Topic: Real Estate, Mortgage
Industries: Real Estate
Tags: Real Estate, Mortgage, FHFA, Federal Housing Finance Agency, Fannie Mae, Freddie Mac, Principal Reduction, HAMP
Date: April 30, 2012
The Federal Housing Finance Agency delayed its decision to allow principal reduction on Fannie Mae and Freddie Mac mortgages.
American Banker first reported the development Friday. A spokesperson confirmed the delay.
“FHFA continues to work on its principal forgiveness analysis and is in discussions with the Department of Treasury. A final determination on the Treasury proposal for triple investor incentives for (Home Affordable Modification Program) Principal Reduction Alternative is being deferred until we conclude these activities,” the spokesperson said.
The Treasury expanded HAMP in January in an effort to boost principal write-downs. Preliminary study results from the FHFA earlier in the month showed the higher incentives could save Fannie and Freddie up to $1.7 billion.