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U.S. regulator targeting lower down payments on mortgages
The regulator of Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) said on Monday it was developing rules to let Americans buy homes with down payments as low as 3 percent, part of a push to boost access to credit. Mel Watt, director of the Federal Housing Finance Agency, pledged the new guidelines for the two taxpayer-owned firms would be "sensible" without putting the safety of financial markets at risk. "(They) will be able to responsibly serve a targeted segment of creditworthy borrowers with lower down payment mortgages," he said in a speech. The two firms don't lend money directly, but rather buy mortgages from ... (full story)