FHFA May Allow Principal Reduction on Fannie, Freddie Loans Under ‘Unique’ Circumstances
July 31, 2014
Despite certain “unique” circumstances under which principal might be reduced on a Fannie Mae or Freddie Mac loan, the government-sponsored enterprises’ blanket prohibition on principal reduction remains in place, according to the GSEs’ regulator. The Federal Housing Finance Agency said it remains true to its long-standing policy despite a recent change in management and in the face of continued calls by progressive groups for the FHFA to embrace the use of principal reduction on GSE-backed loans in foreclosure mitigation. “As outlined in FHFA’s 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac, FHFA is...
Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.
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