Boost for Loan Write-Downs

Edward DeMarco, the regulator overseeing Fannie Mae and Freddie Mac, responds to the U.S. Treasury's recent push to have the firms forgive debts for some troubled homeowners who owe more than their homes are worth. A preliminary analysis shows that those principal write--downs could reduce overall costs for the companies now that the Treasury has offered to foot part of the bill. But in a speech, he warns that the savings could be quickly wiped out if more borrowers who are current on their mortgages choose to stop paying in order to seek similar terms. The agency will issue its final decision later this month. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook:   / videos   On Twitter:   / wsj   On Snapchat: https://on.wsj.com/2ratjSM