The Federal government supported housing mortgage finance kings Fannie Mae and Freddie Mac and the all other players in the financial sector especially in the housing finance have never taken any steps to overcome the 2008 housing finance crisis. The Federal Housing finance agencies to which Fannie and Freddie are attached have plans to reduce the principal credit balance the families owe to these corporate. 
 
  Bringing down the mortgage value will benefit several thousand families which are sinking and finding it difficult to lead the regular life. The policy should be in a big way and a small one are to  a large sector of people and not a few, the FHFA should find ways and means to reach this program to all the people affected , this will help them to re-stabilise the economy. 
 
  The government's own analysis that large-scale principal reduction works 3 years ago, the nonpartisan  Congressional Budget Office (CBO),  the analysis and research division of the Congress, reported that, had Fannie and Freddie embraced principal reduction once the 2008 crash, they might have foreclosed upon fewer families, saved remunerator greenbacks and boosted economic process.
 
  The Federal government is expected in a big way to push the program once the FHFA draws the entire plan and announce their statement officially. More than six million homeowners are sinking and forced to be non-performing, These measures will help the struggling families in a big way to increase their economy and be comfortable there after.
 
  The CBO study found that, with dilated access to principal reduction, foreclosures would have borne by the maximum amount as fifteen percent, permitting tens of thousands a lot of families to remain in their homes and keeping communities intact. It conjointly would have helped the lenders themselves, as fewer defaults and delinquencies quite make amends for temporary losses from principal reduction. Taxpayers, World Health Organization bailed out Fannie and Freddie once the crash may have won massively.  The federal government may have saved taxpayers up to $2.8 billion, the CBO found, whereas stimulating the economy and increasing the eligibility to a lot of householders would have even larger effects at the end. 
 
  The proceeding crisis will never come to an end,  if we tend to currently understand what would work and hasten a full recovery, we tend to additionally understand what hasn't. As a part of the defrayal package it passed in a Gregorian calendar month, Congress determined with very little notice to quietly exterminate the house reasonable Mortgage Program (HAMP) and it proved not to work as it was not extended to all. Around one thousand families received help from HAMP and nearly one in 3 that did use it complete up defaulting once more once the loan modifications they received failed to go so much enough.
 
  FHFA's proposal to limit this initiative of supporting the sinking housing finance families will be depending upon the mortgage size, among different restrictions, must be rethought. This will exactly be the bubble-driven, overinflated mortgages that square measure driving this downside and burial families in debt. If the program is limited to a few, it will no longer be a rider to overcome his crisis. 
 
  All these changes should very well keep in  mind the up and downs in the past and all the sinking housing finance families should be considered immaterial of their loan size or any other factor. Everyone should be eligible for this principal reduction and as rightly pointed out by the CBO, this will help several thousands of families who are sinking to come up and rejuvenate.