Fannie, Freddie loan write-downs rejected

The Federal Housing Finance Agency announced Tuesday, July

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The Federal Housing Finance Agency announced Tuesday, July 31, 2012, that it won't allow loan-giants Fannie Mae and Freddie Mac to cut principal on mortgages that are worth more than the property. (Credit: iStock)

A federal regulator is standing by its decision to bar Fannie Mae and Freddie Mac from reducing principal for borrowers at risk of foreclosure, resisting pressure from the Obama administration. The Federal Housing Finance Agency announced the decision Tuesday after months of considering the option. The agency's acting director, Edward DeMarco, has long opposed allowing Fannie and Freddie to offer...

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