Fannie, Freddie to Allow Debt Cuts for Some Borrowers

Too bad the assholes couldn’t come to their senses in 2008 and saved 14 million American families from foreclosure, distress and death.

Justice League

Great job Senator Warren for putting the pressure on FHFA head Mel Watt!

Fannie Mae (FNMA) and Freddie Mac will let borrowers who have gone through foreclosure buy back their homes at market prices under a policy shift announced by the regulator for the two U.S.-owned companies.

The change outlined by the Federal Housing Finance Agency in a statement today essentially gives some people who owe more than their homes are worth a way to cut mortgage debt. The step follows criticism consumer groups and some Democratic lawmakers who have called for broader principal reduction for homeowners.

“This is a targeted, but important policy change that should help reduce property vacancies and stabilize home values and neighborhoods,” FHFA Director Melvin L. Watt said in the agency’s statement.

Read on.

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