Mr. Melvin Watt runs FHFA, the Federal Housing Finance Agency charged with regulating Fannie Mae and Freddie Mac. Yesterday Mr. Watt said:

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blockquote>To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent.  Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages …