Fannie Mae scraps higher downpayment requirements
WASHINGTON — Fannie Mae says it is doing away with higher minimum downpayment requirements for borrowers in distressed real estate markets.
The government-sponsored mortgage financier said Friday it will require minimum downpayments of between 3 percent and 5 percent for all loans that it guarantees.
That replaces a December policy that required a higher minimum if the loan was for a home in a market with declining real estate prices.
Washington-based Fannie says the move is part of its effort to help resuscitate the flagging mortgage market.
Its shares fell 81 cents, or 2.7 percent, to $29.42 in morning trading Friday.
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too bad. Poor underwriting standards are what put us into the mess...
lost in DC | May 16, 2008 at 4:25 p.m.
