A win by Republican presidential contender Mitt Romney should benefit the MBS market more than an Obama reelection because it would reduce the chances of revisiting principal forgiveness for underwater borrowers, according to analysts. Knowing little about Romney’s position about housing finance other than his intention to lower taxpayer exposure to Fannie Mae and Freddie Mac, trim the government’s real estate-owned inventory and come up with more foreclosure alternatives, Deutsche Bank analysts presume a Romney administration would oppose principal forgiveness. In the event of a second term, President Obama would likely use...