Rep. Randy Neugebauer, who will chair the House Financial Services oversight subcommittee next year, is demanding answers about how Fannie Mae's and Freddie Mac's participation in a loan modification program would benefit taxpayers.

In a letter to the acting Federal Housing Finance Agency Director Edward DeMarco, the Texas Republican expressed "serious concerns" regarding media reports that the Obama administration is quietly pressuring Fannie and Freddie to underwrite mortgage principal to help underwater borrowers qualify for lower Federal Housing Administration mortgages.

According to Neugebauer, Fannie and Freddie's participation would increase taxpayer losses, which are already nearly $150 billion.

"Before a decision is made by Fannie and Freddie to participate in any loan modification program that involves principal writedowns, we request a full report detailing the cost associated with participating in such a program," Neugebauer wrote.

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