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.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.