BUSINESS

Fannie, Freddie May Forgive Mortgage Debt For Some Borrowers: Reuters

10/05/2010 05:12 am ET | Updated May 25, 2011

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages -- one in five -- are underwater with negative equity of some $800 billion.

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