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Fannie reconsiders low downpayment mortgages

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According to the Wall Street Journal, Fannie Mae is in talks to reduce portfolio risk. This gut-check prompted the GSE to consider scaling back on its purchases of minimum downpayment loans. The Wall Street Journal further notes that:

In recent months, a series of changes in the mortgage market have led to an uptick in low-down-payment loans available for sale to Fannie. That prompted a review of the company’s lending policies, and officials are said to be working on a plan to limit the company’s purchases of these loans. 

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