Administration officials are trying to get the Federal Housing Finance Agency (FHFA) to reconsider its resistance to principal reductions on loans purchased by Fannie Mae and Freddie Mac, Treasury Secretary Tim Geithner told lawmakers Wednesday.

Geithner, who appeared at a hearing with Federal Reserve chairman Ben Bernanke before the House Oversight Committee, said Treasury is working with FHFA director Edward DeMarco to determine whether principal writedowns for certain underwater borrowers could be done in a way that is palatable to the agency.

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