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The 3% Mortgage Down Payment Is Back

Fannie Mae, Freddie Mac hope to spur homebuying among first-time purchasers

(Newser) - Apparently Fannie Mae and Freddie Mac feel enough time has passed since the subprime mortgage crisis : The government-supported mortgage guarantors say they'll back mortgages with as little as a 3% down payment, CNN Money reports. Both agencies hope to encourage first-time homebuyers who may be having a hard time... More »

Feds Sue Wells Fargo Over Mortgages

Bank accused of knowingly making reckless loans

(Newser) - The US government has sued Wells Fargo in a New York court, accusing America's largest mortgage lender of misrepresenting the quality of thousands of loans in order to be eligible for federal loan insurance. The lawsuit, filed today in federal court in Manhattan, seeks to recover "hundreds of... More »

Crush of Foreclosures About to Swamp FHA

Taxpayers may foot the bill for defaulting homeowners

(Newser) - The Federal Housing Administration is staring down the barrel of a rash of foreclosures that could force it to dip into taxpayer money for the first time. The number of FHA borrowers who have missed at least three payments jumped by a third last year, to 9.1%, which means... More »

FHA Helps High-End Buyers

Raised guarantee limit may be tough to roll back

(Newser) - When the government last year doubled the amount the FHA will guarantee on a home loan, to more than $700,000, it moved the agency into uncharted territory: backing loans for the middle-class and the wealthy, too. It also moved the FHA, designed to help low-income buyers who can't raise... More »

New Reverse Mortgage Rules Help Homeowners

(Newser) - Reverse mortgages—which allow older homeowners to borrow against their equity without paying it back, as long as they live in the home—have risen in popularity since the federal government raised the limit on borrowing, the Seattle Times reports. The old ceiling for owners 62 and up was about... More »

Depression-Era FHA Tries to Save Mortgages

Long-sidelined agency now a central player in the credit crisis

(Newser) - It’s been a while since the Federal Housing Administration was relevant. But now policymakers are counting on the Depression-era agency, which mostly insures mortgages, to once again solve a housing crisis. FHA-insured loans are swiftly becoming substantially cheaper than their Fannie Mae or Freddie Mac backed counterparts. “The... More »

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