Fannie Mae Eliminates the Declining Market Policy
As part of its Key to Recovery™ initiative, Fannie Mae announced some important policy changes to expand its mortgage guaranty business to serve the mortgage market’s urgent need for stability, liquidity and affordability.
Fannie Mae announced a new national down payment requirement for all geographic locations across the country allowing up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter ® (DU®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU.
Moreover, Fannie Mae completely eliminated its declining market policy that was established in December 2007.
The policy changes will be implemented starting June 1, 2008.