Fed Chief Says Lenders Need to Write Off Mortgage Principal 

It’s time to start writing off principal amounts on mortgages. That’s the message Federal Reserve chairman Ben Bernanke has for the mortgage banking industry, as the U.S. economy faces increasing peril amid a worsening housing crisis. In remarks delivered Tuesday to the Independent Community Bankers of America Annual Convention in Orlando, Bernanke said lenders and investors need to be more willing to reduce the principal balance of many mortgages if foreclosures are ultimately to be avoided.