By Clea Benson | Bloomberg
Fannie Mae (FNMA) and Freddie Mac (FMCC) will let borrowers who have gone through foreclosure buy back their homes at market prices under a policy shift announced by the regulator for the two U.S.-owned companies.
The change outlined by the Federal Housing Finance Agency in a statement essentially gives some people who owe more than their homes are worth a way to cut mortgage debt. The step follows criticism from consumer groups and Democratic lawmakers who have called for broader principal reduction for homeowners.
