WASHINGTON (Thomson Financial) - Federal Reserve Governor Randall Kroszner said today that the kind of loan value writedown plans to avert foreclosures that Democrats are proposing in Congress could have real advantages for both lenders and homeowners, but he also warned the House Financial Services Committee of serious practical problems in implementing such plans. The committee’s chairman, Democrat Barney Frank of Massachusetts, is proposing mass writedowns of loan values to give borrowers some equity so they can refinance into loans guaranteed by the Federal Housing Administration. At the same time, Kroszner cautioned that ‘although principal writedowns may be especially germane today given the prevalence of negative equity positions, they are not necessary or appropriate for all borrowers who have negative home equity or who become delinquent on a mortgage’. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. The content on this site, including news, quotes, data and other information, is provided by Thomson Financial News and its third party content providers for your personal information only, and neither Thomson Financial News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. read more