Why are some banks resisting the principal reduction program?

[angychambers]

The US government, since the inception of this housing market slump, has tried all means to harness it. Buying mortgage securities, lowering interest rates, setting new standards and making policies. However, the outcomes are not so satisfying.The recent policy of reducing principal on mortgage loans is causing a bit of a chaos for banks. What do you say - how can the government tackle this issue?

Original Blog Link: blog.mfgmortgagerates.com/?p=67