A new Treasury announcement sweetens the deal for Fannie Mae and Freddie Mac to allow principal forgiveness in loan modifications, but it’s not clear whether the government-sponsored enterprises, and their regulator, will abandon their opposition to writedowns. New changes in the Home Affordable Modification Program raise the maximum incentives for principal reduction from the current range – 6 percent to 18 percent of the amount forgiven – to a range of 21 percent to 63 percent. The Treasury Department said it would, for the first time, pay these incentives to the GSEs if they agree to write down the...