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Statement

Statement of FHFA Director Melvin L. Watt on Release of Guidelines for Purchase of Low Down Payment Mortgages

FOR IMMEDIATE RELEASE
12/8/2014

​“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3 percent down.  These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.

“To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower’s creditworthiness.  In addition, the new offerings will also include homeownership counseling, which improves borrower performance.  FHFA will monitor the ongoing performance of these loans.”

Attachments:

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Contacts:

​​Media:  Corinne Russell (202) 649-3032​​ / Stefanie Johnson (202) 649-3030​  
Consumers: Consumer Communications or (202) 649-3811

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