Fannie Mae scraps higher downpayment requirements

The San Jose Mercury reports:

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 today 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.

Fannie Mae sure promotes irresponsible leverage.That's why you have to have Congressmen on the pad.