The Federal Housing Finance Agency will announce whether it has found a win-win principal reduction strategy in 30 days, Director Melvin Watt said Tuesday.
Watt made the comment during a Women in Housing and Finance Pubic Policy luncheon in Washington, calling the agency's evaluation the biggest challenge he has taken on as director. He said within 30 days, the agency will either make a decision about the principal reduction strategy or decide to take principal reduction off the table.
The director said the decision involves considering an extremely complicated set of factors, including balancing the decreasing number of borrowers who are both underwater and seriously delinquent with the cost, and significant operational complexity for the government-sponsored enterprises and servicers that would implement a principal reduction program.
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