Fannie, Freddie might save by reducing mortgage loans, FHFA chief says

The head regulator for Fannie Mae and Freddie Mac said Tuesday that a preliminary analysis shows that it might make financial sense for the government-backed mortgage giants to reduce the loan balances of struggling homeowners. But he said more study is warranted before making such a move. Edward J. DeMarco, the acting director of the independent Federal Housing Finance Agency, unveiled new data that showed Fannie and Freddie could save an estimated $1.7 billion by taking advantage of enhanced incentives from the Treasury Department to write down the principal for some homeowners. Loading... Comments Weigh In...