Industry NewsMortgage

New Fannie, Freddie short-sale incentives akin to principal reductions

Commentary: Program gives underwater homeowners chance at fresh start without 'moral hazard'
Published on Aug 28, 2012

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by CareyBot

Could the new Fannie-Freddie program on short sales provide what are essentially mass principal reductions to homeowners who are underwater but current on their mortgage payments, and would like to sell and get a new start?

Didn't Edward J. DeMarco, acting director of the Federal Housing Finance Agency, which oversees both agencies, rule out wide-ranging principal reductions on Fannie-Freddie loans just recently, despite intense pressure from congressional Democrats?

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