FANNIE AND FREDDIE WILL NOT LET HOMEOWNERS WRITE DOWN PRINCIPAL

This news is just breaking now via Bloomberg and CNBC.

What does this mean?

Basically, The Treasury has been pressuring the GSEs to allow for some kind of homeowner principle writedown scheme.

Their chief regulator Ed Demarco has always been against this idea (quite controversially) over a fear of more strategic defaults if allowed.

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