The Home Affordable Modification Program (HAMP) was established to assist the nation’s underwater borrowers get out from under their massive mortgage debt. In a Congressional Budget Office report, both Freddie Mac and Fannie Mae have been found to be responsible for nearly 13 percent of underwater borrowers. The report, “Modifying Mortgages Involving Fannie Mae and Freddie Mac: Options for Principal Forgiveness,” finds that, in order for the government-sponsored enterprises (GSEs) to use principal forgiveness for borrowers in an effort to provide assistance for those to benefit from HAMP: + Result in small savings to the government, + Slightly reduce mortgage...