Fannie Mae (FNMA)

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FHFA to loosen mortgage rules
04:46 AM ET · FNMA

The nation’s chief housing regulator, Mel Watt, announced a new program Monday which will allow more home-buyers to get loans at lower rates and with much smaller down payments.
The program will also attempt to reassure banks that have had to pay tens of billions of dollars to settle legal cases arising from the housing boom and bust and buy back bad loans sold to Fannie (OTCQB:FNMA) and Freddie (OTCQB:FMCC).
"We know this issue has contributed to lenders’ imposing credit overlays that drive up the cost of lending,” announced Watt.