Fannie Mae-No Politics (FNMA)

[Wise Man]

In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness

Before, I posted a quote from a sale of NPL. This is an excerpt taken from the sale of RPL.
So, the same: a backdoor debt forgiveness plan "beneficial to the public" (Justice Alito)
These loans have to be sold at a deep discount to the UPB, in order to capture this covenant. FnF also give away the collateral linked to the mortgage.
For instance:https://www.fanniemae.com/newsroom/fannie-mae-news/thirtieth-sale-reperforming-loans