For the first time since the housing bubble, Fannie Mae and Freddie Mac (the Enterprises) may soon begin reducing mortgage balances for homeowners. According to an article from the Wall Street Journal (WSJ), the Federal Housing Finance Agency (FHFA) has approved a plan for the Enterprises to reduce the mortgage balances of strained borrowers.

This development comes after years of affirmation by GSE heads that debt reduction was out of the question. Confirming that the plan will be released within the next 30 days, FHFA director Melvin L. Watt also said that any mortgage reduction decisions would have to benefit both bereft borrowers and the Enterprises.
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