Fannie Mae's 3% Mortgage Down Payments

In honor of Fannie Mae, we have this post from Reuters.Just weeks ago on May 17, 2008 , Reuters reported:

Fannie Mae, the largest U.S. home funding source, is setting a single national standard for down payments on mortgages it buys, including areas where home prices are falling, in an effort to stimulate the housing market.

On loans it purchases, the company will accept down payments as low as 3.0 percent for single-family, primary residences in all U.S. markets starting June 1. That replaces a policy set in December that mandated higher down payments in markets where home prices are dropping, Fannie Mae said on Friday.

3% down,even in housing with dropping home prices.Just remember that.Could anything be more irresponsible?