Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) almost seem to be in a race to resurrect the availability of credit to home loan borrowers by requiring much smaller down payments, as low as 3% in the case of Fannie and Freddie, and 3.5% in the case of the FHA. See Tara Siegel Bernard, "Your Money / Home Loan Programs Let Buyers Put Less Down," p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, February 7, 2015).
Many people question whether Fannie's and Freddie's mortgage race with the FHA is in the end a race to return the subprime mortgage mess.
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