The Federal Housing Finance Agency continues to analyze the issue of principal reductions for Fannie Mae and Freddie Mac loans, but Director Mel Watt made it clear recently that unless it’s a “win-win” for both the borrower and the GSEs, the issue is a non-starter with him. Moreover, in a press briefing, he made it clear that at some point the FHFA may take the issue off the table entirely. “We’re doing a lot of work on this,” Watt said, suggesting that if a program ever sees the light of day, principal reductions would be done “in a responsible way.” The FHFA has come under political pressure from left-leaning members of the Democratic Party, including Sen. Elizabeth Warren of Massachusetts ...