President Obama disagrees with the Federal Housing Finance Agency's (FHFA) refusal to allow principal reductions on mortgages but can do little to stop it, according to Housing and Urban Development secretary Shaun Donovan.

Speaking with reporters on a conference call late in the week, Donovan acknowledged that many on the left have been urging Obama to fire acting FHFA director Ed DeMarco since he announced Tuesday that Fannie Mae and Freddie Mac would not permit principal reductions as part of a government refinancing program. That is impossible, Donovan said.

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