The Federal Housing Finance Agency has postponed a decision on principal forgiveness for Fannie Mae and Freddie Mac-owned mortgage loans; but, according to a statement, the idea isn't completely off the table, either.
"FHFA continues to work on its principal forgiveness analysis and is in discussions with the Department of the Treasury. A final determination on the Treasury proposal for triple investor incentives for HAMP Principal Reduction Alternative is being deferred until we conclude these activities," a spokesperson for the agency said.
FHFA Acting Director Edward DeMarco had said April 10 in a speech at the Brookings Institute that he would consider principal forgiveness as part of the HAMP program, after the Treasury upped the ante by tripling the incentive amount it would offer, to up to 63 cents for every dollar the enterprises would write down on qualified mortgages.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
