properties as failed investments, sticking Fannie and Freddie with losses. NET LOSE.
Act. Replace DeMarco with someone who can work on solutions, not bean-counting. WE CAN'T WAIT!
See http://goo.gl/isc9v for source information