Regulator Leaves Underwater Homeowners High and Dry

After months of stalling, Edward DeMarco finally slammed the door on hundreds of thousands of beleaguered homeowners looking for relief. DeMarco, acting director of the Federal Housing Finance Agency, said today that he won't allow Fannie Mae and Freddie Mac to engage in debt relief for borrowers who owe much more than their homes are worth. In doing so, DeMarco clearly put ideology ahead of economics, hindering the housing market's recovery in the process. Forget for a moment that DeMarco has been urged to do this by his boss, President Barack Obama, as well as by Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben S. Bernanke and that many banks are already engaging in...