FHFA Principal Reduction Plan Garners Mixed Reaction from Housing Industry
Housing Wire, Apr. 14, 2016–Lane, Ben
The Federal Housing Finance Agency plan for Fannie Mae and Freddie Mac to offer principal reductions to certain borrowers gets mixed reactions. MBA President and CEO David Stevens said FHFA has a “difficult challenge in trying to help underwater homeowners in some of the markets that are still struggling as they need to balance the moral hazard risk, identify loans that do not add risk to the GSEs or the communities involved and focus on borrowers that will have the best chance to stay current.”
