His reasoning makes some sense, but for the people that have a Freddie or Fannie backed loan? They just have to keep paying until their home appreciates again. Until that time, DiMarco just didn't feel it was appropriate to burden tax-payers anymore.
Full articles here: L.A. Times ~ No Principal Reduction for Freddie or Fannie
and here: Housing Wire ~ Reaction to No PR
Hard news to swallow after one of my peeps just got a 217k principal reduction.....