Fannie Mae will no longer require borrowers to put up an extra five percent down payment when purchasing homes in areas deemed "declining markets". NAR met several times last spring with Fannie Mae officials and sent letters reflecting members unease with the policy.
Starting June 1st, 2008 Fannie Mae started to accept up to 97% loan-to-value ratios for conventional, conforming mortgages processed through it's desktop underwriter automated system, and 95% loan-to-value ratios for loans underwritten outside of desktop underwriter, in all locations in the United States.
Freddie Mac has also stated they will scrap their policy.
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